Meat Industry Faces a Squeezed Middle Market
The meat industry faces three separate challenges – increasing and maintaining margins, accommodating greater uncertainty in the business environment and responding to market segmentation, writes Chris Harris, ThePigSite Editor in Chief.

This was the message from Professor Phil Thomas, chairman of the Quality Meat Scotland R&D committee at the Quality Meat Scotland R&D Conference in Perth.

He said the global meat industry will have to face up to the needs of a growing global population – expected to reach nine billion by 2050 – as well as the problems of climate change.

The food industry also has to face up to the challenges of national and international food security, diet and health issues, land use and energy shortages as well as the diminishing mineral reserves and global economic problems.

Professor Thomas said that the future prospects for agriculture look challenging particularly in the red meat sector.

However he said that these challenges are also great opportunities for the meat sector.

"Individual businesses and the industry as a whole will therefore need to grasp the opportunities and address the challenges," he said.

He said the industry could not afford to hold on to the status quo.

The sector will find that it will have to find answers to many different questions using existing and new technologies, improved efficiency, reduction of waste and an ability to innovate.

He said among the challenges will be the cost and availability of energy in "all shapes and sizes".

"Bioenergy has its positives and its negatives," he said.

"You can grow for it but it takes land to grow for it and all along the way governments will intervene."

The main influences on a changing food and agricultural system will be both population growth and climate change and, Professor Thomas said, that while climate change is not going to be felt so dramatically in the northern hemisphere, its impact is going to be felt in regions from the equator outwards.

He also warned that food prices that saw a global peak in 2008 could see another peak this year as cereal and oil prices rise.

However, while cereal and oil prices could reach new high levels, the prices for meat will not peak to such a degree.

"This is because in underdeveloped countries the populations turn from meat to cereals in hard times," he said.

The scenario in the developed nations such as Europe will be different, because there is a small number of buyers in the middle between the large numbers of food producers and the large numbers of consumers.

This dynamic of the market will mean that there will be a growth in the low end products and a growth in the high-end products, but the middle markets will be squeezed.

Professor Thomas told the conference that with a squeezed middle market meat producers will have to find their area of sales either at the top end or the low commodity end as the market polarises.

January 2011

Thursday, February 03, 2011Print This Page
World Meat Price Steady; Dairy Price Higher
GLOBAL - With a 3.4 per cent surge in January, world food prices have reached a new historic peak. However, the average meat price was steady and dairy prices, though six per cent higher than in December, are still a way off the historic peak.
 

World food prices surged to a new historic peak in January, for the seventh consecutive month, according to the updated FAO Food Price Index, a commodity basket that regularly tracks monthly changes in global food prices.

The Index averaged 231 points in January and was up 3.4 per cent from December 2010. This is the highest level (both in real and nominal terms) since FAO started measuring food prices in 1990. Prices of all monitored commodity groups registered strong gains in January, except for meat, which remained unchanged.

High prices
"The new figures clearly show that the upward pressure on world food prices is not abating," said FAO economist and grains expert, Abdolreza Abbassian. "These high prices are likely to persist in the months to come. High food prices are of major concern especially for low-income food deficit countries that may face problems in financing food imports and for poor households which spend a large share of their income on food."

"The only encouraging factor so far stems from a number of countries, where –,- due to good harvests – domestic prices of some of the food staples remain low compared to world prices," Abbassian added.

FAO emphasised that the Food Price Index has been revised, largely reflecting adjustments to its meat price index. The revision, which is retroactive, has produced new figures for all the indices but the overall trends measured since 1990 remain unchanged.

The FAO Cereal Price Index averaged 245 points in January, up three per cent from December and the highest since July 2008, but still 11 per cent below its peak in April 2008. The increase in January mostly reflected continuing increases in international prices of wheat and maize, amid tightening supplies, while rice prices fell slightly, as the timing coincides with the harvesting of main crops in major exporting countries.

The Oils/Fats Price Index rose by 5.6 per cent to 278 points, nearing the June 2008 record level, reflecting an increasingly tight supply and demand balance across the oilseeds complex.

