Monday, December 13, 2021

Introducing climate-friendly chicken

Presented by Connect The Future: Delivered every Monday by 10 a.m., Weekly Agriculture examines the latest news in agriculture and food politics and policy.
Dec 13, 2021 View in browser
 
POLITICO's Weekly Agriculture newsletter logo

By Ximena Bustillo

Presented by Connect The Future

With help from Helena Bottemiller Evich, Doug Palmer, Eleanor Mueller and Hannah Farrow

PROGRAMMING NOTE: Morning Agriculture won't publish from Monday, Dec. 20 to Friday, Dec. 31. We'll be back on our normal schedule on Monday, Jan. 3.

Quick Fix

— Chicken marketed as friendlier for the climate is about to hit grocery stores, as the Agriculture Department is mulling what climate-smart commodities could look like in the future.

— Consumer price index data show food prices continue to rise — and the Biden administration continues to blame dominant meat processing companies. The White House also defended its work to ease supply chain congestion, including for farm goods, amid GOP attacks.

— President Joe Biden took aim at Kellogg's plans to replace striking workers, the latest case of the administration siding strongly with employees in recent labor disputes.

HAPPY MONDAY, DEC. 13! Welcome to Morning Ag, where your host is in Oregon for a few days and enjoying the PNW scenes! Send tips to xbustillo@politico.com and @ximena_bustillo, and follow us @Morning_Ag.

 

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No poles, no broadband. Know poles, know broadband. To get more Americans connected to the internet quickly, we need fast, transparent, and fair utility poles processes.

 
DRIVING THE WEEK

CLIMATE-FRIENDLY CHICKEN IS HERE: Environmentally conscious consumers will soon be able to buy "carbon-reduced" chicken that's partially raised on food waste diverted from grocery stores. Do Good Chicken , which launches at major national retailers in February, is a sign of things to come as the food industry increasingly grapples with consumer concern about the climate crisis.

New co. in the barnyard: In this case, the product comes from Do Good Foods, a startup with substantial financial backing and working with some of the most well-known names in food. Last week, founders Justin and Matt Kamine held a Food Tank event with Sam Kass, who served as nutrition policy advisor to former President Barack Obama and is now chief strategy officer for the company, as well as former Agriculture Secretary Ann Veneman, who's advising the company, and Tom Colicchio, a well-known chef and advocate, who said he looked forward to serving the chicken at his restaurants.

What does "carbon-reduced" mean? Do Good Chicken bills itself as the "first domestic chicken brand actively combating climate change." The company worked with USDA to clear its labels before market, as required. The labels will say that each chicken saves four pounds of food waste from going into the landfill and, along with it, three pounds of greenhouse gas emissions.

How it works: The company currently has one facility in Fairless Hills, Pa., where it can convert 160 tons of retail food waste per day into components for chicken feed, which is then used by contract growers to raise the birds. The company, which recently announced it raised $169 million from Nuveen, is aiming to scale this model nationwide.

"We think we can convert the vast majority of retail food waste in the next five to 10 years," Kass tells MA.

Priced below organic: The details of the company's retail rollout haven't been announced yet, but Kass said the product will be "priced for the many, not for the few." The price point will be "significantly" below organic, but above conventional chicken, he said.

The climate boom: Consumer packaged goods companies are turning to climate claims to appeal to millennial and Gen Z consumers who are very concerned about environmental impact (and let's not forget, many of these companies have also made ambitious climate pledges).

Two quick examples: Horizon Organic dairy is now on the market with claims it will be "carbon positive" by 2025 (meaning beyond net-zero emissions). Cascadian Farms is also on the market with "climate-smart" cereal made with Kernza, a perennial grain that helps sequester more carbon.

FOOD COSTS ON THE UP AND UP? Food prices remain high, with at-home prices up 6.4 percent for the 12 months ending in November compared with 2020, and away-from-home prices up 5.8 percent, according to the latest consumer price index data.

The biggest contributor? Meat. Beef prices increased nearly 21 percent from the year ending in November. And in one month, from October to November, pork prices jumped 2.2 percent, reports POLITICO's Hannah Farrow.

Blaming big meatpackers: The White House attributes rising meat prices to "dominant corporations in uncompetitive markets," where "just four large conglomerates control approximately 55-85 percent of the market for pork, beef and poultry."

The gross profits of the four largest meatpackers have "increased by more than 120 percent since before the pandemic, and their net income has surged by 500 percent," according to a White House analysis released Friday.

What USDA is doing about it: The department is offering financial support for small meat processors, including about $1 billion now available through its loan guarantee program. The administration has also pledged to "crack down on illegal price fixing, enforce antitrust laws and bring more transparency to the meat-processing industry.

WHITE HOUSE TOUTS 'COST CUTTING' EFFORTS: In a memo released Saturday , White House officials defended the administration's "swift and decisive action to combat high prices, ease inflationary pressures and make sure America's families can put food on the table," citing the investments in small meat processors and federal grants to help farm goods move in and out of the nation's congested ports.

On Friday, the Transportation Department awarded $12.6 million to "marine highway projects to help move agricultural goods to market faster." The memo takes yet another swing at big meat processors, saying that price increases are a result "of corporate decisions that take advantage of consumers, farmers and ranchers, and our economy."

The memo also highlights potential solutions in Democrats' $1.75 trillion social spending package, which passed the House and is under negotiation in the Senate. Majority Leader Chuck Schumer (D-N.Y.) is aiming to pass the bill by Christmas — but the calendar is shrinking.

The GOP's own campaign: Republicans, meanwhile, are shelling out millions of dollars on ad campaigns in key 2022 Senate battlegrounds, warning voters that inflation is "killing us," reports POLITICO's Burgess Everett.

For context: Consumer prices in general are rising at record rates, fueling the GOP attacks against Biden's policies. POLITICO's Ben White explains.

BIDEN CALLS OUT KELLOGG: The president made a rare interlude Friday into employer-employee relations when he condemned Kellogg Co.'s plans to permanently replace striking workers at the company's cereal plants.

"I am deeply troubled by reports of Kellogg's plans to permanently replace striking workers," Biden said in a statement, adding that such a move amounts to "an existential attack on the union and its members' jobs and livelihoods."

It's hardly the administration's first show of support for organizing efforts, particularly in the food and ag sectors. In October, Vilsack himself visited John Deere workers striking in Iowa, and Labor Secretary Marty Walsh joined the striking Kellogg workers the same month.

 

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Fresh from USDA

AN IOWAN, OHIOAN AND IDAHOAN WALK INTO A BARN: Your MA host followed Vilsack to The Ohio State University on Friday, where he took a tour of the campus Dairy Center — a facility that helps students learn how to work and care for a dairy farm — and promoted the infrastructure package, alongside Democratic Sen. Sherrod Brown.

Vilsack said the legislation "allows us to maintain our competitive edge in exports, which is incredibly important to Ohio agriculture. Twenty to 30 percent of everything we grow and raise in this state and every state ends up going overseas," he told reporters and OSU representatives. "It means a better bottom line for farmers."

Got whole milk? MA asked Vilsack where he stands on the push to put whole milk back into school meals. He noted the department is in the process of putting together an interim rule that will help address the waivers that were provided to schools during the pandemic and suggested that milk would be part of that rollout.

"We are going to try to work our magic with those interim rules," he said. "I am very cognizant of the challenges we have to make sure we are doing right by our kids, in terms of providing adequate nutrition and at the same time making sure we are consistent with standards that have been established."

Vilsack announced a new $1.2 million grant for OSU to work on a robotic irrigation project. He touted the project as beneficial for the environment, especially out West.

