World Hog news:

[Mustang Sally Farm]

Wednesday, January 25, 2012
Concerns Raised over Pork Products Labelled Halal
SOUTH AFRICA - Concerns have been mounting in South Africa that pork has been labelled as being halal.


The Muslim Judicial Council has attacked the relabelling as "scandalous, malicious and criminal" and has said the siutuation has "impacted upon the integrity of the general status of Halal meat and is thus a matter for the South African Justice system".

It has completely denied that it was in anyway complicit in the relabelling.

In a statement last month following revelations that the pork products had been labelled halal at a cold storage plant in South Africa, the MJC said: "Further to this we take strong exception to those individuals and organisations, who seized upon the opportunity to bolster their image by discrediting the integrity and reputation of the Muslim Judicial Council Halaal Trust (MJCHT) without any justification whatsoever."

Just before the scandal broke, the Muslim Judicial Council Halaal Trust (MJCHT) cleared a consignment of chicken from Orion Cold Storage in South Africa.

The council added in its statement: "The Muslim Judicial Council (SA), however, reassures the community that the despicable crime committed at the Orion Cold Storage has not in any way affected the sealed Halal chicken containers cleared by the MJCHT. The only involvement of the MJCHT with the Orion Cold Storage is on a Consignment Basis. Therefore, the unfounded accusations and insinuations expressed that sought to implicate and discredit the integrity of the MJCHT is malicious, deceitful and opportunistic.

"In principle, as Ulema (Religious Scholars) we take our guidance from the Holy Quran and the Sunnah, (The Prophetic Divine teachings) and thus place the highest value on first ascertaining the truth, prior to levelling accusations that intend destroying the reputation of others and those who have served this community ever-since the birth of Islam in South Africa.

"The certification of Halal is not merely a judicial procedure but rather a sacred Amanah (Trust) and the responsibility of the MJCHT for which we are accountable to Almighty Allah (God) in fulfilling this duty.

"Those who have spread the seeds of doubt and created suspicion, division and dissention in the community, contradict the basic principles of Islam which guides us toward harmonious interaction and good, honest and truthful relations amongst humanity.

"The MJCHT consistently exerts itself in serving our community by exploring all possible avenues to ensure that imported food complies with strict Halaal standards. The community has thus benefited from the Halaal services rendered by the MJCHT that provides our Muslim community with contentment in the knowledge that their food complies with the highest Halaal standards.

"Since imported unregulated Halaal foods started flowing into South Africa, the MJCHT pioneered Halal Regulation for imported Halaal meat and poultry in order to ensure that all imported foods that are approved as Halaal are indeed Halaal. We have thus engaged with accredited International Halaal Authorities and established formal relations with these International Authorities.

In conclusion we reassure our beloved community that all imported meat and chicken cleared by the MJCHT, are indeed Halaal."

[Mustang Sally Farm]

Wednesday, February 01, 2012
Belize Under Classical Swine Fever Threat
BELIZE - Agriculture officials say they are implementing emergency measures aimed at preventing the introduction and spread of the deadly classical swine fever, following an outbreak of the virus in neighbouring Guatemala.


The Belize Agricultural Health Authority and the Ministry of Agriculture and Fisheries said classical swine fever affects pigs and “has affected almost the entire country of Guatemala, which has led to the disposal of over 7,000 pigs, reports TheBelizean

This disease however, only affects pigs and Belize is considered free of this disease. BAHA in collaboration with the Ministry of Agriculture is presently implementing emergency measures to prevent its introduction and spread.

The BAHA alert says that these measures include: public awareness, movement control, 24 hours inspection at the Western Border with Melchor De Mncos in Guatemala, active surveillance in high risk areas, improved bio-security at farms, prohibition of the importation of live pigs and pork products from Guatemala and the cleaning and disinfection of trucks used for transporting livestock to Guatemala.

The public has been advised not to feed table scraps containing meat to pigs. Pig farmers have been asked not to feed meat and other waste from slaughtering plants to their pigs and not to allow dirty trucks into their farms.

The authorities has asked the public to notify any BAHA or Ministry of Agriculture and Fisheries office of any unusual health problems in pigs.

[Mustang Sally Farm]

Thursday, February 02, 2012
Botswana Halts Imports of Pig Products from SA
BOTSWANA - The government has halted the importation of pigs and their products as well as pig feeds from South Africa as the Mpumalanga Province in that country has been hit with African swine fever that infects pigs.


The South African Veterinary Authorities reported the outbreak of the disease on 13 January, this year also alerting other countries.

Dr Kefentse Motshegwa, a Deputy Director at the Department of Veterinary Services explained that African Swine Fever (ASF) is a highly contagious and fatal viral disease of pigs that is transmitted from infected animals to others and by fresh pig products. Wild pigs including warthogs carry the virus and it is easily transmitted to domestic transmitted to domestic pigs from the wild by soft ticks.

Dr Motshegwa told Gazette Business that there could be confusion about swine flu and the African swine fever but the two diseases are not the same and are not related. “While Swine flu is caused by an influenza type virus, ASF is caused by African swine fever virus popularly known as genus Asfivirus,” stated Dr Motshegwa emphasising that the ASF should not cause panic in humans’ health as unlike swine flu, it does not infect a human body.

The public is advised to be on the look out for any signs of the ASF in their domestic pigs which include fever, vomiting, diarrhea, eye discharges and abortions and excessive fluid in body cavities. Pigs are the only domestic animals affected by the disease.

