World Hog news:

[Mustang Sally Farm]

Tuesday, April 17, 2012
Tainted Pig Feed Ingredients Seized in Viet Nam
VIET NAM - Viet Nam’s environment police today seized 12 tons of contaminated Chinese-origin materials for pig feed from a Ho Chi Minh City firm on suspicion of banned steroids content.


Thanh Nien News reports that ONI company was using the materials to make various products, one of which had been found to contain salbutamol, a banned growth agent which causes increased heart rate, indigestion, and other conditions in humans.

Company records show it has delivered its products to many provinces this year, including Binh Dinh, Dong Nai, Binh Duong, and Long An.

Inspection of pig-feed producers in southern Viet Nam has been beefed up after Thanh Nien in late February exposed the use of the agents in Dong Nai Province, a major pig and pork supplier in the south.

The substance, popular with body builders, has also been detected in some places in the north, but not as widely as in the south, which has been facing a pork scare since last month.

[Mustang Sally Farm]

Wednesday, April 18, 2012
Brazilian Hog Markets
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 7 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, writes Martin Riordan, Sales and Service Genesus Brazil.
 

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.

Genesus Global Market Report
Prices for the week of April 9, 2012
Country Domestic price
(own currency) US dollars
(Liveweight a lb)
USA (Iowa-Minnesota) 82.49¢ USD/lb carcass 61.05¢
Canada (Ontario) 1.54¢ CAD/kg carcass 55.89¢
Mexico (DF) 18.75 MXN/kg liveweight 66.87¢
Brazil (South Region) 2.14 BRL/kg liveweight 54.20¢
Russia 95 RUB/kg liveweight $1.02
China 13.54 RMB/kg liveweight $0.99
Spain 1.29 EUR/kg liveweight 76.88¢

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 1 per cent and 1.5 per cent compared to 2010, but the pigs were heavier, adding a further 3 per cent to the meat supply. So, in total, meat supply rose by 4 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.

[Mustang Sally Farm]

Thursday, April 19, 2012
Maltese Pig Population Down in 2011
MALTA - The number of pigs in Malta dropped by 34.4 per cent in 2011 over 2010, the National Statistics Office said yesterday.


The pig population rose 7 per cent between 2009 and 2010, reports TimesofMalta.com.

The NSO said that in December 2011, the pig population amounted to 46,287 heads, down by 34.4 per cent, or 24,296 over 2010. A decline of 26.9 per cent was recorded in the breeding stock, which ultimately contributed to a 36.4 per cent drop in fattening pigs.

The census revealed that 116 holdings (-11.5 per cent) were engaged in pig production. Of these, 72.4 per cent had less than 400 pigs and accounted for 31.8 per cent of total stock, or 14,730 heads.

The holdings which had more than 400 heads accounted for 31,557 pigs, or 68.2 per cent of the total pig population.

On a regional level, the pig population decreased by 34.7 per cent in Malta and by 29.5 per cent in Gozo and Comino. Overall, 43,306 pigs, or 93.6 per cent were located in Maltese farms, with the Western District accounting for 41.0 per cent. In Gozo and Comino, the pig population amounted to 2,981 heads, or 6.4 per cent of the total stock.

The Pig Breeders' Association says on its website that Malta currently slaughters about 1,600 pigs per week. This is a significant reduction from the 2,400 which used to be slaughtered every week just a few years ago, although pork consumption has not been reduced.

"The difference has simply been replaced by lower quality imported meat products."

[Mustang Sally Farm]

Friday, April 20, 2012
World Pork Production Continues to Grow
GLOBAL - Global pork production for 2012 is expected to be around 104 million tonnes. China, the EU, and the United States account for most of the growth.


According to the USDA Livestock & Poultry: World Markets & Trade, China is forecast up 320,000 tons to 51.6 million tons as rising producer returns stimulated the use of higher quality feeds. Government supports also encourage expansion and improved swine genetics. Disease outbreaks are reportedly milder and less prevalent because of favorable weather and vaccination efforts.

EU is raised 135,000 tons to 22.6 million tons on higher than expected swine breeding efficiency, likely caused by industry restructuring.

The United States is forecast up 96,000 tons to 10.6 million tons on increased sow productivity and slightly heavier weights.

Russia is raised 80,000 tons to 2.1 million tons on expansion of modern, large-scale swine operations aided by government support. This growth outweighs lower production by small operations and private households.

