May brought a range of supply and pricing developments across key protein, grain, and additive markets that influence pet food manufacturing. From animal by-products and plant-based proteins to feed additives and grains, shifting production trends, trade policy changes, and supply chain constraints all contributed to evolving market dynamics. Pet food formulators and buyers will find these trends critical for managing cost, sourcing strategy, and long-term planning.
In May, the beef variety market was mixed. Kidney prices dropped 3.33% from April but saw a slight recovery late in the month. Livers spiked 20% early on before gradually falling, while hearts remained elevated due to strong demand and limited supply.
Pork variety meats like livers and kidneys stayed steady, with hearts slightly higher. Cold storage inventory rose 5.7% from March but was still 21.6% below last year. Items commonly exported to China, such as feet and ears, saw weaker pricing due to ongoing tariffs. A temporary U.S.-China tariff rollback helped renew export interest, but effective pork tariffs remain high at 57%.
Poultry production increased slightly, with ready-to-cook chicken up 0.77% year-over-year through April, driven by heavier bird weights and increased headcount. Chicken frame prices corrected, but jumbo boneless breast meat and mechanically separated chicken (MSC) stayed firm. Turkey production dropped nearly 10% year-over-year, the twelfth straight monthly decline, supporting higher prices for MST. Turkey livers, hearts, and gizzards remained steady.
Plant-based protein sentiment turned more bullish, as anti-dumping tariffs on Chinese pea protein persisted. Prices declined in Europe, and buyers are cautious due to ongoing trade uncertainty and new European capacity.
By-products saw firming prices. Edible tallow, lard, and choice white grease rose due to limited supply and increased interest. Meanwhile, blood meal prices weakened amid cautious buying.
In feed additives, an anti-dumping petition on Chinese lysine caused uncertainty. Prices for some amino acids fell, while others like methionine held steady. Vitamin markets stayed soft, but freight costs rose, and tariffs remain unresolved.
Salmon imports were slightly down for fresh products but up for frozen. Dried egg prices fell 15.7% due to oversupply, despite continued low production and lingering avian flu risks.
Corn prices fell on record U.S. yield projections, while wheat remained mostly flat, with weather expected to influence summer pricing.
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Image source: Adobe
Written by Janice Schreiber
