Australia - Goat meat

15 Jun 2012

Australian goat meat exports dropped 23% year-on-year during May, to 2,252 tonnes swt (Department of Agriculture, Fisheries and Forestry), led by a large fall in shipments to the US and the Caribbean – down 42%, to 1,247 tonnes swt and 16%, to 198 tonnes swt, respectively.
 
There was, however, good growth in some Asian markets, including Taiwan (399 tonnes swt) and Malaysia (232 tonnes swt).

In the last couple of months, with much greater supplies of lamb and mutton, and lower prices for goats relative to last year, there has reportedly been less incentive for the harvest of rangeland goats, reducing the supply available for export.

Mustang Sally's personal note:
Australia like others in the west have the luxury of free ranging their meat goats and by doing so have lower feed production costs than those of us in the Philippines.Mustang Sally's own audit showed the only realistic way of producing meat goats would be in the form of pellet feeding from forages grown on ones own land.In the beginning,added costs with equipement purchases again adds to your overhead but if looked at over time should be of real benefits for those who truely wish to become meat goat producers and having a real shot of success.In my opinion,pellet feeding will become more common in the years to come,especially given the smaller land holdings owned by most.
It took Mustang Sally 7 years of trial and error to reach the point where their operations finally became self supporting and Mustang Sally does not sell goats as breeding materials,only meat production through their own supply chain,locally.

Mustang Sally was the first to report that future export sales should be directed to other Asian countries that eat goats for meat like Malaysia.Mustang Sally was very disappointed when there was very little interest from the Philippine side to try an export program of live goats to Malaysia back around 2006.The hog export market is a good example of what happens in the business world when a market is lost,usually never ever regained.The internet today allows people to find other contacts  at their finger tips and those who fail to capitalize find themselves sitting on the sidelines waiting for the next opportunity to come along and at times is one long wait.

Mustang Sally is proud to be part of the goat industry in country and hope that information posted from background experiences will/has helped others who wish to become part of this exciting industry.Mustang Sally cannot take all the credits as we have a large pool of people in the business from other countries who have expressed their opinions to help build up this industry in country.At some point the market for meat goats will become greater than what the market can handle and exports will need a serious looking into.

 

 

 

NV_LS320 Nashville, TN  Tue Jun 26, 2012 USDA/TDA Dept Ag Market News
Tennessee Sheep and Goat Auction

6/25/12 Tennessee Livestock Producers Graded Goat and Sheep Sale,
Columbia, TN.
Receipts: 1575 (1035 Goats; 540 Sheep) Last Sale 1311
Next Sale July 9, 2012. (Second and fourth Monday of each month)

Goats sold per hundred weight (cwt) unless otherwise noted, weights,
actual or estimated.

Slaughter Classes: Kids
Selection 1
25-35 lbs 138.00-141.00 
36-50 lbs 144.00-167.00
51-65 lbs 144.00-160.00
66-80 lbs 135.00-138.00
81-90 lbs 130.00-131.00

Selection 2
25-35 lbs 126.00-139.00
36-50 lbs 132.00-144.00
51-65 lbs 135.00-145.50
66-80 lbs 120.00-129.00
81-90 lbs 118.00

Selection 3
25-35 lbs 117.00-118.00 
36-50 lbs 114.00-128.00
51-65 lbs 110.00-129.00
66-80 lbs 101.00
                       
Yearlings Selection 2-3
60-116 lbs 80.00-110.00
                   
Slaughter Bucks/Billies
All Wgts 65.00-96.00, mostly 74.00-80.00

Slaughter Nannies/Does
65-100 lbs  67.00-89.00
100-150 lbs 70.00-80.00

Kids Feeders Selection 3
27-41 lbs 81.00-112.00
   
SHEEP
Slaughter Lambs-Includes all breeds, sold per hundred weight (cwt).

Choice and Prime 40-60 lbs 135.75-145.00
Good                       117.00-130.00
Choice and Prime 61-80 lbs 125.00-152.00
Good                       110.00-124.50
Choice and Prime 81-100 lbs 104.00-139.00, mostly 120.00-130.50
Good                        103.00

Choice and Prime 100-120 lbs 125.25-127.50     
Good                                         
Choice and Prime 120-161 lbs 127.00               
Good                         113.25                                     
           
Slaughter Ewes Utility and Good:
All wgts 40.00-65.00

Slaughter Rams:
All Wgts 55.00-70.00

Tennessee Dept of Ag-USDA Market News, Nashville, TN

Friday, July 06, 2012

Beef Exports to Japan Down Four Per Cent in June

AUSTRALIA - Australian beef shipments to Japan in June declined four per cent year-on-year to 30,315 tonnes swt, with competition from the US and subdued bids from Japanese buyers reducing grainfed exports (down 17 per cent to 11,529 tonnes swt), reports Meat and Livestock Australia.

