by: Garth Ruff, OSU Extension Henry County.

COVID-19 has had profound impacts on our food and livestock production systems here in the U.S. With regards to the beef industry the impact has been felt locally and throughout the country. Locally here in Ohio, with the JBS plant in Souderton closed, and reduced packing capacity in other regional packing plants, the local cash market for fed cattle has been greatly diminished. For the past two weeks, auction markets in the state have asked cattle feeders to hold off on bringing fed cattle to market due to packing plant closures and overall lack of packer demand.

Like most of agriculture, timing is critical for the livestock production supply chain to flow as it is designed. What is the impact of holding market ready cattle in local feedlots? Economically, cash flow concerns for small to medium size cattle feeders may arise as packing capacity remains limited. Immediate impacts for cattle feeders include increasing days on feed, selling heavier and potentially higher yield grade cattle once the market returns. Most packing plants have discount schedules of Yield Grade 4 and 5 cattle in addition to carcass weight specifications.

There have been discussions regarding slowing the rate of gain or transitioning livestock to a maintenance diet. As fed cattle sales are delayed, the cost of gain increases, more feed is required, and cattle are less efficient as they reach or pass optimal harvest condition.

In a study commissioned by the National Cattlemen’s Beef Association and led by Derrell Peel, Breedlove Professor of Agribusiness and Extension Livestock Marketing Specialist at Oklahoma State University the total losses to the US beef industry were estimated at $3.7 billion or the equivalent of $111.91 per head for each mature breeding animal. The losses for the cattle feeding segment of the industry was projected to be at $3.0 billion or $205.96 per head.

Worth noting, one bright spot with regards to fed cattle is that demand at the local level has greatly increased. Local meat processors have reported record retail beef sales, however large increases in local demand are often tempered by the lack of cooler space available in small plants that are already working at capacity. The cattle supply is available, however logistics remain a challenge.

While local stocker prices have been relatively stable, especially for calves going to grass; the NCBA study estimates that stocker/backgrounder losses averaged $159.98 per head, or $2.5 billion country wide.

Prior to COVID-19 cull cow and bull processors were operating at or near capacity, given the current status in the dairy industry, that trend is likely to continue. Beef cow-calf operators have an opportunity to add some condition to cows currently on the cull sheet if it can be done at an economic cost of gain.

The beef industry and all of agriculture is currently navigating uncharted territory with the disruption to the supply chain caused by COVID-19. If you have questions reach out as additional information is available from state-level Extension, and the Ohio Cattlemen’s Association are available to assist producers in these difficult times.

by: Steve Moeller, Department of Animal Sciences, State Swine Extension Specialist

Like many livestock sectors, the impact of COVID-19 on Ohio’s and the Nation’s swine industry have been multi-factorial and ever-changing.  In response, the National Pork Board has maintained an on-line COVID-19 information center at https://www.pork.org/ which is updated multiple times per day based on new findings.  The impact is now being felt as the number of ‘short-term’ packing plant closures seem to increase daily. Plant closures will impact the industry as a whole in a number of ways, namely: 1) U.S. production is matching packing plant capacity and both are at record levels, thus a regional lack of shackle space will likely occur, 2) Swine production is now nearly constant, centered around weekly flow and optimization of space utilization, thus pig spaces are full and need to be continually emptied to make room for incoming production, 3) Distribution channels from packing plants to consumers are not as efficient, leading to challenges in managing product movement from the packer to the consumer. Additional plant closures, particularly if they occur from Indiana eastward will place a significant burden directly on the producer; 4) The bright spot:  Export markets have helped offset some of the supply, particularly trade with traditional partners in Japan and Mexico, but with added sales to China.

