Friday, April 20, 2012
India to Become World's Largest Beef Exporter

INDIA - India is forecast to become the world’s leading beef exporter in 2012 due to an expanding dairy herd, efficiency improvements, increased slaughter and price-competitiveness in the international market particularly compared to Brazil.


Exports currently account for 44 per cent of production.

According to the USDA Livestock & Poultry: World Markets & Trade, India’s exports are exclusively deboned frozen buffalo meat (carabeef) which is included in USDA’s global estimates of beef (bovine) meat production.
 
Export sales have made significant inroads in the Middle East, North Africa and Southeast Asia (key Brazilian markets) as all carabeef is lower priced and produced according to halal standards.
 
In 2012, additional export orientated slaughterhouses are expected to come on line, increasing supplies. Production gains are largely destined for the export market. Domestic demand is constrained by cold-chain facilities and consumer preference for non-bovine proteins such as poultry products, dairy products and pulses.
 
India is the only country expected to significantly increase beef production in 2012 to 3.5 million tonnes. Australia are some way behind India forecast to produce 2.2 million tonnes (an increase compared to 2011 production), whilst the US stays at the top beef production at 11.5 million tonnes.

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


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

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

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

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

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

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

Friday, April 20, 2012
Steady Growth in Rosderra's Pig Exports to China
IRELAND - Irish meat processor Rosderra is one of the companies with an existing relationship with the giant Yurun Group that is based in Nanjing. The company has been selling pigmeat into China since the country gave final approval to Ireland to resume exports in 2007.


Independent.ie reports that Rosderra's exports have grown steadily to China during this period and the total for 2011 topped €30m.

Rosderra boss Jim Hanley expects trade with China to expand further this year as the company continues to broaden its customer base.

"We will ship between €5m and €6m worth of pork in the next six weeks to China," Mr Hanley said.

He points out that the company exported 34,000 tonnes of pork produce to China last year, which accounted for between 11pc and 13pc of their total output.

While Britain remains the primary export market for Irish pork and bacon, China has overtaken our near neighbours in terms of importance for Rosderra.

Mr Hanley explains that imports of pork into China exceeded 126 million tonnes in 2011, the highest level ever recorded. And this is despite over 660 million pigs being slaughtered annually by China for domestic consumption.

With pork continuing to be the primary protein source for the country's urban population, the volume of imports is forecast to increase significantly over the next 10 years.

Thursday, April 19, 2012
Korean Cattle Slaughter Up 50 Per Cent
SOUTH KOREA - Korean government statistics released this week quantified the magnitude of the increase in Korean beef production so far in 2012, with total cattle slaughter for January and February up 50 per cent year-on-year, at 176,610 head.

Interestingly, while the year-on-year increases for the first two months of 2012 is compared to a disrupted period in 2011 (due to the foot and mouth disease outbreak); it was still 34 per cent above the same two month period in 2010, reports Meat and Livestock Australia.

A significant component of Korean slaughter so far in 2012 has been an increase in Hanwoo cow numbers, at 66,287 head – up 83 per cent year-on-year and 36 per cent on 2010. Hanwoo cows made up 38 per cent of total cattle slaughter (including Hanwoo, beef cattle and dairy), with assistance from government programmes aimed at helping to lower herd numbers, given the prolonged period of lower cattle prices.

Total Korean beef imports in the first two months of 2012 decreased seven per cent year-on-year, but were still 10 per cent above the same period in 2010 (KITA).

Thursday, April 19, 2012
Brazil Beef Export Revenue to Grow 20 Per Cent

BRAZIL - Brazil beef exports will bring in $6 billion this year, says the Brazilian Association of Meat Exporters (ABIEC).


President of ABIEC, Antonio Jorge Camardelli said that this is an increase in revenue of 20 per cent compared to 2011.
 
Volume exported is estimated to increase by 10 per cent.

Mr Camardelli said he is extremely optimistic about the export market for beef.
 
"In the first quarter of 2012, despite a slight drop in value and volume of beef exported, the price of beef per tonne, increased 1.74 per cent."
 
He said that the three pillars, on which beef exports rely, the market, supply and foreign exchange rates are all improving.

As for foreign exchange rates, the US dollar is becoming more and more favourable to Brazilian exporters.

Mr Camardelli said that despite European demand for meat not increasing, output is falling, which leaves plenty of opportunities for Brazilian exports. "We are also looking at other markets, such as the Middle East," Mr Camardelli said.
 
Monthly slaughter in Brazil is currently around 1.8 million head per month. Beef production in Brazil is increasing, he said.

