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mikey
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« on: April 12, 2008, 08:24:33 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.

 
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« Reply #1 on: April 12, 2008, 08:28:09 AM »

 
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 NST Online » Local News
2008/04/10

RM100m pig farm stays in Sepang
By : V. Shankar Ganesh

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SHAH ALAM: The previous Selangor government approved 135ha of land for the controversial RM100 million modern pig farm near Sepang, Menteri Besar Tan Sri Khalid Ibrahim revealed yesterday.

Land acquisition for the project in Tumbuk Estate, Kuala Langat began earlier this year.

He said the state government would maintain the project's status quo.

Speaking after chairing the weekly state executive council meeting here, Khalid said the previous administration had approved the land acquisition on Jan 30 under Section 3(1)(a) of the Land Acquisition Act 1960.

The previous executive council had also directed the Kuala Langat district land administrator to give speedy approval for the project.

He said that all costs related to land acquisition would be borne by private investors.



Denying former menteri besar Datuk Seri Dr Mohd Khir Toyo's claim that he had only approved a much smaller facility, Khalid said the size remained.

The previous administration had carried out an extensive study on the pig farm before approving it.

"They even went to Europe to study this. It's good. Now I don't have to go to Europe to study it."







Khalid said there were three options over the farm. First, drop the project and leave the pig farms scattered as it was now. Second, ban pig-farming in the state. Third, find a suitable place and centralise all operations in a modern and environmental-friendly way.

He said the third option remained the best.

On the RM100 million price tag, he said it was only an estimate.

He added that the state also hoped to reduce the number of pigs reared in the modern farm.



Khalid also dismissed talk that there was pressure to maintain the project.

"We feel the site is the best place as the main pig-breeding area in the state."
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« Reply #2 on: April 12, 2008, 08:30:45 AM »

Thursday, April 10, 2008Print This Page
Food Safety for Olympic Sailors
CHINA - The Chinese authorities have launched a system to ensure food safety for the Olympics in Qingdao, the venue for Olympic sailing competition.



The city now has 173 approved agricultural bases, 989 livestock and poultry farms and 74 eco-friendly aquaculture sites, all reaching the approved standards to supply the competitors, officials and visitors for the games.

"The food project for the Olympics in Qingdao guarantees food safety for the event and treats sailors and tourists to diverse, delicious food," said Jiang Jing, deputy secretary-general of Qingdao Sailing Committee.

The city government began preparation and adopted a series of measures in 2004 to ensure food quality.

Over the past four years, local authorities have established a mechanism to ensure a safe supply of food through close inspection of hygiene and supervised agricultural and aquaculture sites.

An expert panel established regulations and rules to govern how and where food is produced.

The sailing competition itself will be served by an exclusive food distribution center and six officially designated hotels.

Local farmers have been encouraged to adopt new farming techniques, develop organic agriculture and use advanced testing for pesticide residue, heavy metals and microbes.

The city government has invested 59 million yuan in food inspection equipment and designated eight inspection institutions to control food quality.

All foodstuffs will carry a special tag to mark their Olympics purpose and sealed before they are allowed into the sailing center. Records will be kept to ensure careful monitoring of the supply chain.

Over the past two years, the authorities have taken 623,100 vegetable and 51,000 pork samples. Some 79,900 kg vegetables were destroyed because they had excess levels of pesticides.

The authorities have also been clamping down on illegal food producers and 2,700 have been put out of business since 2004.



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« Reply #3 on: April 12, 2008, 08:32:59 AM »

Thursday, April 10, 2008Print This Page
Some 82,000 pigs in Vietnam Infected with Blue Ear
VIET NAM - Almost 82,000 pigs in Vietnam's central provinces of Nghe An and Ha Tinh and northern Thanh Hoa are infected with Porcine Reproductive and Respiratory Syndrome (PRRS), says local vet agencies.



The Vietnamese Ministry of Agriculture and Rural Development has asked all relevant agencies to cull all infected pigs in a bid to prevent the spread of the disease PRRS is now active in four Vietnamese localities, Nghe An, HaTinh, Thanh Hoa and central Quang Nam province. There are fears that the disease will spread throughout the nation's pig sector and cause similar devastation to that seen in China last year. The current economic situation, with pork shortages and food prices rising across the world, could not withstand high losses.
The PRRS was first recognized in the United States in the mid-1980s and is now present in most pig producing countries. The symptoms include reproductive failure, pneumonia and increased susceptibility to secondary bacterial infection.


