Wednesday, April 18, 2012
Brazilian Hog Markets
BRAZIL - Pork exports in 2011 at 516,419 tonnes were a shade below the total for 2010 of 540,417 tonnes, but total receipts increased by 7 per cent to US $1,435 million. However, exports in 2012 are promising well, and January figures show an increase of 8.5 per cent in volume and 4.1 per cent in value compared to January 2011, writes Martin Riordan, Sales and Service Genesus Brazil.
 

New markets are opening for Brazilian pork exports. Towards the end of 2011, the USA finally approved imports from the state of Santa Catarina, one of the biggest pig producing states in Brazil and the only state free of foot and mouth disease without vaccination. Although it is not expected that exports to the USA will be high, this approval is seen as a quality stamp for Brazilian pork and should help to open other markets.

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

China is another market which opened its doors to Brazilian pork in late 2011. The first shipments took place at the end of the year, and in 2012, although still timid, they are increasing. China is seen as a huge potential market for Brazil. Although only three plants have been certified so far by the Chinese authorities, it is expected that more plants will be approved as the trading relationship grows.

2011 saw a shift in the major destinations of exports. For many years Russia was the main destination and even recently accounted for more than 50 per cent of exports. But with a ban on imports from Brazil imposed during 2011, volumes fell and Russia took only 24.5 per cent of total exports in 2011. Hong Kong moved into first position, with 25.12 per cent, with Ukraine in third position with 11.95 per cent, followed by Argentina with 8.14 per cent. It will be interesting to monitor where China positions itself in the destination table of exports for 2012. Almost certainly, it will move up the ranks over coming years.

Of the four biggest importers of pork in the world, Brazil exports only to one of them, Russia. It still has to open the markets of Japan, South Korea and Mexico. The difficulty in opening markets is largely due to two factors: sanitation and politics. Animal sanitation for export products is the responsibility of the federal government, which has not shown itself to be particularly competent at imposing health controls over recent decades. However, there has been a slow advance which has contributed to the opening of some markets.

Once health requirements have been satisfied, then come political negotiations, and in this area Brazil has shown little ability at overcoming the protectionist measures which so many countries impose. The country has only recently come to the world commercial stage and has not yet acquired the bargaining skills which seem to be so necessary to open new markets.

However, 2011 was not a good year for independent pork producers in any region in Brazil. ABIPECS, the Brazilian association of pork exporting industries, reports that the number of pigs slaughtered in 2011 rose only between 1 per cent and 1.5 per cent compared to 2010, but the pigs were heavier, adding a further 3 per cent to the meat supply. So, in total, meat supply rose by 4 per cent or more.

At the same time, according to ABIPECS, both domestic and foreign demand fell, putting pressure on pig prices which, during most, if not all, of 2011 were below production costs in most regions. This situation was aggravated by high corn prices throughout the year, increasing producers’ losses.

Poor financial results have been the norm for independent producers almost constantly since the financial crash in October 2008 and an increasing number of producers are throwing in the towel and leaving the business, often with high accumulated debts from their attempts to survive the crisis. This is particularly true in the southern region of Brazil, where the percentage of hogs controlled by the large integrators has grown constantly over recent years.

At the same time, the number of smaller independent plants has fallen, creating a situation where the producer no longer has enough buyers for his hogs to create a market. Once the number of major buyers is down to one, as was the situation in the state of Rio Grande do Sul in recent years, it becomes impossible to get a fair market price. And now, that single buyer has sufficient own production so there are no major buyers left!

The interstate costs of shipping pigs are high, bolstered by state taxes which cannot be recovered. So there has to be a very high price differential between states to make it feasible to ship to another state, and that situation has not existed for a long time.

So far there seem to be few indications that a buoyant market for Brazilian hogs in 2012 will bring prosperity to independent producers. The pig crisis of 2002/2003 illustrated the apparent paradox of an industry which was booming while producers were experiencing one of the worst crises they had ever seen. But the markets for live hogs and for pork products are two different markets. If the live hog market is over supplied while the pork product market is booming, the producer does not reap any benefit.