Despite having a positive outlook, the value beef exports to Iran fell 92 per cent in the first quarter of 2012, however Mr Camardelli said that beef export values to the US were up 200 per cent.
 
Mr Camardelli also said that demand for beef was growing in Egypt, Libya, Venezuela and Angola.

Thursday, April 19, 2012
Import Restrictions on Soy Would Affect Farmers
SPAIN - The Spanish government is discussing whether or not it should impose import restrictions on Argentinian products, including soybeans, in retaliation to an announcement by the Argentinian government that it will nationalise oil company, YPF.


Buenos Aires has put forward a bill that would allow it to take a controlling stake in YPF, a company owned by the Spanish energy giant, Repsol.

Soybeans and ethanol are two of the products that the Spanish government is looking at placing import restrictions on.

Spain imports between three to four million tonnes of soy a year, of which 85 per cent comes from Argentina.

Agricultural organisation, ASAJA of Castile and Leon has said that it will support the Government if they pursue the right to impose severe restrictions on imports of food products from Argentina. However, the group warned that Spain depends heavily upon soybeans and other protein products for animal feed, and therefore may have to seek other markets.

With the Spanish livestock sector currently suffering from poor profitability, high producers costs and drought, any action that pushes up the costs of production for producers should be prevented, ASAJA said.

The Union of Small Farmers and Ranchers (UPA) has said prohibiting exports of Argentinian soybeans could have serious negative effects on the livestock industry.

UPA has said that it will be difficult to find alternative sources of soy.

The organisation has urged the European Union and its Member States to consider the "irresponsible attitude" of Argentina in this case and rethink their positions ahead of the negotiation of trade agreements with Mercosur. Farmers and ranchers are adversely affected by such agreements, which tend to prioritise the interests of other sectors against the producers of food and raw materials.

UPA warned that if imports of soy were to be stopped, there would be a serious shortage, which would push prices up to unbearable levels for producers. It highlighted that the drought had made producers even more dependent on feed as grass growth was minimal.

Thursday, April 19, 2012
Joint Efforts to Address Animal Welfare
GLOBAL - FAO recently convened the First Global Multi-stakeholder Forum on Animal Welfare, with participants representing the food industry, farmers, the civil society, inter-governmental organizations, governmental authorities and the academia, reflecting the growing conviction that animal welfare is an issue of widespread interest.


According to FAO, the Forum was organized with the support of the European Economic and Social Committee and the European Commission. The meeting was a stocktaking experience convened to share and scale-up best ideas, practices and innovative solutions to the complex animal welfare challenges. It provided a comprehensive overview on activities addressing animal welfare and on the variety of stakeholders providing them.

The Forum was attended by over 250 participants from 35 countries (including Canada, USA, Brazil, Chile, Uruguay, Suriname, almost all EU ones, Norway, Switzerland, Turkey, Israel, South Africa, Kenya, the Gambia, China, Mongolia, Malaysia, India, Australia and New Zealand). It included a wide range of speakers, representing governmental institutions (e.g. Norwegian, Australian, Israelian, and Surinamese authorities); private sector representatives like the USA National Milk Producers Federation (NMPF), the Animal Transport Association (ATA), the International Wool and Textile Organization (IWTO) and GLOBALG.A.P.; civil society organizations like the World Society for the Protection of Animals (WSPA), the Royal Society for the Prevention of Cruelty Against Animals (RSPCA), Animals' Angels, the Africa Network for Animal Welfare (ANAW), the Pan African Animal Welfare Alliance (PAAW), etc.; academic, research training centres; professional organizations and inter-governmental agencies.

The meeting gathered a plethora of interesting experiences and modalities of partnership to enhance animal welfare, but also showed the constraints faced by all stakeholders. There was a clear commitment of all stakeholders to participate in the process to enhance animal welfare in the context of a responsible and sustainable development of the livestock sector.

FAO, as an honest broker, will continue to facilitate the joint, multi-stakeholder approach through specific activities to enhance partnerships that will take into account similar existing initiatives and scale up successful experiences to provide a platform to develop a global, common, road-map for animal welfare.

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


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

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

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

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

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

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

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

Wednesday, April 18, 2012
Market Access for Irish Beef to China
IRELAND - Speaking in Beijing earlier this week, the Minister for Agriculture, Food and the Marine Simon Coveney welcomed the agreement to set up a Joint Working Group on market access for Irish beef to the Chinese market involving the Chinese Inspection and Quarantine Service (AQSIQ) and his Department.


Minister Coveney said: "This is a major step forward and one of the few such joint working groups which have been established by the Chinese authorities."

He also said that he was very pleased that Vice Minister Wei from AQSIQ will visit Ireland from 13-16 June when, it was agreed, beef market access will be discussed further. The Minister expressed satisfaction at the priority and engagement of the Chinese authorities on this important issue for Ireland, which has been under negotiation for some time.

These developments follow the agreement and signature today of two separate Memoranda of Understanding between Minister Coveney and Minister Zhi Shuping of AQSIQ and Vice Minister Niu Dun of the Ministry of Agriculture. The signing of the Memorandum of Understanding on agricultural co-operation provides a new five year framework for exchanges of expertise in the agriculture and fisheries sectors. Minister Coveney said that Vice Minister Gao Hongbin will visit Ireland in May in a continuing build up of increased cooperation between the respective Ministries of Agriculture. Vice Minister Niu Dun also responded favourably to Minister Coveney’s invitation to visit Ireland again in the near future.

The Memorandum of Understanding with AQSIQ was highly significant, providing for the first time for cooperation across the full range of sanitary and phyto-sanitary issues in relation to agriculture and food and fisheries products. The Minister said that this will ensure clear communication channels between his Department and AQSIQ thereby facilitating trade and the exchange of technical data.

Minister Coveney said that the formal agreements reached today as well as the visits of Chinese Ministers will lead to an even greater understanding of the sustainable nature of Irish agriculture and food safety controls that are integral to the production of quality Irish food products. He concluded by saying that he was very pleased with the outcome of the visit on beef and looked forward to continuing dialogue with his Chinese counterparts which will facilitate increased trade with this expanding market.

Wednesday, April 18, 2012
Chinese Olympics Athletes Stop Eating Meat
CHINA - Chinese athletes are avoiding eating meat ahead of the Olympics Games out of fear that domestic pork, beef and lamb could contain substances banned under anti-doping rules.


According to Channelnewsasia.com, they are instead relying on protein powder and fish to meet the high protein needs of top-class athletes, the Yangtze Evening News reported, as China goes after another successful haul of medals.

At least 196 competitors under China's National Aquatics Centre, which governs swimming, diving and other water sports, have been off meat for the past 40 days, the report said. The London Games are 100 days away.

China's food production industry is notorious for frequent scandals involving producers who illegally or excessively use various additives in the raising of livestock.

Authorities are particularly concerned that athletes could unwittingly consume clenbuterol, which is banned for food production in China but has been found in contaminated pork.

Clenbuterol can speed up muscle-building and fat-burning to produce leaner meat but has also been used by athletes as a performance-enhancer. It is banned by the World Anti-Doping Agency.

China's 2008 Olympic women's judo gold medallist Tong Wen was banned in 2010 for two years for testing positive for the substance.

Chinese media reported earlier this year that national sports authorities had banned athletes from consuming meat outside of state training facilities.

Officials with the National Aquatics Centre and the sports ministry could not immediately be reached for comment.

Authorities have tightened supervision at training centres to ensure no clenbuterol-tainted food slips through and have launched checks of local produce near such centres, the Yangtze Evening News said.

"The kitchen is probably the most secure place at the Jiangsu province sports bureau... locks are installed on entry doors and only (kitchen) workers can enter," it said.

Wednesday, April 18, 2012
China Expects Slowing Farm Produce Price Growth
CHINA - China's farm produce prices are likely to fall back to 10-percent growth this year as supplies of most agricultural products are becoming more plentiful, a think tank forecast on Wednesday.


As the Chinese Academy of Social Sciences (CASS) released a new green paper on the issue, it predicted that grain prices are likely to grow 7 per cent and livestock prices may jump 12 per cent year on year in 2012.

It is estimated that fishery products will see a 5-per cent rise in price, according to the paper, which analyzes the development of China's rural regions in 2011 and predicts their development in 2012.

China's food prices, which account for roughly a third of the weighting in calculating the consumer price index (CPI), the main gauge of inflation in China, surged 11.8 per cent year on year in 2011, pushing the index to grow 5.4 per cent, well above the government's control target of 4 per cent.

Prices of pork, China's favorite meat, saw great rises in the middle of last year, stirring public concerns of stubbornly high inflation in the country. However, the CPI has shown signs of easing in the first quarter of 2012.

It rose 4.5 per cent in January and narrowed to a 3.2-per cent increase in February before rebounding to 3.6 per cent in March. The government aims to keep the CPI increase at around 4 per cent this year.

Wednesday, April 18, 2012
CME: Corn Plantings off to a Strong Start
US - With spring weather (some would say summer weather) across the Midwest, crop plantings are off to a strong start, write Steve Meyer and Len Steiner.


But as the chart below shows, even with all the news stories of early plantings, today we are still near the levels we saw back in 2010. USDA reported that for week ending April 15, US farmers had planted about 17% of the corn crop. This compares to 5% planted for the same period last year and 5% for the five year average 2007-11. Trade reports indicate that market participants were anticipating plantings to be somewhere between 17— 20% so the survey results will likely could be construed as neutral to maybe slightly bullish by futures markets. Market participants in the grain complex will be following closely the day to day changes in weather and the impact this could have on both field work as well as on the crop that was planted much earlier than normal and could be subjected to any late freezes. Much of the advanced plantings has taken place in the Eastern Corn Belt (ECB). Illinois plantings currently stand at 41%, compared to just 8% a year ago and 6% for the five year average. Indiana plantings are at 24% compared to a mere 2% last week. Western Corn Belt plantings, which includes big corn producing states such as Iowa, are not as far along. Iowa plantings are currently pegged at just 5% compared to 1% last year and 3% for the five year average.

For livestock producers, the early start of field work and lack of any weather pressures to this point certainly are good news. Also positive from a livestock producer point of view is the good progress in the wheat complex, which should bring more wheat into the feed complex later this summer. For the last two weeks we have been hearing about the great shape of the wheat crop and the fact that the crop was heading much earlier than normal. The latest USDA report appears to support the anecdotal reports. For the week ending April 15, 29% of the US winter wheat crop was reported to be heading. This compares to 11% last year and just 8% for the five year average. This is tremendous progress which could bring a wheat crop to market much earlier than before and could help boost supplies IF there is no weather event in the next few weeks. A crop that is heading this early is vulnerable to a late April freeze but should this not occur, the chances of a bigger than expected supply become more realistic. At this point, the market is pegging new crop corn at a $5.30/bushel for December. The debate in the trade is whether the market has properly accounted for the risk of weather disruptions or if the fact that extra long positions among both producers and funds makes the market vulnerable to a downward correction should weather continue to be a non-event. At this point, the crop progress is welcome news for livestock producers but there is plenty that can happen between now and July that could affect the crop. USDA will issue its first official forecast of the corn crop on May 10., a forecast that will likely account both for the early plantings, the expanded acres and a baseline yield, likely doubling ending stocks of 2011/12.

Wednesday, April 18, 2012
Pork Commentary: Pork Industry Round Up?
CANADA - The Enviropig, developed over a decade ago at the University of Guelph, has had its ongoing funding stopped by the Ontario Pork (Producers group), writes Jim Long.

Jim Long is President &
CEO of Genesus Genetics.
The Enviropig was genetically altered by an added gene of a rodent which in turn lowered the Enviropig’s phosphorus production. The end of funding for this ill conceived project has been a long time coming. Ontario farmers had funded this loser with too much money for too long. We can remember telling the well meaning professor, who developed this project over a decade ago, “Your pig is dead on arrival. Not one packer, retailer or restaurant is going to use or sell pork with a rat gene in it!” Enough said. Sometimes you wonder if anyone thinks the end game before they squander time and resources.

The US Food and Drug Administration (FDA) are encouraging producers not to use antibiotics in livestock production, this as a defensive measure by FDA. Pressure from pseudo-scientists/congress people, are pushing for antibiotic restrictions beyond voluntary control. Such restrictions in Europe have significantly increased the cost of meat production and food costs.

US Lean Hog Price Futures took a whack at the end of last week with June closing at 90.525 lean a lb. Current lean hog futures would, in our opinion, reflect little profit in the coming months with current feed prices. Lots of trading of dollars with little show for it.

We expect now that Easter is over and we move in to the seasonal hog supply decline to see a rally in cash hog prices. The mildest weather in history has lead to higher carcass weights which has increased pork tonnage. As hot weather comes, we expect a rapid decrease in carcass weights. In our opinion hogs are not backed up. All hogs that need to be marketed are finding homes.

Corn is being planted early. Soil temperatures in the 60F plus range in Iowa, Minnesota, Illinois etc., are high for this time of year. The earlier corn gets planted the better chance of higher yields and more total acres. We need a big crop for supply and possible chance of lower prices.

