Friday, May 11, 2012
Pork & Chicken Producers Assure Steady Supply
PHILIPPINES - The hog and chicken raisers said that there is no shortage in the supply of pork meat, saying even the Department of Agriculture and Palace earlier claimed that there is enough supply of pigs and chicken for local markets.


According to The Manila Times.net, Rosendo So, chairman of Abono party-land convenor of the Swine Development Council also belied allegation that the sector is out to blackmail the government for threatening to hold a five-day pork holiday if it does not make good of its commitment to address the problem of rampant smuggling of meat.

Hog and chicken producers also lashed back at “unnamed” leaders of the Alliance of Food Processors for accusing them of economic sabotage.

The group in a statement said that the illegal importation of misdeclared meat is threatening the livelihood of backyard farmers and agricultural workers in allied trades.

“We want to protect the interest and survival of the local hog and poultry industries which are facing extinction (because of) unabated smuggling of pork and chicken by unscrupulous importers,” said Mr So.

“We implore the government to go after unscrupulous importers who are engaged in technical smuggling. We are neither blackmailing the government nor are we engaged in economic sabotage,” he added.

So also said that it is the crooked importers, in connivance with the corrupt customs and agriculture personnel, who are the ones sabotaging the economy because they do not only deprive the government of billions of pesos in revenues, but they also causing the collapse of the local growers, including the allied industries.

“Accusing us of engaging in economic sabotage is not only unfair but uncalled for. We just want to protect the local industries from unfair trade practices of unscrupulous meat importers. They are the real economic saboteurs,” he said.

So also noted that the government has been losing P3.7 billion in annual revenues due to technical smuggling of pork and chicken where unscrupulous importers misdeclare their importations to avoid paying higher tariff of 40 per cent.

“The illegal importation have killed 20 per cent of the P25-billion backyard industry and not paying the proper tariff to the government,” So pointed out.

On his part, Customs Commissioner Ruffy Biazon said that the bureau has now on alert status over the importations of frozen food.

Mr Biazon, who attended the recently concluded Hog Raisers Convention in Cebu City, assured the bureau’s all out efforts to curb frozen food smuggling, particularly meat.

He said that all BOC operating units will closely monitor and/or conduct full examination on all frozen food importations, even as he also ordered a review of the records of the country’s past frozen meat importations.

“We are now going through the past records of importations of the country’s top ten food importers to check whether all their importations were covered with the required import permits from the Department of Agriculture [DA], or whether these importers did not import beyond the approved volume granted to them by the DA,” Mr Biazon said.

Biazon said that he is not discounting the possibility of connivance among customs officials, officers of other agencies involved in the regulation of the country’s meat importation and importers.

Friday, May 11, 2012
Slight Drop in Chinese Farm Produce Prices
CHINA - The prices of major farm produce monitored by MOFCOM saw a slight drop last week (30 April - 6 May) and that of materials for production fell in three consecutive weeks.


The retail price of egg dropped 0.5 per cent over the previous week, 9.3 per cent percentage lower than that of the beginning of this year. The retail prices of egg in Beijing, Xiamen and Tianjin saw a decrease of 15.1 per cent, 14.4 per cent and 14.4 per cent than that of the beginning of this year.

The wholesale prices of meat fell, of which pork continued to fell, 0.8 per cent lower than that of the previous week, and 14.7 per cent lower than that of the end of January.

The price of pork was 18 yuan per kilo in Beijing, Shanghai and Chongqing, 24.1 per cent, 23 per cent and 19.9 per cent lower than that of the end of January. The prices of chicken dropped 0.1 per cent while that of beef and mutton rose 0.3 per cent and 0.1 per cent respectively.

The prices of grains and oil maintained a steady growth, of which peanut oil, soybean oil, wheat flour and rapeseed oil rose 0.3 per cent, 0.3 per cent, 0.2 per cent and 0.1 per cent respectively, while that of rice remained unchanged.

The wholesale prices of eight aquatic productions rose 0.9 per cent over the previous week, with an accumulative increase of 2 per cent in three weeks, of which carp, grass carp and silver carp rose 2.4 per cent, 2.3 per cent and 1.1 per cent over the previous week.

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.

Friday, May 11, 2012
Pork Exports Post Strong First Quarter Growth
US - US pork exports finished the first quarter 8 per cent higher in volume (598,058 metric tons) and 20 per cent higher in value ($1.66 billion) than last year’s record pace, according to statistics released by the USDA and compiled by the US Meat Export Federation (USMEF).
 

March pork export volume of 198,972 metric tons was 8 per cent lower than a year ago, but up 6 per cent from February 2012. Export value of $570.5 million was 3 per cent higher than last year and up 8 per cent from the previous month. These results were led by excellent growth in the China/Hong Kong region and by strong performance in Mexico, Japan and Canada.