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« Reply #4 on: April 12, 2008, 08:48:22 AM »

Wednesday, April 09, 2008Print This Page
Pig Company Share Boost as Prices Rally
UK - Premium sausage producer Cranswick saw its share value increase after announcing it would pass on rising costs to its customers.


According to the Driffield Times, the Yorkshire-based company said it was now achieving price increases in the primary processing part of the business which will help offset its increasing raw material costs due to higher commodity prices and the strong €.

Pig prices have increased by 20 per cent over the past six months, as a result of the higher price of pig feed and Cranswick is now passing on higher input prices to customers in fresh pork," said Martin Davey, company chairman.

"We are in discussions with customers to pass on higher costs for our other activities which include ham, cooked meat, bacon, sausages and charcuterie," he added.

On Monday Cranswick's shares closed up nearly six per cent, a rise of 31p to 564.5p. However, they were still considerably lower than the 769p seen in January, before the group announced it was struggling to pass on higher raw material costs.


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« Reply #5 on: April 12, 2008, 09:01:33 AM »

Wednesday, March 19, 2008Print This Page
Scottish Industry Facing Extinction
UK - Industry observers say that Scotland's pig industry could disappear within a few months,


A report in the Scotsman, quotes a stark message from Jim McLaren, president of NFU Scotland.

Official Statistics have tracked a marked decline in the breeding herd over the past decade and there is a real possibility that there will hardly be a pig left in Scotland.

Although the industry is relatively small, he affirms that it is vitally important to Scotland's farming industry.

He said that has been under immense pressure for many months, while last year's foot-and-mouth crisis did little to engender any sense of optimism for the longer-term. It is generally agreed that every pig leaving Scottish farms for slaughter is losing its producer at least £26.

Higher feed costs are clearly a major influence, as the daily ration accounts for almost 80 per cent of total cost of production.

In 1997, Scotland had a pig breeding herd totalling 69,600 sows and younger animals destined for the production chain. The trend since then has been consistently negative and, as of December 2007 according to the official census figures from the Scottish government, the breeding herd had fallen to only 38,600 head – a fall of just over 12 per cent on the year.

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« Reply #6 on: April 12, 2008, 09:03:43 AM »

Thursday, March 20, 2008Print This Page
Levy Reduction Will Come in April
UK - A 10 pence cut in the pig levy has been announced as part of a strategy agreed by the board of the British Pig Executive (BPEX) to help the industry in its hour of need.

 
The BPEX Board took a strategic decision to use reserves to increase spending by £2.5m.

The one-year cut, which takes effect from 1 April, reduces the total levy paid by producers to 75 pence per pig slaughtered.

More for Promotion and Feed Campaign
The extra money is being spent on promoting the industry and building on the continuing feed cost crisis campaign to maintain the momentum built up so far aimed at getting a fair price for producers.

There is also a range of Knowledge Transfer and Research and Development work including a £1.5 million PCV2 vaccination scheme which offers producers vouchers for the vaccine.

BPEX Chief Executive Mick Sloyan that as the industry is in crisis due to the huge increase in feed costs, the board decided to use the reserves to as a direct benefit to producers in their time of need.

"We are aware of the magnitude of what we are trying to achieve and will use every resource we have at our disposal to assist the industry," he added. "The Board believes these initiatives will enhance the range of activities already being delivered and this is the best way BPEX can help the whole English pig industry meet the considerable challenges ahead.

The temporary reduction in the levy paid by English producers has been approved by ministers and will come into force from 1 April 1 for the financial year 2008/09.
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« Reply #7 on: April 12, 2008, 09:05:33 AM »

Friday, March 21, 2008Print This Page
Retailer Loss Leaders Choking Irish Pig Sector
DUBLIN - IFA President Padraig Walshe says retailers are killing the Irish pig industry by using pigmeat as a loss leader.


