Canadian Pork Producers:

[mikey]

Research: Pigs Raised in Large Groups Handle Easier
CANADA - Bruce Cochrane writes that research conducted at the Prairie Swine Centre indicates pigs raised in large groups are much easier to handle than those raised in small groups.
Farm-Scape is sponsored by
Manitoba Pork Council and Sask Pork
 
Researchers at the Prairie Swine Centre in Floral, Saskatchewan have been studying the behavior of pigs raised in large groups for the past seven to eight years.

That work and reports from industry indicate during shipment pigs raised in large groups handle differently than those raised in small groups so a study was conducted to evaluate the ease of loading and the effect of transportation on meat quality.

Dr. Harold Gonyou, a research scientist in ethology, says several hundred pigs were involved, 240 of which were used for data collection, with half raised in groups of 16 to 20 and half raised in groups of 240.

Dr. Harold Gonyou-Prairie Swine Centre
There were some differences in terms of how they handled being loaded.

They both responded to stress.

We would see similar kinds of physiological response among the animals but the animals from the large groups loaded faster.

We reduced our loading time by about a third for loading those pigs.

In both groups we loaded groups of four pigs at once and measured how long it took them to go up the ramp and onto the truck.

We found that we used about the same amount of force moving each group of pigs.

There was a little difference in terms of their heat stress or their response that you would in terms of breathing and red skin et cetera.

We saw less of that within the pigs that came from the large groups.

Dr. Gonyou observes pigs raised in large groups are more willing to investigate and travel and they interact with other pigs better than those raised in small groups.

He says reports have suggested the meat from pigs raised in large groups is better than from pigs raised in small groups but this study did not show that and there have been suggestions death losses during transport will be less among pigs raised in small groups but this study was not large enough to assess that.

[mikey]

Pork Commentary: National Pork Industry Conference Report
CANADA - This week's North American Pork Commentary from Jim Long.
 
You did not have to look much beyond the agenda of the National Pork Industry Conference to see an industry if not in retreat at least one that is playing in defence rather than attack.

Agenda

Euthanasia (not sure pig or producer)
Sow housing (group versus stalls)
Meat safety
Corn Ethanol (government moonshine)
Bankers and financing challenges (running out of money)
Whistle blowers for policies (PETA infiltrators)
Environment (cap and trade)
Animal welfare (PETA, HSUS)
Washington Administration (lack of government support for livestock)
Risk Management (code for trying to limit losses)
Profit picture (lack of)
Swine Flu (H1N1) or (CNN disease)
Cooperating Sponsor
To start we wish to commend the Graham- Shields Strategic Forums for organizing an excellently run conference. They can’t help it that we have an industry that one senior packer executive characterized as "the worst ever for producers." About 600 people representing 60 per cent plus of the USA industry attended.

Observations
There was a banker panel. Mark Greenwood from Ag Star recommended the liquidation of 500,000 to one million more sows in Canada – USA to get the industry profitable. Take home message to us: we are on our own, cash is king. Don’t expect help from banks. They don’t want to foreclose on farms as they worried what they would do with them. We never thought producers would be made to feel sorry for bankers. It was enough to make a statue cry.


From what we can determine from discussions producers on average have lost about 65 per cent of equity in the last two years. 65 per cent of producers outside of bank covenants with about 20 per cent really outside covenants. It's ugly.


The banker panel encouraged the idea of group liquidation and group market organization. We are not sure if it was socialistic but we had a sense that when we were in Russia there is more free enterprise than the borderline collusion that was being proposed. All a waste of time. We are an industry of thousands of individuals or groups making individual decisions. It is not going to change. When the story of organized chicken liquidation is put forward the story fails to mention the largest USA chicken producer Pilgrim Pride went broke. That’s not exactly planned supply management. You run out of cash, you liquidate. It is not complicated. We are afraid it’s like the Bruce Willis movie "Last Man Standing" keep shooting until the end.


The tone and atmosphere of the conference was negative. People who own hogs are scared. They have lost money and all are looking for hope. In our opinion there was little said at the conference that would send people home enthused and positive. The brutal facts of the market place compared by topic upon topic of industry challenges were in the most part disheartening.


One positive we picked up talking to producers from all across North America was the general belief that the corn and soybean crop is in good shape and lower corn prices below $3.00 per bushel are helping out losses. There is no fear of crop failure or suddenly higher grain prices.


John Ferrell, Deputy Under Secretary for Marketing and Regulatory USDA spoke and took questions. He has a great career in politics. When asked about the Corn Ethanol effect on livestock the convoluted non – answer was classic. Politics as usual. He probably couldn’t wait to get back to the cocoon of Washington as fast as he could. As he said they have a lot of meetings in D.C. Unfortunately, Mr. Ferrell did not come across as a champion of US livestock production.


We met with several members of the National Pork Board. We have to give them credit; they are prepared to be engaged. They face a huge challenge with the huge losses – producers are encountering. We hope they can step up and provide leadership for our reeling industry. They have the mandate and the funding.


On a self serving note, we are really happy. A week ago, a Genesus customer, Good Hope (we like customers with positive farm names) received the award from Canada’s largest meat packer Maple Leaf Foods for having the highest lean meat percentages for 12 months at Canada’s largest plant located in Brandon Manitoba which processes give or take 4.43 million head per year.
Good Hope’s Championship Results:
Average carcass weight: 93.21 Kgs (257 lbs live weight)
Average back fat: 14.6mm (.57 inches)
Average Loin Depth: 63.5mm (2.48 inches)
Average lean meat percentage: 62.38 per cent

Genesus Purebred Duroc boars bred to Genesus F1 Landrace/Yorkshire females generated the winning numbers. No PayLean was fed to Good Hope’s hogs. Genesus delivers more pigs and better pigs. Congratulation Good Hope!

