EU Pig Sector Calls for Key Changes
EU - The representatives of the European farmers organisations, the meat industry and the feed industry COPA/COGECA, UECBV, FEFAC highlighted the case for a comprehensive action plan seeking to move the EU pig sector out of the present crisis situation at the Reflection Day organised by the Flemish Minister President Kris Peeters this week.


They insisted on the need to take a long-term approach to reinforce the long-term viability of the pig sector enhancing its capacity to supply sustainable, competitive pork to consumers in the EU and on world markets.

They are proposing a series of short-term, mid-term and long-term measures to maintain and develop the EU pork sector’s position as a world leader.

In the short term they want to see a key focus on reduction of production cost and effective market manegment measures.

The organisations say there are basically three categories of feed materials rich in protein: - Grain legumes (protein crops): peas, beans, lupins, soya and Co-products from the processing of oilseeds and grains: soybean meal, rapeseed meal.

Short-term actions to overcome the present market crisis include:

Strengthen effective market management tools and put measures in place to reduce excessive price volatility for the pig sector both for feed and meat and meat products.
Implement an EU wide protein plan to ensure adequate supplies of protein-rich feed to pig farmers at competitive prices, including o incentives to increase vegetable protein production in the EU, o the adoption of a GM “technical solution” o the lifting of the feed ban for processed animal proteins in pig feed
Don’t hamper competitiveness by imposing restrictive measures that EU cannot impose on third countries.
The mid-term actions to improve competitiveness and profitability of the pig sector include:

Grant pork “sensitive product” status in any ongoing or upcoming EU trade negotiation
Ensure a level-playing field with third-country competitors.
Increase efforts to capture and increase market share for EU pork exports in growth markets, particular in South-East Asia.
The long-term actions to ensure sustainability and viability of pork production in the EU include to:

Foster product innovation and modernisation in the pork production value chain
Focus on private and public R&D programmes seeking to improve the knowledge base and
Develop & adapt new technologies and their dissemination in the EU pig sector.

Smithfield Shows Record Results
US- Smithfield Foods has reported record results for the second quarter of teh 2011 financial year. 2011 second quarter results.


In the quarter, net income rose to $143.7 million, an improvement of $170.1 million compared to the second quarter of the 2010 financial year.

Consolidated operating profit improved by $276.3 million compared to a year ago.

In the pork sector sales for the second quarter of 2011 were $3.0 billion, up 11 per cent compared to the second quarter of fiscal 2010.

The year on year increase is primarily attributable to higher average unit selling prices in the Pork segment and higher live hog market prices.

The company reported net income in the current quarter of $143.7 million compared to a net loss of $26.4 million last year, an improvement of $170.1 million.

The current quarterly results include noteworthy items affecting pre-tax figures, including a $21.1 million favorable mark-to-market adjustment on open derivative positions, a net $19.1 million favourable adjustment for an insurance settlement related to the company's Missouri litigation, charges on the Hog Production cost savings initiative of $15.3 million and a loss of $7.3 million on the early extinguishment of debt.

"We are pleased to deliver another record quarter to our shareholders. Record earnings were driven by disciplined management in packaged meats and fresh pork accompanied by improved fundamentals in hog production," said C. Larry Pope, president and chief executive officer.

"Supply and demand remained well in balance in the quarter. Reduced protein supplies, coupled with strong protein demand, supported record high pork prices in all trade channels. Export demand for pork continued to be enhanced by a weak U.S. dollar, as the U.S. remained one of the lowest cost global protein producers," he continued.

"Again this quarter, we delivered solid packaged meats earnings that were within the normalized range, despite record high raw material costs. These stable earnings are the result of the Pork Group restructuring plan, which has allowed the company to continue to closely align higher production efficiencies, lower costs and a more coordinated sales and marketing focus," Mr. Pope said.

"On the sales and marketing front, we achieved successful growth of our Smithfield marinated fresh pork and Kretschmar Deli lines, which both posted double digit gains in the quarter.

"The dramatic turnaround in the Hog Production segment continued in the second quarter, as lower hog supplies increased live hog market prices, while raising costs remained in line with last year and the prior quarter. In addition, the Hog Production Group cost saving initiative is well underway and should significantly improve our long-term cost structure," Mr. Pope added.

