Happy Thursday to all!
The egg market has remained stable for another week. There have been over 3 million birds destroyed due to the A1 bird flu in the Mid Atlantic region. Surprisingly this has not affected the market.
Butter was up a good amount before today’s drop. We are keeping pricing the same. My guess is it will rebound some tomorrow. Butter stocks and production are lagging behind last year and I feel this will help maintain these higher prices for quite a while. Butter will probably be tight in the 4th quarter when demand is at its highest.
Both Block and Barrel rose this week. Exports are strong as world pricing is at all time highs. The war is disrupting supply chains and causing energy to rise dramatically. All of these factors I feel are contributing to the aggressive cheese markets. I do not think we will see much in the way of decreases and possibly will see prices continue to rise.
Please ask your Honor Foods salesperson about our opportunity buys and items that you can not find elsewhere.
The Honor Foods team all thank you for your continued business. We hope you have a peaceful and safe weekend.
Much to my surprise, eggs dropped a little this week. I still expect it to turn around but time shall tell. I have not heard any more reports of the A1 bird flu popping up.
Butter rose this week with 19 loads changing hands at the CME. I feel that some of the market changes are somewhat caused by the uncertainty caused by the Ukraine issue and its effect on the world supply chain issues.
Both the Block and the Barrel rose this week. Barrels ended up the same as last week but if nothing changes it will be higher next week as the close is higher than the average, You may notice that the Hilldale prices are up .03 due to an increase from Land o Lakes. Land O Lakes also raised all their deli cheese (retail) by .15.
The team at Honor Foods thanks you for your continued support and business.
Eggs dropped again this week. With the outbreak of A1 influenza in a flock in Delaware, I expect this to turn around and potentially fast and furiously.
The market went slightly lower this week, but this is the week of Cabot’s price increase of .04 on butter. Those items will go up but not the rest of the butter line. I still feel that we will remain somewhat in this range for a while as the world market is high and supplies are low.
With the butter market being so high, cream is rising again for March.
The cheese markets remained fairly stable this week with moderate increases. Again the world market is much higher and exports are prevalent. Milk supplies are loosening up somewhat in the MidWest but volumes at the farm are still down. Demand has been good and with most of the mask mandates going away foodservice has been strong adding to demand.
Our purchasing team is always looking for new items to offer you on a daily basis. If there are items others are out of please ask your salesperson and we hopefully have something to offer you from our extensive inventory. Everyone on the Honor team wishes you a safe and relaxing weekend.
Good day to all,
The market is correcting downwards as supplies are growing and demand is not that vibrant. I expect more downward movement next week.
Butter has taken a wild ride this week. Starting with a .175 jump last Friday. We are still somewhat higher today than last Thursday, but nowhere near the .28 it was up at at one point. I think it will drop back to the mid $2.50’s next week but that remains to be seen.
Both Block and Barrel are up this week. It is so much harder to gauge the markets in this day and age with all that is going on in the world. Normally you would never see the cheese markets rising this time of year, especially Barrel cheese (American Cheese). Exports are still strong and transportation issues make it tough to get the cheese where it needs to go.
The whole Honor Foods team would like to thank you for your continued business. Have a safe and relaxing weekend.
Good afternoon to all and happy Thursday! We are almost there!
The market is starting to correct itself after the large run up. The loose egg inventory is building but the demand for cartons is still strong. I would look for more downward pressure in the coming weeks.
Butter found some strength this week while only 5 loads changed hands at the exchange this week. Below is a glimpse of today’s trading activity. My feelings are that we will remain in this range for the next few weeks, but time shall tell.
Both Block and Barrel rose this week after last week’s close was higher than the averages. Blocks have not moved since Friday and barrels have softened somewhat. Only 3 loads traded this week on cheese. Very quiet overall at the exchange this week on all dairy.
The Honor Foods team all thank you for your business and hope you have a safe and relaxing weekend. Enjoy the Super Bowl!
