World Hog news:

[Mustang Sally Farm]

Friday, September 30, 2011
Foot-and-Mouth Disease Prompts Korean Pork Imports
SOUTH KOREA - With domestic hog production reduced 28.6 per cent (January-to-July) because of foot-and-mouth disease losses, the South Korean government is stimulating pork imports with a duty-free Tariff Rate Quota.


To curb soaring consumer prices, the government is also subsidizing the difference in costs between air freight and ocean freight for chilled pork bellies, reported US Grains Council Director in Korea Byong Ryol Min.

The result is a 91.5 per cent increase in Korean pork imports this year, according to Korean customs data. Among major suppliers, the United States gained the largest share of the increase. US sales are up 141.5 per cent and the US share of Korea’s pork purchases increased from 27.7 to 35 per cent.

[Mustang Sally Farm]

Brazil – Livestock and Products Annual 2011
Pork production in Brazil is estimated to increase by two per cent in 2012, mostly supported by the demand from the domestic market, since exports are estimated to decline by one a per cent due the uncertainties over the Russian market, according to the USDA Foreign Agricultural Service.


Post forecasts beef and pork production to increase by two per cent in 2012 and pork production to increase by less than one per cent in 2012, respectively, supported mostly by the domestic market.

The outlook for the Brazilian economy in 2012 is for continued economic growth, but at a lower rate than previous years. Business in general is suffering with one of the highest interest rates in the world, valuation of the currency and rising inflation. However, domestic demand remains strong due to higher consumer purchasing power, mostly from the new Brazilian middle-class, which is supporting consumption for goods in general, including animal proteins.

Despite the uncertainties regarding the world economy, mostly due to the so-called rich world struggle with the debt crisis, Brazilian beef exporters are optimistic that world demand for beef will increase in 2012. On the other side, pork exporters are not optimistic about exports next year due to the uncertainties regarding the Russian market and are counting on firm domestic demand and stable feed costs to maintain their profitability.

Post revised production and export estimates for Brazilian beef and pork for 2011 to reflect new estimates made by trade sources. These estimates call for a drop in beef production and a small increase in pork production than those previously estimated. In general, domestic demand for both meats is supporting the industry this year, since exports for beef and pork are estimated to decline this year.

Post forecasts pig production to increase by only one per cent in 2012 supported mostly by the demand from the domestic market. Our forecast reflects current concerns of swine producers with the uncertainties regarding the Russian market. The price of live hogs already declined by an average 20 per cent in August 2011 and several producers are being forced out of business due to their higher concentration of slaughter destined to the Russian market.

Swine producers are also asking the government in the most important producing states to exempt their energy costs from the state sales tax as a mean to alleviate their current problems derived from the halt of exports to the Russian market and higher costs of inputs this year. Swine producers also have requested the government to extend their debts regarding their loans for production credit during 2010/2011.

Pork Production
Post forecasts pork production to increase by two per cent in 2012. The increase in production is mostly supported by domestic demand for pork, since there is a current pessimism among pork exporters that exports will continue to drop next year.

According to a recent release by the trade association, the sector is concerned about the negative impact of the current Russia delisting of Brazilian plants in the most important producing states of South’s Brazil.

According to the association, contrary to beef and poultry, the pork industry was mostly affected by the Russian delisting of Brazilian processors. Their expectations are that the Russians will drag on with the relisting of plants for an undetermined period of time. The pork council continues with a strong public campaign to increase consumption of pork in the domestic market and believes that the price of major pork cuts will be more competitive next year in relation to other types of meats.

Consumption
The Brazilian Association of Swine Producers (ABCS) entered into an agreement with the number one supermarket chain in Brazil to promote at the national level the largest marketing campaign ever conducted in Brazil to increase consumption of fresh pork. The new marketing campaign follows the success of the 2008 pilot campaign "Swine Meat: A New Look", which contributed to increase the consumption of fresh pork in Brazil as compared to a high concentration of consumption among processed products.

As of August 2011, retail pork prices are competitive with beef because of lower pork exports in July due to the Russian ban, which helps to foster pork consumption among the new Brazilian middle class.

Trade
Post forecasts pork exports to drop by one per cent in 2012. Our forecast is based on the recent increase of Brazilian plant delisted by the Russians and the difficulties the Brazilian government have to resolve the issue. In addition, there are some uncertainties also in other markets, such as Argentina, as producers from that country stopped access of the Brazilian product in the border, although this act did not prevent an increase in imports from Brazil in 2011. However, exporters in Brazil are concerned with an election year in Argentina in 2012 and expect constraints ahead.

Brazilian pork exports in 2011 are estimated to decline by six per cent due to the severity of the delisting of Brazilian pork slaughter plants by Russian officials.