According to Dr Motshegwa, there have never been any recorded cases of ASF locally even though the disease exists regionally. Further laboratory investigation information is expected by the local Veterinary Department from the South African Veterinary Authorities.

[Mustang Sally Farm]

Friday, February 03, 2012
December 2011 Pork Export Volume, Value Up
BRAZIL - The volume of pork exported in December rose slightly compared to a year earlier, and the US$-value was up more by almost 13 per cent.


According to the latest figures from ABIPECS, Brazil exported 36,931 tons of pork in December 2011, up 3.95 per cent compared to the previous year. The value of export sales in December 2011 was US$103.7 million, almost 13 per cent more than in December 2010.

For the year-to-date, the total volume of pork exported was 516,418 tons, down 4.4 per cent compared to a year ago. However, the value of those exports was 7 per cent higher at US$1.434 billion. The average price of pig meat over the year to date was $2,778 per ton, up almost 12 per cent from a year ago.

[Mustang Sally Farm]

Monday, February 06, 2012
Qatar Cooking Up a Storm Over Pork Sales
QATAR - The decision by Doha’s only off-licence to start selling pork products in December has resulted in online controversy, with expatriates and locals split on the surprise move by the retailer.


Accessible only to non-Muslims with an alcohol licence, the QDC store in Doha began selling packets of sausages and bacon from QR28 ($7.6) in the run up to Christmas. According to ArabianBusiness.com, the move was welcomed by many pork-loving expatriate workers, with stocks reportedly selling out in a matter of hours.

"It’s very good news," one resident told the Qatar Living website, while another hoped this would be the start of a wider roll out of pork products to other outlets across the city.

"Good move! But still hope that Qatar someday will follow the same as in DUBAI & OMAN where there are NON-MUSLIM section in SPINNEYS & AL-FAIR respectively in which pork products are available," another reader commented.

While there were reports QDC may increase its supplies in the wake of the popularity of the produce, or even open a second store, some observers have said the ban on pork products should be reinstated.

"They should not sell it. It only appeals to some expatriates in Qatar, albeit a tiny percentage of them, and like any country in the world it is reasonable enough to expect some degree of respect for the local laws and norms. Qatar is a pretty liberal place any ways, and the people who do eat pork, will not be giving up too much in other ways by not eating it," one commentator said.

The move has been condemned by others who see it as a step too far and an insult to the local Muslim population. "What’s next? legalization of abortion in Qatar?" said one outraged reader, while another online opponent of the move has set up a ‘Stop Pork in Qatar’ online group.

The only other venue pork is available to buy in Qatar is the American Military Base, but this is only available to American military personnel.

The backlash against the sale of pork comes as it was revealed restaurants and bars on Qatar’s flagship Pearl development have seen revenues slump by more than 50 percent in the wake of a new ruling banning the sale of alcohol to customers.

Outlets on the manmade island off the coast of Doha were told on 12 December they could no longer serve drinks to guests in what is seen as a display of tension between Qatar’s Muslim culture and its largely expatriate population.

[Mustang Sally Farm]

Tuesday, February 07, 2012
Pig Dung Used for New Fish Feed Made of Flies
JAPAN - A new fish feed made using housefly pupae is cheaper than other feeds and boosts fish's immunity to disease, says one of the researchers who created it.


The mainichi reports that the feed was created by a team at the South Ehime Fisheries Research Center of Ehime University, and researchers hope to have it on the market in two to three years.

A drop in stocks of fish used to make fish meal and expanding fish farming in countries like China and Viet Nam has pushed the price of fish meal to 200 yen per kilogram or around twice what it was five years ago.

The researchers cut back the fish content of the feed by 25 per cent, replacing a fourth of that with ground fly pupae. The rest was replaced with other ingredients. When the feed was given to sea bream, they showed improved colouring and resistance to disease.

The fly pupae are raised in pig dung by a company in Miyazaki Prefecture, after which they are ground up and pasteurised.

Professor Takeshi Miura, who worked on the research, estimates that at 74.5 yen, the new feed is 5.5 yen per kilogram cheaper than current feeds. "Aquaculture is increasing around the world, but in Japan it is declining, and some businesses have been forced to close. I hope that with efficiently grown feed, we can improve the situation," he told The mainichi.

[Mustang Sally Farm]

Tuesday, February 07, 2012
Italian Pork Prospects Poor; Irish Forecasts Positive
GLOBAL - About 10 per cent of Danish pig production is located outside Denmark. As a result, farmers and investors have managed to establish large production installations which annually deliver about 2.5 million pigs for slaughter.
 

According to BPEX's latest Export Bulletin, Danish Crown is considering the introduction of a new soybean policy. The soybean debate has resulted in discussions on how to ensure a sustainable soybean supply to Danish animals. According to Danish Crown, the discovery of a common solution to increase the market for certified sustainable soybeans is of utmost importance.

Meanwhile, in France, the objective in terms of pig prices for 2012 set up by the regional pig committee and recommended to the industry is at €14/kg. Due to the current situation in exports, fluidity of prices is still prevalent. However, the French market is very calm.

The German market for pig meat appears to be subdued. Trade for sow meat is also described to be sluggish. Tönnies intends to drive animal welfare despite estimated costs of €20 per pig. Also, in spite of not being able to purchase Tummel, Tönnies aims to remain acquisitive.

In Netherlands, co-operative Family Farmers owes huge sums of money to feed companies and producers. The companies debts have risen to as much as €4.5 million.