Summary
The National Pork Industry Conference reiterated the negative attitude we sense throughout the industry. There is little optimism; there is little faith in the future. Attrition of the sow herd continues. There is mostly doom and gloom.

Markets are driven by supply – demand and psychology. There is little to boost market from psychology. Swine flu (H1N1) continues to be used in the media. The reputation of our industry name being associated with death is not a demand driver. Pork meat sales have to overcome the first objection "will pork kill our customers" they certainly start in a hole. It is a huge negative to price enhancement and market momentum.

One disappointment we had at the conference was the lack of positive solutions. It’s supply/demand. Supply is being cut. The America we believe in is one of optimism. Offence versus retreat. If you want to increase demand, you have to sell. Add salesmen, advertising, and a market that pushes demand. Sitting around wringing your hands feeling sorry for yourself waiting for the phone to ring doesn’t work. The pork industry we thought we knew was aggressive. We travelled the world. There is no better place in the world to raise hogs and process pork. We have the people, knowledge, scale, feed, land, genetics, capital, packers, and logistic ability to compete economically with any swine industry in the world. We have huge advantages. We know it is tough. We are all losing money but let’s rather than think smaller think the American way. Sell, sell, sell! Push back into export markets. Work on developing more food service demand. It’s not just supply but demand. A small percentage increase in exports or domestic demand coupled with smaller supply is price enhancing. The contraction proponents as the only solution are defeatist. They have no vision other than retreat. We need to push and sell. It’s not only supply. Offense not defense! Forward not retreat!

"Damn the torpedoes full speed ahead!" That’s the America we know.

Good Hope Farms with No.1 Award in the Canadian Pork Industry
Maple Leaf Foods, Canada’s Largest Meat Company, at their annual producer banquet on July 15th 2009 recognized long time Genesus Customer, Good Hope Farms with No.1 Award in the Canadian Pork Industry:

BEST CARCASS for a Calendar year at Maple Leaf

BEST CARCASS out of 4.43 million market hogs that Maple Leaf processes per year at there Brandon Manitoba Plant.

Genesus Congratulates Good Hope Farms for these award winning results.

Genesus Duroc Boars and f1 Yorkshire/Landrace Females generated this winning data.


Author: Jim Long, President & CEO, Genesus Genetics 

[mikey]

Management of Pandemic H1N1 in Swine Herds
CANADA - The Canadian Food Inspection Agency (CFIA), in collaboration with stakeholders, trading partners, and the public and animal health communities, has refined its approach to managing cases of the pandemic H1N1 2009 virus in swine.



This approach is consistent with the recommendations of the World Organisation for Animal Health (OIE), and is based on research and observations made since the virus was first detected in swine, which indicate:

There is no food safety risk associated with the virus;
There is no evidence at this time that animals are playing a significant role in the spread of the virus in the general human population; and,
The virus does not behave any differently in pigs from other influenza viruses commonly detected in swine herds.
Based on this knowledge and information, the CFIA will not quarantine herds. Affected animals will be managed using the same veterinary management and biosecurity practices employed for other swine influenza viruses. This includes limiting opportunities for virus to spread to susceptible animals. Canada’s slaughter system contains multiple inspection points to ensure that only healthy animals enter the food supply.

All herds in which the virus is detected will be monitored to verify that infected animals recover. In addition, surveillance for the presence of H1N1 in swine will continue, to detect any changes in how the virus affects swine and to identify any changes in the structure of the virus. Producers are encouraged to reinforce biosecurity measures at their facilities.

This approach is supported by Provincial and Territorial authorities and the Public Health Agency of Canada.

[mikey]

US Must Match Canadian Swine Reductions
CANADA - The Saskatchewan Pork Development Board says reductions in Canadian pork production will have to matched in the United States to have any impact on North American live hog prices, writes Bruce Cochrane.





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

Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 
With the cost of pork production running at about 1.65 per kilogram and hog prices in the range of 1.15 to 1.20 per kilogram Saskatchewan's pork producers are losing 45 to 50 dollars per pig at time of year when they would normally expect to be making money.

Sask Pork chair Joe Kleinsasser says we obviously need less pork but producers are involved in the biggest game of chicken you've ever seen with everybody waiting for the other guy to blink.

Joe Kleinsasser-Saskatchewan Pork Development Board
Statistics indicate that the Canadian sow herd has declined six per cent this year from last year and nearly 12 per cent since 2007.

The United States breeding herd has declined by less than four per cent so that's a third of the per centage cut in Canada and yet the NPPC is blaming Canadian production for what ever's not going good down there.

Obviously no matter how many pigs we cut down here really doesn't mean anything when you consider that the state of Iowa produces more pigs than the entire country of Canada.

So the production cuts have to come in the United States for it to mean anything.

I think what has happened up to this point is that increased production efficiency has pretty much negated the sow slaughter but we're probably from here on in going to see that it's picking up to the point where not even productiin efficiency gains can compensate for that and that's is where we need to get to.

Unfortunatly nobody wants to cut down but right now there's too many pigs in North America and that's the long and the short of it.

Mr Kleinsasser points out summer is usually the most profitable part of the year for pork producers but there's just not a big enough demand for all of the pork that's out there.

He says the scary part is there is generally downward trend in prices heading into the fourth quarter.

[mikey]

Pork Commentary: National Pork Industry Conference Report
CANADA - This week's North American Pork Commentary from Jim Long.

You did not have to look much beyond the agenda of the National Pork Industry Conference to see an industry if not in retreat at least one that is playing in defence rather than attack.