[Mustang Sally Farm]

Monday, October 17, 2011
Finland to Start Exporting Pork to China
FINLAND - Finland aims to start exporting pork to China. The long-negotiated agreements about food safety are to be signed at the end of October, when Finland’s Minister of Agriculture and Forestry visits China.


Finland has not exported pork to China before. According to YLE, among Finnish meat producers, Atria and HKScan are considering exports to China.

Demand for meat in the prosperous Asian country is constantly growing, and the market there is seen as nearly boundless.

[Mustang Sally Farm]

Wednesday, October 19, 2011
Viet Nam Hog Markets
VIET NAM - This week's global hog market report focuses on Viet Nam and has been prepared by Ron Lane, Senior Consultant Genesus China and Genesus Viet Nam and Meggie Vo, Research Assistant.
 

During the time-frame from 1996 to 2006, Viet Nam’s pork production more than doubled (132 per cent). This illustrates rapid growth – not mainly with large scale farms, but through constant growth from small farms, specialised pig households and the large scale farms.

The larger scale commercial farms are concentrated around the two largest markets – Ho Chi Minh (HCM) City and Hanoi.

The results of recent Living Survey by the General Statistics Office (GSO), shows per capita income per month throughout the country in 2010 reached 1.387 million dong (VND; US$66.68), up 39.4 per cent over 2008. In particular, urban areas reached VND2.129 million ($102.36 US/month), up 32.7 per cent and rural areas reached VND1.07 million ($51.44 per month), up 40.4 per cent over 2008. With the improvement in income, especially from rural areas, the demand for meat consumption in this sector will also increase.

Situation in September 2011
Ministry of Industry and Trade reports for this year that the country will produce 2.26 to 2.38 million tonnes of pork. The total consumption of pork is estimated to be between 2.4 and 2.5 million tonnes. The shortfall will be covered by pork meat imports in the range from three to five per cent. This will not significantly affect domestic supply.

During the last week of September, the price for live pigs has dropped from VND2,000 to VND3,000 per kg (US$0.10 to $0.14/kg) as compared to the previous two weeks. Provinces around Hanoi have market pig prices ranging from VND57,000 to VND59,000 per kg ($2.74 to $2.84/kg) live weight. Recent reports from the Ministry of Agriculture and Rural Development (MOARD), have the live price range for pigs in the northern parts of Viet Nam ranging from VND48,000 to VND58,000 per kg ($2.31 to $2.79/kg) – down 10.9 per cent from last month, while in the southern area (Ho Chi Minh), the live pig prices are ranging from VND48,000 to VND55,000 per kg ($2.31 to $2.64/kg) – down 8.9 per cent from August. In September, and looking nationwide, the live price of pigs has dropped an average of 10 per cent as compared to August. Current prices have dropped from the peak of July 2011 by around 18 per cent

During the first two weeks of October, the price of market pigs should continue to decline with price ranging from VND55,000 to VND57,000 per kg ($2.64 to $2.74/kg) in the North; VND52,000 to VND54,000 per kg ($2.50 to $2.60/kg) in the Central region; VND50,000 to VND52,000 per kg ($2.40 to $2.50/kg) and VND47,000 to VND49,000 per kg ($2.26 to $2.36/kg).

Pig prices have been decreasing for several reasons:

Supply of pigs in the north is increasing again.
Cooler weather has vastly increased productivity and growth rates.
Presence and impact of major diseases such as PRRS and FMD has been reduced and thus higher survivability means more pigs coming to market.
When the price in Hanoi was high, more pigs and pork moved to the north from the south, but with an increase in northern supply, less meat moves and supply in the south increases.
Flooding in the western areas caused farmers to sell pigs at various weights. This increased the supply of pork and thus assisted in reducing prices.
Aquatic food sources are currently larger during the past few months (summer time) and thus this supply puts pressure on other meat prices and demand.
A lowering of market prices hastens the farmers to sell at lighter weights in order to capture higher returns. For example, farmers were recently selling pigs at 105-115 kg live weight/pig. Now, producers are selling at lighter weights at around 90 to 95 kg live weight/pig.
During the past few months, traders were collecting pigs from the northern areas and were exporting pigs to China via Mong Cai in Quang Ninh province (Mong Cai is a border city with Guangxi province in China). However, recently, the traders were having problems with the general procedures-customs, high temperatures, having pigs sit too long on the trucks and trying to handle larger volumes. As a result, many were experiencing losses.
Many pork producers (of all sizes and scale) have mentioned that because of the impact of the disease occurrence of late 2010 and early in 2011, this caused the national herd to be pulled back by 3.7 per cent and that sow numbers were shrunk by 8.6 per cent (currently, new outbreaks out FMD have been identified in a Northern and Central province). Plus, this reduction of sow numbers that was mainly caused by diseases, also leads to reduced piglet production and thus eventually, fewer market pigs. This leads to the next cause: the large increase in weaner pig prices. So as any farmer and looking at large price increases for replacement breeding stock and weaner pigs; large increases in the price of feed; rising cost of electricity, water, labor, vaccine costs and transportation and disease still a major concern, then you can see the reluctance in ‘jumping’ back into production.

