But that's a nice big jumbo lobster. Hey, by the way, this price is the same as last year. And then here's another good one.Hey, Matt, this might >> Okay, that's a big tomahawk steak right now. These >> that's our ranchers come back from the Midwest. Uh uh and this is what they want is a tomahawk steak.>> And you know what. Here's a couple things that went down. Obviously, eggs are down about a dollar a dozen right now.Another thing that's down, huge amount of butters being used today and tomorrow uh in the ...

The study was published yesterday in the pediatrics journal and revealed a 36% drop in all food allergies in children under three years old from 2017 to 2020. Experts say the drop was thanks in part to national guidelines that were formally recommended in 2017. Those guidelines help parents safely introduce potential allergens like peanuts and eggs before children turn. ...

Core Viewpoint - The article discusses the tax exemption policies for agricultural wholesale markets and farmers' markets, specifically the exemption from property tax and urban land use tax until December 31, 2027, to promote rural specialty industries and facilitate agricultural product circulation [3][7]. Tax Exemption for Property Tax - Agricultural wholesale markets and farmers' markets that are used exclusively for agricultural product operations will be exempt from property tax until December 31, 2027 [3]. - For markets that also deal in other products, the property tax exemption will be determined based on the proportion of space used for agricultural transactions [3][5]. Tax Exemption for Urban Land Use Tax - Similar to property tax, agricultural wholesale markets and farmers' markets will be exempt from urban land use tax until December 31, 2027, provided the land is used solely for agricultural operations [7]. - For markets that operate with other products, the exemption will also be calculated based on the proportion of land used for agricultural transactions [7][8]. Eligibility Criteria - Agricultural wholesale markets and farmers' markets must be registered as operating entities and serve as venues for the wholesale or retail trading of agricultural products and their initial processed goods [5][8]. - Properties and land that are directly used for agricultural transactions are eligible for tax exemptions, while administrative offices, living areas, and commercial spaces not directly related to agricultural transactions are not eligible [5][8]. Policy Basis - The tax exemption policies are based on several official notifications and announcements from the Ministry of Finance and the State Administration of Taxation, including documents from 2019, 2022, and 2023 [10][11].

Product Recall - Country Eggs, a supplier in California, issued a recall due to salmonella contamination [1] - Nearly 100 people became sick after consuming the contaminated eggs [1] - 18 people have been hospitalized across 14 states [1] Investigation and Production Halt - Country Eggs has ceased production of the affected products [1] - The FDA is currently conducting an investigation into the contamination [1]

Cost Analysis - A kitchen consumes 240 eggs per night [1] - Egg prices are near record highs [1] Industry Trend - Omelets represent a trend of quiet luxury [1]

Industry Overview - The Zacks Agriculture - Products industry is facing challenges due to lower commodity prices, high input costs, and labor shortages, but increasing consumer awareness regarding food ingredients and healthier alternatives is expected to support growth [1][4] - The industry includes companies involved in storing agricultural commodities, distributing ingredients, and farming crops, livestock, and poultry products [3] Current Trends - Agricultural commodity prices are under pressure from ample supply, while rising labor, packaging, and distribution costs are impacting profitability [4] - Global food demand is projected to increase by 50% by 2050 due to population growth, with the global population expected to reach 9.6 billion [5] - Hydroponics and vertical farming are emerging as key agricultural technologies, with hydroponic equipment sales projected to reach $67 billion by 2033, growing at a CAGR of 16.2% [6] Company Insights - **Bunge Global S.A.** is focusing on strategic mergers, including a $34 billion merger with Viterra Ltd, to enhance its position in grain exports and oilseed processing [18][19] - **CalMaine Foods** is expanding its cage-free operations and product portfolio, with a projected earnings growth of 299.5% for fiscal 2025 [22][23] - **Hydrofarm** is streamlining operations and focusing on proprietary brands, with a significant increase in the sales mix of proprietary brands to 55% in Q1 2025 [26][27] Market Performance - The Zacks Agriculture - Products industry has underperformed compared to the Basic Materials sector and the S&P 500, with a 12.9% decline over the past 12 months [9] - The industry is currently trading at an EV/EBITDA ratio of 5.98X, significantly lower than the S&P 500's 17.51X [12][17]

