Canadian Pork Producers:

[mikey]

Sharing of Pig Handling Tips and Techniques
CANADA - A new "Low Stress Pig Handling" blog is allowing those who make their living moving pigs to share practical information on low stress swine handling techniques, 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. 
White Fox, Saskatchewan based DNL Farms launched its new Low Stress Pig Handling blog earlier this year.

The web site, located at lowstresspighandling.com, targets swine handlers, truckers and those involved in supervising or training swine handlers.

DNL low stress pig handling trainer Nancy Lidster says animal welfare audits are now a fact of life at the packing plants and that process is moving back into transportation and onto farms.

Nancy Lidster-DNL Farms
I think it's really important that handlers start understanding and learning and developing the skills that they're going to need to meet those animal welfare audits and the skills and stuff that will help them pass audits and meet those audit standards will also just make their life a whole lot easier on a day to day basis as well.

It's all related to the relationship between handlers and pigs.

I think in a lot of cases when people are having problems moving pigs they don't know what to look for.

They're not picking up the physical cues that the pigs are giving them so they can anticipate what the pigs are going to do next.

What we're trying to do is help people to understand pig behavior, help them understand how to read the pigs and anticipate what they're going to do and use the pigs' natural behavior to get the responses that they're wanting from them.

In a lot of cases it's just a matter of, once they see what they need to be looking for and what they need to do with that they're looking at, then that just is like turning on a light bulb and it makes things a whole lot easier for them.

The blog is updated weekly.

Mr Lidster says subscribers receive email notifications when new articles have been posted to the blog and they have the ability to post comments and to make suggestions on topics they would like to see covered.

[mikey]

Profitable Hog Prices Projected in Second Quarter
CANADA - A livestock economist with the Saskatchewan Ministry of Agriculture predicts the majority of western Canadian pork producers will be back to break even levels by the second quarter of this year, 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. 
A combination of factors including an over supply of hogs, increased input costs particularly for feed, the fluctuating value of the Canadian dollar, US Mandatory Country of Origin Labelling (M-COOL) and the impact of the global recession on pork demand have contributed to three years of losses within the Canadian pork industry.

Brad Marceniuk, a livestock economist with the Saskatchewan Ministry of Agriculture, observes North American hog prices have been trending upward over the last few weeks primarily due to reduced production, lower volumes of meat primarily pork and poultry in cold storage and increased US pork exports.

Brad Marceniuk-Saskatchewan Ministry of Agriculture
Looking forward based on our current lean hog futures prices and the Canadian exchange rates futures I think western Canadian hog producers could average between 143 and 148 dollars per 100 kilograms in the second quarter of 2010 and average between about 138 to 143 dollars per 100 kilograms in the third quarter of 2010.

Based on these prices I think producers in western Canada or at least the majority of the producers should see some break even levels here in the second quarter of 2010.

I think the main factors to watch for producers is what's happening with the US hog slaughter numbers and what are we seeing with pork export demand.

Further reductions in hog slaughter numbers will help improve hog prices into the summer but I think a noticeable improvement in North American pork exports are really needed to see a large jump in prices as we roll into the summer.

One of the factors for Canadian producers will be where is the Canadian dollar going to be?

Any large fluctuations in the value of the Canadian dollar will alter prices for our Canadian producers.

Mr Marceniuk notes the rise in the value of the Canadian dollar over the past few weeks has limited prices increases for Canadian hogs.

He says if the dollar remains strong or if we see further strength in the second quarter of 2010 it may further limit price increases.

[mikey]

Pork Commentary: Markets Take a Rest
CANADA - This week's North American Pork Commentary from Jim Long.
Jim Long is President &
CEO of Genesus Genetics.
Last Friday, Iowa – Minnesota averaged 69.47 lean a pound down $2.50 from the previous Friday, while the USDA pork cut – outs averaged $74.11 the end of last week. To get cash lean hogs to move higher, cut – outs have to improve. It would help a tremendous amount if weekly hog marketing’s would get lower. Last week’s US marketing’s were 2.132 million down 1.4 per cent from the same week a year ago. We expect by late April marketing’s could be closer to 2 million a week. We don’t expect the hog price to show much further strength before then.

Vomitoxin, moulds in corn, etc seem to be quite prevalent throughout much of the Mid West. Mould inhibiters help and so does general testing to eliminate use in swine rations. Unfortunately, some molds and vomis are slipping through. This will hurt litter size, farrowing rates and growth of hogs. All will cut pork tonnage in future months.


The overall economic crisis has done other things to hurt production. In a bid to lower costs we are aware of producers who have cut back vaccine use. Some have even made the fatal mistake of eliminating circo virus vaccine. This has in turn increased their mortality and led to more off pigs. Truly bad economics if there is one vaccine that appears to give an excellent return on investment it is circo virus vaccine.


We are hearing from feeder pig brokers of an almost record amount of off or credit pigs in loads of early weans and feeder pigs. Some of this could be attributed to high prices of early weans ($45) or feeder pigs ($70) that lead to buyers quality expectations to be higher and using credits to lower average load prices. The feeder pig brokers though are saying inspection of small pigs is showing real quality issues. We expect industry economics, feed quality issues, lack of vaccine usage, and an old sow herd is a cocktail leading to poorer quality pigs.


