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Mustang Sally Farm
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« Reply #630 on: June 21, 2012, 09:50:12 AM »


This Week's Pig Industry News
18 June 2012



 
ANALYSIS – Following a review of the current animal welfare legislation, the European Commission has called for a simplified legislative framework and better enforcement. Meanwhile, a survey of Danish pig farmers has revealed that they favoured the concept of unannounced welfare inspections but found the assessments unfair.
 A new report has identified potential benefits worth around £40 million per annum to the UK meat industry by adopting measures to increase the value of fallen livestock and animal by-products.
 The global protein market is in a state of structural change, according to a global strategist with Rabobank’s Food and Agribusiness Research and Advisory Group.

In the EU, the European Commission has reviewed current animal welfare legislation and has called for a simplified EU legislative framework. At the latest Agriculture and Fisheries Council meeting, the Council welcomed the ongoing work by the Commission and supported the need to take a holistic approach in future work on the welfare of animals.
 
The aim of the strategy for the ‘Protection and Welfare of Animals 2012-2015’ is to simplify animal welfare legislation and ultimately, to facilitate its enforcement.
 
In addition, the Commission stressed the need to reinforce or make better use of actions which the Commission already performs, including the development of tools to strengthen Member States' compliance with existing legislation, support for international cooperation, the establishment of a level playing field for European producers, and the provision of appropriate information to consumers and the public.
 
Several Member States have supported the Commission’s considerations over the introduction of a simplified EU legislative framework based on outcome-based animal welfare indicators. At the same time, they stressed that indicators cannot necessarily replace specific resource-based provisions.
 
Following the European Parliament’s adoption of Written Declaration on animal transportation in March this year, the Council meeting suggested a number of new rules, including those covering internal height, loading densities for different weight categories of pigs and the design of watering and temperature monitoring systems.
 
Finally, the Council has called on the Commission to strengthen its international strategy on animal welfare in order to increase the value of animal welfare, to limit distortions of competition and to ensure at least equivalence between EU and third-country operators.
 
Continuing on the theme of welfare, a survey of 12 Danish pig farmers after unannounced welfare inspections has revealed that they favoured the concept but found the assessments unfair.
 
In other news, a new report has identified potential benefits to the UK meat industry to the tune of around £40 million per annum. The report, prepared for the Royal Agricultural College and entitled A Creative Study Into the Scope for Increasing Value from Fallen Livestock and Animal By-products was presented by Stewart Houston last week. The benefits and value accrue as the result of reduced mortalities as well as better handling, storage and transport of carcasses and improved marketing of the by-products to achieve higher prices.
 
The global protein market is in a state of structural change. The world is no longer one of structural surpluses, it is a world of structural scarcity, according to David Nelson, a global strategist with Rabobank’s Food and Agribusiness Research and Advisory Group. He was addressing the World Meat Congress in Paris earlier this month.
 
Finally, turning to news of foot and mouth disease (FMD), new outbreaks have been reported in the last week in eastern Kazhakstan and Botswana (in cattle, sheep and goats).

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« Reply #631 on: June 25, 2012, 08:07:48 AM »

News


US Chilled Pork Gets Celebrity Treatment in South Korea
21 June 2012

 

SOUTH KOREA - The popularity of celebrity chefs and TV cooking programs isn’t unique to the United States. South Korean consumers are glued to their televisions to watch their favorite cooking gurus and learn the latest in trendy cooking techniques and recipes

To capitalize on the growing craze, USMEF is partnering with celebrity chef Shin Hyo Seob, a judge on the popular Chef King television program, to promote US chilled pork and encourage year-round consumption.
 
Frozen pork in Korea is typically considered a lower-quality product, so USMEF is working with chef Shin as part of a multiphase campaign to raise the awareness of chilled high-quality US pork, using chef Shin and other Korean meat industry professionals as spokespersons. Funding for components of the campaign is provided by the USDA Market Access Program, the Pork Checkoff and the Illinois Soybean Association.
 