Fresh pork margins were outstanding and reflected record high pork cutout values, as pork supplies remained tight, and more than offset significant year over year increases in live hog prices. Operating margins were 10 per cent, or $16 per head, despite a 54 per cent increase in live hog market prices and a 12% decrease in volume, as the company processed 13 per cent fewer head than in the prior year. The majority of the volume decline was the result of the closure of the Sioux City, Iowa plant in April 2010.

Packaged meats margins were within the normalized range, as the company's new consolidated sales and marketing platform effectively passed on higher raw material costs. Total packaged meats sales grew 12 per cent percent during the quarter to $1.4 billion and operating margins remained historically strong at five per cent, or $.12 per pound, despite the higher raw material costs and a six per cent decrease in volume.

Hog Production operating margins dramatically improved in the second quarter to $18 per head. Fewer hogs marketed increased live hog market prices 54% to $56 per hundredweight compared to $36 per hundredweight last year. Pre-interest raising costs were about equal to the prior year at $53 per hundredweight.

International segment operating profit matched strong earnings in the prior year. The company's Polish operations continued to deliver solid results, second only to last year's record earnings. Results in Romania were profitable, but below last year. Equity income increased over last year as performance in Mexican hog production improved and earnings from Campofrio trended higher.

Earlier this week, the company completed the sale of its 49 per cent interest in Butterball, LLC and related turkey production assets. The company does not anticipate a gain or loss on the transaction. Net proceeds of approximately $167 million are expected to be used to reduce debt.

Other segment results were reflective of losses in the company's turkey grow out operations, which have been sold. The company's investment in Butterball, together with its wholly-owned turkey production assets, comprised substantially all of the operations of the Other segment. Accordingly, the segment is not expected to generate further income or loss for the balance of the fiscal year.

During the quarter, the company retired $204 million of its $600 million, seven per cent coupon bonds due August 2011. In connection with these retirements, a charge of $7.3 million for early extinguishment of debt has been reflected in the second quarter consolidated statements of income.

In November and early December, the company retired an additional $318 million of these bonds, for an aggregate face value retired of $522 million. The company anticipates recording a charge of approximately $14 million in the third quarter for costs associated with the early extinguishments of debt. All of the debt repurchases were funded with available cash-on-hand and were made prior to receipt of the Butterball sale proceeds. Liquidity levels, after the debt repurchases and the receipt of the Butterball proceeds, continue to be in excess of $1.2 billion, including cash balances in excess of $300 million.

"Looking forward, continued strong fundamentals driven by reduced protein supplies, good export demand and management discipline will continue to propel very solid Pork segment earnings. In the Hog Production segment, raising costs will remain in the mid-$50's per hundredweight in fiscal 2011. Furthermore, we expect that there will be very little, if any, expansion in U.S. hog production in 2011," Mr. Pope said.

"The outlook for corn supplies and prices is getting brighter. We are encouraged that support for ethanol produced from corn appears to have diminished in recent months. The ethanol blenders tax credit, which is set to expire this year, has come under increased scrutiny in the media and in Congress, and may be reduced or even eliminated. While there is no way to predict the outcome, it's clear that the debate has shifted and more rational voices are being heard. It seems the question is no longer whether these subsidies should be continued, but rather how soon they should be eliminated," he said.

"Smithfield is performing at record levels and we are focused on continuing to deliver strong earnings in the second half of fiscal 2011. All indications are that fiscal 2011 will be a record year for the company," Mr. Pope concluded.

Hebei Hongdu to export pork to Singapore and Russia
[7 December 2010] Hongdu Group in China’s northern province of Hebei has commenced production at its newly established slaughter facility in Qinhuangdao, northeastern China’s Liaoning province. The plant is designed to handle 2 million pigs per year. Cost CNY 80 million (USD 12 million), the facility will produce 150,000 tonnes of fresh carcass per year and generate annual sales of CNY 2.6 billion (USD 388 million). The Group has targeted part of its output for export to Singapore and Russia.

Yeast culture products boost cow health 08 Dec 2010
Vi-COR, a manufacturer of specialized yeast culture products for poultry, swine and dairy feed, has devoted the past 12 years to understanding yeast culture and why it offers health benefits to livestock.

