Canadian Pork Producers:

[Mustang Sally Farm]

Friday, December 23, 2011
JSR Purchases 650-Sow Nucleus Farm in Canada
CANADA - JSR's Nucleus Farm in Elstow, Saskatoon, Canada is now fully stocked producing our own GP1 and GP2 female lines alongside our Geneconverter 500 and Geneconverter 700 sire lines. Production is well underway and we are seeing some good production data.
 
 

Animals were taken from our Nucleus units both in the UK and abroad to ensure that customers and world partners will receive the same genetics from any one of JSR's Nucleus units.

The Elstow Nucleus will remain connected to the UK and other Nucleus units around the world, by the company's bespoke software JSR SELECT. This ensures that customers and world partners will receive the same genetics from any of its Nucleus units.

The Elstow unit is an excellent facility with some rather unique attributes not least the interactive viewing gallery which allows customers to see inside the unit without entering. The gallery has a one way airflow system from the pigs out, this ensures JSR maintains optimum high health of its stock.

[Mustang Sally Farm]

Thursday, January 05, 2012
Pork Commentary: Swine Industry Gets Support
CANADA & US - The North American Swine Industry is mostly situated where grain and soybeans are grown. The high price of these crop commodities has increased farm land values in North America in there grain and oilseed growing areas, writes Jim Long.


Jim Long is President &
CEO of Genesus Genetics.
It’s been estimated that in 2011 US prime farmland has increased in value 25 – 30 per cent. E.g. Iowa $6,500 an acre.

The USDA estimated that 236 million acres of the following crops were harvested in 2011. This included 92.3 million acres of corn, 75.2 million acres of soybeans, all wheat 56.4 million acres, and cotton 13.7 million acres. Let’s assume an average appreciation in the last year of $1000 per acre for the 236 million acres. This is our estimate, but we believe it is reasonable. Some land increased over $1000 per acre in market value and some less. If we use the $1000 per acre figure, it would calculate to a $236 billion dollar appreciation in US farm land value in one year! It is not cash but it is creating wealth, equity, and borrowing power.

As we said earlier, the USA and the Canadian Swine Industry is situated primarily where there grain and oil seeds are grown (Canada has about 60 million acres of crops if we use $500 per acre gain, this year $30 billion wealth appreciation in farmland).

We believe the wealth creation in farmland value is a factor buffering the low margins that the swine industry has been experiencing. It’s one of the reasons that despite hog to corn ratios below 15 to 1 for several months that we have not seen breeding herd liquidation. On the flip side the land value increase is not as prevalent for the poultry and cattle industries. Poultry is mostly raised by integrators who own little farmland. Chickens are also mostly in less prime crop areas. The huge losses of up to $100 million per week in the chicken industry have not been softened by farmland appreciation. Huge cattle feedlots have a similar scenario, being primarily outside the prime growing area.

Bottom line:
Increased US land value in cropland of over $200 billion in the last year is helping underpin the US swine industry. Going forward we expect this wealth creation to stimulate some sow expansion. Land values increasing will at some point top out and probably retreat. We were farming in the early 80s when farmland prices exploded higher they then retracted. Many farmers were hurt. The most dangerous words in the English language continue to be ‘This time it will be different!’

Markets
We have had our holiday season; holidays never seem to be good for hog prices as packers with fewer days to work have less pressure to bid. At the end of last week 53 – 54 per cent National Daily Base Lean Hogs were 82.57 cents per pound. At current feed prices no one can make money at that price.

Going forward we expect Cash Hog prices to get stronger as hog marketing’s decline seasonally. Summer month futures are in the mid 90’s and we expect they will recover to a $1.00 plus lean per pound. We believe this because of several factors: A real good chance of less beef and poultry tonnage in the coming months, as total US per capita meat supply decline. Continued strong if not record pork exports. While at the same time not a significant change in hog supply relative to the various demand factors. We believe 2012 hog prices will be strong – the wild card is what will feed prices do?

"As soon as there is life there is danger."
Ralph Waldo Emerson


Author: Jim Long, President & CEO, Genesus Genetics

[Mustang Sally Farm]

Wednesday, January 11, 2012
Pork Commentary: Interdependence in Global Market
CANADA - A decade ago US pork exports were next to non – existent. Now US pork exports account for about one out of every four hogs produced, writes Jim Long.


Jim Long is President &
CEO of Genesus Genetics.
As pork producers, our livelihood is truly dependent on our ability to access global markets. We need pork exports to remain strong to pull our pork prices higher. To do this the price of hogs in the importing countries is key. There is little chance that any country will import pork if their domestic prices are lower than the importing price. How are we positioned in China in 2012?

China
China’s domestic hog price is currently 17.35 rmb/kg which is $1.16 US live weight per pound - that is more than double the current U.S. hog prices. Price double tells us China is very short of pork versus demand.

China/Hong Kong pork imports are up 24 per cent in 2011. China/Hong Kong will import over 2.2 mmt of pork in 2011 from all countries. This is the equivalent of 9.8 million hogs, about nine per cent of US production or 1.4 per cent of Chinese production. We expect that with China hog prices over double US prices that China’s lack of supply will lead to continual strong exports from US, Canada, etc… in 2012.

China produced 571.21 million tons of grain in 2011 or about 20 billion bushels; China’s grain production has increased every year in the last five, gaining 2.5 billion bushels per year compared to five years ago.

China has 8000 domestic seed companies. Foreign companies such as Monsanto, Pioneer, have a small market share. These large number of Chinese seed companies have little capacity for research and development. There will be a big bump in China grain production with the use of better seed. We see the same situation in swine genetics. China has a large number of swine breeders but few with technologically advanced performance, selection, research and development. It is why leading Chinese swine producers are purchasing swine genetics from Genesus and other leading advanced global swine genetic companies.