The Dairy Price Index averaged 221 points in January, up 6.2 per cent from December, but still 17 per cent below its peak in November 2007. A firm global demand for dairy products, against the backdrop of a normal seasonal decline of production in the southern hemisphere, continued to underpin dairy prices.

The Sugar Price Index averaged 420 points in January, up 5.4 per cent from December. International sugar prices remain high, driven by tight global supplies.

By contrast, the FAO Meat Price Index was steady at around 166 points, as declining meat prices in Europe, caused by a fall in consumer confidence following a feed contamination scandal, was compensated for by a slight increase in export prices from Brazil and the United States.

Raising meat goats, a few tips that might help those of you that are thinking about this side of the industry.One should always plan ahead the nutritional needs of the goat breeds you own on your farm.One common mistake made by newcomers or rookies is trying to produce as many litters as possible without knowing the possible disasters that might follow,high death rates of kids due to over excessive breeding,disease and other problems relating to adult goats in the herd.In turn,this might place a greater financial hardship for additional feeds,medications and vet visits.

Try and plan your kidding time,goats gestate for 5 months which is ample time to prepare everything to ensure the doe goats remain in peak condition.
Flushing,1 month before the actual mating,feed the does a richer diet intake.This is used to try and get the does to produce a higher number of kids.Before mating, a good practice to follow is to deworm and vaccinate the does in the hope they will carry their pregnancies to full term.Abortions have been known due to heavy worm loads.

Some goat meat producers try and make the does raise 2 litters within the mating period.First you would need to breed early and wean the first kids early on to encourage the does to return to heat again.In most cases,the 2nd litters usually produce fewer kids.Always remember,the health of the baby goats is paramount.One decision one has to face,the culling of sick kids,ask yourself,is it really worth it to me to try and restore the health of sickly kids,or is it just throwing good money after bad.Sometimes tough decisions must be made to protect the producers best interest.Always check to make sure the does are in good health and in good body condition.Always seperate your pregnant does from dry does.Expecting does should have their own kidding pens.Check to make sure the kids suckle so they may acquire the necessary antibodies from their dams.

This is a good start,best of luck with your new venture,you too are now a goat meat producer.

Philippines - EU Beef ban lifted 03 Feb 2011
This follows earlier decisions to lift the bans on imports from the other EU Member States and means that exporters from all EU Member States can now apply to export such products to the Philippines again.

 

 

This measure is welcomed by the EU as by lifting the ban, the Philippines shows that it recognises that European beef and beef products are safe.
 
 
 
 
 
In 2000, the Philippines introduced an import ban on beef of European origin, citing a risk of Bovine
Spongiform Encephalopathy (BSE) without providing any scientific justification for the measure.
This measure went beyond the international standards set by the World Organisation for Animal Health (OIE) and did not take into account the stringent control and surveillance measures in place in the European Union guaranteeing that European beef and beef products could be consumed in all safety.
 
 
 
 
 
Since the introduction of the ban, the European Commission, the EU Delegation and EU Mem-ber States regularly raised the issue with the Philippines in all available fora and bilateral meetings, at technical and political level.
 
 
 
 
 
On these occasions, the European Commission requested the Philippines to lift the ban for all affected EU Member States.
Source: businessmirror.com

Wednesday, February 02, 2011Print This Page
Weekly Roberts Market Report
US - October futures and beyond were lower an average of $0.65/cwt. Short covering, end-of-month buying, and the winter storm supported higher hog prices.

Michael T. Roberts
Extension Agriculture Economist,
Dairy and Commodity Marketing,
NC State University