Agenda

Euthanasia (not sure pig or producer)
Sow housing (group versus stalls)
Meat safety
Corn Ethanol (government moonshine)
Bankers and financing challenges (running out of money)
Whistle blowers for policies (PETA infiltrators)
Environment (cap and trade)
Animal welfare (PETA, HSUS)
Washington Administration (lack of government support for livestock)
Risk Management (code for trying to limit losses)
Profit picture (lack of)
Swine Flu (H1N1) or (CNN disease)
Cooperating Sponsor
To start we wish to commend the Graham- Shields Strategic Forums for organizing an excellently run conference. They can’t help it that we have an industry that one senior packer executive characterized as "the worst ever for producers." About 600 people representing 60 per cent plus of the USA industry attended.

Observations
There was a banker panel. Mark Greenwood from Ag Star recommended the liquidation of 500,000 to one million more sows in Canada – USA to get the industry profitable. Take home message to us: we are on our own, cash is king. Don’t expect help from banks. They don’t want to foreclose on farms as they worried what they would do with them. We never thought producers would be made to feel sorry for bankers. It was enough to make a statue cry.


From what we can determine from discussions producers on average have lost about 65 per cent of equity in the last two years. 65 per cent of producers outside of bank covenants with about 20 per cent really outside covenants. It's ugly.


The banker panel encouraged the idea of group liquidation and group market organization. We are not sure if it was socialistic but we had a sense that when we were in Russia there is more free enterprise than the borderline collusion that was being proposed. All a waste of time. We are an industry of thousands of individuals or groups making individual decisions. It is not going to change. When the story of organized chicken liquidation is put forward the story fails to mention the largest USA chicken producer Pilgrim Pride went broke. That’s not exactly planned supply management. You run out of cash, you liquidate. It is not complicated. We are afraid it’s like the Bruce Willis movie "Last Man Standing" keep shooting until the end.


The tone and atmosphere of the conference was negative. People who own hogs are scared. They have lost money and all are looking for hope. In our opinion there was little said at the conference that would send people home enthused and positive. The brutal facts of the market place compared by topic upon topic of industry challenges were in the most part disheartening.


One positive we picked up talking to producers from all across North America was the general belief that the corn and soybean crop is in good shape and lower corn prices below $3.00 per bushel are helping out losses. There is no fear of crop failure or suddenly higher grain prices.


John Ferrell, Deputy Under Secretary for Marketing and Regulatory USDA spoke and took questions. He has a great career in politics. When asked about the Corn Ethanol effect on livestock the convoluted non – answer was classic. Politics as usual. He probably couldn’t wait to get back to the cocoon of Washington as fast as he could. As he said they have a lot of meetings in D.C. Unfortunately, Mr. Ferrell did not come across as a champion of US livestock production.


We met with several members of the National Pork Board. We have to give them credit; they are prepared to be engaged. They face a huge challenge with the huge losses – producers are encountering. We hope they can step up and provide leadership for our reeling industry. They have the mandate and the funding.


On a self serving note, we are really happy. A week ago, a Genesus customer, Good Hope (we like customers with positive farm names) received the award from Canada’s largest meat packer Maple Leaf Foods for having the highest lean meat percentages for 12 months at Canada’s largest plant located in Brandon Manitoba which processes give or take 4.43 million head per year.
Good Hope’s Championship Results:
Average carcass weight: 93.21 Kgs (257 lbs live weight)
Average back fat: 14.6mm (.57 inches)
Average Loin Depth: 63.5mm (2.48 inches)
Average lean meat percentage: 62.38 per cent

Genesus Purebred Duroc boars bred to Genesus F1 Landrace/Yorkshire females generated the winning numbers. No PayLean was fed to Good Hope’s hogs. Genesus delivers more pigs and better pigs. Congratulation Good Hope!

Summary
The National Pork Industry Conference reiterated the negative attitude we sense throughout the industry. There is little optimism; there is little faith in the future. Attrition of the sow herd continues. There is mostly doom and gloom.

Markets are driven by supply – demand and psychology. There is little to boost market from psychology. Swine flu (H1N1) continues to be used in the media. The reputation of our industry name being associated with death is not a demand driver. Pork meat sales have to overcome the first objection "will pork kill our customers" they certainly start in a hole. It is a huge negative to price enhancement and market momentum.

One disappointment we had at the conference was the lack of positive solutions. It’s supply/demand. Supply is being cut. The America we believe in is one of optimism. Offence versus retreat. If you want to increase demand, you have to sell. Add salesmen, advertising, and a market that pushes demand. Sitting around wringing your hands feeling sorry for yourself waiting for the phone to ring doesn’t work. The pork industry we thought we knew was aggressive. We travelled the world. There is no better place in the world to raise hogs and process pork. We have the people, knowledge, scale, feed, land, genetics, capital, packers, and logistic ability to compete economically with any swine industry in the world. We have huge advantages. We know it is tough. We are all losing money but let’s rather than think smaller think the American way. Sell, sell, sell! Push back into export markets. Work on developing more food service demand. It’s not just supply but demand. A small percentage increase in exports or domestic demand coupled with smaller supply is price enhancing. The contraction proponents as the only solution are defeatist. They have no vision other than retreat. We need to push and sell. It’s not only supply. Offense not defense! Forward not retreat!

"Damn the torpedoes full speed ahead!" That’s the America we know.

Good Hope Farms with No.1 Award in the Canadian Pork Industry
Maple Leaf Foods, Canada’s Largest Meat Company, at their annual producer banquet on July 15th 2009 recognized long time Genesus Customer, Good Hope Farms with No.1 Award in the Canadian Pork Industry:

BEST CARCASS for a Calendar year at Maple Leaf

BEST CARCASS out of 4.43 million market hogs that Maple Leaf processes per year at there Brandon Manitoba Plant.

Genesus Congratulates Good Hope Farms for these award winning results.

Genesus Duroc Boars and f1 Yorkshire/Landrace Females generated this winning data.