China will continue to try and will probably in time be successful in increasing grain and swine production. But it won’t happen overnight. China’s 1.3 billion People eating 1 pound more pork per capita is six million more hogs needed. To keep it in perspective all imports of pork to China in 2011 were equivalent to 9.8 million hogs or about 1.7 pounds per capita. The bottom line is every North American pork producer’s livelihood is a lot better with a strong Chinese economy and their need for pork.

Other Countries
South Korea was devastated with Foot and Mouth (FMD) disease in 2011. There were about one million sows in the country but when the dust settled after FMD, there were 350,000 sows fewer plus their offspring were gone. Prices exploded reaching well over $500 per head. At Genesus we have been involved with supplying 1,000s of breeding animals to South Korea since the first of June 2011 and the air lift continues. The South Korean industry is still trying to recover. We expect little measureable increase in domestic South Korean hog supply before the fall of 2012. Until then, South Korea will remain a strong import market.

Japan has domestic hog prices of about $400 per hog. It is currently the highest value quality market for US – Canada pork. We expect little change. There are no dynamics in Japan that will increase domestic swine production. Japan’s pork import demand will be steady in 2012.

Mexico is one of the largest markets for US pork. The financial crisis of 2008 and high grain prices were key triggers to take Mexico’s swine production capacity down from one million sows to about 650,000. There has been no recovery in swine production. High feed prices continue, there is next to no agriculture credit in Mexico for expansion. There are about 100 million people in Mexico. In 2012 we see Mexico’s pork imports to stay strong and steady.

The Bottom line: We see no major reason for US – Canada pork exports not to remain excellent in 2012 pulling hog prices higher.
Coming Up
The week of 16 January we will be attending the Banff Pork Seminar and the following week of 23 January we will be at the Iowa Pork Congress. If you are at either please come visit at the Genesus Exhibit and you are invited to attend as our guest at the Genesus Reception – Banff at the Irish Pub Tuesday 17 January at 9 pm; and/or the Genesus Reception – Iowa at the Holiday Inn Mercy (across from the Convention Center) Wednesday, 18 January at 5 pm.

Summary
We are in a Global Market and we are interdependent. Maybe a few years ago when US pork wasn’t exported it didn’t matter. Now currency exchange, global pork price points, the global economic situation, supply capacity, etc… are huge drivers in our livelihood. Global Village is an overused cliché but it captures where we are at in the swine industry today.


Author: Jim Long, President & CEO, Genesus Genetics

[Mustang Sally Farm]

Thursday, January 12, 2012
Call for Action to Ensure Adequate Hog Supplies
CANADA - The Mayor of Brandon is urging the Manitoba government to take steps that will ensure the province's pork processors are able to access the supplies of hogs necessary to maintain the viability of their packing plants, Bruce Cochrane writes.


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

FarmScape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 

The Save Lake Winnipeg Act, passed in June 2011, contains new provisions aimed at reducing the amount of nutrients entering Lake Winnipeg including new restrictions on hog production.

Maple Leaf Foods and Hylife Foods have expressed concern over the impact the legislation could have on their ability to source the number of hogs required to maintain the capacity of their hog slaughtering plants.

Brandon Mayor Shari Decter Hirst says no one denies there are real issues with water quality in Lake Winnipeg but she suggests it's a multi-faceted issue.

Shari Decter Hirst-Mayor of Brandon
What we need to do is figure out how we can manage hog waste within the province better.

How are we going to be doing that so it doesn't impact the hog producer in a negative way?

Again there is some real pressures on hog producers to meet current environmental standards and I'm not saying they shouldn't be meeting environmental standards.

What I'm saying is let's figure out a way of doing it in an economical fashion.

We also need to understand though what the unintended consequences of that hog moratorium is on a community like Brandon, a community like Neepawa, any community that is relying on agriculture for its bread and butter because I don't believe that that was the intent.

Let's figure out how we can save the lake but how can we also do it and have a vibrant hog sector as well in our province.

Mayor Decter Hirst says it's easy to have a knee jerk response because of the significant consequences, but what we really need to do is look at it from a long term perspective, come up with the right solution for the lake, the right solution for producers and the right solution for Maple Leaf and the City of Brandon.

[Mustang Sally Farm]

Tuesday, January 17, 2012
Pork Commentary: Corn, Soybean, Weath Prices Drop
US - Corn, soybean, wheat prices all dropped last Thursday, Friday after the USDA released several grain inventory, production and usage reports, corn declined 60 cents a bushel, soybeans 46 cents a bushel, and wheat 46 cents a bushel, writes Jim Long in this week's Pork Commentary.


Jim Long is President &
CEO of Genesus Genetics.
All prices are lower due to world ending stock inventories higher than the so called market experts expected.

As we wrote last week we are in interdependent global markets. The US grain farmer pricing is not only based on what US production is alone. Wheat is a prime example the former Soviet Union FSU – 12 (including Ukraine, Russia, and Kazakhstan) are projected to produce 114 million tons of wheat in 2011/12 US wheat production 54.41. The FSU – 12 will be about 35 million tons more than two years ago. World wheat inventories are the highest they have been in ten years. Wheat is $6.00 a bushel on the March CME about the same as corn. Wheat is equivalent to corn in livestock rations.

We expect the large world wheat stocks will work as a check on preventing corn price spikes over the coming months.