Speaking at an industry protest outside Dunnes Stores Head Office, yesterday, he said discounted pigmeat and half-price offers were constantly being used by supermarkets as headline grabbers to pull in customers.

This was severely damaging the industry, which is faced by sky-rocketing feed costs, and was choking the livelihoods of producers.

The average Irish pig producer has accumulated losses of €100,000, which is devastating the otherwise €400m a year industry.

“Farmers cannot produce two for the price of one. The reality is that Irish pig producers are losing over €25 per pig and have been making losses on every pig sold for the last eight months," said Mr Walshe.

The protest was in support of the IFA's ‘Honesty in Food Pricing’ campaign - an initiative to gain greater transparency in food chain pricing structures.


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« Reply #8 on: April 12, 2008, 09:08:29 AM »

Thursday, March 20, 2008Print This Page
UK Slaughter Statistics March 2008
UK - This publication by Defra shows various statistics obtained from surveys of slaughterhouses run in England and Wales, Scotland and Northern Ireland.

 

The figures are based on data from all slaughterhouses but remain provisional until all the returns are in. The statistics are shown in statistical months - that is, statistics for January, April, July, and October are for periods of five weeks while statistics for other months are for periods of four weeks, with the exception of 2004 which is a 53 week statistical year where December 2004 statistics are for a 5 week month.

Unless otherwise stated, all information is for the United Kingdom.

UK monthly slaughter estimates.
UK monthly average dressed carcase weights.
UK monthly home-killed production of meat.
UK average weekly slaughter estimates.
UK slaughterings by country.
UK quarterly production and supplies of meat.
1. UK monthly slaughter estimates
Monthly estimates of the number of cattle, sheep and pigs slaughtered for meat in the United Kingdom are given in the table below. They are shown in statistical months.


Livestock slaughtered under the Older Cattle Disposal Scheme are excluded.
A dataset showing slaughter statistics for the same months in previous years can be found on the Defra website at http://statistics.defra.gov.uk/esg/datasets/slaughm.xls.
2. UK average dressed carcase weights
The surveys of slaughterhouses also collect information on the meat produced which enables average dressed carcase weights to be calculated. Monthly average dressed carcase weight for livestock slaughtered for meat in the United Kingdom are given in the table below.


Livestock slaughtered under the Older Cattle Disposal Scheme are excluded.
A dataset showing slaughter statistics for the same months in previous years can be found on the Defra website at http://statistics.defra.gov.uk/esg/datasets/alldcw.xls.
3. UK monthly home-killed production of meat
The surveys of slaughterhouses also collect information on the meat produced. This enables the total quantity of meat produced in the United Kingdom to be calculated. Home-killed production includes livestock imported into the United Kingdom for slaughter and differs from home-fed production (see Table 6) which excludes livestock imported into the United Kingdom for slaughter. The figures are shown in statistical months.


4. UK average weekly slaughterings
The monthly figures shown in Table 1 are affected by the number of weeks in the month. In order to provide a better, and more immediately accessible to readers, measure of trends over time, the following tables show average weekly slaughterings for each of the last twelve months. Longer time series are shown in the charts.


 
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« Reply #9 on: April 12, 2008, 09:11:29 AM »

Thursday, March 20, 2008Print This Page
Shoppers Can Now "txt" for Recipes
NEW ZEALAND - The New Zealand pork industry has launched a new promotional campaign - by text message.



New Zealand Pork is rolling out a txt recipe service as part of a new labelling regime that sees locally-produced pork more clearly identified in the meat cabinet.

Labels are currently appearing on pork in New World supermarkets, and due to appear on pork from Foodtown, Woolworths and independent butchers in the coming weeks.

For 20 cents, shoppers can now send a txt from their mobile phones to receive one of six different recipes using common cuts of pork - from roasts through mince and stir fry to grill and barbecue cuts.

The txt messaging campaign - a first for New Zealand - is expected to provide extra impetus for New Zealand Pork's campaign to help Kiwis choose the local home grown product.

"Our research shows that people want to cook more New Zealand pork but don't have a familiar recipe to use, that's when we came up with the idea for txting," says NZ Pork chief executive Sam McIvor.

