The Meat Site:

[Mustang Sally Farm]

Monday, April 23, 2012

DA Orders Inspection of Markets for Smuggled Meat

PHILIPPINES - After receiving reports that pork and poultry smuggling has affected local suppliers, Agriculture Secretary Proceso Alcala has ordered a tighter inspection of meat sold in markets.


According to a report of radio dzBB's Allan Gatus on Monday, Mr Alcala ordered the National Meat Inspection Service (NMIS) to check markets for smuggled meat.

According to GMA News, the report said Mr Alcala will meet with hog and chicken raisers to find solutions against meat smuggling.
 
They will also discuss the possibility of exporting local meat to the Middle East, Japan, Malaysia, and South Korea.
 
Last week, agriculture and Customs officials assured hog and poultry growers that they are working to address their concerns about meat smuggling.
 
DA Assistant Secretary Salvador Salacup said growers complained about technical smuggling or the wrong declaration of prime cuts by unscrupulous parties to avoid paying higher tariffs.
 
Earlier reports said hog raisers were threatening to go on a “pork holiday” to protest against the technical smuggling of pork.
 
"Rest assured the government, particularly the DA and Department of Finance's Bureau of Customs, we're working out the mechanism to hit on that major issue of technical smuggling," Mr Salacup said in an interview over dzBB radio on Friday last week.

[Mustang Sally Farm]

Thursday, April 26, 2012

Access for Irish Beef to Libya Expected Shortly

IRELAND - The Minister for Agriculture, Food and the Marine, Simon Coveney TD, said that he understood the Libyan authorities are about to lift their 16 year ban on the importation of beef from Ireland and other EU countries.


The Minister is optimistic that official confirmation of this will be received imminently.
 
The Minister said that the progress reflected the intensive efforts over many years at political, diplomatic and technical level and represented the continuing improvement in relations between Libya and the EU. It also was a recognition by the Libyan authorities of the quality and safety of Irish and EU beef. In a recent written communication with the Libyan Minister for Agriculture and Animal and Sea Resources, Minister Coveney said that he had emphasised the fact that Ireland applies the highest animal health standards and the strictest veterinary public health controls along the food chain and that these are the bedrock of our agri-food industry.
 
He added that the next step now is to agree veterinary health certificates with the Libyan authorities which will set out the conditions under which the export of Irish beef can take place. It is hoped that these will be agreed soon.
 
The Minister concluded by saying that: "This is a very exciting time for Irish agriculture and food. My visit to China last week was tangible evidence of the fact that there is unlimited potential in the global market place for Irish food exports. We are seen globally as a serious producer of high quality food and as a centre of excellence in terms of food safety, sustainable production systems, animal breeding and genetics. I remain committed to working to ensure that Irish producers have access to as many world markets as possible. With this in mind, my Department will continue to work closely with the Department of Foreign Affairs and Trade and Bord Bia to develop and expand our agri food exports".

[Mustang Sally Farm]

Friday, April 27, 2012

IFA Says Price Cuts Undermining Lamb Market

IRELAND - Severe lamb price cuts are undermining the market and eroding confidence in the sheep sector, according to IFA National Sheep Committee Chairman James Murphy.


He called on the factories to immediately stabilise prices and steady the market.

Mr Murphy said with little or no increase in production forecast for 2012 and very strong offal and skin prices, lamb prices must be maintained at last year’s levels. He said this is essential to the recovery of the sheep sector and its ability to regrow.

Mr Murphy said early lamb producers are disheartened and angry with the factories over the excessive price cuts on spring lamb. He said they are particularly angry when they see the factories lorrying in thousands of imports and at the same time sending out the message to local farmers that they don’t want lambs. These producers have worked hard all spring and witnessed their top quality lambs being cut by €10 per head in a week.
 
The IFA sheep farmers’ leader said the severe lamb price cuts and contradictory market signals from the factories this week highlights the real need for a much clearer roadmap and strategy for the sheep sector going forward.

"Sheep farmers and especially early lamb producers cannot work in a market which inflicts price cuts of up to 10 per cent in a week."

[Mustang Sally Farm]

Monday, April 30, 2012
Pakistan Poultry Price Increase

PAKISTAN - The price of poultry products has gone up in wholesale and retail markets of Karachi at the rate of Rs 25 to Rs 30 kg in the wake of increasing demand and consumption of the commodity due to ongoing marriage season.


The retail price of poultry meat has soared up to Rs 290 per kg at the retail outlets during the last few days, compared to Rs 240 to Rs 250 per kg previous week.
 
Similarly the retail price of broiler (live) also went up to Rs 158 per kg from previous price of Rs 125 to Rs 130 per kg.
 
Talking to Daily Times, Abdul Maroof Siddiqui, central convener, Pakistan Poultry Association (PPA) attributed the steep rise in price of the commodity due to upsurge in its demand during the last fortnight.
 
“Not only are large scale orders received by the wholesalers and retailers of poultry product from caterers but fast food outlets and five star hotels are also placing substantial orders for catering their daily needs which pushed their prices up."
 