Greater volumes are expected from Mexico, up 35,000 tons to 1.2 million tons, due to heavier slaughter weights brought about by improved production practices and growth from the export segment of the industry.

South Korea is down 28,000 tons to 982,000 tons as herd re-building, following the foot and mouth disease (FMD) outbreak, is slowed by tight supplies of sows and lower breeding productivity.

[Mustang Sally Farm]

Monday, April 23, 2012
Overview of This Week’s Pig Industry News
ANALYSIS – The EU directive partially banning sow stalls from January 2013 has much to commend it but the impacts on the pig meat market may have been overlooked or underestimated, writes Jackie Linden. According to a new report, pig production in the EU could to fall by between five and 10 per cent as ‘significant numbers’ of producers quit the industry and one of the scenarios presented indicates a complete re–alignment of the industry across the Community. USDA now forecasts global pork production for 2012 to be around 104 million tonnes.

EU regulations banning battery cages for laying hens and sow stalls have much to commend them but the impacts on the market may have been overlooked or underestimated.

Just three months after the battery cage ban, EU egg production is reported to be down by between 10 and 15 per cent and there has been much disruption in the market, including in some unexpected areas. A partial ban on sow stalls is due to come into force in January 2013 so what can we expect for the pig sector?

In a report published in the last week entitled Market Impact of EU Regulations on Group Housing of Sows, it is stated that fewer than half EU Member States are expected to be fully compliant with the EU Directive, according to the British Pig Executive (BPEX), part of the AHDB.

This is expected to result in market disruptions, says the report. Pig production in the EU could to fall by between five and 10 per cent as ‘significant numbers’ of producers quit the industry because they will be unable or unwilling to comply with the new sow stall ban. Pig meat processors and retailers are expected to face substantial price increases.

The European Commission has made it clear that it expects the new rules to be rigorously enforced and will initiate infraction proceedings against Member States which are not fully compliant, just as for the egg industry.

AHDB Senior Analyst, Stephen Howarth, said: “Historically, even small changes in pig production have led to significant shifts in price. With production likely to fall by five per cent or more, prices could be at least 10 per cent higher, possibly more.”

BPEX Chairman, Stewart Houston, said: “It is imperative for retailers and processors to ensure contract arrangements that guarantee the supply of pig meat under terms that allow sensible business decisions to be made and for everyone in the supply chain to work towards a sustainable, profitable sector.”

The report envisages three possible scenarios.

The most likely scenario, suggest the authors, is that total EU pig meat production in 2013 would be around five per cent lower than in 2011.

A second scenario, which would result if enforcement of the new rules were to be rigorous, would lead to a 10 per cent cut in pig meat output in 2013 compared to 2011.

The third scenario presented considers the possibility that the regulations would be a catalyst for a realignment of production in the form of integration across much of the EU, with breeders in North West Europe supplying piglets to finishers in Eastern and Southern Europe. This situation would have significant impacts on the environment, welfare and the processing sector but it may reduce production costs, suggests the report.

Spain’s livestock industries are under attack from all directions, it seems. Not only is the present drought hitting domestic feed crops yields, as previously reported but now, the country's farmers are threatened by a possible ban on imports of soy and other products from Argentina. The ban is being considered in retaliation for a political wrangle between the two countries over the ownership of an oil company.

Colombia's farmers are concerned about the free trade agreement (FTA) with the US, which begins on 15 May 2012. The agreement will eliminate most tariffs immediately and phase out the remaining tariffs over periods of up to 19 years. Pork is among the US farm products that will receive immediate improved market access in Colombia.

This treaty is a double–edged sword for Colombia. The livestock sector generally wants access to cheap corn and soybeans to feed their animals, since they import large quantities of these products from the US, while the poor state of the country's roads may be put into the spotlight.

Global pork production for 2012 is expected to be around 104 million tonnes, according to a new report from USDA. China, the EU, and the United States will account for most of the forecast growth but higher output is also predicted from Russia and Mexico.

Outbreaks of swine fever – both classical and African variations – have been reported in Russia during the last week.


Jackie Linden, Senior Editor

[Mustang Sally Farm]

Thursday, April 26, 2012
Japan Rearrests Two over Tax Evasion in Pork Tariffs
JAPAN - The Tokyo District Public Prosecutors Office rearrested two men running meat import businesses on charges of evading 13.6 billion yen in tariffs on pork by fraudulently declaring import prices.


