This pre-IPPE edition of CHICK-NEWS is sponsored by Val-CO Industries. In addition to news and available statistics, new products to be released at the IPPE by the Company are detailed. 

VAL-CO is committed to innovation through introduction of equipment that benefits producers and integrators.  Subscribers can access www.val-co.com for additional information and specifications for the new products as outlined.  Company representatives will be present at the VAL-CO booth B10021 to review products and to discuss performance specifications.

WEEDEN SPRINKLER SYSTEM

VAL-CO, recently appointed as international distributors of the Weeden sprinkler will display the system on their Booth B10021. Weeden Sprinkler Systems was established in 1995 and has remained in the founder family after acquisition by Kevin Weeden in 2003. 

The system is design to supplement conventional pad cooling during periods of high temperature. Sprinklers are installed at approximately 24’ intervals down the length of the house located in two rows 12’ from the side walls.  The system is operated in conjunction with evaporative cooling pads that should be activated only when ambient temperature exceeds 88 Fº.  The Weeden sprinkler system permits delaying the operation of cool cells reducing humidity in the house and saving water. 

The Weeden control panel incorporates two separate time clocks to activate the sprinklers that stimulate movement of the flock and contribute to cooling of birds. Specific zones can be selected in the house to operate independently.  This permits operation of sprinklers at a higher intensity at the exhaust end of the house where temperatures may be higher than at the air inlet end when houses are operated in tunnel mode.  The controller can be pre-programed for flock age and temperature to conform to the biomass in the house and to respond to weather conditions.

Activating the sprinkler system promotes growth by stimulating birds to rise from recumbency on litter and to seek food and water. Droplets on the head and back plumage evaporate subject to adequate air movement, producing an external cooling effect.

Sprinkler intervals commence for a ten second duration at 30-minute intervals and can increase up to a 20-second cycle every seven minutes during extreme heat.  At maximum duration of 20 seconds, each sprinkler operated at line pressure above 30psi releases 10 ounces of water covering an area of 500 sq. ft.  Again, depending on the critical airflow, the system can release five gallons of water within a 25,000 sq. ft. house per 20 second cycle.  Maintaining a high rate of evaporation limits litter moisture since droplets are converted to vapor that is exhausted from the house.

Coarse droplets from the Weeden sprinkler system are approximately 1mm in diameter and approximately 10 times the size of mist particles released by high-pressure foggers.  Sprinklers are equipped with check valves to prevent dripping, and all sprinklers start and stop at the same time.

The Weeden sprinkler system has been evaluated by the University of Arkansas, Division of Agriculture Research and Extension.  Studies have shown that relative humidity in houses is lower using the Weeden system compared to houses fitted with conventional pads that tend to be overused. This results in reduced water usage and drier litter.  In a typical broiler house located in Mississippi, operation of the Weeden system resulted in a 64 percent reduction in water used to an average of approximately 9,000 gallons per cycle with a 5 percent reduction in average in-house humidity at the expense of a 3F increase in average summer temperature within the house.  Stimulating feed, and water intake contributed to enhanced growth providing the grower with 0.16 cents per pound higher settlement value over two successive summer cycles compared to controls without Weeden Sprinklers.

The Weeden sprinkler system operated in accordance with recommended parameters in conjunction with evaporative cooling pads could enhance growth and return subject to maintaining appropriate longitudinal air movement through the house.

COMFORT NEST™

With an emphasis on breeder hatchability, increasing the proportion of nest-laid eggs and achieving clean shells are important objectives contributing to hatch and hence profitability.    VAL-CO will demonstrate the Comfort Nest™ installation at the IPPE.  The double-wide nests with a 19” wide entry are more attractive to hens than conventional single-hole nests, reducing floor eggs. 

Eggs roll out gently onto a 5” wide polyethylene side-mounted belt with holes allowing ventilation and contributing to unsoiled eggshells. Nests are equipped with closers to allowing hens to exit nests but deterring re-entry. This reduces the occurrence of broody hens or low-ranked birds hiding in nests and soiling of pads by hens roosting in nests at night.

VAL-CO Comfort Nests are constructed with heavily galvanized steel including partitions. The system can be installed in houses up to 600’ in length. 