Abdul Maroof Siddiqui said in the wake of ongoing marriage season, demand of the poultry product has surged considerably which created demand and supply gap resulting in increase of its rates, reports the Pakistan Daily Times.
 
Other major reasons for the enhanced prices of the commodity include declining production by the farmers and it has become gradually difficult for them to meet its ever-growing demand.
 
Furthermore extra ordinary increase in prices of beef and the mutton, which is currently priced at Rs 380 to Rs 400 per kg and Rs 550 to Rs 560 per kg respectively, have compelled consumers to turn to their attention to chicken meat.
 
High prices have resulted in less domestic consumption of poultry meat as it has proved too expensive for consumers.

Abdul Maroof Siddiqui said current prices would remain the same for at least two months and it would start declining by the end of next month when hatching and production processes would normalise.

[Mustang Sally Farm]

GLOBAL POULTRY TRENDS – Slow Population Growth but Rise in Processed Egg Uptake in Europe

With the population likely to remain fairly constant, the key feature of the egg market in Europe in the coming years is the rise in the consumption of egg products by the region’s residents, according to Terry Evans in the last part of his analysis of the European egg industry. Some estimates point to the proportion reaching as high as 40 per cent in certain countries by 2025.

 



By 2015, the population of Europe will have increased by a mere 15 million compared to 2000. However, while the number of people within the EU is expected to increase from 482 million to almost 507 million, the total living elsewhere in Europe is forecast to decline from 245 million to nearly 235 million. While amendments have been made to the human population estimates (table 1) the FAO has not updated its consumption data.
 
Previously in these regional reports, it has been explained that the consumption figures per person – either in weight or numbers of eggs – are the most unreliable of all the industry statistics. From the data in table 1, it would appear that that average egg consumption in Europe is about 50 per cent above the global figure and also that, unlike the other regions reviewed in this series, there is far less variation in the uptake levels between countries.



While consumption per person in the European Union seems to have declined a little, outside the Community, it has increased quite considerably such that while, prior to 2003, the European average was below that for the EU, since then it has been above it.
 
Currently, world average egg consumption looks to be a little above 9kg per person, which would point to the European figure being around 13.7kg in 2012 (Figure 1).
 
Data published by the International Egg Commission (IEC) on egg consumption gives a mixed picture with the uptake per person in 2010 falling in some countries but rising in others. At first sight, it appears that movements between years simply reflect changes in available supplies which, in turn, are the result of actual or likely future changes in the levels of profitability of egg production. Without the corresponding price data it is not possible to assess whether the demand for eggs has altered.

 


Figure 1. Trends in egg consumption in Europe compared to the global average
 
However, one feature which appears to be common among most IEC member countries is that the consumption of eggs in egg products is on the increase. In 2010, egg products, as shell egg equivalent, was highest in Italy with the average at 75 eggs per person, which represented 36 per cent of a total annual consumption of 210 eggs per person. Belgium came a close second with a products uptake of 74 eggs per person but, in this case, the products represented 44 per cent of a total consumption of 170 eggs.
 
Certainly, it is the products sector of the market that will offer the greatest opportunity of an expansion in egg use in the foreseeable future, with some estimates pointing to the figure reaching as high as 35 to 40 per cent of production by 2025, depending on country.
 
April 2012

[Mustang Sally Farm]

Friday, May 04, 2012

Canadian Pork Producers Fight for Open Border

CANADA - The WTO Appelate Body has completed its hearing on the United States appeal of it loss of the WTO dispute panel on its Country of Origin Labeling regime (COOL) as it applies to imported livestock, specifically Canadian hogs and beef cattle.


"The Canadian Pork Council and its members, together with the Government of Canada and the Canadian Cattlemen’s Association, have been contesting mandatory COOL since its inclusion in the 2002 US Farm Bill”, said Jean-Guy Vincent, CPC Chair, “and we are very pleased with how Canada’s dispute with COOL has been argued at the WTO – first before the Panel and now in front of the Appellate Body.”
 
“The Government of Canada team has very effectively argued that the (COOL) law is a protectionist measure”, said Jurgen Preugschas, a pork producer from Mayerthorpe, Alberta. “Despite claims by the United States that COOL was a response to requests from consumers, the legislation was in fact a result of lobbying by a splinter group of US livestock farmers whose intent was to restrict imports from Canada.”
 
In addition to Mr Preugschas, the Canadian hog industry was represented in Geneva by Martin Rice, CPC’s executive director; Andrew Dickson, General Manager of Manitoba Pork Council; and Peter Clark, CPC’s international trade counsel. The CPC Team also coordinated closely with Jim Laws, Executive Director of the Canadian Meat Council. Jim’s valuable knowledge and insights were greatly appreciated.
 
Mr Dickson noted “Canada has effectively argued that the COOL labeling requirements have seriously harmed and continue to harm Canadian exports of cattle and hogs to the United States. The COOL measure has been devastating to Manitoba hog producers. COOL has been particularly devastating to Manitoba hog farmers, many of whom have had to cease or significantly curtail their operations.”
 