"Virtually everyone has a mobile phone and for many it's the preferred method of communicating.

"With the txting programme we are recognising that people sometimes need advice and there's no better place to provide it than when they are shopping and faced with the 'what's for dinner' dilemma. It's the instant answer."



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« Reply #10 on: April 12, 2008, 09:13:18 AM »

Tuesday, March 25, 2008Print This Page
Caribbean Swine Producers Tough It Out
DOMINICAN REPUBLIC - Producers the world over are having to live with massive increases in feed costs and the Dominican Republic is no different, especially since its producers rely on imported corn and soya from the USA, writes Stuart Lumb.



The Dominican Republic has around 70,000 sows. The Dominican Republic Swine Producers Association has 28 members, which includes two co-ops, with members buying shares in the association.

The national herd size has fallen slightly from 76,000 sows in 2006 to 70,000 currently, and numbers, hardly surprisingly, are still falling due to the current feed price crisis.

The association accounts for 22 per cent of the DR's sows, plus many of the members also produce broilers .Herd size ranges from 50- 2000 sows and productivity varies from 14-19 pigs/ sold/sow/year.

According to association President Fernando Fernandez (pictured second from right), two years ago it was possible to make a good living from 50 sows ,when producers were making a profit of £40 per pig - today a producer needs 500 sows and currently farmers are losing £10 per pig ( much less than the £26 UK producers are losing though).

Not much pork is consumed in the DR and the industry needs a promotional campaign similar to one that has been organised in Colombia.

Buying Policies
Corn and soya are imported in 30,000 ton boat loads and key association members meet weekly to discuss raw material buying policy.

All members are home mixers producing pig meal and raw materials are bought on credit.

The association has its own vitamin and mineral pre-mix manufacturing plant and premixes are also sold to non-members.

Antibiotics and AGPs are sourced from China and India.

The association is very proud of its vet lab, which is the only one on the island.

A team of six staff carry out PCR testing, supervised by a vet, also an association employee. Members have invested heavily in new buildings and breeding stock of late and it's to be hoped that they can weather the current financial storm.
 

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« Reply #11 on: April 12, 2008, 09:15:13 AM »

Friday, March 21, 2008Print This Page
Czech pork prices rise on falling pig numbers
PRAGUE - Czech farmers reduced pig numbers by nearly 80,000 to 2.661 million last year, and continue cutting the numbers this year owing to low buyout prices, according to statistics the Agricultural Chamber have reported.


The Chamber's president Jan Veleba said the decline in pig numbers would result in roughly a 20 percent increase in pork prices this year because pork supply would be lower than demand.

Czech breeders are closing down whole pig farms, he added. The reasons include the fall in farmers prices, which reached 7.6 percent in 2007, and the growth in prices of inputs, especially feed mixtures, caused by higher grains prices.

Veleba warned that if the unfavourable trend is not halted, domestic pork production would only cover 50 percent of consumption in about a year. Still in 2002, the Czech Republic was self-sufficient in pork production, and the share of domestic breeders has been decreasing since that time. Average per capita pork consumption in the country is 41 kilogrammes a year.

The only way to improve the situation of Czech pig breeders is to raise consumption of Czech-made pork meat, Veleba said.

"Last year, 130,000 tonnes of pork worth Kc6.7bn was imported to the Czech Republic. Before the EU entry in 2004, we imported pork worth Kc1.3bn," he added.

Agriculture Minister Petr Gandalovic told CTK earlier the ministry would try to help pork producers by means of preferential treatment in the rural development programme, that is, in drawing money from EU funds.


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« Reply #12 on: April 12, 2008, 09:44:10 AM »

Tuesday, March 25, 2008Print This Page
Mexican Grain Imports Will Increase, says US
US - Mexico’s total imports for grain and feed are likely continue to increase in for 2008/09 period due mainly to the dynamic performance of its livestock sector, says the US Department of Agriculture.

 
Its latest FAS report says that high grain prices will likely encourage producers to expand production in sorghum and corn. Corn production is forecast at 22.750 million metric tons (MMT) for 2008/09, or one percent greater than the previous year, while sorghum production is estimated at 6.45 MMT, an increase of 150,000 MT.