“A 20 per cent increase in pork export value for the first quarter is extraordinary, especially considering the record performance of last year,” said USMEF President and CEO Philip Seng. “On the beef side, market access issues and price sensitivity are making volume growth difficult in some markets, but we are pleased to see export value remaining above last year’s record pace, even on smaller volumes.”

Pork export value per head sets new monthly record
March pork export value was particularly strong on a per-head-slaughtered basis, reaching $59.92. This was nearly $4 higher than a year ago and set a new monthly record, surpassing the previous high of $59.53 set in November 2011. Exports equated to 27.8 per cent of total US production of muscle cuts plus variety meat, and 24 per cent when including muscle cuts only.

Mexico remains the leading market for US pork on a volume basis, with first quarter exports up 17 per cent in both volume (162,721 metric tons) and value ($299.7 million). Exports to Japan, which nearly reached the $2 billion mark in 2011, were up just 1 per cent in volume (122,899 metric tons) but also achieved a 17 per cent increase in value to $530.6 million. Exports to the China Hong/Kong region, which came on very strong in the second half of 2011, were 30 per cent higher in volume in the first quarter (115,642 metric tons) and surged 82 per cent in value to $234.9 million.

Other first quarter market highlights included:

Exports to Canada were up 26 per cent in volume (55,916 metric tons) and were one-third higher in value at just under $200 million.


In Russia, where US pork now has better potential for expansion under a global tariff rate quota, exports were up 20 per cent in volume (15,510 metric tons) and 36 per cent in value ($47.9 million).


Led by a strong performance in Colombia, exports to the Central and South America region expanded 9 per cent in volume (20,603 metric tons) and 16 per cent in value ($53.5 million).
In South Korea, pork exports surged in the early months of 2011 because of culling of the domestic swine herd (due to foot-and-mouth disease) and a temporary duty-free tariff rate quota for some cuts of imported pork. Consequently, year-over-year exports to Korea were lower in the first quarter of 2012 – down 27 per cent in volume (53,590 metric tons) and 12 per cent in value ($154 million). It is important to note, however, that these totals were still more than double the volume and triple the value recorded in the first quarter of 2010.

“While domestic supplies are recovering in Korea, we are still creating new opportunities for US pork.” Mr Seng said. “The lower tariffs made possible by the Korea-US FTA will enhance the competitiveness of US pork in terms of price, and help us further expand the presence of chilled pork and value-added pork products in the retail and foodservice sectors. These marketing strategies have proven very effective in Japan, and I believe we can have similar success across north Asia.”

Friday, May 11, 2012
CME: Farmers to Harvest Record Corn Crop
US - According to the latest USDA supply/demand update, US farmers this fall will harvest the largest corn crop on record, write Steve Meyer and Len Steiner.


Between a 6.1 per cent increase in harvested acres (5.1 million acres more than a year ago) and a 12.8 per cent increase in expected yields (18.8 bu./acre higher than in 2011), US corn production for the 2012/13 marketing year is now pegged at a record 14.790 billion bushels. This is 2.432 billion bushels or 20 per cent larger than a year ago and about 1.75 billion bushels larger than the previous record year output in 2009/10.

USDA was quite aggressive in its estimates for the new corn crop but its data follows established methodology whereby USDA analysts account for crop progress so far this year and adjust their trend yields accordingly. With planting progress well ahead of schedule so far this year and weather forecasts indicating that the La Nina weather pattern is coming to an end, USDA now expects above trend yields this coming fall. Some analysts continue to wonder how realistic this assumption is.

The sharp expansion in corn plantings has brought more marginal and lower yielding acres into the mix. While US farmers have approached current yield estimates in the past, indeed yields were 165 bu./acre in 2009/10, that yield was from planting 86.4 million acres, compared to 95.9 million acres this year. It would appear to us that for current yield estimates to materialize, a lot of things need to be just right for this year’s corn crop. So far things are shaping up well but Mother Nature still holds all the cards.


One surprising twist in the supply and demand table was that USDA also increased projected ending stocks for old crop corn. This ran counter most analysts estimates who were expecting old crop ending stocks at around 750 million bushels, compared to the 851 million bushels that USDA reported. USDA reduced feed consumption estimates for this summer as more wheat is currently going into livestock and poultry feed.

USDA also did not change its estimates for US corn exports despite much talk in the trade of large shipment to China and other destinations. Demand estimates for the new crop were equally interesting and different from what private analysts were contemplating ahead of the report. USDA sharply increased US corn feeding estimates in the new crop year, projecting feed and residual use at 5.450 billion bushels, about 900 million bushels or 13.7 per cent higher than a year ago. This feeding level would imply a notable decline in wheat feeding, as corn / wheat spreads widen and also expansion in livestock and poultry numbers.