“The Canadian legal team and their colleagues from DFAIT and Agriculture Canada were impressive and effective in their efforts to turn back the US. challenge” said Mr Preugschas. “A positive result is needed by all Canadian hog producers whether they are selling feeder pigs or slaughter hogs – the US. market has been skewed for far too long to our disadvantage.”
 
“We look forward to working with our counterparts in the US. on a legislated return to normalcy”, he added.
 
Peter Clark explained: “The formal meetings are over – and Canada’s summation was concise but complete and compelling. The Appellate Body will now consider the record evidence and arguments to reach its conclusion which we expect towards the end of June.“
 
He went on to note that in dealing with the COOL appeal the Appelate Body will almost certainly clarify rules which will be important with respect to COOL and to properly disciplining the proliferation of technical measures around the world.
 
The CPC serves as the national voice for hog producers in Canada. A federation of nine provincial pork industry associations, our organisation’s purpose is to play a leadership role in achieving and maintaining a dynamic and prosperous Canadian pork sector.

[Mustang Sally Farm]

Jobs Go as Plants Close of Lean Finely Textured Beef

ANALYSIS - The media furore over the use of lean finely textured beef in beef products in the US took its most severe and possibly final toll this week as the company at the forefront of the debate was forced to close three of its plants.

Beef Products Inc had been promoting the safety and nutritious value of the products at the American Meat Institute Expo in Dallas.
 
The exhibition and conference also held a special seminar session to show to the media and the exhibition visitors that the product was safe.
 
However, the pressure of the campaign against the product that has resulted in many organisations, food service outlets and retailers demanding its withdrawal from their products has forced BPI to close its plants in Amarillo, Texas, Garden City, Kansas and Waterloo, Iowa with the loss of 650 jobs.
 
A plant in South Sioux City, Nebraska, will stay open but run at reduced capacity.
 
Iowa Governor Terry Branstad said: “The fact that a false, misleading smear campaign can destroy a company’s reputation overnight should disturb us all.
 
"My office will never stop fighting for every single job in this state, and I continue to hope that as consumers learn about this safe, healthy and lean product, they will understand what a great product lean, finely textured beef truly is."
 
In Brazil, meat processing giant JBS SA is to lease the assets of Brazilian poultry processor Frangosul, a company controlled by the French group Doux.

JBS said the move is another step to become the largest producer and meat processor in the world.
 
The company is already the second largest operator in the global poultry segment.
 
Under the agreement signed, JBS said it will not assume any pending, charges, restraint, seizure or inability of any other nature.
 
This is a lease asset and JBS said it will hire all current Frangosul employees and continue all contracts with the integrated service providers and third parties.
 
With this new Brazilian chicken operation, JBS will boost its production capacity by 15 per cent to approximately nine million birds per day.
 
A new report from the agri-business analysts, Rabobank, has linked the price of pork in China to the movement in the Consumer Price Index.
 
The report "Is the CPI the China Pork Index?" says that "a large portion of the China food CPI is due to pork’s large share in the CPI basket and its high price volatility".

 Chris Harris, Editor-in-Chief

[Mustang Sally Farm]

Food Outlook – Meat and Meat Products
Friday, May 11, 2012

Global meat markets in 2012 are expected to see a recovery of supplies in traditionally importing countries and strong competition for markets, according to the latest Food Outlook report from FAO. Near record prices are constraining consumption growth.

Meat Prices Hover at Near–Record Levels
 
Global meat markets are likely to face heightened trade competition in 2012, at the same time that recovering meat production in Asia is set to dampen growth in global import demand. Overall, meat trade is expected to expand by two per cent, to 29.2 million tonnes, much of which is anticipated to be taken up by developing country exporters, which could increase their share of the global trade to 44 per cent.
 
Disease outbreaks in 2011, drought–reduced cattle inventories and high feed costs sustained international meat prices to near record levels in the first quarter of 2012. In April, the FAO meat price index edged up to 182 points, surpassing the record 181 points registered in November 2011.


 

Variable feed prices influence pork and poultry price movements

 

World meat market at a glance
 
Indications of slowing import demand, especially for pig and poultry meats, portents a potential moderation of meat prices in the coming months, which, along with high feed costs, is raising concern about the profitability of the meat sector in 2012.


 

Beef prices strong while easing feed prices translate into lower pig meat and poultry prices
 
Pig Meat

As disease concerns in Asia abate, the pig meat sector is poised for a quick recovery
 
After last year’s drop, global pig meat production is expected to rebound by 2.6 per cent in 2012 to 111.7 million tonnes, underpinned by gains in Asia due to reduced incidence of disease. In the region, policy support, growing investments and favourable market returns, particularly in China, are behind an anticipated four per cent expansion in the region’s output to 62.8 million tonnes. The sector may also recover in Japan, following a rebuilding of sow inventories and a return to normal piglet births in provinces affected by the nuclear fallout in 2011. Investments in breeding and feed industries in Viet Nam will support output growth, while a rebuilding of FMD-depleted inventories in the Republic of Korea is stimulating a 20 per cent production recovery.
 
