Fountain Report Excerpts February 21, 2023

Fountain Report Excerpts
  1. Zoetis reported fourth quarter revenue of $2 billion, up 4%. Net income of $461 million, or 99 cents a share, was up 11% and 14% respectively. Full-year revenue of $8 billion was up 4%. Full-year net income of $2.1 billion, or $4.49 a share, was up 4% and 5% respectively. For 2023, the company expects revenue between $8.575 billion and $8.725 billion (operational growth of 6%-8%) and reported net income between $2.345 billion and $2.4 billion.
  1. The USDA’s Animal and Plant Health Inspection Service has purchased diagnostic tests for African swine fever and foot and mouth disease. The purchases were made possible through funding from the 2018 farm bill establishing the National Animal Vaccine and Veterinary Countermeasures Bank. APHIS has purchased kits for about $519,000 to bank in case of an outbreak of ASF or FMD in the United States, Mike Stepien, APHIS spokesperson, told Agri-Pulse.
  1. AgWeb shares four headwinds facing the cattle industry this year: 1) Culling rates, which were elevated last year, will likely stay higher than normal for two more years, according to a Rabobank analyst. 2) Beef cow inventory, down 4% as of January 1, has reached its lowest point since 1962 with few signs of expansion. 3) Spring forecasts don’t call for major improvements in precipitation in the Central and Southern Plains, although summer forecasts are more positive. 4) One positive side effect of the drought could be tighter calf supplies and higher prices.

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