Google

Author Topic: Canadian Pork Producers:  (Read 193383 times)

0 Members and 1 Guest are viewing this topic.

mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Canadian Pork Producers:
« on: March 19, 2008, 12:16:57 PM »
China Offers Potential New Export Market for Canadian Pork Producers

Farmscape Article 2609  October 5, 2007

 

Canadian pork producers are looking to China in hopes of developing new markets for their product while helping to ease a shortage of pork in that nation.

 

China is by far the world’s largest producer of pork, accounting for approximately half of the world’s total pork output. However China also accounts for about half of the world’s total pork consumption and the demand for pork continues to rise as Chinese consumers gain affluence.

 

CPC Fact Finding Mission Travels to China

Last month a delegation of Canadian pork producers traveled to China as part of a Canadian Pork Council (CPC) fact finding mission, to take part in the World Pork Congress in Nanjing and to learn more about the Chinese market.

 

CPC executive director Martin Rice explains it was a mission to find out what would give rise to China becoming a larger importer of pork cuts from Canada and other countries and the possibility of China becoming a greater competitor in the world pork market.

 

“We learned a lot about what influences the Chinese market, what opportunities are there, their desire to move forward and to feed their own people,” recalls CPC president Clare Schlegel.

He observes the Canadian and Chinese markets are vastly different.

 

“Their taste preferences are different than ours. They tend to use the entire pig. Their pig production system is also quite different that ours. It’s still concentrated in backyards — producers with between one and ten pigs.”

 

Small Farms Account for Bulk of Chinese Pork Output

Florian Possberg, President and CEO of Humbolt, Saskatchewan-based Big Sky Farms and a CPC delegate, points out farms with one or two and, in most cases, less than ten hogs per farm per year account for roughly 60 percent of total pork output.

 

“Keeping in mind that China produces roughly 50 percent of all the hogs in the world, that means three hogs out of ten in all of the world are produced in the back yards of China.”

 

Chinese Government Seeks to Increase Scale of Production

The Chinese government is encouraging the industrialization of its agricultural base and larger scale production.

Saskatchewan Pork Development Board (Sask Pork) producer services manager Harvey Wagner observes they have a growing element of larger farms with 400 and up to fifteen-hundred sow farrow to finish operations. They are also developing a number of farrowing units to supply feeder pigs out into the country.

Wagner, who was in China last month as part of a Canada-China Agriculture Development Program project intended to improve hog production and food safety in China, says, “Mostly the idea is to improve productivity and to improve the genetic background of the pigs.”

 

Ability to Expand Hampered by Combination of Challenges

However, as China works to expand its pork production to meet a growing domestic demand for pork the industry faces a number of challenges. Wagner observes one of the challenges is the genetic background of the local pigs. “While fairly tasty they don’t grow as fast and their lean yield isn’t very high so they’re trying to improve them with the leaner genotypes.”

 

Rice adds that China’s pork industry has also been hurt by the increased feed costs that have been seen worldwide over the last year. Additionally, they have had to manage a rapid outbreak of PRRS (Porcine Reproductive and Respiratory Syndrome) which claimed up to 20 percent of the Chinese pig population and resulted in pork prices that are roughly double those of one year ago.

 

Pork a Key Component of Chinese Food Basket

Schlegel points out, “In China, pork is 15 percent of their food basket. It’s very, very important. It’s one of nine different items that they actually look at as supporting national security so they are very concerned right now as pig prices and pork prices are relatively high for their consumers.”

 

Claude Vielfaure of La Broquerie, Manitoba-based Hytek Limited and a director with Manitoba Pork Council observes, “The amount of pork that is eaten in China is fairly amazing. Of the total meat consumption in China per capita, 65 percent of it is pork. And right now there’s a shortage of meat in China so there’s a big push to be able to get more meat in order to feed the people.”

 

China Targets Increased Meat Consumption

Schlegel notes the Chinese government is hoping to increase consumption of meat by its citizens by 30 grams a day and, if successful, that will obviously create tremendous demand for pork, for chicken and for other meats.

 

Possberg estimates that in the next ten years China will consume an extra 130 million hogs per year. He doubts whether they can produce that much more pork in an already concentrated industry in China. “That’s obviously a great opportunity for the rest of the world and we believe Canada can be a significant part of supplying that extra pork meat to Chinese consumers.”

He observes, “Chinese consumers are gaining in affluence and we could see it everywhere. There is construction everywhere. They’re building roads, factories and apartments and their rural economy is evolving as they become an industrial giant for all sectors of our industrial world. These people are going to consume more meat and pork is by far the largest segment of the meat industry in China.”

 

Short Term Opportunities Appealing

According to Rice some imports have already started to be contracted for. Although there has been no confirmation, some estimates indicate China will require as much as 400 thousand tonnes of pork within the next year or so.