The Spanish company Carnicas Celra plans on increasing pork-cutting capacity from the current 50,000 tonnes to 120,000 tonnes in the hopes of creating about 200 new jobs.

Prospects in Italy appear poor. The economic crisis in the country has affected consumption to a large extent.

Ireland, on the other hand, seems optimistic. Low supplies and strong exports are expected to support pig meat prices.

Pork production in the Czech Republic is still falling. While in 2003 the country was producing 411,000 tonnes of pork annually, last year, this dropped by almost half. Along with pork production, beef and poultry production are falling as well.

[Mustang Sally Farm]

Monday, February 13, 2012
Rise in January 2012 Pork Export Volume, Value
BRAZIL - The volume of pork exported in January rose compared to a year earlier, and the US$-value was up by 4 per cent.


According to the latest figures from ABIPECS, Brazil exported 37,756 tons of pork in January, up 8.47 per cent compared to the previous year.

The value of export sales in January was US $96.8 million, up 4.08 per cent compared to January 2011.

[Mustang Sally Farm]

BPEX Export Bulletin - Week 7
The 15-strong joint BPEX-EBLEX mission to South Africa attended by the four largest UK processors and pork traders active in the region was a huge success.



Meeting with 11 importers took place in Cape Town and Johannesburg whilst we held talks with the major retailers Shoprite, Pick & Pay, Massmart and Woolworths, who aim to import more products. The Rt Hon William Hague MP, Foreign Office Minister addressed our reception in Cape Town which was attended by 70 people. He commended our “Great livestock industry”, our exports successes and the reopening of markets closed to British meat. A market report is available from the export office. This major mission coordinated in South Africa by UK Trade & Investment will evidently kick-start our export of pork and porcine exports in South Africa, the largest importer of meat on the African continent.

Denmark
Market
The demand on the market was fairly stable throughout January and into February. It has not changed, but by the end of January there was a decline in supply from the slaughterhouses, in particular in Germany, and it has pushed up prices again. The impact was higher prices of legs and front parts, but now prices have become stable again. Trimmings are sold at increasing prices as well. Collars and tenderloin are still out of season, and trade with these products is calm. Backs are still low in Europe and the same applies to exports of bacon to the UK. On third country markets there are stable exports to Russia. Here the joker is the building up of a Russian own production together with a lower import duty on live pigs due to the WTO agreement, and on the other hand occurrences of African swine fever, which apparently is not under control, and where the outbreaks are close to areas with intensive pig production. Exports to China are getting started after the Chinese New Year, and the Danish exporters have entered a number of new contracts. It is expected that prices are going to increase quietly during the next months. Exports to Japan are stable with fine prices, but with respect to tonnage it is below the expected.
(Sources, Danish Crown, Tican, Danish Agriculture and Food Council)

Danish pig farms had profits in 2011
The first accounts that have been finalized indicate that in 2011 the pig farms had a little surplus. The first 61 accounts for all types of pig farms from LandboNord, LandboSyd and LROE show an average operating result of € 10,000. Compared to 2010 it is an improvement of € 35,000. The pig farms achieved a progress in the operating result of approximately € 19,000 after modest increases of capacity costs. Interest expenses have increased slightly more due to a little higher debt and higher interest on debts to banks. A forecast for 2012 has been prepared in which the gross margin is expected to improve by € 65,000.
(Source, Landbrugsavisen)

Increasing demand for organic pigs
It is possible to sell 100,000 more organic pigs than today estimates Danish Crown. The only problem is that there are not sufficient pigs to sell, and prospects are that the production of organic pigs won’t increase. It is almost impossible for Danish farmers to change to organic and outdoor production. During times of crisis banks have closed for lending out money, in spite of the fact that welfare pigs have a better price and bring greater profit. Danish Crown informs that they can increase exports of outdoor bred pigs to Australia, where last year almost half of the meat from outdoor bred pigs got exported to. The high demand means that the meat is sold at a high price. Danish Crown also estimates that they will be able to increase exports of organic pigs without any problems. Exports are primarily to France.
(Source, Politiken)

Danish slaughterhouses - payments week commencing 13 February 2012
Slaughterhouse Danish Crown Tican
Slaughter pigs (70.0-86.9kg)
Difference to last week Euro 1.374
+0.027 Euro 1.374
+0.027
Sows (above 129.9kg)
Difference to last week Euro 0,960
Unchanged Euro 0,960
Unchanged
Boars (above 109.9kg)
Difference to last week Euro 0.827
Unchanged Euro 0.827
Unchanged

France
Top margins for the retailers
The structure of 1kg cooked ham retail price sold at €10.50 average (over 3 years: 2008 – 2009 – 2010) evolves as follows
€3.26 at producer level or 31% of total retail price
€3.82 at abattoir de-boning level or 3% of total retail price
€5.28 at charcuterie processor level or 13.8% of total retail price
€10.50 at retail level, VAT (5.5%) included or 44.7% for retailer

The price of loin sold in fresh cuts in supermarkets amounts to €6.20 /kg cwe

The price is structured as follows:

€2.10 for the producer
€1.40 gross margin for abattoir/cutting plant
€2.40 gross margin for retailer
+ 0.5.5% VAT.

Pork
According to the “Marché du Porc Breton”, offer declines in France and in all Europe. But, at the same time, demand is good, in particular for Exports. In this context, prices adjustments are awaited for the second part of the week.