Last week the USDA announced an agreement between the US and Russia to allow US pork to Russia. New rules for export verification regarding Russian microbiological and tetracycline group. Antibiotic residue requirements were the ticket. Russia imported $476 million in 2009. H1N1 issues and delisting of several US plants (drug residue?) were the main cause of the sharp decline.
There should be opportunities for US pork as Russian hog prices are running around $1.50 US per pound. There have been several breaks of African swine flu primarily in the south of Russia (Kuban region). This has lead to a large region being quarantined and reports of several herds being put down. The African swine fever issue is a huge concern for all Russian producers as its spread could be financially devastating to the whole industry. The re – opening of the Russian pork market for the US pork exports will be positive for US hog prices.

Brazil
We have been hearing from Genesus associates traveling in Brazil that the corn and soybean crops are exceptional this year, getting the right amount of rain and sunny days have made soybean and corn so healthy and beautiful there. They expect record crop this season, the soybean has started to get yellow at this point to be harvested in about a month, while the corn is growing so fast to be harvested in June.

Prices:
today soybean price is 500 Reais per ton = 265 US/ton
Corn is 283 Reais per ton = $165 US/ton
future price trend is going down.
Hog prices: 2.35 Reais/kg or $0.60/lb liveweight
Cost of production: 1.90 Reais/kg or $0.47/lb

All producers they talk to are ecstatic with the bountiful crops. The USDA reported record Brazil and Argentine corn – soybean crops last week, it appears our field observations concur. Brazil and the United States are major competitors in Global Pork Trade, both countries will benefit when each other’s price goes up in tandem.

Summary
We don’t expect much appreciation in hog prices until the last half of April. This is when we expect to see the beginning of seasonal production declines. Russia opening up for US pork is price supportive. Price points of hogs throughout the world will pull US – Canada prices. Markets are taking a breath – we expect a wild ride this spring – summer with very strong prices. We might be delusional but we will not be surprised to see lean hogs hit 90 cents.


Author: Jim Long, President & CEO, Genesus Genetics 

[mikey]

Canada helps Vietam improve safety in pork processing
[30 March 2010] The Canada International Development Agency (CIDA) has kicked off a three-year project worth USD 17 million to help six cities and provinces in Vietnam to produce safe pork. Hanoi, Ho Chi Minh City, southern provinces of Dong Nai, Tien Giang and Long An and central highlands Lam Dong province will apply Good Production Practices (GPPs) in producing pork.CIDA will provide technical assistance to pig households and farms and offer training courses to local farmers on how to expand the production.

[mikey]

Pork Commentary: USDA March Hogs and Pigs Report Bullish
CANADA - This week's North American Pork Commentary from Jim Long.

Jim Long is President &
CEO of Genesus Genetics.
The 1 March USDA Hogs and Pigs Report is extremely good news for hog producers. Breeding herd down, market hogs down. The only thing not down will be prices which will in our opinion be at historical highs this summer. Some observations:

US Breeding Herd
The US breeding herd on 1 March was 5.760 million, down 90,000 in the last three months and down a whopping 473,000 sows from 1 December – 27 months ago. There is no doubt the hog cycle is alive and well. Months upon months of losing money has pounded our industry relentlessly. Producers have run out of cash, credit and courage. The economist pundits who have been saying there is little liquidation must have been sitting in their shiny offices with their fat salaries rather than getting out on the gravel roads. They have missed the anguish and financial pain of the industry. We expect in the almost 500,000 sows of last production, there are few if any happy endings. There have been few graceful and financially rewarding exits. It’s been ugly.

Now the good times are coming. The survivors will be rewarded. The US breeding herd production base is the smallest in the last 70 years.

US Breeding Herd
(Thousand Head)
1 December 2007 6,233
1 March 2009 5,922
1 March 2010 5,760

A drop of 473,000 sows in the last 27 months.

US Market Hog Inventory
(Thousand Head)
1 March 2008 61,018
1 March 2009 59,828
1 March 2010 58,228

Market inventory is down 1.6 million from a year ago, down 2.8 million from two years ago. No matter how you figure it, over the coming weeks US average marketing’s will be down at least 100,000 per head a week from 2008. In 2008 we had record high prices. That will be an average 20 million less lbs of pork per week; about 600 fewer tractor trailers of pork per week. The relentless liquidation of the breeding herd is cutting supply at a furious rate.

We also see an industry so beaten up by what has happened to it, that they have forgotten that prices this last year were pummeled by the H1N1 (swine flu) debacle. Swine flu is gone. It’s disappeared like Y2K did. In the swine flu wake, a several billion dollar hair cut for the US, Canada and the global pork industry. The main winners. The drug companies who sucked governments into buying vaccine that sits with millions of doses unused; some of the same drug companies that want to slide into our farms to help us?

Pig Crop
The December-February pig crop at 27.853 million is the smallest since March 2007, 3 years ago. Since then the US population has increased by 12 million people. Demand is greater.

Other Observations
We expect when Canada’s swine inventory is released in the next month the combined US-Canada breeding inventory will be down almost 700,000 sows over the last 27 months, while the combined market inventory will be down close to 5 million head. Total hog supply in the coming months will be down a massive amount. It’s a continental market and total supply is a major price driver.