Core Insights - A nationwide egg shortage is prompting individuals to sell their home-raised chicken eggs on platforms like Facebook, as retail prices continue to rise and store shelves remain less stocked than usual [1][2] - The surge in inquiries for chicken rentals has increased by 500% for companies like Rent The Chicken, indicating a growing trend of people raising their own chickens to mitigate the shortage [3] - The U.S. Department of Agriculture forecasts that retail egg prices will rise by 41.1% in 2025, following a significant increase of 15.2% in January 2023, marking the largest rise since June 2015 [4][5] Industry Impact - The egg price surge has led some restaurants to implement temporary menu surcharges to offset increased costs, reflecting the strain on their already thin profit margins [6] - Grocery stores are responding to the shortage by imposing purchasing limits on eggs, with retailers like Whole Foods and Kroger restricting customers to a certain number of cartons per purchase [7]

Financial Data and Key Metrics Changes - For Q1 fiscal 2025, consolidated net sales were $2 billion, and adjusted EBITDA was $370 million. Including acquisitions, net sales were flat compared to the prior year, while excluding acquisitions, sales decreased by 2% due to lower overall volumes in retail businesses [17][18] - Adjusted EBITDA for the Nutrish segment increased by 8% year-over-year, driven by strong manufacturing and supply chain cost performance [18] - Foodservice net sales increased by 9%, with volumes up by 3%, reflecting favorable volumes and elevated avian influenza-driven pricing [18] - Refrigerated retail net sales decreased by 5%, with volumes down by 4%, primarily due to declines in side dish, egg, and cheese products [19] Business Line Data and Key Metrics Changes - The cereal category saw a volume decline of 3.2%, slightly more than planned, while the pet category consumption was down approximately 1%, with the portfolio declining by 5% [9][10] - The Weetabix segment experienced a 1% decrease in net sales, with a 12% decline in volumes, although the core Weetabix product saw a 3.6% increase [14][20] - The foodservice segment had strong performance driven by volume growth in egg and potato products, with higher value-added eggs leading the way at a 5% increase [11] Market Data and Key Metrics Changes - The overall share in the cereal category remained flat at 22%, while the pet category's overall share decreased slightly [9][10] - The company estimates a cost headwind in Q2 of $30 million to $50 million compared to Q1 results due to avian influenza impacts [12] Company Strategy and Development Direction - The company is focusing on innovation in the pet segment, particularly with the relaunch of Nutrish and new product launches in Nature's Recipe and Kibbles and Bits [10] - Capital allocation has been focused on share repurchase, with over 4% of shares bought back while maintaining flat net leverage [15][16] - The company remains well-positioned to take advantage of opportunities arising from macro uncertainties, with a robust pipeline of potential M&A transactions [15][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains challenging, with continued pressure on consumers and uncertainty due to new administration policies [15] - The company expressed confidence in navigating the current landscape despite unprecedented market price volatility [12] - Management raised the bottom end of FY 2025 adjusted EBITDA guidance by $10 million to a range of $1.42 billion to $1.46 billion, reflecting strong Q1 performance [21][49] Other Important Information - The company generated $310 million from operations and approximately $170 million in free cash flow net of CapEx spend during Q1 [21] - The company repurchased 1.6 million shares at an average price of approximately $114 per share, with a total of 2.6 million shares repurchased since the beginning of the fiscal year [21] Q&A Session Summary Question: Potential for larger scale M&A deals - Management acknowledged the likelihood of increased M&A activity in the current valuation environment and stated that they are well-positioned to consider opportunities despite recent share repurchases [26][30] Question: Flexibility in optimizing the pet supply chain - Management indicated that while there are opportunities for optimization, the primary focus remains on actions taken to enhance profitability and capacity for higher-margin products [32] Question: Foodservice EBITDA drag and demand outlook - Management believes the recovery in foodservice is self-contained and not reliant on performance in other segments, with a focus on improving margins through labor efficiency [38] Question: Risks associated with avian influenza - Management highlighted that risks for Q2 are primarily due to market price volatility and the timing of pricing adjustments, with a focus on recovering supply [52][63] Question: Egg business and market volatility - Management expressed confidence in the long-term growth of the egg business despite recent volatility, emphasizing the importance of pricing models that mitigate risk [75][78] Question: Cereal category performance and innovation - Management acknowledged challenges in the cereal category but is exploring innovation opportunities to enhance growth and adapt to changing consumer preferences [81]