Cuts
It is always Export which is good for French market. Sales to the European Union as for third countries remain regular and concern almost all cuts. This helps our French market. This compensates the return of a less dynamic national demand. Prices are still higher for most cuts.

Pork prices RUNGIS week commencing 13 February 2012
Cut name Price range (Euro/kg)
Back fat, rind-on 0.75
Trimmings 1.47
Leg 2.07
Loin including chump 3.00
Loin excluding chump 2.51
Belly extra without trimmings 2.58

Germany
Market
Demand on the wholesale market is still rather quiet. Wholesalers and deboners tend to order smaller quantities due to margins remaining unsatisfying. While due to less availability chops, loins and collars could be sold at slightly increased prices hams, shoulders and bellies were sold in good quantities but at unchanged prices. Sales of sow meat are satisfying.
(Source, AMI)

Slight decrease in meat consumption
In 2011 German consumers bought less meat and meat products than in 2010. According to GfK data 2.2% less meat was purchased. Due to increased costs for raw materials these smaller amounts consumed were sold at higher prices, according to AMI. Prices for fresh pig meat and beef increased by 9.4% and 4.4% respectively. Prices for meat products and cooked meats rose by about 2%.
(Source, ISN)

The world’s largest pig meat exporter
In 2011, Germany once again was the world’s largest exporter of fresh and frozen pig meat. According to "agrarisch dagblad" 1.41 million t of pig meat were exported between January and December 2011 which is an increase by 8% compared with the previous year. The US score second with exports having increased by 23% to 1.24 million t. The majority of German pig meat was exported to other EU member states with Italy being the main importing country accounting for 279.602 t followed by Poland with 173.695 t. Exports to Russia remained stable at 110.385 t.
(Source, topagrar)

Increased volume
Last year the German meat industry produced more meat than ever before. Compared with 2010 figures the production volume increased by 119.000 t (+1.5%), according to the National Statistics Office. Production of pig meat summed up to 5.6 million t and exceeded the previous year’s result by 2%. Pig meat accounted for 2/3 of the overall meat production. Poultry production increased by 3.1% to 43.200 t, beef production decreased by 2.7% to 32.100 t.
(Source, Lebensmittel Praxis)

Unfair competition
According to Joris Coenen, marketing manager for the Belgian Meat office, the German meat industry’s success is mainly due to dumping wages abattoir workers are being paid in the country. Following the publication of the numbers of industrial slaughterings in Germany, Coenen stated that "Labour is a significant cost factor not only at slaughter but as well at de-boning". Production costs in Germany are 10 Eurocent below Belgian production costs which results in a substantial competitive advantage.
(Source, topagrar)

Pork Prices Hamburg Market week commencing 13 February 2012
Cut Name Price range (€/kg)
Round cut leg 2.10/2.30
Leg (boneless, rindless max fat level 3mm) 2.95/3.20
Boneless Shoulder 2.40/2.55
Picnic Shoulder 2.00/2.20
Collar 2.30/2.55
Belly (bone in, ex-breast) 2.20/2.40
Sheet Boned Belly (rindless) 1.90/2.25
Jowl 1.40/1.55
Half Pig Carcasses U class. 2.02/2.12

Spain
Pork prices in Barcelona Market Week commencing 13 February 2012
Cut Name Price range (€/kg)
Carcasses (secondary grade) 1,579/1,585
Gerona Loin Chops 2,38/2,41
Loin Eye Muscle 3,31/3,34
Spare Ribs 2,83/2,86
Fillets 5,38/5,41
Round Cut Legs 2,31/2,34
Cooked Ham 1,87/1,90
Rindless Picnic Shoulder 1,57/1,60
Belly 1,96/1,99
Smoked Belly with Spare Rib Section Cut off 2,39/2,42
Shoulder chap or Head Jowls 1,08/1,11
Back Fat, rindless 1,08/1,11

Italy
Cheaper cuts sought
survey by Coldiretti, the Farmers’ Union, shows that 43% of Italians are looking for cheaper meat cuts, offal and new recipes in response to the economic crisis. Still, 50% of Italians have not changed their shopping behaviour.
(Source, Coldiretti)

Russia
Special slaughter houses to be built in Kuban
The Governor of Kuban, Aleksander Tkachov, sacked deputy-governors responsible for agriculture in the area (in several regions) because they didn’t show necessary professional skills in fighting ASF. He has also passed several regulations that will help stop the disease. First, the fines for violation of veterinary legislation will be increased. Second, the number of veterinary inspectors in Kuban will increase to 300 persons. Finally, there will be special slaughterhouses built to slaughter sick animals or those exposed to the disease.
(Source, Meatinfo.ru)

New outbreak of ASF in Briansk Oblast
A new outbreak of ASF was registered in the Klintsovskiy region of Briansk Oblast. On hunting lands in the region, forest rangers found several dead boars. Lab tests showed that the reason for their deaths was ASF. Soon afterward, 2 pigs died of ASF in a private household near the place where the dead animals were found. All animals in the household were slaughtered.
(Source, Rosselkhoznadzor in Briansk and Smolensk oblasts)

Imported Pork Moscow Market (Feb 10): Imported Pork St.Petersburg Market (Feb 10):
Shoulder (no bone): USD 6.0/kg Leg (no bone): USD 5.9 /kg
Leg (no bone): USD 6.2 /kg Leg (with bone): USD 4.5 /kg
Liver: USD 2.23/kg
(Source, Meatinfo.ru) Liver: USD 2.0/kg
(Source, Meatinfo.ru)