Author: Jim Long, President & CEO, Genesus Genetics 

[mikey]

Study to Influence Pen Configuration and Group Size
CANADA - Research conducted at the Prairie Swine Centre is expected to assist hog producers in deciding penning configurations and group sizes, writes Bruce Cochrane.





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

Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 
A study conducted at the Prairie Swine Centre at Floral, Saskatchewan has confirmed pigs raised in large groups handle much easier than those raised in small groups.

During the study pigs raised in groups of approximately 240 loaded about 30 percent faster than pigs raised in groups of 16 to 20 and exhibited lower signs of stress such as labored breathing and redness.

Dr. Harold Gonyou, a research scientist in ethology, expects the findings to be of value to producers deciding how to raise their pigs.

Dr. Harold Gonyou-Prairie Swine Centre
Certainly one of the things that we've had people ask us about is how easy is it to handle these pigs from large groups?

They're concerned that just getting them out of the pen et cetera will be more difficult.

What we found was that that's not really the case and that they do move easily down the hallway and up to the point of going up the ramp.

It first of all says you're not going to have more problems with pigs from large groups and, in fact, you'll probably have less.

The pigs simply have different experiences in their life and they're more willing to investigate and to travel.

I think that the pigs in the large group certainly have a different social pattern.

They interact with other pigs much better than do pigs that come from small groups.

There's no aggression et cetera when they meet with other pigs and I think part of that also relates probably to the fact that they're exploring that large pen as well.

They're used to walking longer distances and traveling more and just getting to know a larger space whereas pigs from the small group are from a very restricted area and I think there may be a bit of fear when they leave their pen.

Dr. Gonyou notes additional studies are looking the handling and transport of pigs going to market and researchers are looking at designing facilities to make them low stress which would be advantageous to all pigs but especially pigs from the larger groups.

[mikey]

Pork Production Versus Consumer Demands
"With the high production costs in Canada, what can we do to build a long term competitive industry?" asked Mario Lapierre of Génétiporc Inc. at the London Swine Conference 2009.


Introduction
The Canadian pork industry has been challenged for the last three years. Producer margins have been negative during the last three years. This crisis is not limited to pork producers; processor margins have been largely negative for the past three years.

The crisis is due to the convergence of different factors:

the rapid rise of the Canadian dollar
rapid rise of input costs – notably feed grains
production increase all around the world, and
the lack of processor competitiveness in Canada.
In global terms, Canada is a relatively small player ranking sixth in terms of pork production behind China, EU-27, US, Brazil and Russia. But Canada’s industry is considerably more dependent on the export market with our reliance growing from 35.4 per cent of production exported in 1999 to 55.8 per cent in 2007.

Furthermore, USDA estimates the 2007 Canadian pig crop at 31,832 million head with 10,032 million (31.53 per cent) exported to US as early wean, feeder and slaughter hogs (Ron Plain, Global Price and Production Forecast, Banff Pork Seminar 2009). Of total production, the needs for Canadian customers are not more than 9.6356 million, which means around 70 per cent of pigs born in Canada are produced for export markets.

Our industry is very dependent on Canadian exchange rate and export market.

With the production cost we have in Canada, what can we do to build a long term competitive industry?

Do you know what the customer wants and can we produce it at the best price?

Different Market Trends: Niche Terms and Attributes
Niche terms and attributes: what do they really mean?
Some of the niche terminology used to describe alternative or specialty meat product attributes today are better understood than others. Some terms have consistent meaning from person to person. Others may mean different things to different people.

Labelling requirements can be broad. So if you’re looking for specific niche attributes, check the label to see if they’re listed. That, along with a basic understanding of USDA production/labelling requirements, will help you get what you’re looking for.

Some of the popular attributes in the market today include:

Locally Grown – One of the more easily understood terms and without USDA guidelines attached, although what defines “local” may vary from one person to another. For some it may represent a drive to a farmer’s market, for others it may be a broader geographic region. The reasons why people support locally grown products (i.e. keep money in the community, know where food comes from, support agriculture) may influence their definition.

Free-Range – Also referred to as "pasture raised, free roaming and raised outdoors." The USDA standard to make this claim for pork is that hogs have had continuous access to pasture for at least 80 per cent of their production cycle.

No Antibiotics Used, Raised without Antibiotics – "No antibiotics added" on the label means that the animals were raised without using antibiotics and that documentation has been provided to USDA demonstrating this.

Natural – Pork products that meet compliance with USDA Natural Standards which means the product contains no artificial ingredients or added color and is only minimally processed. The label must explain the use of the term natural (such as no added colorings or artificial ingredients; minimally processed).

Naturally Raised – There is currently no USDA standard for making a "naturally raised" claim on pork products, and definitions may vary from one naturally raised pork product to another. Attributes that may contribute to a hog being "naturally raised" might include raised without antibiotics, growth promotants or animal by-products in the feed, use of deep straw bedding, raised outdoors, etc. These attributes will likely be stated on packaging or in marketing materials.

Organic – Pork products that meet compliance with USDA Organic Standards. This involves an entire process in which synthetic inputs into all phases of animal production, meat processing and handling are prohibited. Labelling rules have been established by the USDA for products claiming to be organic and include four categories.

 
 
100 per cent organic – Products produced exclusively using organic methods as defined by the USDA. Can carry the USDA organic certification seal.

Organic – 95 per cent or greater of the ingredients (by weight, excluding water and salt) are organically produced with the remaining five percent of ingredients on the National List of Allowed Synthetic and Prohibited Non-Synthetic Substances. Can carry the USDA organic certification seal.

Made with organic – 70-95 per cent of the ingredients are organically produced and would be displayed on the principle display panel as "Made with organic [specific ingredient(s)]."

Less than 70 per cent organic – These products have the option to include "X per cent organic" on the information panel and only need to list organic ingredients on the ingredient statement.