With the calf crop declining in the next year, cattle feed demand will remain limited, and likely will contract. Some hog expansion is expected but, based on current farrowing estimates into year end, it is unlikely we will see more than a 1 per cent increase in hog numbers at least through Q1 of next year. Maybe the broiler industry will make a sharp U-turn and expand rapidly. There are some indications that broiler supplies will recover by Q4. Lower corn prices certainly are an inducement but keep in mind that for poultry producers, soybean meal prices are very important, accounting for as much as 30 per cent of the broiler ration.

Soybean meal prices have increased sharply in recent weeks and are expected to stay high into next year as well. But even as some analysts think the feed estimates overstate the case for demand next year, they also believe the current USDA export estimate may be on the low side, especially if Chinese producers fail to produce another record crop. A potential increase in exports could offset lower feed numbers. USDA now expects the stocks/use ratio to double in 2012-13, pushing prices in the $4.5/area.

Jobs Go as Plants Close of Lean Finely Textured Beef

ANALYSIS - The media furore over the use of lean finely textured beef in beef products in the US took its most severe and possibly final toll this week as the company at the forefront of the debate was forced to close three of its plants.

Beef Products Inc had been promoting the safety and nutritious value of the products at the American Meat Institute Expo in Dallas.
 
The exhibition and conference also held a special seminar session to show to the media and the exhibition visitors that the product was safe.
 
However, the pressure of the campaign against the product that has resulted in many organisations, food service outlets and retailers demanding its withdrawal from their products has forced BPI to close its plants in Amarillo, Texas, Garden City, Kansas and Waterloo, Iowa with the loss of 650 jobs.
 
A plant in South Sioux City, Nebraska, will stay open but run at reduced capacity.
 
Iowa Governor Terry Branstad said: “The fact that a false, misleading smear campaign can destroy a company’s reputation overnight should disturb us all.
 
"My office will never stop fighting for every single job in this state, and I continue to hope that as consumers learn about this safe, healthy and lean product, they will understand what a great product lean, finely textured beef truly is."
 
In Brazil, meat processing giant JBS SA is to lease the assets of Brazilian poultry processor Frangosul, a company controlled by the French group Doux.

JBS said the move is another step to become the largest producer and meat processor in the world.
 
The company is already the second largest operator in the global poultry segment.
 
Under the agreement signed, JBS said it will not assume any pending, charges, restraint, seizure or inability of any other nature.
 
This is a lease asset and JBS said it will hire all current Frangosul employees and continue all contracts with the integrated service providers and third parties.
 
With this new Brazilian chicken operation, JBS will boost its production capacity by 15 per cent to approximately nine million birds per day.
 
A new report from the agri-business analysts, Rabobank, has linked the price of pork in China to the movement in the Consumer Price Index.
 
The report "Is the CPI the China Pork Index?" says that "a large portion of the China food CPI is due to pork’s large share in the CPI basket and its high price volatility".

 Chris Harris, Editor-in-Chief

Food Outlook – Meat and Meat Products
Global meat markets in 2012 are expected to see a recovery of supplies in traditionally importing countries and strong competition for markets, according to the latest Food Outlook report from FAO. Near record prices are constraining consumption growth.

Meat Prices Hover at Near–Record Levels
Global meat markets are likely to face heightened trade competition in 2012, at the same time that recovering meat production in Asia is set to dampen growth in global import demand. Overall, meat trade is expected to expand by two per cent, to 29.2 million tonnes, much of which is anticipated to be taken up by developing country exporters, which could increase their share of the global trade to 44 per cent.

Disease outbreaks in 2011, drought–reduced cattle inventories and high feed costs sustained international meat prices to near record levels in the first quarter of 2012. In April, the FAO meat price index edged up to 182 points, surpassing the record 181 points registered in November 2011.



Variable feed prices influence pork and poultry price movements



World meat market at a glance
Indications of slowing import demand, especially for pig and poultry meats, portents a potential moderation of meat prices in the coming months, which, along with high feed costs, is raising concern about the profitability of the meat sector in 2012.



Beef prices strong while easing feed prices translate into lower pig meat and poultry prices
Pig Meat
As disease concerns in Asia abate, the pig meat sector is poised for a quick recovery
After last year’s drop, global pig meat production is expected to rebound by 2.6 per cent in 2012 to 111.7 million tonnes, underpinned by gains in Asia due to reduced incidence of disease. In the region, policy support, growing investments and favourable market returns, particularly in China, are behind an anticipated four per cent expansion in the region’s output to 62.8 million tonnes. The sector may also recover in Japan, following a rebuilding of sow inventories and a return to normal piglet births in provinces affected by the nuclear fallout in 2011. Investments in breeding and feed industries in Viet Nam will support output growth, while a rebuilding of FMD-depleted inventories in the Republic of Korea is stimulating a 20 per cent production recovery.