Economic challenges have also followed the shut-downs due to COVID-19.  A few points to consider: 1) Bellies, the long-standing staple for adding value to pork; price January, 2019 – $1.72/lb.; price January, 2020 – $1.19/lb.; price April 10, 2020 – $0.46/lb.  Demand for bellies has dropped due to restaurant and food service closures, compounded by a supply of bacon in packages too large and in locations not amendable to retail trade at the grocer.  Take home: EAT MORE BACON!!!!! (for more information on pork prices see: https://www.pork.org/blog/category/weekly-pork-price-summary/ ; 2) Carcass prices received have dropped considerably from early January, 2020 (~$0.563/lb. carcass) to April 14, 2020 (~$0.36/lb. carcass) reducing revenue per head by over $40.00 per pig produced (https://www.ams.usda.gov/); 3) Weaned pig (~21 days of age) cash prices reported between $2.00 and $16.00 per head, on a breakeven production cost near $35 to $40.00 per weaned pig; 4) Ethanol production facilities have been shuttered, reducing access to distillers dried grains with solubles (DDGS) which offered lower cost energy and protein options for producers.  Shift back to traditional corn-soybean meal diets as being most cost effective; 5) Concern regarding sourcing of key amino acids and vitamins via import from global stocks.

Producer responses have been mixed and guarded as one would expect in times of challenge.  Considerable interest in slowing growth rates in finisher swine if market access is restricted.  Dietary changes to add fiber, tightening feeder adjustments to slightly restrict feed flow, and many other options have been proposed; yet, this is a short term solution when pig flow is dictated by births and space needs from the sow units (for more information consult: https://www.porkbusiness.com/article/pulling-lever-should-you-slow-down-pig-growth).  Sow harvest numbers have trended higher in the past few weeks, an indication that some producers may be cutting herd size back. Likely these numbers represent the poorest performing animals first, but with continued pressure indications are that some producers may consider liquidating.  There are also groups looking to reduce numbers of piglets through planned euthanasia or abortion, as last resorts, to relieve numbers in already full production systems. Significant challenges in each of the identified areas as the caregivers, managers, owners maintain a very vested interest in welfare friendly production of high quality, safe food.

In summary, COVID-19 has had a multitude of negative effects on Ohio’s swine sector, many of which have ripple effects on individuals and their communities.  Outreach education and information from state-level Extension, the Ohio Pork Council, and the National Pork Board are available to assist producers in these difficult times.

by: Stan Smith, OSU Extension, Fairfield County

To suggest that supply in local meat cases has been disrupted since schools closed and ‘stay-at-home’ orders were issued last month might be an understatement.

The good is simply this. We have more than adequate supplies of market ready livestock on the farm to accommodate the consumer’s demand for meat.

The bad is that COVID-19 caused disruption to the meat supply chain that created short term shortages in the meat case, and fluctuations of price in both the meat case and especially livestock at the farm.

The ugly is these concerns are likely to affect both the farmer and the consumer for weeks, and perhaps even months to come. The solution to the chain of events that have caused the problems in the supply chain all revolve around how quickly COVID-19 is arrested and the lives of consumers and all the members of the meat supply chain can return to normal.

First, to understand the solution one must have an understanding of the inter-related actions and reactions that caused the meat case shortages and livestock price fluctuations experienced in recent weeks, and perhaps into the foreseeable future.

The story begins early in 2020 when the livestock markets were reacting negatively to the concerns of the potential impact COVID-19 could have on exports when it hit the U.S.

In mid-March when it became obvious COVID-19 had arrived in the U.S., markets shifted their attention to domestic meat supplies. On March 16 when Ohio’s schools closed, they were no longer offering lunch to 1.7 million schoolchildren. Families were suddenly needing to shop for food – including meat – to prepare at home. A week later Ohio’s stay-at-home order was issued. That resulted in restaurants closing or only offering drive through service and families were once again headed back to the grocery to stock up as they prepared to create even more meals at home. As Americans were now suddenly no longer spending more than a third of their food budget on meals prepared away from home, the markets reacted with a short-lived spike in livestock prices as supply scrambled to keep up with demand in local meat cases.