All of the above causes that are mentioned, are also influenced by the shortage of capital and credit. Interest rates are too high (ranging from 16.5 per cent to 25 per cent per annum) and are not as major a burden for the larger pig farms but the small farmers dare not (or cannot) borrow from banks because the livestock sector investment is also considered too risky.

Both farmers and consumers, consider that traders and slaughterhouse owners are contributing to the price spread. Looking at the price differences between the farmer’s price per pig and the selling price of pork, are pork prices being inflated by the intermediate traders and slaughterhouses? For example, are they pushing prices because they buy from the farmers at around VND60,000 to VND62,000 per kg ($2.88 to $2.98/kg) live weight but the pork is charged upwards of VND100,000 to VND130,000 per kg ($4.81 to $6.25/kg)?

Even though, all of these factors are included, actually with the current meat prices, farmers can profit from VND12,000 to VND22,000 per kg ($0.58 to $1.06/kg).

As pig prices increase, then consumers have to pay more for special cuts. Data from Hanoi Department of Statistics has looked at year-over-year prices for pork. In July 2010, the price of pork was only VND45,000 to VND70,000 per kg ($2.16 to $3.37/kg), depending upon the cut of the meat. By December 2010, the price of pork in Hanoi was on the threshold of VND70,000 to VND90,000 per kg ($3.37 to $4.33/kg) and up by 25 to 50 per cent per kg. Another six months later and the price is pushed up to VND110,000 to VND130,000 per kg ($5.29 to $6.25/kg). Thus, within a year, the price of pork in the markets in Hanoi has increased about 100 per cent.

Meat prices in the domestic market especially in the Hanoi city market is growing rapidly and sharply in recent years, causing huge pressure on the consumer price index (CPI) in July and the CPI for the first nine months of 2011 (in August, the CPI had jumped by 23.02 per cent as compared to August 2010 with food prices surging by 27.87 per cent year-on-year). For example, retail price of hams in the Hanoi markets and in the first two weeks in July have increased 2.3 times higher (approximately 130 per cent) over the same period one year ago. Meanwhile, in Ho Chi Minh, retail meat prices have increased only 1.4 times (approximately 40 per cent). Ho Chi Minh, which is commonly known to have a higher retail price than Hanoi market, has seen a reverse in this trend in the last months of 2010 and is continuing throughout 2011. The difference between the price of pork between Hanoi as compared to Ho Chi Minh is more than VND20,000 per kg ($0.96/kg).

In particular, Ho Chi Minh proved far superior to Hanoi on the basis of specialised fresh food markets (19 compared with two in Hanoi). With these strengths, the sales stabilisation of Ho Chi Minh has a stronger effect than the sales in Hanoi. Ho Chi Minh has three major pork suppliers that dominate the market (Vissan, Saigon Coop, and Sagrifood). They have contributed significantly in curbing the rise of the pork prices. Meanwhile in Hanoi, the traditional retail channel (market roadside stands and small wet markets) still dominate. These channels have little control over prices and greater psychological impact. When the Hanoi market sees any market fluctuations, (the change in the price of gold, dollar exchange, rising gasoline, electricity, coal and other factors0), then with certainty, the retail meat prices will be increased even though the supply or demand does not significantly change. This will ensure the profitability of small businesses owners.

CP Viet Nam Livestock Corporation (CP) has set a target to double its breeding sow herd from the current 180,000 sows (at the end of 2011) to the new target of 350,000 sows by the end of 2015. This is an annual growth of 20 per cent. CP mentions that the country’s pig industry is at risk because of disease and that 80 per cent of the pigs are raised in backyard farms where biosecurity is very poor.

Genesus Global Market Report
Prices for week of 10 October 2011
Country Domestic price
(own currency) US$
(per pound liveweight)
USA (Iowa-Minnesota) 91.17¢
US$/lb carcass 67.46¢
Canada (Ontario) 1.73
C$/kg carcass 62.19¢
Mexico (DF) 20.90
MXP/kg liveweight 71.55¢
Brazil (south region) 2.53
BRR/kg liveweight 65.78¢
Russia 90
RUB/kg liveweight $1.30
China 18.53
RMB/kg liveweight $1.31
Spain 1.20
€/kg liveweight 75.04¢

[Mustang Sally Farm]

Record Global Pork Production Volume Forecast
Global pork production is forecast two per cent higher to a record 103.4 million tons in 2012, with most of the growth likely in China and South Korea as they recover from major disease challenges this year, according to the USDA Foreign Agricultural Service in its six-monthly Livestock and Poultry: World Markets and Trade report.
 