The automated Comfort Nest™ system can be supplied with a VAL-CO egg collection table constructed from steel for  optimal durability.

MACH 57™ SERIES FANS

Responding to the need for greater efficiency in ventilation, VAL-CO has introduced the MACH 57™ series designed for exterior mounting. Within the MACH 57™ range, VAL-CO offers the 50 HC models with either 1.5 or 2 HP rated at 32,000 cfm with 0.05" swp declining to 25,000 cfm at 0.20" swp.  The 60 HC models range in displacement from 31,200 cfm to 34,100 cfm at 0.05" swp.

All fans are designed for optimal air speed and displacement and are fabricated from galvanized coated steel and constructed with corrosive resistant materials.  The MACH 57™ range uses many common components in common with 54" VAL-CO fans to reduce inventory of spare parts.

The MACH 57™ fan is available with a compatible exterior mount with a cone and dampers.  The unit is constructed of polypropylene and fiberglass for a long service life.  The interior of the mount is coated black to reduce entry of light.

The MACH 57™ series fans can be supplied to operate with voltages ranging from 208 to 230v, 190 to 380v or 208 to 230/460v supply.

SRP® AUX INFRARED BROODERS 

VAL-CO will feature SRP® infrared brooders designed for optimal chick comfort to promote growth.  The AUX range offered in the U.S. comprises 20 ft. units rated at either 80,000 or 100,00 BTU/hr.  SRP® series infrared tube heaters eliminate hot spots over litter and can be ordered with SMART Optizone controllers that allow decentralized zoning, remote monitoring, allowing changes in set points and alerts.

The 20 ft. long radiant tube heaters are endorsed by agricultural engineers affiliated with the UGA Extension Poultry Science Service based on their field evaluation based on even distribution of heat promoting regular distribution of chicks.  Temperature variations at litter level are less than 10F in houses. Thermal imaging during brooding provided data supporting the litter-level temperatures located adjacent to outside feeder lines and inside drinker lines. 

The University of Georgia extension specialists recommend installing two rows of 20 ft. heaters within 6 ft. of the outer feed lines lengthwise in the brooding area.  This arrangement distributes heat evenly over the litter area closer to the sidewalls reducing litter moisture and places the tube heaters closest to incoming cold air from the sidewall inlets. This helps to counteract leakage of cold air through fissures in the sidewalls of older houses.

Further field trials are in progress to evaluate advantages from longer infrared radiant brooders with special reference to fuel consumption, evenness of the flock, feed consumption efficiency and settlement values for flocks.

FUZE® V GRILL-LESS FEEDER PANS AVAILABLE WITH ONCE ILLUMINATION

VAL-CO, will promote the combination of their FUZE feed pan LINES in association with ONCE by Signify Optient lighting. Synergy from the two systems will promote flock uniformity with optimal growth and yield.

The FUZE® V Grill-Less feed pan was designed in cooperation with leading growers.  Objectives were to reduce chick mortality and to improve feed conversion efficiency.  Features of the FUZE® V include:

• Access to feed in pans from day of placement

• An adjustable collar to regulate feed level according to flock age

• The lip of the pan is designed to prevent scratching and wastage

The Optient lighting system from ONCE by Signify is installed above the feed line to attract broilers of all ages in accordance with natural behavior.  Field trials show an improvement in feed conversion of up to four points at the time of harvest.  Energy consumption is reduced by up to 70 percent compared to conventional LED ceiling lights. Some growers use only the Optient installation after the end of the brooding period.

 The modular LED lights are easy to install using a patented twist-and-hook arrangement.

VAL-CO has been appointed as the exclusive U.S. distributor for the Optient lighting system and can supply installations separately for retrofit or as a combined package.

Valli Baby Area Rearing Aviary

It is universally accepted that rearing aviaries should be compatible with housing of the flock after transfer.  Manufacturers of alternative housing systems including Valli of Italy have conducted extensive research and development on brooding systems to ensure that flocks achieve maturity at a uniform weight and time so as to optimize peak and subsequent production.