Grainfed manufacturing beef to Japan during the month decreased 40 per cent from last year to 2,454 tonnes swt, reflecting reduced production. Grainfed fullset volumes were also down six per cent year-on-year, to 708 tonnes swt.
 
In contrast, exports of grassfed fullset almost doubled from last year, to 969 tonnes swt - the highest since March 2010. Total grassfed exports were up six per cent year-on-year.
 
Beef exports to Japan during January to June totalled to 150,870 tonnes swt, down 10 per cent from the corresponding period in 2011.

Friday, July 06, 2012

Australian Beef Production Falls in May

AUSTRALIA - Adult cattle slaughter during May declined three per cent year-on-year, to 666,000 head, with total beef production also declining three per cent over the same period, to 190,395 tonnes cwt, reports Meat and Livestock Australia.


Despite the year-on-year decline in both slaughter and production, May is traditionally a large production month, with May’s volume the highest so far in 2012 (Australian Bureau of Statistics).
 
Underpinning the overall decline in adult cattle slaughter was a three per cent year-on-year reduction in Queensland, which reached 329,000 head. Despite falling on last year (highest monthly total in 2011), slaughter in May 2012 increased in comparison to the other months as a result of the higher seasonal turnoff as producers offload stock as winter approaches.
 
Adult cattle slaughter in NSW (124,500 head) fell 18 per cent year-on-year, while Victorian slaughter (124,400 head) surged 12 per cent year-on-year in May, the highest since March 2010. Female slaughter continues to track lower than the same time last year, falling one per cent year-on-year, to 308,700 head.
 
Average national carcase weights in May increased slightly on the corresponding month last year, to 286kg/head. Despite easing one per cent year-on-year in May, Queensland average carcase weights hit 300kg/head, with the biggest improvement in carcase weights attributed to NSW, which gained four per cent or 11kg/head on last year, to average 285kg/head.
 

Soybean Farmers Committed to Feeding the World Sustainably
06 July 2012


US - US soybean farmers are well aware of the United Nations projection that global food production will have to rise by 50 per cent by the year 2030 to meet the demands of a growing population. Soybeans are emerging as a critical crop of a healthy and abundant food to feed the world. Soy products provide healthful food in the form of tofu, edamame, soy milk, and other vegetarian options.

Most soybean meal, however, is used in animal feed to create valuable protein, such as poultry, pork and fish. The Soy Aquaculture Alliance, an organization that coordinates research and support for soy use in aquaculture, states that the most efficient use of soy in animal feed is in fish feed, with one to 1.5 lbs. of feed producing one pound of fish. In comparison, it takes up to 1.9 lbs. of feed to produce one pound of poultry and 2.5 lbs. of feed to produce one pound of pork.
 
Aquaculture presents a huge opportunity to feed the world one of the healthiest foods on the planet – fish and seafood rich in heart-healthy Omega-3s. In 2011, the United Nations' Food and Agriculture Organization reported that, worldwide, more fish for human consumption is being produced by aquaculture than is being wild-caught, and that the wild harvest is unlikely to ever increase again due to over-fishing.
 
Also in 2011, Conservation International published a study that showed how aquaculture has the least environmental impact than any other means of protein production globally. In the last 10 years, it has been proven that, when done correctly, ocean aquaculture has no significant impact on the ocean environment, while producing high quality, healthful marine fish that are in high demand from chefs and consumers.
 
Soybean farmers continue to help the aquaculture industry develop environmentally-sound practices, whether fish are farmed in the sea or on land in tanks. The sustainability of global aquaculture depends on renewable and efficient sources of fish feed ingredients, such as US soybeans. Soybean meal and soy oil can replace half to nearly all of the fishmeal and fish oil in feeds for many species, easing pressure on capture fishery resources.
 
