Friday, May 04, 2012
Weekly Australian Cattle Summary
AUSTRALIA - This report is a collection of weekly cattle price summaries from each Australian state by the Meat & Livestock Australia (MLA).


West Australia
Reasonable rainfall recorded

Further rainfall has fallen across much of the agricultural regions of WA over the past seven days with several troughs crossing the coast and bringing much welcomed moisture with it. The first front seen last weekend brought moderate falls to some areas while the second later in the week was more widespread and of greater intensity. It is hoped that this will be the break to this year’s growing season with pasture levels now virtually non-existent with little feed value left in them.

Consequently supplementary feeding remains a high priority on farms especially with calving now peaking. With more moderate weather conditions being enjoyed in the northern pastoral regions mustering activity is on the rise and subsequently there should be increased volumes of cattle from these regions seen in the south in the short term. Feed conditions in the majority of the pastoral regions continues to be reported a reasonable.

Saleyard numbers increased this week with Muchea the largest of the three weekly sales. The possibility of green feed in the near future should have a negative affect on the numbers of locally bred cattle seen in the market, but this should be offset by an increase in pastoral supplies. There were again only limited supplies of heavy weight steers in physical market. Heavy weight heifer volumes were moderate, while there was a slight increase in grain assisted yearlings. Cow volumes remained solid in all three markets, while young store grades continued to have a healthy representation.

Trade demand increases

Vealer supplies were again minimal as would be expected at this time of year and restricted predominately to calf weights. Local retailer and trade demand remained solid as did restocker inquiry with solid returns recorded. There was a reasonable quality and weight evident in grain assisted yearlings this week.

Local processor demand increased slightly with slight increased in values recorded throughout the weight ranges, while medium and lighter drafts continued to enjoy a solid feeder demand. Grass finished trade weight yearling supplies were limited. These also recorded a slight improvement in both trade and demand and the values paid. There continued to be a reasonable weight and quality available in local store drafts of young cattle. Medium and heavier drafts of both steers and heifers recorded a slight increase in feeder demand with dearer values recorded.

Lightweight store steers and heifers both recorded a further increase in restocker demand, which are expectant of green feed in the short term. The limited supplies of heavy weight steers and bullocks realised firm to slightly dearer rates with this also the case in mature heifer classes. The cow market continued to record a solid processor demand which saw prime values increase to 151¢/kg on average.

Queensland
Larger numbers

A return to a full working week lifted total throughput at physical markets covered by MLA’s NLRS. Numbers across individual centres though tended to level out and in some cases, like Roma store, declined after several weeks of large sales. A combination of some rain in the supply area and the recent reduction in values generally restricted the numbers coming forward.

Overall quality across most markets was mixed and as winter draws closer the trend of young cattle dominating the selling pens continued. Buyer attendance was generally good and a few extra restocker buyers were present in the buying panel at the Roma store sale. However at a number of markets not all export processors were active.

Values for young cattle experienced a wide variation in price depending on quality as buyers become more selective. Calves returning to the paddock averaged 9¢/kg better and vealer steers also met strong competition from restockers. Vealer heifers to slaughter struggled at times with most close to the reduced levels of recent weeks. However local butchers at Warwick lifted values by 10¢/kg on a relatively small sample of top end quality lines. Prices for medium and heavy weight feeder categories turned around to regain some of the losses. Competition was subdued at markets early in the week however as the week progressed prices averaged 5¢ to 10¢/kg better.

Virtually no heavy steers and bullocks were penned at the early week markets nevertheless by mid and late week sales the general shortfall in supply lifted processor demand and average prices gained 6¢ to 8¢/kg. Cows experienced a similar trend however price improvements were confined to 1¢ to 2¢/kg.

Values generally dearer

Calves returning to the paddock averaged 9¢ dearer 218¢ with a few pens to 248.2¢/kg. The vast majority of the vealer steers also returned to the paddock at an average of 217¢ with sales to 235.2¢/kg. A large selection of vealer heifers sold to local and southern processors at 189¢ with some to local butchers at 219.2¢/kg. Lightweight yearling steers sold to restockers at 212¢ with a few to 228.2¢/kg. Medium weight C2 yearling steers to feed averaged 192¢, while the better condition lines averaged 200¢ with sales to 207.2¢/kg. Heavy feeders mostly sold around 185¢ with a few pens to 197.2¢/kg. Medium weight yearling heifers to feed and the local trade market averaged 181¢ with some to slaughter at 208.2¢/kg.

Heavy steers to export slaughter averaged just under 174¢ with some to 179¢/kg. Bullocks also averaged close to 174¢ to be 8¢ dearer with sales to 181.2¢/kg. Medium weight 2 score cows averaged 2¢ better at 120¢, and 3 scores lifted 3¢ to average 129¢/kg. Good heavy cows managed to average 1¢ dearer at 142¢ the occasional pen to 160.2¢/kg. Heavy bulls made to 176.2¢ with a fair sample at 150¢/kg.

South Australia
Smaller yardings

Cattle numbers fell at the three operating sales after last week’s lower prices that were paid. The SA LE had mixed quality runs of mainly young cattle that sold to fluctuating competition from the usual trade and export buyers. Feeder orders were also active, albeit quite selective with their purchases and breeding being the main criteria. Limited numbers of vealers remained basically unchanged. The C3 yearling steers were dearer, while B-muscled sales tended to ease. Feeder purchases of the steers were quite erratic. Limited numbers of yearling heifers were dearer to the trade, with C2 lightweight sales to feeder cheaper. Cow prices remained quite stable as most to processors.

Naracoorte’s smaller yarding after a week off due to the new roof construction will see no sale being held next week as the building continues. It was a very mixed quality yarding that sold to steady trade and export competition from most of the usual SA and Victorian buyers at generally lower levels, with only isolated sales being dearer. Feeder and restocker orders were also active and were able to lower their prices.

Mt. Gambier’s smaller yarding for the first sale in a fortnight contained very mixed quality runs of young cattle and grown steers, while cow quality was quite good overall despite some very plain quality dairy cows being yarded. Most of the usual SA and Victorian buyers were present and operating, albeit at times struggling to source enough killable young cattle. The sale tended to recoup some of the previous sale’s lost ground.