In South America, high beef prices are indirectly supporting the expansion of the pig meat sector in Brazil, Chile and Colombia while, in Argentina, sporadic restrictions on pig meat imports from Brazil are creating incentives for investment. The recognition of Mexico as free of classical swine fever has opened new market access opportunities which, combined with investment in new breeding lines, supports an increase of the country’s production and exports in 2012.
 
Anticipation of new EU environmental regulations that will become effective in 2013 has catalysed a restructuring and concentration of hog operations that may translate into fewer pigs and lower production in 2012.
 
Despite tight margins, a shift by consumers in North America from beef to lower priced meat products is expected to strengthen demand and translate into higher production. Investment–driven gains in the Russian Federation are foreseen to boost production by five per cent despite persistent occurrences of African swine fever.

Pig meat trade may decline in 2012 as Asian import demand falters
 
After witnessing double-digit increases in Asian import demand in 2011 due to its disease-reduced output, improved production in the region is forecast to result in global pig meat trade falling to 7.0 million tonnes in 2012.
 
Reduced purchases by China, the Republic of Korea and Japan, amid large supplies, underlie this expected contraction. This is despite the expected ratification by the Russian Federation of the WTO accession treaty later this year and the signing of a free trade agreement between the Republic of Korea and the United States. It is clear that the Russian Federation will only ease restrictions on pig meat imports when it officially joins the WTO in mid-2012. Until then, imports by the country will be negatively affected by a reduction of its tariff-rate import quota from 470,000 tonnes in 2011 to 400,000 tonnes this year, which may result in smaller pig meat purchases.
 
By contrast, imports by Chile, Colombia, Mexico and Uruguay look set to increase, while Argentina’s “off-and-on” restrictions on imports of Brazilian product may lower deliveries to the country.
 
Declining trade prospects in 2012 set the stage for considerable competition among the major exporters – the United States, the EU, Canada and Brazil – which together account for nearly 90 per cent of global trade. Lingering Russian restrictions on imports of Brazilian products may contribute to lower exports from Brazil in 2012, while benefiting smaller international suppliers, such as Chile and Mexico, but also the United States and Canada.

[Mustang Sally Farm]

Monday, May 21, 2012

Markets Opening to EU and UK Beef Products

ANALYSIS - The UK market for both beef and lamb has been declining for several years, but now it appears to be stabilising and prices are rising, writes Chris Harris.
 



Domestic consumption for beef has been robust but the home consumption of lamb has been suffering, Dr Phil Hadley the southern senior regional manager for the English Beef and Lamb Executive told the EBLEX Northern Conference.
 
He said that the global supply is changing and the competition and demand for beef and lamb is increasing, while the price gaps are narrowing.
 




Dr Phil Hadley EBLEX southern senior regional manager
 
In this market, English beef and lamb has a solid export base and demand is growing and this is offering a great opportunity in new markets Dr Hadley said.
 
One of the major opportunities for the British and specifically the English beef and lamb sector is that adding value to fifth quarter products along the chain will be a key element in breaking into new markets and finding new consumers.
 
UK cattle slaughtering last year slid to 2.126 million and this year the slaughter figures are expected to fall slightly to 2.07 million this year and go down further next year to 2.052 million.
 
The dairy herd in the UK has seen numbers fall from 2.339 million in 2000 to 1.8 million last year. The beef herd has also fallen, but not as steeply from 1.783 million in 2000 to 1.642 million last year. The prediction is for the numbers to stabilise and to run flat over the next two years.
 
Lamb slaughtering are expected to remain flat at about 12.5 million from last year through to 2013.
 



UK Prime Cattle Slaughterings

Source: EBLEX

Dr Hadley said that there has been a major shift in global production. The US has reduced its herd numbers to such a degree that they bare at their lowest for 60 years, South America has ceased being a major exporter to the EU, because of concerns over disease and traceability and production difficulties. New Zealand has seen a drop in beef cattle numbers and the Australian market has been hit by both drought and floods.
 
All this has come together to allow the EU to once again become a net exporter. In 2011, the next surplus of exports reached 312,000 tonnes.
 
While this shift in the dynamics of the global beef market have been taking place, world beef prices have been rising and sharply since 2010. At the same time the US calf crop has been falling.
 
"Although there is a slight slowing down in the drop in the US herd, it is still going down," said Dr Hadley.
 
South American beef imports into the EU hit their highest point in 2005-2006, but they have slumped to have that number now largely because of strategic political changes in the Mercosur states.
 
Even in the lamb imports into the EU, New Zealand, once considered a threat to UK and Irish lamb exports has seen the amount coming into the EU down so that it is not always fulfilling its quota.
 