Soybean meal has the best amino acid complex of all of the plant protein ingredients and is highly digestible to most cultured fish and shrimp species. Every fish species has different nutritional requirements, and obviously, there will not be one feed ingredient that meets the needs of all farmed fish. The aim of the soy industry is to provide viable, affordable alternatives to the limited resource of fishmeal and fish oil, which can scale up for a growing aquaculture industry. Continuing research and development of soy-based feeds is yielding very promising results, as well as research in other alternative proteins.
 
The US soy industry is made up of hundreds of thousands of family farmers who are working land that has been in their families for many generations. Soybean farmers take their stewardship of the land seriously, and have a long history of increasing production while decreasing environmental impacts. Soybeans have always been an environmentally beneficial crop to rotate after harvest of other crops, such as corn, as they fix nitrates in the soil. With advances in biotechnology in the last decade, soybean farmers have been able to greatly increase the environmental sustainability of their farms.
 
The biggest environmental impact has been the adoption of no-till farming, with herbicide-tolerant crops that allow farmers to completely eliminate plowing on their fields. No-till farming results in better soil health and conservation, improved water retention, decreased soil erosion and decreased herbicide runoff. In fact, no-till farming has led to a global reduction of carbon dioxide, which, in one year, is the equivalent of removing almost seven million cars from the road. Thanks to biotechnology, global pesticide applications have decreased 379 million pounds in the last decade, improving water quality both through less pesticide and herbicide application and less runoff through fields. Studies have shown that this encourages the growth of habitats that support different varieties of wildlife.
 
US soybean farmers remain committed to environmental stewardship of land resources, conservation of ocean resources, and providing consumers with safe, healthy and abundant food.

FAO Food Price Index Falls Again
05 July 2012


GLOBAL - The FAO Food Price Index fell for the third consecutive month in June 2012, dipping 1.8 percent from May to its lowest level since September 2010. The four-point drop in June brought the index to 201 points from a revised level of 205 points in May 2012.
 
According to FAO, the index now stands at 15.4 per cent below its peak in February 2011. The average prices of all commodity groups in the Index were below May levels, with the largest drop registered for oils and fats.
 
Continued economic uncertainties and generally adequate food supply prospects kept the index down although growing concerns over dry weather sent prices of some crops higher toward the end of the month.
 
Food commodity prices have started rising again recently, mostly because of adverse weather and this may result in a rebound of the Food Price Index in July.
 
FAO also lowered its forecast for 2012 world cereal production by more than 23 million tonnes from May, which is likely to result in a smaller build-up of global stocks by the end of seasons in 2013.
 
FAO’s new forecast for world cereal production in 2012 stands at 2 396 million tonnes, still a record level and 2 per cent up from the previous high registered last year.
 
Supply and demand situation adequate
 
According to FAO’s latest assessment, the overall supply and demand situation in 2012/13 remains adequate thanks to abundant supplies of rice, a leading food staple, and sufficient exportable supplies of wheat and coarse grains.
 
But grain prices were very volatile in June due to continuing dryness and above-average temperatures in most of the major maize growing regions of the United States. Adverse weather is diminishing prospects of an improvement in the maize supply situation and FAO is monitoring the development closely.
 
High-level event on volatility and speculation
 
The issue of swinging food prices will be discussed by a high-level event on “Food Price Volatility and Price Speculation” to be held at FAO on Friday, 6 July. Speakers will include Leonel Fernández, President of the Dominican Republic who will give a keynote address, and FAO Director-General José Graziano da Silva.
 
“FAO has been actively involved in studying food price volatility and identifying appropriate policy responses,” said Mr Graziano da Silva. “Our analytical work is helping to deepen the understanding of the nature, causes and impacts of volatility and of what governments and other stakeholders can do about it.”
 
The FAO Food Price Index is a measure of the monthly change in average international prices of a basket of 55 food commodities.
 

US Hog Margins, 4 July 2012
05 July 2012

 

US - Margins deteriorated sharply over the past two weeks primarily due to soaring feed costs. Margins would actually have been even worse if not for a late month recovery in hog prices, particularly in nearby contracts, writes Doug Lenhart, General Manager of Genesus USA.

Projected hog finishing margins are now well below average as well as negative in both Q4 and Q1 following readings near or above the 90th percentile earlier this year.
 



