Canadian Pork Producers:

[Mustang Sally Farm]

Thursday, March 22, 2012
Govt of Canada Helps Swine Producers Boost Exports
CANADA - Canadian swine producers will benefit from increased export access with the support of the Government of Canada. Parliamentary Secretary Pierre Lemieux, on behalf of Agriculture Minister Gerry Ritz, announced an investment of more than $1.3 million to help the Canadian Swine Exporters Association (CSEA) increase its international marketing and promotion of Canadian purebred swine genetics.


"Our Government's top priority remains the economy, and Canada's swine producers play a key role in creating jobs and economic growth," said Parliamentary Secretary Lemieux. "This investment will help our swine producers expand their production and capture new markets to strengthen their businesses and our overall economy."

This investment is enabling CSEA members to participate in key industry trade shows, including the International Livestock and Dairy Expo (ILDEX) in Vietnam later this month. AgriMarketing funding also helped facilitate a new contract for Canadian swine genetics worth $1.6 million during Minister Ritz's trade mission to China last month, when Genesus Inc., one of the top swine breeding companies in the world, signed a contract for 1,000 breeding swine.

"The AgriMarketing Program has assisted us in opening new markets in new countries to further develop the swine industry globally," said CSEA Executive Director Rosemary Smart. "Today, the Canadian swine sector benefits from a solid reputation all over the world for its top-quality, healthy genetics."

The investment announced is provided by the AgriMarketing Program under Growing Forward, which helps industry implement long-term international strategies. As a recipient of AgriMarketing funds, CSEA will help brand Canadian agricultural products around the world, building greater recognition for the quality, safety advantages and environmental benefits of Canadian products. Tools and promotional items are available to CSEA as a registered Canada Brand member to help develop its marketing strategies and activities.

[Mustang Sally Farm]

Loading Facilities for Market Hogs: Saskatchewan’s Top Ten
For swine producers, loading pigs at marketing can be one of the most stressful and time-consuming experiences, according to Harold Gonyou, Jen Brown and T. Stevens in the newsletter from the Prairie Swine Centre.

Problems at loading also affect the welfare of animals and have a significant economic impact as they may cause death losses, carcass damage and meat quality problems.

The objective of this project was to identify components of swine load–outs that have the greatest impact on pig stress and loading time. Ten swine load–outs in Saskatchewan were visited, and the facility design and handling methods at each facility were documented by photographs and video footage. Observations were compared against recommended practice to identify design features and practices that promote good handling in pigs.



Harold Gonyou, PhD



Jen Brown, PhDBackground
Poorly designed loading facilities increase the incidence of prod use and rough handling, and result in longer loading times. Stress associated with loading can also increase the incidence of downer pigs and death losses, as well as having adverse effects on carcass and meat quality. Methods for reducing stress at loading have been identified, however, few producers have adopted these changes as construction costs are high and the benefits are uncertain. This project documented loading facilities and handling methods in barns recognized for having good load–outs. The results provide clear suggestions for changes to facilities and management at loading that will facilitate adoption of improved practices to benefit pigs and producers.

Experimental Approach
Saskatchewan farms with superior loading facilities were identified based on information supplied by pork producers and truckers. Participating farms were selected from locations across the province in order to document a wide variety of load–out designs. Participating farms included large corporations such as Fast Genetics and Big Sky Farms, as well as individual producers. Each visit included a brief questionnaire on the basic housing and management practices, measurements of the loading facility, and observation of the handling techniques used to move pigs at loading.


--------------------------------------------------------------------------------
*
"Important design features include wide alleys, even lighting, moderate ramps with cleats or steps and non-slip flooring. Some of the best farms also used dedicated man-ways, pre-loading pens and truck bays." 

--------------------------------------------------------------------------------
 
Load–out measurements included the width, length and height of pens, alleys and doorways. Light intensity was measured in lux using a light meter placed at pig height at various locations throughout the load–out. Ramp angle was measured and any corners, flooring changes or obstacles were documented using a digital camera.

For each farm visit, a video camera was either mounted in the load–out, or operated by the producer, to record handling techniques used at loading. For each site, either live observations or video footage of pigs at loading were reviewed to assess handling technique and pig flow. Handling techniques were evaluated on the basis of appropriate/inappropriate use of tools (prods), handler vocalisations, body position, attitude and factors affecting the flow of animals.

