ArrowStream Foodservice Blog

Has African Swine Flu Caused a Protein Supply Shortage?

Posted by Kate Hubbard on Aug 8, 2019 11:45:05 AM

ArrowStream's commodity expert, David Maloni, noted from Friday’s monthly export data that pork carcasses were shipped to China in June for the first time on record and may signal an increase in U.S. pork exports to China in the coming months, despite the ongoing trade negotiations.

Maloni stated this week that, "there is no sign of a major world protein shortage in the U.S. trade data. U.S. total pork, chicken, turkey, and beef exports in June were 1.4 percent less than the previous year and in line with historical averages. In other words, no surge, but this is important to watch as 2020 approaches."

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Topics: Market Intelligence, Strategic Sourcing

Bacon Consumption Continues to Sizzle

Posted by Kate Hubbard on Jul 31, 2019 2:09:11 PM

June's U.S. pork production was a whopping 5.9 percent larger than the previous year. ArrowStream commodity expert, David Maloni, feels that this and tempered domestic demand brought on by concerns of African swine fever, caused the U.S. June pork supply decline to be the smallest in 24 years.

"Bacon lovers will be happy to know that June 30 pork belly stocks were 6 percent higher vs. 2018 and experienced the smallest June drawdown in five years," said Maloni. "Despite concerns about supplies, pork belly disappearance was 5.7 percent larger than the previous year. Further, the 12-month belly disappearance average is at 4 percent above prior year reaching the highest level since summer 2017. It would not surprise us if, when it’s all said and done, pork belly disappearance is strong for July as well."

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Topics: Market Intelligence, Strategic Sourcing

Cattle Herd Has Topped

Posted by Kate Hubbard on Jul 24, 2019 11:25:22 AM

ArrowStream commodities expert, David Maloni, noted this week that data suggests the cattle herd has topped.

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Topics: Market Intelligence, Strategic Sourcing

Are Menu Prices Tempering Restaurant Traffic?

Posted by Kate Hubbard on Jul 17, 2019 1:21:03 PM

In a recent post, David Maloni, ArrowStream's commodity expert, noted that June retail sales for foodservice and drinking establishments (restaurants) were 4 percent higher than the previous year. Even though that is considerable, it remains the smallest annual gain in the last 15 months. Further, the year-over-year gain in June restaurant traffic at just .9 percent was the smallest since January 2018.

"Perhaps this is due to higher menu prices," said Maloni. "During the month, menu prices were 3.1 percent higher vs. 2018, matching the biggest gain in nearly 11 years. Now part of this is due to higher labor costs and the rise in delivery for the industry. But the lackluster traffic growth raises concerns about the industry’s ability to continue to raise menu prices with this intensity."

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Topics: Market Intelligence, Strategic Sourcing

6 Best Practices for Improving Your Sourcing Strategy

Posted by Kate Hubbard on Jun 10, 2019 4:19:12 PM

Many restaurant chain operators have a manual process for sourcing new products, identifying new vendors or for evaluating market pricing levels. Manual processes not only drive extended sourcing timelines, but also prevent buyers from being proactive in their strategy.

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Topics: Strategic Sourcing

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