 

“The short term would suggest there’s a good likelihood of some additional imports and not just imports of the usual product we sell to China which are organ meats such as kidneys and stomachs etcetera. They are looking at bringing in cuts of pork to supplement their domestic supply.”

 

Rice acknowledges China is expected to get its domestic production back up again. “We are not so convinced there will be a large import demand for pork to China after this period of high pork prices is overcome. But, looking at it in the longer run, we would definitely see opportunities for China, say five to ten years from now, to start becoming a more regular and larger pork importer.”

 

China Committed to Meeting Domestic Pork Demand

Schlegel concedes, “China is committed to feeding its own people so it may never be an extremely large market. But there is still a significant opportunity there, particularly for some of the cuts and some of the parts of the pig that we do not eat in Canada and North America, and there is a growing opportunity in the high end to for muscle cuts particularly in the bigger cities.”

 

“They are our fourth or fifth largest market at this point time and we certainly would like to increase that depending on their particular situation and demand."

 

Staff Farmscape.Ca


mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #1 on: March 19, 2008, 12:20:53 PM »
The Philippines should try and get a piece of the action,pork exports to China.Looks like everyone is craving a piece of the pie for themselves.China is fairly close.Would be nice to be able to export to the Chinese.


mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #2 on: March 27, 2008, 05:34:47 AM »
Where Will the Meat Come from in 2030
CANADA - The world’s population is increasing by 78 million each year, and by 2030, more than eight billion people will inhabit the Earth.



According to the United Nations, global agricultural capacity will be straining to feed this many inhabitants – and the problem will worsen as the world’s population reaches 10 billion by 2035.

A recent publication by the Canadian Cattlemen's Association claims there are three issues need to be addressed in conjunction with this expected increase in global population levels: protein consumption, the global supply of food and food safety. The consumption of protein is increasing rapidly in the developing world and within 10 years, the world will add one billion consumers of meat and meat products in countries such as China and India as well as other “emerging” nations.

Annual gains in the global food supply have recently declined from three to one percent. Increasing the global supply of food through the expansion of the cultivated land base may not be feasible – and could create environmental havoc in many regions of the world. A new “green revolution” is unlikely to solve the world’s food supply problems because additional production gains through chemistry or mechanization are forecast to be relatively small.

Food safety is an important international concern and most of the world has focussed its attention on livestock. The World Bank predicts that demand for animal products will double within 20 years – and developing countries will supply most of what is required. However, only about 20 percent of the countries of the world have the ability to respond effectively to health crises caused by animal disease. The Food and Agriculture Organization says that in a world without the capacity to deal with diseases in livestock destined for human consumption, a major crisis could occur within 10 years. With these three scenarios unfolding, what are the implications for Canada, a country that provides the world with over $24 billion in agricultural and food products each year?

Wheat, barley and livestock make up a large proportion of Canada’s agricultural and food exports. With its sizable land base and its high level of agricultural productivity, Canada has a competitive advantage over most other nations that produce and export agricultural products. Canadian producers, however, depend on substantial investments in research and development (R&D) in order to stay competitive. When the Canadian public invests in agricultural R&D, it receives a good return on its investment. Proof of that benefit is reflected in the growth in agricultural productivity over the last 40 years – with the agricultural sector outperforming both the manufacturing and business sectors of the Canadian economy.

Hard to Sustain
Recently, however, Canadian livestock producers have found it more and more difficult to sustain a competitive advantage over global competitors. One issue is the rapid increase in the cost of feed grains due to the recent development of the US and Canadian bioethanol sector. Senior research analysts at the George Morris Centre have warned that the Canadian plan for the development of bioethanol runs contrary to other agricultural initiatives and will not be positive for agriculture.

Canada has positioned itself as a meat exporting country. Converting Canadian feed grains into bioethanol instead of into meat and livestock makes little economic sense – especially when an increasing prosperous world can afford to pay higher prices for meat protein. In addition, this strategic adjustment is taking place at a time when Canada’s livestock producers are least able to adapt to change.

There is an opportunity for Canadian livestock producers to take advantage of the growth in global population levels, a tightening global food supply and an increasing demand for animal protein from emerging nations. In addition, Canadian livestock producers can meet these needs within a production system with high standards for food safety and the ability to respond quickly and effectively to livestock health emergencies.

Because this project is driven by developments in the manufacture of bioethanol from small grains, Strategic Vision Consulting Ltd. (SVC) has focussed on the development of wheat and barley as feed grains in western Canada. Forage issues, on the other hand, have a national focus.
 

Further Reading
 -

mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #3 on: March 27, 2008, 05:41:31 AM »
Where Will the Meat Come from in 2030
CANADA - The world’s population is increasing by 78 million each year, and by 2030, more than eight billion people will inhabit the Earth.



According to the United Nations, global agricultural capacity will be straining to feed this many inhabitants – and the problem will worsen as the world’s population reaches 10 billion by 2035.