For more information on the National Organic Program, click here.

Breed Specific – Just as there are breed-specific beef products like Certified Angus Beef, there are breed-specific pork products. Sometimes referred to as heirloom or heritage breeds, examples in the marketplace today include Berkshire (also knows as Kurobuta meaning "black pig"), Duroc, and Tamworth.



Figure 1. How important are the following labels/phrases when selecting foods and beverages? (The Hartman Group Inc. study)

Natural and Certified humane overtakes in terms of importance when making a product purchase.
What Can We Do as an Industry to Supply Those Market Trends
There are two ways we can do to get out of the actual crisis is to reduce our cost of production and add value to our products.

duBreton Model of Production
Breton Foods Canada has developed during the last 20 years an integrated approach. Breton Foods Canada is first a pork producer who invests in R & D to build a sustainable model where we reduce cost of production and develop value-added products.

 


What we are doing to reduce the cost of production?
Our genetic division, Genetiporc, has developed genetics lines that are more prolific, faster growing and more efficient for feed conversion. But also because of our close relationship with the processing plant all our lines have to meet the standards for meat quality.

Genetiporc has the biggest portfolio of pure breed line and can adapt their products depending on the market place. It has developed over the years the largest pureline portfolio in the industry. Each breed has is own strengths and we believe that we must understand them to best utilise them. First, quality basic ingredients are always important in the success of any recipe, and our genetic team has understood that perfectly. Among other things, Genetiporc’s pureline portfolio is the ingredient of our successful genetic program.


Industry health leader
In the early 1980’s, health was not a concern for genetic suppliers. Mass vaccinations were common and there was almost no information available on the costs incurred by diseases. It was only after Genetiporc was founded in 1984 and provided the first assessments on the economic impact of major diseases on swine production that the industry began to seriously examine the problem.

Genetiporc’s health programme has been designed to minimise production cost for commercial farms. Creating and maintaining a production network free of primary diseases and their associated economic impact has guided Genetiporc’s efforts since its very foundation. The rigorous application of strict biosecurity measures constitutes a fundamental priority. Genetiporc’s team has developed a biosecurity “reflex” that has become second nature.

Hands-on approach
Buying breeding stock with exceptional health status:

facilitates the animal quarantine process
prevents the introduction of new pathogens, and
prevents the introduction of new strains of an existing pathogen into the herd
Maintaining a herd’s exceptional health status:

enhances feed conversion ability and growth rates
reduces expenses for medication and care
streamlines work processes and decreases task time, and
increases percentage of marketed pigs
Unparalleled health status

Rigorous biosecurity protocols, and
PRRS & Mycoplasma naïve network for over 20 years
Integrated R&D
As an integrated group, "We do what we sell":
The company’s vertical integration ensures that development is aligned with the increasingly specific needs of consumers and producers. It uses ties between nutrition, production, genetics and slaughtering at Genetiporc to capture value at each step of the production chain.

Be the more efficient pork producer:
Genetiporc will always keep exploring new ways to make improvements at every level of the production chain. By doing this, Genetiporc is representing the most efficient option for the producer.

Integrated company benefits
Partnership in genetics:
Exchange germplasm and technology with large innovative breeding companies worldwide Through strategic business partnerships Genetiporc is giving access to its customer to the best worldwide genetics available in the industry.

Develop common product adapted to customer needs:
Leverage strengths from each company and build a more efficient unparalleled product for the customer.


 

 

 

 

 

[mikey]

Pork Commentary: If Misery Loves Company, We Have Lots of Friends
CANADA - This week's North American Pork Commentary from Jim Long
The implosion in our industry continues. Prices continue to plummet with little optimism in the market place. If misery loves company – we’ve got it covered. Hourly, we hear of producers trying to stay afloat. Has it ever been worse? Probably not!

Other Observations
Usually at this time of year finisher barns are all full. Every old relic of a barn has hogs. Some barns are double stocked. If ever finisher barn inventory is reaching its zenith – it's this time of year. Not this year. Lots of barns are empty. Finisher barn contract prices are dropping to $25.00 per head space. A true reflection of supply and demand.

This summer there is no question it has been cooler than normal. Crops in many parts of the continent are two weeks behind maturation. The same reason crops are behind is why hogs are growing faster over the last nine weeks (June–July). What if hogs are four days ahead of a year ago due to growth rate? Four days is about one million hogs of growth. If somehow we had marketed one million less hogs over the last couple of months, what would that have done to the prices and market psychology other than push them up. What is the growth in your own barns? Have they ever been better in the summer?

There is more empty finisher space than a year ago. There is no debate, this is despite heavier hogs. If hogs were four pounds lighter, that would be about 600,000 more empty spaces. How many empty or not full finishers where you live? You only kill them once. One of these days the dog is going to hit the end of the chain. This is not soon enough for many.

Packers are making money now. That's good. Not long ago, packers and producers were losing money. We need to have a packing industry that can pay us. Packers need to have the cash flow to be aggressive marketers of our product domestically and internationally. Packers who are making money also have the confidence to own product and be hopefully less apt to dump product which just weakens the whole pork sector.

Mexico
We just returned from Mexico. Hog prices are 65 cents U.S. a pound live weight. Producers are making money. High feed prices over the last 15 months and then the swine debacle has cut Mexico's sow herd. A couple of years ago Mexico's sow herd was estimated to be one million sows. (There are no official statistics.) Now, some industry observers estimate that the Mexican inventory at 650,000 sows – a decrease of 35 per cent or 350,000 sows. That's probably why hogs in Mexico are 19.5 peso a kilo (65 cents US liveweight per pound) despite a US market $50.00 per head less and an open border for pork imports.