Also, the first ethanol plant in Mexico is scheduled to open May 2008 and will use nearly 270,000 MT for production. That is also likely to have an impact on national crop markets, says FAS.

Dry bean production is forecast at 1.2 MMT while wheat production is forecast to increase slightly compared to the previous year. However, wheat exports are forecast to increase 16 percent due to record high international prices and low world stocks.

Rice production for MY 2008/09 is forecast to remain at the previous year’s estimated production of 185,000 MT.


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« Reply #13 on: April 12, 2008, 09:51:36 AM »

Friday, April 11, 2008Print This Page
Final PC Inquiry Hammers Australia's Pig Farmers
AUSTRALIA - Australia's pig farmers claim their hope of import Safeguards and extra support for the industry's dire situation have been ignored by the final report to the Federal Government from the Productivity Commission (PC).



--------------------------------------------------------------------------------
*
"This distorted attitude of the PC on short term industry support comes at great cost to the livelihoods of farmers" 
Australian Pork Limited CEO Andrew Spencer
--------------------------------------------------------------------------------
 

Australian Pork Limited (APL) CEO Andrew Spencer said that the industry is imploding due to cheap imports of frozen pig meat.

Added to this situation is high grain prices that are making local production completely unviable, he said.

"This distorted attitude of the PC on short term industry support comes at great cost to the livelihoods of farmers, rural and regional communities and ultimately consumers," said Mr Spencer.

"To continue to ignore the fact that all of Australia's pork imports come from countries that actively subsidise their pig farmers and their pork industry with tax payers funds, laughs in the face of fair trading conditions and a free trade environment."

Mr Spencer said 70 per cent of the hams, bacon and smallgoods market is sourced from overseas countries.

In the current environment this percentage share is only going to climb and the result has been catastrophic for domestic farm gate pig prices, holding them down, while grain prices continue to climb, he added.

Despite the high levels of on-farm efficiencies gained by Australian pig farmers over the past five years, Mr Spencer said the industry cannot compete in "this distorted, totally unbalanced trading environment".

"The PC, by taking this stance, is in effect encouraging foreign subsidies on imports, whilst on the other hand telling Australian pork farmers they don’t deserve Government support. This is totally inconsistent and inequitable but I guess equity is not part of their criteria," he said.

"It is beyond comprehension that this situation continues to be ignored by the PC. For the PC to just blandly bundle the pig industry in with the rest of Australia's livestock industries shows how little they actually know or chose to know about the trading environment of Australia’s pork industry. Other livestock industries such as beef, sheep meat and chicken do not suffer direct competition from imports and therefore do not have their domestic trading environment left open to these pricing distortions."

Mr Spencer said the PC’s misguided, sterile ideology on free trade combined with a lack of understanding of some simple economic issues associated with the industry has turned the report into a farce.

"The one’s laughing loudest are our competitors," he said.

 
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« Reply #14 on: April 12, 2008, 10:04:08 AM »

Friday, April 11, 2008Print This Page
Pig Farm Permit Angers Locals
MALTA - Malta's Environment and Planning Authority has approved outline permission for a pig production site, close by 10 other farms


In accordance with all planning policies and regulations, the MEPA board has granted an outline development permit in an ODZ area for the construction of a pig fattening farm. This permit carries with it a number of conditions including a restrain on future expansion. The permitted development will be adjacent to another 10 operational farms.

For this application the planning directorate carried out the necessary consultation, as stipulated by law, with the Department of Public Health, Department of Agriculture, Department of Veterinary Services and the Malta Resources Authority which found no objection to this development.

Opposed
During the public meeting, the board addressed objections from three residents that live adjacent to this development in an ODZ area.

The small group of residents in Maghtab, whose country homes will now neighbour the 80-pig fattening facility were reported to be outraged. This new farm would practically stand back-to-back with their properties - and they were concerned about noise and odour problems.

They also pointed out that their residences were there before any of the existing farms and that a number of such farms were not used or used for other purposes. They says there is strong case for an alternative site to be found for the pig unit.

MEPA board chairman Andrew Calleja said the development was in line with the authority's policy. This rural area is predominately devoted to farming and therefore the pig unit fitted into the locality.


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