Ads highlighting the delicious flavor of US pork are displayed in five subway stations in Seoul

 

Trucks deliver a constant reminder of the quality of American pork on the streets of Seoul

Chef Shin is the model in an ad campaign running through the balance of 2012 that shows four different US chilled pork cuts – belly, collar butt, skirt meat and jowls – with comments from chef Shin saying he enjoys using US pork for his dishes because it is chilled and it makes every dish he prepares better.
 
The ads, which highlight the delicious flavor of US pork, are displayed in five subway stations in Seoul. The Seoul subway serves more than seven million commuters daily.
 
“Currently, among major Korean retailers, only Top Mart and Costco are selling US pork all year round while Lotte Mart, Homeplus and E-Mart sell it on a spot basis,” said Jihae Yang, USMEF-Korea director. “Our goal is both to raise awareness of American pork and to associate it with leading chefs who choose only the best products for their dishes.”
 
In a trade magazine ad running this summer and fall targeted toward restaurant developers, USMEF is spotlighting restaurants that are successfully featuring US pork on their menus. Owners or managers of those establishments are quoted in the ads explaining why they choose US pork.
 
Chef Shin also loaned his voice to a series of radio ads running throughout the summer – the peak pork consumption period in Korea – on why consumers should choose US pork for their dishes.
 
Yet another element of the campaign is a service that USMEF is offering to meat distribution companies. USMEF is providing a free professional and highly decorative truck wrapping for participating companies with images that depict chilled US pork and highlight the fact that US pork is the No. 1 imported pork in Korea.
 
“So far we have 24 trucks wrapped with the USMEF pork messaging and another seven with pork on one side and beef on the other,” said Mr Yang. “By the end of the year our goal is to have 50 trucks driving every day through the streets of Seoul, delivering a constant reminder of the quality of American pork.”
 
The Korean pork industry was severely damaged last year by foot-and-mouth disease as it was forced to cull more than 3 million hogs – more than a third of the domestic herd. However, the industry is rapidly rebounding, posing challenges for all imported pork. At the same time, US pork continues to be the leading imported pork, holding a 32 per cent share when measured by volume and 30.6 per cent by value.
 
Through the first four months of 2012, US pork exports to Korea are down in both volume and value, but the country remains the No. 5 market for American pork exports, buying 67,061 metric tons (147.8 million pounds) of product valued at $192.7 million.
 
Since market conditions in Korea have changed significantly since last year, it is difficult to compare 2011 to 2012. It is worth noting that US pork export volume to Korea for January through April of this year remains 38 per cent above 2008 levels, which was the next-highest year on record, and export value has more than doubled. In addition, the Korea-US Free Trade Agreement just took effect in mid-March, so the US pork industry should begin to see benefits of that agreement in the months and years ahead.
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« Reply #632 on: June 28, 2012, 09:44:45 AM »


May Pork Exports Up in Volume and Value
27 June 2012


BRAZIL - The volume of pork exported in May rose compared to April, and the US$-value was also up.

According to the latest figures from ABIPECS, Brazil exported 53,404 tons of pork in May, up by a whopping 18.7 per cent compared to the previous year. The total amount of pork exported in 2012 is 224,870 tons, compared to 214,100 tons in 2011, and this was up by 5.03 per cent.
 
The value of export sales in May was US $138.3 million, up by as much as 9.27 per cent compared to May 2011. The total value of exports in 2012 till May is US $578.9 compared to US $583.1 in 2011.
 
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« Reply #633 on: July 03, 2012, 01:00:27 AM »


Genesus Global Market Report - Brazil Hog Markets
28 June 2012

 

BRAZIL - Independent Brazilian pig producers have suffered greatly over the last decade, with long periods of losses followed by very short periods of low profits, Martin Riordan, Senior Consultant at Genesus Brazil.