The decrease in sows has not hit fully the market place. As an industry for the most part, we market hogs from a sow inventory ten months prior to market hog shipment (biology). As sow inventories decrease there is a lag time. Mexico like Canada and the United States will have less hogs in the future. It sometimes baffles us why people forget the ten month lag. Sows do not just leave and all their offspring disappear.

Swine flu hit the Mexican market hard. For the first two to three weeks after the swine flu break, there was virtually no market for hogs as consumers stopped buying pork. Demand has started to recover but some packers are still running 50 per cent of capacity. Sixty-five65 cent hogs are a reflection of lack of supply versus demand. It would be our opinion as the H1N1 (unfortunately termed swine flu) threat diminishes pork demand in Mexico – and everywhere else will increase while supply declines. 65 cents now in Mexico. There is a lot of upside to Mexico's domestic prices and more pork export opportunities for US and Canada Packers.

Andean Countries
Before Mexico we attended Agroexpo, a trade show in Bogota, Colombia. There were visitors from the Andean countries of Colombia, Venezuela and Ecuador.

Colombian producers are making about $15 to $20 per head (65 cents U.S. per pound). There has been liquidation, swine flu has been a factor. High feed prices also impacted the industry. Poor pork demand. There is little advanced genetics in the country. Health regulations have kept the country behind genetically. The isolationist policy on swine genetics due to health barriers is keeping producers cost of production higher and globally less competitive.

In Venezuela, producers are making about $30 to $40 per head. Since swine flu, all pork and live hogs from other countries are banned. In the last year, there had been liquidation of the sow herd due to high feed prices and general economic issues. The surviving producers are currently in a profitable position. The trade bar seems bizarre when a government based on socialistic principles of ensuring a higher standard of living for the working class is not trying to improve industry productivity and meat protein availability for domestic consumption. It sounds like a contradiction to us.

Good Hope Farms with No.1 Award in the Canadian Pork Industry
Maple Leaf Foods, Canada's largest meat company, at their annual producer banquet on 15 July 2009, recognised long time Genesus customer, Good Hope Farms with No. 1 Award in the Canadian Pork Industry.

Best Carcass for a Calendar Year at Maple Leaf Foods means Best Carcass out of 4.43 million market hogs that Maple Leaf processes per year at their Brandon Manitoba Plant.

Good Hope Farms results obtained for 12 months (2008-2009):

Average carcass weight: 93.21 kgs (257 lbs livewt)
Average backfat: 14.6 mm (0.57 inches)
Average loin depth: 63.5 mm (2.48 inches)
Average lean meat percentage: 62.38 per cent
(No Paylean was used, although available)

Genesus congratulates Good Hope Farms for these Award winning results. Genesus Duroc boars and F1 Yorkshire/Landrace females generated this winning data. Genesus continues to set record setting results with the world's most productive genetic programme.


Author: Jim Long, President & CEO, Genesus Genetics 

[mikey]

Canadian Beef and Pork Penetrate Panama Market
GENERAL - Canadian beef exports will have access to Panama for the first time since 2003. Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, and Federal Agriculture Minister, Gerry Ritz, yesterday confirmed that Panama has approved Canada's meat inspection system and lifted the ban on Canadian beef imposed in 2003 because of bovine spongiform encephalopathy (BSE).



"The Government of Canada continues to fight for farmers by opening and re-opening markets abroad," said Minister Ritz. "I'm pleased to see that Panama recognizes that Canada produces safe, high quality beef and pork products and I encourage all countries in Latin America to open their doors."

"This is an important development in relations between our two countries," said Minister Day. "The opening of this market for Canadian beef creates opportunities that will make a difference to the bottom line for Canadian producers. It also shows this Government is committed to fighting for full access and fair treatment worldwide for Canadian business."

Approving Canada's meat inspection system and granting of access to Canada is important because it gives exporters the ability to ship beef and pork from all federally-registered Canadian meat establishments.

Prime Minister Stephen Harper met yesterday in Panama City with Panamanian President Ricardo Martinelli.

Canada and Panama concluded negotiations on a comprehensive Free Trade Agreement covering goods, services and investment, among other areas. Parallel accords on labour cooperation and the environment were also negotiated.

[mikey]

Expanded Herd Reduction Forecast for Fall Quarter
CANADA - Des Moines, Iowa based Paragon Economics is projecting deeper cuts to the North American sow herd as producers respond to increased feed costs and the recent large sell-off of lean hog futures, writes Bruce Cochrane.
 

Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 
North American hog producers have faced prolonged losses resulting primarily from a run-up in corn and soybean prices that began in 2006 and escalated in the fall of 2007 adding anywhere from 25 to 30 per cent to production costs while a strong Canadian dollar has intensified the losses in Canada.

Paragon Economics President Dr. Steve Meyer observes production has not gone down as much as the losses would dictate.

Dr. Steve Meyer-Paragon Economics
I think we're going to probably pull this breeding herd down 10 to 12 per cent from the level it was in October of 2007.

Canada has largely accomplished their share of that thing.

I think they're going to do a little bit more.

They're at 1.38 million.

I think they're going to go down into the 1.2s, I don't know if they'll get all the way to 1.2 million.

That means that the US herd needs to come down by somewhere around 400 thousand head from the 5.9 million that we had in June so we still have to cut back six to seven per cent here.

I think the Canadian herd is going to continue to decline for at least another year and the total that we need, I think, in North America is somewhere in the 6.8 range which is down from well up into the seven million range just a couple of years ago.

Dr. Meyer notes up until the last three weeks, especially in the United States, most of the reduction of the breeding herd, about two to three per cent over the past six quarters, has been made up for by increased productivity.

However he observes there are anecdotal reports that indicate more sows have moving to market over the last two to three weeks in response to higher feed costs and the sell-off of lean hog futures and he expects a much more sizable reduction as we move into September and into the fall quarter.