LMC: Strong Retail Red Meat Sector Last Year in NI

NORTHERN IRELAND, UK - While the vast majority of NI beef is exported to GB or mainland Europe, the retail beef and lamb market in NI remains a small but essential market for the NI industry.

With the retail volume sales of red meat market under pressure in recent months in GB, it is worth considering how the NI retail market is performing by comparison.

In terms of volume sales, the NI meat market generally has been under pressure over the last year (52 weeks ending 18 March 2012). According to Kantar data for NI, volume sales of all meats combined are down by nine per cent. The good news is that despite this decline in overall meat volumes, sales of beef and lamb have been relatively robust.

Volume sales of beef were up by almost one per cent in the 52 weeks ending 18 March 2012, and although lamb sales in NI fell by 3.4 per cent over the same period, this looks positively robust when compared with the 13 per cent decline in volume sales of other meats.

Perhaps the obvious reason for the reduced volumes is higher prices. The average retail beef price in NI rose by 11 per cent to £6.57/kg over in the year ending 18 March, compared to the previous year. The average retail lamb price rose by 13 per cent to £7.54/kg over the same period. By comparison however, the average price of all other meats rose by 80p/kg or almost 20 per cent to £5.09/kg. The rate of price increase for these other meats was clearly much stronger and that helps to explain the improved relative position of beef and lamb which is encouraging.

The net result of rising prices and reduced volumes sales meant that in the year ending 18 March total consumer expenditure on meat generally was up by six per cent, despite the nine per cent decline in sales. Over the same period, retail expenditure on beef and lamb rose by 11.3 per cent and 9.3 per cent respectively. Expenditure on all other meats rose by a modest 3.4 per cent. These figures plainly show that in the NI retail meat market, beef and lamb demand is holding up very well, relative to other meats. Red meat has in fact eaten into the market share of some of those other meats over the course of the last year.

In terms of volumes, beef’s share of total meat sales increased from 28 per cent in the year ending 20 March 2011, to 31 per cent in the year ending 18 March 2012. Lamb’s share of the total meat market was steady at just four per cent of total volume sales in the last year. Beef accounts for just over a third of total retail expenditure on red meat.

 In the 52 weeks ending 18 March 2012, beef expenditure accounted for 36 per cent of all meat sales, up from 34.4 per cent the previous year.

In the last year, 99.5 per cent of shoppers purchased meat. This figure was unchanged from the previous year. Despite strong performance in terms of volume sales and consumer expenditure, beef penetration in NI has been under pressure. The proportion of consumers that purchased beef has fallen by 1.5 percentage points to 92.2 per cent of consumers in the year ended 18 March 2012. The proportion of NI consumers buying lamb has fallen by 2.2 percentage points to 52.1 per cent in the last year.

Beef Prices Fell 19 Per Cent in Last Six Months

PARAGUAY - Since the 15 September cattle prices in Paraguay have fallen 47 per cent following the outbreak of Foot and Mouth Disease (FMD) in the country. The prices of cuts of beef in supermarkets also fell by 19 per cent.


The first outbreak of FMD by the National Quality and Animal Health (SENACSA), was dated as the 17 September 2011. Since then, the last six months have experienced a strong downward trend in prices of cattle in the four large spiker firms: Ferusa, Codega, El Rodeo and El Corral, reports ABC
 
The price of cows, on average, on 15 September 2011 was G. 7,575 per kilogram, while data from the 13 April 2012 shows that the price went down to G. 4,232 per kilogram, a 44 per cent reduction.
 
As for the prices of bulls, the drop is 40 per cent.

The average prices of different cuts of beef fell by 19 per cent.

Tuesday, April 17, 2012
Has the 2011 Corn Crop Been Rationed?
US - Corn prices declined substantially over the past week. May and December 2012 futures have declined by $.26 and $.22, respectively, following the release of the USDA’s WASDE report on 10 April, writes Darrel Good.