This understanding has driven the company’s development of livestock products such as Celmanax, which is helping dairy producers and university veterinary schools boost the health of their cows.
 
"Celmanax is a non-antibiotic remedy with no fear of doing harm to the animals," says Dr. Sheila McGuirk at University of Wisconsin School of Veterinary Medicine.
 
McGuirk and Dr. Keith Poulson use this yeast culture to treat calves and cows admitted to their teaching hospital for diagnosis and treatment of illnesses. It is an important part of their supportive care for these animals.
 
Use in working dairies
The benefits are also seen on working dairies. "We started adding the product to our calves' milk and noticed healthier, more aggressive calves," says Sutton Rucks, a dairy producer in Okeechobee, Florida.
 
"Our grower called and asked what we were doing differently. I told him, the only protocol change that we have made is the addition of yeast culture. His response was to keep using it."
 
"Celmanax is unlike any other yeast culture product on the market because it combines the benefits of yeast culture, yeast extract and hydrolyzed yeast," says Vi-COR CEO Mark Holt.
 
"When you buy this single product, you will see a much better return on investment than you would if buying and mixing multiple yeast products. "
 
Celmanax comes in three product forms:
- Dry is a granular product that is easy to handle and easy to dose for a variety of livestock.
- Liquid delivers the same benefits as dry yeast products and is specially formulated for liquid feed and milk replacer applications.
- SCP is the industry's first water-soluble yeast culture and is an ultra concentrated product.
 

“New Zealand's dairy farms may face a second year of drought” 08 Dec 2010
New Zealand’s largest dairy-farming region may face a summer drought for a second year, slowing the nation’s economic recovery and pushing up global milk prices.

The risk of a significant drought in Waikato, the largest milk-producing province, and Northland is “very high,” with little rain forecast for the next month, Agriculture Minister David Carter said in an interview from Christchurch.
 
“We are heading for extremely dry conditions, probably drought,” Carter said. “It’s not hard to get a significant drought in New Zealand making a difference to GDP.”
 
Lower farm production could curb New Zealand’s exports, which make up about 30% of the NZ$125 billion economy, and may push up global milk prices.
 
Price curb
Fonterra Cooperative Group Ltd., the largest dairy exporter, collected 4.3 percent less milk in the season ended May 31 than a year earlier because farmers halted milking early amid extremely dry conditions in Waikato.
 
“We’re monitoring the weather conditions closely,” a Fonterra spokesman said in a response to questions from Bloomberg. “While much of the country has had less rain than usual over the last six weeks, it’s too early to know what impact this will have on total milk production for the season.”
 
Farm profits
“We wonder if the weather risk is starting to be priced into the auction prices,” said Doug Steel, markets economist at Bank of New Zealand Ltd. in Wellington.
 
“The longer-term contracts well into next year are where the price rises occurred. I would suspect a little of that risk premium going into those longer-dated contracts now.”
 
As well as milk production, drought can disrupt livestock slaughter as farmers reduce stock levels earlier than normal, Steel said.
 
“If it doesn’t dent production itself it will put upward pressure on feed costs and profitability on farms is certainly going to decrease,” he said.
 
La Niña effect
New Zealand is experiencing a La Niña weather pattern, which is characterized by high early season temperatures, according to the National Institute of Water and Atmospheric Research.
 
Its forecasts to January suggest below-average rainfall and soil moisture levels are likely on the nation’s South Island and average rainfall in the north.
 
“It’s certainly a lot drier than normal north of Taupo,” said Steel, referring to a central North Island lake.
 
“The risk of a drought “is starting to turn a little bit into reality and as for January, February it remains an unknown but the signs aren’t looking that good,” he said.
 
Source: Bloomberg

CME: Livestock Imports from Canada Trend Lower
US - Cattle and hog imports from Canada have trended lower in recent years as a combination of a strong Canadian currency, declining livestock inventories and changes in US rules for handling imported livestock have negatively impacted trade flows, write Steve Meyer and Len Steiner.


It is important to recognize that following the NAFTA agreement, the US and Canadian livestock industries became increasingly integrated. In part this was supported by geography. It is much more efficient to have Canadian cattle flow into Western US packing plants from Alberta and Saskatchewan and have US beef flow into the populated centers of Eastern Canada. Also, Canada invested heavily in building feeder pig operations that quick quickly and efficiently service Midwest hog operations, many of them built when the Canadian dollar was trading at a significant discount tothe US currency.