[mikey]

Pork Commentary: Is There Any Floor to this Market?
CANADA - This week's North American Pork Commentary from Jim Long.
 
Cash and Lean Hog Futures Collapsed last week
Friday, 7 August
Iowa - Minnesota 48.21
August Futures 48.80
October Futures 44.90
December Futures 44.05

If the Lean Hog Futures are a reflection of where cash will be this late summer, fall and early winter looks like a $40.00 per head loss for the next six months. That would multiply to a further $2.5 billion in losses in our industry (Canada – USA 2.5 million hogs marketed a week x 40 x 26 weeks = $2.5 billion). According to the NPPC, since September 2007 the USA pork industry has lost nearly $4.4 billion with producers losing an average of $21.37 per pig over the past 21 months. Any way you cut it what has happened and what could happen is an aggregate, production loss of $6.5 - $8.0 billion. If it all plays out we are going to have a lot less sows six months from now. Example: $2.5 million dollars or a loss of $1000 per sow the staying power of many producers is at the breaking point.

Other Observations
Gilt slaughter data from the University of Missouri does indicate that the per centage of total slaughter accounted for by gilts remains high, averaging 50 per cent since May 1 that is 0.5 per cent higher than the average for the time period over the last 10 years. A gilt per centage of 49.2 to 49.4 are about equilibrium. Some arithmetic. 2 million market hogs a week - .5 per cent decrease in gilt retention are 10,000 fewer gilts a week being retained. A .8 per cent decrease is 16,000 fewer gilts a week being retained. The 3 months since May 1st could be 120,000 to 200,000 fewer gilts retained. A definite sign of liquidation.


The small pig US cash market has collapsed. Last week weaned pigs were $1 - $17.00 that is an average of $11.02. 40 pound feeder pigs $10 -$30 that is an average of $23.16. On the August 7th DTN feeder pig livestock margin calculation a 40 pound feeder pig would have to be bought for 9 cents to breakeven finishing them for December delivery. How ugly is that!?


Retailers in June averaged $2.954 per pound for pork – that’s up 2.1 cents per pound from last June but hogs averaged $40 per head less this June compared to last. On one side it’s a huge positive that despite H1N1 and lower pork exports the retailers were able to enhance their prices while selling more pork. It’s a reflection of positive demand from the consumers. On the other hand, it totally ticks us off that we have friends and customers losing their farms while retailers fill their pockets like greedy pigs prospering on other people’s misery. So much for vertical co – operation. It’s raw Darwin business. Dog eat dog. Our one hope is the high retail price gives us the ability to push prices up quickly when hog supply drops and exports pick up.
$50 million in pork purchases for government feeding programs.
Remove the spending cap for additional purchases
Push China to open up for more pork imports (H1N1).
This letter is a reflection of the state of our industry.


Hog weights are up significantly. On the other hand the last two months have been uniquely cool. The same reason corn is behind in maturation is why hogs have grown faster. No one knows for sure the total equation of weight versus weather but we do know you only harvest them once. We expect hog numbers and weights to moderate as weather becomes more seasonal.


The world's largest Government owned swine farm, Big Sky reportedly is liquidating 8 - 10,000 sows. (approximately 50,000 down to 40,000). Note to Saskatchewan Government: keep going, do yourself and every independent producer a favor - get totally out! Government hog farms are an oxymoron.
Summary
Last week's price implosion and dismal future prospects has triggered a day of reckoning. We hear of decisions to liquidate. Sow packers are filling up. We know gilt retention is down. It is really tough, it's a crisis, but we believe survivors will be rewarded.


Author: Jim Long, President & CEO, Genesus Genetics 

[mikey]

Canadian Govt Supports Hog Industry Restructuring
CANADA - The Government of Canada is delivering a comprehensive restructuring plan for pork producers by investing in key marketing initiatives to get more customers buying Canadian pork, providing government-backed credit to help viable operations weather the current economic uncertainty and helping struggling operations to transition out of the industry.



"We know Canadian hog producers can become profitable again, but we have to face tough realities to make our pork industry lean and competitive," said Agriculture Minister Gerry Ritz. "Some operations simply aren't viable any more and we are going to help them transition out of the industry and reduce production. Some operations need access to credit to weather the current economic storm and we are providing government-backed loans to help them restructure. Farmers want to make their living in the marketplace and we're investing in marketing to find new customers for Canadian pork and make our pork industry successful for the long term."

The new initiatives announced on Saturday (15 August) include:

An International Pork Marketing Fund of $17 million for market research, promotion and access initiatives to find new customers for Canadian pork products.


Long-term loans with government-backed credit that financial institutions can offer to allow viable hog operations to restructure their businesses. These long-term loans will be provided at market rates. Producers with sound business plans will be able to access short-term credit for operating costs such as feed and payroll.


A Hog Farm Transition Program to allow producers to tender bids for the amount of funding they need to transition out of the hog industry and cease hog production for at least three years. This program will invest up to $75 million to gradually reduce production and oversupply issues.
Agriculture and Agri-Food Canada officials are working closely with the pork industry and financial institutions to finalize program details. These new initiatives respect Canada's commitments made under international trade agreements and ensure Canadian pork producers will continue to have access to market opportunities around the world.

"We're standing with Canadian pork producers as they restructure and streamline the industry to adjust to new market realities," said National Revenue Minister Jean-Pierre Blackburn, who also serves as Minister of State for Agriculture. "These investments will rebuild the Canadian pork industry for the long term and we will continue to work with pork producers as they restructure their operations."

CPC Pleased with Government's Commitment
Canadian pork producers are pleased to see the federal government’s commitment to the hog industry through the launch of the above programs.