According to Daily Yomiuri Online, arrested for alleged violation of the Customs Law were Kenji Shibata, 61, and Kunihiro Dotani, 69.

Mr Shibata and Mr Dotani allegedly conspired to pad prices for frozen pork they imported from such countries as the United States and Canada in 2010 and declared the inflated import prices to Japanese customs authorities, dodging tariffs totaling 13.63 billion yen as a result.

Japanese companies that import pork at lower prices than the government-set standard of 546 yen per kilogram are required to pay countervailing tariffs equivalent to the price differences.

The amount of tariffs dodged by Shibata and Dotani is seen to be the largest among all cases involving fraudulent price declarations for pork imports, informed sources said.

[Mustang Sally Farm]

Thursday, May 03, 2012
Viet Nam Hog Markets
VIET NAM - Generally, pig production in Vietnam is in difficulty. In late February, Vietnamese officials seized a large portion of illegal agents used for stimulating growth and lean meat production in pigs and cattle in a series of raids in Dong Nai province (near Ho Chi Minh City), writes Ron Lane.
 

This large seizure has caused concern amongst consumers over the safety of the local pork in the marketplace. On top of this, pork consumption is limited by the fear of contaminated pork from these additives (example is clenbuterol) that can cause human health issues. However, more important to pork producers is the large negative effect on prices. As well, the temporary suspension of pork imports from Vietnam into China has made the price of pork in the marketplace, especially in the south, to have a significant reduction. Furthermore, estimates of the country's pig numbers are showing an increase between 3-4% over the same period in 2011. The above problems along with price discounts will cause more farmers to give up farming. Also, the price of replacement pigs or weaner pigs is under pressure with cheaper prices.

The government of Vietnam had launched a campaign to ban the use of illegal feed additives to stimulate lean pork a few years ago. More recently with more concerns from consumers over food safety especially meat safety, the government of Vietnam has been diligent in checking farms and suppliers for additives that could negatively impact the health of consumers. In their investigation, the government found many livestock units were using the banned products.

In the North, the price of finished pigs ranged from 45,500 to 49,000 VND/kg ($ 2.19 to $ 2.36 US/kg), down 14.5% from the previous month, while in the South, finished pigs averaged around 47,700 VND/kg ($2.29 US/kg), down 13% from the previous month. The area where the banned substances were located saw the local pig price drop substantially. Pig prices on the farms in the area of Thong Nhat, Dinh Quan and Dong Nai provinces, saw live pig prices from 40,000 to 41,000 VND/kg ($1.92 to $ 1.97 US/kg). The small, backyard farmers in this area only sold for 39,000 VND/kg ($1.88 US/kg). With these current prices, pork producers have losses of about 6,000 VND/kg ($0.29 US/kg) or about 600,000 VND/100 kg liveweight pig ($28.85 US per market pig) compared to the cost of production. Even with no evidence on the use of banned chemicals in the North part of the country, the price of live pigs in the Hanoi market also began to turn downward. Extra lean pork in Hanoi is purchased at 56,000 VND/kg ($ 2.69US/kg). Hams averaged 95,000 VND/kg ($4.57 US/kg) and bacon averaged 105,000 VND/kg ($5.05 US/kg). Despite lower prices, the consumption of pork from the market is slower.

In March, the price of some animal feed ingredients increased slightly from February: soybean oil 10,710 VND/kg ($0.515 US/kg) (up 7.4%) and fish meal 21,525 VND/kg ($1.035 US/kg) (up 7.7%). Prices of some raw materials decreased slightly: rice bran 6,510 VND/kg ($0.313 US/kg) (down 12.7%), lysine 54,600 VND/kg ($2.625 US/kg) (down 3.7%) and cassava 5,145 VND/kg ($0.247 US/kg) (down 2.0%). Other materials were stable: corn 7,350 VND/kg ($0.353 US/kg), and methionine 110,250 VND/kg ($5.30 US/kg) with only slight changes. Complete mixed feed for pigs from 60 kg to market weight was 9,334.50 VND/kg ($0.449/kg). This is up marginally from February.