A recent publication by the Canadian Cattlemen's Association claims there are three issues need to be addressed in conjunction with this expected increase in global population levels: protein consumption, the global supply of food and food safety. The consumption of protein is increasing rapidly in the developing world and within 10 years, the world will add one billion consumers of meat and meat products in countries such as China and India as well as other “emerging” nations.

Annual gains in the global food supply have recently declined from three to one percent. Increasing the global supply of food through the expansion of the cultivated land base may not be feasible – and could create environmental havoc in many regions of the world. A new “green revolution” is unlikely to solve the world’s food supply problems because additional production gains through chemistry or mechanization are forecast to be relatively small.

Food safety is an important international concern and most of the world has focussed its attention on livestock. The World Bank predicts that demand for animal products will double within 20 years – and developing countries will supply most of what is required. However, only about 20 percent of the countries of the world have the ability to respond effectively to health crises caused by animal disease. The Food and Agriculture Organization says that in a world without the capacity to deal with diseases in livestock destined for human consumption, a major crisis could occur within 10 years. With these three scenarios unfolding, what are the implications for Canada, a country that provides the world with over $24 billion in agricultural and food products each year?

Wheat, barley and livestock make up a large proportion of Canada’s agricultural and food exports. With its sizable land base and its high level of agricultural productivity, Canada has a competitive advantage over most other nations that produce and export agricultural products. Canadian producers, however, depend on substantial investments in research and development (R&D) in order to stay competitive. When the Canadian public invests in agricultural R&D, it receives a good return on its investment. Proof of that benefit is reflected in the growth in agricultural productivity over the last 40 years – with the agricultural sector outperforming both the manufacturing and business sectors of the Canadian economy.

Hard to Sustain
Recently, however, Canadian livestock producers have found it more and more difficult to sustain a competitive advantage over global competitors. One issue is the rapid increase in the cost of feed grains due to the recent development of the US and Canadian bioethanol sector. Senior research analysts at the George Morris Centre have warned that the Canadian plan for the development of bioethanol runs contrary to other agricultural initiatives and will not be positive for agriculture.

Canada has positioned itself as a meat exporting country. Converting Canadian feed grains into bioethanol instead of into meat and livestock makes little economic sense – especially when an increasing prosperous world can afford to pay higher prices for meat protein. In addition, this strategic adjustment is taking place at a time when Canada’s livestock producers are least able to adapt to change.

There is an opportunity for Canadian livestock producers to take advantage of the growth in global population levels, a tightening global food supply and an increasing demand for animal protein from emerging nations. In addition, Canadian livestock producers can meet these needs within a production system with high standards for food safety and the ability to respond quickly and effectively to livestock health emergencies.

Because this project is driven by developments in the manufacture of bioethanol from small grains, Strategic Vision Consulting Ltd. (SVC) has focussed on the development of wheat and barley as feed grains in western Canada. Forage issues, on the other hand, have a national focus.
 



mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #4 on: March 27, 2008, 09:38:59 AM »
Canadian Hog Statistics - February 2008
By Statistics Canada. Canadian hog inventories plunged during 2007 as a strong dollar and high feed costs challenged producers.


Hog Inventories: 1 January 2008
Hog industry under financial strain

 
According to the 2008 January Livestock Survey, there were 14.0 million hogs on farms at the first of the month, 897,000 fewer than the same date last year. This is down 6.0 per cent from the previous year and 2.4 per cent lower than October 1, 2007.

Prices for slaughter and export hogs, largely determined in the United States and adversely influenced by a strengthening Canadian dollar, weakened during the second half of the year. Although variable, feed grain prices have surged over 50 per cent in 2007.

The financial pressure on hog producers can be highlighted by examining the results of a calculation that divides the hog price by a feed cost. The higher the ratio, the better the situation is for hog producers. By November 2007, the Ontario hog-corn ratio was 9.9, well down from 22.4 the previous year and considerably lower than the 10-year average of 20.8. The hog-barley ratio in Alberta showed a similar plunge.

Hog inventories trend down
thousands of head
Farmers continued to export hogs to United States at a record pace, 9.9 million during 2007. This surpassed the previous record established in 2006. Over two-thirds of exported animals were younger hogs, called weaners, for feeding in the United States. As feeding costs are increasing, the weaner export market remains relatively attractive to Canadian farrowing producers.

Domestic slaughter has continued to decline after reaching a record high in 2004, consistent with soft domestic demand for pork, lower prices paid to producers and higher feeding costs. Hog slaughter dropped 2.4 per cent between 2006 and 2007.


Livestock statistics and Concepts
Concepts

Inventory levels of the various types of livestock intended for sale in Canada are measured at specific times throughout the year. Surveyed operations are requested to include all animals located on the farming operation, regardless of ownership. They are also asked to include animals owned but pastured on a community pasture, grazing co-op or public land. Producers are asked to exclude animals owned but kept on a farm, ranch or feedlot operated by someone else. Inventory levels are estimated for cattle, calves, pigs, sheep and lambs. Estimates are also produced for certain categories of animals on the basis of age, sex, weight and/or purpose i.e. breeding or slaughter.