Good afternoon to all,
The market turned around and jumped yesterday much to my surprise. The tone of the market is full steady which usually means a big jump is on its way. Today they are saying this inventory is short compared to demand.
We are close to the record high price of butter as the market continues to surge upwards. There continues to be a worldwide shortage of butterfat. The U.S. has been exporting as we were so much less expensive than other world butter markets. Manufacturers are scrambling to get inventory due to expected shortages later this year. We typically import AMF (explained below) but there is none coming in putting further demands on butter supplies. Cream has been incredibly short in the marketplace and with the downturn in milk production less cream is being spun off. I am hearing that there could be more upside in the near future.
Cream and Cream Cheese:
As I mentioned last week, the rapid rise in butter is causing fluid cream to rise dramatically for next month. I am expecting over .40 cents per quart to go into effect for the week of 1/31 We have plenty if you would like to pad your inventory some. Cream cheese is getting harder to get. Demand has shot up so much that there is just nowhere near enough to go around. Schreiber (one of the world’s largest producers) announced allocations going forward. Smithfield cream cheese is almost non-existent at this point. I used to get a trailer most weeks and as of late, I am able to only get 2 pallets per week. We are doing our best to supply our cream cheese customers.
Both Block and Barrel are correcting to more seasonable levels. Blocks tumbled this week and Barrels dropped dramatically today. The spread is back to 2.75 cents. Barrel will drop more next week due to the close being lower than the current average.
Thank you all for your continued business. All of us at Honor Foods wish you a safe and relaxing winter weekend.
Good afternoon to all,
The egg market has been correcting downward and is slowing down. The tone of the market is “Attempting to settle”. There may be some more slight drops but I think it will remain around this level for the near future.
Please note that yesterday’s butter market was $2.83 not the $2.10 listed above.
Butter has finally stopped skyrocketing upwards. Butterfat is in a worldwide shortage situation. Milk production is down across the globe and therefore Butter production and cold storage levels are down. Many manufacturers had been buying aggressively to make sure they put away butter for the 4th quarter due to this. When there is excess milk most finds its way to the churns. With milk being in short supply this is not happening. I have spoken to a few butter producers this week and cream is in tight supply and the multipliers they are paying are very high. Butter is the highest it has been in years! We have a great supply of butter solids and the Cabot bulk butter will be back in stock in about 2 weeks.
This situation has gotten worse in the past 2 weeks. Savencia (manufacturer of Smithfield label cream cheese) shut down for a week for maintenance. Schreiber is still way behind on production and has stated they will not be in good shape until late in the Spring. We are doing our best to allocate what little we have to our cream cheese customer base.
We have plenty of both 36% and 40% available in the Golden Sunshine label. Due to the rapid increase in the butter market cream will be going up over .40 a QT for the month of February. That is a $5.00 a case increase! If you want to buy in, we have you covered!
Barrels have risen and Blocks dropped some and now the spread is the lowest it has been in a long time. We are down to a .05 spread. I feel that the markets are high for this time of year, but the lack of milk is helping to keep it at lofty levels for the time being. With Playoffs and the Super Bowl followed by March Madness coming up this keeps the Block demand high.
Supply Chain Issues:
This continues to play a major role in our industry. You watch the news and you hear about food inflation and empty retail shelves. It is a bad situation. Trucking is at an all-time high cost and in short supply. The Omicron spread is really taxing the workforce making it hard for manufacturers to produce with limited staff. Hopefully, this all subsides soon.
Please always ask your Honor Foods salesperson about the items you are having a hard time finding from others. I and the whole Honor Foods purchasing team are constantly looking for items to keep the pipelines full.
We all want to thank you for your continued business during these unprecedented times. We hope you have a safe and relaxing weekend.
Redistribution is done right at Honor Foods in Philadelphia, a Burris Logistics Company, primarily due to our Team. When you choose Honor Foods, you choose our people too. So, we are choosing to highlight them a series of short blogs showcasing their #LifeWithHonor.