EU Becoming a Net Exporter
 
With the EU becoming a net exporter, the UK is seeking new markets and many of these are in the developing and emerging nations that have gross domestic product rising at about eight per cent.
 
The opportunities that are presenting themselves for new exports are because these developing countries have 40 per cent of the global population with increasing wealth. It is estimated that China and India will have a middle class increasing to 1.2 billion by 2035 and this increase in wealth consumers will produce a greater demand for meat.
 
Dr Hadley said that it has been estimated that a 10 per cent rising n income produces a five per cent rise in beef consumption.
 
However there is a limited increase in production compared to the rise in demand. There is also expected to be a narrowing of the price gaps between the meat producing nations around the world.
 
The main regions that are going to see an increase in consumption and consequently will become market targets for beef exporters will be Asia, in particular China, and the Middle East and North Africa (MENA).
 


China Seeing a Rise in Demand for Protein
 
China, which has an increasing population and increasing wealth, is already seeing a rise in demand for protein. Already the country has a total meat consumption twice that of the US - although consumption per capita is lower.
 
China consumes 25 per cent of the total meat production. The favoured meat in China is pork and the country has 50 per cent of the world's pigs and consumes 50 million tonnes a year.
 
However, China has also been seeing tight supplies of pig meat, resulting in rising prices. Pork prices have risen 25 per cent year on year producing protests from consumers.
 
The rise in the demand for protein opens the market for beef and lamb into China and in particular fifth quarter products. There is also demand for hides and skins with the UK exporting 11 million sheep skins and 800,000 hides.
 
Dr Hadley said that the OECD and FAO forecast that the real price of meat is expected to rise by 30 per cent between 2011 and 2020 and this is on the back of a 50 per cent rise between 2001 and 2010. Beef and sheep prices are expected to rise by between 18 and 20 per cent up to 2020.
 
"The narrowing of global prices will make the EU and the UK more competitive particularly in the new markets," Dr Hadley said.
 


UK Opening Up More Non-EU Markets
 
The UK has already opened up 40 new non EU markets since 2010 and it is looking to particularly sell fifth quarter products to the Asian region. The amount of fifth quarter material on each animal - 50 kg on a beef animal and between 3kg-4kg in sheep - makes this market potentially very lucrative to the UK industry.
 
Currently the fifth quarter products are worth between five and eight per cent of the carcase value for UK processors, but processors in the Netherlands are able to make up to £36.50 more per carcase on the fifth quarter than the in the UK.
 
"This amounts to a loss to the industry of £96.5 million a year," said Dr Hadley.
 
He said that part of the problem and the loss of income is a poor perception of the value of fifth quarter products and poor treatment of the products in the abattoir often by meat inspectors, who do not respect the products.
 
UK domestic offal consumption has risen by 67 per cent from 2003 to 2008 with a market value of £62 million according to market analysts Mintel. The Agricultural and Horticultural Development Board puts consumption stable at 16,500 tonnes a year worth about £40 million.
 
Liver consumption in the UK is up by eight per cent and worth approximately half of total marketplace.
 
Between 2008-2010 the UK managed to turn the £2.2 million that is cost to dispose of unwanted or unfit offal and fifth quarter products into an income of £13.3 million - a £15.5 million turnaround following a project by MLCSL Ltd.
 
This small turn around in profit has shown the UK industry the potential value the fifth quarter could hold and in seeking new markets in Asia as well as well-set markets in Continental Europe, the industry could exploit the full value of the carcase with products that are not generally sold on the domestic market.

 Chris Harris, Editor-in-Chief

[Mustang Sally Farm]

CME: Little to No Good News for Meat Sectors
23 May 2012

 

US - USDA’S monthly Cold Storage report was released today and it contained little good news for the meat and poultry businesses and was particularly ugly for the pork sector, write Steve Meyer and Len Steiner.

The chart below shows inventory levels for the four major meat species as well as the total.
 


The table on page 2 (please see link below) contains all of USDA’s data regarding the amounts of the various cuts in the US freezers on 30 April. Some important features of the report are:
 •Total frozen meat and poultry inventories stood at 2.249 millin pounds on April 30. That is 5.9 per cent larger than last year and 7.5 per cent larger than on March 31. It is also the largest stock of frozen meat and poultry at the end of any month since August 2009. YTD meat and poultry production is DOWN 2.3 per cent.
 

•The total inventory of pork, at 659.532 million pounds is the second largest on record. It falls just short of the 663.443 million pounds that was in freezers at the end of April 2008. This year’s April 30 inventory is 20.1 per cent higher than last year and 8.1 per cent higher than last month.
 

•Hams are the largest contributor to the grown in frozen pork stocks, coming in 46 per cent higher than last year and 40.6 per cent higher than last month. There are 35.6 million more pounds of hams in U.S. freezers than one year ago — and 32.5 million more than last month! Hams have been a challenge all winter and spring after the holidays passed with significant volume still on hand. It doesn’t appear that we are very near working through the backlog yet.
 