Because of some technical difficulties, USDA stopped the release of import data in September and October but recently the data flow has resumed and USDA did provide the numbers for the missing weeks this falls. As the top chart show, feeder cattle imports from Canada remain quite limited and at some of the lowest levels in years. In the last six reported weeks (11 October - 20 November), USDA pegged imports of Canadian feeder cattle at 9,111 head, some 46 per cent lower than the comparable period a year ago and 82 per cent smaller than in 2008. Canadian feeder cattle supplies are quite tight and given the strong currency and good demand from domestic feedlots, there is very little incentive to ship feeders into the US market.

Also keep in mind that barley prices in Canada have not appreciated as much as corn prices in the US, making Canadian feedlots more competitive for Canadian feeder supplies. Omaha cash corn prices are currently running some 45 per cent ahead of last year’s levels, compared with Alberta barley which is currently up about 15 per cent compared to a year ago. More recently we have also seen a notable reduction in the number of Canadian slaughter cows coming into the US market. This is important as we see a developing shortage of grinding beef in the US due to very light shipments from Australia and New Zealand.

Canadian slaughter cow imports to the US in the last six reported weeks were 22,634 head, 7,096 head or 24 per cent lower than a year ago. Shipments of Canadian slaughter cows in January and February of 2010 were very strong, which helped offset the shortage of imported beef at the time. If current trends continue, imported beef will continue to be very tight in Q1 of 2011 and slaughter cow supplies, both US and Canadian, likely will be more limited. Shipments of Canadian feeder pigs also have drifted lower in 2009 and so far in 2010. In the last six reported weeks (11 October - 20 November), imports of Canadian feeder pigs were pegged at 516,667 head, 4 per cent lower than a year ago and 26 per cent lower than in 2008.

 

EU Pig Production to Fall
Pig production in the EU is expected to fall in the second half of next year and through into 2012, writes ThePigSite senior editor, Chris Harris.

Karsten Flemin, economist with the Danish Agriculture and Food Council, predicts that there will be a slight rise in production in this current last quarter of 2010 and output will rise slightly across Europe in the first half of 2011.

However, the rise in production will slow in the second quarter of the year and will start to fall in the second half of the year.

Mr Flemin said the virtually stable production next year – with increases mainly in Germany and Poland – will be the basis for better prices.

However, he said that production is likely to be affected by the new regulations that are coming in on loose housing and the ban on stalls and tethers in the EU and prices will also be dependent on volatile feed costs.

While production will rise and then is predicted to level off and fall in the EU next year, global production of pig meat is expected to rise.

Mr Flemin said that pig weights are expected to rise increasing the amount of pig meat on the market.

China, which this year is expected to see an increase in pig production of two per cent on 2009 from 48.905 million tonnes to 50 million tonnes, is forecast to continue production growth by another three per cent next year to 51.5 million tonnes.

EU production is expected to fall next year by one per cent from 22.25 million tonnes to 22.12 million tonnes.

However, the US, Russia and Brazil will all see rises in production of between two and three per cent.




Mr Flemin said that the rise in consumption demand in China will largely be met by increases in its own production. However, he predicted that its production will not be able to keep pace with demand because of the shortage of grain for feed.

"It is a question of whether they will import feed or meat," said Mr Flemin.

"If they take the steps towards GMO for crops, then they will be able to increase production of feed."

Mr Flemin added that while Brazil will be increasing its pig meat production, it will be hampered by the fact that many markets are not open to Brazilian pig meat.

"Russia is also increasing production but demand in Russia is increasing at the same rate as production," Mr Flemin said.

He said that Canada is reducing its production, but imports are fairly stable showing just a small increase.

He added that there will be a fall in production in Canada in the second half of 2011, but 2012 and 2013 will show the biggest dip.

Mr Flemin said that the US is forecast to have more meat to export in the second half of next year and there is generally expected to be a slight increase in pig meat trade.

However, he added that much depends on the fluctuating exchange rates and the fall in the value of the US dollar and the Japanese yen will affect pig prices.