Mixed results

There were mixed results for cattle producers due to the varying quality offered and some limited trade and export competition. Vealer steers to the trade and some local butcher inquiry sold from 200¢ to 230¢/kg at unchanged prices. Feeders and restockers purchased C muscled steers from 170¢ to 210¢/kg at lower levels. Vealer heifers to the trade sold mainly between 188¢ and 221¢ with an isolated sale at 238¢, to be unchanged to 10¢/kg dearer. Yearling steer C2 and C3 medium and heavy yearling steers to wholesalers sold from 165¢ to 210¢ at prices 2¢ to 10¢/kg more. Feeder purchases on increased numbers were generally from 160¢ to 205¢/kg at mainly dearer levels. Yearling heifer C3 sales were between 165¢ and 205¢, or 5¢ to 19¢/kg dearer.

Grown steers in mainly 2 score condition sold from 160¢ to 192¢ to be 10¢ to 20¢ dearer and averaging 330¢/kg cwt. Grown heifers sold mainly from 142¢ to 184¢ to be 7¢ to 20¢/kg dearer. The beef cows attracted prices from 112¢ to 144¢, or unchanged to 4¢ dearer and generally 240¢ to 285¢/kg cwt. Restockers paid from 105¢ to 138¢ for 1 and 2 score beef cows.

New South Wales
Mixed quality

Supply increased across most yards with total throughput up 23% at markets reported by MLA’s NLRS when compared to the public holiday effected markets last week. Going against the trend was Wagga and Forbes with Wagga numbers down by around half. Supply though was 32% down on the corresponding week last year.

The regular panel of buyers was present with many providing increased competition to secure their supplies. There was also the return of southern orders at both Gunnedah and CTLX.

After the cheaper trend that has been evident lately, prices for young cattle were firm to dearer however there were some lines that were dealt further price reductions. The EYCI though has regained some of the falls of recent weeks, particularly earlier on in the week. At the completion of Thursday’s markets the EYCI was 374¢, a gain of 7.50¢/kg cwt on week ago levels.

Grown steers were in much smaller numbers and this was a factor behind them climbing 8¢ to 22¢/kg with the 0 and 2 tooth heavy steers and bullocks receiving the greatest gains. Cows also lifted 1¢ to 8¢/kg to processors as those to restockers were cheaper.

Quality was again mixed with some of the young cattle starting to lose condition. Even though the approaching winter conditions are having an effect on paddock feed and subsequent cattle quality, there still remained runs of high yielding finished cattle.

Young cattle accounted for 60% of the states throughput and to be expected for this time of year, the majority were vealers. Following the recent trend, just over 55% of the grown cattle were cows.

Prices improving

Light vealer steers to restockers mostly made from 205¢ to 210¢ after reaching 260¢/kg. The large numbers of medium weights returning to the paddock made mostly from 189¢ to 255¢ to be up to 7¢/kg dearer. Processors paid from 210¢ to 220¢/kg for medium and heavy weight vealer steers. Most of the medium weight vealer heifers were purchased by processors in the early 200¢/kg range. Those secured by restockers mostly made from 170¢ to 215¢/kg. The majority of the light yearling steers went to restockers around 201¢ to be slightly cheaper while the medium and heavy weights to feeders were fully firm in making from 185¢ to 194¢/kg. The C3 medium weights to the trade averaged 198¢ as the heavy weights lifted 7¢ to sell closer to 194¢/kg. The lightweight yearling heifers to restockers also improved 6¢ while the medium weights to feed climbed 7¢/kg. The trade paid from 160¢ to 178¢ for medium and heavy weights, which was 1¢ to 11¢/kg dearer.

Heavy grown steers mostly made from 142¢ to 202¢/kg. There were only a few bullocks offered with most selling from 163¢ to 181¢/kg. Medium D3 cows improved 8¢ to 131¢ as the heavy cows were 5¢ to 7¢ better and ranging from 136¢ to 140¢/kg.

Victoria
Supply increases

After the much reduced public holiday affected yardings last week, all markets operated and supply increased 75%. Most markets reported by MLA’s NLRS recorded greater throughput except for Ballarat, Pakenham which declined 16% and 50% respectively. The smaller yarding at Pakenham was generally due to producers withholding cattle following the recent cheaper prices. After no market last week, Leongatha was the largest yarding. In comparison to this week last year, yardings were down 30%.

Grown cattle accounted for 70% of the cattle offered with cows dominating. The young cattle were almost evenly split between the vealers and the yearlings.

Quality has remained mixed, ranging from poor quality through to over-conditioned lines particularly in the cows, through to finished cattle that had been supplementary fed suitable for slaughter. This trend is expected to continue as winter approaches. Warrnambool though was of improved quality compared to the sale a fortnight ago and was most noticeable on the yearlings with many being supplementary fed.

Prices have started to regain some of the losses incurred recently particularly those to slaughter orders. Vealers were firm to 15¢ dearer while yearlings were 5¢ to 11¢/kg dearer. An improved trend has also been evident across the other states and is highlighted by the EYCI climbing 7.50¢ on last week to finish Thursday on 374¢/kg cwt.

Dearer prices

Medium weight C muscle vealer steers to the trade mostly made from 202¢ to 208¢ as the B muscle lots generally made around 234¢/kg. The few to restockers and feeders sold from 208¢ to 234¢/kg. Heavy B and C muscle vealer steers made from 206¢ to 225¢/kg. The medium and heavy vealer heifers to the trade ranged from 186¢ to 218¢/kg with most carrying plenty of weight. Heavy yearling steers to slaughter gained 7¢ to average 199¢ after making to 226.6¢kg. Heavy C3 yearling heifers were 11¢ dearer at 189¢, while the plainer end gained 16¢ to average 196¢/kg.

Medium weight grown steers held firm around 186¢ as the heavy C3s in large numbers gained 11¢ to average 192¢/kg. The bullocks generally made around 188¢ to be up to 13¢/kg dearer. There were also a few heavy bullocks yarded that sold in the mid 180¢/kg range. Medium D3 beef cows improved 8¢ to 137¢ as the heavy D4s gained 4¢ to average 141¢/kg. The better end of the medium weight dairy cows improved 4¢ to average 115¢/kg. Heavy dairy cows made to 148.6¢ with most making form 104¢ to 146¢/kg.