•Bellies were the second big contributor to freezer stock growth, coming in 40.6 per cent higher than last year and 13.2 per cent higher than last month. That 40.6 per cent means that there are 21.6 million more pounds of bellies available this year.
 

•Based on weekly data, April 30 pork stocks amounted to roughly 36 per cent of April pork production. That is the highest percentage of monthly production in month-end cold storage since April 2000.
 

•Chicken inventories grew by 5.6 per cent in April but remained 18.2 per cent lower than one year ago. April stocks are the second lowest (to March) since March 2007. Wing inventories are barely half of their April 2011 level but did increase by 10.3 per cent last month — maybe those prices are getting a bit too high to keep them moving? Stocks of breasts and breast meat fell to 119.97 million pounds, 18 per cent lower than last year and 2.7 per cent lower than last month. This is the lowest level of breast meat in freezers since November 2010. The only hiccup for chicken was a buildup of leg products in April with drumstick, leg, leg quarter and thigh/ thigh quarter stocks growing by 19.5 million pounds or 18.7 per cent.
 

•Total beef stocks, at 517.5 million pounds, were 16.8 per cent larger than last year and 2.9 per cent larger than last month. Those percentage increases were, to a great degree, equally shared between boneless beef and beef cuts. The April 30 total was the largest since November 2006 and marks only the 6th time that month-monthend beef inventories have exceeded 500 million pounds. It should be noted that monthly beef output in April 2011, based on weekly data, will be about 2 billion pounds. It was 2.2 billion in November 2006 and in the range of 2.2 to 2.5 billion pounds in the fall of 2002 when beef stocks were also over 500 million. This year’s stocks represent a larger share of production than did similar levels in the past.
 

•Finally, turkey inventories are sharply higher this year. April’s 438.5 million pounds was 20.3 per cent larger than last year and 16.9 per cent larger than last month. As can be seen in the chart above, monthly gains in turkey stocks through June or July are the absolute norm as producers and end-users build the inventories necessary to handle holiday sales. This year is no different except that the pace of the buildup is considerably faster than the past two years. While whole birds, as expected, counted for the largest volume of April’s increase, every other cut category except mechanically de-boned turkey saw larger percentage increase relative to last year.
 
So what does this mean? The data suggest that meat and poultry movement in April was nothing to shout about. That’s especially true of pork. That slow spring movement has left enough product in freezers to perhaps blunt any cash rallies that could start when hog numbers finally decline this summer — In history we trust!
 
When we look at year-on-year changes, we have to be a bit concerned about beef, whose stocks have increased even though production has moved lower. If exports remained below 2011 levels in April, these mean beef movement was indeed slow.
 
Maybe it is time to move away from record-high and near record-high retail prices long enough to clean up some of these inventories. Grilling season is here and some aggressive features could attract a lot of retail traffic and move a lot of product.
 

[Mustang Sally Farm]

Alberta Promotes Beef, Pork in Japan
29 May 2012


CANADA - In early April, an Alberta delegation travelled to Japan to promote Alberta’s beef and pork industries to the Japanese meat industry at two events. A Canada/Alberta meat promotion seminar was held, in Tokyo, Japan, on April 3, 2012, with keynote speakers from various Alberta companies, agencies and associations to showcase Alberta’s beef and pork industry to targeted Japanese meat industry representatives.

In addition to the promotion seminar, delegation members also participated at the Japan Meat Industry Fair event from April 4 to 6, 2012, exhibiting within the Canada/Alberta tradeshow booth, and showcasing Alberta beef and pork to tradeshow attendees. Alberta participants were impressed by the quality of contacts they made at both the promotion seminar and the tradeshow with ongoing follow-up exploring new export opportunities for Alberta beef and pork exports to the Japanese market.
 
“The opportunity to promote Alberta’s agri-food industry within the Canadian context is crucial for increasing retail and foodservice sales and therefore increasing consumer recognition and awareness of our high quality products available to them in Japan. Our international competitors do a great job in branding their products under their national umbrellas for greater recognition by Japanese consumers, and we need to do the same,” says Lana Gudmundson, trade development officer with Alberta Agriculture and Rural Development.
 
The Canada/Alberta meat promotion seminar and Japan Meat Industry Fair tradeshow participation were organised and supported by Alberta Agriculture and Rural Development, the Alberta Livestock and Meat Agency (ALMA), the Alberta Japan Office, Canada Beef Inc., Canada Pork International and the Embassy of Canada.

[Mustang Sally Farm]

Sustainability Theme to World Meat Congress
06 June 2012


FRANCE - The World Meat Congress opened its doors on Tuesday (5 June) with its eyes firmly set on the subject of sustainable production, writes Chris Harris in Paris.
 
The conference welcomed the new French agriculture minister, Stephan Lefoll, following the recent elections in France and is also playing host to several other minister including the Uruguayan agriculture minister.
 
The congress, which is being attended by more than 700 delegates from around the world, was opened by the International Meat Secretariat president Arturo Llavallol.
 