We are pleased to introduce you to Crystal Boyland, Accounts Payable Specialist. Crystal has been with Honor Foods for 29 years and went from wanting to work with children and wanting four to having one and loving her office position!
As an Accounts Payable Specialist, she has done a little bit of almost every job in that department. She has worked with invoices, payroll, and more. She started as a Data Entry Clerk for a couple of years before moving into the accounting department, going back to school for her high school diploma, then associates in accounting, and onto her bachelor’s in business administration. The tuition reimbursement Honor Foods offered her was a large part of her drive to continue her education, and she is so grateful.
Q: Tell us something unique about yourself that everyone at Honor Foods knows you as/for?
“I have a big mouth; I like to laugh. I have a hearty and healthy laugh, and I like to use it. You have to smile, no matter what goes on. I do tend to use southern phrases, and instead of cursing, I’ll say like southern/old school terms.”
Q: What do you love doing outside of your work? Any interesting facts about you?
“I love Church; I like to praise dance in Church. I like some computer games. My daughter is 30, married, and has one son; that is my joy. He is two years old and thinks he is 22 years olds. I don’t like pets; I have a phobia of fur. I like to line dance and love music.”
Q: Why Honor Foods?
“Honor Foods always allowed me to grow. I didn’t start with the “proper education,” and as I said, I have done different jobs, especially within the accounting department. I like a challenge; that was a bonus to me. Honor Foods gave me all of these avenues throughout the years. I started when I was 32; they allowed me to grow myself, take care of my family, and do better. I learned more, grew better, and wanted to stay and reciprocate everything they gave to me. Since they were always there for me. Sue Murphy retired this year; she was my favorite team member. To this very day, we still depend on each other and call each other. I like the team environment I am in now.”
This is just one of the significant pieces that MAKES IT HAPPEN for us by providing team member-driven solutions to meet our partners’ and Team members’ needs and goals. We are so grateful to have Crystal on our Team.
About Honor Foods
Honor Foods, a Burris Logistics Company, was founded in 1949 as a redistributor of center-of-the-plate foods. Since then, Honor Foods has grown into the Mid-Atlantic region’s premier provider of frozen, refrigerated, dry, and dairy products, representing more than 300 brand-name food suppliers and carrying more than 3,000 in-stock items. In addition, our exclusive house brands — Colony Lane and Valley Fresh, have a well-earned reputation for top quality and value at competitive prices.
Great products and prices are just part of the Honor Foods value-add. In addition, we pride ourselves on having a Team of dedicated professionals who manage each partnership. Our commitment to your business needs is what makes us unique.
Eggs went up .01 this week but we did not pass that along! I am guessing that the market needs to come down some, but unsure when that will begin.
The butter market is surprising everyone by jumping up to the highest it has been in quite a while. Normally (but this year is far from normal!) Butter drops this time of the year. Strong demand paired with a shortage of cream are the driving factors. Butter in the US is well below the world market making it attractive for exporting also. Cheese is in the same position as the world market. 28 loads of Butter changed hands at increasingly higher prices this week at the CME. Futures are also pointing towards higher prices.
Due to the increasing Butter market cream is going up again next month. We have an opportunity with the Byrne 36% and 40% as we are dropping the price now .10 qt. We have had good luck with it once we started storing it at ambient temperatures.(it is aseptically packaged) and does not require refrigeration and has a long life. Operators can leave it out and use it from a warm state unless they are making whip cream. In that case, just chill it first. There is considerable savings on these items.
By now we have all seen it on the news about the ongoing shortage. We started allocating it to customers who have been buying it from us on a regular basis and were able to supply those customers in a more acceptable manner. We have product rolling in mid week and we hope we can supply more people in the near future. Seeing as it follows the butter market these prices have been going up every week.
Both Block and the Barrel gave up some ground this week. As stated earlier, U.S. markets are discounted enough to the world markets to help drive some exports. I feel that this is helping to keep the markets elevated.
All of us wish you and your families a joyous Christmas and as always that you for your much appreciated business.