However, since the global crisis of October, 2008, which caused an immediate drop of 45 per cent in pig prices in Brazil due to reduced exports, losses have been constant for producers in the south of the country and, even in other regions, profits have been meager and short-lived when they did appear.
 



Genesus Global Market Report
Prices for the week of June 18, 2012
 


Country

Domestic price
(own currency)

US dollars
(Liveweight a lb)
 


USA (Iowa-Minnesota)

1.01¢ USD/lb carcass

75.05¢
 


Canada (Ontario)

1.84¢ CAD/kg carcass

64.75¢
 


Mexico (DF)

21.13 MXN/kg liveweight

68.64¢
 


Brazil (South Region)

1.90 BRL/kg liveweight

41.60¢
 


Russia

95 RUB/kg liveweight

$1.29
 


China

13.54 RMB/kg liveweight

96.18¢
 


Spain

1.38 EUR/kg liveweight

78.08¢
 

This sad situation has given rise to an adage among producers: “The situation is never so bad that it can’t get worse.” When I was a producer, I witnessed this many times. When everything that could go wrong had gone wrong (pig prices falling, feed prices rising, exports banned by an important importing country), along would come yet another problem to make things worse (disease outbreak stopping pig movements, new taxes on production, etc.).
 
And the news that floods in daily over the Internet proves this adage time and time again. In the south of the country, the greatest problem is lack of buyers. A large part of production is now internal to the big integrators/processors that are self-sufficient and have not bought on the spot market in recent years. And their number is falling constantly due to mergers and fusions. One example: what used to be three large companies (Sadia, Perdigão and Avipal) have all been rolled into one huge conglomerate, BR Foods.
 
A medium-sized plant which was bought over by Doux from France some years ago has been in financial difficulties over the last year or so, and is now on the market. Meanwhile its producer suppliers have had difficulty getting payment, often having to wait for months.
 
So for those brave souls who still remain in production in the south, the biggest challenge is to find a buyer for their pigs. One large producer adopted a new strategy. He takes his lorry loaded with market hogs to one of the few remaining medium-sized plants and tells the owner to take the pigs in, pay whatever he wants and whenever he wants. This, as Jim Long would say, “is not price supportive”! Prices, dropping weekly, are now around US$ 0.43 per lb live weight, against a production cost of US$ 0.57 or more.
 
In the pig producing states of the center and center-west of the country, the situation may be slightly less dramatic, but losses are still heavy. The state of Mato Grosso produces vast quantities of corn and soybeans. In some ways it is the Texas of Brazil – everything there is bigger, even the armadillos. A farmer with only 2,500 acres is considered a vegetable farmer. And the hog units are bigger too, with many having 3,000 sows upwards. Traditionally, the margin on hog production was good there, due to very low corn and soy meal prices, even though the price of hogs was slightly lower than other regions due to shipping distances.
 
But now the situation has changed. Due to high feed prices and an extremely low hog price (about US$0.50 per lb live weight), producers are losing about US$30 per head. On a 5,000 sow unit, that mounts up quickly and it has been going on for months. The state pig association is announcing the demise of pig production in the state.
 
São Paulo state has also traditionally had better prices than the south. But the market has collapsed there too, leading to prices of about US$ 0.49 per lb, with costs similar to those in the south.
 
There is an unprecedented joint effort by pig associations across the country, coordinated by the national pig producer association ABCS, to garner political support. As a result, there will be a public hearing in Congress in Brasília on July 12, attended by the considerable number of Deputies who support the agricultural lobby and producers from many states.
 
However, experience suggests that the outcome will have little effect. While producers dream of a “just price” for their hogs, Brazil’s market economy is determining this just price, which is very low due to constant over-supply of the market, largely due to the number of big units established by the integrators, squeezing the independent producer’s space.
 
And new lines of debt financing, another favored plea, if granted, will have the result of allowing producers to continue oversupplying the market at a loss, building up their debts even more.
 