Over the last year we wrote about observations in our travels:

We reported in our August trip to Russia – Ukraine the huge piles of wheat we saw because all grain storage was full. Russia producers are quite positive about their yields.


In our August trip from China the efforts underway to increase corn production. The USDA is projecting an increase of 28 million tons this year compared to two years ago or 1 billion more bushels. That is a 20 per cent increase.


When we were in India this summer we reported that India for the first time in many years it was legal to export wheat. The second largest population in the world now was surplus in wheat.


World grain producers have all benefited by US corn ethanol policies. Ethanol through subsidies has pushed US corn prices and subsequently world grain prices to record levels.
Like all commodities high prices stimulate increased production. More land planted, better equipment, better seed, fertilizer, herbicides, etc.

The USDA last week projected world corn production to increase in this crop year 41 million tons (868 – 827) or 10 per cent wheat up 40 million tons or (691 – 651) or about 15 per cent.

Global grain consumption levels we don’t expect to increase at 10 – 15 per cent levels in the next year. If this all plays out there are a good chance current grain prices have little upside – way more downside. The surest cure to high prices is high prices.

Other Observations
Some farmland recently traded near Sioux City Iowa at over $20,000 per acre. The US has 410 million acres of farmland. To maximize the value of high priced land, farming must be more intensive to get returns, that in itself will lead to greater yields and more production.


The US corn ethanol industry as of the first of January lost their $6 billion (approx) annual government subsidy. The moonshine industry is putting on a brave face saying that it doesn’t matter. As if! $6 billion that’s about a $1.00 per bushel of corn advantage that they had. As livestock producers we would notice a $1.00 a bushel, that $10.00 per hog difference in cost of production. The corn ethanol industry better hope for high oil prices because without it no one will import their surplus production.


This past week we had swine producers from South Korea and China visit us. The South Koreans reported market hogs are bringing $550 per head. Profits are obviously really, really strong. The Foot and Mouth in South Korea devastated the industry with 35 per cent of production disappearing.
China prices are also strong $300.00 per head, profit better than $100 per head. Both countries due to lack of pork supply will need imports for months to come all factors to support our hog prices.

Summary
More grain in inventory, more projected grain production, high prices always lead to lower prices in every commodity. It’s not if but when. USDA is projecting globally 10 per cent more corn and 15 per cent more wheat this crop year. No way consumption levels will increase that fast. We expect little upside pricing to grain prices with the USDA scenario. Mostly downside.


Author: Jim Long, President & CEO, Genesus Genetics 

[Mustang Sally Farm]

Wednesday, January 18, 2012
Traceability Project Uses DNA to Improve Genetics
CANADA - The Canadian Swine Health Board and the University of Prince Edward Island’s (UPEI) Atlantic Veterinary College (AVC) have completed the first phase of an innovative research project that analyses swine DNA in order to reduce genetic defects and disease in Canadian swine herds.


The programme uses the DNA TraceBack® system from IdentiGEN Canada Ltd. to trace parentage of individual hogs in order to make associations between incidence of on-farm swine mortality and the genetic relationship of the chosen sire at the boar stud.

Funded by the Canadian Swine Health Board, the study is the first Canadian research project to establish an accurate, rapid feedback loop from commercial production to swine genetics. This process will ultimately create a platform to increase the accuracy of on-farm research, allowing researchers the option of including the animal’s parentage as part of their analysis.

“There is an opportunity in Canada to improve the effectiveness of our response to on-farm mortality. Our current inability to efficiently trace the parentage of individual hogs prevents the use of information collected about the animals or the pork products for genetic selection,” said Dr Daniel Hurnik, UPEI’s Industry Chair for Swine Research, and Associate Professor in AVC’s Department of Health Management. “This project facilitates faster improvements for the industry and extends benefits for the whole pork industry.”

UPEI is working closely with Premium Farms, Magnum Swine Genetics Inc. and Dunsbergen Farms to implement the necessary on-farm protocols for DNA sampling. Using its DNA TraceBack system, IdentiGEN has successfully analysed samples from the participating farms, establishing the commercial viability of its solution to trace swine parentage. The next phase, to be completed by the end of 2012, will focus on using the generated data to aid Canada’s swine producers in making genetic choices.

“If we can trace the parentage of animals that are not commercially viable, and match them to their sire, we can create an immediate way to impact both quality and disease prevalence through sire choice,” said Hurnik.

Andrew Beusekom, general manager of Magnum Swine Genetics Inc., a CFIA-certified semen producer in Fort Macleod, Alberta, that supplies pork producers throughout Canada, believes this project has the potential to identify individual boars that may be contributing to less desirable traits in their progeny.

“For the commercial sector of the swine industry, the elimination or reduction of such traits could have a significant impact, both in management and monetary value. As an Artificial Insemination Unit, this project may allow for the unique evaluation of individual boars, by providing the information needed to make crucial management decisions, including culling and selection of genetic lines,” he said.

[Mustang Sally Farm]

Thursday, January 19, 2012
Pork Industry's Ability to Help Meet Food Demand
CANADA - The Chair of the Banff Pork Seminar Advisory Committee predicts population growth will challenge Canada's pork producers to expand production and improve efficiency to help meet an increased demand for food, Bruce Cochrane writes.


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

FarmScape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 

The 2012 Banff Pork Seminar is underway today, tomorrow and Friday.

The annual seminar has evolved into a national event focusing on the exchange of ideas and new information intended to allow pork producers to learn specifics about various facets of the industry from production to marketing.

Jim Haggins, the Chair of the Banff Pork Seminar Advisory Committee and Chair of Alberta Pork, says a growing population will challenge the Canadian pork industry to expand efficiency and expand production overall to provide the nutrition that will be needed.

Jim Haggins-Alberta Pork
This year's theme is "Feeding Tomorrow's World."

As everyone's aware, with great fanfare, we hit seven billion people as a global population in early November of last year.

It's projected that that global population will expand to nine billion people by 2050.

That will create a great challenge to the major food producing countries in the world of which there are only five or six that do the majority of the food production throughout the world.

Most of our pork produced in Canada today is exported to various countries around the world, from the United States, throughout Asia, Europe, Russia, you name it, India.

In some of those developing countries it is foreseen that the majority of the increase in population is going to occur.

The Canadian industry has established excellent rapport with those countries at this point in time and we are looking for that rapport strengthening and therefor creating a greater demand for the high quality Canadian pork that is produced here.

Mr Haggins says the Banff Pork Seminar is the largest pork industry event in Canada and has evolved into the gathering point nationally for industry stakeholders.

[Mustang Sally Farm]

Friday, January 20, 2012
Reduced Feed Costs Could Boost Profitability
CANADA - The President of Westside Economics predicts reduced feed costs will translate into improved profitability for North American pork producers throughout 2012 and into 2013, according to Bruce Cochrane.

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

FarmScape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 

"Prediction of Future Prices and Cost of Production" was among the topics discussed yesterday as part of the 2012 Banff Pork Seminar.

Dr Karl Skold, the President of Westside Economics, says, with corn prices moving up toward seven dollars per bushel, this past year was challenging on the cost side but thanks to strong demand led by export growth 2011 was a good year in terms of profitability.

Dr Karl Skold-Westside Economics
I think what you've seen is very high record feed grain prices and very strong prices that give incentive throughout the world to grow production.

That's been number one.

Number two, we're seeing a slower growth of US ethanol production.

Where it was both mandate led and a lot of incentives and subsidies to grow production quite quickly, those subsides went away at the end of this last calendar year.

With that, given that in the US we're not using as much gasoline and we've pretty much added all the ethanol we can, the growth is only going to be driven by exports.

So the combination of more supplies of grain world-wide and a slower ethanol picture is going to help give more supplies next year.

A lot of it's going to be predicated, we're going to see a large jump in corn plantings likely next spring in the U.S. which is going to loosen up the balance sheet.

Plus these incremental supplies world-wide should help us make feed costs lower for calendar 2012 and likely into 2013 if we have good crops in the US.

Dr Skold anticipates any increased profitability will come more from feed cost reductions than from gains in hog prices as export demand is expected to remain flat this year.

[Mustang Sally Farm]

Tuesday, January 24, 2012
Pork Commentary: Banff Pork Seminar
CANADA - This past week we attended the Banff Pork Seminar held annually in the mountain resort town of Banff Alberta, writes Jim Long.


Jim Long is President &
CEO of Genesus Genetics.
Our Observations
Banff is a picturesque town set in the Rocky Mountains. It was cold at -30 degrees Celsius with record low temperatures reported throughout the region. Genesus hosted two customers from Singapore. The lowest temperature there has been 26 degrees Celsius (77 degrees Fahrenheit). They noticed a difference!


The funny thing was when one of our Genesus people came back from running in the -30 temperature. The looks on our Singapore guest’s faces were priceless when they realized what he had been doing. Lunacy was mentioned.


Genesus once again hosted a reception for Banff Swine Seminars attendees at the St. James Irish Pub. It was a great time with over 300 people joining us. There was lots of industry talk and we appreciated the many thank yous we received from customers and friends in the industry (even our competitors who came to be where the action was).


The speakers at the seminars covered a range of topics – some very macro in nature, others were scientific and specific. There was something for everyone.


Some market consensus thoughts from speaker’s and people attending.


We have benefitted greatly from Pork Exports in North America this past year. There is confidence that exports to China, South Korea, and Japan will stay strong through the first half of 2012. The question is the second half of the year. Will China be able to increase production, South Korea recovering from Foot and Mouth, and Japan from tsunami related production issues.


Industry perspective is profits in swine production have been limited. Its OK being a swine producer but it’s not great. There appears to be little sentiment for expansion. There are no simple exit strategies as there is no clamoring of people wanting to be pig farmers and buy pig farms. We are kind of marooned in the swine business, we can’t get off the island without drowning but on our island we’ve got food and its comfortable – just nowhere to go. We are all making the best of it.


From what we sense, producers believe 2012 will be a profitable year we will make a few dollars but won’t get rich. Prices will be good but feed is expensive. We get no sense of ecstatic enthusiasm for the future of swine production. As we said earlier no expansion plans. Swine production is not increasing beyond productivity gains.


A number of swine producers attending were also grain farmers. They are caught in the dilemma of wanting high grain prices but again want to make money in pork production. We got the sense that the surge in land prices is somewhat unsettling to them. We heard the words ‘land bubble’ more than once. All farmers are mostly survivors. Farming is and has been Darwinian “creative destruction” is a principle of capitalism. In agriculture we have lived this realism; the huge consolidation in agriculture in all sectors is testimony to the continuing decades long pressure for scale and productivity. It appears to us whether it’s real or perceived there will be more grain produced in 2012 than any time in history. The world is bulled up. More land, better seed, and better technology are all geared to push production. The surest cure for high prices is high prices.
Summary
One speaker, Jeff Simmons, President of Elanco explained that world food needs will double by 2050. 70% of increased food must come from efficiency – improving technology. The main drivers of the food buyer are (a) taste (b) cost and (c) nutrition. As President – CEO of a major swine genetics company this helps focus our marching orders. We will need more pork per sow. A four ton sow is a true measure of sow productivity. We have to enhance our massive effort and investment in scientific research and development with continued rapid utilization of Genomic technology. Taste is the number one food buyer driver. We need to develop ever tender and tasty pork to increase consumer demand. We believe there should be no commodity pork but a focus on taste and quality in all pork produced. In some aspects we are immature in consumer marketing. Coca Cola, McDonalds, etc… have been real successful with consumer food products that have been consistent and tasty to the vast number of consumers. They have a wide variation in color, marbling, tenderness, and juiciness we have in the pork industry is a weakness in our opinion. Increased demand would lead to profits. If consumers got tastier pork and had one more meal of pork a month it would lead to a significant increase in pork consumption and support prices. Even if packers don’t pay for tasty pork it is wise for long term value of our industry to produce a product that consumers want to eat over and over again.


Author: Jim Long, President & CEO, Genesus Genetics 

[Mustang Sally Farm]

Monday, January 30, 2012
Canadian Hog Producer Optimism on the Rise
CANADA - Optimism among hog producers is on the rise. In 2011 three quarters of hog producers (75 per cent) agree that their farm or business will be better off five years from now.


This is up significantly from 2010 when sixty nine percent of hog producers felt this way. Although hog producers are evenly divided on the question of whether their operation is better off now than it was five years earlier (52 per cent agree), this measure has increased substantially from 2009 when one third of producers (34 per cent) felt that their operation is better.

Although hog producers are feeling optimistic of the future and agree that their operation is better off now than five years earlier, they are more hesitant to recommend agricultural careers than most other sectors. Half of all hog producers (54 per cent) would recommend a career in primary production compared to the national average of seven in ten (69 per cent). Seven in ten hog producers (73 per cent) would recommend an agricultural related career, which is lower than the national average (80 per cent) but still represents a substantial portion of producers who are optimistic about agricultural careers.

This year saw a slight decrease in the number of hog producers who plan to expand or diversify their operation (2010, 62 per cent; 2011, 45 per cent) coupled with an increase in the number of producers who plan to reduce their operation or exit the industry (2010, nine per cent; 2011, 24 per cent).

While there may be uncertainty in the sector, hog producers feel that their operations are better off today than they were five years earlier and they are optimistic about the future. With eight in ten hog producers (80 per cent) reporting to be comfortable talking about their industry with those outside agriculture, this sector is more comfortable doing so than producers in most other sectors (71 per cent).

[Mustang Sally Farm]

Tuesday, January 31, 2012
Focus on Sharing Ideas to Improve Pork Production
CANADA - An animal science professor with the University of Manitoba says the 2012 Manitoba Swine Seminar will feature information designed to equip the province's pork producers to improve the efficiency of their operations, Bruce Cochrane writes.

 University news is a Wonderworks Canada Production. Visit us at www.universitynews.org 
The theme of the 2012 Manitoba Swine Seminar, slated for Wednesday and Thursday, 1 and 2 February in Winnipeg, is "Sharing Ideas and Information for Efficient Pork Production".

Dr Martin Nyachoti, an animal science professor with the University of Manitoba's Faculty of Agricultural and Food Sciences and co-chair of the 2012 Manitoba Swine Seminar, says the annual programme has become the premier event for sharing information and ideas regarding the swine industry and pork production in the province of Manitoba.

Dr Martin Nyachoti-University of Manitoba
I think it's very very important because of what is going on for example in the industry right now.

Everything that we can do to help the industry prosper or survive the tough times that have been experienced in the recent years is obviously a very good thing.

The speakers that we've invited, the topics that they will be addressing, we hope that there is something in there for people that will be attending that they can take and apply and also will then make them more efficient or make their production units more efficient and therefore a chance at survival and making sure that they stay in business.

I think it's important from that perspective to make sure that we equip the producers with knowledge and ideas that they can apply.

It's also very important because it gives us an opportunity to bring in speakers that otherwise would not be coming to the province, people from different parts that come in and share ideas about what is it that they have done or is going on in their places that we might be able to borrow.

Dr Nyachoti says the Manitoba Swine Seminar is geared toward the swine industry and typically attracts swine producers, feed and equipment suppliers, veterinarians, and students and staff from the University of Manitoba.

He notes many of the topics that will be addressed this year were suggested by those who attended last year's event.

[Mustang Sally Farm]

Thursday, February 02, 2012
A New Year: Looking Back, Looking Forward
CANADA - As I look back over the past year here in Ontario, Canada I believe I see some growing optimism, writes Bob Fraser, Sales & Service, Genesus Ontario, Canada.
 

Hopefully not "irrational exuberance" but a growing sense by the survivors, and certainly those who remain are nothing less. That if you stick with your plan and model and strive to continuously grow and improve. What has been a very good business, the pig business, to many farm families in Ontario can be once again.

In my totally unscientific survey of producers, customers and prospects I’ve visited with over last few months deem last year a reasonable one. As a high percentage of Ontario pork producers are also integrated to land, the crop looms large in their operations. Although I heard a tremendous range in corn yields of over 100 bushels from 140 bu/acre to 240 bu/acre, often not that great a distance from each other. Most producers deemed the crop considerably better than expectations, given the particularly wet spring for the entire province and then extended period of too dry for large parts of the province. As one in the agriculture genetic business I continue to be impressed with the strides made in corn genetics to handle the whims of Mother Nature and still achieve Midwest corn yields in Ontario.