The lower supply of pigs is going to keep strength in the small pig market. We expect cash early that is wean pigs to stay above $40.00 for the next year, unless there is a major increase in feed prices.


How long will we have good prices? The hog supply is in place due to the biological time table of swine for almost a year. With the financial hole and lack of credit available for producers, there is no way in our opinion that production can increase before the fall of 2011 (could be longer). That means at least 18 months of good prices. In our opinion cash lean hogs will average between $75-80 over the next 18 months. About a $15-20 per head profit at current costs of production including accumulated debt.


We expect cash lean hogs that on Friday were $66 are at the lowest we will see for the next 18 months. Over the coming weeks we expect a relentless increase in cash hogs and we continue to see a scenario for hitting 90¢ lean this summer.
Summary
The worst is definitely over as even the most bearish Chicken Little economist will be challenged to come up with the sky is falling scenarios after this USDA March report. Those of us left standing, the beaten down trod on producers have made it. Cash flow will be black for the foreseeable future. Our industry has been devastated by an unforeseen tsunami of high feed prices, a domestic and global economic crisis and the plague of H1N1 (swine flu). Now it’s our turn to make our money back and then some. Its dam the torpedoes, full speed ahead!
 
Author: Jim Long, President & CEO, Genesus Genetics 

[mikey]

Pork Commentary: Market Anticipation Building
CANADA - This week's North American Pork Commentary from Jim Long

Jim Long is President &
CEO of Genesus Genetics.
After 30 months of our industry losing money, the anticipation for market hog prices to push through $80.00 lean is quite prevalent. Producers have been pounded down financially and there is a real fear that something like last year’s Swine Flu (H1N1) could jump up and wreck the party. It’s a logical feeling when you consider that our Government is bent on driving our costs higher with the boondoggle of corn ethanol, a domestic and global financial crisis, our industry playing defense versus environmentalists and animal rights proponents. Then, there is the curse of having H1N1 called Swine Flu. Roll it together and we have a $6 billion loss for the US swine industry over the last 30 months. Throw in a billion plus loss in Canada, and a billion in Mexico. The carnage has been real and devastating. Is there any wonder hog producers are waiting for the next rock to land on their head?!

The apprehension in the anticipation is a real feeling but we see strong indicators that it is our turn as an industry to make some money.

Domestic and Global economy improving. The GDP in both the USA and Canada is out performing the expert’s predictions (maybe they’re not experts they are economists).
Feed prices appear to be manageable for hog producers despite corn ethanol. Thankfully the rest of the world has not jumped on the burn your food bandwagon and this is cutting US corn exports.
Not much positive on the animal rights or environmental front other than meat and poultry per capita consumption is remaining near historical highs. That means relative constant demand for meat despite ongoing attacks on our industry by the double environmental and animal welfare whammy!!
A year ago Iowa – Minnesota lean hogs were $57 per pound. They now are $20 per pound higher. That’s $40 per head more. We have had a few less hogs but not enough to justify a $40 per head difference. It’s demand domestically and globally that has triggered the increase.
Greater meat demand can be seen in the US cattle market with steers tickling $1.00 per pound live weight. This is up from last year’s 85 cents per pound. That is about $125 more per head. Beef production is down only about 1 per cent year to date. Obviously beef demand, like hogs is up.
US chicken year to date is up 3.5 per cent, but chickens are 85 cents per pound, up 10 cents per pound from last year.
The Bottom line: Hogs, beef, and chicken prices are significantly higher compared to a year ago reflecting stronger domestic and global demand. This augers well for the summer as higher prices in beef, and chickens helps create a scenario where higher hog prices are easier to achieve. We continue to expect as we have for months to see 90 cent lean hogs this summer.

Market What Matters
Last week we went to a presentation where the speaker talked about branding Canadian Pork as Canadian to drive demand in the Canadian market. All the producer discussion in the meeting was supportive of this idea. As maybe usual – we disagree. Certainly there has been little indication that US Country of Origin Labeling of U.S pork has been a demand driver for US consumers. We have heard Canadian consumers profiling where, when asked, the consumer prefers Canadian pork. Big deal! Ask if they prefer anything Canadian made, whether it is cars, food, clothes, etc… they will say ‘yes’. The reality is many who say yes drive foreign cars, eat foreign food, and don’t give a rat’s behind where their clothes are from. They don’t care for the most part if it’s US or Canadian pork. They’re both safe and nutritious. 6 million Canadian pigs go to the US each year, big deal if the equivalent pork comes back to Canada.

We believe building a country brand misses the point, whether it is Canada or the USA. The same surveys that say consumers prefer their National Pork also indicate consumers want taste, color, texture, flavor, convenience, etc… It is foolish for us to build a brand based on country of origin. Our industry marketing must focus on meeting consumer’s real desire. A ‘good eating experience’. To do this we must go beyond lip service and develop genetics that have taste, and flavor. That means enough intramuscular fat. We need as an industry to stop using any genetics with Pietrain. They are too lean and meat fails most if not all taste tests. If as an industry we wish to build demand we must step back and ask why are bellies (bacon) and ribs, the two fattest products, now pushing to the top of pricing in carcass cutout values. It’s demand. The consumers vote with their money. If we want to drive demand, we need to step back and develop a product and marketing program beyond slogans and nationalism.