The results of this study were descriptive observations. By examining superior facilities and handling methods, and comparing them with recommended practice, we identified design and handling practices that are effective at reducing stress during loading.



Figure 1. Hydraulic loading ramp with manway (looking down ramp from truck entry).



Figure 2. Well lit load–out with concrete steps (30–cm treads).Results
The 10 farms studied included six farrow–to–finish operations, three finishing barns and one farrow–to–wean operation. Hogs marketed per week ranged from 160 to 1,100 animals, with an average of 500 hogs shipped per week. Loading time needed to fill a standard potbelly trailer (approx. 230 pigs) ranged from 30 to 90 minutes (45 minutes on average).

Load–out Design
Recommended practice indicates that ramp angles should be less than 20°, that ramps should be fitted with cleats and have a non-slip surface. Ramps observed on all farms met these specifications, with ramp angles ranging from 0 to 11°. Figure 1 shows examples of the ramps observed. The ramp designs varied considerably but all worked well. Some farms had concrete step ramps with 30–cm treads, which the pigs readily negotiated. One farm had an adjustable hydraulic ramp with an attached man way, which was very efficient for moving multiple groups up the ramp. As well, the adjustable ramp was used to load the top deck, which reduced handling stress compared to the steep internal truck ramp. One colony fabricated a ramp extension which was used to reduce the slope of the internal truck ramp, making it easier to load pigs onto the top deck.

Lighting in the load–out area was also examined. It is recommended that loading facilities be well lit, with diffuse incandescent lighting preferred as this reduces contrast and shadows, which may cause animals to balk. Also, when moving into a new area such as the truck, lighting should ideally change from darker to lighter, as animals may balk if required to move into darkness. Lighting levels recorded using a light meter showed a large variation in lighting between farms, ranging from below 100 lux at some facilities to over 1,000 lux at others. Lighting during loading was also affected by the time of loading and external weather conditions. Some facilities used an enclosed truck bay, which minimised effects of time of day and weather conditions.

Handling Practices
Recommended practices related to group size, distractions and handler technique and attitude were reviewed. In terms of group size, smaller groups (five to 10 animals) have been shown to be easier to move. If larger groups are moved, considerations must be made regarding the animals (level of fear and willingness to move), facilities (minimal blockage or distractions) and the handlers abilities. Distractions are known to cause pigs to slow, balk or turn back. One common distraction is too many handlers, or handlers getting ahead of pigs and causing them to turn back.



Figure 3. External loading ramp allows trucker to assist without entering barn. Note also the ramp extension used to reduce angle of truck ramp to top deck.Handler technique and attitude are very difficult to define and measure, however, general recommendations include minimising prod use, using behavioural principles such as the flight zone and herd behaviour, and maintaining a calm and consistent attitude. Prod use on the farms observed was very low. In fact, the farm with highest prod use had the longest loading time. This is because when the prod is used frequently, pigs become less capable of responding and attempt to turn back.

Several examples of good handling were found. In one example, the handler stood well back of a large group as they exited the home pen, providing ‘release’. When pigs are moving well, a good handler will step back and let the animals move on their own. In another example, groups of 12 pigs were moved with minimal interference from handlers. The pigs exited a pre-loading pen, negotiated a turn and mounted the truck ramp calmly with handlers using boards and minimal prod use.

Presentations to Producers
Results from this work were presented to producers at the Red Deer Swine Technology conference on 2 November 2011. Dr Matt Ritter, a research scientist with Elanco Animal Health, also presented on handling practices at this meeting, emphasising effects of handling on stress and pork quality. The results were also presented on 3 November 2011 at the BC Pork Congress in Chilliwack, BC. Additional presentations will be made in 2012.

The Bottom Line
There is a large variation in facilities and handling skills across the swine industry, and often little opportunity for producers or barn employees to gain new knowledge. Lighting, flooring, alley and ramp dimensions, and animal handling techniques all have the potential to cause problems when moving pigs through a facility.

The best load–outs in Saskatchewan are ones which take these factors into account. Prairie Swine Centre’s results highlight the fact that handling of pigs can be improved by a variety of measures, ranging from extensive load–out renovations, to simple changes in lighting and handling techniques.

Acknowledgements
We gratefully acknowledge support from the Saskatchewan Ministry of Agriculture’s ADOPT program, the Saskatchewan Pork Development Board and participating producers.

March 2012

[Mustang Sally Farm]

Tuesday, March 27, 2012
US Appeal to WTO on COOL Disappoints Pork Industry
CANADA - The Canadian Pork industry is disappointed to learn the United States has decided to appeal a World Trade Organization panel decision that struck down discriminatory and trade distorting elements of the US Country of Origin labeling (COOL) legislation as it applies to imported livestock.
 

"COOL increase costs and create inefficiencies without improving consumer information," stated the Canadian Pork Council’s Chair, Jean-Guy Vincent. "An integrated North American market is more competitive and sustainable for all producers in the long run, and allows all of us to be more competitive globally."

The Canadian Pork Council and its members from Ontario and Manitoba worked in collaboration with the Canadian Cattlemen’s Association to provide the analysis to support the government’s efforts to establish that important element of COOL are not consistent with US WTO obligations. The WTO Panel confirmed that the legislation restricted market access and was a technical barrier to the movement of live swine into the US market.

"Canada clearly won all three points that we challenged and the WTO panel ruled that COOL discriminates against Canadian livestock and is inconsistent with WTO rules," added Mr Vincent.

[Mustang Sally Farm]

Wednesday, March 28, 2012
Efforts to Expand Economic Ties with Japan
CANADA - The Canadian pork industry welcomes the Canadian government’s efforts to expand economic ties with Japan and congratulates the two countries’ governments on the decision to negotiate a comprehensive economic partnership agreement to expand trade and investment.
 

“Pork exports from Canada to Japan have been a major success story and this has led to a strong trade relationship that has benefited both countries,” stated Canadian Pork Council’s Chair, Jean-Guy Vincent “The Canadian pork sector has a long history of trade with Japan that goes back more than 40 years, since the first shipment of pork left Canada for Japan.”

The Japanese market is extremely important for all Canadian pork industry stakeholders with sales in 2011 of 219,000 tonnes valued at $894 million. This represents approximately 20 per cent of total Canadian pork exports by volume but almost 28 per cent in value. The Canadian hog industry estimates that a successful economic agreement with Japan could increase Canadian pork exports to Japan by 20 per cent to well past $1 billion a year.

Canada is currently Japan’s third-largest supplier of pork, after the United States and the European Union. “There is certainly room to grow our sales to Japan,” added Mr Vincent, “and a trade liberalization agreement between our two nations will provide a big boost for that to happen.”

“The Japanese market is very demanding on the safety of products requiring a high level of food safety from importers,” said Mr Vincent. These requirements have enabled the Canadian pork industry to develop high quality food safety programs, such as the CQA Program, that have assisted the industry in accessing Japanese and other international pork markets.

[Mustang Sally Farm]

Wednesday, March 28, 2012
Genesus Dominates National, Global Results
CANADA - The official results for all Canada 2011 purebred swine registrations were announced at Canada Swine Breeders Annual Meeting Toronto, 26 March 2012.
 

Genesus continues to dominant National and Global results. Genesus registered in 2011 15,471 boars and 45,379 gilts of Yorkshire, Landrace and Duroc, the largest number of registered swine in the world.

“Genesus is committed to producing genetically enhanced registered purebreds; we believe real purebreds are the surest way to maximize hybrid vigour which results in Genesus Customers Leading the industry in production results.” Jim Long President-CEO Genesus.

Canadian Livestock Records Corporation
Swine registrations by Number Registered, Owner at Birth and Sex from 01/01/2011 to 31/12/2011

Canadian Swine Breeders Association
Genetic Company Males Females Total
Apple Valley Farm 312 1399 1711
Bloomsbury Farm Ltd 610 1174 1784
Bodmin Ltd 1910 1866 3776
Danbred - - -
Design Swine Genetics 27 67 94
Fast Pigs Inc. - - -
Fermes Jacques Oullet Inc 179 200 379
Genesus Inc. 15471 45379 60850
Genetiporc - - -
JSR Genetics Ltd - 1 1
Hypor 675 331 1006
James S. Donaldson 363 696 1057
International Genetics PEI Ltd. 270 1292 1562
Novastar Genetics Inc. 214 1765 1979
Pembina Hog Farms 501 407 908
PIC - - -
Pyramid Pig Breeders 20 84 104
Sunterra Farms Ltd 994 1067 2061
Topigs 629 576 1205

[Mustang Sally Farm]

Monday, April 02, 2012
Canadian Pork Industry Supports Trade Expansion
CANADA - The Federal Budget released by the Minister of Finance Jim Flaherty on Thursday (29 March) afternoon outlined two commitments that will further strengthen the hog industry.
 

The budget looks at:

intensifying Canada’s pursuit of new and deeper trading relationships, particularly with large, dynamic and fast-growing economies.
implementing the Action Plan on Perimeter Security and Economic Competitiveness and the Action Plan on Regulatory Cooperation, which will facilitate trade and investment flows with the United States.
"The Canadian swine industry is very supportive of expanding trade and cooperation activities that would help to improve the trading climate and competiveness of Canadian pork," stated CPC’s chair Jean-Guy Vincent "We are very supportive of the Canadian governments trade agenda and look forward to the successful completion of the trade agreements with the European Union, Japan and South Korea in the near future."

In cooperation with the Canadian Cattlemen’s Association (CCA), the CPC has been engaged in the Canada-United States Regulation Cooperation Council (RCC) since its formation last year. The RCC highlights the importance of regulatory cooperation in areas such as: the implementation of electronic export certificates for meat and live animals crossing the US/Canada border; the harmonization of the approval process for veterinary drugs, and; the mutual recognition of zoning systems and veterinary equivalency.

Opening markets is of critical importance to the Canadian pork industry. Canadian pork exports in 2011 exceeded 3.2 billion dollars. Live swine exports contributed another 400 million dollars to Canada’s merchandise trade account. Almost two-thirds of Canada’s pork production is exported. With constantly changing conditions of export competition – exchange rates, agricultural policy and technical barriers to name a few – Canada’s pork producers are extremely concerned that Canada not fall behind the United States and other competitors in terms of access acquired through regional trade agreements.

[Mustang Sally Farm]

Thursday, April 05, 2012
Producers Advised to Closely Monitor Feed Costs
US & CANADA - A US-based agricultural economist is advising North American pork producers to keep a close watch on production costs, writes Bruce Cochrane.
 
Dr Ron Plain, an agricultural economics professor with the University of Missouri, says one of the amazing things is just how volatile cost of production has become.

Dr Ron Plain-University of Missouri
A decade ago we had corn prices in the States stuck around two dollars per bushel give or take.

Lately we've been above six dollars a bushel.

There's a lot more feed price risk than we used to have in the hog business so producers on both sides of the border need to pay a lot of attention to that.

Then of course hog prices, a lot of volatility there and certainly always has been a lot of price risk on what producers are going to be able to sell their hogs at.

Exports are a big part of the markets for U.S. producers as it is the same for Canadian hog producers.

How the world economy goes, the Pacific Rim has been a strong growth market for pork exports from North America in the last few years.

If they continue to do well in the economies of Japan and Korea and China then there's a good chance that export demand will be strong.

That's good for hog producers and of course the domestic markets, how the economy goes here in the United States and Canada, that's the biggest market for North American meat and so whether we're going to see some better economic growth or a softening of growth is going to also impact on the bottom line for producers.

Dr Plain acknowledges USDA expects 95 million acres of corn to be planted in the US this year, the most since 1930s, and if that comes through then we might see a bit of a decline in feed costs.

[Mustang Sally Farm]

Wednesday, April 11, 2012
Sofina Buys Former Maple Leaf Pork Plant
CANADA - Investment company, Sun Capital Partners, is to sell the former Maple Leaf pork plant, Fearmans Pork, which operates the largest pork processing facility in Ontario, Canada, to Sofina Foods.


The terms of the deal were not disclosed, but the sale is expected to close once regulatory approvals are obtained.

Headquartered in Burlington, Ontario, Fearmans Pork was acquired by an affiliate of Sun Capital from Maple Leaf Foods in a corporate carve-out transaction which necessitated assembling a new management team and corporate infrastructure.

Fearmans Pork expanded production to meet demand, implemented new hog procurement programs to improve quality and delivery, and introduced products for niche markets. As a result of these improvements, 2011 sales increased by 16 per cent.

“Fearmans Pork has made great strides as a standalone business,” said Marc Leder, Co-CEO at Sun Capital Partners.

“Management has effectively created an infrastructure and stabilized hog procurement, which assures the region’s hog farmers that they have a committed and capable partner. Sofina Foods is a natural steward for the next stage of its growth.”

Sun Capital Partners has prior experience in the sector through its affiliated portfolio companies, including Contessa Premium Foods, a leading US processor and distributor of premium seafood and frozen convenience meals; Creekstone Farms, a processor of high-quality Black Angus beef and seller of branded fresh beef and value-added products; Harry’s Fresh Foods, a producer of premium home-style refrigerated foods for the retail and foodservice markets; and Sunrise Growers-Frozsun, a leading value-added U.S. supplier of frozen strawberry products and a distributor and marketer of fresh strawberries.

[Mustang Sally Farm]

Thursday, April 12, 2012
Canada Invests in Toronto Processing Plant
CANADA - Producers in southern Ontario will benefit from upgrades to a local processing facility with the support of the Government of Canada.


Agriculture Minister Gerry Ritz has announced an investment of C$3 million to Quality Meat Packers Limited to upgrade its processing facilities.

"Our Government is creating the conditions for growth in the hog sector which will help hog producers and processors compete on the national and international scene," said Minister Ritz.

"Our plan is clear: this Government is making strategic investments to strengthen the competitiveness of Canada's livestock sector and opportunities for producers."

"This loan allows us to invest in the modernization of our Toronto plant that has been processing Ontario hogs for over 50 years," commented David Schwartz, president of Quality Meat Packers.

"We will enhance food safety and traceability, improve plant efficiency, and reduce operating costs through the purchase of value-added equipment."

Under Canada's Economic Action Plan, the $60-million Slaughter Improvement Program made federal repayable contributions available to support sound business plans aimed at reducing costs, increasing revenues, and improving the operations of meat packing and processing facilities in Canada.

[Mustang Sally Farm]

Monday, April 16, 2012
Factor Driving Interest among Pork Producers
CANADA - A research scientist with Alberta Agriculture and Rural Development says the speed with which feed ingredient quality can be assessed using Near Infrared Reflectance Spectroscopy is the main factor driving interest among pork producers in the technology, Bruce Cochrane writes.
 
A Near Infrared Reflectance Spectroscopy calibration developed by researchers with the University of Alberta and Alberta Agriculture and Rural Development to predict barley digestible energy will be among the developments discussed next week in Winnipeg when the Canadian International Grains Institute, in conjunction with the Animal Nutrition Association of Canada, hosts a Canadian Feed Technology Course.

Dr Mary Lou Swift, with Alberta Agriculture and Rural Development, notes NIR is commonly used within the grain grading system to evaluate protein and moisture and in many laboratories around the world to evaluate ingredient and forage quality.

Dr Mary Lou Swift-Alberta Agriculture and Rural Development
Near Infrared or NIR as we commonly call it is a tool actually similar probably to X-rays.

It uses the principles of light energy to indirectly measure the amount of materials like protein, starch, fat, et cetera that are in feedstuffs and forages.

The interest has been spurred on by the fact that NIR is a rapid evaluation method.

Within 30 seconds you can scan a sample of barley or wheat and obtain up to 60 different values so it saves a lot of time in terms of what chemistry and in money.

I think that is really spurring on, especially with the development of specialized equations like digestible energy or digestible fibre that can be used to count the pennies I think when it comes to formulating animal feeds.

Dr Swift observes now that we have the ability to analyze digestible energy, interest in the technology has grown exponentially.

She notes some estimates range as high as eight dollars per pig that can be saved if energy can be accurately assessed in barley.

[Mustang Sally Farm]

Tuesday, April 17, 2012
Protection from Disease for Canada's Swine Herd
CANADA - The Executive Director of the Prince Edward Island Hog Marketing Board says the Canadian Swine Health Board's National Biosecurity Training Program has added a new level of protection for Canada's swine herd, 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 National Biosecurity Training Program, based on the National Farm Level Biosecurity Standard developed by the Canadian Swine Health Board, was launched in Prince Edward Island earlier this year.

Tim Seeber, the Executive Director of the Prince Edward Island Hog Marketing Board, says producer participation in the training program is already approaching 90 per cent.

Tim Seeber-Prince Edward Island Hog Marketing Board
The circovirus that happened in the first years after 2000 that decimated the industry prompted the federal government to take the initiative, ask the Canadian Pork Council to look into measures that they could take to counteract disease that would affect the industry.

Because of that the Canadian Swine Health Board was put in place and one of their initiatives was to do a baseline study to just see the level of biosecurity that was in place across the country.

The more awareness you have as far as biosecurity goes and the potential things that can affect your herd, world travel has increased significantly with the passing of time and it means that you have more potential for disease to be brought from other jurisdictions.

I think that there's a real need that this stuff would be put in place to save the industry and to prevent any disasters that have happened in other parts of the world because biosecurity has not been in the forefront of their planning and industry protocols in other areas.

Mr Seeber says at just under 90 per cent producer participation is higher than expected.

For more information on the National Biosecurity Training Program visit the Canadian Swine Health Board web site at swinehealth.ca or contact your provincial pork organization or local swine health veterinarian.

[Mustang Sally Farm]

Wednesday, April 18, 2012
Pork Commentary: Pork Industry Round Up?
CANADA - The Enviropig, developed over a decade ago at the University of Guelph, has had its ongoing funding stopped by the Ontario Pork (Producers group), writes Jim Long.

Jim Long is President &
CEO of Genesus Genetics.
The Enviropig was genetically altered by an added gene of a rodent which in turn lowered the Enviropig’s phosphorus production. The end of funding for this ill conceived project has been a long time coming. Ontario farmers had funded this loser with too much money for too long. We can remember telling the well meaning professor, who developed this project over a decade ago, “Your pig is dead on arrival. Not one packer, retailer or restaurant is going to use or sell pork with a rat gene in it!” Enough said. Sometimes you wonder if anyone thinks the end game before they squander time and resources.

The US Food and Drug Administration (FDA) are encouraging producers not to use antibiotics in livestock production, this as a defensive measure by FDA. Pressure from pseudo-scientists/congress people, are pushing for antibiotic restrictions beyond voluntary control. Such restrictions in Europe have significantly increased the cost of meat production and food costs.

US Lean Hog Price Futures took a whack at the end of last week with June closing at 90.525 lean a lb. Current lean hog futures would, in our opinion, reflect little profit in the coming months with current feed prices. Lots of trading of dollars with little show for it.

We expect now that Easter is over and we move in to the seasonal hog supply decline to see a rally in cash hog prices. The mildest weather in history has lead to higher carcass weights which has increased pork tonnage. As hot weather comes, we expect a rapid decrease in carcass weights. In our opinion hogs are not backed up. All hogs that need to be marketed are finding homes.

Corn is being planted early. Soil temperatures in the 60F plus range in Iowa, Minnesota, Illinois etc., are high for this time of year. The earlier corn gets planted the better chance of higher yields and more total acres. We need a big crop for supply and possible chance of lower prices.

Sun Capital, as US investment firm, announced last week it was selling their Burlington Ontario hog slaughter plant and business called Fearmans to Sofia Foods of Canada. The Fearmans plant has a capacity of 42,000 head a week, (it’s not running at capacity). Sofia Foods markets pork, turkey and chicken. It has about 1200 employees prior to this acquisition. We assume it’s good news for Canadian producers. No one buys something without seeing value. Sofia is knowledgeable in the meat and pork business. They are Canadian.. Sun partners, a huge investment firm, have a history of flipping businesses for a profit. (Good for them.), they came, they left. Life goes on.

As Cargill goes, as goes Agriculture? Cargill in the first nine months of their fiscal year, had earnings from continuing operations of $1.1 billion. Not as good as the previous year but still pretty swell. These profits are a reflection of not only U.S and Canada but Cargill’s global reach and involvement. Everywhere we travel in the world, Cargill is there. Can still visualize travelling out in the middle of nowhere in Russia, heading into town miles from a major center coming up on a huge elevator, painted on the side “Cargill”. We thought we were the first westerners there, not by a long shot. Cargill is a great example of American know how, aggressiveness and push to success.

Reports this last week say China is going to cut back pork inputs, maybe. Hog prices in China are around $1.07 US liveweight a lb, U.S liveweight prices are $0.61 US. a lb. That is about a $0.46 a lb difference or about $124 per head. We do business with China. They understand the economics of business. We would bet the farm a $124 per head difference for Chinese entrepreneurs, packers, meat distributors keen on importing with such a huge margin to work with. Also the Chinese proof of hogs is a direct reflection of the real supply versus demand. Chinese prices of $1.07 lb hogs = strong demand = hog shortage. We expect exports will be strong to China for the next few months supporting US hog prices.


Author: Jim Long, President & CEO, Genesus Genetics 

[Mustang Sally Farm]

Friday, April 27, 2012
Improved Response to Disease Threats Expected
CANADA - The Canadian Swine Health Board says the establishment of a new national communication network for swine veterinarians will speed up the response to health threats within the Canadian swine industry, 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. 

To address gaps identified in swine health surveillance within the Canadian swine industry the Canadian Swine Health Board has initiated the development of the Canadian Swine Health Intelligence Network.

The network will use social media to allow swine veterinarians across the country to communicate regularly and share information when a new disease threat occurs.

Dr Dan Hurnik, the chair of the Canadian Swine Health Board's Long Term Disease Risk Management Committee and a member of the faculty of the Atlantic Veterinary College at the University of Prince Edward Island, says when responding to disease timing is critical.

Dr Dan Hurnik-Canadian Swine Health Board
Our goal here is that this intelligence network will be a set of eyes that will pick up new trends early, so if you can identify something that's just starting, work with the biosecurity people to make specific recommendations to prevent its spread and make sure that information is known across the country, we can hopefully limit the spread of a disease that will cost the industry a lot of money.

Those are processes that, in the circovirus outbreak, we didn't have in 2005.

Each regional applied procedures and the time it took to organize meetings and plan a response plan, for example a meeting to speed up the development and distribution of a vaccine, took a long time to plan.

Hopefully, with the intelligence network that will recognize the problem sooner, that can coordinate meetings and take action where necessary, the response time will be much shorter and the industry will be served much better.

Dr Hurnik says years ago we didn't have the same ability to communicate quickly, efficiently and effectively and this new approach will hopefully improve Canada's ability to respond to disease threats.

[Mustang Sally Farm]

Monday, April 30, 2012
Pork Industry Promotes Trade Agreement with EU
CANADA - Pork industry leaders have participated in a series of events across the country to promote the importance of trade to the Canadian pork industry and to highlight the benefits of an ambitious Canada-European Union free trade deal.


“We are extremely fortunate to have excellent animal health status, a good supply of high quality feed grains, a very low animal population density and a strong reputation all over the world as a supplier of safe high quality pork,” stated Canadian Pork Council Chair Jean-Guy Vincent.

“Canada is a globally competitive and successful producer and exporter of pork and pork products. The key factor to sustaining our success is the ability to access a wide variety of markets.”

An ambitious Canada-European Union trade agreement would significantly enhance the sector’s export opportunities as well as benefit workers, businesses and families who rely on the pork sector for their livelihood. Pork is the preferred meat among Europe’s population of more than half a billion people.

There are no tariffs or quotas on pork imports to Canada. The Canadian industry, however, is seriously constrained from access into the European Union due to such constraints as tariffs, tariff rate quotas, import permits and licensing requirements. Equivalency in access conditions for pork trade between Canada and the European Union is one of the most promising opportunities to increase returns and to provide growth for hog producers and value-chain partners, including grain growers, pork processors and the many Canadian companies involved in the meat export trade.

“We look forward to successfully completing talks with the European Union. This will provide the Canadian industry with the additional marketing opportunities that are needed to realize our long-run potential as a leading exporter of pork to the world and, as importantly, a return on our investments,” added Mr Vincent.

The CPC serves as the national voice for hog producers in Canada. A federation of nine provincial pork industry associations, our organization’s purpose is to play a leadership role in achieving and maintaining a dynamic and prosperous Canadian pork sector.

[Mustang Sally Farm]

Tuesday, May 01, 2012
Pork Commentary: Swine Canada Inventory Report
CANADA & US - Last week, Statistics Canada released its April 1st Canada Swine Inventory Report. The breeding inventory is real steady, in 2011 1.311 million in 2012, 1.312 million. That is a 100–head difference year–over–year – real steady, writes Jim Long.


Jim Long is President &
CEO of Genesus Genetics.
The Canada market inventory was up year over year by about 200,000 head (2011: 10.519 million; 2012: 10.729 million).

Canada’s industry is in a holding pattern as profits have been limited by high feed prices, and a par Canadian dollar to US. Producers who grow their own feed are cash flowing quite well. High cost feed purchasing production systems are losing money. With the current high feed prices and current future lean hog futures, we expect some decrease in the breeding herd in the coming months primarily from feed purchasing companies.

Canada's live hog exports to the US in the first three months are steady.

Live Hog Exports to US
Year to date April 4, 2012 hogs (head)
  2012 2011 % change
Barrows/gilts/sows 235,533 278,170 -15.3
Feeder pigs 1,293,049 1,265,723 2.2
Total 1,528,582 1,543,893 -1.0

The US in the past imported more than double the current rate. US Country of Origin Labeling and lower Canadian pig supply from a Canadian breeding herd 300,000 smaller than a few years ago had dramatically cut Canadian pig supply.

Canada’s weekly hog kill is year of date to April 14 -1.1 per cent lower (2012: 5.952 million; 2011: 5.990 million).

Summary
Canada’s breeding herd, US live exports and slaughter numbers have little change year over year. A small increase in market hog inventory from productivity gains. Canada’s production is not changing much anytime soon due to high feed prices, currency exchange rate but probably just as importantly very little long term optimism.

US – Canadian hog inventory
The US–Canadian report for April indicates the direction of the two interdependent countries inventory and supply.

US – Canadian hog inventory
Annual in March ('000 head)
  2007 2008 2009 2010 2011 2012 2012
as % of '11
All hogs and pigs 76,625 80,218 77,704 75,218 75,514 76,912 102
Kept for breeding 7,720 7,675 7,377 7,074 7,098 7,130 100
Market 68,904 72,544 70,328 68,144 68,416 69,782 102
Under 50 pounds   24,823 23,824 22,530 22,955 23,567 103
50-119 pounds   19,175 19,107 18,649 18,139 18,675 103
120-179 pounds   15,073 14,,473 14,083 14,562 14,750 101
180 pounds and over   13,473 12,925  12,883 12,760 12,780 100
Sows farrowed 3,730 3,876 3,766 3,595 3,551 3,586 101
Pig crop 34,431 36,340 36,024 34,838 35,067 35,947 103

Observations
US–Canada breeding herd has not significantly changed over the last year, and last two years. The total breeding herd is about 600,000 smaller than 2007; the decline from 2007 of financial losses and productivity increases.

The 2012 combined market hog inventory is two per cent higher than 2011 but still almost three million head smaller than in 2008. The increase in 2012 is truly a reflection of increased productivity from a steady breeding herd.

The combined pig crop for the quarter was up year over year three per cent (about 900,000). This is a big jump year over year and will mean more hogs in the last quarter of 2012.

Domino’s Pizza Stands up to Humane Society of United States
The shareholders of Domino’s Pizza strongly rejected a motion at their 2012 annual meeting that would require its suppliers to stop housing gestation sows in stalls. Only four per cent of the shareholders supported the motion. A massive rebuke to the Humane Society of the United States, says Mr Long; Domino’s spokesman Tim McIntyre says: “We rely on animal experts to determine the best way to raise an animal that is being used for food.”

The resounding defeat of the motion is a virtual slap in the face of the Humane Society of the United States, according to Mr Long. Their massive fund–raising efforts will continue as they push a thinly veiled attempt to create a vegan society. Every swine producer should not only thank Domino’s but eat their pizza. It is great to see an American company standing up to the righteous bullying tyranny of the Humane Society of the United States. There is hope. Mr Long added that several millenniums of human history of eating meat won't be stopped by a Washington lobby group.


Author: Jim Long, President & CEO, Genesus Genetics