Similarly hog price seemed to on balance be greater than expectations. Yes we continue to see great volatility with the combined yoyo of grain/feed prices against hog prices pressuring margins. However many Ontario producers appear to have figured out various methods to mitigate at least some of this. Whether it be the backbone of the Ontario industry the integrated model of land to corn to hogs to manure that for a time fell from favour looking increasingly handsome. For others it is refinement to their risk management skills or seeking out niches and systems where they can grow and prosper.

Conestoga Meats the Ontario packer owned by 3Ps (Progressive Pork Producers) a group of 130+ Ontario producers who had a dream to integrate further up the chain is one shining example of this. In a field strewn with the carcasses of similar attempts across North America, through tenacity and hard work Conestoga has evolved to as high as 15,000 hogs per week returning an enviably competitive price to its shareholder/suppliers this year.

This is just one example amongst natural, organic, antibiotic free, heavier carcasses and an assortment of options that have bloomed under the breaking of the marketing monopoly held in Ontario for many, many years by Ontario Pork. As necessity is the mother of invention, nothing stimulates innovation like competition.

As I look back over the progress of the Ontario pork industry I consider Genesus progress in the province. We placed the first Genesus gilts in Ontario a little over two and half years ago. We literally started from square one. In a time of virtually no growth with the only business you got was by taking it away from someone else. Also to producers who know hogs having in many instances fed hogs for multi generations. In most instances the prospect who is stroking the cheque is also doing chores. Therefore you may get the first sale on salesmanship or charm depending your perspective but you will only get the next sale on performance! This audience knows their hogs. I am humbled and gratified that to date everywhere in the province that we’ve had a producer try our gilts they have continued to buy our gilts.

On the sire side, two years ago we had 3 boars in OSI (the boar stud we work with in Ontario). Today we have 150 boars at stud with 60 more entering quarantine next week. As I suggested earlier how corn genetics has improved to perform in the face of the whims of Mother Nature so Genesus is performing in the bumps of pork production from feed challenges, hot weather, bug challenges etc. that can result in overcrowding or other less than ideal growing conditions. As Ontario producers adapt to the new realities of the marketplace that requires better pigs, more pigs, easier, they’re finding Genesus a very viable option.

Looking forward if we take a look at the OMAFRA Weekly Hog Market Facts compiled by John Bancroft, Market Strategies Program Lead, Stratford OMAFRA john.bancroft@ontario.ca we see a solid $20+ improvement in price over the same time last year. An encouraging start to the New Year.

Week Ending on Friday 23-Dec-11 30-Dec-11 06-Jan-12 13-Jan-12 20-Jan-12
The Ontario Market
Average price ($/ckg, DW total value) $182.87 $177.89 $176.09 $177.12   
Low price ($/ckg, DW total value) $154.41 $152.77 $148.60 $146.16   
High price ($/ckg, DW total value) $195.55 $190.76 $187.99 $189.05   
Weekly Average Dressed Weight (kg) 95.83 96.94 97.33 97.36   
Market Hogs Sold 88,106 66,837 89,367 96,748   
Market Hogs Sold - % of Previous Year 178% 100% 89% 96%   
100% Formula Price ($/ckg, 100 index) $155.74 $151.46 $150.54 $155.06 $155.76
Previous Year - 100% Formula Price ($/ckg, 100 index) $126.87 $128.06 $130.72 $131.39 $135.60
Weaned Pig Value (C$/pig) - Formula Value $40.49 $39.38 $39.14 $40.32 $40.50
Feeder Pig Value (C$/pig) - Formula Value $64.24 $62.48 $62.10 $63.96 $64.25
Est. Grow Finish Feed Cost for Current Week $82.04 $84.47 $85.60 $83.95 $81.02
Est. Margin after Feeder Pig and Feed $13.32 $11.22 $7.01 $9.80 $8.84

Finally as I look back and forward I have a particular reason for reflection.

Robert Arnold Lovat Fraser (3 June 1920), who I am blest, to be able to call my Dad passed away 12 Januay 2012.

This is a son’s perspective of how I remember him and all he did for me. I don’t know if you ever fully know your Father. Seems there’s always a certain mystery of when he was young. Things you don’t know, can’t know, and won’t know…

However this are some of the things I remember and what defined him as a man to me.

It is difficult for a son to see his lion in winter. Therefore I’m going to dwell more on when the sun shone and he was strong.

My Dad wasn’t rich man or at least how we’ve come to usually measure it now. My Dad wasn’t a clever, sophisticated man at least in the formal, schooled academic sense. He only went to Grade 10 at the Continuation School in Thorndale. My Dad wasn’t a highly successful man or at least as some of todays society has come to measure it. He worked for 35+ years for the Dept. of Highways while he farmed which was his love & passion but I’m not sure that he ever particularly made a nickel at it. But that wasn’t the point it was how he defined himself.

As to what my Father wasn’t - neither a rich man nor sophisticated, highly successful, clever man... So what was he? He was a Good Man.

A good man - Faithful to his God

A good man -Faithful to his Family

Finally a good man that gave me a great gift of showing me an agriculture that’s virtually gone now.

We threshed up until 1970 and although I didn’t fully appreciate it at the time to step into a 20 acre field a stook it up. I would give a very great deal to sweat in the summer sun again and feel the camaraderie and joy of bringing in a harvest.

Because of my Dad I’ve seen the wonder of calves & lambs born. Pigs farrowed in a straw stack and how if given the opportunity will build a nest better than a duck. The snugness of a barn in winter all cleaned out and freshly bedded down.

He taught me how to plough and respect and honour your stock such that always when we came home from anywhere you always went to the barn first. Even in your "Sunday best" to check the stock first!