In South America, high beef prices are indirectly supporting the expansion of the pig meat sector in Brazil, Chile and Colombia while, in Argentina, sporadic restrictions on pig meat imports from Brazil are creating incentives for investment. The recognition of Mexico as free of classical swine fever has opened new market access opportunities which, combined with investment in new breeding lines, supports an increase of the country’s production and exports in 2012.

Anticipation of new EU environmental regulations that will become effective in 2013 has catalysed a restructuring and concentration of hog operations that may translate into fewer pigs and lower production in 2012.

Despite tight margins, a shift by consumers in North America from beef to lower priced meat products is expected to strengthen demand and translate into higher production. Investment–driven gains in the Russian Federation are foreseen to boost production by five per cent despite persistent occurrences of African swine fever.

Pig meat trade may decline in 2012 as Asian import demand falters
After witnessing double-digit increases in Asian import demand in 2011 due to its disease-reduced output, improved production in the region is forecast to result in global pig meat trade falling to 7.0 million tonnes in 2012.

Reduced purchases by China, the Republic of Korea and Japan, amid large supplies, underlie this expected contraction. This is despite the expected ratification by the Russian Federation of the WTO accession treaty later this year and the signing of a free trade agreement between the Republic of Korea and the United States. It is clear that the Russian Federation will only ease restrictions on pig meat imports when it officially joins the WTO in mid-2012. Until then, imports by the country will be negatively affected by a reduction of its tariff-rate import quota from 470,000 tonnes in 2011 to 400,000 tonnes this year, which may result in smaller pig meat purchases.

By contrast, imports by Chile, Colombia, Mexico and Uruguay look set to increase, while Argentina’s “off-and-on” restrictions on imports of Brazilian product may lower deliveries to the country.

Declining trade prospects in 2012 set the stage for considerable competition among the major exporters – the United States, the EU, Canada and Brazil – which together account for nearly 90 per cent of global trade. Lingering Russian restrictions on imports of Brazilian products may contribute to lower exports from Brazil in 2012, while benefiting smaller international suppliers, such as Chile and Mexico, but also the United States and Canada.

Tuesday, May 08, 2012Print This Page
Pork Commentary: N American Market Languishes
US & CANADA - "There’s not much good news in the North American Swine Market, usually by this time of the year hog prices start to move rapidly higher – this year not yet!" writes Jim Long.


Jim Long is President &
CEO of Genesus Genetics.
The US National Daily 53 – 54 per cent lean hogs were under 80 cents per pound at the end of last week. Since the first of the year as the table below from Iowa State University it’s been a mugs game being a hog producer. This chart only goes to the end of March but since then nothing has happened in hog prices or costs to make it look any better.

Summary of Iowa Swine Budget
(US$/pig, Farrow to Finish, 270 lb pig, live wt)
  JAN FEB MAR AVG
Value of Market HOG $172.12 $177.20 $175.19 $174.84
Feed Cost $115.46 $115.40 $115.55 $115.47
Other variable Costs $44.44 $44.63 $44.69 $44.59
Fixed Costs $14.23 $14.23 $14.23 $14.23
Total Costs $174.13 $174.26 $174.47 $174.29
Net Return -$2.02 $2.96 $0.72 $0.55

Bottom Line: Trading dollars is no fun. We sense over the last few weeks what optimism there was in the hog market has waned. We expect that the enthusiasm that some had to build new sow units will be quite tempered. The producers left in this industry are survivors of too many hog cycles. As one pork industry executive put it ‘The women and children are dead, only the warriors survive.’

The flip side to the lack of swine farm profitability has been the massive equity growth in farmland values. Our farmer arithmetic calculates the 305 million crop acres – USA in 2011 with an estimate of farmland appreciation of $1000 per acre = $305 billion in appreciation – cut it in half = $150 billion. Either number is a massive creation of paper wealth. Whether it will be ever realized in cash is not that relevant, the feeling of wealth, borrowing power, and balance sheet strength and the profits from high grain prices is backstopping many in current hog operations.

The farmland equity surge is contributing to contract finishing barns being built in the mid west. Paybacks are not as good as they used to be, but when coupled with the fertilizer value of manure it is enough to get several barns built.