LEAN HOGS on the CME finished mixed on Monday with futures from February 2011 through August 2011 up and deferreds lower. The FEB’11LH contract closed up $1.500/cwt at $87.250/cwt; $8.22/cwt higher than last week at this time. The APR’11LH contract closed at $94.000/cwt; up $0.375/cwt and $7.750/cwt over last report. AUG’11LH futures closed at $97.325/cwt; up $0.225/cwt and $0.825/cwt higher than last week at this time. October futures and beyond were lower an average of $0.65/cwt. Short covering, end-of-month buying, and the winter storm supported higher hog prices. In other news South Korea signaled willingness to increase imports and lower tariffs. Cash hogs traded $1-$2/cwt higher on Monday. USDA on Friday put the pork cutout at $88.57/cwt; up $0.88/cwt and $2.93/cwt higher than last Monday. According to HedgersEdge.com, the average packer margin was lowered $4.20/hd to a positive $11.75/hd based on the average buy of $59.57/cwt vs. the average breakeven of $63.67/cwt. The latest CME lean hog index was placed at 78.32 ¢/lb; up 0.62 ¢/lb and 2.18 ¢/lb over last report.

CORN futures on the Chicago Board of Trade (CBOT) closed up on Monday. The MAR’11 contract closed at $6.594; up 15.5 ¢ /bu and 4.25 ¢ /bu higher than last week at this time. The DEC’11 contract closed at $5.912; up 14.75 ¢/bu and 4.0 ¢/bu over last report. Wheat strength, a weaker dollar, higher crude oil, a port strike in Argentina, and end-of-month fund buying were supportive. Wheat prices affect corn prices as they are both used for feed. US corn is more affordable on the world market when the US dollar is weaker compared to other currencies. London’s Brent crude closed over $101/barrel on fears Egypt’s unrest could spread to oil producing areas. Corn prices have been tracking crude prices for some time now as corn is correlated to fuel. Fund buying near month end is a result of account balancing on profits or losses from energy investments, primarily crude oil. Funds bought over 8,000 lots. Exports were weaker than expected as USDA put corn-inspected-for-export at 18.690 mi bu vs. expectations for 25-30 mi bu. Cash corn was steady-to-firm at US Midwest elevators and ports. Crops are battling for acres. Demand for ethanol remains strong as the US approved use of E-15 in vehicles newer than 2005. However, after talking with congressional representatives last week there is a strong desire in Washington to reduce or eliminate the blender’s credit. This could produce a fundamental shift in demand.

SOYBEAN futures on the Chicago Board of Trade (CBOT) finished up on Monday. The MAR’11 contract closed at $14.130/bu; up 15.0 ¢/bu and 8.75 ¢/bu over last report. NOV’11 soybean futures closed up 18.0 ¢/bu at $13.410/bu and 4.5 ¢/bu higher than last Monday at this time. A strike in Argentina, spillover support from wheat, a weak US dollar, firm crude, and end-of-month fund balancing were supportive. The Argentine union indicates the grain port strike may grow. Exports were weak with USDA putting soybeans-inspected-for-export at 29.69 mi bu vs. expectations for 39-43 mi bu. Cash soybeans were steady-to-firm at elevators while river bids were weaker. Funds bought nearly 5,000 lots. Soybean prices look competitive and most likely will compete for corn acres.

WHEAT futures in Chicago (CBOT) closed up on Monday. The MAR’11 wheat contract closed at $8.406/bu; up 15.0 ¢/bu and 5.5 ¢/bu over last report. JULY’11 futures finished up 14.75 ¢/bu at $8.894/bu and 10.75 ¢/bu higher than this time last week. Floor sources said that worries about winterkill in the southern US Plains this week by a major storm could affect yields. The light snowfall totals will leave the crop vulnerable to crop damaging frigid temperatures. Flooding in Australia is hampering wheat shipments from that country. The US, the world’s top wheat exporter, is seen as one of the last places to get high-quality wheat. Egypt is the world’s largest importer of wheat. Protests there are slowing global wheat trade. USDA put wheat-inspected-for-export at 21.313 mi bu vs. trade estimates of 20-25 mi bu.

Wednesday, February 02, 2011Print This Page
Pig Producers Pile on the Pressure
SCOTLAND, UK - NFU Scotland has met with a leading pig industry official to ensure current efforts to improve the prospects for all pig producers are well co-ordinated.
 

NFU Scotland’s pigs committee met (Monday, 31 January) with Stewart Houston, who chairs both the British Pig Executive (BPEX) and the National Pig Association (NPA) and who also sits on SAC board as a non-executive director.