Current information on livestock inventories and related statistics such as supply and disposition enable those active in the agricultural sector to observe and assess changes in the industry, measure performance and keep the agricultural community and general public informed of developments. The primary data users are federal and provincial governments, producer boards, farmers and farm organizations, private business, academic research institutions and students. Livestock data assists governments in formulating agricultural policies and developing programs. Farming organizations use statistics in developing recommendations for producers and governments. Farmers make increasing use of prices, production, and marketing statistics in planning their operations. In addition, these livestock statistics are used in the calculation of farm incomes and in the Canadian System of National Accounts for indicators such as gross domestic product.

Methods
To produce livestock estimates, there are actually 6 different survey occasions. All of the survey occasions collect data primarily using Computer Assisted Telephone Interviews (CATI) although there are special procedures in place for the very large or complex operations.

Two of the occasions are the January Livestock Survey and the July Livestock Survey. These are large-scale general livestock surveys collecting data on cattle, hogs, sheep and other livestock, referring to inventories at the 1st of the month. The probability samples include about 10,000 operations at 1 January, and about 18,000 operations at 1 July. These surveys collect data during a three-week period in the western provinces, Ontario and Quebec. Regardless of when operators respond, they are asked to report inventories as of 1 January or 1 July. The livestock survey results are released, following processing and analysis, approximately seven weeks after the reference date.

Hog inventories are the focus of two other survey occasions collecting estimates of pig numbers at 1 April and 1 October. This survey was initiated in 1998 as estimates from 1978 to 1997 were based solely on analytical tools. For the hog surveys, a sub-sample of the prior livestock survey is used. The probability samples are 2,500 at 1 April and 1 October and, similar to the livestock surveys, these CATI surveys cover the western provinces, Ontario and Quebec. Producers are requested to report their inventories as of the reference date, although the data are collected during a seven day period near or before that date. The hog survey results are normally released three to four weeks after the reference date.

The June and November Atlantic Surveys are used to produce estimates for that region. These surveys are multi-purpose collecting data, primarily inventories, on livestock including cattle, hogs and sheep in addition to collecting data related to the area, yield and production of the principal field crops. The probability samples are 1,300 in June and 2,200 in November with the data collected by telephone. The results are released at the same time as the livestock results. For reference points where surveys do not exist for the Atlantic region, analytical tools are used to produce the estimates.

Recently a new piece of information has been added to the cattle statistics allowing users a better understanding of the cattle industry. In essence, the total inventories are distributed, on the basis of survey results and sector level balance sheets, to a specific farm type. The two major categories are dairy and beef. The beef sector is then broken down to beef cattle on cow/calf and mixed beef and dairy operations; beef cattle on feeder, stocker/finish operations; and, beef cattle on feeding operations, which include feedlots.

To summarize, the livestock statistics are survey-based estimates. The survey relies on a list frame that is established every five years by the Census of Agriculture and updated to include new entrants, particularly large hog operations. The probability sample surveys are conducted by telephone. The survey results are analysed and corrected before the data are used to analyse the industry and fine-tune the estimates. The survey data are reviewed in a board environment before the commodity analyst works with the data primarily using supplydisposition analysis. The results of the industry analysis are reviewed by the board before being sent to the individual provinces. Once the data are finalised they are released to the public and published. The principal data released include inventories and summarized supply-disposition tables. The data also flow, via farm income estimates, to the Canadian System of National Accounts. In addition the data are used in the calculation of net farm income projections, produced by Agriculture and Agri-Food Canada in co-operation with Statistics Canada and the provinces.


mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #5 on: March 27, 2008, 09:46:52 AM »
Canada Sending Record Number of Hogs   
  Compiled By Staff   
  February 18, 2008   
 
 
  U.S. hog processors and feeders are seeing very heavy imports of hogs and feeder pigs from Canada. Department of Agriculture Outlook Board Chairman Gerry Bange says the amount of imports is high enough to have an impact on U.S. pork production numbers and prices.

"We're expecting about 10.8 million of those animals to come in this year, which would be a record number," Bange says. "Evidently the slaughter plants in Canada are having various difficulties associated with labor and inefficiencies because of the smaller size of their plants."

Profits for Canadian hog producers are getting smaller due to the fact they have to import more high-cost feed from the U.S., so Bange says we're seeing a lot of those animals coming to the United States, which is resulting in a bigger pork production number for the U.S.

USDA estimates U.S. pork output is 5% more than 2007 and Canadian hog inventory is 6% less than last year.