With no light at the end of the tunnel, it seems to me that smart pig producers will cease production as fast as possible. This is what I decided to do, two years ago, but five or ten years later than I should have. I have not regretted it once since then. But I still grieve on seeing what the remaining producers are currently going through. I know the anguish they are suffering.
 
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« Reply #634 on: July 15, 2012, 05:12:05 AM »


Cautious Growth for Global Pig Meat Sector
09 July 2012


ANALYSIS - The long term outlook for the global pig market is good with higher prices according to market analysts from GIRA Richard Brown, writes Chris Harris.
 
Disease problems in Asia with foot and mouth disease in South Korea and PRRS in China have been beneficial for prices in the rest of the world.
 
However, Mr Brown speaking at the recent World Meat Congress in Paris said that pig meat production in China is recovering and Chinese import volumes are decreasing.
 
One threat that could disrupt the global market is African Swine Fever that is running wild in Russia and this could have a knock on effect to pig prices.
 
"The big question is 'When are the wild boars going to wander across the border into Europe and the eastern EU countries?'" Mr Brown said.
 
Another issue that is likely to affect the global pig market is the weather and the effect it will have on grain prices.
 
He warned that the weather could produce a bad harvest worldwide. Planting in North America was early, and there should be good yields, but he said that the weather could still affect it all.
 
Mr Brown also warned that the Euro zone crisis is also hitting the market together with the problems the producers are going to face meting the new regulations for loose housing for pregnant sows.
 
"This could cause price disruption in the second half of next year," said Mr Brown.
 
"There could be a big price rise next year."
 
Overall meat production is growing hitting 40 million tonnes but the growth of consumption in countries such as China is also pushing global consumption up. Global growth in pork consumption is expected to push it up to 11.2 million tonnes.
 
EU production is also expected to grow and rise by about 1.703 million tonnes while Chia will see growth of more than 6 million tonnes.
 
There is also going to be a long term growth in feed grain prices as long as some countries continue with their present biofuels policies that are taking grain away from feed.
 
Mr Brown said that the US is expected to see a gradual growth in production following the drop in consumption and consequent drop in production because of the scares over "swine flu".
 
In the EU, the German industry has benefitted from a 30 per cent expansion since 2000. Spain and Denmark have seen a 17 per cent rise in their markets and the Netherland a four per cent rise. However, Poland has seen a 21 per cent reduction in pig numbers.
 
The rise in Chinese imports of pig meat to meet the rising demand caused by an increasingly urbanised and wealthier population has mainly been supplied by Canada, the US and EU with a small amount coming from Brazil. Other exporters have been prevented from exploiting the potential of the Chinese market because of sanitary barriers, Mr Brown told the delegates.
 
In the past Brazil was reliant in the Russian market but that market has now been cut because Russia has sanitary concerns about Brazilian production.
 
To make up for the loss of the Russian market, Brazil is expanding into other markets such as China and other Asian countries.
 
While countries such as Russia and China have increased consumption, production and imports because of the rising wealth, prices have also increase greatly.
 
In conclusion, Mr Brown predicted that 2012 will be a profitable years for the global pig sector, but "with caution".
 





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« Reply #635 on: August 03, 2012, 08:47:24 AM »


This Week's Pig Industry News
30 July 2012


ANALYSIS - By far the leading topic in the news in the last week is the upward trend in feed prices. The effects of the present drought across much of the US on maize and soybean harvests have already been widely reported.
 Although the North American wheat harvest is looking good at this stage, harsh winter weather in the Russia, Ukraine and Kazakhstan have hit yields there and weather has also reduced harvests in other significant wheat-producing countries such as Australia, Argentina and Morocco.
 Four new outbreaks of African Swine Fever have been reported in the Russian Federation.

Prospects for global grain stocks and prices for 2012/2013 could be bleaker than some analysts are already predicting, according to a new report.
 
