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2019 Outlook for the Powdered Egg Market

January 22, 2019

The past five years have been a rollercoaster ride for those engaged in the egg market. The repercussions of this wild ride have left many buyers wondering what to expect and searching for the “new normal.”  Notwithstanding the inevitable unpredictability of the egg market, these factors can guide our expectations: 

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“Honey-gate”: What you need to know about Illegally Transshipped and Adulterated Honey

September 22, 2016

The past five to ten years have been epic in the honey market. Companies have been found guilty of adulterated and illegally transshipped honey, associated people have been arrested, the market is seeing an unjustified surplus of product and Colony Collapse Disorder has cost the lives of many a poor bee. With all the buzz, Batory Foods aims to keep you well informed as new market indicators emerge.

In Batory’s May 2016 Honey Market Update, we reported that, for the first time in seven years, the honey supply is keeping up with demand. We noted that the domestic crop is only able to provide one third of what the U.S. consumes. And we identified some of the major exporting countries, which, in 2015, accounted for about 365 million pounds of imported material. This information applied to widely used conventional amber and light amber honey, with the exception of specialty honey such as organic, fair-trade, orange blossom, clover sourced and certified non-GMO honey.

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September 12, 2016

The US has a lot of milk. Milk production here has kept up a steady pace this year. Through July, milk production gained 1.4% year-over-year. California and the Southwest were in negative territory through much of the early part of the year, while the upper Midwest was showing tremendous gains. Those factors, coupled together, signaled to the market average production for 2016.

Over the last two months, however, the Southwest reversed course, posting gains. While not in positive territory, California was down only 0.8% in July. To give some perspective, a production number of -0.8% was the best for California since 2014. This trend points to stronger numbers through the remainder of 2016.

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Dairy Commodities Update

June 06, 2016

Milk Production
There is a lot of milk out there. The European Union is still producing milk. Despite falling farmgate prices and stocks moving into intervention, dairy farmers are still putting up huge numbers. EU output on a January-to-January basis grew over 5%. One publication compared that to a US growth of almost 7% and a whopping 35% or more in New Zealand. This is a lot of milk. There is talk about allowing voluntary supply controls by
countries. This would be a return, to some degree, of a form of quotas that the European Union just jettisoned.

US production grew tepidly at 1%, led again by the Midwest at 4.3%. California and the Southwest remain in the negatives. The Northeast showed strong output at 2.5%. New Zealand’s output continues to be hampered in part by poor commodity prices and poor returns at the farm level. Farmers are expected to dry off cows early rather than limp along with the feed, labor and energy expenses associated
with milking. If there isn’t a turnaround in pricing soon, they could also see an increase in culling.

We have entered into an extended period of very low pricing in the powder markets. Both nonfat and whey continue to hover at lows not seen in years or, in the case of nonfat, ever. Producers note some signs of a potential price increase...

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Dairy Commodities Update

April 18, 2016

We started 2016 the way we ended 2015, with nonfat dry milk and whey languishing at low CME and Dairy Market News reported prices, whey proteins in a slump and the butter market perplexing us all. US milk production in the opening of 2016 mirrors the end of 2015, with production good-to-strong in the Midwest and East and poor in the West and Southwest.

2015 saw the end of the European Union’s more than 30- year run with a Central Planning style dairy quota system. This frees up farmers to produce what they want without fear of penalty, allowing the market to dictate price and production. That is said slightly tongue-in-cheek. They still have a government-supported intervention program that buys milk when it falls to a set price, not unlike our old Commodity Credit Corporation that would by powder at a default price. The US eliminated that program in favor of farmer-purchased margin protection insurance.

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Avian Influenza: Its Effect on Producers & the Market - Past, Present, Future

December 08, 2015

Since mid-December, 2014, the industry has undergone what the U.S. Department of Agriculture (USDA) called the worst outbreak of Avian Influenza (AI) in U.S. history. We’ve kept you informed of breaking news at every turn. In this brief, however, we will provide a retrospective of the outbreak from its beginning to today. We’ll also explore its effect on the market and what we might expect in the future.

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2015 FDA Ruling on Partially Hydrogenated Oils (PHO’s)

October 01, 2015

This June, the U.S. Food and Drug Administration determined that partially hydrogenated oils (PHO's) are not generally recognized as safe (GRAS) in human food. The ruling effectively prohibits the use of PHO's in human food, introducing daunting reformulation issues for many applications. Products that contain PHO's must become compliant by June 18, 2018.