So to close a good man that loved his God, his family, his farm and... butter tarts (a wonderful dessert I understand virtually unknown to our American friends). Towards the end Dad got so he couldn’t swallow and ultimately take anything by mouth. Such that in August he had a stomach tube inserted for nutrition. That nutrition doesn’t include butter tarts.

So in the words of the great Rolling Stones song which I’ve always felt should be a hymn - "you can’t always get what you want but if you try sometime you might find that you get what you need."

And with that if you believe as I do, he goes where "they wipe away every tear" then they also have butter tarts. And he’s having one now...


 Genesus Genetics

[Mustang Sally Farm]

Thursday, February 02, 2012
A New Year: Looking Back, Looking Forward
CANADA - As I look back over the past year here in Ontario, Canada I believe I see some growing optimism, writes Bob Fraser, Sales & Service, Genesus Ontario, Canada.
 

Hopefully not "irrational exuberance" but a growing sense by the survivors, and certainly those who remain are nothing less. That if you stick with your plan and model and strive to continuously grow and improve. What has been a very good business, the pig business, to many farm families in Ontario can be once again.

In my totally unscientific survey of producers, customers and prospects I’ve visited with over last few months deem last year a reasonable one. As a high percentage of Ontario pork producers are also integrated to land, the crop looms large in their operations. Although I heard a tremendous range in corn yields of over 100 bushels from 140 bu/acre to 240 bu/acre, often not that great a distance from each other. Most producers deemed the crop considerably better than expectations, given the particularly wet spring for the entire province and then extended period of too dry for large parts of the province. As one in the agriculture genetic business I continue to be impressed with the strides made in corn genetics to handle the whims of Mother Nature and still achieve Midwest corn yields in Ontario.

Similarly hog price seemed to on balance be greater than expectations. Yes we continue to see great volatility with the combined yoyo of grain/feed prices against hog prices pressuring margins. However many Ontario producers appear to have figured out various methods to mitigate at least some of this. Whether it be the backbone of the Ontario industry the integrated model of land to corn to hogs to manure that for a time fell from favour looking increasingly handsome. For others it is refinement to their risk management skills or seeking out niches and systems where they can grow and prosper.

Conestoga Meats the Ontario packer owned by 3Ps (Progressive Pork Producers) a group of 130+ Ontario producers who had a dream to integrate further up the chain is one shining example of this. In a field strewn with the carcasses of similar attempts across North America, through tenacity and hard work Conestoga has evolved to as high as 15,000 hogs per week returning an enviably competitive price to its shareholder/suppliers this year.

This is just one example amongst natural, organic, antibiotic free, heavier carcasses and an assortment of options that have bloomed under the breaking of the marketing monopoly held in Ontario for many, many years by Ontario Pork. As necessity is the mother of invention, nothing stimulates innovation like competition.

As I look back over the progress of the Ontario pork industry I consider Genesus progress in the province. We placed the first Genesus gilts in Ontario a little over two and half years ago. We literally started from square one. In a time of virtually no growth with the only business you got was by taking it away from someone else. Also to producers who know hogs having in many instances fed hogs for multi generations. In most instances the prospect who is stroking the cheque is also doing chores. Therefore you may get the first sale on salesmanship or charm depending your perspective but you will only get the next sale on performance! This audience knows their hogs. I am humbled and gratified that to date everywhere in the province that we’ve had a producer try our gilts they have continued to buy our gilts.

On the sire side, two years ago we had 3 boars in OSI (the boar stud we work with in Ontario). Today we have 150 boars at stud with 60 more entering quarantine next week. As I suggested earlier how corn genetics has improved to perform in the face of the whims of Mother Nature so Genesus is performing in the bumps of pork production from feed challenges, hot weather, bug challenges etc. that can result in overcrowding or other less than ideal growing conditions. As Ontario producers adapt to the new realities of the marketplace that requires better pigs, more pigs, easier, they’re finding Genesus a very viable option.

Looking forward if we take a look at the OMAFRA Weekly Hog Market Facts compiled by John Bancroft, Market Strategies Program Lead, Stratford OMAFRA john.bancroft@ontario.ca we see a solid $20+ improvement in price over the same time last year. An encouraging start to the New Year.

Week Ending on Friday 23-Dec-11 30-Dec-11 06-Jan-12 13-Jan-12 20-Jan-12
The Ontario Market
Average price ($/ckg, DW total value) $182.87 $177.89 $176.09 $177.12   
Low price ($/ckg, DW total value) $154.41 $152.77 $148.60 $146.16   
High price ($/ckg, DW total value) $195.55 $190.76 $187.99 $189.05   
Weekly Average Dressed Weight (kg) 95.83 96.94 97.33 97.36   
Market Hogs Sold 88,106 66,837 89,367 96,748   
Market Hogs Sold - % of Previous Year 178% 100% 89% 96%   
100% Formula Price ($/ckg, 100 index) $155.74 $151.46 $150.54 $155.06 $155.76
Previous Year - 100% Formula Price ($/ckg, 100 index) $126.87 $128.06 $130.72 $131.39 $135.60
Weaned Pig Value (C$/pig) - Formula Value $40.49 $39.38 $39.14 $40.32 $40.50
Feeder Pig Value (C$/pig) - Formula Value $64.24 $62.48 $62.10 $63.96 $64.25
Est. Grow Finish Feed Cost for Current Week $82.04 $84.47 $85.60 $83.95 $81.02
Est. Margin after Feeder Pig and Feed $13.32 $11.22 $7.01 $9.80 $8.84

Finally as I look back and forward I have a particular reason for reflection.

Robert Arnold Lovat Fraser (3 June 1920), who I am blest, to be able to call my Dad passed away 12 Januay 2012.