Recent weakness in old crop prices started with the USDA’s unchanged forecast of year-ending stocks of 801 million bushels. Following the smaller-than-expected estimate of 1 March stocks revealed on 30 March, the market had anticipated that the April WASDE report would contain a larger forecast of feed and residual use and a smaller forecast of ending stocks. Additional price weakness has been attributed to weakness in the financial markets associated with a slowdown in the Chinese economy and concerns about the Spanish debt as well as prospects for increased corn acreage in China. New crop prices continue to reflect the larger-than-expected planting intentions revealed on 30 March, an early start to the planting season, and the recent improvement in soil moisture conditions in a large part of the Corn Belt.

With prospects for relatively small ending stocks, it is important to continue to monitor the rate of corn consumption to confirm that the necessary rationing is occurring. In the Feed Outlook report released on 12 April, the USDA estimated feed and residual use of corn during the first half of the marketing year at 3.39 billion bushels, 238 million less than during the same period last year. The entire decline was in the first quarter of the year. Use in the first half of the year represents 73.7 per cent of the projected use of 4.6 billion bushels for the year. That per centage is large by historic standards, but less than the very unusual 75.7 per cent of a year ago. To reach the projection for the year, use during the last half of the year needs to be 46 million bushels larger than that of a year ago. On the surface, a year-over-year increase in feed and residual use from March through August seems unlikely given the reduction in broiler production that is occurring, expectations for fewer cattle on feed this summer, expectations of increased wheat feeding this summer, and perhaps a bit more August harvested corn in the South. However, estimated feed and residual use of corn was unusually small during the last half of the 2010-11 marketing year. Many continue to believe that use was underestimated during that period due to an overestimate of 1 September 2011 stocks. Considerable uncertainty about the on-going rate of feed and residual use will continue until the 1 June stocks estimate is released on 30 June.

The USDA also maintained the projection of marketing year corn exports at 1.7 billion bushels. That forecast is 135 million bushels, or 6.7 per cent less than exports of a year ago. Through 5 April, cumulative export inspections, adjusted by Census Bureau export estimates through February this year and March last year, were 6.9 per cent less than the total of a year ago. To reach the USDA projection, exports during the last 21 weeks of the year need to total 703 million bushels. As of 5 April, the USDA reported unshipped export sales of 408 million bushels. New sales need to average about 14 million bushels per week in order for sales to reach 1.7 billion bushels. For the 5 weeks ended 5 April, new sales average 29.9 million bushels per week. It appears that sales are on track to reach, or slightly exceed, the USDA projection. The rate of shipments, however, needs to increase by about 5 million bushels per week from the most recent 5-week average pace of about 28.2 million bushels.

The use of corn for ethanol and co-product production during the current year is forecast by the USDA at 5 billion bushels, 21 million less than used last year. Use during the first half of the year was estimated to be 81 million larger than use of a year ago. To reach the projection for the year, use during the last half of the year needs to be 4.1 per cent less than that of a year ago. For the 5 week period ended on 6 April 2012, ethanol production was estimated to be 1.5 per cent less than in the same period last year. While the pace of ethanol production has slowed, it is above that needed to reach the projected level of corn use for the year.

While futures prices have decline over the past week, basis levels remain generally strong and the May/July futures inversion has increased. These relationships suggest on-going tightness in stocks and/or a slow rate of movement relative to the pace of consumption. While evidence about the pace of consumption is mixed, expect corn prices to remain under pressure until there is convincing evidence that the necessary rationing has not occurred or concerns about 2012 production develop.

Tuesday, April 17, 2012
Protection from Disease for Canada's Swine Herd
CANADA - The Executive Director of the Prince Edward Island Hog Marketing Board says the Canadian Swine Health Board's National Biosecurity Training Program has added a new level of protection for Canada's swine herd, Bruce Cochrane writes.

Farm-Scape is sponsored by
Manitoba Pork Council and Sask Pork

FarmScape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 

The National Biosecurity Training Program, based on the National Farm Level Biosecurity Standard developed by the Canadian Swine Health Board, was launched in Prince Edward Island earlier this year.

Tim Seeber, the Executive Director of the Prince Edward Island Hog Marketing Board, says producer participation in the training program is already approaching 90 per cent.

Tim Seeber-Prince Edward Island Hog Marketing Board
The circovirus that happened in the first years after 2000 that decimated the industry prompted the federal government to take the initiative, ask the Canadian Pork Council to look into measures that they could take to counteract disease that would affect the industry.