Author: Jim Long, President & CEO, Genesus Genetics 

[mikey]

Pork Commentary: US Hog Prices on Relentless March
CANADA - This week's North American Pork Commentary from Jim Long.

Jim Long is President &
CEO of Genesus Genetics.
The US hog market continues to push higher. Last Friday the Iowa-Minnesota lean hog price was $81.80; the highest price since August 2008. On Friday lean hog futures hit life of contract highs (June 86.15). Last weeks’ hog marketings were about 100,000 less than a year ago (2,032 million). The bottom line – less hogs are leading to stronger prices.

Other Observations
US pork exports in February were up 2 per cent from a year ago. 25 per cent of US pork production is being exported. As supply of pork declines in the coming months the price pull from continued strong export demand will support prices.


Cash early weans at almost $50 when they will be October market hogs is a reflection of extraordinary demand and lack of supply.


We are now marketing hogs from sows bred last July. Last July there were many “experts” saying we needed to liquidate 500,000 more sows. We disagreed at the time saying we had liquidated enough to have profitable markets. We have 80¢ lean hogs now; $20 per head profits. We had indeed last July liquidated enough sows to be profitable. The “experts” were wrong. Since then a further 200,000 sows are gone. Overkill for sure, but it will lead to record profits for the survivors. There will be some $50 per head profits this summer.


Last July at the Lake of the Ozark conference speaker after speaker talked incessantly on the need to cut sow production. None talked about pork demand – just supply. It was a short sighted sheep mentality where all the speakers must have been drinking the same Kool Aid. We were in the midst of H1N1 (unfortunately termed swine flu). Of course, demand was being hammered both domestically and globally. It was tragic they the speakers did not see the demand recovery while the constant drum-beating of the sky is falling pushed good people out of the business as many banks got caught up in the no hope mind set. Well demand has improved not just lower supply. Abracadabra – profits!


Last week we wrote about focusing our industry marketing efforts on producing meat that consumers want – texture, taste, color, firmness, water holding, etc. To add to this, last week we were talking to one of the leading meat packers. He was quite concerned by what they see in deterioration of meat quality from large use of DDG’s. Softer fat and lighter meat color; both the wrong way for meat quality. He was quite concerned how this could affect short and long term pork demand. Unfortunately, as a broke industry we need to use DDG’s to cut costs. Unfortunately, we are hurting our quality. Not a good long term brand value builder. Like using Pietrain boars or their crosses with their inferior meat characteristics, and then we wonder why per capita consumption of pork is not increasing. Higher real pork demand is an obvious profit enhancer for all of us.


Last week we had some visitors from Colombia. Market hogs there are $1.05 US lb live weight. Things are good, but like all producers they are searching for technology that will keep them long term successful. Colombia is a country of 45 million people. The one thing we repeatedly see with our travels and visits from people are the overall similarities and desires. There are good people everywhere.
Happy day for Genesus and our customers! Swine Management Services (the world’s largest swine benchmarking system) of Fremont Nebraska have compiled the 2009 calendar year results of farms totaling 1,215,511 females. Genesus customers, as in previous years dominate the results. Top herd Camrose had 31.55 pigs weaned/mated females /year. Genesus has 8 of the top 10 herds on the SMS system. All genetic companies are represented in the 1,215,511 female data base. We congratulate our customers, our geneticists, and indeed, all of those involved. It takes a team to build the number one female in the world.

Summary
82¢ cash lean hogs with supply declining. Last August when June 2010 lean hogs were 64¢ we saw a scenario for 90¢ lean hogs. We were called crazy. Well, we still see a scenario for 90¢ lean hogs. Surprise! The real liquidation and lack of gilt entries over the last 2 years has lead to a market hog inventory 4 million less than two years ago when we had hogs in the mid 80’s. The lack of pork supply and domestic and global demand will push hogs to 90¢. Our industry needs the cash. We have had enough losses. The anguish and agony of the last 2.5 years is now over. The equity hole will be replenished.

Again - Genesus Dominates
Swine Management Services
Swine Management Services (SMS) of Fremont, Nebraska is the world’s largest swine benchmarking service. SMS 2009 data was benchmarked on 683 farms with 1,215,511 females.

Genesus once again dominated results, 8 of top 10 farms were Genesus. 11 of the top 15 were Genesus.

2009 – 52 week Summary - 1,215,511 females –
Pigs weaned/mated female/year
  SMS GENESUS
No. of Farms 683 51
Average Top 10%  27.62 30.06
Average All 23.80 26.82
Average Bottom 25% 20.16 25.26


SMS Total 585 Farms – Genesus 8 of top 10 farms
SMS 52 weeks - Calendar Year
RANKING FARM P/S/Y
GENESUS SMS
1 1 CAMROSE 31.55
2 3 RIVERVIEW 30.10
3 4 WOODLAND 30.10
4 5 EVERGREEN 29.84
5 6 FAIRHAVEN 29.67
6 7 HURON 29.54
7 8 MILLTOWN 29.35
8 9 WIKNER 29.31


Author: Jim Long, President & CEO, Genesus Genetics 

[mikey]

China resumes swine trade with Canada
[26 April 2010] China has said it would resume imports of purebred swine genetics from Canada following the suspension of imports last May due to concerns over H1N1. The Canadian Swine Exporters Association (CSEA) in announcing the results of the negotiations said it had been a strenuous 12 months for the genetics industry in Canada. Live pig exports to China is anticipated at USD 30 million in the coming year, according to the CSEA.