In Moscow Oblast production of pork grew 3 times during the last 5 years
According to information provided by the Ministry of Agriculture of Russia, the production of pork grew 3 times over the last 5 years – from 13,800 t in 2005 to 46,100 t in 2011. Starting from 2006 there were 10 investment projects implemented on the territory of the oblast which made the growth possible.
(Source, RIA Novosti)

Ukraine
Pork prices as of Feb 13, 2012
According to the information provided by the Ministry of Agrarian Policy and Food of Ukraine, as of Feb 13, 2012, the average purchase price for pigs of the first and the second categories was USD 2,173/t. The price increased slightly during the last month (since Jan 13, 2012), and increased 25% during the last year. The average retail price for pork as of Feb 13 was USD 5.45/kg.
(Source, PigUa.info)

China
Chinese imports in 2011
With production down 3%, direct imports of pork rose from 199,000 tonnes to 467,000 tonnes in 2011. The USA represented more than half, ahead of Denmark, Canada, Spain, France and Germany. Direct imports of pig offal rose from 702,000 t to 882,000 t with the same ranking.

South Africa
Market support
The country boasts its low level of support to farmers. Only 1.2% is dedicated to pork production ahead of sheep meat with 13.4% of revenue but behind beef with 0.8%. This support does not account extension services, export marketing and other indirect support measures.

Pork market
Pork ribs are hugely popular and ubiquitous in South African restaurants. Pig offal is also in demand. However, pork at retail has difficulty to find its place. It is squeezed between chicken and beef and still strong lamb prices despite high prices. Bacon and processed products are very popular, particularly cheaper varieties. Sliced processed meats from Italy and increasingly Germany are more present in stores.

South African retailers lead the charge in Africa
South African retailers are expanding aggressively all over Sub-Saharan Africa and are due to benefit from rising consumption there. For instance, Pick & Pay now controls 79 supermarkets in Zimbabwe as well as stores in Mauritius, Zambia and other African countries under its TM brand. Massmart (Walmart) bought the African operation of Metcash and now has stores in 12 countries outside RSA including Ghana. Shoprite is now the largest retailer in Africa with particularly large operations in Angola and neighbouring countries.

Food labelling still unclear
Food labelling remains a difficult area with the new GMO labelling legislation postponed and country of origin labelling for meat yet to be implemented.

USA
Gestation stalls
McDonald’s announced that it will ask its US pork suppliers to present their plans for the termination of the use of sow gestation stalls as the company believes gestation stalls not to be a sustainable production system for the future. According to Dan Gorsky, senior vice president of McDonald’s North America Supply Chain Management there are alternatives that McDonald’s considers to be much more favourable for the welfare of sows.
(Source, Various)

Switzerland
More meat sold
The Swiss Bell group has continued on its growth track in 2011. The adjusted revenue increased to 2.52 bn CHF which represents an increase of 1.8%. For 2012 Bell expects moderate growth on both the Swiss as well as the European markets.
(Source, Lebensmittel Praxis)

[Mustang Sally Farm]

Overview of This Week's Pig Industry News
ANALYSIS - The latest statistics reveal that the EU pig population is on a downward trend, writes Jackie Linden. Although not yet complete, the trend points to a reduction of two per cent in total pigs, with the number of sows down three per cent and four per cent fewer pregnant gilts. Pork exports from the US were 25 per cent higher in 2011 than 2010, with Asian markets the key drivers of trade. There has been a new outbreak of foot and mouth disease in pigs in Taiwan.

According to a report from the UK's Agricultural and Horticultural Development Board (ADHB), the overall pig population in the EU looks to have fallen two per cent between 2010 and 2011.

Most EU Member States have now published provisional results of their pig censuses, taken between November 2011 and January 2012. The results cover 92 per cent of the total EU pig herd. The fall in the breeding herd was sharper, with the number of sows down by three per cent. The number of in-pig gilts was down by four per cent, suggesting that further falls can be expected during 2012.

Over the last year, there have been two main drivers behind the decline in the pig population: rising feed costs and the increase in pig welfare, particularly the sow stalls ban from January 2013. Increased sow productivity, however, has partly offset these downward pressures.

The same report highlights once again the dramatic increase in US pork exports – up 25 per cent from 2010. For fresh and frozen pork, increased shipments to Asian markets were the key driver of the growth in export volumes, particularly to Japan.

Imports of fresh and frozen pork to Japan picked up in the last quarter of 2011 and for the calendar year, and increased five per cent on 2010 levels, according to the AHDB report. The Japanese domestic pig market suffered in 2011 on the back of the earthquake and tsunami and the subsequent nuclear crisis, reducing domestic production and raising food safety concerns.

The US was the dominant supplier of pork imports, accounting for 41 per cent, a slight increase from 2010.

Looking forward, it is anticipated that the weak Japanese economy and domestic situation will continue to affect the pork market in 2012. Although pork production is forecast to show a small recovery and, with consumption projected to hold steady, no significant further growth in imports is likely.

Continuing on trade issues, Canada's Agriculture Minister says ending the restrictions imposed by US mandatory Country of Origin Labelling would benefit livestock producers on both sides of the Canada-US border.

In what has been described as a ‘ground–breaking commitment to animal welfare’, Bon Appétit Management Company, which operates more than 400 cafés for corporations, universities, museums and specialty venues in 31 US states, has announced the roll–out of the food service industry’s most comprehensive farm animal welfare policy to date. Among its new standards is a requirement for all pork it serves – currently three million pounds annually – be produced without gestation crate confinement systems.