Ongoing NFUS and BPEX/NPA campaigns are targeting a significant improvement in pig prices to reflect increased feed costs backed-up by calls for a greater commitment from major retailers to home-produced pork and bacon, consistently produced to the highest welfare standards in Europe. The organisations have agreed to regular updates on how the campaigns are progressing.

Speaking after the meeting, NFUS Pigs Committee Chairman Phil Sleigh said: “Speaking with Stewart, it was reassuring that the pig campaign being developed by NFU Scotland’s pigs committee dovetails perfectly with the high level of activity taking place through BPEX and NPA. All parties have clearly told the other parts of the pig supply chain that we are proud of the way we look after our pigs and that we deserve a price that reflects the true cost of producing pigmeat to such high standards.

“We need retailers to better reflect soaring feed costs in their pricing structures, and at the same time to better support home-produced pigs in this difficult period. To that end, we are calling on the public to help ensure that more of our pork and bacon makes its way onto our supermarket shelves.

“To encourage the public to get involved, Scotland now has its own banner campaign, following the huge uptake of a similar NPA/BPEX promotion in England and Wales. The message reads: “Perfect Scottish Pork and Bacon – Made in Scotland”. Backed by the Specially Selected Pork, Red Tractor and Scottish SPCA logos, the banners send out a call to consumers to keep asking for Scottish pork and bacon and we look forward to these banners appearing in prominent sites on roadsides around Scotland in the coming days.

“Last week’s investigation of shop shelves by NFUS clearly showed that in some supermarkets, support for Scottish pork and bacon could be considerably better than it currently is. Stocking Scottish product in favour of imports not only responds to consumer demand but supports and recognises the higher welfare standards that producers here meet.

“As with NPA/BPEX, we have written to major retailers regarding the need to support home produce, to address cost issues and to better recognise the higher welfare standards delivered here and we look forward to a prompt response.

“Wearing his SAC hat, this was also an opportunity for the committee to discuss with Stewart ongoing SAC work in the pig sector. Given the current pressure on margins, it is reassuring that much of that work will help the long-term efficiency of our industry. We will continue to work with Stewart and SAC to ensure such important work benefits grassroots pig farmers in Scotland.”

Wednesday, February 02, 2011Print This Page
S Korea Culls Over 3 Million Livestock to Control FMD
SOUTH KOREA - South Korea's quarantine authorities said Wednesday that they ordered the culling of more than 3 million animals to control the spread of foot-and-mouth disease (FMD).


The farm ministry said 142 cases of the highly contagious disease have been reported nationwide so far, including an outbreak in Hongseong, 150 kilometers south of Seoul, late Tuesday, after the first outbreak was confirmed on 29 November.

It said that while nationwide vaccinations were ordered for all 13 million heads of cattle and pigs in the country, with inoculations administered from Dec. 25 onward, the outbreak is estimated to have caused damage exceeding a minimum 1.5 trillion won (US$1.34 billion), although the number could easily exceed the 2 trillion won mark.

The government has destroyed a total of 148,000 heads of cattle, 2.87 million pigs and over 7,000 goats and deer as the disease has spread across six provinces and two large cities.

Quarantine experts said that because so many people will move around the country during the three-day-long Lunar New Year holiday that runs through Friday, there is a risk of people inadvertently spreading the highly contagious animal disease.

Meat Industry Faces a Squeezed Middle Market
The meat industry faces three separate challenges – increasing and maintaining margins, accommodating greater uncertainty in the business environment and responding to market segmentation, writes Chris Harris,Editor in Chief.

This was the message from Professor Phil Thomas, chairman of the Quality Meat Scotland R&D committee at the Quality Meat Scotland R&D Conference in Perth.

He said the global meat industry will have to face up to the needs of a growing global population – expected to reach nine billion by 2050 – as well as the problems of climate change.

The food industry also has to face up to the challenges of national and international food security, diet and health issues, land use and energy shortages as well as the diminishing mineral reserves and global economic problems.

Professor Thomas said that the future prospects for agriculture look challenging particularly in the red meat sector.

However he said that these challenges are also great opportunities for the meat sector.

"Individual businesses and the industry as a whole will therefore need to grasp the opportunities and address the challenges," he said.

He said the industry could not afford to hold on to the status quo.

The sector will find that it will have to find answers to many different questions using existing and new technologies, improved efficiency, reduction of waste and an ability to innovate.

He said among the challenges will be the cost and availability of energy in "all shapes and sizes".

"Bioenergy has its positives and its negatives," he said.

"You can grow for it but it takes land to grow for it and all along the way governments will intervene."

The main influences on a changing food and agricultural system will be both population growth and climate change and, Professor Thomas said, that while climate change is not going to be felt so dramatically in the northern hemisphere, its impact is going to be felt in regions from the equator outwards.

He also warned that food prices that saw a global peak in 2008 could see another peak this year as cereal and oil prices rise.

However, while cereal and oil prices could reach new high levels, the prices for meat will not peak to such a degree.

"This is because in underdeveloped countries the populations turn from meat to cereals in hard times," he said.

The scenario in the developed nations such as Europe will be different, because there is a small number of buyers in the middle between the large numbers of food producers and the large numbers of consumers.

This dynamic of the market will mean that there will be a growth in the low end products and a growth in the high-end products, but the middle markets will be squeezed.

Professor Thomas told the conference that with a squeezed middle market meat producers will have to find their area of sales either at the top end or the low commodity end as the market polarises.

January 2011

Tuesday, February 01, 2011Print This Page
US Ethanol Policy Blamed for High Feed Costs
CANADA - A market analyst with the Guelph, Ontario based George Morris Centre suggests US policies surrounding ethanol are the biggest factor driving up feed costs in North America, writes Bruce Cochrane.




Farm-Scape is sponsored by
Manitoba Pork Council and Sask Pork
 
In October the US Department of Agriculture released a report which indicated grain supplies and grain quality and yield where much lower than originally thought and in January USDA confirmed that stocks heading into 2011 are near record lows.

Kevin Grier, a market analyst with the George Morris Centre, suggests that report and confirmation of the low supplies coupled with strong export demand and in particular ethanol demand caused prices to sky-rocket and we're probably looking at record high grain prices throughout 2011.

Kevin Grier-George Morris Centre
First and foremost the direction of the prices is driven higher by ethanol.

In 2011 it's conceivable that ethanol will burn up more of the corn crop than will be consumed by livestock and poultry and it's a case of ethanol becoming a run away train.

I don't think anybody anticipated that we'd get to a situation where ethanol uses up more corn than the livestock industry so in an of itself that is the single reason why we've got this out of control grain price situation.

Our crops in 2010 were near record large so we need to continue to have record large crops in order to feed the ethanol beast which is again fueled by subsidies, tariffs and mandates.

It's an extraordinarily artificial pricing situation but the reality of it is it's driving livestock producers out of business.

Mr Grier says the American situation has gone so out of control on ethanol that we now have a feed cost advantage in western Canada and in Eastern Canada, which is a positive.

He suggests producers across Canada need to lobby the government to make sure Canadian ethanol policies do not go as out of whack as the Americans and drive up feed costs further in Canada.

Tuesday, February 01, 2011Print This Page
Market Preview: Time a Factor in Pork Puzzle
US - In this week's Market Preview from National Hog Farmer, Steve Meyer writes about how time is a common denominator in the pork supply and demand puzzle.


When will consumers back away from high-priced pork? That’s a question that I have heard frequently the past few weeks. It comes mainly from producers who see today’s $100/cwt., carcass, quote on June futures and wonder just how much retail price pressure their ultimate customers will withstand. I’m sure packers and processors are thinking the same thing as they see their potential hog costs rise steadily.

The answer, as with most economic matters, is “it depends.” It depends on the reason for higher prices, the prices of substitutes, consumers’ income levels, and their propensity to spend money on food, in general, and meat and pork in particular.

Prices can rise for many reasons, but they basically fall into two well-known categories: supply issues and demand issues. Isn’t that a shocker?



Figure 1Supply issues generally focus on productivity and production costs and depend on the prices of inputs, technology, management, health and a host of other factors. When costs rise, supply decreases. That is – the quantity that producers are willing and able to sell at each alternative price gets smaller. The supply curve shifts up and to the right as Figure 1 shows. When this happens, lower output is the reason for higher prices.

Supply-driven prices and lower consumer purchases are the flip sides of the same coin. Falling supply forces consumers to back off from the product, so the question about when they will back off is really not appropriate.

This decline of output in the face of higher prices is a primary reason that “cost-push inflation” cannot last long. The quantity of output simply gets smaller and smaller as the cost rises.



Figure 2The other reason that prices increase is an increase in demand that causes “demand-pull inflation.” In this case, prices rise, but output increases over time (assuming the supply curve is steady) as in Figure 2. Such an increase can be caused by a shift of consumer preferences, higher incomes, higher propensities to spend money on the commodity in question or a shift in relative prices.

But Figures 1 and 2 leave out something important – time. None of this happens instantaneously. It takes time for supply to change in response to a change in input prices or technology or disease. Likewise, it takes time for consumers to react to a change in income or a recession that rattles their confidence in the future and, thus, their willingness to part with cash or even a change in the price level of the good in question.

In my opinion, we saw the direct impact of cost-push inflation in 2009 and the first half of 2010. Pork output fell because producers had reduced the sow herd in 2008 and 2009 as costs exploded. In addition, poor quality corn (sort of a “reverse technology” impact) caused poor performance and lighter slaughter weights, restricting output even further. Retail prices began climbing in January 2010 and hit a new record in May. That record was followed by five more records through October before higher output (primarily due to heavier hogs driven by much better corn quality last fall) caused prices to fall in November and December.

But now we are looking at about the same level of pork output for 2011 – likely higher the first half of the year and lower in the second – but record-high futures prices. Equal output, growing exports and higher population do add up to lower per capita pork supplies, but projections for this year are not large enough to drive hog prices 15-20 per cent higher.

Demand is the Driver
The November demand index was 14 per cent higher than one year earlier, indicating that the green demand line in the figures has moved significantly up and to the right. November demand indexes for beef and chicken, while not as positive as that of pork, were up sharply, as well, suggesting that this is more than just a pork phenomenon. It now looks like the meat protein market, in general, has improved. Perhaps consumers’ attitudes and spending are doing better than other data are indicating.

And it appears this may go on for a while. Beef prices are rising and will almost certainly hit new records this spring and summer. Chicken companies have slowed their expansions and will have to push their prices higher to cover the latest round of cost increases. As beef and chicken prices rise, pork will be relatively cheaper, which means consumers who may have found it too expensive so far may rethink that decision.

I’m not terribly worried about consumer push-back on high pork prices. A recovering economy, a relatively weak US dollar and falling supplies of two major competitor products will all be supportive to demand. And output this year is going to be about the same as last year. Consumers will buy what we have available in the United States and other factors may dictate that they continue to pay record or near-record prices for the pork available in 2011.

Congratulations Steve!
NB: Steve Meyer received the 2010 Master Pork Producer Award from the Iowa Pork Producers Association during their annual banquet. In addition, his Economic Outlook seminar, sponsored by National Hog Farmer, drew a full house and was the top-rated seminar at the Iowa Pork Congress held in Des Moines last week.



As published in National Hog Farmer's Weekly Preview.

Tuesday, February 01, 2011Print This Page
2010 Pork Exports Up in Volume, Value
BRAZIL - Pork export volumes in both November and December 2010 made double-digit declines compared to the same months of the previous year. For the year as a whole, exported volume was 11 per cent higher than the year before and the US dollar value of those sales was up more than nine per cent.


According to ABIPECS, Brazil exported 43,008 tons of pork in November 2010, which is 18.8 per cent less than the same month last year. The average price per ton in US dollars – $2,677 – was 22.9 per cent higher than the same month last year. The value of November's sales was US$115.1 million, just 0.3 per cent lower than the same month in the previous year.

The figures for December exports also show a drop in volume (-16.9 per cent compared to the same month in 2009) at 35,528 tons. Despite the average price in US dollars being 19.5 per cent higher than a year before at $2,588, the value of the month's exports was down marginally (0.70 per cent) compared to December 2009 at just under $92 million.

For the calendar year of 2010, pork exports were down 11.0 per cent to just over 540,418 tons, compared with 607,490 ton for 2009. The value of 2010 sales was $1.341 billion, which is 9.3 per cent higher than in 2009 ($1.226 billion). At $2,481 per tonne, the average US dollar price per ton of the 2010 sales was 22.9 per cent higher than in 2009, when the average stood at $2,019.

Tuesday, February 01, 2011Print This Page
Animal Husbandry Makes Significant Progress
CHINA - During the Eleventh Five-Year Plan period, animal husbandry has made significant achievements in ensuring effective supplies of meat, eggs and milk and improving quality and safety of feed and animal products.


In addition, safety and improvement of ecosystems were achieved as well as steady and sustained momentum of development in general, according to the Ministry of Agriculture.

Regarding sustained growth of animal production, it is expected that the production of meat, eggs and milk would be 78.50 million tons, 27.60 million tons, and 37.40 million tons, respectively, or an increase of 13.1 per cent, 13.2 per cent and 31 per cent, respectively, compared with 2005. Effective supplies for markets have been ensured. Currently, the country's per-capita availability of meat is 58.8kg, which is higher than the world average, and that of eggs is 20.7kg, which is higher than developed countries.

On the development of large-scale and standardised animal farming, it is expected that in 2010, large-scale pig farms with over 50 head sold and dairy cow farms with population of more than 20 animals would be 66 per cent and 47 per cent of the total, respectively, or an increase of 29 and 20 percentage points, respectively, compared with 2005. The share of mechanised milking accounts for 87 per cent or 47 percentage points higher than 2005. More feed manufacturing enterprises have been concentrated. Grassland animal husbandry has improved its production practices. For example, now there are over 40 million animals under shelter feeding instead of natural grazing.

On improved animal breeding systems, it is said that to implement the state animal reproduction and breeding programmes, the central and local governments have invested more than five billion yuan in total in rebuilding or expanding seed stock and poultry farms, resources preservation farms and quality testing centres for seed stock and poultry. Up to now, on the basis of these farms and centres, reproduction and breeding systems for quality breeds have come into being.

On the quality and safety of feed and raw milk, the statement says that in 2010, the acceptance rate of feed products from spot-check is up to 93 per cent or four percentage points higher than that of 2005. No clenbuterol has been found for five consecutive years, and the acceptance rate of animal products from regular inspection is over 99 per cent. The Ministry of Agriculture (MOA) has organized to implement the national safety supervision plan of raw milk and carried out blanket inspection of raw milk purchasing stations and key areas. Thanks to such efforts, the acceptance rate of raw milk from melamine inspections has been 100 per cent for tow consecutive years.

Remarkable achievements in preservation and improvement of grassland ecosystems, it is stated. The central government has spent a total of 16.482 billion yuan on preserving grassland ecosystems or an increase of 51.4 per cent compared with the Tenth Five-Year Plan period. To introduce systems for protecting basic grassland, balanced development of grassland and livestock as well as for grazing ban, rest and rotation grazing, we have vigorously implemented major projects for improving grassland ecosystems and herdsmen life such as projects of grass for grazing, control of sand storm sources and grassland management in Beijing and Tianjin areas, and resettlement of nomadic herdsmen.

During the Eleventh Five-Year Plan period, animal husbandry has made significant achievements in five aspects as follows: first, establishment of policy framework for supporting animal production; second, setting up of regulation mechanisms for stabilized industrial development; third, qualitative leap made in animal production practices; fourth, further improved control systems for quality and safety of animal products; and fifth, important breakthrough in protection and development of grassland.

Japanese feedstuff manufacturer cuts corn in animal feed 26 Jan 2011
Chubu Shiryo Co Ltd, a leading Japanese feedstuff manufacturer, has started making some animal feed with less corn as the price of corn continues to rise, a company official said on Monday.

According to Reuters, the official said that the move will not immediately affect the volume of Japanese corn imports, though this could change when the company starts reducing corn volumes in a broader range of feeds.

Chubu Siryo started feed shipments for egg-producing chickens this month, with the use of corn cut from 50% to 30%, the average mix in compound feed for chickens in Japan, the official said. It plans to extend the move to feed used for pigs as well, although the official declined to set a timeframe for this.
 
The company increased the proportion of alternatives, primarily corn meal and wheat bran, without damaging the nutrition quality, helped by a processing technology the company has developed to improve the cost of processing feed from meal, he said.
 
"Our improved processing facility has enabled us to beef up the recycling of meal, which hadn't been done previously, as a way to contain the cost of rising corn prices," the official said, adding that the company aimed to eventually reduce the use of corn to around 10%.
 
Japan's annual compound feed output is about 24 million tonnes. About 40% of compound feed is for chickens and 25% for pigs.

Taiwan not obliged to review ractopamine ban 24 Jan 2011
There is currently no need for Taiwan to revise its ban against a residue of ractopamine being used as drug to promote leanness in farm animals, Council of Agriculture Minister Chen Wu-hsiung has said.

The authorities in Taiwan recently detected small amounts of residue from a banned muscle-growth drug in beef imported from the United States.
 
The discovery raised public concerns on the island despite the US not restricting the use of the drug, commercially known as Paylean.
 
Four drugs blacklisted
Paylean contains ractopamine, one of four animal-use drugs along with salbutamol, terbu-taline and clenbuterol, which are blacklisted in Taiwan.
 
It was the first time banned drugs had been detected in US beef since Taiwan re-opened its doors to American beef in 2007, after suspending imports of the product over mad-cow disease worries.
 
"Taiwan's existing law prohibits the use of any leanness drugs," Chen said, noting that the law applies to both imported and locally-produced meat products.
 
Codex Alimentarius
Speaking of the plan by the United Nations-linked group - Codex Alimentarius Commission - to amend its regulations on the permitted amount of leanness drug residue on meat products, the minister said Taiwan will not review its leanness drug ban until Codex makes changes.
 
According to Chen, under WTO regulations, all its members must follow Codex guidelines. Those unwilling to follow them have to present a risk evaluation and convince other countries to accept it.
 
Ban on leanness drugs
Health Minister Yaung Chih-liang repeated his office's insistence of keeping its ban against the use of leanness drugs.
 
He said his office will try to coordinate with the United States, asking the latter not to sell beef containing the residue of leanness drugs to Taiwan.
 

Jamaica in search of alternative feedstock 24 Jan 2011
Government is exploring alternative feedstock as part of a programme aimed at combating volatile food prices, says Agriculture Minister Dr Christopher Tufton.
Tufton made the revelation as Jamaicans brace for higher food prices due to soaring cost of grains on the international market which is expected to impact the cost of feeds used in the production of diary, poultry, meats and eggs.
 
"Where we have to go is, to take a look at alternative feedstock - cassava, for example, that can be pelletised to make poultry feed and pig feed; different types of grass that can be used for beef or production cattle rearing and small remnants rearing," Tufton told the Business Observer.
 
"That's where we have to focus our attention in order to say, instead of requiring 'x' amount of grain, we can cut back and substitute it with other things," he explained.
 
Not enough land
Tufton ruled out directly replacing the imported grains with local produce, noting that Jamaica does not possess the critical mass needed to grow corn and soybean.
 
"The mass acreages that would be required is just not available to grow for commercial use - further processing for feedstock for example," stated Tufton, adding that "We'd have to grow corn on (land) the size of Jamaica to compete with those countries that grow the product...The challenge now becomes therefore whether we need to depend on corn so much for the basis of our feedstock."
 
The agriculture minister said that Government has been doing a lot over the last couple of years in this regards and has seen declines in the food import bill in terms of volumes.
 
He noted that the administration in 2011 will focus on a number of crop areas where the country can have direct replacements both in terms of production and in terms of storage or value-added promotion.