He told the congress that the IMS sustainability committee had been working closely with the Food and Agriculture Organisation of the United Nations over sustainability issues particularly with regard to cattle breeding.
 
He said that the FAO had already been working with the egg, poultry and dairy industries on sustainability issues and he said now was the time for the meat sector to find solutions.
 
He said the IMS has also become a global stakeholder in championing animal welfare issues. He said the industry has to focus on economic issues in countries around the world and focus on the development of production "so we can feed the billions of people in the world".
 
At the same time, he said that consumers are demanding good quality products.
 
President of the congress, Guillaume Roué, said that the programme of the congress is focusing on the demands of the market.
 
He said it will be tackling questions of sustainability, welfare, the environment, nutrition, health and marketing.
 
He said the industry has to strike a balance between the demands of these issues and the demands of business.
 
He said the industry has the "noble ambition of feeding the global population, but we also have to remember we are farmers".
 
"We are working as a food industry to provide food with quality and security, but as a farmer, we have to earn some money at the same time," he said.

[Mustang Sally Farm]

Labelling Law for Beef and Pork Impeding Canada-US Trade
08 June 2012


CANADA - A simplified "Product of Canada and the USA" labelling system should apply to beef and pork as well as livestock raised, processed and traded between Canada and the United States, a new study released by the Fraser Institute, Canada's leading public policy think-tank, and the Competitive Enterprise Institute of Washington, DC recommends.
 
The study found that regulatory differences in North America's integrated supply chain for red meat are costly and unnecessary.

In particular, the Mandatory Country-of-Original labelling (MCOOL) law in the United States imposes substantial costs on producers by requiring beef and pork products to be labeled according to the origin of the animal, where it was raised, and the country in which it was slaughtered and processed.

"Canadian cattle and hog exports to the United States have decreased by 42 and 25 per cent, respectively, since MCOOL went into force in 2009," said Alexander Moens, Fraser Institute senior fellow and co-author of MCOOL and the Politics of Country-of-Origin labelling.
 
"These excessive labelling requirements do not increase food safety or improve health standard for consumers. MCOOL is simply a trade barrier, a product of the 'Buy American' shift."
 
Over the past several decades, Canada and the United States (as well as Mexico) have developed an integrated supply chain for many red meat products in which calves and pigs may be born in one country, raised in another, and slaughtered on either side of the border.

In 2011, Canada-US trade in agriculture was worth more than $38 billion US, $4.1 billion of which came from hogs and cattle, and pork and beef products.
 
"The nature of modern meat production makes this labelling requirement very costly. As often happens when special interests get special treatment, the real losers are consumers who must pay higher costs for what are termed 'benefits' but are of dubious validity," said Fred L. Smith, Competitive Enterprise Institute president.

Despite nearly identical standards and regulations for red meat processing in both countries, MCOOL imposes a tracking, segregating, and recording system that increases production costs.
 
American producers are now avoiding the onerous and expensive labelling requirements by choosing 100-per-cent US products.

The resulting drop in trade puts thousands of Canadian jobs in the livestock industry at risk, and many American processors and packers are faced with a lack of supply.

To boost trade between the two countries, the report recommends the creation of a single regulatory area by:
•Implementing bi-national food and animal safety standards for beef and pork;
•Installing a bi-national inspection regime on both sides of the border at various stages of the production process, including in slaughtering and processing plants;
•Blending or harmonising meat grades designations;
•Adopting a single, bi-national country-of-origin label, specifically "Product of the USA and Canada"; and,
•Removing all border inspections.

"Regulatory cooperation would create a single red meat regime in which both Canadian and American products can be priced according to their quality and in which the origin of the animals is irrelevant," Mr Moens said.

"This would benefit consumers through lower prices, help keep beef and pork competitive among increasing food choices, and also make North American meat more competitive in the global market."

Mr Smith added: "Free trade is one of the basic means of ensuring a pro-consumer competitive economy. If the United States treats its closest neighbor and trade partner in this way, what grounds can we have for urging the rest of the world to eschew protectionism and embrace free trade as a governing principle?"

[Mustang Sally Farm]

April Pork Exports Remain Strong
12 June 2012

 

US - April exports of US pork were up slightly in volume (183,618 metric tons) from a year ago and four per cent higher in value ($509.2 million), keeping 2012 exports ahead of 2011’s record pace. Through the first four months of the year, pork exports stand six per cent higher than last year in volume (781,676 metric tons) and 16 per cent higher in value ($2.17 billion), according to statistics released by the USDA and compiled by the US Meat Export Federation (USMEF).

On a per-head-slaughtered basis, April pork exports equated to $57.69 – down slightly from the first quarter of this year but still more than a dollar higher than in April 2011. For the first four months of this year, exports equated to $58.84 per head.
 
April exports of pork muscle cuts equated to 24 per cent of production, 27.7 per cent when including both muscle cuts and variety meat. These ratios were roughly the same as April 2011 and slightly lower than the first quarter of this year.
 