Consider Batory your partner in the face of this change. With broad expertise, we will recommend appropriate PHO replacements from our vast catalogue of PHO-free fat bases, including shortenings, oils, margarines, dressings and more. As important, we offer technical resources— both in house and via trusted vendors—to ensure that your R&D initiatives succeed.

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June 2015 Dairy Commodities Update

June 30, 2015

The “plenty of milk” narrative continues. Earlier in the year, forecasts showed an abundant milk supply. It also showed waning demand. Taken together, those trends conspire to tell a story of ample milk on the global market.

While New Zealand production period is over, its overall results were a sound 2.2% growth. The EU is finally operating quota free, allowing dairy farmers to produce what they want. Early in the year, while the quotas were in effect, dairy production in Europe was restricted to avoid quota overruns and the imposition of fines. Post-quota production indications, however, show building supplies. Certainly, herd numbers are building, with the majority of dairy countries adding head. US milk product expanded a healthy 1.7% in the first quarter of 2015. There was some pull back in March but output remained robust as we passed through the traditional peak production period of spring flush.

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Avian Influenza Outbreak Worsens

June 22, 2015

Since our May report on the current outbreak of Avian Influenza (AI)—the worst in U.S. history—the crisis has escalated. In our latest update, we include more information on this topic and details about how Batory is addressing it.

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Batory Foods: Protein Powerhouse

June 11, 2015

Once the dominion primarily of sports nutrition, “high protein” is an opportunity no formulator can afford to ignore—whether you’re a functional food purveyor or food and beverage marketer.

In 2015 and beyond, the formulators who stand to win understand that consumers’ appetite for protein doesn’t stop at the supplement store. Look no further than pharmacy shelves, which bow under the weight of protein shakes and bars. In the grocery store, protein claims have moved beyond traditional realms like dairy. The aisles now teem with cereals, baked goods and beverages (even pet foods and dressings) making “high protein” claims. That’s to say nothing of the glossy magazines putting protein in their headlines.

What’s driving the protein passion? Credit a surge in health and wellness awareness, as well as ever more sophisticated exercise and nutrition science. The extreme protein diet craze of the early 2000s has given way to a better-informed consumer base. Fortunately, people no longer dine on bacon and cheese all day. But they have developed what you might call a “protein IQ,” replacing carbohydrates with protein-based energy sources for the latter’s wellness edge. 

All of this dovetails with the phenomenal success of the sports nutrition market, which has outperformed all other consumer health categories globally, according to Euromonitor. Within sports nutrition, protein is by far the fastest growing market. To capture their fair share of this success, mainstream brands have taken up the protein mantle. And why wouldn’t they?

Read the entire Market Update by clicking the link below or view Batory's Protein Powerhouse ingredients.

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Avian Influenza Update - Batory Taking Proactive Measures

May 18, 2015

America is in the grips of an avian influenza (AI) epidemic—the worst in U.S. history. The outbreak has forced poultry farmers to euthanize millions of turkeys and chickens, with new cases emerging daily. Iowa, Minnesota and Wisconsin have declared states of emergency, while teams of scientists scramble to better understand precisely how this “H5” virus is spreading.

At Batory Foods, we are working tirelessly to mitigate the impact of the epidemic, which has hit suppliers across the U.S., including our own egg supplier. We’re confident that our national scale, service excellence and far-ranging portfolio offer several advantages—not least the expertise to problem solve with customers.

In our Market Update, we include more information on this topic and details about how Batory is addressing it.

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April 2015 Dairy Commodities Update

April 01, 2015

The story at the beginning of the year was the potential abundance of milk going into 2015. The story continues to be milk, milk and more milk in the global marketplace. In the main milk-producing areas of the world, specifically the EU and New Zealand, we have seen a striking turnaround in the amount of milk production. Many of us remember the recent double whammy: a production-ending early drought in New Zealand during a cold, wet spring and government-imposed milk production quotas that kept milk production numbers in the EU dramatically low. The US market became the source to the world for butter and SMP. We are looking at a slightly different picture today.

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Batory’s Efforts to Minimize Impact of Driver Shortage

March 06, 2015

As many of you know, the nation is in the midst of a truck driver shortage. Although the issue is national in scope, we believe every delivery is personal. As such, we pledge to stand by your side and work through every complication, including those based on factors beyond our control.

In this newsletter, we present an overview of the problem and Batory's diligent efforts to address it.

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