Friday, May 04, 2012
Hog, Poultry Raisers Mull Holiday over Smuggling
PHILIPPINES - Leaders of various organisations of hog and poultry raisers nationwide threatened to impose a five-day pork and chicken holiday anew if technical smuggling is not stopped.


The leaders are AGAP party-list Rep. Nicanor Briones; ABONO party-list chairman Rosendo So; Edwin G. Chen, president, Pork Producers Federation of the Philippines, Inc.; Daniel Javellana Jr., chairman, National Federation of Hog Farmers, Inc.; Gregorio San Diego Jr., president, United Broilers Raisers Association; and Ernesto Ordonez, chairman, Alyansa Agrikultura.

All of them concurred on stating that the biggest problem they encounter is smuggling, if not solved, would worsen poverty situation in the country, reports DailyStar.

Mr Briones said Agriculture Secretary Proceso Alcala has ordered for a review of the DA's Administrative Order no. 5, which hog raisers have criticized as favoring meat importers.

Mr Alcala also ordered a stop to accrediting new importers and a review of the existing list for purging.

An estimated P8.5 billion was lost from July 2011 to February 2012, with 2.2 million hogs sold each month.

Technical smuggling also caused the government to lose some P3.7 billion in revenues annually.

Mr Briones said the Bureau of Customs also assured the industry that it will implement a 100 per cent inspection of imported meat.

He also lauded the government for allotting one representative from the industry to participate in the inspection.

So, meanwhile, said although they welcomed this development the industry had not dropped its threat to go on a five-day pork and chicken holiday again until the government had totally stopped the unhampered technical smuggling.

“It this actually a sacrifice for the backyard hog raisers not to sell their products and lose income for five days, but the effect of this is significant, something that we are hoping for to achieve – that they (government) would look into our plight,” he said.

On the other hand, Mr Chen said the list of meat importers must be purged because there are more illegal importers that the legitimate ones.

The stakeholders, showing a basis for their claim of increasing illegal pork importation, cited a report which shows that it has steadily increased from 109,366,006 kilos in 2011; the highest was registered in 2010 at 178,905,096 kilos.

"Until we see the government level playing field, we cannot be complacent. We want smuggling completely eradicated," Ms So said.

Monday, May 07, 2012
Food Prices Ease But Stay High
GLOBAL - Global food prices measured by the FAO Food Price Index fell three points or 1.4 percent from March to April 2012 but seem to have stabilized at a relatively high level of 214 points, FAO said last week.


The fall was the first after three consecutive months of increases and although the index is significantly down from its record level of 235 points in April 2011, it is still well above the figures of under 200 which preceded the 2008 food crisis.

The index was published in the latest FAO Food Outlook, a global market analysis which comes out twice a year. It noted that the prospects for the second half of this year and into the next indicate generally improved supplies and continuing strong demand.

Consequently the global food import bill in 2012 could decline to $1.24 trillion, down slightly from last year’s record of $1.29 trillion Food Outlook said.

Record cereals production
The forecast for cereals production was for a modest expansion in 2012 to a new record of 2,371 million tonnes compared to 2 344 million tonnes in 2011.

However, within the cereals sector, wheat production in 2012 is anticipated to fall by 3.6 per cent compared to 2011, to 675 million tonnes, with the largest declines forecast for Ukraine, followed by Kazakhstan, China, Morocco and the EU. The expected decrease coincides with prospects of a slight reduction in total wheat utilization in the 2012/13 marketing season.

Lower wheat output is offset by a record coarse grains production of 1,207 million tonnes anticipated in 2012, compared to 1,164 million tonnes in 2011 – itself a record year. But the increase, expected to follow a sharp rise in plantings in the United States, is unlikely to be sufficient to ease current market tightness because of the very low level of opening stocks, with consequent, continuing pressure on prices.

Rice production is expected to grow 1.7 per cent in 2012 to 488 million tonnes, but slackening import demand and the return of India as a major exporter are keeping prices down. World rice production this year is expected to exceed demand for the eighth consecutive year.

Oilseeds not meeting growing demand
After two seasons of relatively ample supplies, in 2011/12 the market for oilseeds and derived products is set to tighten again. Global oilcrop production will not be sufficient to satisfy growing demand for oils and meals. Global soybean production is estimated to decrease by almost 10 per cent, one of the steepest year-on-year falls on record. With oilcrops other than soybeans only partly compensating for the shortfall, total oilcrop production should drop to a three-year low, down 4 per cent from last season. International prices for oilcrops and derived products, which have risen sharply since January, are therefore likely to stay firm.

World sugar output in 2011/12 is set to increase by close to 8 million tonnes, or 4.6 per cent over 2010/11, reaching nearly 173 million tonnes. For the second consecutive year, production is anticipated to surpass consumption, with a surplus expected of some 5.4 million tonnes helping to rebuild relatively low stock levels.

The growth in sugar output is attributed to significant expansion in area and input use, prompted by strong international sugar prices and better weather. A fall in production in Brazil, the world’s largest producer, is expected to be offset by increased production in other major producing countries, including Thailand and India.

Expansion seen for meat, dairy and fish
Driven exclusively by gains in poultry and pigmeat production, global meat output is set to expand by nearly 2 per cent to 302 million tonnes in 2012. Most of the sector growth is likely to originate in developing countries. An ongoing struggle for markets is expected to intensify in 2012 as increased production in key importing countries slows down global meat trade expansion. This, combined with limited supplies in developed exporting countries, is shifting international market shares towards developing countries, in particular Brazil and India.

World milk production in 2012 is forecast to grow by 2.7 per cent to 750 million tonnes. Asia is expected to account for most of the increase, but higher output is anticipated in most regions. World trade in dairy products is expected to continue expanding in 2012. Demand remains firm, with imports anticipated to reach 52.7 million tonnes of milk equivalent. Asia will continue to be the main market, followed by North Africa, the Middle East, and Latin America and the Caribbean.

Sustained demand for fish and fishery products is boosting aquaculture production worldwide and pushing prices higher, despite some consumer resistance in the more traditional markets in southern Europe. Overall production for the year is expected to grow by 2.1 per cent to 157.3 million tonnes, thanks to a 5.8 per cent increase in aquaculture output that more than offset a small decline in capture fisheries following limitations on catches of small pelagic species in the Pacific.

Friday, May 04, 2012

Canadian Pork Producers Fight for Open Border

CANADA - The WTO Appelate Body has completed its hearing on the United States appeal of it loss of the WTO dispute panel on its Country of Origin Labeling regime (COOL) as it applies to imported livestock, specifically Canadian hogs and beef cattle.


"The Canadian Pork Council and its members, together with the Government of Canada and the Canadian Cattlemen’s Association, have been contesting mandatory COOL since its inclusion in the 2002 US Farm Bill”, said Jean-Guy Vincent, CPC Chair, “and we are very pleased with how Canada’s dispute with COOL has been argued at the WTO – first before the Panel and now in front of the Appellate Body.”
 
“The Government of Canada team has very effectively argued that the (COOL) law is a protectionist measure”, said Jurgen Preugschas, a pork producer from Mayerthorpe, Alberta. “Despite claims by the United States that COOL was a response to requests from consumers, the legislation was in fact a result of lobbying by a splinter group of US livestock farmers whose intent was to restrict imports from Canada.”
 
In addition to Mr Preugschas, the Canadian hog industry was represented in Geneva by Martin Rice, CPC’s executive director; Andrew Dickson, General Manager of Manitoba Pork Council; and Peter Clark, CPC’s international trade counsel. The CPC Team also coordinated closely with Jim Laws, Executive Director of the Canadian Meat Council. Jim’s valuable knowledge and insights were greatly appreciated.
 
Mr Dickson noted “Canada has effectively argued that the COOL labeling requirements have seriously harmed and continue to harm Canadian exports of cattle and hogs to the United States. The COOL measure has been devastating to Manitoba hog producers. COOL has been particularly devastating to Manitoba hog farmers, many of whom have had to cease or significantly curtail their operations.”
 
“The Canadian legal team and their colleagues from DFAIT and Agriculture Canada were impressive and effective in their efforts to turn back the US. challenge” said Mr Preugschas. “A positive result is needed by all Canadian hog producers whether they are selling feeder pigs or slaughter hogs – the US. market has been skewed for far too long to our disadvantage.”
 
“We look forward to working with our counterparts in the US. on a legislated return to normalcy”, he added.
 
Peter Clark explained: “The formal meetings are over – and Canada’s summation was concise but complete and compelling. The Appellate Body will now consider the record evidence and arguments to reach its conclusion which we expect towards the end of June.“
 
He went on to note that in dealing with the COOL appeal the Appelate Body will almost certainly clarify rules which will be important with respect to COOL and to properly disciplining the proliferation of technical measures around the world.
 
The CPC serves as the national voice for hog producers in Canada. A federation of nine provincial pork industry associations, our organisation’s purpose is to play a leadership role in achieving and maintaining a dynamic and prosperous Canadian pork sector.

Monday, May 07, 2012
Weather Not Helping with Pig Meat Demand
UK - The recent spell of dull, cold, wet, miserable, gloomy, inclement weather is doing nothing to perk up demand for pig meat at a time of year when the prices normally start to rise as barbecues are fired up on the nation's patios and al fresco eating becomes the norm, writes Peter Crichton.


 


The DAPP added 0.59p to stand at 146.92p at a time when its future as an index price is under threat from abattoirs who had previously complained it was ahead of the market. The irony is that the DAPP is now 1.28p below the average shout price.

However despite poor retail demand and a short week ahead, prices have held reasonably firm with three of the main shout price buyers following Tulip's example and standing-on and Cranswick putting an extra 1p in the pot and lifting its contract price to 147p to narrow the gap between it and Vion with the rest of the field.

As a result the latest league table standings are now as follows:

150p Woodhead
149p Gill
148p Tulip
147p Vion, Cranswick

Although some spot bacon buyers were suggesting they might trim their bids back by a copper or two, once again the underlying shortage of pigs in the supply chain meant that they had to stand-on to secure the supplies they needed and once we return to a full working week and (hopefully) better weather, demand should pick up.

Most spot bacon was traded at around the 150p mark with small premiums available for lighter weights, but no pigs were reported to have been rolled which might let us start the following week with a clear sheet.

In addition to the unseasonal weather the euro continues to face a crisis of confidence and traded on Friday afternoon worth a mere 81.19p compared with 87.87p a year ago effectively reducing the delivered cost of imported pigmeat by 10 percent compared with 12 months ago.

Cull sow prices also came under pressure because of a mixture of a weaker euro as well as reports of falling pigmeat prices across many of the northern European countries with the result that British cull sow operators pulled their prices back by between 3p–4p/kg with most delivered quotes now between 122p and 125p according to spec.

On the feed price front ex-farm feed wheat is still trading at around £170/tonne, although futures quotes have eased a shade reflecting higher estimated yields at harvest time and better worldwide cereal availability.

The weaner market remains very much under pressure mainly due to the high cost of feed as well as a lack of any real confidence in pig prices in three months' time with the Agriculture and Horticulture Development Board 30kg ex-farm average weaner price static at a disappointing £45.29/head.

Many pundits are however pointing to a much brighter outlook for GB pig producers once the effects of the European Union mainland stall ban start to bite with signs that pig prices could follow what happened in the egg industry and put a smile back on producers' faces.

It will be interesting to see what the general mood of the industry is for the upcoming Pig and Poultry Fair that takes place at Stoneleigh on the 15-16 May, but "glass half empty" seems to be the current view.

Monday, May 07, 2012
Hog Prices End Lower than a Week Ago
US - Iowa State University calculations estimate the average breakeven live price for barrows and gilts in the first quarter of 2012 at $64.46/cwt, down $1.66 from the fourth quarter of 2011, but up $3.76 compared to January-March 2011, writes Ron Plain.
 
