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John Deere Myths, Egg Recall, and Avocado Markets
47 Plays10 days ago
This week on the podcast, we are covering everything from policy and pollinators to bees and biofuels. Braeden and Savannah are ready to chat about what is happening in the world of food and agriculture this week.
In the headlines this week:
- A Salmonella outbreak has pulled 1.7 million eggs off the shelves across nine states. Learn more here: https://economictimes.indiatimes.com/news/international/us/egg-recall-expands-to-9-states-after-salmonella-outbreak-leaves-dozens-ill-officials-urge-caution-check-map/articleshow/121696646.cms?from=mdr
- Beekeepers across the country have lost between 70 to 100 percent of their hives- It’s one of the worst hive collapses in U.S. history. Learn more here: https://www.agrimarketing.com/s/153765
- Biofuel industry groups are cautiously optimistic about the EPA's new Renewable Fuel Standard proposal, which suggests increasing blending mandates. Learn more here: https://www.agweb.com/news/policy/biofuels-groups-optimistic-about-epas-rfs-proposal-refute-talk-lower-volumes
- California avocado producers credit Mexican avocado imports for a constant demand and increased market for their product. Learn more here: https://apnews.com/article/california-avocado-mexico-imports-hass-trees-wildfire-1489ff4288e78d02734dcbbe4defa51b
- John Deere is shutting down claims that they are closing down U.S. manufacturing, following a false article release. Learn more here: https://www.agweb.com/news/machinery/no-john-deere-not-freezing-production-or-stepping-away-its-u-s-factories
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Transcript
Introduction to this week's topics
00:00:00
Speaker
On this week's episode, the scramble is real. Eggs are recalled, biofuel groups find unity, and John Deere is not closing its doors. It's a packed episode.
00:00:12
Speaker
From policy to pollinators, let's chat about what's happening in agriculture this week.
00:00:22
Speaker
I'm Brayden. And I'm Savannah. Welcome to Magnetic Ag Ears Edition. Every week, we break down the top headlines and trends facing food and agriculture. Fast, fun, and actually useful.
00:00:33
Speaker
Let's get it.
Salmonella outbreak and egg recall
00:00:37
Speaker
Big developments in the U.S. egg market this week. A multi-state egg recall is now affecting nine states, with 1.7 million eggs from August Egg Company pulled off the shelves due to a salmonella outbreak.
00:00:51
Speaker
And this isn't just a food safety story. It's hitting the industry at a highly sensitive time. The recall affects eggs sold in Arizona, California, Illinois, Indiana, Nebraska, New Mexico, Nevada, Washington, and Wyoming.
00:01:04
Speaker
And these aren't just fridge brands. We're talking major retailers, Walmart, Safeway, Raleigh's, Ralph's, Smart & Final, and more. Exactly. And the timing is critical.
00:01:15
Speaker
Just a few months ago in March, the Department of Justice opened an investigation into whether egg producers inflated prices during recent shortages. Egg prices surged earlier this year, raising eyebrows in both the retail and policy spaces.
00:01:29
Speaker
Then came the correction. Egg prices dropped 12.7% in April, the sharpest one-month decline since 1984, according to the Bureau of Labor Statistics. So now, just as prices began to stabilize, the Salamonella-linked recall injects even more volatility into the market that was already struggling with consumer trust and regulatory scrutiny.
00:01:50
Speaker
From a market standpoint, this recall could ripple through the supply chain and contract markets, especially if retailers scale back orders from the implicated plant codes or shift sourcing to other producers, many of whom are already facing input cost pressures and lingering avian influenza impacts.
Honeybee population decline
00:02:07
Speaker
Now, let's turn our attention to a quiet but urgent crisis, one with serious consequences for our food supply, economy, and environment. Honeybees, the unsung hero of agriculture, are facing devastating losses across the United States, and this year, it's worse than ever.
00:02:23
Speaker
According to a new report from AgriMarketing, beekeepers in multiple regions have lost between 70 and 100% of their hives. That's not just a bad season, it's one of the worst hive collapses in U.S. history.
00:02:35
Speaker
This year's die-off resembles the infamous colony collapse disorder of 2007 and 2008. Back then, bees mysteriously vanished from hives, leaving behind their queens, broods, and food storages.
00:02:48
Speaker
What we're seeing now is eerily similar. What makes this especially alarming is many of the standard culprits, like cold weather or poor nutrition, are being ruled out. In fact, early investigations suggest these losses happen in strong, healthy hives with plenty of food.
00:03:03
Speaker
Researchers are now looking at a new combination of stressors, potentially a toxic mix of chemicals, pathogen, and environmental pressures. So why does this matter? Because honeybees pollinate more than $15 billion dollars worth of crops in the United States every year.
00:03:18
Speaker
Everything from apples to almonds and cucumbers and berries, nearly 70% of these crops that make up most of our nutritious food supply rely on these pollinators.
00:03:29
Speaker
Groups like Project APHIS-M, the American Beekeeping Federation, and USDA researchers are collaborating to determine what's causing the collapse. American Honey Producers Association has even drawn attention to Varroa destructor mites, which is associated with deformed wing virus and acute bee paralysis virus.
00:03:47
Speaker
For more on these mites, check out our weekly newsletter.
Biofuel standard updates and optimism
00:03:50
Speaker
From tiny pollinators to political shifts, biofuels are seeing unity across industry groups. Biofuels industry groups are cautiously optimistic about the EPA's latest renewable fuel standard proposal, but they're actively dismissing rumors of lowered volume mandates.
00:04:07
Speaker
Last week, the EPA unveiled the proposed blending mandates under the Renewable Fuel Standards, RFS. These defined how much ethanol and biofuels refiners must use or else buy credits.
00:04:19
Speaker
Industry groups, including the Renewable Fuels Association, Clean Fuels Alliance America, Grow Energy, and even the American Petroleum Institute, are hailing the drafts as a step forward.
00:04:33
Speaker
Reports surfaced this spring suggesting biomass-based diesel mandates might be slashed to as low as 4.65 billion gallons. However, Paul Winters, public affairs director at Clean Fuels Alliance America, confirmed those numbers are inaccurate.
00:04:48
Speaker
The EPA has no intention of cutting below the 5.25 billion gallon threshold advocated by industry groups. That assurance has industry leaders breathing easier. Even more notable, this is a rare moment of unity. know Oil refiners and biofuel producers are on the same page.
00:05:04
Speaker
The substance behind this unity? A push for higher mandates in 2026. Roughly 4.75 to 5.5 billion gallons of biomass-based diesel and more than 15 billion gallons of corn-based ethanol, helping stabilize both ag markets and biofuel production.
00:05:23
Speaker
This follows a precedent set when EPA increased RFS volumes annually from 20.94 billion gallons in 2023 to 22.33 billion in 2025.
00:05:35
Speaker
Now, with draft targets for 2026 in sight, industry groups are urging the EPA to maintain upward momentum. According to EPA data, setting clear consistent biofuel targets could reduce emissions equivalent to removing tens of millions of cars from the road.
00:05:50
Speaker
For consumers, this means continued access to low-carbon fuel options like E15 ethanol blends and B20 biodiesel without facing sudden price spikes.
00:06:01
Speaker
And for agriculture, it preserves a vital domestic market for soybeans and corn.
U.S. demand for Mexican avocados
00:06:06
Speaker
While the biofuels world debates gallons, another green commodity is thriving on cross-border collaboration.
00:06:13
Speaker
When Mexican avocados hit the United States market back in 1997, lot of California producers were worried. Cheaper imports and year-round availability.
00:06:23
Speaker
It had all the makings for a threat to domestic producers. But fast forward nearly 30 years and the story looks very different. Instead of driving California growers out, Mexican imports have actually helped fuel demand.
00:06:36
Speaker
They've turned the avocado into a year-round staple, not just a seasonal luxury. That demand has been skyrocketing. Between 2000 and 2021, U.S. per capita avocado availability more than tripled to over 8 pounds a year.
00:06:52
Speaker
And according to the Haas Avocado Board, 60% of households are buying, but there's still room to grow, especially in the Northeast. That's why, even after losing part of his orchard in a 2024 wildfire, California grower Andreas Temporos is planting 300 trees.
00:07:09
Speaker
He says the market's too strong to walk away from, and he's not alone. Right now, avocados are seen as the most promising crop in California, especially as lemon growers face pressure from Argentina imports.
00:07:21
Speaker
According to the California Avocado Commission, The state grows about 10% of the avocados consumed in the United States and almost all of the country's domestic production.
00:07:32
Speaker
What makes this model work is that California fills the seasonal window from April through September and Mexico keeps the shelves stocked the rest of the year. It's a complementary relationship that's helped stabilize retail presence and drive long-term demand.
00:07:46
Speaker
And it's also an example of how global trade isn't always zero-sum in agriculture. With the right balance, imports can expand a market rather than undercut it. In this case, it has grown demand for both sides of the border.
00:07:59
Speaker
There are still risks, though. Wildfires, water access, and labor costs remain major hurdles. But with growers sold out of avocado saplings into 2026, it's clear this industry sees a long runway ahead.
John Deere's U.S. operations expansion
00:08:11
Speaker
While avocado demands keep climbing, another ag icon is clearing the headlines. If you saw headlines last week claiming John Deere is shutting down U.S. manufacturing, let's set the record straight right now.
00:08:24
Speaker
It's completely false. Yep. An article made the rounds last week titled, John Deere freezes U.S. manufacturing and unprecedented shutdown, and even popped up on Google News via MSN.
00:08:38
Speaker
But the company's response, crystal clear. In their words, quote, we're not shutting down U.S. manufacturing. In fact, it's quite the opposite. Let's talk the facts. John Deere currently operates 60 manufacturing facilities across 16-plus U.S. states and employs over 30,000 American workers.
00:08:57
Speaker
And get this, they've committed to investing $20 billion dollars into their U.S. footprint over the next decade, including expansions in Iowa, Missouri, North Carolina, and Tennessee.
00:09:09
Speaker
So where did the shutdown story come from? Basically, misinformation clickbait. The original article's already been pulled, but not before it spread confusion in ag circles.
00:09:20
Speaker
To be fair, Deere, like many other manufacturers, has made some strategic layoffs over the past 18 months and slowed production in certain Iowa plants to due to softer demand. But that's a far cry from abandoning American manufacturing.
00:09:33
Speaker
And this is not unique to Deere. AGCO CNH have also made cuts recently, navigating the same tough global machinery and market. But when it comes to North America-based production, Deere remains at the top, with 83% of its U.S. relevant machines are built in North America.
00:09:51
Speaker
So, while the farm equipment economy is shifting, let's be clear, John Deere isn't going anywhere. The factories are open, the investment is growing, and the rumor... The myth is officially busted.
00:10:02
Speaker
You know, Savannah, I need to look up on streaming where I can find Mythbusters. This just reminded me of wanting to watch that show again. Go do that now because we that's another episode of Magnetic Ag, Ears Edition.
00:10:17
Speaker
Hungry for more? Subscribe to our twice weekly newsletter for more industry news right in your inbox. Or follow along on socials at magnetic.ag for more trends and headlines.
00:10:29
Speaker
Thanks for listening to Magnetic Ag, Ears Edition.