It’s now April and the markets have shifted their focus away from the demands of simply feeding the consumer, but are now concerned about packing plants operating below capacity or temporarily closing down due to the impact the virus is having on the labor force in those plants. While demands for meat in the retail case remains strong, and livestock inventory is more than adequate to supply that demand, the loss of U.S. harvest capacity is now causing a backlog of market ready livestock at the farm. The net result is strong prices in the meat case at a time when farm gate livestock prices are depressed simply due to the lack of a market outlet.

Today, consumers are again facing the potential for temporary disruptions to the meat supply chain until packing plants can get back to full production. At first glance this may seem to be a short-term problem the consumer can simply manage around. Unfortunately, the same is not necessarily true for the livestock owner.

If a consumer must prepare a meal without meat because of an empty meat case, it’s a meat sale that is lost forever. At the same time, along with lost packing house capacity and resulting delayed animal sales comes market ready livestock that continue to grow – and create more meat – every day they are held off the market. Even when restaurants are allowed to reopen, the question remains, “How quickly will consumers return to restaurants, and can the supply chain quickly shift again and provide the meat they will demand in timely fashion?”

Until COVID-19 subsides and enough healthy work force is available to restore the U.S. packing house capacity and entire supply chain structure, we will continue to deal with the good, the bad and the ugly of a disrupted supply and demand. Consumers may experience temporary meat case shortages while livestock producers will be faced with marketing challenges, depressed prices, and the need to remain flexible in their livestock feeding and marketing plans moving forward.

The three articles that follow focus more closely on the impact COVID-19 is having on beef, swine and lamb producers and their individual markets.

by: Amanda Douridas, Christie Welch, Peggy Kirk Hall

With the closing of many public places and government buildings, some farmers’ markets may be left without their usual access to restrooms. What are the requirements for market managers to provide restroom facilities?

The Ohio Revised Code states that restrooms must “be readily accessible to farmers’ market personnel when the farmers’ market is open for more than four consecutive hours.” Note that this requirement applies to “personnel” or employees of the market. There is not a restroom requirement in the regulation that applies to vendors or customers of the farmers’ market.

One option for easily complying with this rule is to limit farmers’ market hours to four hours or less, since the obligation applies only if the market is open for more than four consecutive hours. For markets that are open for more than four hours, the other option is to rent a portable toilet for personnel if permanent facilities are not available.  And while there is no requirement for restrooms to be available to the public, some markets like to offer this as a courtesy to their vendors and shoppers.  In light of the social distancing orders, use by customers may be very limited or non-existent. But what about your market personnel?

We know during normal operations, many markets have restroom access, especially for vendors.  But during the COVID-19 pandemic and the fact that many of the facilities that markets had access to are now closed; portable toilet rental might be the best option. Markets may be able to get a reduced rate if the toilet is only being used for a few hours a week. Locking the toilet with a padlock when the market is closed will ensure no one accesses it outside market hours. The code also state “[a]ll equipment and facilities used in a farm market, farmers’ market, and a farm product auction shall be maintained and clean.” So, it will need to be maintained and cleaned. A temporary hand washing station can be setup using a 5 gallon thermal container with warm water and a 5 gallon bucket to catch the water. Add soap and paper towels on the table, along with a trash can for a complete station (see graphic for example).

If restrooms had been available, but now will not be, let vendors know so they can be prepared for the change. This would be a nice courtesy to them since vendors are unable to leave during market hours.

Also make sure your vendors and customers understand this is NOT business as usual.  While we love farmers’ markets for their social atmosphere, those activities need to be stopped to help maintain everyone’s safety and health. The goal at this time should be to allow customers to access locally produced food from farmers with as little interaction as possible. Signage to remind your customers to maintain social distance, to not touch the produce, and to get their items and exit the market quickly are also good practices at this time.

For more information about operating farmers’ markets during the COVID-19 pandemic, you may want to check out the Ohio Farmers Market Network resource page: https://go.osu.edu/covid19ofm.

From the University of Kentucky Best Practices for Sampling At Farmers Markets

http://www2.ca.uky.edu/cmspubsclass/files/extensionpubs/2012-19.pdf