   

mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #6 on: March 27, 2008, 10:00:14 AM »
Pork Commentary: Is There Any Relief in Sight!
CANADA - The cash market remains dismal, writes Jim Long, President and CEO, Genesus Inc. Last Friday Iowa-Minnesota averaged 49.53 lean. With breakevens around $75.00 that works out to a $50.00 a head loss. With the Canada-USA slaughter hovering around 2.7 million head a week it translates industry wide into an equity evaporation of about $130 million a week.

 

Unfortunately, it seems money is disappearing faster than it ever came in. The only relief in sight is with lean hog futures which closed last Friday April 55.02, May 65.65, June 70.12. June futures show a $40 a head improvement but it has been a reality since last summer.

120 day out lean hog futures have indicated higher cash prices than what we have experienced during the actual marketing period. At some point this trend will reverse but it's the billion dollar question when.

Other Observations
Easter is upon us. Hams are 41¢ lb wholesale. Some retail stores are featuring ham at $1.49 lb. One store we were in advertised that $1.49 was a $1.50 lb saving from regular price. Good to see someone is making money. Ham is very inexpensive meat protein and hopefully this can increase demand.


Last week we talked to a company that manufactures plastic farrowing and nursery floors. Up until January they were quoting several new so-farrowing barns. Since then phones have gone dead. We expect most, if not all, contemplated new sow units in 2008 will not be built. It takes a ton of capital and courage to build now. Few, if any, have that right now. We also expect most contemplating expansion will look to buy existing units.


Question is who will buy units. Most in the industry are getting pounded by these prices. In the last two cycle lows a large segment of production had price and cost protection with packers, feed companies, etc. This time we see little of this type of risk management. The pain is getting directly to the producer. The only risk-limiting program is those growing their own feed which is still a significant portion of the industry (20-25%) but even that leads to opportunity loss. We are of the opinion that economic circumstances are cutting the sow herd. Many barns will have lower sow numbers as gilts are not entered. There are also producers exiting. When few, if any, new barns are being built, the net effect of entry-exit will be significantly less. Obviously the marketplace cannot handle the number of hogs we are producing and give our industry a profit. The only solution is less hogs. The pain to get to that profit is heart-wrenching.


Are we staring to pull weights down? Latest Iowa-Minnesota weights were 267.5 lbs. At the first of year 271.2. Short-term it will put more pork in the food chain, as we pull hogs ahead. At some point though, it will mean less pork which is positive for prices. You only kill them once.


Packers are doing okay. The spread between carcass and cut-outs is 7¢. They are making money but not getting rich. Give them credit. They are getting them dead and moving the pork. One of North America's greatest assets in the pork industry is the scale, efficiency, capital wherewithal and aggressiveness of our packers. A week ago we had Russian visitors in a new large plant. They marveled at the speed and scale of 3 seconds a hog. Packers like this are a big reason when the dust settles in the global market meat protein shake out; we are poised to capture more world market shares.


Bear Stearns was the 5th largest US investment bank a week ago. Its stock was $70.00 a share. It was announced now that JP Morgan Chase will buy Bear Stearns for $1.00 a share, a $7 billion write down. A run on the bank loans that were in the US housing market are blamed. Just as in 1998 no one could have predicted the loss of control of Murphy Farms, Carroll Foods, etc by their original owners. We are in trying times. No one knows the future. Who survives the pork industry meltdown? Stay tuned.
"Courage is not the absence of fear but rather the judgment that something else is more important than fear." -- Ambrose Redmoon


mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #7 on: March 27, 2008, 10:09:08 AM »
When Every Penny Counts" Scheduled for Alberta and Saskatchewan
CANADA - The Prairie Swine Centre is encouraging hog producers to consider adjusting their market weight targets as one way to maximize feed efficiency during a time of high feed costs and low hog prices, writes Bruce Cochrane.





Farm-Scape is sponsored by
Manitoba Pork Council and Sask Pork

Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 
The role of market weights in the profitability of hog production will be one of several areas examined, when the Prairie Swine Centre takes its "When Every Penny Counts" seminar series to Alberta and Saskatchewan.

The sessions look at animal nutrition, facilities engineering and design and energy consumption reduction strategies developed by the Prairie Swine Centre to help reduce pork production costs without spending additional dollars.

Centre President and CEO Dr. John Patience notes feed accounts for 50 to 75 percent of the cost of producing pork and, when hog prices and low and feed costs high, the ideal target market weight will be different than when feed is inexpensive and hog prices are strong.


Dr. John Patience-Prairie Swine Centre
The optimum weight that a producer would be aiming for will vary from farm to farm because different genetics will respond to market weight differently that other genetics.

That's number one.

Number two is as you can appreciate, when we go from a situation of a couple of years ago where market prices were relatively high and feed costs were very low, that would dictate that we probably feed our pigs to a heavier weight.

Where as right now, where market prices are very low and feed costs are very high, putting that extra weight on a pig is going to be very expensive.

That would probably suggest that we should be aiming for a much lighter pig.

In the case of our own operation, approximately a year ago, we were aiming for about a 97 kilogram carcass.

