SA_LS320
San Angelo, TX    Wed Jun 27, 2012   USDA Market News

Producers Livestock Auction Co, San Angelo, Texas

Sheep and Goat Auction:
Weekly:

Total Receipts:  8626    Last Week:  4853    Year Ago:  10,225
Sheep Receipts:  4181    Last Week:  2612    Year Ago:    5006
Goat  Receipts:  4445    Last Week:  2241    Year Ago:    5219

  Compared to last week heavy slaughter lambs not well tested; light
slaughter lambs weak to 5.00 lower.  Slaughter ewes steady.  Feeder
lambs 5.00-8.00 lower.  Nannies weak; kids 5.00-10.00 higher.  Trading
and demand moderate.  Supply included 15 percent slaughter lambs, 10
percent slaughter ewes, 20 percent feeder lambs, balance goats.  All
slaughter lambs went to non-traditional markets.  All sheep and goats
sold per hundred weight (CWT) unless otherwise specified.

SLAUGHTER LAMBS:
   Choice 2-3 shorn and wooled 100-165 lbs 106.00-120.00.

   Choice and Prime 1 40-60 lbs 130.00-156.00; 60-70 lbs 122.00-138.00,
few 158.00; 70-80 lbs 121.00-142.00; 80-90 lbs 116.00-122.00; 90-100 lbs
112.00-125.00, few 130.00.
Choice 1 40-60 lbs 112.00-130.00; 60-70 lbs 110.00-120.00; 70-80 lbs
106.00-120.00; 80-90 lbs 100.00-114.00; 90-110 lbs 100.00-110.00.
Good 1 60-105 lbs 90.00-100.00.

SLAUGHTER EWES:
   Good 2-3 (fleshy) 44.00-49.00; Utility and Good 1-3 (medium flesh)
50.00-60.00, few 62.00; Utility 1-2 (thin) 40.00-50.00; Cull and Utility
1-2 (very thin) 35.00-40.00; Cull 1 (extremely thin) 25.00-32.00.

SLAUGHTER BUCKS:
   40.00-70.00.

FEEDER LAMBS:
   Medium and Large 1-2 40-60 lbs 130.00-144.00; 60-105 lbs 125.00-130.00,
few 134.00.
   Medium and Large 2 40-90 lbs 114.00-125.00.

REPLACEMENT EWES:
   Medium and Large 1-2 baby tooth 86.00-102.00 per head; yearling hair
ewes 120.00-128.00 per head; baby tooth hair ewes 107.00-120.00 per head.


GOATS:  Estimated 55 percent of receipts:
All sold per hundred weight (CWT) unless otherwise specified.

SLAUGHTER CLASSES:
   KIDS:  Selection 1 30-40 lbs 162.00-186.00; 40-80 lbs 155.00-170.50,
few 170.00-185.00; 80-110 lbs 170.00-190.00.
Selection 1-2 30-40 lbs 135.00-155.00; 40-80 lbs 140.00-155.00; 80-100
lbs 140.00-160.00.
Selection 2 25-40 lbs 120.00-135.00; 40-80 lbs 116.00-140.00.
   DOES/NANNIES:  Selection 1-2 80-120 lbs 94.00-112.00; 120-130 lbs
80.00-100.00; 130-160 lbs 70.00-90.00; thin 70-115 lbs 70.00-95.00, few
105.00.
   BUCKS/BILLIES:  Selection 1-2 70-100 lbs 126.00-144.00; 100-150 lbs
108.00-124.00, yearlings 126.00-144.00; 150-250 lbs 100.00-116.00, few
122.00-128.00.

REPLACEMENT CLASSES:
   DOES/NANNIES: Selection 1 60-70 lbs 144.00-156.00.
Selection 1-2 60-120 lbs 114.00-140.00.


Producers Livestock Auction and the USDA Livestock Market News Office will
be closed next week for the July 4th Holiday. The next sheep sale will be
July 10, 2012.

************************************************************************

Source:  USDA Market News Service, San Angelo, Texas

Fish Oil Makes
Goat Cheese Healthier

By Alan Harman


 
Fish oil can be added to goat cheese to deliver high levels of heart-healthy omega-3 fatty acids without compromising taste or shelf life, University of Maine food scientists report.
 
A study in the Journal of Food Science, published by the Institute of Food Technologists, showed that fish oil delivers higher levels and more balanced proportions of omega-3 fatty acids compared to other sources such as flax and algal oil.
 
Fish oil oxidizes more quickly, making food fortification a challenge. Given the cost of purified fish oil, maximizing its incorporation efficiency is critical to the commercial viability of fortified cheese.
 
The Maine researchers said dairy has been shown to be a good matrix for fish oil fortification because it is commonly consumed and has unique properties that seem to protect fish oil.
 
Soft goat cheese has lower fat than other cheeses making it appealing for those looking for healthy flavorful food choices.
 
In the latest research, goat cheese was successfully fortified to deliver 127 mg omega-3 fatty acids per 28 g serving without affecting shelf life or consumer purchase intent.
 
There is a growing body of evidence that omega-3 fatty acids from fish, particularly eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA), are not only beneficial for general health and well-being, but also play a vital role in preventing chronic diseases.
 
EPA and DHA have been shown to improve insulin sensitivity in type II diabetics, lower blood pressure, and improve arterial elasticity in patients at risk for cardiovascular disease. Omega-3 fatty acids have also been shown to minimize the effects of stroke, improve cognition in the elderly, alleviate symptoms associated with rheumatoid arthritis, and reduce risk for osteoporosis.
 
Omega-3 fatty acid fortification is one of the fastest growing trends in the food industry with 42% of consumers making efforts to eat more omega-3 fatty acid rich foods.
 
The most common problem related to fish oil fortification is the "fishy" odor that accompanies lipid oxidation of unstable polyunsaturated fatty acids (PUFA) in the presence of light, oxygen, and heat.
 
Another challenge of fortifying foods with omega-3 PUFA is that the low levels of fish oil shown to maintain product acceptability require consumers to eat greater quantities of fortified foods to meet recommended levels of PUFA consumption.
 
Due to their natural emulsion state, dairy products, such as yogurt, butter, milk, and sour cream, have been shown to be an excellent matrix for fish oil fortification.
 
Although several studies have investigated cheese as a vehicle for fish oil fortification, fish oil fortified cheeses are not available in the U.S. market.
 
Fish oil fortified cheddar cheese was produced by researchers in 2009, but "fishy" odors were detected by a trained descriptive panel at the highest fortification level, limiting fortification to low levels.
 
Other researchers added fish oil to a variety of dairy products, including soft cheeses, but found the samples were unacceptable to a trained panel after four weeks of refrigerated storage.
 
These studies each incorporated the fish oil after the cheese curd had formed, which may have contributed to the early onset of "fishy" flavor detected by trained panels.
 
The Maine researchers incorporated different levels of purified, liquid fish oil to soft goat cheese prior to curd formation to maximize delivery of EPA and DHA per serving without negatively affecting oxidative stability or consumer acceptance.
 
Researchers Brianna Hughes, Brian Perkins, Beth Calder and Denise Skonberg fortified soft goat cheese with four levels of purified fish oil—0, 60, 80, and 100 g fish oil per 3,600 g goat milk—prior to curd formation to deliver high levels of eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) per serving.
 