Sun Capital, as US investment firm, announced last week it was selling their Burlington Ontario hog slaughter plant and business called Fearmans to Sofia Foods of Canada. The Fearmans plant has a capacity of 42,000 head a week, (it’s not running at capacity). Sofia Foods markets pork, turkey and chicken. It has about 1200 employees prior to this acquisition. We assume it’s good news for Canadian producers. No one buys something without seeing value. Sofia is knowledgeable in the meat and pork business. They are Canadian.. Sun partners, a huge investment firm, have a history of flipping businesses for a profit. (Good for them.), they came, they left. Life goes on.

As Cargill goes, as goes Agriculture? Cargill in the first nine months of their fiscal year, had earnings from continuing operations of $1.1 billion. Not as good as the previous year but still pretty swell. These profits are a reflection of not only U.S and Canada but Cargill’s global reach and involvement. Everywhere we travel in the world, Cargill is there. Can still visualize travelling out in the middle of nowhere in Russia, heading into town miles from a major center coming up on a huge elevator, painted on the side “Cargill”. We thought we were the first westerners there, not by a long shot. Cargill is a great example of American know how, aggressiveness and push to success.

Reports this last week say China is going to cut back pork inputs, maybe. Hog prices in China are around $1.07 US liveweight a lb, U.S liveweight prices are $0.61 US. a lb. That is about a $0.46 a lb difference or about $124 per head. We do business with China. They understand the economics of business. We would bet the farm a $124 per head difference for Chinese entrepreneurs, packers, meat distributors keen on importing with such a huge margin to work with. Also the Chinese proof of hogs is a direct reflection of the real supply versus demand. Chinese prices of $1.07 lb hogs = strong demand = hog shortage. We expect exports will be strong to China for the next few months supporting US hog prices.


Author: Jim Long, President & CEO, Genesus Genetics 

Wednesday, April 18, 2012
March 2012 Hog and Pig Report Summary
US - 30 March was a very busy day for USDA reports with a crop plantings report and a hog and pig report released on the same day, writes Shane Ellis.

 
Most analysts were expecting the hog inventories to be up slightly from a year ago with the evidence that a controlled expansion continues in the industry. Those expectations were more than satisfied as hog numbers started to rise with the report of a 1.9 per cent increase in market hog numbers and slightly more than half of a per cent increase in breeding swine numbers. Nationally there are 64 million head of swine of which 5.8 million head are for breeding and 59 million head destined for market. The table below summarizes the report of swine inventories nationally and in Iowa.


Iowa market swine numbers increased by a considerable 4.6 per cent while the state’s breeding numbers declined by almost 2 per cent. There are now 17.9 million head of market hogs in the state. Importation of feeder pigs from other states continues to increase as Iowa maintains its status as the location with the lowest cost of grow-finish weight gain. The state’s sow inventory continues to decline as the advantages of using resources to grow and finish hogs outweigh those of farrowing sows.

Pork production is expected to up almost 2 per cent during the year. Market hog numbers are up 2 per cent and lean hog carcass weights have been very consistent with those of a year ago. The current inventory of light weight market hogs will result in a notable increase in pork supplies during the late spring and summer months. Farrowing intentions are down for the second and third quarters of this year. So while the number of litters will be down during the middle half of the year, the continued increase in litter size is expected to offset a portion of that decline in farrowings. While in February expectations were that hog prices would be robustly stronger than a year ago, producers may have already seen tight enough margins and a decline in consumer confidence to tail back on their farrowing intentions for the next couple quarters. That may turn out to be adventitious to the market, as futures prices for lean hogs began slide lower throughout March on declining beef prices and softer red meat demand. Table 2 contains a summary of the expected per cent change in pork supplies and the forecasted lean hog price in the next four quarters. Compared to the forecasted prices from the ISU forecasting model the futures market was perhaps a little bearish for the rest of the year.

 

Wednesday, April 18, 2012
Another Genesus Nucleus in China
CHINA - Sichuan Giastar Group, a large feed manufacturer, breeding stock producer, and integrator, was recently in Manitoba to purchase a nucleus herd from Genesus.
 

Genesus will offer ongoing technical support to Giastar, as they work towards their goal of one million pigs produced. The Genesus nucleus will replace a PIC unit and drive 7000 sows of GGP and GP production.



Pictured are Left to right - Lambert Houwen, GM Genesus, Xiang Gui You - Chief Veterinarian, Chendu Giastar Swine Husbandry Co. Ltd. Huang Li Hua - General Manager, Muyuan Stock Breeding Science and Technology Ltd. Tang Jie (Frank) - Vice General Manager, Chendu Giastar and Mike Van Schepdael VP Genesus.