"Demand in the EU is going down because of the tightening of the belt on the EU economy," Mr Flemin said.

"Because of these changes, poultry is going to be the big beneficiary worldwide.

"If the harvest fails again in some countries, then feed prices are going to stay up and this will affect pig meat production.

Contaminated Pig Tails Seized in Far East
RUSSIA - Russia's agriculture health watchdog has seized 25 tons of listeria-contaminated pig tails in the Far East, Rosselkhoznadzor aide, Vitaly Salenko, said earlier today.


RIA Novosti reports that the unique culinary delicacy was shipped from Germany.

"The entire meat lot was addressed to an individual businessman in Khabarovsk and was to be sold in one of the city's supermarket chains," Mr Salenko said.

Listeria is a bacterium that causes listeriosis, a potentially lethal infection found in plants and some animal products that manifests itself as meningitis and can lead to the death of unborn children.

Listeriosis carries a 25 per cent mortality rate in humans, in comparison with salmonella, which carries a 1 per cent death rate.

Pork Commentary: Iowa–Southern Minnesota Lean Average
US - In this week's Pork Commentary, Jim Long writes about the Iowa – Southern Minnesota lean hog market.
Jim Long is President &
CEO of Genesus Genetics.
Iowa – Southern Minnesota closed last Friday with an average lean average of $65.55 while the National 53 – 54 per cent leanCash USDA National Direct early weans and feeder pigs continue to gain strength. Last week cash early weans averaged $47.95 and 40 pound feeder pigs $57.26. These are strong prices when you consider the cash hog market is leading to $20 per head losses. The only way the prices jumped up to $5.00 per head higher last week is strong demand and restricted supply. With summer lean hog futures ranging from $87 - $89.50 it appears buyers don’t want to miss out! was $69.79. Considering the average lean hog is over 54 per cent the National Average is probably a good reflection of the market. The USDA pork cut – outs were 77.12 at the end of the week. Packers spread between the purchase price of hogs and the selling price of pork is still good but not as great as it was. With feed prices where they are we would estimate the average producer is losing about $20 per head farrow to finish. We believe that producers need 80 cents lean per pound with premiums for breakevens. February lean hog futures closed Friday at 76.575 cents per pound, with grade premiums February futures reflect an 80-cent per pound market. If futures reflect the future, it means mostly losing money until February at current costs.

Other Observations
There is no question hog weights are strong. The latest Iowa – Southern Minnesota is 275.16, a year ago 269.5. That 5.5 pound difference is adding more pork on the market and obviously pressuring prices lower. We expect weights will decline in the coming weeks. One thing we have noticed on our Genesus customer grade sheets as market weights have gone up is the ability to maintain strong lean meat percentages and grade premiums. Such a strong financial return and gross revenue per hog will in all likelihood encourage weights staying higher. The fact is some new modern genetics can stay lean at heavier weights and maintain good feed conversions.

Cash USDA National Direct early weans and feeder pigs continue to gain strength. Last week cash early weans averaged $47.95 and 40 pound feeder pigs $57.26. These are strong prices when you consider the cash hog market is leading to $20 per head losses. The only way the prices jumped up to $5.00 per head higher last week is strong demand and restricted supply. With summer lean hog futures ranging from $87 - $89.50 it appears buyers don’t want to miss out!

Cattle futures are showing strong optimism closing at $1.09 per pound, up over $100 per head in the last couple months. Higher cattle prices will help hog prices in the coming months.

Chicken suicide watch – After seeing several weeks of 6 – 7 per cent greater broiler egg sets. The latest data shows 2 per cent more egg sets. Is $5.00 corn finally sinking in?! We don’t need 14 million more chickens a week year over year as the chicken integrators were on pace for. As we said many times before last time $5.00 corn came along Pilgrim’s Pride the worlds largest chicken producer went broke. The hog industry has shown production restraint, the cattle industry the same hopefully, and the chicken industry manages to control their suicidal production impulse.

Corn Ethanol tax credits of 45 cents and tariffs of 54 cents are set to expire at the end of December. Full panic is setting in for the government free loaders in the ethanol industry. Consumer groups, environmentalists, former investor of climate change vice – president Gore, food companies, and of course livestock producers are lining up against these foolish subsidies that will cost the US treasury $7 billion a year plus the untold billions in higher food costs that in itself causes economic, social, and moral implications.