Genesus Global Market Report
Prices for the week of June 24, 2012
 


Country

Domestic price
(own currency)

US dollars
(Liveweight a lb)
 


USA (Iowa-Minnesota)

97.91¢ USD/lb carcass

72.45¢
 


Canada (Ontario)

1.90¢ CAD/kg carcass

67.89¢
 


Mexico (DF)

21.23 MXN/kg liveweight

71.68¢
 


Brazil (South Region)

1.86 BRL/kg liveweight

42.37¢
 


Russia

95 RUB/kg liveweight

$1.32
 


China

13.49 RMB/kg liveweight

96.32¢
 


Spain

1.38 EUR/kg liveweight

78.72¢
 

A searing heat wave accompanied by drought has dimmed what earlier were bright hopes for this season’s corn and soybean crops especially in the Eastern Corn Belt. Crop conditions have declined steadily over the past few weeks and are now record low for this point in the growing season.
 
USDA released their June acreage and quarterly stocks reports this week, which pegged 1 June corn stocks at 3.15 billion bushels and final acreage at 96.405 million, up 541,000 from the March Planting Intentions. Soybean acreage was revised up 2.178 million from March to 76.08 million acres, with 1 June soybean stocks at 667 million bushels. All eyes are on weather though, and rainfall over the next two weeks will be critically important to stem a further decline in corn yield prospects.
 
USDA’s June All Hogs and Pigs report showed 1 June hog inventories up 1 per cent from last year and in line with expectations. June-Nov farrowing intentions were 1 per cent below last year, and the recent advance in feed costs may further discourage expansion.
 
The quick deterioration in forward profit margins has highlighted the importance of setting targets to scale into protection as the opportunities to do so can be short-lived.
 
3rd Qtr ’12 Most Recent Offering of $2.87, the low was $(0.30), the high has been $14.07 and the 5 year percentile of 50.5 per cent.
 
4th Qtr ’12 Most Recent Offering of ($5.34), the low was ($7.37), the high has been $7.19 and the 5 year percentile of 32.9 per cent.
 
1st Qtr ’13 Most Recent Offering of ($2.18), the low was ($3.78), the high has been $6.04 and the 5 year percentile of 36.0 per cent.
 
2nd Qtr ’13 Most Recent Offering of $3.84, the low was $2.83, the high has been $9.83 and the 5 year percentile of 34.1 per cent.
 
The Hog Margin calculation assumes that 73 lbs of soybean meal and 4.87 bushels of corn are required to produce 100 lean hog lbs. Additional assumed costs include $40 per cwt for other feed and non-feed expenses. Thank you to Commodity & Ingredient Hedging, LLC (CIH) for the margin data. Please visit www.cihmarginwatch.com to subscribe to the CIH Margin Watch report.
 

Monday, July 02, 2012
Australian Beef Cuts - Where they End up?
AUSTRALIA - An analysis of the export data for the main cuts of Australian beef over the course of 2011 reveals the varying tastes between its major markets.

Koreans have a taste for Australian blade and cube roll, Americans can’t get enough of manufacturing beef, Russians love silverside, thick flank and manufacturing beef, and the Taiwanese are buying up shin/shank, according to Meat and Livestock Australia. The Japanese like most of Australian cuts.

In 2011, Australian industry exported 949,195 swt of beef worth approximately A$4.7 billion.

Close to one quarter of this tonnage was manufacturing beef – with 328,516 tonnes swt exported to the top 20 destinations. The two largest markets for Australian manufacturing beef were Japan and the United States who took in around two thirds of this amount between them.

The next most popular Australian cut internationally was brisket, with 85,377 tonnes swt exported to the top 20 and Japan taking in the lion’s share of this (almost 79 per cent). Brisket was also one of the fastest growing cuts last year, with year-on-year growth of 15 per cent.

Around 63,680 tonnes swt of blade was exported last year, mainly to Japan and Korea.

Japan and Russia were the largest markets for the 57,805 tonnes swt of silverside/outside exported last year.

Sales of chuck roll to Korea grew strongly for the year, taking in more that 59 per cent of the 54,981 tonnes swt exported to the top 20 destinations.

Monday, July 02, 2012

Lower EU Sheep Meat Imports


The EU imported 17 per cent less sheepmeat during the quarter compared to the same period a year earlier. March shipments were down 10 per cent despite an earlier Easter in 2012.

Shipments from New Zealand were back by 15 per cent to 37,400 tonnes, reflecting tighter domestic supplies with lamb production running 3 per cent lower at 243,000 tonnes for the first seven months of the 2011/12 marketing season up to the end of April.
 
While overall volumes have fallen, imports of chilled sheepmeat were up 6 per cent to 18,000 tonnes.