This is a son’s perspective of how I remember him and all he did for me. I don’t know if you ever fully know your Father. Seems there’s always a certain mystery of when he was young. Things you don’t know, can’t know, and won’t know…

However this are some of the things I remember and what defined him as a man to me.

It is difficult for a son to see his lion in winter. Therefore I’m going to dwell more on when the sun shone and he was strong.

My Dad wasn’t rich man or at least how we’ve come to usually measure it now. My Dad wasn’t a clever, sophisticated man at least in the formal, schooled academic sense. He only went to Grade 10 at the Continuation School in Thorndale. My Dad wasn’t a highly successful man or at least as some of todays society has come to measure it. He worked for 35+ years for the Dept. of Highways while he farmed which was his love & passion but I’m not sure that he ever particularly made a nickel at it. But that wasn’t the point it was how he defined himself.

As to what my Father wasn’t - neither a rich man nor sophisticated, highly successful, clever man... So what was he? He was a Good Man.

A good man - Faithful to his God

A good man -Faithful to his Family

Finally a good man that gave me a great gift of showing me an agriculture that’s virtually gone now.

We threshed up until 1970 and although I didn’t fully appreciate it at the time to step into a 20 acre field a stook it up. I would give a very great deal to sweat in the summer sun again and feel the camaraderie and joy of bringing in a harvest.

Because of my Dad I’ve seen the wonder of calves & lambs born. Pigs farrowed in a straw stack and how if given the opportunity will build a nest better than a duck. The snugness of a barn in winter all cleaned out and freshly bedded down.

He taught me how to plough and respect and honour your stock such that always when we came home from anywhere you always went to the barn first. Even in your "Sunday best" to check the stock first!

So to close a good man that loved his God, his family, his farm and... butter tarts (a wonderful dessert I understand virtually unknown to our American friends). Towards the end Dad got so he couldn’t swallow and ultimately take anything by mouth. Such that in August he had a stomach tube inserted for nutrition. That nutrition doesn’t include butter tarts.

So in the words of the great Rolling Stones song which I’ve always felt should be a hymn - "you can’t always get what you want but if you try sometime you might find that you get what you need."

And with that if you believe as I do, he goes where "they wipe away every tear" then they also have butter tarts. And he’s having one now...


 Genesus Genetics,   

[Mustang Sally Farm]

Monday, February 06, 2012
Revised Pig Code of Practice Expected by Mid-2013
CANADA - The National Farm Animal Care Council’s Pig Code Development Committee expects a new Code of Practice for the Care and Handling of Pigs to be ready for publication by mid-2013, writes Bruce Cochrane.

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

FarmScape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 

The Pig Code of Practice was last updated in 1993.

The National Farm Animal Care Council’s Pig Code Development Committee, which is made up of pork producers, practicing veterinarians, swine researchers and representatives of government and animal welfare organizations, has been working on revising the code for just over a year.

Committee Chair Florian Possberg says all aspects of pig care are being covered.

Florian Possberg-Pig Code Development Committee
Some of the things that we do in animal welfare are very supportive to the viability of the industry.

Some of the things around animal welfare that are being imposed on production systems around the world, quite frankly, are quite negative to the viability of the industry.

We're just trying to find the right balance.

There's things like how we deal with compromised animals, there's sensitive issues like how we group our sows, whether they're in stalls or in group housing, painful procedures like castration is one of the things that we're looking at.

My goal is at the end of the day the environment, the welfare of our animals will be better off and it'll be based on good sound scientific principles and common sense things.

I don't want to see us just be reactive to the flavor of the day in imposing something because it's popular but not necessarily going to help our animals so we need to be sensitive to that.

We all want to be good stewards for our animals.

Mr Possberg expects the first draft of the new code to be ready this summer, it will be revised based on stakeholder input and the goal is to have the revised code ready for publication by June or July of 2013.

[Mustang Sally Farm]

Wednesday, February 08, 2012
Improved Profits Projected for Pork Producers
CANADA - The General Manager of H@ms Marketing Services predicts Canadian pork producers will reap slightly stronger profits in 2012 than they did in 2011, Bruce Cochrane writes.

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

FarmScape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 

H@ms Marketing Services is a producer owned cooperative that represents approximately 300 pork producers in Manitoba and Saskatchewan.

H@ms General Manager Perry Mohr credits improved hog prices in 2011 to increased US pork exports.

Perry Mohr-H@ms Marketing Services
We saw record prices in 2011 in the United States.

Unfortunately that didn't correspond or convert to record prices in Canada.

They were very strong prices but because our Canadian dollar was so strong for the majority of the year we saw some very good hog prices.

Other factors that influenced the margins that producers were able to retain of course were feed prices.

I'm hearing profits of anywhere from 20 dollars a hog down to about profits of five dollars a hog so I guess if I had to generalize I would say most of our producers posted a profit last year.

It wasn't large.

I don't think we're going to see a large profit this year.

We may see a slightly larger profit than what we saw in 2011 and again the stars are going to have to line up.

We reap the benefits of the United States exporting a tremendous amount of pork.

In 2011 they had a record year.

Almost 24 per cent of the pork that they produced was exported and if anything happens to interrupt that export business in 2012, we know that the pig crop is going to be slightly bigger.

We could see prices adversely affected by anything negative happening to the US exports but based on what we know today we think that producers will have a slightly better year than last year, again not outstanding by any means.

Mr Mohr suggests we have to draw on the assumption that the United States will continue to export about 24 per cent of their pork production and that will provide a level of pricing, even with a strong dollar, where Canada will see fairly good prices.