The cheese was partially vacuum-packed and stored at 35.6°F for four weeks, then evaluated for composition, EPA and DHA content, oxidative stability, color, pH, and consumer acceptability.
 
The fat content was significantly higher in the fortified treatments compared to the control, but was not significantly different among fortified treatments.
 
EPA and DHA contents were not significantly different among fortified samples, averaging 127 mg EPA and DHA per 28 g serving.
 
No significant lipid oxidation was detected by thiobarbituric acid reactive substances (TBARS) or hexanal and propanal headspace analyses over the four-week refrigerated shelf-life study for any treatments.
 
The fortified cheeses were all liked "moderately" by consumers for overall acceptability, although the 60 g fortification level did rate significantly higher.
 
The control cheese and the 60 g fortification level had no significant differences in consumer purchase intent.
 
The researchers said the results show that fortification levels of up to 127 mg EPA and DHA per serving may be added to soft cheese without negatively affecting shelf life or consumer purchase intent.
 
Despite minor visible loss of fish oil to the whey fraction, which was not quantified, there were no significant differences in yield between the control and the fortified samples suggesting the addition of fish oil did not affect curd formation.
 
Moisture and fat content did not differ significantly among fortified treatments, but the fortified treatments differed significantly from the control.
 
Moisture content averaged 62.7% for fortified treatments and 66.2% for the control.
 
"The 3.5% (percentage point) lower moisture content of the fortified treatments was inversely proportional to the increase in fat due to the addition of the fish oil," the researchers reported.
 
Fat content ranged from 15% to 19.5% and was significantly higher in fortified samples than the control sample (15%) indicating that the fish oil was incorporated into the curd.
 
However, oil incorporation was limited above the 60 g fortification level. Fortified treatments, while not significantly different in fat content, did increase from 17.9% (lowest fortification level) to 19.5% (highest fortification level). Improving homogenization efficiency and/or reducing curd formation time may increase oil incorporation above 60 g.
 
In a study in 2009, Cheddar cheese was fortified with encapsulated fish oil after processing and no significant differences in moisture or fat content between control and fortified samples were found.
 
In contrast, this goat cheese study showed significant differences between control and fortified cheese for both moisture and fat content suggesting greater incorporation of fish oil into the cheese curd than was seen in other fortified cheese studies.
 
The researchers said that it can be concluded from the fat content and EPA and DHA levels that the lowest level of fortification, 60 g of added fish oil, was the only level efficiently incorporated into the cheese.
 
This is enough to provide a high level (about 127 mg) of omega-3 fatty acids per serving. The researchers say the delivery of higher fortification levels requires further investigation to maximize incorporation of the oil into the curd.
 
The processing and packaging methods used in this project were sufficient to limit the oxidation of both the goat cheese (seen by the control) and the fish oil (seen by the fortified treatments).
 
"The lack of oxidation during four-weeks of storage is encouraging, and longer shelf life tests are warranted to determine when and if oxidative changes occur in the highly fortified goat cheese," the researchers report.
 
They said no differences in cheese color were observed during cheese processing or throughout the shelf life study. Initial cheese color did not change appreciably as the level of fish oil increased.
 
Cheese for the consumer acceptability study was prepared in the same manner as the cheese prepared for the analytical study and at the same fortification levels.
 
Consumer testing was conducted at the University of Maine's Consumer Testing Center with 105 untrained participants from the community.
 
The four samples were coded and randomized before being presented to participants with 5 g cheese samples on plain wheat crackers and participants were given a cup of water to cleanse their palates between samples.
 
A questionnaire asked participants to indicate how often they ate goat cheese, as well as to rate the appearance, color, aroma, flavor, creaminess, and overall acceptability of each sample using the Hedonic Scale, the most widely used measure of food acceptability with a nine-point range from dislike extremely to like extremely.
 
The participants' purchase intent for each sample was rated with a five-point hedonic scale from definitely won't buy to definitely will buy.
 
The scores among treatments for appearance, color, and aroma did not show any significant differences, indicating consumers found the fish oil fortified samples to be as acceptable as the control sample for these three attributes.
 
Appearance and color scores averaged 7.5, while aroma scores were slightly lower with an average of 6.9, equal to "like moderately."
 
The control sample rated significantly higher for creaminess, taste, and overall acceptability when compared to the fortified samples, which may be attributed to the higher fat content of the fortified samples.
 
Scores for taste were similar to those for creaminess, with the control sample having significantly higher acceptability (7.5) than the fortified samples that had scores ranging from 6.7 to 7. Overall acceptability of the control averaged 7.6, followed by the 60 g fish oil treatment with a score of 7.2.
 
The higher fortification treatments, 80 g and 100 g added fish oil, averaged a score of 7.0 for overall acceptability but were significantly lower than the 60 g fish oil treatment for overall acceptance.
 
The majority of comments made by consumer panelists were about the tangy, sharp, acid flavor of the goat cheese and the pleasant smoothness of the texture, although a small number of panelists perceived oiliness in the fortified cheese. This may have been due to the greater amount of fat in the cheese, and not specifically the addition of fish oil.
 
The researchers say textural attributes could be easily modified with gums or by slight adjustments to cheese processing methods.
 
There were only five comments from the 105 participants that mentioned "fishy" or "seafood" aromas, flavors, or aftertastes even with the fortification levels of about 127 mg EPA and DHA per serving.
 
Despite the statistically significant differences in overall acceptability of the goat cheese treatments, the hedonic values among treatments were close with an average acceptability in the "like moderately" range (6.5 to 7.5).
 
This level of acceptance of the fortified cheese is seen as promising considering that 40% of participants "never or rarely" eat goat cheese, which may have slightly depressed some values.
 
Improved scores could be attained by using only panelists who commonly consume goat cheese or by adding flavor compounds to the cheese such as herbs and spices.
 
Of the 105 respondents, 74% indicated they "might" or "definitely" would purchase the cheese with the lowest level of fortification (60 g fish oil).
 
Similar purchase intent was observed for the control, which indicates that despite significant differences between the two for overall acceptability, 60 g of added fish oil may be a marketable level for fortification.
 
This conclusion is further supported by results that demonstrated no significant differences among fortified treatments for proximate composition, oxidative stability, or EPA and DHA content.
 
"Excellent Source" labeling has been proposed for foods containing at least 20% of the proposed RDI of 160 mg EPA and DHA, or 32 mg, per serving. If approved, the fortified goat cheese would qualify for the "Excellent Source" claim as it provides 79% of the proposed RDI for EPA and DHA.
 
The researchers said soft goat cheese was successfully fortified with fish oil yielding a product that contained about 127 mg EPA and DHA per 28 g serving—nearly four times the level required to meet the proposed "Excellent Source" guidelines.
 
Proximate composition, color, pH, and yield were not negatively affected by fish oil fortification of the cheese. In addition to partial vacuum packaging, the addition of fish oil to goat cheese prior to curd formation may have contributed to the enhanced oxidative stability of the fish oil observed in this study.
 
No change in oxidative stability was seen during four weeks of refrigerated storage and there was negligible difference in consumer purchase intent between fish oil fortified goat cheese and the control cheese.
 
"These results have positive implications for high-level fish oil fortification of dairy products," the researchers' report stated. "Important directions for future research include assessing fish oil fortification pre- and post-processing of dairy products, determining the upper threshold of fish oil incorporation into soft curd cheeses, and conducting longer shelf life studies to demonstrate commercial feasibility of fish oil fortified cheese."
 

U.S. Dairy Goat Inventory
Holds Steady

By Alan Harman


 
American milk goat numbers were unchanged last year as the national goat herd fell 4%.
 
The USDA's National Agricultural Statistics Service says the U.S. all goat inventory was 2.86 million head on January 1 while milk goat numbers held at 360,000.
 
The data shows the breeding goat inventory fell 4% year-on-year to 2.38 million head. Does one year old and older, at 1.78 million head, were down 3% while market goats and kids fell 5% to 487,000 head.
 
The kid crop fell 2% last year to 1.88 million head.
 
Meat and all other goats dropped 4% to 2.36 million head, while Angora goats fell 15% to 146,000 head.
 
Mohair production was 865,000 pounds from 149,000 goats and kids clipped for an average weight per clip of 5.8 pounds. Mohair price was $4.12 a pound with a value of $3.56 million.
 
NASS obtained the figures through a random sample of producers. Survey procedures ensured that all goat producers, regardless of size, had a chance to be included. Large producers were sampled more heavily than small operations.
 
About 23,000 operators were contacted during the first half of January by mail, telephone and face-to-face personal interviews to report their inventories as of January 1 and 77% of the reports were usable.
 



Milk goat inventory by state



State/Region

2011

2012

 2012 as
% of 2011

 

Alabama:

4000

3300

83

 

Arizona:

2000

3000

150

 

Arkansas:

4800

4700

98

 

California:

38000

41000

108

 

Colorado:

8200

11000

134

 

Florida:

5000

6000

120

 

Georgia:

3000

2900

97

 

Idaho:

3500

4000

114

 

Illinois:

4500

3900

87

 

Indiana:

12000

11500

96

 

Iowa:

31000

32500

105

 

Kansas:

4700

5300

113

 

Kentucky:

5500

7000

127

 

Louisiana:

1200

1300

108

 

Maryland:

1800

2300

128

 

Michigan:

10800

10000

93

 

Minnesota:

12000

11500

96

 

Mississippi:

3000

3100

103

 

Missouri:

11000

9000

82

 

Montana:

2600

2500

96

 

Nebraska:

2900

3100

107

 

New England1:

12700

11100

87

 

New Jersey:

2500

2000

80

 

New Mexico:

2800

2800

100

 

New York:

13000

12800

98

 

North Carolina:

7000

6300

90

 

Ohio:

8000

10000

125

 

Oklahoma:

6000

7000

117

 

Oregon:

9100

10700

118

 

Pennsylvania:

16000

15000

94

 

South Carolina:

2800

3000

107

 

South Dakota:

2300

2100

91

 

Tennessee:

7500

9000

120

 

Texas:

20000

20000

100

 

Utah:

2400

1800

75

 

Virginia:

5900

5200

88

 

Washington:

8500

6700

79

 

West Virginia:

2500

2500

100

 

Wisconsin:

50000

44000

88

 

Wyoming:

1400

1100

79

 

Other States2:

8100

8000

99

 

United States:

360000

360000

100

 

1 Includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.
 2 Unpublished states.
Source: NASS

The Biology of the Goat

Milk Goiter in Goat Kids
 
Owners of Nubians, Boers and a few other breeds of goats are familiar with the large throat swellings that occur on the sides of the neck just under jaw line and sometimes including the area under the jaw in young kids. These soft swellings, called "milk goiter", will begin to appear at about a week of age, increasing in size to about 4 months of age, then will regress by the time the kid is 6 to 9 months old.
 
The explanation for these swellings most often is that milk goiter is caused by the rich milk of their dam. On the surface this makes sense since the kids have goiters while nursing then the goiters will decrease in size about the same time that they are weaned. However, milk goiter can also appear in kids raised on pasteurized goat milk or milk replacer.
 
Some owners will panic thinking these swellings could be the first sign of CL (caseous lymphadenitis) or some other infection of the lymph nodes found in the neck.
 
Others will attempt to cure milk goiters by spraying a strong iodine solution on kids' tender skin around the genital area. The suggestion is that milk goiters are enlarged thyroid glands due to an iodine deficiency in a fast growing kid. According to anecdotal reports, the swellings go away within days following this treatment, although more frequently repeated iodine treatments are required to reduce the size of the throat swellings.
 


Is milk goiter due to iodine deficiency?
 Large throat swellings called goiter in humans was and is still common in many parts of the world due to a deficiency in iodine in the diet.
 Iodine is an essential component of the hormones produced by the thyroid gland. These hormones called T4 and T3 are essential for cell metabolism, and growth, maintenance of connective tissue and development of the nervous system in the fetus and newborn. If there is a deficiency of iodine in the diet, these hormones cannot be produced.
 
From its position at the base of the brain, the pituitary gland monitors the levels of hormones in the blood. If a low level of thyroid hormones is detected, the pituitary gland sends out its own hormone called thyroid stimulating hormone or TSH, which stimulates the thyroid gland to step up production of thyroid hormones. The thyroid gland can't do this since it's missing one essential ingredient - iodine - but the pituitary gland does not know this. It keeps secreting TSH which after a time will cause the tissue of the thyroid gland to change and the entire gland will enlarge. Surprisingly, a toxic level of iodine will also cause an enlarged thyroid and hyperthyroidism due to a malfunction of the thyroid hormone producing system.
 
The symptoms of iodine deficiency in goats are kids which are born weak, with sparse hair coat, low resistance to stress and slow growth. Even a subclinical iodine deficiency results in small, weak kids with no obvious goiter. These symptoms do not describe the typical healthy, fast growing kid with milk goiter.
 
Mild enlarged thyroid glands in the goat it is not easy to detect because the swelling is located behind the larynx which would be mostly out of our sight, and slightly below. Milk goiter is quite obvious, appearing in front of, and on both sides of the throat over the larynx.
 
True iodine deficiency is rare in our supplemented goats, but soil in the Northeast US is low in iodine so it may occur in that area in goats that are not provided a supplement. If the dam has an adequate supply of iodine, her milk will contain enough to support her nursing kids. If the dam was deficient she would exhibit common symptoms of iodine deficiency such as abortion. The fetus cannot survive to birth without adequate levels of this mineral. In fact in third world countries where iodine deficiency is a problem, the most serious sign is natural abortion.
 
On the other hand, the fetal thyroid gland is very sensitive to iodine toxicity. Kids born to dams with high levels of iodine in their system are born with obvious thyroid enlargements.
 
What is milk goiter?
 A paper published in 1988 by Geoff Pritchard in the British Goat Veterinary Society Journal[1], describes the study of throat swellings in a herd of mainly Anglo-Nubians but included a few Toggenburgs and Saanens. Over several years most kids developed throat swellings in the area of the thyroid gland from the time they were about 7 to 10 days old which persisted until they were slaughtered at 6 to 9 months of age but usually began to reduce in size at about 4 months of age. In some cases the swellings were so severe as to cause discomfort, a change in vocalization and what was described as depression. The swellings started to regress almost spontaneously at about 4 months of age leaving behind a loose flap of skin.
 Assuming that this was an iodine deficiency, the owner's veterinarian prescribed potassium iodine administered by mouth but this did not result in a response. Analysis of feed showed an adequate amount of iodine. Blood and milk samples showed that rather than a deficiency the kids and dams had a slightly higher than normal level of iodine.

 One kid was sacrificed and a necropsy was performed to determine the cause of the swellings. Results showed that the throat swelling were due to "gross enlargement of the thymus, with most of the extra thoracic portion - weighing in excess of 200 grams - being located in the upper neck region." Histologically, the thymus tissue was normal. Two other kids were also post-mortemed and showed similar thymus enlargements. In one, a 4 month old kid which had some regression, the thymus weighed nearly 170 grams, and in another younger kid the thymus enlargement was located under the lower jaw area.
 
Goats of all ages from the entire herd were screened for diseases including CAE, enzootic bovine leucosis, border disease, infectious bovine rhinotracheitis, Toxoplasma gondii, and other bacteriology, virology, haematology, biochemistry and serology tests. The results of all were negative. The reason for the thymic enlargement at that time was unresolved.
 

What is the function of the thymus gland?
 
The thymus gland is located at the base of the neck, can extend to surround the heart, and in some goats a thin strand extends all the way up the neck enlarging in the area over the thyroid gland and can appear in the area under the lower jaw.
 
A type of immune cell which originates in the bone marrow is processed by the thymus gland. This immune cell, called a T-cell (thymus-dependent (T) lymphocyte), must be able to recognize the difference between a foreign invading cell and the body's own cells. These cells receive their training in the thymus gland by a process which is one of the great mysteries of science.
 
The thymus of the goat can be quite large in young animals reaching a peak in size at about 4 months of age, then begins to regress to a small size by 6 to 7 months of age. In castrated males the thymus enlargement can persist for some time longer.
 
It is known from studies of genetic diseases in which the thymus fails to develop or from surgical removal of the thymus gland in young children that the result will be permanent immuno-deficiency.
 


Do you want to cure milk goiter?
 
The thymus gland is very sensitive to stress and infection, quickly shrivelling in size if exposed. Stress produces adrenaline which is a natural steroid. Early in the 1900's injections of steroids were used to reduce the size of the thymus in children when an enlarged thymus gland was thought to be abnormal. There is some degree of burning when 7% iodine is applied to tender skin and along with catching and restraining kids all contribute to stress. This could explain why throat swellings can sometimes disappear after treatment with iodine. However, it is also possible that if iodine treatments are done around 4 months of age when the thymus normally begins to regress the treatments have nothing to do with the reduction of the throat swellings.
 
It should be noted that iodine can have toxic effects at high levels. It is easily absorbed through the skin especially if repeated over large areas of intact skin or to absorptive mucous membranes[2]. Iodine toxicity is more likely if the kid already had a normal iodine level.
 
Milk goiter is the very common, normal enlargement of the thymus gland which is part of the maturation of the immune system in nearly all juvenile mammals. Why the thymus gland is larger in some kids or children than others is not well understood. However, reducing the size at an early age could result a less efficient immune response for the life of the goat as has been shown to be the case in humans. Instead, welcome milk goiters with the understanding that the immune system is laying the foundation for your kids' healthy future.
 
References
1. Pritchard, G.C. (1988) Throat swellings in goats. Goat Vet. Soc. J., 10 (1), 34-7
2. Inchem.org

Wednesday, June 27, 2012
UK Cattle Slaughterings Fall
UK - UK prime cattle slaughterings were eight per cent lower than in May 2011 at 156,000 head, according to the latest UK slaughter statistics from Defra.
 

Beef and veal production was 69,000 tonnes, six per cent lower than in May 2011.

UK clean sheep slaughterings were five per cent higher than in May 2011 at 757,000 head.

Mutton and lamb production was 18,000 tonnes, six per cent higher than in May 2011.

UK clean pig slaughterings were six per cent higher than in May 2011 at 753,000 head.

Pig meat production was 62,000 tonnes, six per cent higher than in May 2011.

Report Calls for Integrated Pig Meat Supply Chain
27 June 2012


UK - The British pig industry should follow a more integrated route to achieve better returns for producers.
 
A new report from the University of Manchester Centre for Research on Socio-Cultural Change says the UK's pig supply chain is in long term crisis and to turn it around the industry needs to organise itself through vertical integration to ensure the participants take responsibility for the health of the chain.
 
The better way, which delivers on broader economic and social objectives, is represented by the integrated national models of the Danish and Dutch pig industry) or the directly owned processing operations of Morrisons supermarket chain, which competes on price in the mass market and uses a higher proportion of British meat than any of the other major supermarkets, the report says.
 
"The Morrisons model aligns the interests of firm, supply chain and society through directly owned processing plants which run at full capacity and proves the benefits of plant loading," says the report.
 
"Our accounting research shows that Morrisons increases margins and reduces costs.
 
"Society gains through reduced import dependence, stable employment and the capacity to address animal welfare and climate change."
 
The research team, based at the ESRC funded CRESC research centre at the University of Manchester, says that the size of the national pig herd has declined by around 50 per cent over the past decade, while the UK has gone from 80 per cent self-sufficiency in pig meat to less than 50 per cent self-sufficiency.

The report says that the situation in the pig industry is a snapshot of the general economic ills facing the UK and that the situation in the pig industry worsens the UK's trade deficit and diminishes UK employment.
 
"This is a classic example of UK failure in tradable goods against North European competitors. The UK's growing volume of pig meat imports does not come from Eastern Europe or Asia, but from Denmark and the Netherlands, which provide over 50 per cent of the UK's bacon and produce more cheaply despite wages in meat processing, which are nearly double those in the UK."
 
The report calls for Government policies to recognise that ownership can lever changes in business practice by creating incentives and structures for new kinds of chain thinking.

"First, vertical integration of supermarkets with processors should be encouraged by targeted tax breaks for retailers who increase their value added," the report says.
 
"Second, horizontal integration should be encouraged by support for the creation of producer co-operatives and marketing assistance for artisan producers.
 
"These radical policies should be backed by increased powers for the Grocery Code Adjudicator to enforce contracts that give food manufacturers the security they need to improve their productivity and lower costs; and also to ban many forms of supermarket promotion which harm supermarket suppliers and do not benefit consumers."
 
The report has been broadly welcomed by the British pig sector.
 
"The report contains a number of innovative approaches to unlocking an obstacle to achieving a sustainable domestic pig meat industry which has existed for nearly two decades," said a British Pig Executive spokesman.
 
"While some recommendations may present difficulties politically to achieve, producers would be keen to engage.

"BPEX is investigating the possibility of a voluntary supply chain charter with retailers and foodservice companies which are genuinely working to develop partnerships with suppliers.

"The charter might contain specific tangible attributes such including clear objectives and how risks and rewards in achieving that objective are shared."

Soybean Fundamentals Remain Strong
26 June 2012


US - US soybean market fundamentals have been strong for an extended period of time, says University of Illinois agricultural economist Darrel Good.

"The strong fundamental factors have included record large exports in 2009-10 and 2010-11 as Chinese demand expanded, a reduction in US soybean acreage in 2011, a relatively low US average yield in 2011, intentions to reduce US acreage again in 2012, and a very small soybean harvest in South America this year," Professor Good said. "These strong market fundamentals continue in the form of a rapid pace of consumption and concerns about the size of the 2012 US crop."

Good reported that soybean prices began moving higher in July 2010, starting from about $9.50. July 2012 soybean futures reached a high of about $14.70 in late August 2011, declined to a low near $11.25 in mid-December 2011, and reached a high of $15.12 in early May 2012.



Prices have been very choppy the past two months, but the July futures contract is now trading within about .30 cents of the early May high. November 2012 futures prices have been lower than July futures but have followed a similar pattern and are now trading at a contract high near $14.30.

"The pace of the domestic soybean crush started slowly this year," Professor Good said. "The National Oilseed Processors Association reported that its members crushed 7.7 per cent fewer soybeans in the first quarter of the 2011-12 marketing year than in the same quarter the previous year."

 Crush during the second quarter, however, was 2.3 per cent larger and crush during the third quarter was 7.2 per cent larger than in the respective quarters last year. Crush during the first three quarters of the year was 0.3 per cent larger than the crush last year. For the year, the USDA projects the crush to be 0.7 per cent larger than during the 2010-11 marketing year, he said.

"It now appears that the crush may exceed that projection for several reasons. First, crush was relatively small in the fourth quarter of the 2010-11 marketing year. Second, the pace of domestic soybean meal consumption has been expanding. Third, the small South American crop may support US soybean meal exports above the current projection. The crush may be about 10 million bushels larger than the current projection of 1.66 billion bushels," Professor Good said.

At the beginning of the marketing year, the USDA projected US exports at 1.415 billion bushels, said Professor Good. The projection was reduced as the year progressed and was at 1.275 billion bushels by January 2012.

"The forecast, however, increased beginning in April and now stands at 1.335 billion bushels," he said. "Total export sales already exceed that projection, which is common, and exports will need to average about 13 million bushels per week during the last 10 weeks of the year to reach the projection."



The current pace of exports is a little slower than the needed pace, but exports are still likely to reach the projected level. While the pace of exports has slowed in a typical seasonal pattern, sales for export during the 2012-13 marketing year are record large, underscoring the strength in Chinese demand.

"The USDA will update the projections of consumption and ending stocks for both marketing years on July 11. The estimate of June 1 stocks, to be released on June 29, will provide some confirmation about the pace of consumption and likely year-ending stocks," Professor Good said.

With prospects for relatively small year-ending soybean stocks, the focus is quickly turning to the prospective size of the 2012 US crop. An estimate of planted and harvested acreage will be available with the USDA's 29 June Acreage report.

"With the soybean price rally that occurred this spring, it would not be surprising if acreage exceeded intentions reported in March," Professor Good said. "While acreage estimates will influence production prospects, the major focus will be on yield prospects."

In the June WASDE report, the USDA projected a US average yield of 43.9 bushels and 2012-13 marketing year-ending stocks at what is generally considered to be a minimum level of 140 million bushels. Good said that the trend yield for 2012 is 43.4 bushels, 1.9 bushels above the 2011 average yield.

"Continuation of stressful weather in the central and eastern growing areas along with declining crop condition ratings suggest that the 2012 yield could be below trend again in 2012," Professor Good said. "A shortfall in production would require that consumption during the year ahead be reduced from the current USDA projection of 3.255 billion bushels. The recent price rally is in recognition of the rationing that may be required.

"Unless weather and crop conditions improve soon, which does not appear likely, additional price strength is expected," Professor Good said. "Talk of the 2008 futures price peak near $16.60 has surfaced. While prices at that level are not yet justified, they are within the range that we have projected for the 'new era' of prices that began in 2007."

China Farm Produce Prices Still Rising
27 June 2012


CHINA - Pork prices rebounded recently, up 0.7 per cent last week, after falling for several months, as the country's pork stockpiling policy helped boost market demand, Shen said at a regular briefing.

China started stockpiling frozen pork in April to help stabilize prices and stem losses by pig producers.
 
Due to booming demand, shrinking supplies and climbing production costs, prices of edible oil and aquatic products rose slightly last week. Retail prices of peanut oil increased 0.3 per cent week-on-week, while the wholesale prices of aquatic products gained 0.7 per cent.
 
Shen Danyang, spokesman for the Ministry of Commerce, said prices of garlic and eggs have begun falling. "The ministry has always attached great importance to the dramatic fluctuations of farm produce prices, and will try to solve the boom-bust problem in agriculture as soon as possible," he added.
 

Weekly Roberts Market Report
27 June 2012



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




LEAN HOGS on the CME finished down with the exception of the nearby July 2012 contract. JULY’12LH futures closed at $93.500/cwt; up $0.150/cwt but $1.950/cwt lower than last report. AUG’12LH futures finished $0.40/cwt lower at $88.750/cwt and $4.475/cwt lower than last Monday’s close. The DEC’12LH contract closed at $77.375/cwt; off $0.100/cwt and $1.050/cwt lower than last report. Fears over expanding supplies and higher grain prices had traders backing away from the latest six-week rally. Pit sources said early Tuesday that hog futures will now begin to steadily decline after the nearby contract gained 21 per cent from early May through last week. Supplies of pork in cold storage are the highest on record at the end of May, according to a USDA report issued last Friday. Meanwhile, the seasonal production trend is that live-hog supplies typically reach their lowest point of the year in June or July before expanding through mid-winter. Slaughter rates are at the tightest point of the year supporting prices. Cash-hog prices ranged from flat to $2/cwt lower on limited buying interest. Late Monday, June 25, USDA put the pork cutout value at $101.29/cwt; up $0.48 and 6.960/cwt over last report. Tight supplies and lighter live-weights due to the spring heat wave have forced processors to bid up prices for hogs. In some cases plants have decided to limit production rather than pay through the nose for hogs that don’t cover sales. Poor processing margins and uncertainty about demand for fresh pork ahead of July 4th may result in some additional cutbacks in processing schedules. According to HedgersEdge.com, the average packer margin was lowered $0.65/hd placed at a negative $8.60/head based on the average buy of $75.89/cwt vs. the breakeven of $72.72/cwt. The latest CME lean hog index was estimated at 102.01; up 0.59 and 6.76 higher than last Monday. USDA on Monday estimated the daily processing at 384,000 head vs. 391,000 head last Monday and 388,000 a year ago.
 


This table shows the maximum price a producer could pay for feeder cattle and still break even, assuming the costs and conversion/performance factors listed above. Producers should remain aware that calculations are based on averages. Courtesy DTN.
 
CORN futures on the Chicago Board of Trade (CBOT) closed up the limit on Monday. Daily trading limits on Tuesday expand to 60.0¢/bu. The JULY’12 contract closed at $6.310/bu; up 40.0¢/bu and 31.75¢/bu over last report. The DEC’12 contract closed at $5.940/bu; up 40.0¢/bu and 60.0¢/bu over last Monday’s close. Corn prices skyrocketed up the limit as summer heat baked Midwestern crops. Traveling through Eastern Kentucky, Southern Illinois, and Missouri recently corn crops looked very thirsty and were penciling as early as 10:00 a.m. Little-to-no-rain is in the forecast however the hurricane will help Southern Georgia crops. This hot weather is hitting during the key pollination phase. The market will remain extremely sensitive to weather over the next couple of weeks. Late Monday USDA downgraded the corn crop in good-to-excellent condition to 56 per cent from 63 per cent. Corn basis weakened. Lingering concerns over Europe’s debt crisis also were supportive. Exports were helpful as USDA put corn-inspected-for-export through June 21 at 27.012 mb vs. estimates for 20-25 mb. Thirty-five mb were needed this week to stay on pace with USDA’s demand projections of 1.65 bb. See chart:
 


The national average basis for corn was down 4.0 ¢/bu to 47.0¢/bu over December 2012 futures. Subscribers to certain DTN services are able to map basis and prices for crop commodities. Below is a screen shot of that technology. While not promoting the website I find it very useful in locating pricing information by locality and distance from any given location using the mapping and circumference tools. As of last night using my location in North Carolina cash corn prices were $6.81/bu in Statesville, NC (basis 87.0¢/bu); $6.31/bu in Goldsboro, NC (basis 37.0¢/bu); and $6.51 in Petersburg, VA (basis 57.0¢/bu). This would be good information for producers, merchandisers, and corn users alike.
 


SOYBEAN futures on the Chicago Board of Trade (CBOT) closed sharply higher on Monday. The JULY’12 contract closed at $14.824/bu; up 40.0¢/bu and $1.00/bu over last Monday. NOV’12 futures closed at $14.254/bu; up 50.0¢/bu and 86.25¢/bu over last report. The same weather premium and global economic forces are supporting soybeans that are supporting corn. Weather forecasts indicate little relief in sight. The key to soybeans, much like corn, remains concern over damage being done to the crop at a time when crop production has little margin for error. Soybean crops are in a critical stage of blooming. USDA put the US soybean crop blooming stage at 12 per cent vs. 5 per cent last week and the 4 per cent five year average. Additionally, the soybean crop in good-to-excellent condition was lowered 3 per cent from last week to 53 per cent. Unlike corn, though, there is little USDA is going to be able to do in regards to number "adjustments" to keep domestic supplies from tightening to alarming levels if the weather doesn't change. Dry weather conditions in South America have the market concerned that the South American soybean crop will be reduced increasing prospects for US exports. Exports were bearish with USDA putting soybeans-inspected-for-export at 9.182 mb vs. estimates of 10-15 mb. This is below the 13.1 mb needed to stay on track with USDA export demand projections. See chart:
 


While the national average basis for soybeans was down 1¢/bu at 42¢/bu under November 2012 futures basis in the Southeast was stronger. See DTN source screenshot below.
 


Should producers sell on the rally or wait for prices to rise further? What happens if the weather changes and the US crop comes in? The soybean market could go south in a hurry. The challenge for pricing soybeans at this time are similar for the producer and the user but in a mirror image sort of way. The producer wants to hold onto the crop as long as possible in order to get the best price. The user wants to price at the lowest point possible. At the same time neither wants to give up gains in profit margins. If the market does decline quickly don’t be the guy that waited too long to price soybeans.
 
The best thing for a producer (user) to do might be to sell (buy) on a scale-up (scale-down) basis when the market is rallying (declining). That is, pick a price point and time period that yields a profit you can live with and sell (buy) a portion of the crop (input) at that point. Then pick another point and let go (buy) a little more and so on. Realizing you probably won’t hit the high (low) of the year your trades have a greater change of being profitable. This goes for a declining market. Don’t be the one who waits for the rebound that may never come. Pick a point that leaves you a profit and sell (buy) a portion, then another, and then another. The strategy of making a profit at each price point will … guess what? … result in an ultimate profit all around. No you may not hit a “home-run” but you will make a profit. In volatile markets paying attention to selling (buying) at profit-margin points will always keep you in business even though you may be disappointed in not achieving the highest (lowest) selling (buying) price. One thing to remember is that the producer (user) should know the cost of production at all times.
 
Most merchandisers have various programs to help producers and users in this effort. Be sure you understand what you’re getting into though. A good rule of thumb is, “If you don’t fully understand it, don’t do it until you do.” Ask questions, it is your money.
 
WHEAT futures in Chicago (CBOT) closed up on Monday. JULY’12 wheat futures finished at $7.242/bu; up 51.0¢/bu and 94.0¢/bu over last report. The JULY’13 contract closed at $7.764/bu; up 46.75¢/bu and 72.75¢/bu over this time last week. The potential for a smaller corn harvest is supportive on expectations that demand will pick for wheat used for livestock feed. Exports were neutral with USDA putting wheat-inspected-for-export at 19.484 mb vs. estimates for 18-24 mb. Wheat prices were also supported on falling expectations for wheat production in important areas like the Black Sea region and Australia. USDA put the US winter wheat crop harvest at 59 per cent this past week vs. 48 per cent the week before and the five-year average of 27 per cent. The national average basis for HRW wheat was unchanged at 37¢/bu under the July futures contract.
 

May Pork Exports Up in Volume and Value
27 June 2012


BRAZIL - The volume of pork exported in May rose compared to April, and the US$-value was also up.

According to the latest figures from ABIPECS, Brazil exported 53,404 tons of pork in May, up by a whopping 18.7 per cent compared to the previous year. The total amount of pork exported in 2012 is 224,870 tons, compared to 214,100 tons in 2011, and this was up by 5.03 per cent.
 
The value of export sales in May was US $138.3 million, up by as much as 9.27 per cent compared to May 2011. The total value of exports in 2012 till May is US $578.9 compared to US $583.1 in 2011.
 

Cattle

Prices and Supply

Prime cattle prices edged backwards during May to close the month at 352p/kg dwt, having posted a record high of 355p/kg dwt at the end of April. Though deadweight prices are now trading approximately 12.5% higher year-on-year, they are only slightly higher than six months ago. Prices have shown a similar trend in the auction ring. The recent weakening in prices indicates that abattoirs have been been able to source sufficient volumes of cattle to meet their requirements. Cull stock values have also come off their recent highs with beef cows trading at 143p/kg lwt at the end of May, down from 148p/kg lwt at the end of March. Nevertheless, beef cows are still up 11% on the level at which they opened 2012.

DEFRA data for slaughterings at UK abattoirs shows that throughputs continued to slide in April compared with last year as 5% fewer prime cattle were slaughtered. In the first third of the year slaughterings were down 8% on the year. Throughputs fell during April to a lesser extent than in previous months as the number of steers killed fell by 2%, compared with a 6% shortfall in the January to March period. So far this year 8% fewer heifers have been slaughtered, implying that producers have increased retentions for breeding. Young bull volumes fell 17% year-on-year over the four-month period.
 
In Scotland, the supply of prime cattle to abattoirs has been even tighter, down 10% year-on-year over the first four months. Similar to the situation in the rest of the UK, the decline in heifer slaughterings has been greater than that for steers, while the young bull kill has fallen sharply; high feed costs have reduced the profitability of young bull systems. However, the culling of mature stock at UK abattoirs picked up during April. After running 9% behind year-earlier levels in the first quarter (Q1), monthly volumes moved 3% ahead of last year in April. North of the border, a 5% increase in the culling of mature stock during April was enough to move volumes 1% above year earlier levels for the first third of 2012. At the UK level, they remain 6% lower. Irish abattoirs continued to kill fewer cattle than last year during May. Weekly data for the first four months of the year indicate that slaughterings have been approximately 20% lower. However, supplies should begin to ease late in the year as the Irish December census revealed a significant increase in the number of cattle under one year old on Irish farms. A major contributing factor has been a collapse in live calf exports. So with prices falling in the UK despite tight supplies, this points to a fall in demand at the retail level. Indeed the latest data available from market research firm, Kantar, indicates that beef consumption declined by 5.5% year-on-year in the period between mid-January and mid-April. However, consumers actually spent more money on beef, meaning that it was the higher prices that reduced purchased volumes. This is unsurprising given the current squeeze on living standards, in which prices across the economy have been rising faster than wages.
 
Average prices paid for cattle across the EU have been relatively stable during May. While young bulls and heifers have eased slightly, steers and cows have become a fraction more expensive. Irish prices rose 1% during the month and are up by around 12% on the year, slightly above average for the EU. Exchange rate movements have resulted in UK cattle prices being 20% higher than last May when quoted in Euros (well above the 12.5% gain in Sterling terms).
 
Lower domestic production volumes have had a knock-on impact on beef exports. In the first quarter of 2012 they totalled 28,600t, 17% down on the same period last year. Deliveries to all major UK customers declined, except for Ireland, the second largest export market. Ireland purchased 15% more beef to cover its tightly supplied market.
 
The reduction in UK production also led to increased beef imports. Shipments rose 6.5% on the year to 57,400t. There was also a shift in the composition of imports with frozen beef taking an increased share. This can be explained by the 10% reduction in slaughterings of mature animals during Q1 leading to an increased requirement for manufacturing beef, of which Ireland is the principal supplier.
 
News Round Up
 
The EU’s autonomous High Quality Beef import quota (not the Hilton quota) has been changed to a first-come-first-served basis, having previously been allocated through import licences. The previous system worked by allocating each country with a proportion of the quota, and then the exporting country would determine which firms could export, usually based on past trade flows. However, this process had the unintended consequence of leading to an oversubscription of licences as firms with no intention of exporting high quality beef could profit by taking a license and then selling it on to an exporting firm. Nevertheless, the new system has generated a new issue of uncertainty. Once the beef reaches Europe it will count towards the quota, but if the quota has already been filled when the shipment arrives in the EU, then either the full tariff will have to be paid, or the beef will have to be returned to its country of origin. The problem lies in the fact that the exporter cannot know if the quota has been filled when the beef is sent, or if the quota will be filled by the time the beef arrives in the EU. This could pose more of a problem for Australia and New Zealand since their shipping times will be considerably longer than those of the American nations. However, the quota requires full cattle traceability and this gives the Australians an advantage over the US as they already have a form of EID whereas the US does not. Therefore, firms in the US wishing to export will have to invest in a new production unit with full traceability that will not deliver a return for eighteen months, and even when it does, there will be some uncertainty due to the first-come-first-served nature of the quota.

 The EU has changed the amount of subsidy paid to EU beef exporters for product shipped to third countries. Export refunds have been cut to €163/t (approximately £130/t) from €224/t for beef carcases. The reasons given have been that prices have risen significantly and also that a tightly supplied EU beef market requires more product to remain in the EU.

 In Brazil a structural change in beef production towards feedlots is expected to continue this year. The number of cattle on feedlots is forecast at 3.87m head, up 15% year-on-year. The rise in feedlot production has offset a historical fluctuation in production volumes which tend to slow from May to September as dry weather reduces the weight gains of grass-fed cattle. The shift towards feedlots now means that Brazilian abattoirs have a more stable source of supply throughout the year and as a consequence prices now show less seasonal trend. As meat processors benefit from the increased certainty offered by stable supplies, they have encouraged growth in feedlot production by setting up their own operations and agreeing partnerships with producers. However, the combination of lower farmgate prices and rising feed costs are set to tighten feedlot margins in 2012.

 Tight cattle supplies and government policy continued to restrict Argentina’s beef exports in the opening third of 2012. Exports of the high-end Hilton cuts fell by 25% year-on-year while total fresh and frozen beef shipments were down 15%. Exporters were shielded to some extent, however, as market conditions pushed up the average value of the Hilton cuts by 8.5% to £9,900/t and fresh and frozen beef by 2.5% to £4,400/t. Germany continued to take more than half of the Hilton cuts while Israel, Russia and Chile maintained their positions as Argentina’s largest customers for fresh and frozen beef. Chile jumped from third to first as its imports from Argentina increased by 45%. Israel bought 20% less, meaning it fell to third place from first, but despite purchasing 7.5% less Russia remained the second largest buyer.

 By contrast, Uruguay managed to increase its beef exports over the same period. It shipped 83,100t to other countries between January and April, compared with 75,900t a year earlier. This was an increase of 9.5%. Higher exports have come despite a 5% decline in cattle slaughterings, thereby suggesting significantly lower domestic demand. Meanwhile, Uruguay’s national football team will promote the country’s offering of beef for the next eighteen months, after agreeing a deal with Uruguay’s meat promotion agency. Uruguay will compete at the London Olympics and is currently ranked third in the world.

 Another country that has seen its beef exports expand in 2012 has been Australia. Shipments rose by 1% to 368,000t in the first five months of the year. Growth has been aided by strong demand from the US, particularly for manufacturing beef, and deliveries are up nearly 60% at just over 100,000t. A recent weakening of the Australian Dollar against the US Dollar has increased the competitiveness of Australian beef and suggests that this growth could be sustained going forward. Of the smaller markets, Russia, Taiwan and Singapore also bought more than in the same period of 2011. However, this was partially offset by a decline in beef exports to Australia’s largest market, Japan. Exports fell 11% to 120,500t. Another significant buyer, Korea, purchased 41,000t, one-third less in the five month period than a year ago. Lower exports to Korea have been attributed to the recovery in domestic production after the FMD outbreak of eighteen months ago, plus a slowdown in beef

News Round Up

 Compared with the same period of last year, the EU achieved export growth of 14% in fresh and frozen pigmeat during Q1 2012. Total shipments rose by 45,000t to 367,250t. Growth was helped by greater deliveries to Russia, the EU’s principal customer, which increased by 12.5% to 83,000t, while the EU more than doubled its exports to China. Strong growth into the Chinese market meant that deliveries took a 9.5% share of total EU exports, compared with less than 3% in Q1 2011. By contrast, shipments to Korea declined by 11.5% to 43,500t as its domestic production continues to recover from the FMD outbreak at the start of 2011. At 28,000t, Hong Kong bought marginally less pork than a year earlier.

 French exports of pigmeat fell by 2% year-on-year in Q1 2012 to 115,300t. However, sales revenues increased as the average price rose by 9%. The decline in volumes exported was driven by lower shipments to Russia and Asia as other EU Member States bought the same volume of French pigmeat on aggregate as they had in Q1 2011. In the EU, strong growth in deliveries to Germany and Belgium were offset by a decline in sales to Italy, Greece and Spain. France imported more pigmeat than a year earlier during Q1. Spain is France’s largest supplier and it increased its deliveries by 10% to 68,400t, maintaining a 75% share of the market. The change in French pigmeat trade volumes reflects lower production volumes coupled with increased domestic demand. A 3% lower output of pigmeat in Q1 and a 1% increase in consumption limited the volumes of pigmeat that could be exported, and meant that more product had to be bought from fellow EU Member States.

 In Sweden, pig production fell sharply in Q1 2012. Slaughterings were down 10% on the year at 683,000 head, well below the level anticipated by the EU Commission. Production volumes have been restricted this year by significant herd liquidations during 2011 as producers left the industry due to the struggle to compete with cheaper imports from countries such as Denmark and the Netherlands. The Swedish pig sector’s competitiveness has also suffered from the strong performance of the national economy as this has strengthened its currency against the Euro. However, the EU-wide sow stall ban at the beginning of 2013 may provide some support to the competitiveness of the Swedish pig sector, as its welfare regulations are currently more stringent than in many other Member States.

 A sign of the rebalancing of the EU pig sector ahead of the sow stall ban has come from the Czech Republic. According to its agriculture ministry, the Czech Republic is now 94% compliant with the future regulations and most farmers not willing to invest in new housing have already left the industry. Census data showed that the Czech pig herd contracted by 10% in the year to April 1 2012 and its sow herd declined by 11%. A smaller pig population meant that pigmeat production fell in Q1 with volumes down 9% to 60,000t, and tighter supplies pushed producer prices up by 20% year-on-

Adapting to a Changing Climate
22 June 2012



UK - Most scientists agree the UK environment of the future will be different from today - temperature and rainfall (both occurrence and intensity), as well as levels of carbon dioxide and ozone in the atmosphere, will change over the coming years and decades.
 
So while day-length duration will remain constant, we have to anticipate entirely new combinations of conditions. These will not have previously been experienced anywhere in the world by the crops on which we and our farm animals depend. If the levels of food production we'll require in the future are to be secured, steps to adapt to these changes need to be taken now.
 
That's the clear assessment from experts at the Agriculture and Horticulture Development Board (AHDB) in response to the government's recently proposed National Adaptation Programme on climate change, focused on the next 20 years. The response also confirms AHDB's commitment to give farmers and growers practical support on adaptation.

In welcoming the chance to join the Defra-led consultation, the levy board identifies water availability and management as the most immediate concern for UK agriculture in adapting to climate change, since it impacts on arable crops, horticulture and livestock production. Investment will be needed in new infrastructure for water capture and storage, as well as research to discover new ways of increasing water use efficiency in agricultural production systems.
 
Chief Scientist at AHDB, Professor Ian Crute, said: "We're going to need to start developing crop and livestock types and production systems that are well adapted and resilient to the changing combinations of environmental conditions we experience in the future.
 
"Increased and well-targeted investment in the application of crop and livestock genomics is going to be absolutely essential. Soils and the semi-natural ecosystems that impact on agricultural production are also going to be affected by climate change and we need to better understand what these impacts will be and adapt accordingly," he added.
 
"Farmers and growers continuously adapt and innovate in response to change but, certainly, effective new knowledge acquisition and exchange will be essential if the agriculture industry is to adapt to changes in our climate at the appropriate pace. AHDB is committed to helping farmers and growers to adopt practical adaptation measures, making sure that industry advice is consistent and always based on sound evidence.
 
"Our own applied research, such as the evaluation of new crop varieties, will continue and evolve over time to meet these challenges.
 
"I can also see that changes to the way agriculture operates in adapting to new weather conditions will require careful communication with the public, to explain why we need to build more on-farm reservoirs, for example.
 
The AHDB view of adapting to climate change also focuses on soil quality and on new potential challenges to crop and animal health.
 
Insect pests and insect-transmitted plant and animal diseases are a concern. As AHDB sees it, effective surveillance and pre-emptive research will be needed to reduce the risk of exotic diseases and pest outbreaks.
 
With the vital need to up the pace on restoring levels of organic matter content in soils, more thought will need to be given to how such restoration and maintenance will be affected by changes in agricultural practices or temperature-induced increases in the rate of breakdown of organic matter.

British Pig Meat Goes to China
22 June 2012

 

UK - The first shipment of British pig meat ihas been sent to mainland China from a cold store in the UK.
 
The market that is the largest in the world for pork was opened up following years of negotiations.
 
The shipment was loaded up on Tuesday and went from the Tulip cold store at Brierley Hill in teh West Midlands.
 
Sales and export manager Martin Sauer said: "This is an important step not only for Tulip but also for the British pig industry.
 
"The Chinese market is huge -the biggest in the world - and there will be scope to expand it in years to come."
 
BPEX chairman Stewart Houston, who was involved in the negotiations to open the market, said: "It is very important to us. It is a market that could easily be worth £50 million a year in the not too far distant future."

News


US Chilled Pork Gets Celebrity Treatment in South Korea
21 June 2012

 

SOUTH KOREA - The popularity of celebrity chefs and TV cooking programs isn’t unique to the United States. South Korean consumers are glued to their televisions to watch their favorite cooking gurus and learn the latest in trendy cooking techniques and recipes

To capitalize on the growing craze, USMEF is partnering with celebrity chef Shin Hyo Seob, a judge on the popular Chef King television program, to promote US chilled pork and encourage year-round consumption.
 
Frozen pork in Korea is typically considered a lower-quality product, so USMEF is working with chef Shin as part of a multiphase campaign to raise the awareness of chilled high-quality US pork, using chef Shin and other Korean meat industry professionals as spokespersons. Funding for components of the campaign is provided by the USDA Market Access Program, the Pork Checkoff and the Illinois Soybean Association.
 


Ads highlighting the delicious flavor of US pork are displayed in five subway stations in Seoul

 

Trucks deliver a constant reminder of the quality of American pork on the streets of Seoul

Chef Shin is the model in an ad campaign running through the balance of 2012 that shows four different US chilled pork cuts – belly, collar butt, skirt meat and jowls – with comments from chef Shin saying he enjoys using US pork for his dishes because it is chilled and it makes every dish he prepares better.
 
The ads, which highlight the delicious flavor of US pork, are displayed in five subway stations in Seoul. The Seoul subway serves more than seven million commuters daily.
 
“Currently, among major Korean retailers, only Top Mart and Costco are selling US pork all year round while Lotte Mart, Homeplus and E-Mart sell it on a spot basis,” said Jihae Yang, USMEF-Korea director. “Our goal is both to raise awareness of American pork and to associate it with leading chefs who choose only the best products for their dishes.”
 
In a trade magazine ad running this summer and fall targeted toward restaurant developers, USMEF is spotlighting restaurants that are successfully featuring US pork on their menus. Owners or managers of those establishments are quoted in the ads explaining why they choose US pork.
 
Chef Shin also loaned his voice to a series of radio ads running throughout the summer – the peak pork consumption period in Korea – on why consumers should choose US pork for their dishes.
 
Yet another element of the campaign is a service that USMEF is offering to meat distribution companies. USMEF is providing a free professional and highly decorative truck wrapping for participating companies with images that depict chilled US pork and highlight the fact that US pork is the No. 1 imported pork in Korea.
 
“So far we have 24 trucks wrapped with the USMEF pork messaging and another seven with pork on one side and beef on the other,” said Mr Yang. “By the end of the year our goal is to have 50 trucks driving every day through the streets of Seoul, delivering a constant reminder of the quality of American pork.”
 
The Korean pork industry was severely damaged last year by foot-and-mouth disease as it was forced to cull more than 3 million hogs – more than a third of the domestic herd. However, the industry is rapidly rebounding, posing challenges for all imported pork. At the same time, US pork continues to be the leading imported pork, holding a 32 per cent share when measured by volume and 30.6 per cent by value.
 
Through the first four months of 2012, US pork exports to Korea are down in both volume and value, but the country remains the No. 5 market for American pork exports, buying 67,061 metric tons (147.8 million pounds) of product valued at $192.7 million.
 
Since market conditions in Korea have changed significantly since last year, it is difficult to compare 2011 to 2012. It is worth noting that US pork export volume to Korea for January through April of this year remains 38 per cent above 2008 levels, which was the next-highest year on record, and export value has more than doubled. In addition, the Korea-US Free Trade Agreement just took effect in mid-March, so the US pork industry should begin to see benefits of that agreement in the months and years ahead.