This is due to the fact that restaurants are under increased pressure from animal rights activists who insist on boycotting the chains.

The 26,000 member Food Marketing Institute and the National Council of Chain Restaurants, whose members operate 50,000 restaurants, recently formed a task force to forge animal welfare standards.

These two councils represent about $420 billion in yearly U.S. retail food sales. That is half the industry and includes the big chain restaurants.

This may spell doom for big ranchers, but it's a windfall for small operators looking for specialty markets.
Source: Landowner, April 22, 2002

Europeans don't want GMO foods, but buy them anyway
Studies have shown that 80 to 90 percent of Europeans say they do not want genetically modified foods. Yet, European consumers are purchasing similar amounts of genetically modified and conventional products—even though the ingredients are clearly listed on the labels.

Charles Noussair, associate professor of economics at Purdue University's Krannert School of Management, is not surprised by the finding. He knows it is common for public opinion and consumer behavior to differ.

"Opinion surveys capture the respondent in the role of a voter, not in the role of a consumer," he said. "The two behaviors can be quite different, as many studies have shown."

Naussair's research into the paradox found that despite the high level of opposition to genetically modified foods, most Europeans aren't concerned enough to read ingredient lists on food packaging. The results were published in the most recent issue of the academic journal Economic Letters.

The study and report was funded by a partnership of 37 organizations, corporations and governmental agencies comprised of groups as diverse as Monsanto and Greenpeace.
Source: AFBF: Executive Newswatch, April 19, 2002 (Purdue News Release)

Catfish imports up, prices are down
Throughout the 1990s, U.S. catfish production was a domestically-focused industry, with only small amounts of imports and exports. In the last two years, however, catfish imports have increased dramatically. This, combined with relatively flat per capita seafood consumption and increased inventories of catfish products, has put downward pressure on domestic catfish prices. Source: Economic Research Service/USDA; Agricultural Outlook, April 2002

U.S. is lead cotton exporter
While some 90 countries from around the globe produce cotton, the United States, China, and Pakistan provide over half the world's cotton.

The United States, while ranking second to China in production, is the leading exporter, accounting for 25-30 percent of global trade in raw cotton. Look for textile production to become even more important in China, possibly turning it into a cotton importer.
Source: AFBF Speedlines: China World Cotton Production, Tuesday, April 9, 2002

Cattle inventories continue to decline
USDA's cattle report indicated that the cattle inventory on Jan. 1, 2002 declined another 1 percent from a year earlier, and nearly 7 percent from the 1996 cyclical peak.

This report strongly suggests that inventories will continue to decline for at least the next two years. Beef production in 2002 is expected to decline 2 percent from last year and 4 to 5 percent from the 2000 record. This year fed cattle prices are likely to rise through the year and average in the mid-$70s, even as slaughter weights rise to new record levels.
Source: USDA, Livestock, Dairy, and Poultry Outlook, Feb. 2002

Ag trade surplus rose last year
The surplus in calendar year 2001 of U.S. agricultural trade rose $1.8 billion from 2000 to $14.4. billion.

Exports led the increase, reaching $53.8 billion, up $2.2 billion. At $39.4 billion, imports rose just $400 million.

High-value product (HVP) exports equaled $35.6 billion, with the largest gains in the animal feeds and oil meals, hides and skins, and poultry meats and products.

Cotton and oilseeds showed the strongest bulk commodity growth. Bulk exports reached a value of $18.2 billion, but bulk volume fell marginally to 114.1 million tons.

China was the second largest market for U.S. exports of both hides and skins and oilseeds. Russia took the most poultry.

Vegetable and preparations and red meat and products led 2001 import gains. However, they were nearly offset by a $1 billion loss in coffee imports due to very low coffee prices.

Mexico and Canada continued to be important U.S. import sources.
Source: USDA; ERS, U.S. Agricultural Trade Update, Feb. 25, 2002