Shipments were up from most suppliers with New Zealand accounting for nearly 90 per cent of total supplies. However, this was still almost a third below 2010 levels. Frozen shipments fell by 29 per cent on the year to 24,000 tonnes with shipments from most regions significantly down.
 
Overall import values per tonne were almost 19 per cent higher than 2011 up to the end of March. This was helped by the increased volumes of chilled product while the average price of frozen sheepmeat was almost 16 per cent higher than comparable 2011 levels.

28 June 2012
USDA Agricultural Prices - June 2012
The preliminary All Farm Products Index of Prices Received by Farmers in June, at 181 percent, based on 1990-1992=100, increased 3 points (1.7 percent) from May. The Crop Index is up 2 points (1.0 percent) and the Livestock Index increased 1 point (0.7 percent).


 

June Farm Prices Received Index Increased 3 Points
 
Producers received higher prices for hogs, oranges, eggs, and broccoli and lower prices for hay, corn, soybeans, and broilers. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly movement of wheat and hay offset the decreased marketing of oranges, corn, cattle, and strawberries.
 
The preliminary All Farm Products Index is up 1 point (0.6 percent) from June 2011. The Food Commodities Index, at 170, increased 4 points (2.4 percent) from last month but decreased 1 point (0.6 percent) from June 2011.
 
Prices Paid Index Unchanged
 
The June Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 215 percent of the 1990-1992 average. The index is unchanged from May but 12 points (5.9 percent) above June 2011. Higher prices in June for complete feeds, concentrates, nitrogen, and supplements offset lower prices for diesel, hay & forages, LP gas, and gasoline.
 


Prices Received by Farmers
 
The June All Farm Products Index is 181 percent of its 1990-1992 base, up 1.7 percent from the May index and 0.6 percent above the June 2011 index.
 
All crops: The June index, at 210, increased 1.0 percent from May and 0.5 percent from June 2011. Index increases for fruits & nuts and commercial vegetables more than offset the index decreases for feed grains & hay, oilseeds, food grains, and potatoes & dry beans.
 
Food grains: The June index, at 213, is 2.3 percent below the previous month and down 12 percent from a year ago. The June price for all wheat, at $6.37 per bushel, is down 30 cents from May and $1.04 below June 2011.
 
Feed grains & hay: The June index, at 265, is down 2.9 percent from last month but 1.1 percent above a year ago. The corn price, at $6.25 per bushel, is down 8 cents from last month and 13 cents below June 2011. The all hay price, at $183 per ton, is down $16.00 from May but $20.00 higher than last June. Sorghum grain, at $9.95 per cwt, is 45 cents below May and 55 cents below June last year.
 
Cotton, Upland: The June index, at 137, is down 2.1 percent from May but unchanged from last year. The June price, at 83.1 cents per pound, is down 1.5 cents from the previous month and 0.2 cent below last June.
 
Oilseeds: The June index, at 245, is down 2.0 percent from May but 3.4 percent higher than June 2011. The soybean price, at $13.70 per bushel, decreased 30 cents from May but is 50 cents above June 2011.
 
Fruits & nuts: The June index, at 179, is up 5.3 percent from May and 13 percent higher than a year ago. Price increases for apples and oranges more than offset price decreases for peaches, strawberries, and lemons.
 
Commercial vegetables: The June index, at 166, is up 5.1 percent from last month but unchanged from June 2011. Price increases during June for broccoli and lettuce more than offset price declines for onions, snap beans, and cucumbers.
 
Potatoes & dry beans: The June index, at 180, is down 3.2 percent from last month and 8.2 percent below June 2011. The all potato price, at $9.89 per cwt, is down 55 cents from May and $1.70 below last June. The all dry bean price, at $43.90 per cwt, is up 60 cents from the previous month and $10.10 above June 2011.
 
Livestock and products: The June index, at 152, is 0.7 percent above last month but down 0.7 percent from June 2011. Compared with a year ago, prices are higher for cattle, broilers, calves, turkeys, and eggs. Prices for milk and hogs are down from last year.
 
Meat animals: The June index, at 161, is up 1.3 percent from last month and 10 percent higher than last year. The June hog price, at $66.90 per cwt, is up $4.10 from May but $2.80 lower than a year ago. The June beef cattle price of $122 per cwt is unchanged from last month but $15.00 higher than June 2011.
 