April 2012
--General livestock production as estimated by the General Department of Statistics, saw a breakdown for the first 3 months (year on year with first quarter of 2011) as follows: buffalo and beef fell about 7%; dairy cattle continued to grow with the number of milk cows increasing by 10%; pigs in the country increased by 3-4% and poultry increased by 4-5%. Poultry has been affected by avian influenza, ,but because of the high flock increase at the end of last year, the overall flock has increased by 4-5% over the same period last year. Total production of meat in the first 3 months of 2012 is estimated at 1.35 million tons, an increase of 8-10% over the same period in 2011.

Pigs in the country increased by 3-4% over the same period as last year. However, farmers are still facing many difficulties caused by a decline in countrywide market hog prices. Added to this is the drop in the consumption of pork because of the fear that consumers have of the contaminated pork from additives (example clenbuterol) that are used to stimulate lean pork.

In the North part of the country, the price of market pigs ranged from 41,000 to 46,000 VND/kg ($1.97 US/kg to $ 2.21US/kg) while in the South, the average selling price for market pigs was about 42,500 VND/kg ($2.04 US/kg), down 4% from the previous month.

In April, the price of some animal feed ingredients increased slightly from March: soybean meal 11,500 VND/kg ($0.553 US/kg) (up 7.8%), cassava 5,460 VND/kg ($0.263 US/kg) (up 6.1%), lysine 55,650 VND/kg ($2.68 US/kg) (up 2.0%), corn 7,455 VND/kg ($ 0.358 US/kg) (up 1.4%) and methionine 111,300 VND/kg ($5.35 US/kg) (up 1.0%). Prices of some raw materials decreased slightly: rice bran 6,300 VND/kg ($0.303 US/kg) (down 3.2%) and fish meal 19,425 VND/kg ($0.934 US/kg) (down 9.8%).kg. Complete mixed feed for pigs from 60 kg to market weight was 9,261 VND/kg ($0.445/kg). This is down from March (0.8%).

In 2011, Vietnam imported over 8.9 million tonnes of feed ingredients valued at $3.7 million US. According to Le Ba Lich, the president of Vietnam Animal Feeds Association, the imports accounted for more than 62% of the inputs for feed production (total in Vietnam was 14.3 million tonnes of livestock feed manufactured). He said that 4.8 million tonnes were protein sources including soybean meal and meat and bone meal and 3.8 million tonnes were energy sources including corn, rice bran and wheat. In 2011, Vietnam produced 0.87 million tonnes of corn, 0.57 million tonnes of rice bran and 2.3 million tonnes of wheat.

What to look for over the next few months
There is some evidence of FMD in the area of Han Nam Province. With PRRS (Blue ear disease), the farmers took initiatives to prevent and to perform well the care, hygiene and disinfection of the barns in high risk areas. Currently, PRRS disease seems to be under control in the country.

FMD as of April 23rd, 2012 shows the efforts to control the spread of the disease. Monitoring in the provinces such as in the Red River Delta region, the northern mountainous region, North Central, South Central and Central Highland provinces, where previous epidemics occurred could be high risk locations for repeat outbreaks. With PRRS (Blue ear disease) there is general widespread in Dien Bien, Yen Bai and Nam Dinh areas. Risk of transmission is very high. According to the epidemiological characteristics of swine since 2007, the high risk areas are in the north when the weather turns quite hot.

Animal feed and raw materials: Estimated imports in April reached $155 million US, bringing the total value of imports of this commodity group in the first 4 months to about $ 618 million US, down 19.3% over the same period last year. In particular, imports from Italy increased significantly (10 times over the same period last year).

It is estimated that pig farms across the country have lost about 500 billion VND ($24 million US). Market pig prices in and near Ho Chi Minh City have plunged by nearly 20% to 42,000 VND/kg ($2.02 US/kg). Hog farmers are losing from 5,000 to 6,000 VND/kg ($0.24 to 0.29 US/kg). Since the use of banned substances to improve lean were found on farms in Dong Nai province , the price in this region has seen a severe drop. Their pigs are mainly supplied to Ho Chi Minh City. The province has 1261 farms with a total of 1.2 million pigs.