Then last fall we dropped that down to a 94 kilogram carcass.

At the first of the year we dropped it even further to about a 92 kilogram carcass all the while because the relationship between feed cost and market price has changed."



mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #8 on: March 27, 2008, 10:16:21 AM »
GM Livestock - A Market Reality and an Advantage
ONTARIO - Behind locked doors, past a shower, where humans are required to rinse, more than 25 pink pigs crowd into hay-covered pens at the University of Guelph in Ontario, Canada. They look like regular Yorkshire pigs, however, these pigs have been modified to carry a gene from an innocuous strain of E. coli that has been spliced with a protein from a mouse, writes Rebecca Clarren.


This added gene enables the animals to produce the enzyme phytase in their saliva. An enzyme that Guelph researchers, could solve one of the major environmental problems associated with industrial pig farms. Trademarked the 'Enviropig', these genetically modified pigs produce 60 percent less phosphorus in their manure than their conventional cousins.

Normal pigs can't break down phytate, a phosphorus-rich compound in their gut, explains a report on Salon.com. And, when manure lagoons on hog factories overflow or breach into nearby rivers or seep into groundwater, the high phosphorus content creates algae blooms, killing fish and other marine life.

Although these pigs been raised at Guelph for seven years, they haven't made it out of the lab. American and Canadian regulatory agencies have no regulations governing the keeping or management of genetically engineered animals'in the marketplace. However, a landmark law recently passed by the US Food and Drug Administration, means these little piggies may soon be headed to market.

Safety Endorsed
In January, the FDA declared that cloned animals and their progeny were safe to eat and it opened the door to genetic engineering.

"In my opinion, the FDA approved animal cloning only to open the door to genetic engineering of animals," said Jaydee Hanson of the Center for Food Safety, a Washington, DC, group.

The FDA reached the decision after reviewing hundreds of scientific studies that found no significant nutritional or toxicological differences in the composition of the meat or milk of cloned cows, pigs and goats from those of their more traditional brethren.

The decision is regarded as the first step to the regulation and commercialization of genetically engineered animals. It has critics but it also has supported, says the report.



mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #9 on: March 27, 2008, 10:27:21 AM »
Imports: Last year, according to data from the Philippine Bureau of Animal Industry (BAI), total pork imports increased by 43 per cent, mostly composed of pork rinds or skin and pork fats used by the meat processing industry. The Philippines imported about 32 per cent of its pork requirement from Canada and about 16 per cent from Germany. The United States supplied a little over 13 per cent (10,351 MT), mostly pork offals, fats and other unspecified pork cuts.

mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #10 on: April 11, 2008, 08:30:58 AM »
Thursday, April 10, 2008Print This Page
Cull Program Applications to be Available Monday
CANADA - Applications for the federal government's 50 million dollar Cull Breeding Swine Program will be made available beginning Monday, writes Bruce Cochrane.





Farm-Scape is sponsored by
Manitoba Pork Council and Sask Pork

Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 
The Cull Breeding Swine Program was set up to reduce the national breeding herd to help deal with the economic hardship faced by Canadian swine producers as the result of low hog prices, escalating feed costs and the impact of the strong Canadian dollar.

To qualify producers must agree to depopulate at least one breeding barn and leave that barn empty of breeding stock for a minimum of three years.

Saskatchewan Pork development Board policy analyst Mark Ferguson says, at this point, it's unclear how strong the demand will be so producers should apply as early as possible.


Mark Ferguson-Saskatchewan Pork development Board
The federal government put a limit of 50 million dollars on the funding available for the program and, once that runs out, we've had the indication that there won't be anything else so the program is essentially on a first come first served basis and on Monday the 14 when the applications are available we would stress that producers get those applications in as soon as they can and we'll do our best to send them out to producers as soon as we have them.

We believe there'll be quite a few sows that will be part of the program that have already been marketed prior to the 14th of April but going forward we're just not sure.

The situation is changing daily given the market conditions.

And it just depends on what happens in the next month with prices and feed costs.

That will determine how many producers we have.

Ferguson notes Sask Pork is working with several provincially inspected plants and the Canadian Pork Council to organize slaughter options.

He says the goal is to line up one or two central slaughter facilities and there's also the option of on-farm euthanization for some producers.

He says, once the disposal options have been determined they'll be communicated to participating producers.




mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #11 on: April 12, 2008, 08:08:27 AM »
Government Proposes New Feed Rules for Biofuel Grains
OTTAWA — The Government of Canada is working hard for farmers and continuously exploring new and innovative possibilities for our producers.



To this end, the Canadian Food Inspection Agency (CFIA) is inviting public comments on the use of grains from ethanol production as livestock feed.

"This Government is continuously exploring new and innovative possibilities for producers,” said Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board.

"We are working closely with industry stakeholders to determine the best way to use fuel ethanol distillers’ grains as an effective, safe feed ingredient."