Dairy products: The June index, at 123, is down 0.8 percent from a month ago and 24 percent lower than June last year. The June all milk price of $16.10 per cwt is 10 cents less than last month and $5.00 lower than June 2011.
 
Poultry & eggs: The June index, at 164, is up 0.6 percent from May and 5.8 percent above a year ago. The June market egg price, at 68.8 cents per dozen, increased 9.4 cents from May and is 0.1 cent above June 2011. The June broiler price, at 52.0 cents per pound, is down 1.0 cent from May but 3.0 cents above a year ago. The June turkey price, at 73.9 cents per pound, is up 1.3 cents from the previous month and 4.4 cents above a year earlier.
 




June 2012

Study: Pork Exports Contribute C$9.28 Billion to Economy
29 June 2012


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.


CANADA - A study conducted by the George Morris Centre has shown Canadian pork exports contribute over nine billion dollars annually to the Canadian economy, writes Bruce Cochrane.
The George Morris Centre has completed a study on behalf of the Canadian Pork Council which examined the value of Canadian pork exports.
 
Kevin Grier, a senior market analyst with the George Morris Centre, says the study found the economic development associated with exporting pork contributes about 9.28 billion dollars annually to Canada's economy.
 
Kevin Grier-George Morris Centre
 
As a starting point we looked at the fact that there were 3.2 billion dollars worth of exports in 2011 and again these are pork as opposed to live animals.
 
We looked solely at pork.

To start with that as a starting point we used data from Statistics Canada and Agriculture Canada and provincial marketings and so on about where those exports went, how much they were worth and what it all means back to producers and by looking at that in particular we found that the exports themselves probably increased producers' bottom lines by about anywhere from 20 to 30 dollars.
 
The other things that we showed when we looked at these 3.2 billion dollars worth of exports was that they create an awful lot of jobs.
 
In fact according to the Statistics Canada input-output multiplier those exports generated about 45 thousand jobs in Canada and they generated nearly two billion dollars worth of wages and salaries and they had a net economic contribution to Canada's GDP of about 3.5 billion dollars.
 
In other words, above and beyond the 3.2 billion dollars in export sales, that economic activity generated an additional value adding to the Canadian GDP of another 3.5 billion dollars.
 
Mr Grier notes the fact that exports account for 60 per cent of Canadian pork production suggests that, if Canada's pork industry is to grow and prosper, exports are going to play a big role in that future.
 

Genesus Global Market Report - Brazil Hog Markets
28 June 2012

 

BRAZIL - Independent Brazilian pig producers have suffered greatly over the last decade, with long periods of losses followed by very short periods of low profits, Martin Riordan, Senior Consultant at Genesus Brazil.

However, since the global crisis of October, 2008, which caused an immediate drop of 45 per cent in pig prices in Brazil due to reduced exports, losses have been constant for producers in the south of the country and, even in other regions, profits have been meager and short-lived when they did appear.
 



Genesus Global Market Report
Prices for the week of June 18, 2012
 


Country

Domestic price
(own currency)

US dollars
(Liveweight a lb)
 


USA (Iowa-Minnesota)

1.01¢ USD/lb carcass

75.05¢
 


Canada (Ontario)

1.84¢ CAD/kg carcass

64.75¢
 


Mexico (DF)

21.13 MXN/kg liveweight

68.64¢
 


Brazil (South Region)

1.90 BRL/kg liveweight

41.60¢
 


Russia

95 RUB/kg liveweight

$1.29
 


China

13.54 RMB/kg liveweight

96.18¢
 


Spain

1.38 EUR/kg liveweight

78.08¢
 

This sad situation has given rise to an adage among producers: “The situation is never so bad that it can’t get worse.” When I was a producer, I witnessed this many times. When everything that could go wrong had gone wrong (pig prices falling, feed prices rising, exports banned by an important importing country), along would come yet another problem to make things worse (disease outbreak stopping pig movements, new taxes on production, etc.).
 
And the news that floods in daily over the Internet proves this adage time and time again. In the south of the country, the greatest problem is lack of buyers. A large part of production is now internal to the big integrators/processors that are self-sufficient and have not bought on the spot market in recent years. And their number is falling constantly due to mergers and fusions. One example: what used to be three large companies (Sadia, Perdigão and Avipal) have all been rolled into one huge conglomerate, BR Foods.
 