Ron Plain
They estimate the average Iowa hog was sold at a profit of 55 cents in the first quarter.

USDA says 53 per cent of corn acreage had been planted by 29 April. That compares to an average of 27 per cent planted on that date, and 12 per cent planted on 29 April 2011. USDA has predicted that 2012 corn acreage will be the most since 1937. A big drop in cash corn prices is expected this fall. May corn futures ended the week at $6.62 per bushel. December corn futures ended the week $1.38 lower at $5.24 per bushel.

Hog prices ended this week lower than the previous Friday. The national average negotiated carcass price for direct delivered hogs on the morning report today was $75.37/cwt, down $3.77 from last Friday. The eastern corn belt averaged $74.81/cwt this morning. The western corn belt averaged $77.63/cwt. Iowa-Minnesota had an average price of $77.65 on the morning report. Peoria had a top today of $52.50 and Zumbrota a top of $52/cwt. The top for interior Missouri live hogs Friday was $56.50/cwt, down $2.25 from the previous Friday.

The pork cutout value was higher this week. USDA's Thursday afternoon calculated cutout value was $78.10/cwt, up $1.35 from the previous Thursday. Loins and hams were higher this week. Butts were lower. Wholesale pork belly prices moved up a bit after losing more than $19/cwt in the two previous weeks.

For most all of April, the national average hog carcass price was above the cutout value.

Hog slaughter totaled 2.069 million head this week, down 1.1 per cent from the week before, but up 4.0 per cent compared to the same week last year. Barrow and gilt carcass weights for the week ending 21 April averaged 206 pounds, unchanged from the week before and up one pound from a year ago. The average barrow and gilt live weight in Iowa-Minnesota last week was 276.1 pounds, down 0.8 pounds from a week earlier, up 2.8 pounds from a year ago, and above a year earlier for the 23rd consecutive week.

Since 1 March, the slaughter of US raised barrows and gilts is running nearly 1 per cent above the level predicted by the March inventory of market hogs. Year-to-date pork production is up 1.6 per cent.

It was a bad week for hog futures. Friday's close for the May lean hog futures contract was $79.80/cwt, down $5.70 from the previous Friday. The June lean hog futures contract settled at $83.72/cwt, down $2.88 for the week. July hogs ended the week at $85.35 and August settled at $86.10/cwt.

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.

Thursday, May 03, 2012
Beef Popularity Grows in Middle East
AUSTRALIA - While being widely recognised as our largest export destination for sheepmeat, the Middle East and North Africa (MENA) region has a growing appetite for Australian beef, says Meat and Livestock Australia.


In 2011, the MENA region was Australia’s largest sheepmeat export destination for the second year running despite declines in volumes from the heights of the previous year.

Lamb shipments reached 35,643 tonnes swt for the year (a decline of seven per cent) and mutton exports reached 39,699 tonnes (a decline of eight per cent).

At the same time, Australian beef exports have embarked on a period of explosive growth – increasing by 107 per cent over the last two years to reach 34,310 tonnes swt in 2011.

The growing popularity of beef reflects social and economic changes in the region, in particular the growing financial clout of the oil-rich United Arab Emirates (UAE). Despite a population of only 8 million people, this small country ranks as one of the world’s wealthiest with GDP per capita of more than $48,500.

Last year, the UAE replaced Egypt as our number one beef and lamb export market in the region, with Australian red meat imports to the country reaching 28,804 tonnes in 2011.

Beef imports in particular, increased sharply by 28 per cent from 5,801 tonnes swt in 2010 to 7,431 swt in 2011, with chilled beef imports reaching 3,306 tonnes swt.

The UAE also almost maintained 2010 import levels of around 12,500 tonnes of Australian lamb products in 2011.

Forecasts indicate demand is likely to strengthen, with Australian red meat well placed to seize future opportunities to deliver quality beef and lamb.

In the UAE’s foodservice sector alone, beef sales are expected to grow 152 per cent, alongside a 290 per cent increase in lamb sales by 2014. Food purchases overall are predicted to grow by 191 per cent during the same period.

To capitalise on these shifts, MLA opened its MENA regional office in the UAE’s largest city Dubai on 25 April. The office relocated across the Persian Gulf from its former location in Bahrain.

GLOBAL POULTRY TRENDS – Slow Population Growth but Rise in Processed Egg Uptake in Europe

With the population likely to remain fairly constant, the key feature of the egg market in Europe in the coming years is the rise in the consumption of egg products by the region’s residents, according to Terry Evans in the last part of his analysis of the European egg industry. Some estimates point to the proportion reaching as high as 40 per cent in certain countries by 2025.

 



By 2015, the population of Europe will have increased by a mere 15 million compared to 2000. However, while the number of people within the EU is expected to increase from 482 million to almost 507 million, the total living elsewhere in Europe is forecast to decline from 245 million to nearly 235 million. While amendments have been made to the human population estimates (table 1) the FAO has not updated its consumption data.
 
Previously in these regional reports, it has been explained that the consumption figures per person – either in weight or numbers of eggs – are the most unreliable of all the industry statistics. From the data in table 1, it would appear that that average egg consumption in Europe is about 50 per cent above the global figure and also that, unlike the other regions reviewed in this series, there is far less variation in the uptake levels between countries.



While consumption per person in the European Union seems to have declined a little, outside the Community, it has increased quite considerably such that while, prior to 2003, the European average was below that for the EU, since then it has been above it.
 
Currently, world average egg consumption looks to be a little above 9kg per person, which would point to the European figure being around 13.7kg in 2012 (Figure 1).
 
Data published by the International Egg Commission (IEC) on egg consumption gives a mixed picture with the uptake per person in 2010 falling in some countries but rising in others. At first sight, it appears that movements between years simply reflect changes in available supplies which, in turn, are the result of actual or likely future changes in the levels of profitability of egg production. Without the corresponding price data it is not possible to assess whether the demand for eggs has altered.

 


Figure 1. Trends in egg consumption in Europe compared to the global average
 
However, one feature which appears to be common among most IEC member countries is that the consumption of eggs in egg products is on the increase. In 2010, egg products, as shell egg equivalent, was highest in Italy with the average at 75 eggs per person, which represented 36 per cent of a total annual consumption of 210 eggs per person. Belgium came a close second with a products uptake of 74 eggs per person but, in this case, the products represented 44 per cent of a total consumption of 170 eggs.
 
Certainly, it is the products sector of the market that will offer the greatest opportunity of an expansion in egg use in the foreseeable future, with some estimates pointing to the figure reaching as high as 35 to 40 per cent of production by 2025, depending on country.
 
April 2012

Tuesday, May 01, 2012
Pork Commentary: Swine Canada Inventory Report
CANADA & US - Last week, Statistics Canada released its April 1st Canada Swine Inventory Report. The breeding inventory is real steady, in 2011 1.311 million in 2012, 1.312 million. That is a 100–head difference year–over–year – real steady, writes Jim Long.


Jim Long is President &
CEO of Genesus Genetics.
The Canada market inventory was up year over year by about 200,000 head (2011: 10.519 million; 2012: 10.729 million).

Canada’s industry is in a holding pattern as profits have been limited by high feed prices, and a par Canadian dollar to US. Producers who grow their own feed are cash flowing quite well. High cost feed purchasing production systems are losing money. With the current high feed prices and current future lean hog futures, we expect some decrease in the breeding herd in the coming months primarily from feed purchasing companies.

Canada's live hog exports to the US in the first three months are steady.

Live Hog Exports to US
Year to date April 4, 2012 hogs (head)
  2012 2011 % change
Barrows/gilts/sows 235,533 278,170 -15.3
Feeder pigs 1,293,049 1,265,723 2.2
Total 1,528,582 1,543,893 -1.0

The US in the past imported more than double the current rate. US Country of Origin Labeling and lower Canadian pig supply from a Canadian breeding herd 300,000 smaller than a few years ago had dramatically cut Canadian pig supply.

Canada’s weekly hog kill is year of date to April 14 -1.1 per cent lower (2012: 5.952 million; 2011: 5.990 million).

Summary
Canada’s breeding herd, US live exports and slaughter numbers have little change year over year. A small increase in market hog inventory from productivity gains. Canada’s production is not changing much anytime soon due to high feed prices, currency exchange rate but probably just as importantly very little long term optimism.

US – Canadian hog inventory
The US–Canadian report for April indicates the direction of the two interdependent countries inventory and supply.

US – Canadian hog inventory
Annual in March ('000 head)
  2007 2008 2009 2010 2011 2012 2012
as % of '11
All hogs and pigs 76,625 80,218 77,704 75,218 75,514 76,912 102
Kept for breeding 7,720 7,675 7,377 7,074 7,098 7,130 100
Market 68,904 72,544 70,328 68,144 68,416 69,782 102
Under 50 pounds   24,823 23,824 22,530 22,955 23,567 103
50-119 pounds   19,175 19,107 18,649 18,139 18,675 103
120-179 pounds   15,073 14,,473 14,083 14,562 14,750 101
180 pounds and over   13,473 12,925  12,883 12,760 12,780 100
Sows farrowed 3,730 3,876 3,766 3,595 3,551 3,586 101
Pig crop 34,431 36,340 36,024 34,838 35,067 35,947 103

Observations
US–Canada breeding herd has not significantly changed over the last year, and last two years. The total breeding herd is about 600,000 smaller than 2007; the decline from 2007 of financial losses and productivity increases.

The 2012 combined market hog inventory is two per cent higher than 2011 but still almost three million head smaller than in 2008. The increase in 2012 is truly a reflection of increased productivity from a steady breeding herd.

The combined pig crop for the quarter was up year over year three per cent (about 900,000). This is a big jump year over year and will mean more hogs in the last quarter of 2012.

Domino’s Pizza Stands up to Humane Society of United States
The shareholders of Domino’s Pizza strongly rejected a motion at their 2012 annual meeting that would require its suppliers to stop housing gestation sows in stalls. Only four per cent of the shareholders supported the motion. A massive rebuke to the Humane Society of the United States, says Mr Long; Domino’s spokesman Tim McIntyre says: “We rely on animal experts to determine the best way to raise an animal that is being used for food.”

The resounding defeat of the motion is a virtual slap in the face of the Humane Society of the United States, according to Mr Long. Their massive fund–raising efforts will continue as they push a thinly veiled attempt to create a vegan society. Every swine producer should not only thank Domino’s but eat their pizza. It is great to see an American company standing up to the righteous bullying tyranny of the Humane Society of the United States. There is hope. Mr Long added that several millenniums of human history of eating meat won't be stopped by a Washington lobby group.


Author: Jim Long, President & CEO, Genesus Genetics 

Thursday, May 03, 2012
Brasil Foods Sees Strong Domestic Sales Growth
BRAZIL - Brasil Foods (BRF) has announced its first quarter results, which include a 5.3 per cent increase in revenue and net income of 153 million reals (BRR). While some key export markets were challenging, domestic sales were up 11 per cent.


The Company has now been assigned an investment grade rating by all three leading rating agencies.

BRF ended the first quarter 2012 reporting net sales of BRR6.3 billion, a year–on–year increase of 5.3 per cent.

Quarterly gross profits were BRR1.3 billion, a decline of 13 per cent, primarily reflecting the challenges of the overseas market which saw a significant decline in prices. Net income in the quarter was BRR153.2 million while EBITDA reached BRR532 million, corresponding to a margin of 8.4 per cent, compared with BRR816 million in the preceding year, same quarter, and a margin of 13.6 per cent.

The Company’s results reflected the challenging scenario in the export market, as had already been observed in the fourth quarter of 2011. Some key markets such as Japan and the Middle East continued to suffer from a process of adjustment and running down of levels of inventory and merchandise flows. Export revenues in the quarter were BRR2.4 billion, practically unchanged as compared with the same quarter last year.

Conversely, the Company reported a good performance in sales to the domestic/retail market amounting to BRR3 billion, a growth of 11 per cent, in spite of below–forecast consumption in the Brazilian retail sector overall.

Similarly, the food service segment reported a good performance posting an increase in net sales of 10.4 per cent. During the period, the Company launched 11 products between ‘in natura’ and processed lines for the major global networks, a savoury snacks platform, a grill line and rotisserie products.

The Company also achieved an investment grade risk rating classification from all three principal world rating agencies. In their assessment, the agencies emphasized competitive advantages such as brand, distribution, corporate governance and financial soundness, among others. Between the months of March and April, Standard & Poor’s and Moody’s assigned an investment grade rating to the Company while Fitch Ratings reiterated its rating first issued a year ago.

Thursday, May 03, 2012
Promotion Aimed at Driving Down Pork Prices
TAIWAN - The Council of Agriculture (COA) has launched a pork promotion campaign, with discounts of 20 percent being offered on frozen products to help drive down the retail price of pork.


A total of 50 supermarkets run by agriculture associations in New Taipei City, Greater Kao-hsiung and Pingtung, Penghu and Kinmen counties are participating in the sale of frozen pork products, Council of Agriculture Minister Chen Bao-ji said, reports TaipeiTimes.

Wholesale hog prices have dropped significantly — to less than NT$50 per kilogram — because of a supply glut, but retail prices have not reflected the -decline and hovered around NT$200 per kg, Mr Chen said.

The council plans to review the campaign every two weeks and see whether the sales need to be expanded, he added. More stores, including supermarket chains and warehouse retailers, will participate in the second wave of sales tomorrow, which will bring the total number of stores participating to more than 800, Mr Chen said.

The campaign will allow consumers to buy pork at discounted prices, while helping swine farmers resolve a supply glut, said Hsu Kuei-sen, head of the council’s Department of Animal Husbandry.

Meanwhile, the council is carefully assessing the oversupply problem, as well as discussing with farmers the number of hogs that need to be slaughtered, Mr Hsu said.

Before a consensus on the number can be reached, the ministry needs to calculate the number of swine exceeding limits set for each city and county, Hsu said, a task he said would be finished tomorrow.

In order to stabilise pork prices, the department has proposed that 60,000 pigs be slaughtered between May and July, but farmers want that number boosted to 100,000, Mr Hsu said.

A final decision will be made at a meeting on Monday between the department and a major swine breeding association.

Thursday, May 03, 2012
Weekly Roberts Market Report
US - Corn and soybean futures closed up on Monday, writes Michael Roberts.

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

CORN futures on the Chicago Board of Trade (CBOT) closed up on Monday. The JULY’12 contract closed at $6.342/bu; up 8.75¢/bu and 12.25¢/bu higher than last Monday’s close. The DEC’12 contract closed at $5.432/bu; up 4.5¢/bu but 2.25¢/bu lower than last report. Fund buying off the strong rally last week and spillover from soybeans were supportive. Exports were bearish with USDA putting corn-inspected-for-export at 24.921 mi bu. This is below the 34 mi bu needed to stay on pace with USDA’s export projection of 1.7 bi bu.

The national average corn basis is at 4.0¢/bu over July futures indicating that the export pace has slowed due to the lack of corn available to end users. Concerns about strong demand draining supplies continue to support corn futures. Cash corn was steady-to-firm on slow farmer selling. USDA put corn crop progress at 53% vs. 28% last week and the 5-year average of 27% for this time of year.

SOYBEAN futures on the Chicago Board of Trade (CBOT) closed up on Monday. The MAY’12 contract closed at $15.030/bu; up 6.25¢/bu and 68.75¢/bu higher than last report. NOV’12 futures closed at $13.810/bu; up 19.0¢/bu and 36.75¢/bu lower than a week ago. Late buying, strengthening inverse-to-new-crop spreading, and bullish soybean fundamentals were supportive. Given both May and July contracts closed above $15/bu increased technical buying is expected. Exports were bullish with China ordering another 220,000 tonnes (4.4 mi bu) for 2012-13 delivery. USDA put soybeans-inspected-for-export at 15.45 mi bu. vs. the 11.4 mi bu needed to stay on pace with USDA’s 1.29 bi bu projected demand for 2012.

As of Sunday, soybean seedings have exceeded the 5-year average by 7% with USDA putting plantings at 12%. Fundamentals are bullish amid concerns that 2013 stockpiles of soybeans won’t be large enough to keep up with strong demand, particularly with South American production reduced drastically by drought.

WHEAT futures in Chicago (CBOT) closed up modestly on Monday. The MAY’12 contract closed at $6.476/bu; up 5.5¢/bu and 22.75¢/bu higher than this time last Monday. JULY’12 wheat futures finished at $6.544/bu; up 4.5¢/bu and 22.0¢/bu higher than a week ago. Futures were behind nearly all session until near the end when funds jumped in to buy late in the session. Spillover buying from the surge in other grains; thin commercial buying; feed-wheat demand; and talk of freeze damage to a portion of the SRW crop were supportive. For the week ending April 29 USDA put the Winter wheat crop in good-to-excellent condition at 34% vs. 58% the previous week. USDA put wheat-inspected-for-export at 19.831 mi bu vs. the 18.4 mi bu needed to stay on pace with USDA’s 1.0 bi bu demand projections for 2012. Spring wheat planting continued at a quick pace with USDA putting wheat seedings at 74% vs. 57% last week and

DAIRY CLASS III futures on the Chicago Mercantile Exchange (CME) closed mixed on Monday with nearby’s up and deferreds down. APR’12DA futures closed at $15.73/cwt; even with Friday’s, as well as last week at this time close. The MAY’12DA contract closed at $14.94/cwt; up $0.06/cwt and $0.15/cwt higher than a week ago. JULY’12DA futures closed at $14.74/cwt; up $0.05/cwt but $0.03/cwt lower than last report. Class III May through August contracts closed higher while September and later contracts finished lower. Declining milk prices and high feed prices have tightened income quite a bit. This has moved many producers to negative cash flow. The preliminary April 2012 milk-feed price ratio is 1.45 according to USDA’s agricultural prices report released today. A milk-feed price ratio of 1.45 means that one pound of milk can buy 1.45 lbs of 16% protein dairy feed. This is the lowest since June 2009 when dairy farm profitability hit rock bottom. Factors in the milk-feed ratio include: the All Milk Price at $16.90/cwt; down $0.30/cwt from last month; prices received for corn at $6.14/bu, down 21.0¢/bu; soybeans at $13.80/bu, up 80.0¢/bu and alfalfa at $207/ton, $7/ton higher. The milk margin ending March 2012 was placed at $8.792/cwt. See chart.



According the USDA’s Production, Disposition, and Income report, the average milk production/cow totaled 21,345 lb/cow, 197 lb higher than 2010. Cash receipts from marketings were placed at $39.4 bi; 26% over 2012. Producer returns average $20.35/cwt, 23% higher than 2010. 2011 was a good year but do not reflect what is going on now. CME spot barrel cheese closed down $0.75 on four trades from $1.4250-$1.4275/lb. Blocks were unchanged with no trading. Spot butter was offered $0.05/lb lower and closed at $1.3550/lb. Fundamentally there is more milk volume right now than the pipeline can handle. Class III futures were: 3 months out = $14.96/cwt ($0.07/cwt over last report); 6 months out = $15.15/cwt ($0.02/cwt lower than a week ago level); 9 months out = $15.38/cwt ($0.09/cwt less than this time last week); and 12 months out = $15.43/cwt ($0.16/cwt under a week ago).

LIVE CATTLE futures on the Chicago Mercantile Exchange (CME) finished up on Monday. JUNE’12LC futures closed at $114.150/cwt; up $1.300/cwt but $0.425/cwt lower than last report. The AUG’12LC contract closed at $116.200/cwt; up $0.650/cwt but $2.400/cwt under a week ago. DEC’12LC futures closed at $124.050/cwt; up $0.600/cwt but $2.975/cwt lower than last week at this time. Easing fear over the U.S.’s 4th case of mad-cow disease and June futures’ discount to current cash prices were supportive. Technical buying was noted. The April contract expired during the session. Investors were relieved on the lack of new developments related to the BSE case disclosed last week. The animal appears to have been infected with a “naturally” forming strain of the brain-wasting disease and didn’t pose a threat to the U.S. meat supply. Indonesia was the only country to move to ban U.S. beef imports. Last year Indonesia bought 1.4% of U.S. beef exports. Late Monday USDA put the boxed beef cutout at $190.40; up $0.29/cwt. Cash cattle markets were quiet Monday with no bids reported through mid-day. Monday’s slaughter was placed at 115,000 head vs. 120,000 last week and 129,000 head a year ago. Year-to-date processing is down 5.1% from last year. Recent gains in wholesale beef prices off last week’s decline in cash cattle prices have improved processor margins. According to HedgersEdge.com, the average packer margin was raised $27.95/cwt from this time last week to a positive $8.75/head based on the average buy of $121.06/cwt vs. the breakeven of $121.75/cwt. Until last week the index had been negative since mid-September. Late Monday, April 30, USDA put the 5-area average price at $122.119.80/cwt; $2.68/cwt lower than this time last week. See graph.



FEEDER CATTLE at the CME closed up on Monday. MAY’12FC futures finished at $149.825/cwt; up $1.050/cwt. The AUG’12FC contract closed $1.650/cwt higher at $153.725/cwt; $1.650/cwt under last report. Monday’s estimated receipts at the closely watched Oklahoma City market were put at 9,800 head vs. last week’s 9,014 head and 7,805 head this time last year. Feeder steers and heifers were weaker at $2-$4/cwt lower. Stocker steers and calves were $4-$8/cwt lower. Stocker heifers and heifer calves were steady to $4/cwt lower. Demand was considered moderate for all classes. Cattle coming off pastures were in fleshy conditions. Quality was average. The CME feeder cattle livestock index was placed at 148.40; down 0.45 and 1.560 lower than this time last week. See chart.


LEAN HOGS on the CME finished mixed on Monday. May-August 2012 and May 2013 and later finished down while the December 2012 through April 2013 contracts finished up. MAY’12LH futures closed at $83.675/cwt; down $1.825/cwt and $4.850/cwt lower than this time last week. AUG’12LH futures finished $0.400/cwt lower at $87.600/cwt and $1.350/cwt lower than last report. Wholesale prices 16% lower than this time last, technical selling, and weak pork demand well off last year’s record-setting pace pressured prices. Non-commercials are now net-short in aggregate positions. Seasonal strength hasn’t materialized. Poor processing margins off weak wholesale prices will continue to weigh on prices. Light volume for cash hogs on Monday was noted with top hog prices expecting to range from $54-$58/cwt on a live basis later this week. USDA on Monday estimated the daily processing at 410,000 head vs. 413,000 head last Monday and 393,000 a year ago. USDA put the pork carcass cutout at $77.94/cwt, off $1.05/cwt but $0.53/cwt higher than a week ago. According to HedgersEdge.com, the average packer margin was lowered $0.35/hd to a negative $11.60/head based on the average buy of $59.21/cwt vs. the breakeven of $55.05/cwt. The latest CME lean hog index was estimated at 82.53; down 0.15; but 3.52 over last report.

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).




 

Monday, April 30, 2012
Thailand Bans US Beef
THAILAND - Thailand is suspending imports of beef from the United States following the discovery of mad cow disease in California, says Tritsadee Chaosuancharoen, director-general of the Department of Livestock Development.


Washington reported on Tuesday that a cow in California had been infected with Bovine Spongiform Encephalopathy (BSE), commonly known as mad cow disease.

Imports of US beef have been temporarily halted until the department is assured that it is safe, Dr Tritsadee said on Friday, reports BangkokPost.

The suspension is in accordance with the Animal Epidemics Act, even though the imports of boneless beef cuts from animals under 30 months of age are not affected, she said.

"Thailand is safe [from mad cow] and is not at risk definitely because the Livestock Development Department has measures to prevent and control the disease," she added.

"We strictly inspect the quality and sources of foreign beef and closely monitor disease outbreaks in the country and overseas."

Dr Tritsadee said Thailand would stop importing beef and lamb from countries hit by mad cow disease immediately.

In 2011, the country imported 58,969 kilogrammes of boneless beef cuts from the US worth 29 million baht. In the first quarter of this year, the country imported 37,599kg worth 18 million baht.

Indonesia is the first country to suspend imports of US beef.