The reality driving up US food prices is a direct attack on the American Dream, American affluence, and the standard of living has been driven by agriculture productivity that allows US consumers to spend approximately 10 per cent of their disposal income on food. The 10 per cent is far less than any other country in the world. The 90 per cent remaining disposal income has driven the ability for American consumers to purchase homes, vehicles, educate their families, etc... Going forward higher spending on food caused by higher corn prices (ethanol) will delay the economic recovery as consumers have less disposal income for other items.

Now is your chance as a livestock producer to contact your congressman and senator to tell them what you think of Corn Ethanol. Lobbying works – calls from real people are very effective.


Author: Jim Long, President & CEO, Genesus Genetics

Asia drives global milk production growth 08 Dec 2010
World milk production is expected to reach 710.3 million tonnes this year, an increase of 1.6% on last year, according to the United Nation's latest figures.

The projected total represented a recovery from the low performance of last year the UN report says, but milk production remained below the average annual growth rate of 2.1% during the past decade.
 
"Additional output from China and India, the major contributors to the expansion of production, amount to 8.4 million tonnes, and account for 58% of the world increase," the report said.
 
"Brazil, the EU and the United States also play their parts by adding another 2.6 million tonnes."
 
Asia largest producer
According to the UN, Asia - with an output of 257 million tonnes - remains the world's biggest milk producer and boasts the highest rate of annual growth.
 
Lower production in Pakistan, where floods are expected to wipe off 8% of output, has led to a reduction in the initial 4% production growth forecast, to 2.6%.
 
Due to improved cow yields and lower slaughter rates, US production is forecast to increase 1.1% this year to 87 million tonnes. EU production is forecast to increase just 1% to 133 million tonnes.
 
Firm prices
On the price front, the UN's international dairy products price index has remained firm throughout this year.
 
While the UN said this was in contrast to the "swings" of the past two years, the index remains 20% below its early 2008 peak.
 
"Factors contributing to the sustained firm prices include strong demand from Asia, the Russian Federation and some oil-exporting countries and, more recently, a steady weakening of the US dollar against major currencies which increases dollar-denominated commodity prices," the report says.
 
"On the supply side, relatively weak growth in milk production from reduced cattle herds, particularly in some exporting regions, has under-pinned firm prices."
 
Feed prices suppress growth
It's expected higher feed prices would limit milk production expansion in the US next year, according to the US Department of Agriculture's Livestock, Dairy and Poultry Outlook released last month.
 
"The upward movement in feed prices will pressure producer margins and will likely curtail the modest recovery in cow numbers that began early this year," the report says.
 
Australia ups production
The rains which are dogging Australia's grain growers present a boon to the country's dairy farmers – a ready supply of fodder at a time when peers in some other countries face a shortage.
 
Australian milk production, dogged by drought for much of the last decade, is to rise by 300,000 tonnes next year to 9.7m tonnes, as the benefits of the rains help lift yields per cow near to record levels, the US Department of Agriculture's Canberra bureau said.
 
Source: WeeklyTimes, Australia

The benefits of yeast in ruminant nutrition 08 Dec 2010
Some 300 delegates went to Lille in France to attend the first European symposium organised by LeSaffre Feed Additives on “Yeast solutions – the benefit of using live yeasts in ruminant nutrition”. Five renowned speakers talked about the latest developments in this field.
Related

A number of strategies have been used to enhance ruminal fermentation. Antibiotics and ionophores have been effective but were banned in the EU at the beginning of 2006 for safety reasons.
 
Direct fed microbials
To substitute these questionable ingredients biological additives have been introduced, including microorganisms, enzymes and plant products. “None of these manipulating additives has been introduced in a rational way until now”, said John Wallace, group leader of the Microbial Metabolism group at the Rowett Institute in Scotland. “Their effects were discovered only after overall benefit had been observed.”
 
Wallace believes direct fed microbials arguably offer the greatest potential for manipulation of ruminal fermentation. “They offer a huge spectrum of metabolic activities and enzymes as well as metabolites. They also enable selection of strains or mutants best suited for particular applications,” Wallace said.
 