[mikey]

Swine Herd Reduction Expected to Continue
CANADA - A US-based agricultural economist says, despite the recent dramatic improvements in live hog prices, North American swine herd reductions are likely to continue through the remained of 2010 and into 2011, 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. 
Thanks to a smaller meat supply and a modest improvement in pork consumption, North American pork producers are once again turning a profit after losing money from late 2007 through 2008 and virtually all of 2009.

University of Missouri agricultural economics professor Dr Ron Plain says although higher hog prices inevitably lead to increased production it'll take time for the industry to recover.

Dr Ron Plain-University of Missouri
If producers make money long enough we're going to start saving gilts and expand the breeding herd.

For the time being I don't think that's likely to happen.

History says hog farms tend to respond to the amount of money in the bank rather than to price forecasting.

The price outlook is quite positive for this summer and into next year but producers lost an enormous amount of money.

Our calculation says US producers lost six billion dollars during 2008 and 2009.

It's going to take time before they and their bankers are willing to put more money into this industry and expand sow numbers.

Hog prices are profitable this year.

It's welcome but my estimate is even when we're a year down the road we will have recouped only about a quarter of what was lost in the last two years so it's going to be a long time before hog producers are back in a sound financial situation.

Dr Plain expects slaughter numbers between Canada and the US to be down another three to four percent this year.

He says slaughter weights have been fairly light this year but will probably be heavier next year offsetting the reduced slaughter numbers so pork production in 2011 is likely to be steady to down one per cent.

[mikey]

Pork Commentary: Trip to Brazil
BRAZIL - This week, Jim Long writes, "This past week we were in Brazil attending and speaking at the Avesui Convention, presented by Gessulli Agribusiness, which was held in Florianópolis on the Atlantic island of Santa Catarina, just off the coast of Brazil."

Jim Long is President &
CEO of Genesus Genetics.
Our observations
The Avesui Convention was organized by Gessulli Agribusiness. It was a first-class event. Weekly, www.avesui.com and www.genesus.com.br in Brazil publish the Jim Long Pork Commentary in Portuguese. By the number of people who stopped at the Genesus booth to say hello, it appears there are lots of people following our comments. Currently the price of market hogs in the South of Brazil is R$ 2.30 per live weight kg, or 59¢ US per live weight pound. Cost of production ranges around R$ 1.10 per kg, or 47-50¢ US per live weight pound. Profits are in the US$ 20 per head range. In southern Brazil, profits have just returned from about 18 months of losses which at times were up to US$40 per head. Due to the 18 months of financial crisis, there was sow liquidation. How much is anybody’s guess because there is no organized national inventory statistical service. We heard of up to 8 per cent liquidation, we also hear of 2 per cent. Bottom line: in the last while, prices went up about 15 per cent. Like America, the other big factor is feed prices which have dropped about 30 per cent in the last 6-8 months. Higher hog prices and lower feed prices have returned the Brazilian industry to the black. The industry guesstimate on current sow herd ranges up to 2.4 million sows if you include backyard hogs: 1.5 million sows in commercial herds and 900,000 sows in backyards, or what they term subsistence production. Brazil is the #4 hog producing area in the world, after China, EU-27 and USA. We spoke at the Avesui event. The following is the text of our speech when we specifically addressed Brazil.


Brazil
Dangerous subject for me Brazil - been here only once before. An expert from thousands of kilometers away with next to little real knowledge. The best we can do is giving a perspective from a far.

Brazil is a dynamic country. Everyone in the world can see the relentless increase in Brazil’s pork, beef, and poultry production. You have pounded your way into world markets with price and volume. Right or wrong, it is not perceived to be quality driven.


Brazil has large land base with large feed production with upside potential. A key factor in your country’s competitive pig cost of production is you have land to increase swine production.


Brazil from afar appears to have an image of a country with disease problems from ongoing foot and mouth situations. Some global meat brokers have told us they do not have utmost confidence in Brazil’s meat inspection protocols and procedures.


Our perception is that Brazil’s swine producers are technically sound and have globally competitive productivity. One of the outside perspectives is Brazil has less than ideal transportation system which increases cost and time. Perception also is that bank credit for agriculture is harder to get then North America.


Brazil’s pork exports are dominated by Russia (50 per cent approx.). Over time this market will decline as Russia moves to self-sufficiency.


Brazil’s ability to grow in swine production will depend on increasing domestic per capita consumption (13 kg) and development of new export markets. The challenges are there, they always are. Brazil has in our opinion a dynamic future in swine production. This belief in Brazil is manifested in our new association with Mr. Martin Riordan who is working with Genesus in Brazil to develop our genetic relationships.
After the speech we participated in a round-table discussion with the other speakers. During the different talks, there were several comments about the current state of the USA economy, banking system, etc. There appeared to be some inference that the US competitive ability was diminishing. Right or wrong, we addressed this.