In May and then again this month, the International Grains Council cut its production forecast for wheat by five million tonnes to 665 million tonnes. This is more than 30 million tonnes below the estimates for the 2011/2012 harvest or a four per cent drop.
 
Much of the reduction in wheat production has been put down to the forecast poor harvest in the former Soviet Union countries – in particular Russia, Ukraine and Kazakhstan – where the harvest is expected to be 17 per cent down on the 2011/2012 estimates – a fall of about 24 million tonnes.
 
The European Union suffered a huge freeze during the winter and is expected to see a four per cent drop in its wheat harvest or five million tonnes although, according to France AgriMer, the EU’s own forecasts are less pessimistic, reducing production by just two million tonnes.
 
These falls in production have to be added to the poor harvests in countries such as Australia, Argentina and Morocco, where wheat production could be reduced by as much as 40 per cent because of drought. Australian wheat production is expected to be reduced by 19 per cent to 24 million tonnes, and Argentina will be see a drop of 14 per cent to 11.5 million tonnes.
 
By contrast, North American wheat production is forecast to rise with the US expecting an 11 per cent rise and Canada a five per cent rise, producing a total of around 87 million tonnes.
 
As reported previously, drought across much of the US, however, is likely to hit the corn harvest hard and soybean volumes will also be down unless rain falls in the coming weeks.
 
Dry conditions are increasing feed prices and quickly spelling financial disaster for livestock producers, according to Purdue agricultural economist, Chris Hurt.
 
Lower harvests will inevitably raise feed prices. However, according to a Texas AgriLife Extension Service economist, the future of corn prices and the impact on fed livestock continue to form an unfolding, tumultuous situation but they have not reached crisis point – yet.
 
Continuing hot, dry weather and the continuing rise in feed prices. Corn and soybean prices have reached record levels in recent weeks, with corn at times above $8 per bushel, soybeans above $17 per bushel and soybean meal above $550 per ton, report Ron Plain and Scott Brown of the University of Missouri.
 
Of course, many leading pig producers will have made plans to mitigate the risks of exposure to high prices. For example, the world’s largest pork producer, Smithfield Foods Inc. of the US has said it will import corn from Brazil, a move that reflects how surging costs for US feed grains are rippling through the livestock and meat industry.
 
In Brazil, the agriculture minister has set a minimum price of R$0.40 (US$0.20) per kilo of pigs. The measure aims to ensure the flow of production from producing regions and cover the cost of production of the sector. This is just one of a series of measures to be announced recently to alleviate the industry’s problems.
 
A modest improvement in pig prices in recent weeks is being overshadowed by a surge in feed prices in Scotland.
 
Australian feed grain prices increased dramatically in July, underpinned by developments in international markets.
 
The International Feed Industry Federation (IFIF) has voiced an urgent concern that the rise in feed and food costs will continue unabated for the foreseeable future, in large part due to the diversion of feed and food grains and oilseeds into biofuels. This will result in critical pressure on feed manufacturers worldwide and higher prices for consumers.
 
Changing the subject, three new outbreaks of African Swine Fever were reported by the Russian veterinary service in the regions of Krasnodar and Volgograd last week, and one new outbreak in Tver.






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« Reply #636 on: August 11, 2012, 09:28:03 AM »


African Swine Fever Threatens All Europe
08 August 2012


ANALYSIS - The spread of African Swine Fever from the Caucasus to the east coast of the Crimean peninsula in Ukraine presents an alarming and concerning situation, writes Chris Harris.
 
The latest outbreak, discovered at the end of July and confirmed through PCR tests on samples taken from back yard pigs in the Zaporozhye region, is worrying because it represents not so much a gradual spread of the disease, but a dramatic jump.
 
The outbreak has occurred 170 kilometres from the Russian border. Until now the disease has been found mainly in the Tver, Ivanovo and Rostov regions to the north of Moscow, Bryansk and Smolensk to the west of Moscow and the Volgograd and Krasnodar regions to the south as well as outbreaks in Georgia.
 