The Valli Baby Area system will be displayed on the VAL-CO booth. The rearing aviary incorporates design features to facilitate management of replacement flocks. Chicks can be monitored after placement in a single tier.  The front grills can be adjusted continuously from closure to complete opening to allow flocks to access litter.  The external perches are adjustable in height to conform to the growth of the flock.  The Valli Baby Area rearing system offers optimal use of floor space with appropriate positioning of the chain feeder and nipple drinker lines.

Valli offers a range of options with regard to the number of tiers and the flexibility inherent in the system allows retrofitting to existing houses sold, installed and serviced by VAL-CO.

This report is constrained by the aftermath of the October Federal Shutdown with respect to USDA data. Updated export figures  have not been released as of Decenmber30th.

Broiler Chick Placements November-December 2025.

According to the December 17th 2025 USDA Broiler Hatchery Report, 1,254 million eggs were set over five weeks extending from November 15th 2025 through December 20th 2025 inclusive. This was approximately one percent higher compared to the corresponding period in 2024.

Total chick placements for the U.S. over the five-week period amounted to 965.3 million chicks. Claimed hatchability for the period averaged 79.9 percent for eggs set three weeks earlier. Each 1.0 percent change in hatchability represents approximately 1.93 million chicks placed per week and 1.83 million broilers processed, assuming five percent culls and mortality and within the current range of weekly settings.

Cumulative chick placements for the period January 7th through December 30th 2024 amounted to 9.67 billion chicks. For January 4th through December 13th 2025 chick placements attained 9.60 billion, up one percent from the corresponding value in 2024.

According to the December 19th 2025 edition of USDA Chickens and Eggs, pullet breeder chicks hatched and intended for U.S. placement during November 2025 amounted to 8.08 million, down 2.2 percent (0.19 million pullet chicks) from November 2024 and 3.7 percent (288,000 pullet chicks) more than the previous month of October 2025. Broiler breeder hen complement attained 59.82 million in November 2025, 1.6 percent (1.00 million hens) down from December 2024 and 1.7 percent (988,000 hens) higher than October 2025.

Broiler Production December 2025

As documented in the December 25th 2025 USDA Weekly Poultry Slaughter Reports for the processing week ending December 20th 2025, 175.0 million broilers were processed at 6.55 lbs. live. This was 2.9 percent more than the 170.1 million processed during the corresponding week in December 2024. Broilers processed in 2025 to date amounted to 8,553 million, 2.2 percent more than for the corresponding period in 2024.

Ready to cook (RTC) weight for the most recent week in December was 876.2 million lbs. (398,272 metric tons). This was 3.5 percent more than the 846.8 million lbs. during the corresponding week in December 2024. Dressing percentage was a nominal 76.0 percent. For 2025 to date RTC broiler production attained 42,894 million lbs. (19,497 million metric tons). This quantity was 3.5 percent more than for the corresponding period in 2024.

The USDA posted live-weight data for the past week ending December 20th and YTD 2025 including:-

Live Weight Range (lbs.)	<4.25	4.26-6.25	6.26-7.25	>7.76
Proportion past week (%)	16	30	27	27
Change from 2020 YTD (%)	-7	+1	+2	+9

November 2025 Frozen Inventory

According to the December 23rd 2025 USDA Cold Storage Report, the first to be released after the Federal shutdown, stocks of broiler products as of November 30th 2025 compared to November 30th 2024 showed differences with respect to the following categories:-

• Total Chicken category attained 814.9 million lbs. (370.4 thousand metric tons) corresponding to approximately one week of production based on recent weekly RTC output. The November 2025 inventory was up 0.7 percent compared to 809,039 million lbs. (368.8 thousand metric tons) on November 30th 2024 and up 0.4 percent from the previous month of October 2025.

• LegQuarters were down 16.0 percent to 55.6 million lbs. compared to November 30th 2024 consistent with the data on exports. Inventory was up 2.0 percent from July 31st Given the trend in inventory of leg quarters it is evident that this category continues to be shipped in varying quantities as the principal (96 percent) chicken export product to a number of nations.
• The Breasts and Breast Meat category was up 2.8 percent from November 30th 2024 to 242.1 million lbs. indicating a relatively lower domestic consumer demand for this category despite concern over inflation in the cost of alternative proteins. The November 30th 2025 stock level was 2.1 percent higher than October 31st The trend through the first eleven months of 2025 suggests stable but low retail and food service demand for the white meat category. This is despite promotion of chicken sandwiches and wraps by QSRs in the face of a higher cost for beef coupled with an increasing pattern of eat-at-home consumption.