"The impact of the world pandemic caused by the H1N1 virus has delayed the prospects for price recovery in hog markets. This is the latest blow to an industry that has faced serious challenges over the past few years, including high feed costs, high exchange rates and US public policies," says Jurgen Preugschas, Chair of the Canadian Pork Council (CPC). "The industry has responded through dramatic re-structuring and a commitment to a Strategic Transition Plan. Today, the government is lending a hand."

The International Pork Marketing Fund, the third program, will build a strong foundation for the future of the industry by helping to drive demand for Canadian hog and pork products with Canada’s international trading partners.

"CPC will continue to work closely with Agriculture and Agri-Food Canada and will continue to respect our working relationships with the international community," says Mr Preugschas. "As the transition plan is implemented, a leaner, greener and more innovative industry will emerge – one that is prepared to capitalize on both domestic and international opportunities."


 

[mikey]

Pork Industry Restructuring Package Trade Neutral
CANADA - The chair of Manitoba Pork Council says there was a considerable amount of effort to ensure a Canadian pork industry restructuring package would not have negative trade implications, writes Bruce Cochrane.





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

Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 
This past weekend the federal government unveiled a restructuring plan for Canadian pork producers which includes interest bearing government backed credit, incentives to help struggling operations transition out of the industry and funding for international pork marketing initiatives.

Manitoba Pork Council chair Karl Kynoch says the government was careful to minimize trade implications.

Karl Kynoch-Manitoba Pork Council
We've had a lot of threats come out of the US about a package or assistance coming to the industry but, you know what, this package that has come forward is nothing different than is actually being offered to the producers in the US.

We've basically been offered a loans program.

Most of the money has been offered in some sort of form of loans, just backing up at the banks a little bit, so basically everything that comes out of there will have to be paid back by producers.

The other part of it, which I would imagine our American counterparts will be very happy with, but there's another 75 million been offered to help some producers exit the industry and actually close down their barns.

The one thing that's different about this is before we had a sow buy-out program but this time it's being offered to the weanling barns, the feeder barns and the sow barns so it's being offered to the industry as a whole and that should be very positive with our U.S. counterparts.

They've also put 17 million dollars towards developing more export markets around the world and that's very important because here in Canada we're very reliant on export markets around the world.

What we need to do is really concentrate, for example, in Japan, China, some of these export markets and diversify some of the interests from the US to other markets which also goes a long ways into helping reduce the risk of trade action and that but, again, this industry is very heavily dependent on exports.

Mr Kynoch says the weekend announcement provides an indication to producers of what will be available as they make some tough decisions.

He expects further details to be ironed out over the coming month and further announcements in September.

[mikey]

Restructuring Package Expected to be Beneficial
CANADA - The Saskatchewan Pork Development Board expects the benefits of a federal pork industry restructuring plan to spin throughout the provincial economy, writes Bruce Cochrane.





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

Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 
This past weekend the federal government unveiled a pork industry restructuring plan which will include government backed credit, incentives to help struggling operations transition out of the industry and funding for international pork market development.

Sask Pork general manager Neil Ketilson says historically pork production in Saskatchewan has been profitable but a combination of factors over the past two to three years, including the high value of the Canadian dollar, high feed costs fueled by competition from the ethanol industry and higher transportation costs due to the loss of the Mitchell's plant have made it challenging for producers to make ends meet.

Neil Ketilson-Saskatchewan Pork Development Board
Pork production has been a very profitable business over the last number of years.

If you look at back over the last 10, 15, 20 years there's an awful lot of people that have made their livelihoods and done very well out of the business.

We have about a 300 million dollar business in the province just with the sale of pork plus all the indirect kinds of economic activities that surround it, the feedmills, the veterinarians, the transportation services, a whole host of other things, so if you consider the spin-off of all of those things we are very significant to the agricultural economy.

I guess the other part of it is that we are very very important to a lot of the grain farmers out there in terms of a market for feed grains.

We traditionally are a long ways from markets for grains and therefor, anytime you can value add grains into a livestock product, we can do well and historically there's been very good profitability in the business.

Mr Ketilson says Saskatchewan's pork producers are adjusting to the new realities and, over time, he's convinced the challenges will work themselves out and the industry will become profitable again.

[mikey]

Ethanol Undermines Canada Hog Farm Rescue
CANADA - Canada's rescue plan for the hog industry will fail to work because the government continues to support ethanol production, the industry's rival for feed grain supplies, a report by an independent farm research centre said on Wednesday.



The Canadian government said on Saturday it will pay some farmers to stop raising hogs and offer loans to help others restructure. Canada's hog industry is in crisis, with high feed prices, a buoyant Canadian dollar, fears about H1N1 flu and a US food labelling law making pig farming unprofitable.

A mandate from the Canadian government, starting next year, that oil companies must market fuel with 5 per cent renewable content, has spurred rapid expansion of ethanol production. That's driving up prices of corn and feed wheat, from which ethanol is produced and which farmers feed to cattle and pigs.

"Rarely have two elements of Canadian public policy been so profoundly at odds with one another," the report from the George Morris Centre said. "...There is something singularly perverse about giving false hope and setting an industry up to fail."

About 1.7 billion litres (0.45 million gallons) of Canadian ethanol production exists or is planned, owned by companies like Husky Energy, Iogen Corp and Suncor.

Ethanol development in Canada will force farmers to import feed, which will become more expensive relative to US feed costs, said Al Mussell, the report's co-author, in an interview.

"The pork segment should see the grain-based ethanol industry for the menace it is," the report said.

American hog farmers are also struggling and blame ethanol expansion in part, reports Reuters.

But the Canadian industry is more vulnerable to higher feed prices because corn is a relatively small crop in Canada, while the US exports it, Mr Mussell said.

The government's aid package won the support of two of Canada's biggest farm groups, the Canadian Pork Council and Canadian Federation of Agriculture, which said the loans will give farmers time to regroup. Lower hog production is also seen as a way to support prices.