How Labor Day weekend affects MST and MSC
This past weekend was Labor Day weekend and, as a federally recognized holiday, all federal businesses and many non-federal businesses including Expana, took Monday off. The first Labor Day was celebrated on Sept. 5, 1882, and federal legislation designated it a federal holiday on June 28, 1894. The original intention of Labor Day was to honor American workers, especially those of the blue-collar class. It was decided that the holiday would be held the first Monday in September as it roughly splits the 4th of July and Thanksgiving holidays (Britannica). As one of the last long weekends before the weather shifts to cooler temperatures for most of the U.S., it became an unofficial last hurrah of summer. A survey by The Vacationer found that in 2023 over 57% of Americans intended to travel for Labor Day, and over 27% of those who were traveling were planning on going to the beach or lake. With days spent at the beach or lake, often comes grilling. The Hearth, Patio, & Barbecue Association found that Labor Day is the second most popular grilling day of the year, following behind the 4th of July, and 47% of owners fire up their grill. This is evidenced when we look at the retail distribution of a popular grilling item: hotdogs.
Hotdogs are a type of sausage dish that is typically composed of beef, pork, turkey, and chicken alone or in any combination. Beef components come from beef trimmings, and pork components come from pork trimmings plus up to 20% mechanically separated pork. Mechanically separated chicken or turkey is allowed to be used without limitations in hotdogs (USDA, FSIS). Except for a few outlying weeks at the beginning of the year, based on the 3-year average, 50% of retail fresh hotdog distribution occurs between the second week of April and the second week of September. The week of Labor Day takes the eleventh spot of weeks in the year in which the most hotdogs were sold. This year’s year-to-date (YTD) average hot retail price for hotdogs is up 7.9% in comparison to the 3-year average and YTD total distribution is down -3.6%. An important influencing factor in this may be the wholesale prices of the components that go into them. Beef prices have shot upward this year, and the YTD average wholesale quotation of fresh 90% chemical lean beef is 26.3% higher than the 3-year average. Comparatively, YTD quotations for fresh 72% pork trim, fresh mechanically separated chicken (MSC), and fresh mechanically separated turkey (MST) are lower than their 3-year averages by -11.1%, -26.8%, and -29.9%, respectively. While all four proteins are used in hotdog manufacturing, beef is a popular pick for those who want to eat Kosher, and Google search trends show that YTD interest over time in the search term “all beef hot dog” is up 8.4% compared to the 3-year average. This may influence the increased average hotdog retail price, which in turn may impact the buying habits of price-conscious consumers.
While beef is certainly still in the mix, MSC and MST can’t be ruled out, and in fact, may be gaining in popularity. Retail distribution data is not out for this week yet, but an MST buying frenzy that ensued a couple of weeks ago may suggest that an increased number of retailers compared to the past few months wanted to feature turkey-containing hotdogs this Labor Day. From August 5th to August 30th, wholesale quotations for MST rose from $0.40/lb. to $0.43/lb. as some hotdog manufacturers started actively inquiring about production at the last minute. Despite MSC being far cheaper at $0.31/lb., most of the interest centered around MST. This may have been influenced by the reputation of “turkey dogs” for being a healthy option. While “healthy” is a subjective term without a clear definition when it comes to food, websites from companies like Corewell Health and Cooknight tout turkey dogs as a desirable choice compared to beef and pork when it comes to health. Additionally, the rarity of seeing an all-chicken hotdog may also be attributable to the aesthetic and. Most consumers expect their hotdogs to be a certain color and flavor, and the whiter coloration and lighter flavor of chicken in comparison to the other proteins may influence consumers’ desire to buy such a product. Whatever the reason, while MSC may not have been a highlight this Labor Day, turkey producers found a bit of traction in the market thanks to the holiday.
EU egg markets steady amid holiday lull, but seasonal shift looms
During July and August, the EU egg and egg product markets experienced subdued buying activity, particularly within the foodservice and retail sectors. Food manufacturers scaled back production in response to school holidays, while the slowdown in supermarket demand was largely due to regular shoppers being away on holidays. In contrast, demand from the tourism industry for liquid whole eggs increased in popular holiday destinations such as Italy, Spain, and the French Côte d’Azur.
Despite this uptick in certain areas, overall average prices within the liquid eggs market have largely remained stable, trending at or below last year’s levels. However, there have been isolated instances where trades occurred at slightly higher price points than Expana’s assessed prices.
Considering the reduced demand during the summer holiday period, some farmers took the opportunity to replenish their laying flocks, aiming to introduce new hens by late August. In the interim, however, the available stock of eggs at farms and packing stations remains limited, and shortages have been reported in several egg categories in recent weeks.
The combination of low buying interest and a constrained supply has helped maintain a balance in the market, resulting in minimal price volatility for breaking eggs throughout August. However, market participants anticipate a seasonal shift in the coming weeks, as the summer holiday ends and food manufacturing resumes on a larger scale.
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