• Total inventory of dark meat (drumsticks legs, thighs and thigh quarters but excluding leg quarters) on November 30th 2025 decreased 3.6 percent from November 30th 2024 to 65.9 million lbs. This difference suggests an increase in domestic demand for lower-priced dark meat against the prevailing price of white chicken meat. Higher prices for competitive proteins offer an opportunity to increase domestic demand for this category with innovative product development and promotion.

• Wings showed a 3.8 percent decrease from November 30th 2024, contributing to a stock of 57.1 million lbs. Inventory of wings was 5.2 percent lower compared to the end of October 2025. Movement in stock over the past 12 months has demonstrated slightly higher demand for this category despite competition from “boneless wings.” Increased consumption traditionally associated with significant sports events including the College and Super Bowls reduced the volumes of storage in January and February 2025. The progressive increase in unit price during 2024 plateaued in 2025 due to consumer fatigue and competition from competing protein snacks despite continued interest in professional and collegiate football.

• The inventory of Paws and Feet was 15.8 percent lower than on November 30th 2024 to 27.6 million lbs. Stock was 3.0 percent higher than on October 31st Prior to the April 2020 Phase-1 Trade Agreement approximately half of the shipments of paws and feet destined for Hong Kong were landed and transshipped to the Mainland, a trend that is re-emerging.
• The Other category comprising 345.0 million lbs. on November 30th 2025 was up 4.1 percent from November 30th 2024 but represented a substantial 42.3 percent of inventory. The high proportion of the Other category suggests further classification or re-allocation by USDA to the designated major categories.

November 2025 Processed Broiler Production

The delayed monthly USDA Poultry Slaughter Report was released on December 5th 2025 covering October 2025, with the NASS having skipped September due to the Federal shutdown in October. The month comprised 23 working days, the same as November 2024. The following values were documented for the month of October:-

• A total of 870.1 million broilers were processed in October 2025, up 8.4 million or 1.0 percent from August 2024;
• Total live weight in August 2025 was 5,304 million lbs., down 38.7 million lbs. or 0.7 percent from October 2024;
• Unit live weight in October 2025 was 6.72 lbs., up 0.02lb. (0.3 percent) from October 2024.
• RTC in October 2025 attained 4,426 million lbs., up 55.9 million lbs. or 1.3 percent from October 2004.
• WOG yield in October 2025 was 75.7 percent, down from 75.8 percent in October 2024.
• The proportion marketed as chilled in October 2025 comprised 92.9 percent of RTC output compared to 93.3 percent in October 2024.
• Ante-mortem condemnation as a proportion of live weight attained 0.19 percent during October 2025 down from 0.17 percent in October 2024.
• Post-mortem condemnations as a proportion of processed mass corresponded to 0.41 percent during October 2025 compared to 0.44 percent in October 2024.

Comments

Mexico has recognized the OIE principle of regionalization after intensive negotiations between SENASICA and the U.S. counterpart, USDA-APHIS assisted by USAPEEC. Provided importing nations adhere to OIE guidelines on regionalization, localized outbreaks of avian influenza or possibly Newcastle disease will affect exports only from states or counties with outbreaks in commercial flocks. The response of China, Japan and some other nations is less predictable with bans placed on a nationwide or statewide basis. The response by China to outbreaks is influenced more by self-interest than considerations of scientific fact or international trade obligations. Other importing nations have confined restrictions to counties following the WOAH principle of regionalization. The challenge facing the U.S. as the second largest exporting nation after Brazil, will be to gain acceptance for controlled vaccination against HPAI in specific industry sectors and regions with appropriate surveillance and certification to the satisfaction of importing nations.

On December 15th 2025 the USDA-Economic Research Service released updated production and consumption data with respect to broilers and turkeys, covering 2024 an updated projection for 2025 and a forecast for 2026.