Saccharomyces cerevisiae
Wallace thinks the yeast species of Saccharomyces serevisiae is an especially attractive organism in ruminants. “It is metabolically active in the rumen but does not grow, which means that its construction and activity can be readily controlled by its dietary inclusion level, ensuring maximum efficacy.”
 
The yeast does not grow in the rumen due to the high concentration of volatile fatty acids, but remains biochemically active. Its suggested mode of action is, amongst others, scavenging oxygen, which needs to be absent in the anaerobic environment of the rumen. “As a result we see increased bacterial viability,” Wallace said.
 
Redox potential
Reduction potential (also known as redox potential, oxidation / reduction potential or ORP) according to Wikipedia is a measure of the tendency of a chemical species to acquire electrons and thereby be reduced.
 
Reduction potential is measured in volts (V), millivolts (mV), or Eh (1 Eh = 1 mV). Each species has its own intrinsic reduction potential; the more positive the potential, the greater the species' affinity for electrons and tendency to be reduced.
 
Emilio Ungerfeld of Lethbridge Research Centre (Agriculture and Agri-Food Canada) elaborated on the biological significance of the measurement of redox potential.
 
In the rumen, the main electron donors are carbohydrates and some important electron acceptors are CO2, formate, oxaloacetate, fumerate, pyruvate, and others.
 
The main electron sinks (uptakes) are |NH3, propionate and microbial mass, and the carbon sinks are acetate, propionate, butyrate, CO2, NH3 and microbial biomass.
 
Ruminal competition
“Ruminal fermentation pathways compete for electrons and carbon,” Ungerfeld said. “It is of interest to understand how that competition is controlled.”
 
After the theoretical discussion of Ungerfeld, Corine Bayourthe from the National School of Agronomy in Toulouse, France shared more practical experiences with redox status as a promising new way to explore live yeast metabolism in the rumen.
 
According to Bayourthe, “the redox reductions that prevail in the gut can have a major impact on the digestion, metabolism and assimilation of ingested nutrients. The oxygen status determines whether anaerobic fermentation or aerobic oxidation of nutrients prevail.”
 
Earlier research had shown that the rumen contents of dry and lactating cows had a markedly negative Eh varying from -220 to -115 mV. “If the level of dry matter intake could partly explain the variation between these values, then the type of diet fed could also influence Eh,” Bayourthe said.
 
Research by Julien and co-workers in 2010 focused on Eh in the rumen. It was found that a fibre-rich diet is characterised by low Eh values of the ruminal content, while a high Eh is observed with a ready fermentable carbohydrates0rich diet. According to Julien the Eh directly originated from microbial activity. It reflects an environment with strong reducing potential due to the quasi-absence of oxygen, favourable to strictly anaerobic bacteria.
 
Role of yeast in reducing Eh
Live yeast used as a dietary feed additive for dairy cows present an intrinsic capacity to reduce the Eh level studies revealed. “Live yeast supplementation via the modulation of ruminal Eh can be a good means to stimulate adequate microflora for better digestive efficiency of the diet,” Bayourthe said.
 
Furthermore live yeast influences the bacterial populations in the rumen, a subject Jamie Newbold of the Aberystwyth University in Wales in the UK presented in more detail. He is intrigued by the fact that feeding live yeast at non-nutritional levels (0.5-20g/d) effects the bacterial population in the rumen. “Doing so we see an increase in microbial protein and more fibre degradation, and above all in increase in bacterial numbers, even op to 130%,” Newbold said.
 
Oxygen scavenging capability
Newbold suggests that yeast stimulates oxygen removal in the rumen, because oxygen slows down bacterial activity. However, not all yeasts have the same scavenging capabilities. Also different levels of yeast give different levels of bacteria.
 “We have noted that not all strains of yeast are capable of stimulating digestion in the rumen. Certain strains of Saccharomyces cerevisiae can help prevent the decrease in rumen pH associated with feeding a cereal based diet and this appears to be associated with a decrease in rumen lactate concentrations,” Newbold said. “However, it is not clear yet how yeast prevents the post feeding decline in rumen pH.”
 