PORK AND SWINE: 2012 FORECAST OVERVIEW

China and Korea Drive Rebound in Global Pork Production
Global pork production is forecast two per cent higher to a record 103.4 million tons. Growth is mostly attributed to recovery in South Korea and China. Modest growth is also expected from major exporters, the United States, Russia and Brazil.


South Korea is forecast up 21 per cent to 1.0 million tons as their pork industry rebuilds following the devastating foot and mouth disease (FMD) outbreak that slashed their production by 25 per cent. Record high swine and pork prices have encouraged producers to quickly rebuild despite higher compound feed prices. Sow inventories have expanded rapidly and beginning sow stocks are expected to reach 98 per cent of pre-FMD levels. Producers are expected to continue to rebuild through 2012. However, it is unlikely that total inventories at the end of 2012 will reach pre-FMD levels due to new regulations increasing minimum barn space requirements and environmental regulations. Additionally, the recently implemented Free Trade Agreement with the EU is expected to increase relative competitiveness of EU pork, which in turn is expected to put downward pressure on Korean production.

China’s production is forecast to recover four per cent to 51.3 million tons following swine disease problems and poor producer returns. The rebound is being fuelled by sharply higher prices and recent government measures such as the productive sow subsidy, although swine inventories are not expected to fully recover in 2012. Expansion in small-scale operations, which still account for a majority of production, is being constrained by higher feed costs and swine disease threats. Meanwhile, large-scale operations report some difficulties in acquiring additional land necessary for expansion.

The United States is forecast up two per cent to 10.5 million tons. Producers are expected to continue to benefit from productivity gains, with the pig crop up two per cent while beginning sow stocks have increased only slightly. Greater available supplies compared to competing proteins are expected to bolster domestic consumption.

Russia is forecast up three per cent to 2.0 million tons, supported by positive producer gains and government support and investment. Producers have expanded their breeding herds in the face of lower feed prices, less import competition due to a sharp reduction in the import quota, and the prospect of higher pork prices. Production growth is expected to come from larger operations, as smaller producers find it difficult to compete with new, modernized farms.

Japan’s production is forecast up two per cent to 1.3 million tons as producers are expected to rebuild. Greater domestic supplies are expected to mitigate import demand.

The Canadian hog industry has reached a turning point after several years of decline. Pork production is forecast up one per cent to 1.8 million tons with modest increases in beginning sow inventories and the pig crop. Relatively high feed costs and uncertainties in both pork prices and foreign demand will likely temper growth.

Brazilian pork production is forecast up two per cent, to 3.3 million tons, as domestic demand strengthens in response to industry promotions. Consumption is also expanding among the growing Brazilian middle class, as pork prices are competitive with beef.

Global Trade Constrained by Import Restrictions
Imports are forecast down four per cent to 6.0 million tons, constrained by a sharply lower Russian TRQ and reduced South Korean import demand. Other major importers are forecast nearly unchanged or in the case of Mexico and China slightly higher.


Russia’s imports are forecast to drop 25 per cent to 700,000 tons, due mostly to a 30 per cent cut in the import quota in an attempt to promote domestic production. However, out-of-quota shipments are expected to continue to be significant. Lower imports combined with modest production growth are expected to result in a decline in consumption.

South Korea’s imports are expected to fall 20 per cent to 500,000 tons, yet will remain significantly higher than 2010 pre-FMD-impacted levels. The special zero duty TRQs to facilitate imports in 2011 are not expected to continue.

Mexico’s imports are forecast up three per cent to 650,000 tons as pork is expected to be more price competitive compared with other meats. Additionally, the expected reduction of Mexican retaliatory tariffs on hams and shoulders are expected to make US pork more competitive.

China’s imports are forecast two per cent higher to 560,000 tons as expanding domestic supplies are unable to meet rising demand.

Japan’s imports are expected to remain flat at 1.2 million tons as greater domestic supplies limit import growth.






US exports are forecast up three per cent to 2.3 million tons with larger shipments to China and Mexico expected to outweigh reduced demand from South Korea and Russia. Exports are increasingly important to the US pork industry, accounting for 22 per cent of production.

EU exports are forecast down five per cent to 1.9 million tons, largely on tighter supplies as well as weaker demand by some key importers. Lower shipments are expected to Russia due to lower import quotas, and South Korea where domestic supplies are recovering.

Brazil’s exports are forecast down two per cent to 570,000 tons as Russia continues to ban imports from three major pork-producing states. However, Brazil is expected to expand exports to Hong Kong, Argentina and other markets.