The 2025 projection for broiler production is 48,086 million lbs. (21.857 million metric tons) up 2.3 percent from 2024. USDA projected per capita consumption of 103.1 lbs. (46.9 kg.) for 2025, up 2.0 percent from 2024. Exports will attain 6,646 million lbs. (3.021 million metric tons), 0.5 percent below the previous year.

The 2026 USDA forecast for broiler production will be 48,550 million lbs. (22,068 million metric tons) up 1.0 percent from 2025 with per capita consumption up 0.4 lb. to 103.5 lbs. (47.0 kg). Exports will be 1.0 percent higher compared to 2025 at 6,715 million lbs. (3.052 million metric tons), equivalent to 13.8 percent of production.

Production values for the broiler and turkey segments of the U.S. poultry meat industry are tabulated below:-

Source: Livestock, Dairy and Poultry Outlook released December 15th 2025

The December USDA report updated projection for the turkey industry for 2025 included annual production of 4,822 million lbs. (2.192 million metric tons), down 5.1 percent from 2024. Consumption in 2025 is projected to be 13.1 lbs. (6.0 kg.) per capita, down 6.4 percent from the previous year. Export volume will decrease by 15.2 percent in 2025 to 412 million lbs. (187,272 metric tons). Values for production and consumption of RTC turkey in 2025 are considered to be realistic, given year to date data, the prevailing economy, variable weekly hen and tom placements, production levels, ongoing losses from HPAI and inventories consistent with season.

The 2026 forecast for turkey production is 4,955 million lbs. (2.252 million metric tons) up 2.8 percent from 2025 with per capita consumption up 1.5 percent to 13.3 lbs. (5.4 kg). Exports will be 3.0 percent lower than in 2025 to 400 million lbs. (181,818 metric tons) equivalent to 8.1 percent of production.

Export projections do not allow for a breakdown in trade relations with existing major partners including Mexico, Canada and China nor the impact of catastrophic diseases including HPAI and vvND in either the U.S. or importing nations

Judge Algenon Marbley of the U.S. District Court for the Southern District of Ohio recently granted an injunction against Purina Animal Nutrition based on  misleading claims.  The lawsuit was initiated by Kalmbach Feeds and was filed in early June citing the Lanham Act and the Ohio Deceptive Trade Practices Act. 

Shortly after the launch of the Purina promotional program, feed regulators in Kansas, Minnesota and the Food and Drug Administration questioned the ‘health claim’ implying protection as advanced by Purina. This resulted in the company withdrawing the implicated statements. In mid-June, Purina consented to an order relating to the implied and expressed claims of protection against avian influenza and withdrew all scientifically unsubstantiated statements.

The Court ruled that Purina should refrain from issuing unsupported health claims and was ordered to post a retraction on the company website as reproduced below:-

Pursuant to an Order of the U.S. District Court for the Southern District of Ohio dated November 12, 2025, Purina hereby gives notice that it previously advertised Farm to Flock 18% Layer Hen Food as having a ‘built-in defense against avian influenza,’ ‘Defend[ing] Against Viruses, Like Bird Flu,’ and ‘helping defend against viruses like bird flu.’ At the preliminary injunction stage, the Court found that Purina engaged in false advertising because these statements were not scientifically grounded and lacked a scientific basis. Purina retracts these statements, as well as any other representation that Purina’s Farm to Flock 18% Layer Hen Food defends against, protects against, prevents, mitigates, or provides immunity to the effects of avian influenza, bird flu, or other viruses.

In an exercise in judicial theater, James Uthmeier, Attorney General of the State of Florida announced an investigation into the source of chicken in Campbell’s Company products.  The Consumer Protection Division of the Florida agency will spearhead the unnecessary effort.

The Florida action arises from revelations in a lawsuit initiated by Plaintiff. Robert Garza, who is suing Campbell for employment discrimination. In a clandestine recording entered into evidence, the discredited and since terminated Vice President Martin Bally the former Chief Information Security Officer, deprecated both Campbell’s products and consumers and claimed that the company was incorporating “bio-engineered meat” in soups.