Individual market highlights for US pork included:
• Though April was the slowest month this year for exports to Mexico, volume was up 30 per cent over April 2011 and value was 18 per cent higher. Through April, 2012 exports to Mexico were up 19 per cent in volume (207,095 metric tons) and 18 per cent in value ($377.4 million) over last year’s record pace.

 
• April exports to the China/Hong Kong region were the second-largest so far this year, pushing results for the first four months of the year one-third higher in volume (154,884 metric tons) and 84 per cent higher in value ($312.8 million) than the same period in 2011. However, exports to this region have slowed considerably from the peak volumes shipped in the final months of last year.

 
• January-April exports to Japan were down slightly in volume (161,933 metric tons) from last year but were 14 per cent ahead of 2011’s record value pace at just under $700 million.


 • Composed almost completely of muscle cuts, April exports to Russia were the strongest in more than six months. This pushed Russia’s 2012 results 20 per cent higher in volume (25,903 metric tons) and 28 per cent higher in value ($78.7 million) than a year ago.

The recovery of South Korea’s swine herd from the 2010-2011 foot-and-mouth disease outbreak has caused US exports to slow from last year’s record pace. Through April, exports to Korea were down 31 per cent in volume (67,061 metric tons) and 20 per cent in value ($192.7 million) from a year ago. For perspective, however, it is important to note that other than 2011, these results still outpace any other year’s exports to Korea by a wide margin and were nearly double the volume shipped in the first four months of 2010.
 
“Considering the recovery of domestic supplies in markets such as Korea and China, pork exports have performed remarkably well through the first four months of the year,” said USMEF President and CEO Philip Seng.

“Despite fierce competition in Japan, we have increased our market share further this year and nearly topped $700 million in value. USMEF marketing efforts are also contributing to growth in the Western Hemisphere markets – especially in the processing and retail sectors – with Mexico leading the way. Even in our Latin American markets that are quite price-sensitive, US pork is appealing to more customers than ever before.”
 

[Mustang Sally Farm]

New Report Identifies Multi-Million-Pound Boost for UK Meat Industry
12 June 2012



 
UK - Potential benefits to the country’s meat industry to the tune of around £40 million per annum have been identified in a new report for the Royal Agricultural College by Stewart Houston, reports senior editor, Jackie Linden.

The report, A Creative Study Into the Scope for Increasing Value from Fallen Livestock and Animal By-products was presented by Stewart Houston, CBE FRAgs, at the House of Lords in London today, 12 June.
 
Board member of the Agricultural and Horticultural Development Board (AHDB) and Chairman of the British Pig Executive (BPEX), Mr Houston prepared his report for the Royal Agricultural College (RAC) 100 Club. His study was sponsored by PIC and the National Fallen Stock CIC (NFSCo).
 


Stewart Houston
 
He explained that, as the Earth’s natural resources are limited and the demand for food grows, all industries – among them, the UK meat sector – need to seek better and more efficient ways of producing goods and services. It was with this in mind that NFSCo proposed the study, which was dedicated to increasing value from fallen stock and animal by-products.
 
Taking the broad approach, Mr Houston looked within and across livestock production sectors – poultry, pig, beef, sheep and equine – and included fallen stock collectors, renderers and by-product manufacturers. Among his key findings is that, to extract value from fallen stock and animal by-products, it is important to consider the whole chain from the farm, through collection, processing and into product quality and design. Poor management in one stage of the process can impact the success of the whole chain, he said.
 
While animal by-product waste from abattoirs historically incurred a disposal cost, some of the same waste material now attracts a payment from processors, such as petfood manufacturers, seeking high-quality ingredients for their own products.
 
Mr Houston also highlighted the potential for the use of good quality animal by-product in new and emerging markets, such as renewable energy and aquaculture feeds.
 
In coming to his total annual potential value of these by-products of £40 million to the UK meat industry, he estimated that livestock producers could realistically reduce costs of fallen stock disposal by as much as 25 per cent (or £10 million across all sectors) by taking further steps to reduce mortalities, as well as to boost the value from unavoidable fallen stock and animal by-products by up to a further £20 million. Mr Houston’s report identifies areas for further research and knowledge transfer to reach the total figure.
 
Furthermore, these improvements would be accompanied by a number of environmental and social benefits, he said.
 
Acknowledging the teamwork that has been the cornerstone of this study, Mr Houston thanked particularly Ian Campbell (Director of NFSCo), Stephen Woodgate (Director of FABRA), Bob Bansback (Professor at Harper Adams University College) and independent consultant, Duncan Prior.
 
Finally, he made a series of recommendations for action, whilst warning that progress may be slowed by the need for changes in legislation and gaining consumer confidence over certain aspects, which include the possible return of processed animal protein (PAP) to the feed of farm livestock in the European Union.
 
Summarising his report – the first comprehensive study into raising the value of fallen livestock and animal by-products in the UK – Mr Houston wrote: “There appears to be a real opportunity for moving things forward and making progress in a number of areas.”

 Jackie Linden, Senior Editor