The production of fuel ethanol from grain (biofuels) has increased dramatically in Canada in recent years. Distillers’ grains resulting from production of alcoholic beverages are already an approved protein feed in livestock rations.

However, the manufacturing processes for fuel ethanol can differ from those for potable alcohol. As a result, distillers’ grains from the production of fuel ethanol are not approved as a feed ingredient.

The CFIA has developed a draft policy with the input of all stakeholders and is welcoming comments on this document until 1 April.

It is expected that a final version of the policy document will be published by the CFIA in the fall of 2008.



mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #12 on: April 12, 2008, 08:11:16 AM »
Maple Leaf Closes Plant in Expansion Plans
TORONTO - Canadian pig meat processing company Maple Leaf Foods is to go ahead with its double-shift programme at the value-added cut operations at its Brandon, Manitoba pork processing plant.



Maple Leaf is investing approximately C$50 million to support the expansion, which will start in June and be completed in September.

The pork processing giant said it will be increasing production at the plant from 75,000 to 86,000 hogs per week by the end of 2009 to consolidate all of its primary pork processing in Brandon.

The Company is investing approximately C$25 million to expand its Lagimodiere Road plant in Winnipeg to consolidate its ham boning operations in western Canada in one dedicated facility.

By the end of 2009, Maple Leaf will create more than 1100 new jobs at these facilities, supported by an investment of over $120 million. These initiatives are critical milestones in implementing the Company's new protein business model, including consolidating its primary pork processing at one scale facility, and producing high quality fresh pork products to support growth in its value-added meats and meals businesses.

As a result of these expansions, the Company will close its fresh pork operation located on Warman Road in Winnipeg, which currently processes carcasses received from Brandon into value-added pork products.

Maple Leaf expects to close the Warman Road plant by the end of September 2008 as it completes the ramp-up of the value-added cut operations in Brandon. The Warman Road facility employs approximately 650 people, who will be encouraged to apply for new jobs at the Lagimodiere Road and Brandon facilities, and will be provided financial and outplacement services to ease their transition to new employment.

"Manitoba is a major growth centre for our value-added meat processing operations," said Rick Young, President, Maple Leaf Consumer Foods.

"Through our C$120 million investment in the province, we are establishing highly efficient scale plants that are globally competitive, securing a strong future for the Manitoba pork industry, and creating ongoing growth opportunities in our value-added meat and meals businesses. We sincerely regret the impact on our employees at Warman Road, and will proactively support them to secure new employment at other Maple Leaf plants or in the local economy."


mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #13 on: April 12, 2008, 08:15:34 AM »
Pork Commentary: Carnage Continues But Ethanol Ideal is Over
US - Last week Jim Long reported that Spectrum, a Manitoba feed/ 20,000-sow production operation and genetic supplier Danbred were in receivership. Another Western Canadian production system was also in trouble and this week comes the sad news that Stomp Farms, a 25,000-sow system in Saskatchewan is also facing bankruptcy.

 

There are reports of other losses and the situation is dire.

Genesus has also taken calls from several readers about the liquidation of a 30,000-sow pork powerhouse in the US. We do not want to mention names until we get facts, but last week, we a pork powerhouse lawyer did speak to us regarding our inference about pork powerhouses that were teetering. The lawyer, however, did assure us that their ownership says everything will be okay. Perhaps we should have asked the lawyer if he wanted us to report to everyone that they were going to be good.

We do not want anyone to be hurt as we respect every entrepreneur who has put it on the line. The facts are that the carnage is here and we all know our only salvation is a decrease in hog supply and we are not reveling in other’s misery.

Liquidation Summary
All indications are that Canada has and is in the process to remove 150,000 plus sows. The government sow kill will start soon. This will cut sow slaughter as program sows will be rendered. This should support sow price and maintain sow kill capacity for US liquidation. Our estimate:

Canada

Atlantic Canada -10,000
Quebec -30,000
Ontario -50,000
Manitoba -20,000
Saskatchewan -25,000
Alberta -30,000
Total -165,000
An idea to correct the marketplace would be for the government of Saskatchewan to pull the plug on Big Sky (50,000 sows) and take the sow buyout. The new Saskatchewan government has announced their intention to sell shares (they own 69 per cent). This new government was never part of this socialist approach to agriculture. They would do a great service to all producers in Saskatchewan and Canada to take the sow buyout and exit our industry. One million pigs out of production from a money losing disaster would be a good thing.

USA and others
For the United States our Guess on Liquidation is as follows:

Smithfield 50,000 sows announced
Hormel 9,000 sows announced
Powerhouse (A) 30,000 in liquidation
Others 70,000 sow inventories in herds and liquidation
Total estimate 159,000
Mexico is likely to see a decrease of small herds - a reduction of 10 per cent of production is 100,000 plus sows.