This statement should have been dismissed as simple puffery and uninformed hyperbole.  In the first instance, bio-engineered chicken is not available in commercial quantities.  The second indication of improbability, is that the cost of any bio-engineered meat would far exceed the natural product, obviously disfavoring use.

It would appear that the Office of the Attorney General is pursuing an obvious slander to generate partisan publicity and to create the illusion of enforcing state legislation banning production and sale of non-available laboratory-produced meat. Surely there are more substantive issues to consider in the State.  In a legal environment dominated by ideology, logic is the evident loser.

Judgment has been rendered against a number of poultry companies operating in western Arkansas and eastern Oklahoma. At issue is contamination of the Illinois River watersheds due to runoff of phosphorus from poultry waste applied to agricultural land. A federal judge ruled that the defendant companies breached the Oklahoma Environmental Quality Code. Accordingly  fines ranging from $10,000 to $160,000 were imposed on six defendants involved in broiler and egg production.

The case has wound through the legal system for over two decades but recently became the subject of conflict between Gentner Drummond, Attorney General of Oklahoma and Governor Kevin Stitt. 

The judgment requires a remediation program with a Court-appointed Master to review planning and implementation with appropriate monitoring of phosphorus levels in soil and water.  Farms will be required to develop new and effective waste management plans.

The judgment and mandated remediation suggest alternative methods of disposal of broiler litter and waste from egg-production farms.  This implies the future application of available technology including composting and some form of processing to remove phosphorus.

Going forward, a limit of two tons of poultry waste per acre per year has been imposed. In addition the Court imposed a threshold phosphorus level of 120 pounds per acre for land application within the Illinois River watershed as a standard.

Based on news reports of extensive reductions in head count following the activities of DOGE Senator Amy Klobuchar (D-MN), Ranking Member of the Senate Committee on Agriculture, Food and Forestry requested details of staff reductions in March.  The report that has now been released, with a delay of nine months, covers the first half of calendar 2025. 

On January 11th 2025 the USDA had 110,384 employees but by June 14th there were 20,306 fewer.  Of this number 15,114 accepted deferred resignation with payment of salaries and benefits through September.  After review, 52 job categories regarded as critical to national security were exempted from the reduction in head count.  Divisions within USDA that experienced losses included the Agriculture Research Service (23 percent of the total); the National Agricultural Statistics Service (34 percent); the National Institute of Food and Agriculture (35 percent) and the Animal and Plant Health Inspection Service at 25 percent.

Senator Klobuchar reacted to the report released on Monday December 22nd stating, “It as particularly shocking that agencies responsible for assisting farmers in small towns have lost a third of their employees.”  She added, “Losing nearly 20 percent of all USDA staff weakens the department’s ability to respond to challenges facing our farmers, leaves our food supply chains more vulnerable to threats like New World screwworm and avian influenza.” 

Data on staff reductions was assembled by the USDA Inspector General but the report does not include reductions from mid-year onwards.  It is anticipated that attrition will continue given the ill-advised reorganization of USDA with elimination of functions considered irrelevant or undesired by the Administration, especially pertaining to climate change, equal opportunity policies and environmental conservation.  Although job cuts extended across all states, Rhode Island, Maryland, Alaska and Vermont experienced disproportionate reductions according to POLITCO.

It remains to be determined how job losses as a result of coercion, disaffection and premature retirement will impact services.  Reduction of head count in the Animal and Plant Health Inspection Service and the National Agricultural Statistic Service will have an effect on future planning and implementation of programs to prevent or control plant and animal diseases and to assemble and publish reliable statistical data.

During the first term of President Trump, then Secretary of Agriculture Dr. Sonny Perdue moved a large number of long-term employees in the Economic Research Service and the National Agricultural Statistics Service to Kansas City from Washington DC resulting in extensive resignations, weakening the ability of these critical agencies to conduct research and to issue reports.  The justification for the action was allegedly to reduce costs and move personnel closer to the constituency they served.  These objectives were an entire fabrication, with informed observers noting that the action was to eliminate experienced personnel who had served through successive administrations but were publishing factual reports that were in conflict with White House beliefs, initiatives and policies, especially in the areas of global warming. In the event the move severely depleted institutional experience and knowledge and did not save money. Mission accomplished.