An April 23rd, 2012 meeting held in HCM by Ms. Deborah Chatsis, Ambassador of Canada to Vietnam and Mr. Martin Charron, Vice President for Marketing of the Association of Canada Pork International (CPI) said that Vietnam is one of the major potential markets for pork from Canada in the coming years and that CPI association is looking for opportunities to promote products “Clean Pork” to the domestic enterprises and consumers. According to Charron, in 2011, the export value of pork accounted for nearly 6 million Canadian dollars to Vietnam. He also mentioned that there are two reasons for us to believe that Canada pork can gain a foothold in Vietnam's market. One is that consumer's living standards are improving in Vietnam. In addition, consumers want to know that the meat they consume ensures food safety. “This is an issue that Canada can meet easily” said Charron (in conversation with the Saigon Times Online). The chief hurdle for importing pork into Vietnam relates to the Ministry of Finance-issued Circular 52/2009 on the adjustment of tariffs for imported meat. For pork, there are tariffs of 28% for fresh and chilled and 24% for frozen pork. -According to the Ministry of Agriculture and Rural Development, Vietnam annually consumes about 3.3 million tons of pork.

According to General Statistics Office, the consumer price index (CPI) in March the country rose 0.16% over the previous month, rising 2.55% compared to the end of 2011. This is low even though prices of some commodities have increased. This is a very low figure compared to 1.37% in February and 1% in January 1.2012. The major reason for the increase was due to increased gas prices during the month. The price of food and catering services were down by 0.83%. Declining pork prices, the clenbuterol scare and increasing supply of pork meat has had an impact on the food section of CPI. In particular, food items decreased 1.21%, because the supply is relatively abundant. Also, the price tends to decrease after the period prior to Tet Holiday, when consumer demand ramps up substantially. Thus, it is also very low rate over the years (2009 if excluding the price factor rose 4.1%, 15.5% in 2010, up 11.9% in 2011).




 

[Mustang Sally Farm]

Monday, May 07, 2012
New Import Standards for Pork in Force
NEW ZEALAND - The Ministry for Primary Industries says new standards easing restrictions on pork imports are now in force, after legal attempts failed to block them.


Industry body New Zealand Pork tried to prevent imports of untreated pig meat from countries that have the disease Porcine Reproductive and Respiratory Syndrome (PPRS). However, the High Court has ruled that the ministry followed correct procedures for the new import rules, according to Radio New Zealand.

New Zealand is one of the few countries still free of the disease, which can cause abortions and respiratory complaints in pigs and kill piglets.

The Primary Industries Ministry was formed after the merger of the Agriculture and Forestry Ministry, (MAF) the Fisheries Ministry and the Food Safety Authority.

Director-general Wayne McNee says the temporary hold on introducing the standards has now lapsed.

However, the ministry says it is still committed to working with the industry to effectively enforce the rule that bans feeding uncooked meat to pigs - seen as the most likely pathway for PRRS to get into New Zealand pig herds.

New Zealand Pork has until the end of May to decide whether it will continue a legal challenge against the new standards.

Chair Ian Carter, of North Otago, says the High Court decision does not change its view that allowing untreated pork imports is too great a risk.

Mr Carter still believes there is too much unknown science around the issue and the difference between New Zealand Pork's science advisers and those from the ministry is still too far apart to have confidence in what is accurate.

While New Zealand Pork can appeal against the decision, its preferred option is to work with the ministry to find a mutually acceptable solution, he says.

[Mustang Sally Farm]

Thursday, May 10, 2012
Market Forecast to Soften to More Normal Levels
GLOBAL - Rabobank expects a stable, slightly pressured pig prices globally in the second quarter of this year, with a modest recovery in the second half of 2012.
 

Global pig prices have softened in recent weeks to the extent that the Chinese government announced in late April that it has initiated procurement for its frozen pork reserves, according to the report, Rabobank Pork Quarterly Q2 201. However, pig prices are still high by historical standards in order to offset high feed costs.

With Chinese hog prices projected to rebound at the end of the year, the prospects remain positive, with supply discipline in the key export markets essential to support elevated price levels.

In the longer term, it is Rabobank’s view that growth in global meat protein consumption will continue to lag income and population growth in important emerging markets, raising volume risks to processors and price risks to buyers, from processors to consumers.

[Mustang Sally Farm]

Friday, May 11, 2012
Flawed Pig Meat Import Standards Must be Dropped
NEW ZEALAND - New Zealand First is calling on the Government to drop changes to pig meat import standards because of the risk of spreading a highly infectious disease amongst pigs.


New Zealand First leader Rt Hon Winston Peters says the new standards permit imports of untreated pig meat from countries infected by the Porcine Reproductive and Respiratory Syndrome (PRRS) virus.

“The New Zealand Pork industry holds serious concerns that PRRS will enter the country under these new import standards.

“It will greatly increase the risk of infected meat being fed to pigs, which is how the virus is transmitted.