And finally turing to news on foot and mouth disease, Taiwan has reported a new outbreak Kinmen, which has resulted in the slaughter of 98 pigs. There has also been an outbreak in cattle in the Ningxia region of China.


Jackie Linden, Senior Editor

[Mustang Sally Farm]

Friday, March 02, 2012
Major Losses for Poultry and Hog Sectors
DOMINICAN REPUBLIC - Farmers lost at least 4,000 million pesos in 2011, which caused the collapse and disappearance of poultry and hog industries.


Agricultural businessman Victor Caceres Abreu attributed the fact to the lack of planning and sponsoring by import officials, reports Diario Panorama.

However, he said that fortunately, from this year, the prices of chickens, eggs and pigs have shown improvement.

"Fortunately, the national agricultural production, especially the poultry and swine sub-sectors have entered a process of recovery and improvement from this year," he said.

He said producers are selling these products at very attractive prices, "We leave some profit margin, contrary to what happened last year, prompting the massive bankruptcy of traditional producers."

[Mustang Sally Farm]

Monday, March 05, 2012
Overview of This Week's Pig Industry News
ANALYSIS – We might be seeing the first signs of improvements in the pork sector, according to a new report. Pig and meat companies in several countries are beginning to invest again, and pig prices are reported to be on the rise too, which will help especially in those countries where welfare standards are being imposed. African swine fever has been reported in the region of Russia that borders Finland.

Following a long period of volatile commodity prices, financial restraints, tight money markets in the banking sector and a consumer reluctance to spend, the green shoots of recovery for the meat processing sector could be gradually emerging

A recent Fitch Ratings' quarterly update on the US protein industry did not paint a particularly rosy picture and showed pressure was still on the processors. It showed a significant magnitude of margin contraction in beef and pork processing.

According to the report, meat processing margins are compressing because wholesale pricing is not always keeping pace with changes in livestock costs. However, what may be more telling about the potential recovery of the sector is the willingness for US companies to invest, particularly in the beverage and beef sectors.

Similar investment has been seen in companies around the world, notably, and perhaps not surprisingly, in the BRIC countries of Brazil, Russia, India and China.

Russia’s Cherkizovo Group is making good progress at its three new pork complexes in the Tambov, Lipetsk and Voronezh regions of Central Russia.

In 2011, Russia’s Miratorg Agribusiness Holding consolidated its status as a leader in pork production as well as becoming the country’s biggest feed manufacturer.

In Europe, Finnish meat processor, Atria, is to centralise production of meat products in Sweden aimed at streamlining and automating the production process of ham products and the slicing of cold cuts.

These positive and optimistic trends can also be seen in the latest results from some of the leading meat and poultry processing companies, including US-based Tyson Foods, Sara Lee and Hormel Foods as well as JBS and Marfrig of Brazil, Maple Leaf Foods in Canada and Finnish meat processor, HKScan.

In the US, prices for 40–pound feeder pigs are at their highest ever, averaging $85 to $86 per head.

A sellers’ market may also be emerging in the UK. After four months of static or falling pig prices in the UK, sellers heaved a sigh of relief last week as two processing companies raised their prices.

In the Dominican Republic, however, the economic situation for farmers has been so bad that the pig industry has collapsed.

In Brussels last week, delegates to a conference have been examining the new EU animal welfare strategy, which has the aims of enhanced consumer empowerment and strengthening the enforcement of existing rules in an integrated approach to animal welfare.

At the meeting, farmers’ association, Copa-Cogeca, highlighted the need for farmers to be able to recover their additional costs from having high EU animal welfare standards and to make consumers aware of this.

The number of pigs slaughtered in Ireland in January were 13 per cent higher than the same month of last year.

While the overall pig population was almost unchanged on 1 January 2012 from a year previously, there are 11 per cent fewer young animals kept for breeding in Denmark than in January 2011.

Finally, turning to disease news, foot and mouth disease (FMD) has been found on a farm in the Primorye region in the far south-eastern corner of Russia.

A total of 100 pigs have been slaughtered so far in Mpumalanga of South Africa after an outbreak of African swine fever (ASF). In Russia, ASF has also been reported on a farm in the republic of Karelia, which is in the north-west of the country and borders Finland. Ukrainian authorities last week suspended pork imports from Belarus on fears of ASF.


Jackie Linden, Senior Editor

[Mustang Sally Farm]

Genesus: 2012 Promises Well for Brazilian Pork Plants
BRAZIL - Pork exports in 2011 at 516,419 tonnes were a shade below the total for 2010 of 540,417 tonnes, but total receipts increased by seven per cent to US$1,435 million.
 

However, exports in 2012 are promising well, and January figures show an increase of 8.5 per cent in volume and 4.1 per cent in value compared to January 2011.

New markets are opening for Brazilian pork exports. Towards the end of 2011, the USA finally approved imports from the state of Santa Catarina, one of the biggest pig producing states in Brazil and the only state free of foot and mouth disease without vaccination. Although it is not expected that exports to the USA will be high, this approval is seen as a quality stamp for Brazilian pork and should help to open other markets.

China is another market which opened its doors to Brazilian pork in late 2011. The first shipments took place at the end of the year, and in 2012, although still timid, they are increasing. China is seen as a huge potential market for Brazil. Although only three plants have been certified so far by the Chinese authorities, it is expected that more plants will be approved as the trading relationship grows.