In 2022 Sonate Corp. dba Vegadelphia Foods filed a trademark infringement lawsuit against Beyond Meat Inc. and the parent company of Dunkin’ Donuts.  The plaintiffs complained that the Beyond Meat slogan, Great taste, Plant-based was too similar to the registered trademark of Sonate, Where great taste is Plant-based.  Sonate claimed that the infringement interfered with potential joint ventures and impacted company growth. 

The lawsuit was transferred to the jurisdiction of Massachusetts in 2023 with the most recent trial favoring the plaintiff.  The judgement included $24 million in actual damages plus $15 million in profits. Given the perilous financial state of Beyond Meat it is questioned whether Sonate will recover damages.

For Q3 2025 the Company announced a net loss of $110.7 million, (including a charge of $77.4 million) on revenue of $70.2 million. With a negative EPS of ($1.44). For the corresponding Q3 2024bthe Company lost $26.6 million on revenue of $81.0 million with an EPS of ($0.41). Sales declined 13.3 percent and gross margin fell from 17.6 to 13.3 percent in comparing Q3 for the consecutive years.

On a 12-month trailing basis Beyond Meat has attained a negative operating margin of 47 percent and a negative profit margin of 81 percent.  Over 12 months BYND has ranged from $0.50 to $7.60 with a 50-day moving average of $1.68. Before the close on December 2nd BYND was down over 2 percent to $1.31. Marked volatility is attributed to a succession of ‘short squeezes’ with 20.7 percent of the float short in mid-November.

Believer Meats ceased activities at their Wilson County, NC. plant during mid-December.

The company has deep technological roots in Israel with Dr. Yaakov Nahmias, Professor of  Biomedical Engineering at the Hebrew University, serving as the founder and motivator.  The company attracted initial VC funding approaching $350 million by 2021.  Investors included Archer-Daniels-Midland, Tyson Foods, S2G Investments, Neto Group, the Jeff Bezos Earth Fund and others in the entertainment industry.  Believer Meats along with competitors recently received a “no questions” authorization from the Food and Drug Administration with respect to the safety of their technology.

With a budget exceeding $125 million for the Wilson production complex and a market valuation of $600 million Believer Meats generated considerable buzz in the alt-meat space despite a succession of failures among competitors including Eat Just, Upside Foods, Meati and Beyond Meat. The final blow to Believer Meats was the defection of a major backer creating a cash crunch exemplified by the $34 million lawsuit filed by Gray Construction the prime contractor for the 200,000 square foot facility.

Industry observers attribute the failure of the company to aggressive implementation of technology that was not proven for the projected scale of production.  Success with 200-liter reactors was not realized with vessels in the 10,000-liter range.  Initial production for the plant was projected at 21 million pounds with the possibility of doubling output to reduce the high fixed costs incurred. Believer Meats projected that with scale, theoretically achievable in the Wilson plant, the shelf price of their chicken product could be reduced to approximately $7 per lb. Workers at the facility noted that during the commissioning process, there were considerable problems with equipment preventing initiation of production.  

Despite the technical issues encountered by Believer and its competitors, there is considerable doubt as to the demand for lab-cultured meat. In addition, a number of beef-producing states have enacted legislation banning production or sale of laboratory-derived meat products. Other states have imposed strict labeling requirements that would have dampened consumer acceptance in the event of commercial quantities of product becoming available. 

There was no outward indications of the perilous financial state of Believer Meats leading to precipitous termination during pre-production commissioning. For weeks management issued self-adulatory comments on progress and persisted with rosy predictions of consumer demand.

The failure of Believer Meats cannot be regarded as a temporary speed bump for alt-meat production.  The loss of investment capital will serve as a warning to VC companies willing to place bets on long-shot enterprises that have projected an aurora of sustainability, environmental protection and the possibility of a radical change in production of protein.