The furthest the disease had been found outside these regions where it has largely been confined to back yard farms and wild boar populations - although larger pig farms have been infected and have suffered severe losses - has been in the St Petersburg area where the incidence was traced to illegally dumped pig carcases.
 
The leap across the border is likely to mean that similar illegal transportation of pigs or pig meat products has taken place or that transport has travelled from infected regions without proper biosecurity measures being carried out.
 
The most concerning aspect of the latest outbreak in Ukraine, where three pigs on a back yard farm dies for the disease and two others were destroyed is that the disease has now spread to another mainland Eastern European country.
 
The veterinary authorities in Russia have freely admitted that the disease is out of control in the country. Virtually every inspection made on farms in areas that are supposed to have tight biosecurity and sanitary measures in force has found breaches of the regulation.
 
Prosecutions are common and even officials within the official veterinary agency Rosselkhoznador at local level have been found wanting in their enforcement of control measures.
 
Earlier this year the Food and Agriculture Organisation of the United Nations' Chief Veterinary Officer Juan Lubroth warned: "African swine fever is fast becoming a global issue.
 
"It now poses an immediate threat to Europe and beyond. Countries need to be on the alert and to strengthen their preparedness and contingency plans."

Measures recommended for countries by FAO include risk analyses to evaluate the situation and assess potential consequences. These analyses should pave the way for fully-fledged contingency plans and provide the rationale for selecting disease-control strategies.

Over the last year Denmark, Spain, the Czech Republic, Belarus and Croatia have all held simulation exercises to plan out what action to take in the event of an outbreak.
 
And the concern over the present incidence in Ukraine has placed other EU countries on alert.
 
The German Agriculture Ministry this week warned: "This epidemic in the Russian Federation and other neighbouring states has been rife for a long time and there is a risk that it might be introduced into the European Union. Already a number of measures at national and EU level have been taken to prevent this.
 
"At the external borders of the EU increased checks are being carried out and contingency plans to combat animal diseases have been adjusted."
 
Measures that have been taken include the ban on the import of live pigs and pork products from affected countries into the EU.
 
However the German Agriculture Ministry has warned that the pathogen can be carried on food such as pork, raw sausages and salami if they are brought in from regions that are at risk and the disease can be passed on in food waste and through the wild boar population.
 
The Federal Ministry of Food, Agriculture and Consumer Protection warns "Bring no such food from areas affected with the African swine fever."
 
Following the Ukraine outbreak a report from Dr Helen Roberts for the UK's Department of Agriculture Food and Rural Affairs also warns that its cause is likely to be the movement of pigs, pig products or vehicles.
 
"The source of disease is not known but if genetic sequencing is carried out and shows the close relationship with the strains in the Caucasus, that will indicate movement of products in all likelihood either by road or by sea into this area. This latest jump is not entirely surprising, but does raise the issue of controlling imports of animal products and instigating swill feeding bans in backyard premises," Dr Roberts reports.
 
She adds: "We consider that the risk of introduction by legal trade in susceptible livestock or products is negligible as EU rules prohibit imports of such trade from Ukraine. It is therefore important to uphold the ban on swill feeding, to ensure adequate cleansing and disinfection of vehicles returning from infected regions and safe disposal of catering waste.
 
"Importing meat or meat products (including ham, salami, sausages and other delicacies) from Ukraine as personal imports is illegal and it is important that this control measure is observed.
 
"As we have previously stated, countries and regions where certain risk factors, such as a high proportion of backyard pig farms, wild boar contact, suitable vector (Argasid tick) populations or practicing swill feeding are at greater risk than those EU MSs with mainly high biosecurity commercial pig farms (such as the UK). Nevertheless, the persistence and geographic spread of ASF makes it a threat to the whole of the EU and it is imperative that control measures are applied effectively and regular exchange of information and expertise is maintained."






Chris Harris, Editor-in-Chief
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