Because of that the Canadian Swine Health Board was put in place and one of their initiatives was to do a baseline study to just see the level of biosecurity that was in place across the country.

The more awareness you have as far as biosecurity goes and the potential things that can affect your herd, world travel has increased significantly with the passing of time and it means that you have more potential for disease to be brought from other jurisdictions.

I think that there's a real need that this stuff would be put in place to save the industry and to prevent any disasters that have happened in other parts of the world because biosecurity has not been in the forefront of their planning and industry protocols in other areas.

Mr Seeber says at just under 90 per cent producer participation is higher than expected.

For more information on the National Biosecurity Training Program visit the Canadian Swine Health Board web site at swinehealth.ca or contact your provincial pork organization or local swine health veterinarian.

Tuesday, April 17, 2012
CME: Lean Hog Futures Continue to Slide
US - Lean hog futures continued their slide on Monday following disappointing wholesale pork prices and the recognition that the market may be running out of time for mounting a major spring rally, write Steve Meyer and Len Steiner.


Nearby futures declined 150 points from the Friday close and they are currently priced at $88.5/cwt., about $10/cwt. lower than where they were in early March. The slide in futures has mirrored the softer tone in the domestic pork market.

The pork cutout was quoted last night at $77.85/cwt., $18.6/ cwt. or 19% lower than where it was at the same time last year. To say pork prices are soft would be an understatement.

The pork cutout is currently below 2010 prices but more worrying for futures is what happens in the next three to four weeks (see top chart). Normally hog futures rally into May as retailers and foodservice operators gear up for the start of the grilling season. And yet, here we are on April 17 and the pork cutout is lower today than it was two weeks ago.

When looking at the wholesale pork market, it helps to see where the boat is leaking and what improvements to expect going deeper into spring. The belly market continues to be an issue. It is something we have brought up before (DLR 3/2) but it bears repeating. Last night USDA quoted the belly cutout at $96.46/cwt., down some $51/cwt. or 35% from a year ago. It is important to note that belly prices last year were particularly high and one could argue that belly values are returning to a more normal trading pattern. Last year, belly prices were inflated by very strong demand from S. Korea (remember that the Koreans even waived the import entry fee due to domestic shortages).

Big foodservice promotions and active freezer inventory builds further added to the upward pressure. Today, it appears the situation has reversed. Exports appear to have eased to trend levels and foodservice promos do not seem to be a factor. As demand for bellies has pulled back (cf. spring 2011) the market is forced to absorb a larger supply. The latest inventory survey indicated a pig crop for Dec - Feb that was 1.2% larger than the previous year and the inventory of market hogs under 50 pounds on March 1 was 2.5% higher than a year ago.

Belly values have come under pressure and $8 of the $18 decline in the pork cutout value is due to the lower belly prices. This from an item that yields only 16% of the overall carcass. As for other items showing significant weakness: hams and trimmings. The ham market is weak despite strong export numbers to Mexico.

Deli business appear to be just fair and with the economy improving, maybe people are not brown-bagging as much as they used to. Trim values are very weak and this tends to affect most primals since it is a credit. LFTB may have been an issue but, in this writer’s mind, the primary contributor is the sharp increase in hog carcass weights, which are currently 2 pounds higher than a year ago and some 6 pounds higher than in 2010. Keep an eye on hog weights going into the summer, they were a primary market driver last year and will likely be again this year.

Tuesday, April 17, 2012
Don’t Forget Water, Says BPEX
UK - The priority for newly weaned pigs is to maximise water and feed intake.
 
Water can often be the ‘forgotten nutrient’ but feed intake is determined by water consumption, not the other way round. The most important points for piglet water supply are:

It should be good quality clean water
Check it regularly
The welfare code and Red Tractor recommendations are to maintain a minimum flow rate of 300ml per minute. Preferably, it should be 450 to 600ml per minute
Ensure header tanks are clean and covered.
For more information, download the factsheet 2TS Action for Productivity 16 Water supply from here.

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


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

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

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

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

Tuesday, April 17, 2012
Solving a 700 Million Pig Problem
CHINA - Australian science is helping to solve one of China’s biggest and smelliest problems – what to do with the waste produced by its 700 million pigs.


Working with Chinese scientists and technology firm HLM Asia Ltd, Australia’s CRC for Contamination Assessment and Remediation of the Environment (CRC CARE) has helped develop novel digester technology to help deal with the estimated 1.4 million tonnes of manure and 7mt of urine produced by the burgeoning Chinese pork industry annually.

CRC CARE managing director Professor Ravi Naidu said the new technology can produce clean energy (biogas), fertiliser and other valuable products from nutrient-rich waste, in a system with great potential for application in other industries worldwide.

China has 700 million pigs in 1.8 million farms, which supply two thirds of the country’s rapidly-growing meat consumption. “However these piggeries also produce enormous volumes of waste, only a tenth of which is currently being treated,” he explains.

Despite tighter regulations, large amounts of nitrogen, phosphorous and contaminants are being discharged into the environment where they damage ecosystems and pose a threat to human health. The nutrients lost in the waste of one pig alone are worth about $50 a year, but there is no technology in place yet to recover and use this vital resource.”

Professor Naidu says the joint project has developed a two-step underground anaerobic bioreactor for treating piggery waste, and established the settings for load and digestion time. It has identified a particular combination of anaerobic treatments that can recover the nutrients and produce clean biogas energy as well.

“The technology has been demonstrated in the field and is now being scaled up to treat large volumes of wastes from a number of piggery farms,” he says.

The technology is expected to have widespread application not only in China but throughout Asia, wherever animals are farmed intensively, and to create fresh export opportunities for Australian technology solutions to similar contamination problems.

In this project the CRC is providing scientific expertise, including supervision of six PhD students at Huazhong University of Science and Technology in Wuhan Province with links to research skills at the University of South Australia.

The project is being managed by HLM Ltd on the ground, taking advantage of the relatively low cost of technology trials and scale-up work in China. “It’s a perfect partnership between Australian science and Chinese technical expertise,” he says.

Professor Naidu explains that the main scientific and technical challenges solved by this project are the high N and P loads in pig waste compared with domestic sewage, the current small size of biogas reactors, their slow rate of digestion, the limiting influence of temperature, and the presence of heavy metal contaminants which restrict the use of residues as fertiliser.

So far, the technology has been able to overcome each of these, and is now moving to full-scale trials.

“The market for a successfully packaged solution to this suite of problems is clearly very large – both in Asia and around the world. Besides handling livestock wastes, similar bioreactor technology can be used to manage and cleanse the runoff from urban landfills and organic waste streams from other industries,” Professor Naidu says.

“We anticipate that the scientific and technical knowledge gained in the course of CRC CARE’s research will have real value for Australia’s intensive livestock and food industries – and will help protect our environment from these types of wastes.

“At the same time we are producing a new source of clean energy for industry or domestic use, and a vital supply of nutrients to help secure the future of food production."

Monday, April 16, 2012
EU Cattle Prices Surge
EU - Cattle prices within the EU surged to record high levels in late March, despite a slow start to the year, as concerns about the tightness of forward cattle supplies and falling herd numbers continue to influence the market.


Figures from the EU Commission showed that prices for O3 cows averaged €304.30 per 100kg deadweight (dw) for the week ending March 25, a 16.5 per cent increase year-on-year. Prices for R3 steers averaged €394.36 per 100kg dw, a 21.2 per cent increase on the same period in 2011. Prices paid for heifers and bulls were also at historically high levels.

The recent strength in cattle prices across the EU is closely linked to falling production levels, with cattle numbers down across the majority of large beef producing nations. Provisional figures from the EU commission indicate French cattle numbers were down 2.6 per cent, to 19.14 million head in 2011, the UK herd was back 2.2 per cent, to 9.68 million head, while German numbers were down 1.4 [er cent, to 12.53 million head.

Cattle slaughter throughout Great Britain, Northern Ireland and the Irish Republic so far in 2012 is well back year-on-year, indicative of the tight supply of slaughter ready cattle. Steer slaughter for the week ended 25 March in Great Britain was back 5.5 per cent year-on-year, while Northern Ireland and Irish Republic slaughter levels contracted 12.4 per cent and 27.2 per cent, respectively. Indicative of the very tight throughput in the UK, the O3 cow price in the UK was the highest of the top five EU beef producing nations, at €335.07 per 100kg dw.

The UK was the fourth largest producer of beef in the EU in 2011, producing 936,000 tonnes cwt, or 12 per cent of total EU production. France was the largest beef producer, at 1.56 million tonnes cwt, or 20 per cent of total production, followed by Germany (1.16 million tonnes cwt) and Italy (1.09 million tonnes cwt).

Robot to Detect Tainted Meat

PHILIPPINES - A team of Philippine high school students is to enter a robot that can detect double dead meat - or "botcha" - in an international competition.
 

The “Meat’s Anti-Germs and Infection Solution" or MAGIS Version 2 will represent the Philippines in the 2012 1st Lego League, which will be held in St. Louis, Missouri from 25 to 28 April.
 
According to a report on ABS-CBN News, the Department of Science and Technology – Science Education Institute (DOST-SEI) said MAGIS Version 2 was created and designed using Lego NXT controllers.
 
It added that the robot is equipped with thermal and colour sensos, which can recognise whether meat istainted or still good for consumption.
 
The team from is Dr. Yanga’s College Inc. (DYCI) in Bulacan.

Monday, April 16, 2012

South Korea Opens Market to Philippine Poultry

PHILIPPINES - South Korea has agreed to open its market to Philippine poultry products after declaring them safe.


"Chicken from triple-A slaughterhouses may start entering South Korea. [Seoul’s] decision to start accepting our chicken products means that we have complied with their requirements,” the Philippines' Bureau of Animal Industry Director Efren Nuestro said.
 
Asia News Network reports that South Korea’s poultry industry has been affected by the dreaded avian flu or bird flu, which is caused by viruses that occur naturally among birds.
 
The Philippines is one of the few countries in Asia that remains free from avian flu, which has led to multibillion-dollar losses in the global poultry industry.
 
The opening of South Korea to local chicken products is one of the important points discussed during the Philippines-South Korea bilateral meeting on agriculture held in Manila in November last year.
 
The Philippine government said it wanted to start the export of local chicken products before the end of the first semester.
 
The Department of Agriculture noted that the South Korean market was as big as the Japanese market which has relied on the Philippines for its poultry products after Thailand was hit by the avian flu. So far, Japan remains the top importer of Yakitori chicken from the Philippines.
 

Monday, April 16, 2012
Factor Driving Interest among Pork Producers
CANADA - A research scientist with Alberta Agriculture and Rural Development says the speed with which feed ingredient quality can be assessed using Near Infrared Reflectance Spectroscopy is the main factor driving interest among pork producers in the technology, Bruce Cochrane writes.
 
A Near Infrared Reflectance Spectroscopy calibration developed by researchers with the University of Alberta and Alberta Agriculture and Rural Development to predict barley digestible energy will be among the developments discussed next week in Winnipeg when the Canadian International Grains Institute, in conjunction with the Animal Nutrition Association of Canada, hosts a Canadian Feed Technology Course.

Dr Mary Lou Swift, with Alberta Agriculture and Rural Development, notes NIR is commonly used within the grain grading system to evaluate protein and moisture and in many laboratories around the world to evaluate ingredient and forage quality.

Dr Mary Lou Swift-Alberta Agriculture and Rural Development
Near Infrared or NIR as we commonly call it is a tool actually similar probably to X-rays.

It uses the principles of light energy to indirectly measure the amount of materials like protein, starch, fat, et cetera that are in feedstuffs and forages.

The interest has been spurred on by the fact that NIR is a rapid evaluation method.

Within 30 seconds you can scan a sample of barley or wheat and obtain up to 60 different values so it saves a lot of time in terms of what chemistry and in money.

I think that is really spurring on, especially with the development of specialized equations like digestible energy or digestible fibre that can be used to count the pennies I think when it comes to formulating animal feeds.

Dr Swift observes now that we have the ability to analyze digestible energy, interest in the technology has grown exponentially.

She notes some estimates range as high as eight dollars per pig that can be saved if energy can be accurately assessed in barley.

Monday, April 16, 2012
USDA Raises Prediction for 2012 Pork Production
US - US pork exports during February totalled 455.323 million pounds, up 17.5 per cent from a year ago, writes Ron Plain.
 
Ron Plain
Japan purchased slightly less pork than a year ago, but each of our other major foreign buyers purchased more US pork than in February 2011. During the first two months of 2012, pork exports were up 26.5 per cent compared to January-February 2011. February pork imports totaled 67.539 million pounds, up 11.8 per cent from a year ago. All of the net increase came from Canada. Pork imports during the first two months of this year were up 7.2 per cent from last year.

USDA's April price and production update had a lower barrow and gilt price forecast for 2012. USDA is now predicting hog prices will average somewhere around $63.50/cwt of live weight this year. That is $1.50 below their March forecast and $2.61 below last year's record average price.

USDA raised their prediction of 2012 pork production by 30 million pounds, increased expected pork imports by 20 million pounds, and raised their forecast of pork exports by 100 million pounds. That combination leaves 50 million pounds less pork on the US market. USDA raised their estimate of competing meat supply, which appears to be the reason for the lower hog price forecast.

Hog prices ended this week generally steady to lower from the previous week. The national average negotiated carcass price for direct delivered hogs on the morning report today was $79.67/cwt, down $1.84 from last Friday. The eastern corn belt averaged $79.66/cwt this morning. Neither the western corn belt nor Iowa-Minnesota had enough hog sales this morning for a price quote. Peoria and Zumbrota each had a top of $54/cwt today. The top for interior Missouri live hogs was $59.75/cwt, up 75 cents from the previous Friday.

Following 7 weeks of decline, the pork cutout value was higher this week. USDA's Thursday afternoon calculated cutout value was $78.82/cwt, up 67 cents from the previous Thursday. Hams were lower this week. Bellies, butts and loins were higher. Packer margins remain tight. The national average hog carcass price this morning is 1.1 per cent above the pork cutout value.

Hog slaughter totaled 2.044 million head this week, down 3.8 per cent from the week before, but up 0.8 per cent compared to the same week last year. Barrow and gilt carcass weights for the week ending March 31 averaged 206 pounds, unchanged from the week before and unchanged from a year ago. The average barrow and gilt live weight in Iowa-Minnesota last week was 276.1 pounds, down 1.2 pounds from a week earlier, up 3.0 pounds from a year ago, and above a year earlier for the 20th consecutive week.

The May, June and July lean hog futures contracts each closed down the $3 limit on Friday. Friday's close for the April lean hog futures contract, $82.75/cwt, was down $1.75 from the previous Friday. The May lean hog futures contract settled at $90.12/cwt, down $4.10 for the week. June hogs ended the week at $90.22 and July settled at $90.52/cwt.

Monday, April 16, 2012
Beef, Pork, Chicken Production Increased in 2012
CHILE - Production of beef, pork and chicken all increased in the first month of 2012, compared to January 2011.


A significant increase in beef production was seen in Chile in 2012, breaking the downward trend which has been seen sine April 2011. Beef production increased 15.2 per cent to 16,629 tonnes at the start of the year. The Chilean herd seems to be retaining heifers for herd expansions, with 56 per cent of cattle slaughtered being steers.

Poultry and pig production in January increased 9.5 per cent and 6.3 per cent respectively. Pig production has been growing steadily over recent years thanks to an increase in production capacity, with more and more producers focusing on exporting pork products, rather than selling to the domestic market.

An increase in broilers and turkeys is responsible for the increase in poultry production, with turkey production increasing 10.5 per cent in January 2012 compared to the same month the previous year.

It is likely that production of poultry and turkeys has increased due to more demand for lower priced proteins, as beef prices continue to remain high.

Meat exports in general seemed to be up at the start of 2012. Beef exports increased 2.5 per cent, with a total of 364 tonnes exported. Much of this increase in exports went to Germany.

Pork exports were up 17.1 per cent. Whilst South Korea and Japan are the main export markets, exports to China and Russia increased.

On the contrary, poultry exports fell marginally by 0.7 per cent in the first month of the year.