“If lax import standards allow the virus into New Zealand then it could spread with alarming speed through farmed and wild pig populations.

“The financial impact on pig farmers and associated businesses could be massive.”

Mr Peters says animal experts liken the highly infectious PRRS to HIV in humans. It can cause stillborn foetuses, abortion or respiratory sickness among pigs.

“A 2004 PRRS outbreak in South Africa was blamed on infected meat being fed to pigs. Thousands of animals had to be killed.

“We are one of only a few countries in the world to be PRRS-free and we need to keep it that way.

“PRRS threatens the New Zealand pork industry in the same way the varroa mite affects bees and Psa devastates kiwifruit.

“The Government must intervene and stop the introduction of these defective standards to safeguard the pork industry and our wild pig populations,” says Mr Peters.

[Mustang Sally Farm]

Overview of This Week’s Pig Industry News
14 May 2012



 
ANALYSIS – The pig industry is unfortunately not immune from the problems in the economy generally, reports senior editor, Jackie Linden. That was the message from conferences held in the UK and the US recently.
A new report expects growth in global meat protein consumption to continue to lag behind income and population growth in important emerging markets.
In the EU, there has been last–minute clarification over slat dimensions and space allowances that will take pressure off some pig producers in the region ahead of the 2013 Directive.

The general state of the UK economy, how consumers are reacting to it and the resulting prospects for the UK red meat and dairy industries were discussed in the main session of the Outlook Conference held in London recently.
 
“2011 was the year it all went wrong for the UK economy,” said Head of Agriculture at HSBC, Allan Wilkinson in his presentation on the current economic climate and how it impacts agriculture. However, recent surveys point to a stabilisation in the economy as one indicator points to a greater willingness for businesses in the UK to invest, he said.
 
He presented data showing the consolidation of the buying power in the agricultural supply chain in the UK, which shows that consumers and farmers are squeezed by the supermarket buyers and suppliers to the industry (feed, equipment and agrochemicals), who hold the real market power.
 
The ‘Big Picture’ in terms of the red meat and dairy outlook was presented by Giles Quick, Director of Kantar Worldpanel in his presentation on consumer trends in the UK and the drivers of spending.
 
He stressed that red meat and dairy products are a cornerstone of UK food retailing, worth £15 billion a year. The grocery trade is using many more promotional deals on these items and there has been growth in both the budget and high-end parts of the market. Health is here to stay as an important driver of food purchases, and the concept of ‘British is best’ is important in consumers minds in the current uncertain times.
 
Finally, Mr Quick stressed that if retailers were to take more account of whole store value, rather than category value, it would help sales of red meat particularly, which would benefit producers and processors in that sector.
 
Longer term prospects for agriculture generally and on prices for red meat and dairy products in the light of the economic and consumers trends were addressed by Ken Boyns, Director of Market Intelligence at the Agriculture and Horticulture Development Board.
 
He said that demand for meat and dairy products will remain strong, while supply will be constrained and/or challenged. The rate of technological improvement, its level of adoption and hence, supply potential will drive world prices.
 
“The UK must focus on technology and global markets to remain competitive,” he told the Outlook Conference audience.
 
Turning to the US, the economic recovery is continuing but the rate is slowing. According to economist, Eric Trachtenberg, from McLarty Associates, speaking at the American Meat Institute Expo and conference in Dallas, consumption and residential investment have increased but falling non-residential investment could make the recovery stall.
 
Rabobank expects stable, slightly pressured pig prices globally in the second quarter of this year, with a modest recovery in the second half of 2012. Global pig prices have softened in recent weeks to the extent that the Chinese government announced in late April that it has initiated procurement for its frozen pork reserves, according to the report, Rabobank Pork Quarterly Q2 2011. However, pig prices are still high by historical standards in order to offset high feed costs.
 
In the longer term, Rabobank expects growth in global meat protein consumption to continue to lag behind income and population growth in important emerging markets, raising volume risks to processors and price risks to buyers, from processors to consumers.
 
Clarification has been provided – at last – on some of the vital details relating to flooring and space allowances acceptable under the forthcoming EU directive. With much of the focus on the partial ban on sow stalls, other aspects of pig housing also included in the new rules have been overlooked until now.
 
Finishers with concrete slats with a slot width of more than 18mm – but not more than 21mm – will not need to replace them after all. It has also been confirmed by the European Commission that producers may include the space occupied by free–access feeders when calculating 1.64 square metres of unobstructed floor area for gilts and 2.25 square metres for sows.
 
This news will be welcomed by many pig–keepers all over Europe. In the UK, Defra, NPA and BPEX say they have been working to prevent the rules, which come into force in January along with the partial stalls ban, from bringing the European pig industry to its knees.
 
Based on data collected from UK National Pig Association members and scaling that up across the EU, the organisations estimate the total cost of replacing concrete slats for the sake of two or three millimetres would have been more than £50 million (around €62 million).

 Jackie Linden, Senior Editor

[Mustang Sally Farm]

Overview of This Week's Pig Industry News
21 May 2012



 
ANALYSIS – A few heavy rain showers on the first day of the British Pig & Poultry Fair last week were the only things to dampen seriously the mood at the event, held last week at the National Agricultural Centre, reports senior editor, Jackie Linden.
While feed ingredient prices remain high and the state of the wider economy is making business difficult for the sector, there was some good news over an upturn in pig prices and there is uptapped potential for the industry in food service.
Furthermore, the UK agriculture minister has reached agreement with the Chinese government for China to resume imports of pig meat and breeding pigs from the UK.

In a now-traditional press conference at the start of the Fair, British Pig Executive (BPEX) Director, Mick Sloyan, opened his presentation saying that the DAPP had been on the rise over the last few months – at last – and now stands at a little over 148p per kilo.
 
The EU pig welfare directive, due to come into force on 1 January 2013, will have less impact of the UK pig industry than most other member states as stalls and tethers were outlawed here in 1999, and Mr Sloyan highlighted recent clarification of the coming rules over slot width and space allowances – also included in the new Directive – as the result of lobbying by BPEX and other industry organisations.

British pig meat, chicken and eggs are enjoying growing demand from food service, and exploring the potential of this sector was the subject of the headline debate at the Fair.
 
While the British Pig & Poultry Fair was on came the news that British pork will soon be on menus in China, following a £50–million deal reached by Agriculture Minister, Jim Paice. He announced the landmark agreement with the Chinese Government while on a mission to China to boost trade for British food and farming businesses.
 
Turning to news from other countries, Chinese egg producer, Beijing DQY Agriculture Technology Co. Ltd, has teamed up with American meat supplier, Smithfield Foods Inc, to set up a $1.8– billion biofuel plant in the USA. The venture is expected to be operational by the end of 2012 and will use waste from a Smithfield pig farm, producing a power generation capacity of one megawatt.
 
China’ pork prices have continued to decrease, leading to widespread losses for the industry and prompting the government to take measures to prevent the prices from fluctuating greatly during the next few months.
 
Agricultural analysts said the low prices might prompt a reduction in the country’s pork imports from the US and put downward pressure on US hog futures, which hit their lowest price last week since September.
 
Finally, Australian pig meat production is on the rise, driven by strong local and international demand.

 Jackie Linden, Senior Editor

[Mustang Sally Farm]

Jamaica Conducts Pig Industry Census
23 May 2012


JAMAICA - The data collection field staff of the Agricultural Marketing Information Division of the Ministry of Agriculture & Fisheries, in collaboration with Trevor Hamilton & Associates (THA) Limited, is in the process of conducting a field data collection for a census of the pig industry in Jamaica.

Jamaica Observer reports that the census, which began two weeks ago, is part of a wider study of the Pig Industry for which THA has been contracted to undertake with funding assistance from the Jamaica Social Investment Fund, through the Rural Economic Development Initiative Project.
 
Jamaica is relatively self-sufficient in pig production, but there is a dearth of information about the present structure of the industry, largely due to the fact that the last census was conducted almost a decade ago. This census will assess and describe the present structure, as well as make recommendations for an industry plan.
 
The information gathered will assist the ministry and other industry stakeholders to better plan for the development of the pig/pork industry towards meeting the country's needs for pork products.
 
The ministry's officers will be conducting interviews among all pig farmers islandwide during the period May to July 2012.
 

[Mustang Sally Farm]

Jamaican Pig Farmers See Tough Times Ahead
29 May 2012


JAMAICA - The US$2.3 million state-of-the-art Sweet River Abattoir project in Westmoreland could be dead before it gets off the ground as a result of the 16.5 per cent general consumption tax (GCT) added to animal feed and pork, say the island's pig farmers.

According to The Gleaner, ground was broken six months ago on the massive venture, which is set for completion in November, but the investors, Sweet River, some 500 farmers, and Caribbean Producers Jamaica Limited (CPJ), say the development - the largest combined investment in the history of the pork industry - faces imminent suspension.
 
"The announced GCT will see an increase of 12 per cent to the current price of pork from the farmers, and consumers will pay an alarming 25 per cent more," said Sweet River's managing director, Valdence Gifford. He cautioned that with chicken being exempted, pork would be at a severe disadvantage.
 
"Why would anyone want to purchase pork now?" added Mr Gifford.

On average, consumers are currently paying between J$180 and $200 per pound for pork.
 
Mr Gifford's concerns have been echoed by treasurer of the Jamaica Pig Farmers' Association (JPFA), Henry Graham, who revealed that a number of the island's farmers have invested some J$300 million into improving their infrastructure to supply the new abattoir and the new processing facilities at CPJ in Montego Freeport, and the new measures would have dire effects on their investments.
 
"It will also affect our ability to compete with the rest of our CARICOM partners. If this takes effect, it would result in the industry dying," he argued, noting that the farmers had not taken into account the magnitude of the increase in doing business.
 
The idea behind the abattoir was to ensure the industry became self-sustainable, having the ability to produce meat products that are traditionally imported, and that have been reared, handled properly, and processed, saving the country millions of dollars.
 
Currently, the country imports an average of three million kilograms of pork annually.
 
"We can reduce that by one-third. However, we feel that the Government did not put enough thought into the taxation implications. We were encouraged by the Government to increase our local input in order to reduce importation, and over the last three years, this has been progressively done, culminating with this investment," said the JPFA treasurer.
 
CPJ's co-managing chairman, Tom Tyler, is convinced the new tax will kill any potential the industry might have to export.
 
Mr Tyler said CPJ invested J$350 million into a modern processing plant, and with the abattoir, could apply for certification for export.
 
"This has always been our response to successive ministers of agriculture who have encouraged us to invest in local farm production. The one industry that has the most far-reaching effects in Jamaica is agriculture. Protecting that industry is protecting the most vulnerable in the society," he argued.
 
Investor Neville Grant, a returning Jamaican, also expressed disappointment with the taxation measures, stating that he was giving up his dental lab practice in New York to concentrate on pig rearing, and the increase had placed a damper on his outlook and decision.
 
"I am trying to help the pig industry that has been lagging 50 years behind other developed countries," said Grant. So far, he has invested US$1.4 million in his own farm, and J$5 million in the Sweet River project.

[Mustang Sally Farm]

Global Pig Industry Takes the Lead
08 June 2012

 

GLOBAL - The pig industry worldwide has a major contribution to make to lessening environmental impact.

Major steps have already been taken towards achieving this and the International Meat Secretariat has just published a report called Pigs and the Environment which examines the whole issue.
 
Some 16 different countries around the world have provided information for the report which shows just how seriously the pig industry is taking its responsibilities.
 
It takes for its starting point the statement from the FAO in Livestock’s Long Shadow which says “the considerable expansion of the livestock sector required by expanding demand must be accomplished while substantially reducing livestock’s environmental impact”.
 
Report author Mick Sloyan, Chairman of the IMS Pork Committee and Director of BPEX, said: “Put simply this means produce more with less.
 
“During our discussions it became clear that pork producers and processors in a wide range of countries have been investing in new and often innovative ways of using resources more efficiently to produce high quality meat protein.
 
“In addition they are often managing the by-products of production and processing a positive way, for example to generate alternative energy sources and replacement inputs such as fertilisers.
 
“It was also clear that there is a strong commitment to accelerate these developments in order to meet the growing demand for meat in a sustainable way.”
 
The report illustrates some of the ways countries are addressing the challenge of producing more with less.
 
Some are simple, many are innovative and all of them demonstrate very clearly that meat production and processing is part of the solution in satisfying the needs of the world’s consumers in the years to come.
 
Mr Sloyan said: “The report presents an overview of the global impact that pig production has on the environment and specifically the emission of Green House Gases. It uses provisional data produced by Food and Agriculture Organisation (FAO) of the United Nations. This data will be updated in the coming years as new knowledge becomes available.
 
“The report also contains examples of measures being taken in individual countries to reduce the impact on the environment in the future. These countries collectively account for 78% of the world’s pork production.”