Following the reluctance of supermarket operators to establish stores in urban areas of Atlanta, Mayor Andre Dickens established a program to locate the Azalea Fresh Market in an available 20,000-square-foot location.  The endeavor required investment of public funds totaling $8 million in cash, grants and loans.  The enterprise is projected to become profitable within three years.  Based on the initial success of the store a second location will be developed for the convenience of residents in ‘supermarket deserts’.  Azalea Fresh Market offers fruit, vegetables and dairy products in addition to essentials but lacks the frills of a modern suburban supermarket.

NY Mayor-elect Zohran Mandani proposed establishing city-supported grocery stores as part of his successful campaign although the concept was not expanded to a specific program or plan of action.

Although many cities have proposed and implemented subsidized markets under civic ownership, theft and other crimes have impacted community support and few have attained profitability or even survived.  Various models have been attempted including support by cities in the form of loans and operation free of rent and taxes.  Established supermarket chains have   developed stores in underserved inter-city areas of metropolitan areas including Chicago without success leading to closure.

To be viable, public-supported grocery stores and supermarkets require professional management but above all community support to establish a crime-free environment.

The egg industry benefits from innovative further-processed items. The comprehensive format convenience stores operated by national chains are attracting customers from QSRs. The introduction of an egg salad sandwich by 7-Eleven is a fortuitous combination.  The new product is based on the iconic Tamago Sando sandwich offered by the parent company in Japan.  The U.S. version differs from the original but will still prove popular.  The highly popular Japanese sando has “milk bread” (shokupan) without crust.  In the U.S., the sandwich will be served on t soft white bread with crust.  Egg salad is prepared using Kewpie mayonnaise.

The U.S. sandwich will be priced at about $5.50 depending on locality.  Acceptance may be limited by price since the equivalent in Japan sells for 250-yen, equivalent to $1.80 at the current exchange rate.  The U.S. sandwich is however larger at 200g compared to the Tamago Sando at 110g. This narrows the differential in price to 68 percent higher than in Japan on a per unit basis.

The Agency for Food and Environment and Occupational Health and Safety (ANSES) for France has recommended preventive immunization of “poultry professionals” with the available human seasonal influenza vaccine.  The purpose is to limit the possibility of a recombinant event should individuals infected with the current prevalent H3 strain of human influenza come into contact with either wild birds or commercial poultry infected with H5 virus.

The advisory was circulated in recognition of the high incidence rate of avian influenza among commercial farms in addition to more frequent isolation from migratory birds. The ANSES recommendation should however have encompassed all workers and managers coming into contact with live poultry including those employed on farms, in transport and processing and should not have been limited to “professionals.” It is emphasized that there have been no diagnosed cases of H5 infection among poultry workers in France.

The Agency noted the extension of H5N1 to mammalian species including foxes and an otter, suggesting the risk of an emergent zoonotic strain of H5N1 with contagion or a recombinant arising from contact between individuals infected with human influenza and wildlife or poultry infected with HPAI.  The advisory is a component of a preventive strategy  to limit the remote possibility of a recombinant event at the human-animal interface.

CHICK-NEWS has consistently advocated for routine influenza vaccination of all workers and managers in the poultry industry since the advent of the current HPAI epornitic during late 2020.  It is regrettable that the seasonal human influenza vaccine does not contain H5 antigen. Unfortunately the H3 antigen in the 2025 trivalent vaccine provides minimal protection against infection with the current circulating strain.

The policy of the Department of Health and Human Services (HSUS) spearheaded by Robert F Kennedy Jr. has been to deprecate the value of mRNA vaccines through unscientific and unsubstantiated comments. In addition the HSUS has deprived academic and commercial institutions of funding for mRNA vaccine research. This will place our Nation at a disadvantage should H5N1 emerge as a zoonotic infection.  Many institutions and commercial laboratories are close to developing broad spectrum mRNA vaccines against diverse influenza strains. The technology offers the advantage of rapid manufacture in the event of a human epidemic.  Traditional egg-propagated vaccine requires at least six months to prepare in volumes adequate to address an extensive regional or national outbreak.

As an extension to the ANSES recommendation, should U.S. health authorities consider offering H5N1 immunization of poultry industry workers including crews depopulating farms and health professionals using commercially available vaccine prepared and stockpiled in the U.S.? Finland has initiated a program to protect farmers and workers in contact with poultry and mink using available vaccine.