North American Summary
We come up with a total of over 400,000 sows being eliminated. This should equal 6 million market hogs plus in North America. Last week, Iowa-Minnesota’s price closed at 56.48. A year ago the price was about 58¢. We marketed 10 per cent more hogs last week compared to a year ago. We have tremendous pork demand. A small decrease in supply will increase prices rapidly.

Other News
Korea

We were with Korean producers this week. The price of market hogs in South Korea is $1.20 US liveweight lb. It was 90¢ lb and has increased rapidly in the last few weeks. Why? South Korea’s sow herd was just over 900,000. There are estimates that the herd has liquidated by 100,000 to 200,000 head. Breakevens are around $1.20 lb US liveweight. Corn is $10.50 US bushel. There is no government support for hog farmers. Producers tell us the South Korean government wants to lower hog production for environmental and economic reasons. We asked if they thought their price was going to go higher. They said no. Imports from USA and Canada will fill void. More markets for North American Pork and that supports our price.

Europe
Last week, the European hog price was about 90¢ US liveweight lb. North America’s 48¢ US liveweight lb. You’d like to think that we can compete in the world markets with that price difference. Europe’s price has gained $50 a head in the last ten weeks. Why? We have read official European reports that Europe had decreased their sow herd by 5% (750,000 sows) by January 2008 and was still decreasing. 90¢ US lb and $8.50 US bushel corn is about a breakeven in Europe. The price has increased rapidly in Europe because the hogs are not there. Supply and demand. There is no magic.

Conclusions
We believe the hog price has bottomed in North America. Demand is excellent relative to supply. In the coming weeks, lower global pork supply will push our prices higher. Recently, the total meat supply of pork, beef, chicken and turkey has been weekly, year over year, 100 million pounds plus more than a year ago. We expect this difference will decrease as poultry producers are now beginning to cut back. Beef supply will decline and believe it or not we expect pork supply to be less of a percentage difference increase year over year.

Expect in the coming weeks a rapid decline in weights, as slaughter decreases. We expect a minimum appreciation of $40 per head in market hog value over the next 8 weeks.

Ethanol Insanity
The corn ethanol insanity has ruthlessly hammered livestock producers around the world. Swine production is decreasing. Swine prices are increasing. On another positive note, Time Magazine’s cover story this past week was a picture of a corn cob wrapped in money with the title ‘The Clean Energy Myth’. Its over! Like the Dot Com boom, when Time Magazine gets on the story it’s the kiss of death. Food inflation and now environmentalists are saying corn ethanol does not make sense. This will give cover to the politicians to take away the corn ethanol subsidies, tariffs and delay or suspend mandated ethanol utilization. Dot Com’s, sub-prime mortgages, corn ethanol. List of temporary phenomenon finished by reality.


 

mikey

  • FARM MANAGER
  • Hero Member
  • *
  • Posts: 4232
    • View Profile
Re: Canadian Pork Producers:
« Reply #14 on: April 12, 2008, 09:40:56 AM »
Thursday, March 20, 2008Print This Page
A Science Based Approach Needed to Address Nutrient Loading
CANADA - Keystone Agricultural Producers is urging the Manitoba government to abandon its recently imposed moratoriums on swine barn expansion and adopt a science based approach to dealing with nutrient loading, writes Bruce Cochrane.





Farm-Scape is sponsored by
Manitoba Pork Council and Sask Pork

Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 
Following the release of the Manitoba Clean Environment Commission report on the environmental sustainability of the hog industry, the province imposed moratoriums on new or expanded hog barn construction in three regions.

Keystone Agricultural Producers, the Manitoba Chambers of Commerce and Manitoba Pork Council are partnering in an effort to have that decision reversed.

Although the CEC recommendations deal with nutrient management for all livestock industries, only the hog industry has been targeted with moratoriums.

KAP president Ian Wishart suggests existing regulations along with changes recommended by the CEC are adequate ensure the environment is protected.


Ian Wishart-Keystone Agricultural Producers
There is certainly a case for a few small regions in the province where there's been so much development already that there's actually more nutrients in that particular region than there is acres to deal with it and we looked at some specific recommendations to that, nutrient exporting and dealing with de-watering and that type of thing that the Clean Environment Commission did touch on.

Those areas are maybe a little unique but, by far, the vast majority of the province could deal with this on a site specific basis and, in fact, under the proposed regulations that are coming down from Water Stewardship on prosperous guidelines will be dealing with it on a site specific basis and managing both prosperous and nitrogen and showing the numbers to do that.

Certainly if you can't show your ability to manage those nutrients on your own operation or on land that you have spread agreements on, grain crop land in particular, you won't get permission to expand.

Wishart suggests singling out hog industry for restrictions on development but not other industries raises questions about the science behind the action.

He says you can generally explain a science based approach to farmers and get good cooperation but, if it's not science based it's pretty hard to get farmers to act and there's real science to support this specific ban.



 

< >

Privacy Policy