2011 saw a shift in the major destinations of exports. For many years Russia was the main destination and even recently accounted for more than 50 per cent of exports. But with a ban on imports from Brazil imposed during 2011, volumes fell and Russia took only 24.5 per cent of total exports in 2011. Hong Kong moved into first position, with 25.12 per cent, with Ukraine in third position with 11.95 per cent, followed by Argentina with 8.14 per cent. It will be interesting to monitor where China positions itself in the destination table of exports for 2012. Almost certainly, it will move up the ranks over coming years.

Of the four biggest importers of pork in the world, Brazil exports only to one of them, Russia. It still has to open the markets of Japan, South Korea and Mexico. The difficulty in opening markets is largely due to two factors: sanitation and politics. Animal sanitation for export products is the responsibility of the federal government, which has not shown itself to be particularly competent at imposing health controls over recent decades. However, there has been a slow advance which has contributed to the opening of some markets.

Once health requirements have been satisfied, then come political negotiations, and in this area Brazil has shown little ability at overcoming the protectionist measures which so many countries impose. The country has only recently come to the world commercial stage and has not yet acquired the bargaining skills which seem to be so necessary to open new markets.

However, 2011 was not a good year for independent pork producers in any region in Brazil. ABIPECS, the Brazilian association of pork exporting industries, reports that the number of pigs slaughtered in 2011 rose only between one per cent and 1.5 per cent compared to 2010, but the pigs were heavier, adding a further three per cent to the meat supply. So, in total, meat supply rose by four per cent or more.

At the same time, according to ABIPECS, both domestic and foreign demand fell, putting pressure on pig prices which, during most, if not all, of 2011 were below production costs in most regions. This situation was aggravated by high corn prices throughout the year, increasing producers’ losses.

Poor financial results have been the norm for independent producers almost constantly since the financial crash in October 2008 and an increasing number of producers are throwing in the towel and leaving the business, often with high accumulated debts from their attempts to survive the crisis. This is particularly true in the southern region of Brazil, where the percentage of hogs controlled by the large integrators has grown constantly over recent years.

At the same time, the number of smaller independent plants has fallen, creating a situation where the producer no longer has enough buyers for his hogs to create a market. Once the number of major buyers is down to one, as was the situation in the state of Rio Grande do Sul in recent years, it becomes impossible to get a fair market price. And now, that single buyer has sufficient own production so there are no major buyers left!

The interstate costs of shipping pigs are high, bolstered by state taxes which cannot be recovered. So there has to be a very high price differential between states to make it feasible to ship to another state, and that situation has not existed for a long time.

So far there seem to be few indications that a buoyant market for Brazilian hogs in 2012 will bring prosperity to independent producers. The pig crisis of 2002/2003 illustrated the apparent paradox of an industry which was booming while producers were experiencing one of the worst crises they had ever seen. But the markets for live hogs and for pork products are two different markets. If the live hog market is over supplied while the pork product market is booming, the producer does not reap any benefit.

It remains to be seen what 2012 will bring for producers. The next chapter will be coming soon!

Prices for the week of 08 March 2012
Country Domestic price
(own currency) US dollars
(Liveweight a lb)
USA (Iowa-Minnesota) 85.97¢ USD/lb carcass 63.61¢
Canada (Ontario) 1.57¢ CAD/kg carcass 57.16¢
Mexico (DF) 22.73 MXN/kg liveweight 79.80¢
Brazil (South Region) 2.46 BRL/kg liveweight 63.83¢
Russia 95 RUB/kg liveweight $1.45
China 15.62 RMB/kg liveweight $1.12
Spain 1.29 EUR/kg liveweight 77.13¢


 Genesus Genetics

[Mustang Sally Farm]

Friday, March 09, 2012
World Pork Expo Invites Early Registration
US - Seeing the pork industry’s newest technologies, participating in business seminars and showing outstanding breeding stock are just a few of the reasons nearly 20,000 people will attend the 2012 World Pork Expo.


Plans are well underway for this year’s event, which is scheduled for June 6-8 at the Iowa State Fairgrounds in Des Moines, Iowa, and brought to you by the National Pork Producers Council (NPPC). Starting March 15, people can register to attend by visiting www.worldpork.org.

“World Pork Expo has become a must-see event for pork producers and allied industry throughout the world,” says Doug Fricke, director of trade show marketing, NPPC. “Interest in this year’s Expo is high, with some of the official World Pork Expo hotels already sold out. It’s never too early to make travel plans and register to attend so you don’t miss out on everything World Pork Expo has to offer.”

Expo features the latest pork industry developments
Each year, producers and industry professionals make World Pork Expo, the world's largest pork-specific trade show. Attendees will find business seminars on profitability, animal health and current issues. They can see the newest products, services and technologies offered by more than 450 commercial exhibitors. They will have the opportunity to watch junior showmen and swine breeders exhibit some of the best market hogs and breeding animals available. And throughout the event, they can feast on great food and enjoy family entertainment.

The Expo trade show is open from 8 am to 5 pm on Wednesday, June 6, and Thursday, June 7, as well as from 8 am to 1 pm on Friday, June 8. The breeding stock sales will continue on Saturday, June 9, from 8 am until they’re completed (at approximately noon).

Once again, MusicFest will be the social highlight of World Pork Expo. From 4:30 pm to 8 pm on Thursday, Expo attendees can enjoy free roasted pork and refreshments while listening to music performed by live bands.