Canada like the US is seeing similar farmland value increases. Farm Credit Canada (FCC) is the farm primary lender in Canada. FCC recently released a farm value report. Current values reported indicate that the positive trend continues. Farmland values increased an average of 7.4 per cent January to June of 2011. July to December values continued to rise by 6.9 per cent. This continues the 10 year trend of steadily increasing farm values.

This profitability of grain and oilseed production we have seen globally is reflected in the crop planting intentions in Canada.

Thousands of Acres
  2011 2012
All Wheat 21,464 24,324
Canola 18,862 20,372
Barley 6,472 7,968
Soybeans 3,830 3,969
Corn 3,009 3,562
Oats 3,109 3,393
Dry Field Peas 2,328 3,310
Lentils 2,570 2,460
Flaxseed 695 1,040
Total 62,339 70,398

The totals indicate about 7 million more acres of crop to be planted in Canada in 2012 than 2011. There is more wheat, canola, barley, soybeans, corn, oats, peas, and flaxseed – more, more, more.

Where are the acres coming from? In 2011 12,410 million acres were summer fallowed. Most do to extremely wet conditions that kept land from being planted. In 2012 summer fallowed acres are estimated to be 3.970 million. There is a 7 million acre difference in crop intentions. So far this year Canada’s plantings are ahead of most years. In most commodities more supply usually means lower prices. Lower grain prices would certainly help swine cost of production be lower.

Summary
It doesn’t take a Rocket Scientist (or an economist) to know the hog industry is trading dollars. Hog prices of 80 cent lean and corn over $6.00 does not equal profits. It appears that the crop plantings in the US and Canada are getting in fast and with more total acres going to be planted. There is a real possibility of much lower feed prices in the fall. Until then it’s hang on and hope for a seasonal hog rally. It’s not too late but it better get started soon!


Author: Jim Long, President & CEO, Genesus Genetics 

Tuesday, May 08, 2012
Brazil's Soybean, Corn Feed Prices Head Higher
ANALYSIS - Informa Economics FNP said severe weather and crop failures in south Brazil and increased consumption demand are driving up corn (maize) and soybean meal costs, putting pig and poultry farmers on alert, writes Sarah Mikesell, senior editor.

Ariovaldo Zani, executive VP of Brazil’s National Animal Feed Industry Association, Sindirações, said feed production this year will increase by 3.0 to 3.5 per cent. Feed costs account for about 60 per cent of Brazilian pig and poultry producers’ total production cost.

“The Brazilian animal feed industry depends on the food industry which, in turn, is modulated by domestic and international consumer demand,” Brazil’s National Animal Feed Industry Association said in a statement.

Soybean meal and corn account for about 80 per cent of the feed consumed by poultry and pigs in Brazil.

According to the Association, last year, 66 million tons of feed were produced, with 37.8 million tons going to poultry farms and 15.4 million tons going to pig farms. On poultry farms, 61 per cent of the feed is made up of corn and 25 per cent soybean meal, while pig feed is made up of 68 per cent corn and 16 per cent is soybean meal.

Brazil’s Corn, Soybean Markets
Informa Economics FNP believes the area planted with summer corn and soybeans for 2011/12 was up by 5.3 per cent year on year but because of the serious drought in south Brazil, production will be down about eight per cent versus the previous season. The US Department of Agriculture (USDA) has estimated an 11 per cent soybean production reduction in southern Brazil due in large part to the La Niña weather phenomenon.

For corn, the average productivity in the southern region will be much lower than last season and even less than the average of the last 10 years which will increase the dependence on the winter corn crop, said Aedson Pereira, Information Economics FNP analyst.

Winter corn areas are expected to increase but it is too early to predict if that will equate into larger production. Zani expects winter corn can make up the difference and anticipates no issues.

Brazil’s summer production will be 36 million tons in the 2011/2012 harvest, which is up 0.2 per cent over year ago, said Informa Economics FNP. This slight bump in production was the result of other regions of Brazil significantly increasing production levels.

“The numbers give the impression that competition for corn will be strong this year,” said Pereira. “The most optimistic scenario at Informa Economics FNP indicated production of 298 million tons on an area of 6.8 million hectares.”

Growth Opportunity
Expansion of soybean area in the Center–West and Northeast regions has been occurring at a very fast pace on the heels of high commodity prices and mainly through land lease contracts of abandoned farms and/or degraded pasture–lands, says the USDA GAIN report.

Possessing 20 per cent of the planet’s fresh water, Brazil also has tremendous potential to expand planted area via irrigation projects that make possible second and third crops rotated over a yearly growing season. Recent historically high crop prices have greatly improved the time–frame for return on investment with the main constraints being water use licences and capital investment requirements.

Large irrigation project investments are increasing soybean planted area and are made possible through rotating cash crop production – wheat, edible bean, cotton – based on the market’s current highest returns.

Exports Down; Recovery Expected in 2012/2013
Soybean exports in marketing year 2011/12 are estimated at 29mmt, down 14 per cent from the 2010/11 record of 33.8mmt. Over the last few months, current high prices and favorable exchange rate have directed Brazilian soybeans to the export market as opposed to the domestic crush market, according to USDA.

However, USDA expects the market to turn inward to supply crush in the second semester of 2012 as a return to traditional export windows to third markets based on price competitiveness at harvest between the US and Brazil occurs. Also, export logistics and port capacities will be strained the second half of 2011 as soybeans compete with sugar, corn, and other export crops.

These expectations together with a drought-reduced short crop will reduce Brazil’s export market share in 2011/12. That said, USDA forecasts a recovery in Brazil’s export market presence in 2012/13 reaching a new record of 35mmt based on continued strong global demand.

International Market
Competition between the domestic and international markets will be aggressive come mid-September when the US harvest is underway. Two years in a row of moderate to poor production have limited the global corn and soybean supply.

La Niñ has also had a significant impact on the Argentina corn and soybean harvests in 2011 and 2012. Despite being the third largest global soybean exporter, Argentina’s international market share slipped the last few years, contributing to the increase in international commodity prices.

Argentina’s soybean production is also slipping. In 2009/2010, it was reported at 54.5 million tons but FNP expects it to only reach 45 million tons in the current season. Corn is following a similar course, falling from 23.3 million tons harvested in 2010 to 20.5 million tons this season. Argentina’s corn exports have also seen a dip from 16.5 million tons in 2010 to 13.5 million this year.

US production was also down last year, due mostly to an exceptional wet spring in the eastern half of the Midwest followed by extreme summer heat during the critical tasseling period. This year could be brighter though, as weather has cooperated so far and US growers have been able to get crops in the ground earlier than usual.

China continues to support the demand side with major purchases of soybeans and has resumed its corn imports due to a decrease in local production. China remains the largest world consumer of corn, feeding huge numbers of poultry and pigs.

According to Informa Economics FNP, Brazilian agribusiness has increased sales to China buy three per cent while Brazil‘s export revenue to China has increase by 17.5 per cent.


Sarah Mikesell, Senior Editor

Thursday, May 10, 2012
Pig Abuse at Tyson Supplier Documented
US - The Humane Society of the United States released an undercover video footage revealing cruel treatment of animals and inhumane conditions at a Wyoming pig breeding facility owned by a supplier for Tyson Foods. The HSUS has notified local authorities.


According to the HSUS, the video, shot in April 2012, was taken at Wyoming Premium Farms, a pig factory farm in Wheatland, Wyoming, owned by Itoham America, Inc., and shows workers kicking living piglets like soccer balls, swinging sick piglets in circles by their hind legs, striking mother pigs with their fists and repeatedly and forcefully kicking them as they resisted leaving their young.

The HSUS reports that in one case, a mother pig with a broken back leg endured a very heavy worker sitting and bouncing on top of her hindquarters as the pig screamed in pain. The investigator also found pigs with untreated abscesses and severe rectal and uterine prolapses, mummified piglet corpses, and baby piglets who had fallen through floor slats to either hang to death or drown in manure pits.

The HSUS met with the Platte County Sheriff's office to present investigation evidence and urged the office to pursue filing criminal charges if warranted.

"I am sickened and outraged by what I've seen, and any right-thinking person will have the same reaction," said Wayne Pacelle, president and CEO of The HSUS. "The shocking abuse at this facility shows why so many Americans are calling for reforms in the pork industry. It is also deeply disconcerting that Tyson and other companies are buying pork from this hellhole for pigs, and I hope those corporate relationships end tomorrow."

"It is also time for Tyson to join so many other major food industry companies and make a commitment to ending the confinement of sows in gestation crates," adds Pacelle. "These crates immobilize animals for their entire lives, and it’s no longer acceptable to the American public."

Many more examples of cruelty and unsanitary conditions are documented on video and detailed in an HSUS investigation report. The graphic video also documents prolonged suffering of pigs used for breeding who are confined in gestation crates, two-foot-wide metal cages so small the animals can't even turn around, rendering them virtually immobilized for almost their entire lives.

Tyson Foods' Response
According to Tyson Foods, contrary to the impression left by HSUS, there is no connection between the Wyoming farm and the pork that the company processes. Tyson Foods claims that it does not buy any of the hogs raised on this farm for its pork processing plants.

The company, in a press release, stated: "We do have a small, but separate hog buying business that buys aged sows; however, these animals are subsequently sold to other companies and are not used in Tyson’s pork processing business.