Newbold concluded that S. Cerevisiae can help prevent a post feeding drop in rumen pH in animals fed concentrate diets and thus reducing the likelihood of both clinical and subclinical acidosis. “This appears to be due to the ability of the yeast to selectively stimulate the growth of lactate utilising bacteria in the rumen,” Newbold said.
 
Field application
As Newbold already suggested, can yeast help in prevention of acidosis. Scientists around the world give their own description and definition of acidosis, which basically originates from an accumulation of strong acids in the rumen due to the consumption of a large proportion of readily fermentable carbohydrates by the cow.
 
Newbold also noted that both bicarbonate and yeast simulate bacterial growth, probably due to the rise of pH. But only yeast stimulates lactic acid bacteria.
 
Research at LFA
Jean-Philippe Marden of LeSaffre Feed Additives (LFA) considers redox potential a valuable tool in reducing acidosis incidences. “For seven years now, LFA Ruminant research team devoted much interest in the proper measurement and interpretation of such parameters that can be applied in the rumen environment,” he said.
 
After the setting up of a redox measurement methodology, the gathered Eh data proved to be complementary to pH in order to better approach rumen bioenergetics and the involved mechanisms.
 
“The redox and bioenergetic concept coupled with evolving bio-molecular techniques allowed a better understanding in the mode of action of live yeast in ruminants,” Marden said. As an example he said that in a comparison between two different buffering agents – live yeast and bicarbonate – showed different actions on rumen physio-chemical, fermentation and fibre degradation parameters.
 
Further research in developments is carried out at LFA. Marden said the objectives were to find new measuring redox probes for non-cannulated and pasture-fed animals along with modelling of Eh regarding diet composition and feed additives.

Two new hatcheries for Eastern Visayas
[7 December 2010] With demand for fingerlings in mariculture zones on the rise, the Philippine Bureau of Fisheries and Aquatic Resources (BFAR) will spend PHP 28 million (USD 642,939) to build to multi-species hatcheries to supply the requirements of mariculture areas in Eastern Visayas. In a report by BusinessWorld, BFAR Regional Director Juan Albaladejo said the facilities, estimated to cost PHP 14 million (USD 321,450) each, will begin construction in the first quarter of 2011. Both facilities are scheduled for construction in the first quarter of next year. Eastern Visayas has 14 mariculture parks with 346 cages, which need several tonnes of fingerlings of various species every setting.

US soybean farmers seek to increase share in Philippine market
[7 December 2010] US soybean farmers are looking to increase its share in the Philippine market as it projects higher demand from the livestock and poultry sector. In a statement, the Philippine Association of Feed Millers Inc (PAFMI) said the rising consumption of pork and poultry products will drive demand for feed ingredients like soybean meal and US producers are among those hoping to cash in. To boost sales, AG Processors (AGP), a leading soybean supplier to the Philippines last week led a 15-man delegation to the country to meet with local feed millers, hog raisers and poultry operators. The group is expanding its export facilities in Aberdeen, Washington to meet the growing requirements of Pacific Rim countries including the Philippines. Last year, the Philippines imported 1.5 million tonnes of SBM, with US producers accounting for 35% of the total imports.

Meat importers assures safety of frozen meat
[6 December 2010] The Meat Importers and Traders Association (MITA) has disputed claims that all frozen meat sold in the local markets are unsafe. MITA President Jesus Cham said that all legally imported meat are sourced from HAACP-certified producers who export their products all over the world, and thus “it is unreasonable and unscientific to claim that the products that are deemed ‘safe’ in other countries are ‘unsafe’ in the Philippines.” He added that the sources of the meat, which come with international health certificates, have been accredited by the Bureau of Animal Industry (BAI) and the National Meat Inspection Service (NMIS). Once in the Philippines, the imported frozen meat is subject to BAI quarantine clearance and NMIS food safety inspection and stored in duly accredited cold storages under the supervision of NMIS.

China to buy 5.5 mmt of US soy
[6 December 2010] China signed an agreement with the US soybean industry on November 22 to buy another 5.5mmt of soybean. This confirms that transportation demand to ship U.S. soybeans will remain strong in the coming months. US soybean commitments at 19.5 mmt (shipments and outstanding sales) for the current year to China are already up nearly 3 mmt from last year. In November, USDA projected that China will import 57 mmt of soybeans in 2010/11, with the United States and Brazil as the main suppliers.