A medium-sized plant which was bought over by Doux from France some years ago has been in financial difficulties over the last year or so, and is now on the market. Meanwhile its producer suppliers have had difficulty getting payment, often having to wait for months.
 
So for those brave souls who still remain in production in the south, the biggest challenge is to find a buyer for their pigs. One large producer adopted a new strategy. He takes his lorry loaded with market hogs to one of the few remaining medium-sized plants and tells the owner to take the pigs in, pay whatever he wants and whenever he wants. This, as Jim Long would say, “is not price supportive”! Prices, dropping weekly, are now around US$ 0.43 per lb live weight, against a production cost of US$ 0.57 or more.
 
In the pig producing states of the center and center-west of the country, the situation may be slightly less dramatic, but losses are still heavy. The state of Mato Grosso produces vast quantities of corn and soybeans. In some ways it is the Texas of Brazil – everything there is bigger, even the armadillos. A farmer with only 2,500 acres is considered a vegetable farmer. And the hog units are bigger too, with many having 3,000 sows upwards. Traditionally, the margin on hog production was good there, due to very low corn and soy meal prices, even though the price of hogs was slightly lower than other regions due to shipping distances.
 
But now the situation has changed. Due to high feed prices and an extremely low hog price (about US$0.50 per lb live weight), producers are losing about US$30 per head. On a 5,000 sow unit, that mounts up quickly and it has been going on for months. The state pig association is announcing the demise of pig production in the state.
 
São Paulo state has also traditionally had better prices than the south. But the market has collapsed there too, leading to prices of about US$ 0.49 per lb, with costs similar to those in the south.
 
There is an unprecedented joint effort by pig associations across the country, coordinated by the national pig producer association ABCS, to garner political support. As a result, there will be a public hearing in Congress in Brasília on July 12, attended by the considerable number of Deputies who support the agricultural lobby and producers from many states.
 
However, experience suggests that the outcome will have little effect. While producers dream of a “just price” for their hogs, Brazil’s market economy is determining this just price, which is very low due to constant over-supply of the market, largely due to the number of big units established by the integrators, squeezing the independent producer’s space.
 
And new lines of debt financing, another favored plea, if granted, will have the result of allowing producers to continue oversupplying the market at a loss, building up their debts even more.
 
With no light at the end of the tunnel, it seems to me that smart pig producers will cease production as fast as possible. This is what I decided to do, two years ago, but five or ten years later than I should have. I have not regretted it once since then. But I still grieve on seeing what the remaining producers are currently going through. I know the anguish they are suffering.
 

Will Integrated Supply Chain Bring Home the Bacon?
28 June 2012



 
ANALYSIS - A new report into the British pig meat industry calls for an integrated pig meat supply chain, writes Chris Harris.

The report says that at present pig producers and processors struggle to sell their products at a profit and utilise their production capacity.
 
This discourages productive investment and entrenches the UK pig industry's disadvantage compared to foreign competitors, the report says.
 
It also encourages a worsening of pay and conditions for the workforce, and undermines job security.
 
The report Bringing Home the Bacon from researchers from the University of Manchester Centre for Research on Socio-Cultural Change says the system is economically unnecessary because there is a better way, which delivers on broader economic and social objectives.

The more integrated and consolidated national models of the Danish and Dutch pig industry or the profitable in-house UK processing operations of Morrisons represent the alternative, which uses a higher proportion of British meat compared to the other major supermarkets.

The Morrisons model aligns the interests of firm, supply chain and society. Morrisons runs its vertically integrated processing plants at full capacity and proves the benefits of plant loading with demand stabilised. The firm increases margins, reduces transaction costs and controls quality. Society gains through reduced import dependence, stable employment and the capacity to address animal welfare and climate change.
 
The big three supermarkets cannot choose a better way as long as they are locked into their present business model through the demands of the stock market and their own mentality and practices. Therefore, much depends on whether government can and will play a constructive role in persuading firms to change their business models.
 
The report suggests that there should be tax incentives from the government to form integrated supply chains.
 
And it calls for a national debate about whether large national supermarket chains are necessary and specifically about what would be lost and gained if Tesco, Asda and Sainsbury’s were split up into regional chains (e.g. Tesco North and Tesco South or Sainsbury East and West).
 
The research concludes that the government should move beyond its current ‘code of good practice and adjudicator’ model for regulating retailer-supplier relations.
 