"We’ve seen the video and we are appalled by the apparent mistreatment of the animals. We do not condone for any reason this kind of mistreatment of animals shown in the video."

According to Tyson, virtually all of the hogs it buys for its processing plants come from thousands of independent farm families who use both individual and group housing. The company says that it requires all hog supplying farmers need to be certified in the pork industry’s Pork Quality Assurance Plus program, which incorporates rigid animal well-being standards and is part of the industry’s ‘We Care’ responsible pork initiative.

NPPC Condemns Actions of Wyoming Farm
The National Pork Producers Council condemns such actions, which are not in accord with the US pork industry’s best practices that are exemplified in its Pork Quality Assurance Plus program.

Providing humane and compassionate care for their pigs at every stage of life is one of the ethical principles to which US pork producers adhere. US pork producers are committed to caring for animals in a way that protects their well-being. Just as it is to others, mistreatment of animals is appalling to pork producers. According to NPPC, "We do not defend and will not accept mistreatment of animals."

NPPC understands that the farm in question is taking immediate steps to address the situation, including an unannounced inspection of the facility by the farm’s consulting veterinarian. Individuals responsible for willful abuse of animals must be held accountable.

Thursday, May 10, 2012
CME: Global Meat Demand and US Export Outlook
US - USDA revised this week its estimates for global beef production and trade in 2012. The updates for some countries were particularly interesting in light of recent trade talk about global meat demand and US export outlook, write Steve Meyer and Len Steiner.


The USDA estimates are updated twice a year (April and October) and the USDA FAS does a tremendous job in bringing together an incredible amount of detail about global meat production, trade, and domestic use.

Global beef production is currently estimated at some 57 million MT (carcass wt. basis), about 0.2 per cent higher than the previous year but still about 1.5 million MT or 2.5 per cent lower than the record high in 2007. In the last 10 years, global beef output has expanded by 5.2 per cent but that increase has not come from countries that traditionally have been the primary actors in the global beef trade. Beef production in the US (the fourth largest beef exporter in the world) has contracted in the past 10 years, in part due to the impact of BSE (December 2003) which limited export markets, but also higher feed costs that undermined produce profitability.

Production in Australia and New Zealand has been for the most part steady in the past decade and it will likely show only modest growth in the coming years. On the other hand, we have seen tremendous growth in production from emerging/developing countries. It may surprise many that India has now emerged as a top global beef supplier, expected to surpass Brazil as the largest global beef exporter in 2012.

Keep in mind that Indian beef production is not from cattle (which are sacred), rather it is from buffalo bovines (carabeef). Indian beef production has expanded by almost 1.7 million MT in the past decade, much of that growth going into export markets. Indian beef exports for 2012 are forecast at 1.525 million MT, 25 per cent higher than the previous year and an almost three fold increase in the past 10 years.


The data on pork shows the outsize influence that China has in the global pork market. Pork is the meat protein of choice in China and as the Chinese economy has expanded, so has the appetite for pork. Chinese pork production in 2012 is currently forecast at 51.6 million MT. By comparison, US pork production is forecast at 10.6 million MT and EU production is forecast at 22.6 million MT.

Chinese output is expected to recover in 2012 and increase by 2.1 million MT or 4.2 per cent from the previous year. High prices in 2011 have encouraged Chinese producers to expand and the increase in domestic supply will limit imports in 2012. But even as USDA now forecasts Chinese pork imports to be about 100 million MT lower than the previous year, this still represents a significant increase from the levels we saw in 2009 and 2010.

Lower global grain prices should support some expansion in pork output not just in US and China but also in other markets. Indeed, USDA revised up its 2012 production prospects for most large pork producing countries. Current world pork production is forecast at 104.4 million MT, almost 1 million MT larger than the October forecast for 2012 and 2.7 million MT or 2.7 per cent higher than in 2011. By Q4 of 2012 exports accounted for almost 1 in 4 pounds of pork produced in the US and global expansion has significantly impacted US pork prices.

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.

Thursday, May 10, 2012
Imported Pork Contains 'Lean Meat Powder'
CHINA - Over 100 tons of pork imported from the United States in March contained clenbuterol, commonly known as "lean meat powder", Guangzhou Daily reported Tuesday, citing General Administration of Quality Supervision, Inspection and Quarantine of China.


The products were returned and not sold in China, according to the watchdog, Guangzhou Daily reported.

Meat with "lean meat powder" may cause dizziness, cardiopalmus and even malignant tumors.