Speaking of the West: Robert Bonnie, USDA's undersecretary for farm production and conservation, will be just south of Portland, Ore., today (with Vilsack joining in virtually) as he looks at the impact of drought on the Pacific Northwest region. And you bet your host tagged along for this one, too! Stay tuned for more news and farm pics from the PNW.

 

JOIN TUESDAY FOR A WOMEN RULE 2021 REWIND AND A LOOK AHEAD AT 2022: Congress is sprinting to get through a lengthy and challenging legislative to-do list before the end of the year that has major implications for women's rights. Join Women Rule editor Elizabeth Ralph and POLITICO journalists Laura Barrón-López, Eleanor Mueller, Elena Schneider and Elana Schor for a virtual roundtable that will explore the biggest legislative and policy shifts in 2021 affecting women and what lies ahead in 2022. REGISTER HERE.

 
 

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Trade Corner

Dairy cows are seen located at The Ohio State University's Dairy Center in December 2021.

Dairy cows are seen located at The Ohio State University's Dairy Center in December 2021. | Ximena Bustillo/POLITICO

NO DATE YET FOR AG-TRADE NOMINATION HEARING: It looks increasingly likely that the Senate Finance Committee won't hold a hearing until early 2022 on the nomination of Elaine Trevino to be chief U.S. agricultural negotiator.

As of Friday, the panel was "still processing her paperwork and materials while it does its due diligence review," a committee spokesperson said.

For comparison: There's still a chance the Senate could confirm Trevino sooner than it did Gregg Doud, who was chief ag negotiator during the Trump administration. Doud had to wait until March 2018 to win Senate approval, nearly five months after his nomination hearing.

A coalition of 170 farm groups urged Senate Finance Committee leaders in October to act swiftly on Trevino's nomination so she could address growing trade challenges with China, Mexico and the EU.

CANADA THREATENS DAIRY IN EV DISPUTE: Canadian Deputy Prime Minister Chrystia Freeland and International Trade Minister Mary Ng sent a letter to eight Senate leaders outlining Canada's concerns over electric vehicle tax credit provisions in Democrats' social spending package, reports POLITICO Canada's Zi-Ann Lum.

The pair pointed to dairy tariff-rate quotas and other Canadian concessions under the USMCA trade pact as areas for potential suspension should Biden's spending package become law with the EV provisions in place.

 

DON'T MISS CONGRESS MINUTES: Need to follow the action on Capitol Hill blow-by-blow? Check out Minutes, POLITICO's new platform that delivers the latest exclusives, twists and much more in real time. Get it on your desktop or download the POLITICO mobile app for iOS or Android. CHECK OUT CONGRESS MINUTES HERE.

 
 
Row Crops

— The new scoring criteria for USDA's Rural Connectivity Pilot Program could leave out some rural areas from broadband funding, Iowa Republican Sens. Joni Ernst and Chuck Grassley warned Friday in a letter to Vilsack.

— The Covid-19 pandemic brought a whirlwind of changes to the food system and other sectors that are likely to stick around, including to-go cocktails, QR codes in restaurants and free school meals. Check out our full list here.

— Laura Green, a toxicologist who downplayed the risks of PFAS chemicals, has resigned from working with the EPA after an E&E News report highlighted how her claims run counter to the agency's policies. Our E&E News colleagues have the story.

— Livestock production could thwart global climate pledges to reduce methane emissions if the ag sector's emissions are not tracked properly. TIME has more.

 

A message from Connect The Future:

To get more Americans connected to the internet quickly, we need fast, transparent, and fair processes for poles permitting and replacement and for resolving disputes when they arise. Congress can address poles barriers with commonsense solutions, ensuring infrastructure investments in rural broadband reach more unserved homes and businesses faster and at no additional cost to taxpayers. Learn more.

 

THAT'S ALL FOR MA! Drop us a line: xbustillo@politico.com; hbottemiller@politico.com; meredithlee@politico.com; gmott@politico.com and pjoshi@politico.com .

 

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