Several pre-Expo tours are planned so that producers from throughout the world can experience Midwestern agriculture and hospitality at their finest June 4-5.

Early registration provides $10 discount
By registering in advance, attendees can receive a $10 World Pork Expo early registration discount and free Expo alerts via e-mail. Online registration will open March 15 at www.worldpork.org. The website also has the latest details about room availability at the official Expo hotels in its “Hotel/Transportation” section. Additional information is available when you connect with World Pork Expo on Facebook and follow World Pork Expo on Twitter (#NPPCWPX).

World Pork Expo, the world's largest pork-specific trade show, is brought to you by the National Pork Producers Council. On behalf of its members, NPPC develops and defends export markets, fights for reasonable legislation and regulation, and informs and educates legislators.

[Mustang Sally Farm]

Thursday, March 08, 2012
Genesus: 2012 Promises Well for Brazilian Pork Plants
BRAZIL - Pork exports in 2011 at 516,419 tonnes were a shade below the total for 2010 of 540,417 tonnes, but total receipts increased by seven per cent to US$1,435 million.
 

However, exports in 2012 are promising well, and January figures show an increase of 8.5 per cent in volume and 4.1 per cent in value compared to January 2011.

New markets are opening for Brazilian pork exports. Towards the end of 2011, the USA finally approved imports from the state of Santa Catarina, one of the biggest pig producing states in Brazil and the only state free of foot and mouth disease without vaccination. Although it is not expected that exports to the USA will be high, this approval is seen as a quality stamp for Brazilian pork and should help to open other markets.

China is another market which opened its doors to Brazilian pork in late 2011. The first shipments took place at the end of the year, and in 2012, although still timid, they are increasing. China is seen as a huge potential market for Brazil. Although only three plants have been certified so far by the Chinese authorities, it is expected that more plants will be approved as the trading relationship grows.

2011 saw a shift in the major destinations of exports. For many years Russia was the main destination and even recently accounted for more than 50 per cent of exports. But with a ban on imports from Brazil imposed during 2011, volumes fell and Russia took only 24.5 per cent of total exports in 2011. Hong Kong moved into first position, with 25.12 per cent, with Ukraine in third position with 11.95 per cent, followed by Argentina with 8.14 per cent. It will be interesting to monitor where China positions itself in the destination table of exports for 2012. Almost certainly, it will move up the ranks over coming years.

Of the four biggest importers of pork in the world, Brazil exports only to one of them, Russia. It still has to open the markets of Japan, South Korea and Mexico. The difficulty in opening markets is largely due to two factors: sanitation and politics. Animal sanitation for export products is the responsibility of the federal government, which has not shown itself to be particularly competent at imposing health controls over recent decades. However, there has been a slow advance which has contributed to the opening of some markets.

Once health requirements have been satisfied, then come political negotiations, and in this area Brazil has shown little ability at overcoming the protectionist measures which so many countries impose. The country has only recently come to the world commercial stage and has not yet acquired the bargaining skills which seem to be so necessary to open new markets.

However, 2011 was not a good year for independent pork producers in any region in Brazil. ABIPECS, the Brazilian association of pork exporting industries, reports that the number of pigs slaughtered in 2011 rose only between one per cent and 1.5 per cent compared to 2010, but the pigs were heavier, adding a further three per cent to the meat supply. So, in total, meat supply rose by four per cent or more.

At the same time, according to ABIPECS, both domestic and foreign demand fell, putting pressure on pig prices which, during most, if not all, of 2011 were below production costs in most regions. This situation was aggravated by high corn prices throughout the year, increasing producers’ losses.

Poor financial results have been the norm for independent producers almost constantly since the financial crash in October 2008 and an increasing number of producers are throwing in the towel and leaving the business, often with high accumulated debts from their attempts to survive the crisis. This is particularly true in the southern region of Brazil, where the percentage of hogs controlled by the large integrators has grown constantly over recent years.

At the same time, the number of smaller independent plants has fallen, creating a situation where the producer no longer has enough buyers for his hogs to create a market. Once the number of major buyers is down to one, as was the situation in the state of Rio Grande do Sul in recent years, it becomes impossible to get a fair market price. And now, that single buyer has sufficient own production so there are no major buyers left!

The interstate costs of shipping pigs are high, bolstered by state taxes which cannot be recovered. So there has to be a very high price differential between states to make it feasible to ship to another state, and that situation has not existed for a long time.

So far there seem to be few indications that a buoyant market for Brazilian hogs in 2012 will bring prosperity to independent producers. The pig crisis of 2002/2003 illustrated the apparent paradox of an industry which was booming while producers were experiencing one of the worst crises they had ever seen. But the markets for live hogs and for pork products are two different markets. If the live hog market is over supplied while the pork product market is booming, the producer does not reap any benefit.

It remains to be seen what 2012 will bring for producers. The next chapter will be coming soon!

Prices for the week of 08 March 2012
Country Domestic price
(own currency) US dollars
(Liveweight a lb)
USA (Iowa-Minnesota) 85.97¢ USD/lb carcass 63.61¢
Canada (Ontario) 1.57¢ CAD/kg carcass 57.16¢
Mexico (DF) 22.73 MXN/kg liveweight 79.80¢
Brazil (South Region) 2.46 BRL/kg liveweight 63.83¢
Russia 95 RUB/kg liveweight $1.45
China 15.62 RMB/kg liveweight $1.12
Spain 1.29 EUR/kg liveweight 77.13¢