Information about meat goat production in county is hard to come by as not many post any experiences about this side of goat raising.One of the main problems comes back to the same old problem of feeds.Should one be forced to supply their meat goats with off the shelf concentrates,no real drive for anyone wishing to enter this business.Concentrates can cost any producer 70% for their production costs and along with the added expences of doing business,not much if any monies is left for the producer.Mustang Sally has been unsuccessful in feeding local forages only as the goats lost too much body condition.For us forages alone will not work as some sort of base mix needs to be added.The problem of feed costs remains one of the biggest holdbacks for goat meat production and the need to formulate something other than off the shelf concentrates is still something some are experimenting with and maybe in time producers will find success.

We continue to breed our cross/hybrids as this is where we excell with our background knowledge and experience and we have always believed that cross/hybrids show the best promise for goat raising in county.Not to say that purebreeds should be overlooked, but in terms of capital outlay,cross/hybrids have the edge along with other traits that show promise for a tropical setting.At some point in time,every farm starts to product their own bloodline/s and builds up a quality herd.

It is really hard to guage the goat industry in county when so little information is ever posted.

SA_LS320
San Angelo, TX    Tue May 08, 2012   USDA Market News

Producers Livestock Auction Co, San Angelo, Texas

Sheep and Goat Auction:
Close and Weekly:

Total Receipts:  3140    Last Week:  5077    Year Ago:  8770
Sheep Receipts:  1795    Last Week:  2970    Year Ago:  6286
Goat  Receipts:  1345    Last Week:  2107    Year Ago:  2484

  Compared to last week heavy slaughter lambs not well tested; light
slaughter lambs sharply lower.  Slaughter ewes 2.00-5.00 lower.  Feeder
lambs 5.00-10.00 lower.  Nannies firm; kids weak to 10.00 lower.  Trading
and demand moderate for rain shortened supply.  Supply included 25
percent slaughter lambs, 25 percent slaughter ewes, 5 percent feeder
lambs, balance goats.  All slaughter lambs went to non-traditional
markets.  All sheep and goats sold per hundred weight (CWT) unless
otherwise specified.

SLAUGHTER LAMBS:
   Choice 2-3 shorn and wooled 100-130 lbs 120.00-125.00.

   Choice and Prime 1 40-60 lbs 152.00-168.00; 60-70 lbs 145.00-158.00;
80-90 lbs 138.00-142.00; 90-100 lbs 130.00-140.00.
Choice 1 40-60 lbs 130.00-150.00; 60-70 lbs 135.00-145.00; 70-80 lbs
132.00-139.00; 80-90 lbs 125.00-137.00; 90-105 lbs 101.00-121.00.
Good 1 60-80 lbs 120.00-126.00.

SLAUGHTER EWES:
   Good 2-3 (fleshy) 45.00-50.00; Utility and Good 1-3 (medium flesh)
48.00-59.00, high-yielding 60.00-73.00; Utility 1-2 (thin) 40.00-47.00;
Cull and Utility 1-2 (very thin) 35.00-40.00; Cull 1 (extremely thin)
30.00-35.00.

SLAUGHTER BUCKS:
   45.00-78.00, few 90.00-96.00.

FEEDER LAMBS:
   Medium and Large 1-2 40-60 lbs 178.00-185.00; 60-70 lbs 170.00-175.00;
70-80 lbs 162.00-170.00.
   Medium and Large 2 60-90 lbs 140.00-156.00.

REPLACEMENT EWES:
   Medium and Large 1-2 yearlings 150.00 per head; baby tooth blackface
162.00 per head; solid mouth blackface 125.00 per head.


GOATS:  Estimated 45 percent of receipts:
All sold per hundred weight (CWT) unless otherwise specified.

SLAUGHTER CLASSES:
   KIDS:  Selection 1 40-60 lbs 200.00-210.00; 60-80 lbs 198.00-208.00;
80-100 lbs 170.00-180.00.
Selection 1-2 30-40 lbs 166.00-176.00; 40-60 lbs 178.00-198.00; 60-80 lbs
180.00-196.00; 80-100 lbs 145.00-165.00.
Selection 2 25-40 lbs 130.00-162.00; 40-80 lbs 146.00-176.00.
   DOES/NANNIES:  Selection 1-2 80-130 lbs 110.00-120.00, few 120.00-
124.00; 130-140 lbs 110.00-118.00; thin 70-115 lbs 100.00-110.00.
   BUCKS/BILLIES:  Selection 1-2 70-100 lbs 130.00-154.00; 100-150 lbs
114.00-128.00, yearlings 130.00-134.00; 150-250 lbs 102.00-120.00.

REPLACEMENT CLASSES:
   DOES/NANNIES: Selection 1 60-100 lbs 150.00-160.00.
Selection 1-2 60-120 lbs 122.00-140.00.


Source:  USDA Market News Service, San Angelo, Texas