The gist of our round-table reply:
“I am Canadian, not American, but at the risk of being rude I believe I need to address the peril of underestimating the USA. Number 1 globally in productivity, #1 in innovation, about 25 per cent of the world’s gross domestic product. Yes, there are deficits but it is the only country in the world that can print unlimited money and its currency goes up in value. With next to no inflation. Never underestimate the work ethic, productivity and innovation of America’s people.” This week we continue our trip in Brazil and will report further our observations.


Another One Bites the Dust!
The great rock poet Freddy Mercury, with the band Queen, had an interesting anthem: “Another One Bites the Dust”. Such is the consolidation of the swine genetic industry, as Designed Genetics, a regional Duroc breeder in Canada, was purchased last week by the Dutch conglomerate Hendrix, based in Box Meer, Netherlands, European Union.

As the swine genetic industry moves to DNA gene mapping, larger population bases and enhanced technology, the rapid advancement in genetics is taking ever greater amounts of capital. Ones that do not have the capital and courage are disappearing.

The purchase of this Duroc population in itself, by a European genetic group, is an affirmation of the global push to the Duroc terminal. The move to meat quality and the forgiving production characteristics combined with Duroc´s evolution to high lean meat percentage, is pulling production from Pietrain-based genetics. Genesus has the world’s largest high-health herd of registered purebreds.


Author: Jim Long, President & CEO, Genesus Genetics

[mikey]

Phytate digesting pig up for approval 02 Jun 2010
The Enviropig is now up for approval by Canadian and US safety agencies after more than a decade of development, but hog industry experts are still lukewarm at best about the creature.
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“It’s an excellent concept, but I can’t even speculate on when it might even possibly be incorporated, if it ever will be, because there are so many other issues,” said Laurie Connor, the head of animal science at the University of Manitoba.
 
<--The Enviropig looks just a regular pig, but its manure is significantly easier on the environment, according to its creators. (Photo: Dr. Cecil Forsberg / University of Guelph)
 
Enviropig is a genetically engineered pig that expels lower amounts of phosphorus than traditional pigs. “There’s not a big push within the industry to embrace that particular direction.”
 
Mice genes included
Enviropig is a genetically engineered line of Yorkshire pigs developed at Ontario's University of Guelph. The pigs have the ability to digest plant phosphorus more efficiently than conventional Yorkshire pigs.
 
Researchers found a way to splice genes from mice and E. coli bacteria into the genetic structure of pigs to allow animals to digest a higher proportion of the phosphorus in their feed.
 
 
 
Benefits of the Enviropig:
The pigs produce an enzyme called phytase in their salivary glands that helps their stomachs break down indigestible phytate in their feed. Phytate accounts for 50 to 75 percent of grain phosphorus.
The Enviropig's ability to better use grain phosphorus eliminates the need to supplement with mineral phosphate or commercially produced phytase.
There is also less phosphorus in the animal's manure.
When phosphorus-depleted manure is spread on land in areas of intense swine production, there is less potential of phosphorus to leach into freshwater ponds, streams and rivers, reducing algae growth and limiting adverse effects on water quality.
Anxiety among industry
Many people in hog production are downright frightened by the concept, which they think could produce something that enemies of hog producers would love to exploit.
 
The anxiety and qualified support have followed the Enviropig since it was created in the late 1990s at the University of Guelph in southern Ontario.
 
On Feb. 20, Environment Canada announced that Guelph had received its approval to produce Enviropigs using “approved containment procedures,” according to the university.
 
The Enviropig was not found to represent dangers to the environment and will continue to be bred. In 2002, the university caused a squall of controversy when it sent Enviropig carcasses into the animal feed system but after that, tougher segregation safeguards were put into place.
 
Connor said reducing phosphorus output from pigs is a key industry concern, but genetic modification is not the only answer. Already supplements like phytase and research into balanced feed rations are allowing producers to increase phosphorus digestion and limit phosphorus extrusion.
 
Long way to go
And she said the Enviropig is probably a long way from getting into the commercial herd because not only will it need to be approved by health authorities and markets around the world, but it will also need to catch up with the breeding industry.
 
“Producing a high efficiency and high meat quality animal are things of paramount importance that have to go along with environmental sustainability and environmental responsibility,” said Connor.
 
The genetic basis of the Enviropigs may be well behind modern production animals now, she said.



p.s.here we go again the farmer or producer again is going to be at the mercy of big business and just like Smithfield of the USA,worlds largest hog producer we the producer will only become a babysitter of the product because these companies own the patents and the producer never owns the hogs he/she raises.Another form of contract growing.

[mikey]

Pork Commentary: World Pork Expo Report
CANADA - This week's North American Pork Commentary from Jim Long.

Jim Long is President &
CEO of Genesus Genetics.
Last week we attended the World Pork Expo in Des Moines, Iowa. Our observations:

There was good attendance. The producers we talked to are feeling a lot better. Making money does that. Unfortunately, 130 weeks of losing money doesn’t get all cured with seven weeks of profits.
The shortage of small pigs is getting feed companies and feeder pig brokers looking for people to put gilts in empty sow units. In our opinion, not much has happened yet on this front as credit is tight for operating and long term capital. We expect with existing sow units being valued at as little as 15 per cent of replacement value, the first expansion when it comes will be in existing empty sow units; not sure when this will happen, but in our opinion it’s mostly talk now with little action.


With lean hogs in the 70’s there was some concern of producers that we would have a hard time getting lean hogs over 80 this summer. Our answer was that we expected market hog supply to continue to drop through the summer months. Currently we are marketing hogs from sows bred last July-August. The US breeding herd dropped from 5.968 million to 5.760 million from June 2009 to March 2010, or about 200 thousand sows. We expect this decrease will continue to push hog marketings lower. A sow buyer told us very very few piggy sows were marketed in the last year. Sows were farrowed then shipped during the liquidation. This in itself delayed the supply effects of liquidation.


Some of the Genesus Team at the World Pork Expo
Producers from all over were quite confident in this year’s corn and soybean crop. This year when traveling along Highway 80 from Chicago to Des Moines we saw some corn near four feet high. Lots of moisture and heat are pushing this crop ahead.


Mexican producers who we visited with told us that hog prices in Mexico City had touched 90¢ US liveweight a lb. These prices are a reflection of the lack of hog supply in Mexico. Consequently, Mexico will continue to take large amounts of US pork to cover the shortage. Bullish for US hogs.


Producers from South Korea that we visited with told us that the price of hogs there was $1.40 US liveweight a lb. This too will lead to continued US export opportunities.


One of the major challenges for exports is the 10 per cent appreciation on the US dollar index since mid April. This in itself is making US pork exports higher in price for foreign buyers. We see this is negative for our industry, but fortunately with price points like in Mexico and South Korea, the effect will be lessened.


There were a number of Chinese producers at the World Pork Expo. It appears from conversations that the expansion of China’s swine industry continues. The H1N1 issue had stopped the export of pork and live breeding stock to China. Currently, no live breeding stock can go from the US to China. Negotiations are underway for protocols for H1N1 testing and quarantine regulations. It will be interesting how this plays out with some US breeders we talked to thinking that the US should not capitulate to the Chinese Government on new H1N1 testing requirements. The US in their opinion has healthy breeding stock and China should not be imposing unscientific demands.


Also last week at the World Pork Expo the National Pork Board announced the phasing out of the Other White Meat slogan used for over twenty years to promote US pork. We say, “Bravo!” this slogan was “old and stale”. It’s good to see the leadership of the National Pork Board is moving forward rather than living in the past. With the trust of about $50 million annually in producers check off money to protect and grow the pork industry, it’s wonderful to see a new dynamic direction.
Summary
The World Pork Expo was well attended. Producers are feeling better. There is continued evolution and consolidation, but we see little evidence of liquidation turning the other way. In the coming weeks we believe week upon week of hog supply closer to 1.9 million head a week, then 2 million will push hogs up into the $80 lean.

[mikey]

Feeding the Herd
CANADA - "As we work our way through the poor quality crop harvested in 2009, farrowing operations in particular are looking for ways to improve the sow herd performance and the quality of their weaner pigs," writes Ed Barrie, Sow Weaner Pig Specialist at Ontario Pork.

Information provided courtesy Ontario Pork

 

In the absence of new quality feed stuffs, the possible actions a weaner producer could consider can be reviewed.

Talk with your feed supplier, premix supplier, or nutritionist about the availability of non-traditional feed grains. Peas or wheat are two not commonly used in Ontario but may be available. See what is available at what prices. It may be reasonable to blend in limited quantities to your on-farm grains to boost animal performance. The question then becomes who gets what. The initial plan would be to provide sows in late gestation through lactation to 28 days post breeding with the very best quality feed you can supply. This should contribute to increased birth weights, enhanced milk production and higher weaning weights. Maintaining a better sow diet through weaning and breeding would increase ovulation rates, which will keep litter sizes up. It will also bring sow body condition to an acceptable level and in the process begin the development of embryos.

It is also a time to purchase or produce the very best quality creep and weaner rations. Best practices for feeding creep feed should be followed to encourage early and continual ingestion. Typically introduce creep feed around 10 days of age. Place only small amounts in a feeder and refill or change out several times a day. Keep it clean and dry. Some litters show no interest at all until 12- 15 days of age. Some producers have found it necessary to add warm water to form a paste to encourage consumption. This method does require extra care and attention to sanitation. The aim is to increase the intake of feed for the piglet and reduce the lactation demands from the sow. Once a litter is consuming solid feed you can move on to less expensive starter feeds. The usual method is of blending 1/3 of the new feed into the old feed to start, then adjusting the blend over several days till only the new feed is in use. Post-weaning, maintain a good feed quality until around 25kg. At this weight, typically the time they are moved into finishing units, pigs have the size and intestinal capacity to adopt to the feed you have available.

Barn records suggest some herds may be taking 2 to 3 weeks longer than ususal to reach market weight. A number of producers have suggested that with the reduced bushel weight corn, it is more a question of getting enough weight of nutrients into the animal to realize its full performance. Other producers have been troubled with the problems of moulds, with the resultant feed refusal problems. This would be an appropriate time for producers to use the resources of their suppliers to test grains for moulds and nutrient content.

Premixes/feeds can be formulated to provide the best nutrition possible using the grains available. In previous years of poor quality corn some producers found value in bumping up inclusion rates of protein and vitamin mineral components. It is also an appropriate time to consider adding fats and/or oils to any rations which may benefit the class of animal they are fed to.

We are currently about 90 days from harvest of some new crop grains. With their arrival, producers should consider purchasing and blending into farm stored grains until the old crop is used, being aware of the potential for the quality of stored mouldy grains to worsen with warming temperatures. Generally the larger and older the animal, the greater is its ability to face nutritional challenges.

[mikey]

Wednesday, June 23, 2010 Focus on Marbling to Maximise Value of Pork
CANADA - The Canadian Centre for Swine Improvement is confident new tools being developed to control the amount of marbling in pork will allow the Canadian pork industry to maximise the value of its products, 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 Canadian Centre for Swine Improvement represents pork producers, packers and processors and swine breeders and provides services in the area of genetic improvement.

Last month, as part of a federal government initiative to help boost the Canadian pork industry's competitive edge in foreign and domestic markets, the centre received funding to develop methods to predict and to promote marbling in pork products.

Centre general manager Brian Sullivan says the goal is to provide tools to evaluate, select and manage pigs to produce desired levels of marbling.

Brian Sullivan-Canadian Centre for Swine Improvement
Marbling is the relatively small amounts of fat that exist within a muscle as opposed to between muscles or around muscles.

It's also know as intramuscular fat and it's significant in that it affects the juiciness and the flavor and even the tenderness of pork and other meats like beef as well.

It's significant right now for the Canadian swine industry in that the levels of marbling are very very low in a typical piece of pork that a consumer will pick up in the grocery store.

It's lower than what consumers would really prefer by the time that pork chop or piece of pork reaches their plate.

Mr Sullivan says some markets want very high levels of marbling while other markets are looking for lower levels.

He says the ability to increase or decrease marbling to match specific markets will help maximise the value of the pork products going into those markets.

[mikey]

Pork Commentary: June USDA Hogs and Pigs Report
CANADA - This week's North American Pork Commentary from Jim Long.


Jim Long is President &
CEO of Genesus Genetics. 1 June USDA Hogs and Pigs Report
1000
  2009 2010 2010% of 2009
Kept for Breeding 5968 5788 97
Market 60842 58612 96
Hogs and Pigs by Weight Group
Under 50 lbs 19554 18879 97
50 – 119 lbs 17838 16877 95
120 – 179 lbs 12604 12279 97
180 pounds and over 10847 10578 98
Pig Crop
March - May 29012 28199 97
Sows Farrowing 3018 2875   
March – May Pigs per litter 9.61 9.81 102


Other Observations
The Market inventory shows a year over year decline of around 1.8 million head. That’s about 75,000 a week less hogs coming to market year over year over the next four months. Definitely fewer hogs and that will continue to support market hog prices.


The June USDA report indicates that the breeding herd is about 180,000 head fewer than a year ago. On the flip side it indicates the breeding herd grew 28,000 from 1 March. We expect to see little expansion over the summer quarter, a quarter that historically has been one of liquidation and of little expansion.


The March – May Pig Crop was around 800,000 fewer than the same quarter a year ago. This trend to fewer pigs will continue through the year with the practical and biological fact it is now almost impossible to place gilts and get their offspring to market before next summer. We can now almost guarantee profitable hogs into the fall of 2011. After that the jury is out, and looking for evidence.


The March – May litter size is up 4/10 of a litter in the last two years. The genetic strides in our industry are being seen in the market place. Genetic gains of .25 a litter are still being made. We expect this productivity trend to continue. Swine Genetics Companies that can’t keep up will be punished in the marketplace with lost business.


The June Report shows of the 180,000 fewer sows year over year. There were 110,000 less in North Carolina, Texas 40,000. Other smaller non Midwest States 45,000. For all intents and purposes the Midwest breeding herd held over the last twelve months. Why? We would guess land value, packer availability, faith in the future? If you went to war there is no doubt you want to fight in a unit of wild bunch pig producers. Fighters who despite all odds survive.
Ontario Pork Congress
Last week we attended the Ontario Pork Congress. Our observations:

Ontario has downsized about 100,000 sows from its peak inventory four years ago going from about 430,000 to 330,000 sows. What we found surprising is the generally positive attitude of the attendees despite the dismal economic reality of the last few years.


We were told that existing sow units are valued at between 10% to 40 per cent of new. Fortunately producers selling out have been helped by the high value of farm land which is now touching $10,000 per acre. We heard of no empty sow units being restocked.


One of the big issues with Ontario producers is the future of Maple Leaf Foods slaughter plant in Burlington Ontario. With a capacity of about 42,000 head per week (currently operating at about half capacity), Maple Leaf announcement a few weeks ago to try to actively sell the plant has made many producers nervous. Not so much about them selling it but the fear that it might be closed. A closure would short Ontario’s slaughter capacity below production. Unfortunately with Ontario’s weekly marketing’s between 70-80,000, a new potential buyer has to wonder about potential supply.


Ontario’s industry is dominated by family owned and operated land based businesses. From what we can determine, the largest producer has under 20,000 sows with maybe 5 producers over 5,000 sows in the 330,000 sow total inventory. As a group they are good producers and most will and can stay in as long as they want.
Summary
The June USDA Hogs and Pigs Report confirmed what most expected - Fewer pigs and hogs. We expect cash prices to trend higher, soon reaching into the mid 80’s. Our industry barring an unforeseen health or trade issue will be profitable through the summer of 2011.


Author: Jim Long, President & CEO, Genesus Genetics