Canada is unchanged at 1.2 million tons as a relatively strong Canadian dollar and limited supplies are expected to constrain its competitive position.

[Mustang Sally Farm]

Tuesday, November 08, 2011
Call to Use Coconut-Based Baits for Feral Pigs
AUSTRALIA - Queensland researchers say coconuts should be used as baits to control feral pigs in the state's north.


According to ABC News, feral pigs are considered one of the biggest threats to native species and vegetation in rainforests from Cardwell to the Daintree.

Andrew Bengsen, from the Invasive Animals Research Centre at the University of Queensland, says pigs in the north have different tastes to their southern counterparts.

He says baits made on meat or grains are not working and coconuts and bananas should be used instead.

"It's just something that's familiar to them, so they know the smell and they associate the smell and they associate the smell with food, whereas the baits we were using, they were completely unfamiliar," he said.

"They looked foreign, they smelt different to probably most things that they were accustomed to eating.

"We've looked at using some corn mixed with coconut meal because pigs in the area often eat coconuts growing wild on the seashore and it's quite attractive to pigs.

"It's very smelly and we can make that inaccessible to a lot of other non-target species just by putting it underneath a plastic box."

The findings of the two-year study have been published in the international journal Wildlife Research.

[Mustang Sally Farm]

Friday, November 11, 2011
Pork and Chicken Lead Spike in Meat Prices
SOUTH KOREA - Prices of pork and beef imports were spiked in October from a year earlier, the customs agency said yesterday, amid worries that rising costs of imported meat could put upward pressure on inflation.


According to data provided by the Korea Customs Service, prices of pork jumped 20.2 per cent on-year, while those of beef surged 15.4 per cent. Their prices increased 1.6 per cent and 0.8 per cent from a month earlier, respectively, the data showed.

Chicken meat prices also jumped 22.2 per cent from last year and posted a 2.6 per cent gain from a month earlier, according to Korea JoongAng Daily. The price hikes of those meats could put upward pressure on inflation, which has recently showed signs of abating.

Korea’s consumer prices rose 3.9 per cent last month from a year earlier, slowing from the 4.3 per cent on-year gain in September.

[Mustang Sally Farm]

Friday, November 11, 2011
Steady Livestock Growth Over Past 10 Years
MEXICO - Primary-livestock activities have the highest average annual growth over the past 10 years, at a rate of 3.6 per cent annually, exceeding the growth of human population of the country. This was the message at the Eighth National Meeting of Livestock.


Livestock is one of the fastest growing primary activities during the last decade, which is reflected in a profitable and sustainable livestock production and ensuring an affordable food supply, said the Coordinator General of Livestock Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA), Everardo González Padilla.

"There is only one quarter in which the official data from the Bank of Mexico reflected that the Livestock Gross Domestic Product did not present an upward trend," he said.

Mr Padilla González said that out of 236 countries, Mexico ranked fourth and fifth place in the production of chickens and eggs, seventh for beef and eighth place for honey and milk.

"This sector's growth has allowed annual per capita availability of 55 kg of meat, 21 eggs, 97 gallons of milk and half a kilo of honey for more than 112 million people living in our country," he said.

In the event organised by the National Confederation of Livestock Organisations (CNOG), Mr Padilla Gonzalez said that this activity is strategic for the national economy and trade of livestock products in the world by maintaining an upward trend.

He added that by strengthening the livestock sector the Federal Government, through the SAGARPA, can drive livestock programmes directed towards investment in public goods, productivity, strategic projects of national or regional impact, healing and scientific, technological and training.

[Mustang Sally Farm]

Monday, November 14, 2011
October Pork Exports Drop in Volume, Rise in Value
BRAZIL - The volume of pork went down by a little over seven per cent in October, compared to the same month in 2010. However, the value of exports rose by a little over eight per cent in terms of US dollars.


The latest figures from ABIPECS reveal that Brazil exported 46,200 tons of pork in October, which was 7.07 per cent less than the same month last year. The average price per ton in US dollars - $2,927 - was 16.90 per cent higher than a year ago. The value of sales in October was a whopping US$135.2 million, indicating a rise of 8.64 per cent, compared to October 2010.

For the year-to-date, the total volume of pork exported was 436,448 tons, down 5.51 per cent compared to a year ago. The value of exports, however, rose by 5.88 per cent at US$1.200 billion. The average price of pig meat according to October figures is $2,750 per ton, up 12.05 per cent compared to a year ago.

[Mustang Sally Farm]

Friday, November 18, 2011
Authorities: Managers Aware of Pork Sold as Halaal
SOUTH AFRICA - Meat industry authorities and the SA National Halaal Authority (Sanha) are adamant that the management of meat supplier Orion Cold Storage was fully aware that pork products were labelled and sold as halaal, and that it profited from the alleged conduct.


According to IOL News, this was said in their replying papers in the interim interdict application in the Western Cape High Court to stop the alleged conduct by Orion.

It was lodged after a search and seizure operation at Orion’s Muizenberg premises last week.

Sanha, the Red Meat Industry Forum and SA Meat Industry Company have also denied claims by Orion that the relabelling debacle was a set-up, aimed at framing Orion and casting it in a bad light.

They say they intend to prove that Orion’s management was part of the alleged fraudulent activity.

According to court papers, the applicants alleged that Orion imported pork products from overseas and relabelled them as halaal.

They also claimed that Orion had removed the labels of expired broiler turkeys returned and passed them off as not expired.

In addition, it was alleged that non-food-grade milk powder for animal feed was relabelled as skim milk powder fit for human consumption.

The Muslim Judicial Council (MJC) and MJC Halaal Trust were supporting the application, a trustee of the halaal body, Achmat Sedick, confirmed in an affidavit.

The National Consumer Forum has also joined the proceedings.

Orion denied the allegations in opposing papers.

Orion managing director Patrick Gaertner said in an affidavit that three of the main sources behind the allegations could not be trusted.

One was an unrehabilitated insolvent trying to extort money from the company.

The other was his brother-in-law and a third – who provided the applicants with an affidavit – worked for a competitor.

Orion, formerly known as Airport Cold Storage, investigated the allegations that their products were being relabelled as halaal and reported it to the police.

"What was discovered shocked me deeply," Mr Gaertner said in his affidavit.

The applicants replied to the allegations on Wednesday. In an affidavit, Sanha’s theological director, Mohamed Saeed Navlakhi, said the applicants found no comfort in Gaertner’s "feigned shock and offence."

He described as "irrelevant" allegations that one of the informants had attempted to extort money from Orion.

"The applicants are in no way influenced or swayed by any disputes that there may be between (Orion) and Patrick Gaertner on the one hand, and (the informants) on the other hand."

Mr Navlakhi said the applicants had independently verified the information received from one of the other informants.

According to Mr Navlakhi, if Orion was serious about not being at fault, it would have contacted affected customers.

"However, rather than address the problem, (Orion) is seeking to shift all the blame to (the informants) and take no further action in recalling the products or contacting its customers to inform them of the fraud committed upon them."

Mr Navlakhi said the applicants intended to show that Orion’s management was not only aware of the relabelling of products, but had profited from such conduct. He said management also knew to whom the products were sold.

Mr Navlakhi also took issue with Orion’s claims that it imported products that had been certified halaal.

According to him, the halaal certification of imported products must be verified by a local authority.

The application was set to be heard on Friday.

[Mustang Sally Farm]

Friday, November 18, 2011
One Third of Pork Producers Shut Down Sow Stalls
AUSTRALIA - ABC reports that a year after the pork industry said it would voluntarily phase out sow stalls, around one third of the industry has made the move.


Andrew Spencer, from Australian Pork Limited, says it's been open with animal welfare groups about the progress.

"Whilst we don't agree on all aspects of pig production with those bodies, they do actually support what we're doing on sow stalls, and they understand that the industry wants to make this a success," he said.

"Livestock industries that take decisions such as the one the pig industry has taken around sow stalls should get the support of the community and they should get the support of government to be successful with that, otherwise it won't be happening in the future."

But Animals Australia, which filmed the horrific scenes of animals being slaughtered in Indonesian abattoirs earlier this year, says progress is too slow.

Executive director Glynis Oogjes says consumers shouldn't buy pork until it's sow-stall free.

"Sows are in stalls right as we speak, and particularly coming up to Christmas when people will have traditionally bought ham for Christmas," she said.

"Really that choice should be reconsidered in my view, because there is no labelling of pork to give people an indication of the background and whether or not the sows that produced that pork were actually kept in sow stalls."

APL's efforts are supported by the RSPCA. Melina Tensen is the society's scientific officer for farm animals.

"What we need is pork consumers to do is to continue to support Australian pig farmers by buying Australian pork because all this effort of the pig industry in Australia is not going to be of very much use if the general public buys imported pork that may be of a lower welfare standard," Ms Tensen said.

[Mustang Sally Farm]

Organic Diet for Organic Pigs and Poultry
A study conducted by the Faculty of Agricultural Sciences at Aarhus University shows that in future the feed for organic pigs and poultry will be 100 per cent organic and it will be quite a challenge to meet the demand for, particularly, protein-rich feeds.

You may think it strange that organic pork chops, eggs and poultry are not already produced from diets that are 100 per cent organic. The difficulty has been to get hold of sufficient organic feeds to satisfy the demand – particularly for a source rich in protein. This will hopefully now become a thing of the past with the help of research at Aarhus University.



Scientists at Aarhus University are collaborating with a large number of scientists from other European countries to find optimal solutions to feeding organic pigs and poultry a diet that is 100 per cent organic. [Photo Janne Hansen]
In a new research project, scientists from Aarhus University and from universities in Switzerland, Finland, Germany and the Netherlands, among others, will develop organic feeding strategies for the European pig and poultry market based solely on organic products. The 100 per cent organic feeding systems that the project will be developing aim to satisfy not only animal nutritional requirements at the different stages of growth and production, but also health, welfare and environmental aspects. The scientists will also be concentrating on locally produced feeds.

The plan is to map systematically and assess individual feeds and feeding systems for pigs and poultry. Scientists will look at the nutritional value of the ingredients of the selected feeds and how accessible they are on the market. They will evaluate different types of roughage and compound feeds and will also assess the value of foraging.

Protein, Roughage and Foraging
Traditional feeds such as cereal and grass are not the only feeds sources studied. Who says that the protein source must be soybean imported from the other side of the planet? Europe has its own potential for growing protein-rich products, and combinations of, for example, varieties of lupins, naked oats, mussel meal, insect grubs, wild pea and sainfoin may be sufficient to meet the protein requirements of organic pigs and poultry in Europe.

Pigs and poultry are not normally the largest consumers of roughage, but roughage has a certain beneficial effect on animal digestion. A large intake of fibre, for example, helps to maintain a healthy gut flora and good digestive function. The supplementation with roughage for pigs can encourage them to increase their foraging, which makes them more active and reduces possible aggressive behaviour.

A diet including plants is known to provide animals with extra minerals and vitamins but there are many gaps in our knowledge of the value of foraging for pigs and poultry. Both pigs and hens root around in the soil and in that way, they not only consume plant material but also insects, larvae and other protein-rich sources. The scientists will investigate how much protein the foraging can contribute in different biotopes, such as deciduous forests, coniferous forests, windbreaks and in different breeds of pigs and poultry.

The project is a collaboration with Research Institute of Organic Agriculture in Switzerland, Agrofood Research in Finland, Johann Heinrich von Thünen Institute and University of Applied Sciences Weihenstephan-Triesdorf in Germany, Wageningen UR and the Louis Bolk Institute in the Netherlands, Organic Research Centre and Food Animal Initiative in England, BOKU-University of Natural Resources and Life Sciences in Austria, Institut Technique de l’Agriculture Biologique in France, Swedish University of Agricultural Sciences in Sweden and the Lithuanian Institute of Agrarian Economics in Lithuania. The project has been funded by the Green Development and Demonstration programme of the Ministry of Food, Agriculture Fisheries.

November 2011

[Mustang Sally Farm]

Feed Intake During Early Pregnancy: Effects on Sow Body Weight and Litter Size
Increasing feed intake by 30 per cent during the first month of gestation improved sow bodyweight recovery and increased litter size but did not significantly affect farrowing rate in the subsequent parity, according to researchers based at Wageningen University. However, feeding 30 per cent more digestible amino acids during the same period did not improve sow recovery or reproductive performance in the subsequent parity.

In a paper published recently in Journal of Animal Science, Lia Hoving of the University of Wageningen in the Netherlands and co-authors there and at the Institute for Pig Genetics in Beuningen explain that their study evaluated the effect of feeding level and protein content in feed in first- and second-parity sows during the first month of gestation on sow bodyweight recovery, farrowing rate and litter size during the first month of gestation.

From days 3 to 32 after the first insemination, sows were fed either 2.5kg per day of a standard gestation diet (control, n=49), 3.25kg per day (+30 per cent) of a standard gestation diet ('plus feed', n=47), or 2.5kg per day of a gestation diet with 30 per cent greater ileal digestible amino acids ('plus protein', n=49).

Feed intake during the experimental period was 29 per cent greater for sows in the plus feed group compared with those in the control and plus protein groups (93kg versus 72kg; P<0.05).

Sows in the plus feed group gained 10kg more bodyweight during the experimental period compared with those in the control and plus protein groups (24.2 ± 1.2 versus 15.5 ± 1.2 and 16.9 ± 1.2kg, respectively; P<0.001). Backfat gain and loin muscle depth gain were not affected by treatment (P=0.56 and P=0.37, respectively).

Farrowing rate was smaller, although not significantly, for sows in the plus feed group compared with those in the control and plus protein groups (76.6 per cent versus. 89.8 and 89.8 per cent, respectively; P=0.16). Litter size, however, was larger for sows in the plus feed group (15.2 ± 0.5 total born) compared with those in the control and plus protein groups (13.2 ± 0.4 and 13.6 ± 0.4 total born, respectively; P=0.006).

Piglet birth weight was unaffected by treatment (P=0.65).

For both first- and second-parity sows, the plus feed treatment showed similar effects on bodyweight gain, farrowing rate and litter size.

In conclusion, increased feed intake (+30 per cent) during the first month of gestation improved sow bodyweight recovery and increased litter size but did not significantly affect farrowing rate in the subsequent parity. Feeding a 30 per cent greater level of ileal digestible amino acids during the same period did not improve sow recovery or reproductive performance in the subsequent parity.

Reference
Hoving L.L., N.M. Soede, C.M.C. van der Peet-Schwering, E.A.M. Graat, H. Feitsma and B. Kemp. 2011. An increased feed intake during early pregnancy improves sow body weight recovery and increases litter size in young sows. J. Anim. Sci., 89 (11): 3542-3550. doi: 10.2527/jas.2011-3954

[Mustang Sally Farm]

Friday, December 09, 2011
Russia's Pig Farmers Brace for Changes in Trade
RUSSIA - Russia's longest transition period to lower its import duties in compliance with WTO commitments will be for pork, but pig farmers don't feel protected.


TheMoscowTimes reports that imports could grow from this year's 23 per cent of the market as soon as Russia joins the World Trade Organisation, a move expected by the middle of next year, said Yury Kovalyov, chief executive of the National Pig Farmers' Union. This would stem chiefly from the government's agreement to reduce import duties for live pigs, he said.

While Russia won a transition period of eight years to reduce pork duties, a cut in live pig imports from the current 40 per cent to 10 per cent will take effect immediately, he said.

"This is an opportunity that could prompt construction of new farms abroad, say, in the neighbouring Baltic states," he said.

Foreign competitors are willing to operate at a profit rate of five per cent, which threatens renascent Russian farms that need a higher rate to repay loans they took in recent years to grow their business.

"We need to break free of the loans," Mr Kovalyov said. "We have started from scratch."

By 2005, pork production from corporate pig farming had fallen to just a quarter of its 1991 level, he said. Output then began rising, thanks to state support and protective import duties. Import duties on live pigs shot up to 40 per cent in 2009, following record foreign deliveries.

Corporate output has risen three-fold since 2006 to measure 1.2 million tons this year, Mr Kovalyov said.

Under WTO commitments, Russia will reduce the import duty to zero in 2019 from 15 per cent now for pork entering the country within a government quota. Outside the quota, the duty will slide to 65 per cent from the current 75 per cent.

As of 2020, the country will scrap pork quotas and introduce a flat duty of no more than 25 per cent.

The government will maintain the right to set quotas for poultry and beef. Import duties will remain at 25 per cent for in-quota poultry and 15 per cent for in-quota beef. Outside the quotas, the duty will go down for poultry, from 95 per cent to 80 per cent, and up for beef, from 50 per cent to 55 per cent.

In other changes that have been announced, Russia will open its market wider for sugar imports, Interfax reported. The sugar price at the New York Mercantile Exchange will have to fall to $0.09 a pound – half of the current $0.18 – to offset the lower-end duty of $140 a ton, thus allowing less expensive foreign sugar into the country.

The duty will gradually rise to $270 a ton if the price continues to fall and reaches $0.045 a pound in New York.

[Mustang Sally Farm]

Monday, December 12, 2011
Consumers Confident in Swedish Pork
SWEDEN - Confidence in the nation's pig producers is growing, according to the Federation of Swedish Farmers.


The group says that 85 per cent of Swedes prefer to buy Swedish pork, an increase of six per cent from this time last year. When it comes to welfare rules and regulations 88 per cent of the public are confident that Swedish producers are performing well.

"It is encouraging that consumers have so much confidence in Swedish pork. This is proof that our members work had to constantly improve animal welfare"," said LRF Chairman Helena Jonsson.

15 per cent of Swedish consumers say that origin of meat does not matter.

Two years ago, Swedish pig farmers received a lot of negative media attention. To paint a fair picture, the industry took media around Swedish pig units.

"Our members have always done a good job. That the industry has implemented additional measures will only further strengthen consumer confidence in Swedish pig production," says Helena Jonsson.

The survey also showed that consumers have relatively good knowledge of pig farming legislation. 54 per cent know that Sweden has a law prohibiting tail docking, and 70 per cent know that pigs should have access to litter.

However, only about one in three people knew that pigs should have a separate place to sleep and a separate manure place.

Two out of three Swedes, 67 per cent, believe that Swedish pigs have better conditions compared to other EU countrieswith regards to living space, but only every half knew that the Swedish situation is better in terms with regards to weaning (the piglet is weaned at an older age).

The present investigation was carried out by Sifo on behalf of the LRF.