It recommends that the Grocery Code Adjudicator regulator should secure better practice by reserve powers to enforce model contracts and minimum contract lengths, as well as discouraging, through strong punitive and investigative powers, variations in terms of supply without retailers providing notice and compensation.
 
It has also called for a year long moratorium on price cut promotions.
 
However, the researchers appear to bring their whole argument down to a cash and profit basis and overlook other inherent motivation for producing pigs.
 
However, many pig producers might not wish to tie themselves lock, stock and barrel to a regime where they are beholden to one outlet. Many prefer the flexibility of the market and also do not wish to become involved in the chain after the farm although many will also welcome and benefit from a relationship with both processors and retailers.
 
Retailers and processors are also likely to baulk at any suggestion of government intervention to control prices.
 
Producers will also only invest their money. time and effort into an enterprose if they can see they are going to get a good reward, so any partnership or relationship will have to be openly beneficial to all parties.

The report believes that with full backing an integrated chain will improve profits, welfare and conditions, but many producers and processors will have to be persuaded.
 
Chris Harris, Editor-in-Chief

USDA Quarterly Pigs and Hogs Report: June 2012
 
United States Hog Inventory Up 1 Percent
 
United States inventory of all hogs and pigs on June 1, 2012 was 65.8 million head. This was up 1 percent from June 1, 2011, and up 1 percent from March 1, 2012.

Breeding inventory, at 5.86 million head, was up 1 percent from last year, and up 1 percent from the previous quarter.
 
Market hog inventory, at 60.0 million head, was up 1 percent from last year, and up 1 percent from last quarter.
 
The March-May 2012 pig crop, at 29.4 million head, was up 1 percent from 2011. Sows farrowing during this period totaled 2.92 million head, up slightly from 2011. The sows farrowed during this quarter represented 50 percent of the breeding herd. The average pigs saved per litter was a record high 10.09 for the March-May period, compared to 10.03 last year. Pigs saved per litter by size of operation ranged from 7.50 for operations with 1-99 hogs and pigs to 10.20 for operations with more than 5,000 hogs and pigs.
 

Quarterly Hogs and Pigs Inventory –
United States: June 1
 
United States hog producers intend to have 2.90 million sows farrow during the June-August 2012 quarter, down 1 percent from the actual farrowings during the same period in 2011, and down 1 percent from 2010. Intended farrowings for September-November 2012, at 2.89 million sows, are down 1 percent from 2011, but up slightly from 2010.
 
The total number of hogs under contract owned by operations with over 5,000 head, but raised by contractees, accounted for 47 percent of the total United States hog inventory, up from 45 percent last year.
 

The High Failure Rates With Goats:

-how much does this venture really cost
-goats are labor intensive
-dairy goats require twice per day milking
-does require bucks,more breeds you house,more bucks are needed to cover them
-bills,vet,medical,disease testing,electric,water,labor,etc.etc.all cost money from your pockets,might be sometime before your goats are able to pay for themselves
-need to have your family on the same page as yourself.What happens should you be the only one caring for the goats and then one day you become sick??Teamwork on any farm is important
-too many breeds,one single breed is easier to manage over many different breeds.Not every sire goes on to become the right sire for your herd,meaning,unknown sires have the unknown factor and may not display interest from others to purchase from you.I have seen goats score in the 90s that never produced offsprings that scored in the 90s while at the same time seen goats score in the 80s that produced offsprings that scored in the 90s.Nothing is a given here.Breeding junk only leads to a bigger junk pile
-learn to cull,having an outside fulltime job at the same time can lead to more problems than its worth.Need reasons why you wish to keep the goats you own and reasons why to cull the ones that do not fit into your plans in the first place.This is a business first, not a petting zoo

Remember-failure to plan leads to failure.In truth it will take longer and more money than you first budgeted for
-most failures occur within the first 5 years of start up
-keep your numbers at a level you can manage.Never buy more than you really need including equipement
-find a market for your product,goats do not market themselves unless you are that rare top of the line breeder that is high profile and your goats sell themselves
-breeding junk leads to owning a larger junkyard and finally bankruptcy
-there will be days you really hate this business
-goats today are a growth business worldwide.Personally I have yet to see or know of anyone who went from rags to riches overnight with this side of the business.The potential is there for the right people to enter the business and make money.Goats are like many other agri. ventures,once someone becomes uninterested with the whole set up,they usually look for something else to try.Time and money seems to be two of the deciding factors why people leave this business venture.

Michael
Mustang Sally Farm
meat the need: