This has been a very interesting past 2 weeks for Mustang Sally Farm.We have now reached the point in our operations that allows us to retail locally our own goat meat products through meat retail and Lynn"s & Edi"s Diner.Big Bucks goat  meat products is part of our marketing/trade mark package for our goat products.Meat goat producers must find reliable sound markets for the goats they produce as one would be hard pressed to make monies on raising meat goats sold at the farmgate going prices.

Past research and data collection on best breed for meat selection showed us the F2 boer,75 % showed the best promise for meat goats.Due to the different breeds we house we want a larger cross section for data collection on breeds,age,sex,under the same management practices.

First goats going to the slaughter rails will be out of our anglo lines.Example given from one goat out of the anglo breed, a 2 year old male,F2,75% intact male,uncut and never used for breeding showed a hot carcass weight with blood drained,head off and hide off and stomach removed, weighed in at 25.8kg.Not good as this is a 2 year old, concentrate fed under sound management practices.Our anglos are typed meat over dairy but the Anglo still lacks the muscular frames off the boer breed.We will collect data on different anglo percentages,age and sex then move into the bo-ang line then into our terminal triple crosses out of our boer lines.Our earlier data and research on the terminal F2 boers looks much more promising over the other breeds we house but the Anglo should not be ruled out as a meat breed or other crosses due to the fact people seem to enjoy the taste and flavor of the meat.Should you produce a quality product them customers will support your venture but people might lean more towards the boers.

The marketing slogan now used by Mustang Sally Farm,Big Bucks Goat Meat Products From Our Farmgate to Your Dinner Plate:

The key will come down to having total control through the food chain and allowing the producer more of the monies in his/her pockets not to another middleman.

Concentrate feeding has yet to be replaced by forages alone and this part of your operation will cost dearly.Some might believe its hard to make monies from raising meat goats but there is lots of room for expansion for all but in the beginning one has to understand it will cost you more than you first budgeted for and might take twice as long to get your venture launched and if one had outside income,this really helps to get your meat goat venture going and monies returning back to you the producer.

Meat goats may not have the star appeal that dairy goats in country hold but meat goats are another part of the total goat farming package and should be given serious consideration.

Mustang Sally Farm
From our farmgate to your dinner plate:
all rights reserved  2012

Vast Changes Made to Australian Live Exports 12 Months On
ANALYSIS - Twelve months on since the government brought the live export industry to a halt, Charlotte Johnston,editor looks at how things have changed and what impacts the suspension of live exports had on the Australian cattle industry.
 


Twelve months ago the Australian government imposed a live export ban on cattle to Indonesia.

In early 2011, undercover footage of Indonesian slaughter houses caused a public outcry. The government suspended live exports to Indonesia at the end of May 2011, and in early June suspended all live exports after pressure was applied from the public and animal welfare groups.

Although live cattle exports resumed to Indonesia in July 2011, the first shipment didn't leave until 11 August 2011.

Twelve months later things have drastically changed. There is a new operating environment under which cattle are exported, Indonesia has imposed quotas on imports in a bid to increase self-sufficiency and the Australian industry is still feeling the impacts of the live export suspension.

New Operating Rules
Following on from an independent review of Australia's Livestock Export Trade conducted by Mr Bill Farmer AO and recommendations from the Industry Government Working Group (IGWG) Reports, the government announced that Australia livestock exporters must establish an exporter supply chain assurance system (ESCAS) to ensure compliance with the requirements of the new regulatory framework for livestock exported for slaughter purposes.

There are two key independent audit report documents that a licensed exporter is required to submit to the department as part of the ESCAS requirements.

The independent initial audit report (IIAR) is an evaluation provided by an independent auditor of whether the exporter's ESCAS complies with the regulatory requirements. The IIAR must be submitted as part of the exporter's application to export livestock and is part of the information that is considered by the department when determining whether or not to grant approval to export.


The independent performance audit report (IPAR) is an evaluation provided by an independent auditor of the performance of the exporter's ESCAS after animals have entered the supply chain. The outcomes of the independent performance audits are considered by the department when making decisions on future applications to export livestock by the exporter.
Addressing non-compliance

Recently, an Australian government investigation into footage of animal cruelty in four Indonesia abattoirs concluded that two of the abattoirs were part of an approved ESCAS for two exporters. The two abattoirs were guilty of not fully complying with the ESCAS rules, although not on animal cruelty grounds.

The investigation recommended that regulatory action be taken against the two exporters.

Appropriate actions were taken immediately by both companies involved.

CEO of the Australian Livestock Exporters’ Council, Alison Penfold said: "The industry remains committed to ESCAS and the wellbeing of the animals as they pass through the supply chain. While any instances of non-compliance are regrettable, what this DAFF report highlights is how just quickly industry responds to isolate and fix problems when they arise in order deliver the required standards of animal welfare.”

She also said that the new export arrangements have helped transform the way Australian animals are managed through the export supply chain. Standards have been raised and the welfare processes and practices that sit behind the new regulatory system, ESCAS, continue to improve.

The industry's response to this report of breaches has been positive, with it being acknowledged that the new system is working and issues are being addressed.

In May 2012, the Australian government released the first independent performance audit report summaries for livestock exports to Indonesia. They will now be released on a monthly basis for the public to view.

Indonesia Restricting Imports
Last year, in a bid to increase their self-sufficiency, the Indonesian Ministry of Agriculture agreed to pull back on Australia's 2012 import permits from 500,000 head a year to just 280,000 head.

This restriction on quotas has forced Northern producers to look for alternative, and generally less profitable, domestic and export markets for their cattle, despite the Australian government assuring the industry that it is negotiating with Indonesia to lift its quota.

Rabobank general manager Food & Agribusiness Research and Advisory Luke Chandler says Indonesia's strongly-growing economy and increasing consumption of beef suggests self-sufficiency goals may be difficult to achieve and there is likely to be an ongoing need for live imports to complement the country's domestic production.

"This may provide an opportunity for live cattle quotas to recover over time and the northern Australian cattle industry is well positioned to capture additional demand and supply low-cost disease-free beef to the Indonesian market. There appears a mutual benefit in the trade in both countries," he says.

Meat and Livestock Australia predicts that live cattle exports will fall by 31 per cent to Indonesia in 2012, and be almost 500,000 head less than the record year in 2009.

At the moment there appears to be no clear alternative market for the surplus cattle.

Mr Chandler says the development of a northern Australian processing facility is one option that is being explored to diversify demand and complement the live trade by providing an alternative local domestic market for the northern pastoral zone.

A study carried out in Queensland looks at the viability of a northern outback Queensland meat processing facility. The report concluded that an abattoir would reduce live transport, minimise animal welfare and improve the outlook for regional graziers.

Impacts of Live Export Suspension
Western Australian Farmers Federation President Jeff Murray said that suspending the live export trade was a blow from which many Northern producers may never fully recover.

“The annual income lost through this period will never be retrieved. The losses felt by producers and small businesses are irreversible.”

Mr Chandler says the northern cattle industry has been dealing with a period of immense change and uncertainty since the suspension.

“The impacts of the live export suspension, were not just felt by cattle producers but cut off the life blood for mustering contractors, helicopter pilots and countless small businesses that are dependent on the trade,” concluded Mr Murray.


Charlotte Johnston, Editor

New Report Identifies Multi-Million-Pound Boost for UK Meat Industry
12 June 2012



 
UK - Potential benefits to the country’s meat industry to the tune of around £40 million per annum have been identified in a new report for the Royal Agricultural College by Stewart Houston, reports senior editor, Jackie Linden.

The report, A Creative Study Into the Scope for Increasing Value from Fallen Livestock and Animal By-products was presented by Stewart Houston, CBE FRAgs, at the House of Lords in London today, 12 June.
 
Board member of the Agricultural and Horticultural Development Board (AHDB) and Chairman of the British Pig Executive (BPEX), Mr Houston prepared his report for the Royal Agricultural College (RAC) 100 Club. His study was sponsored by PIC and the National Fallen Stock CIC (NFSCo).
 


Stewart Houston
 
He explained that, as the Earth’s natural resources are limited and the demand for food grows, all industries – among them, the UK meat sector – need to seek better and more efficient ways of producing goods and services. It was with this in mind that NFSCo proposed the study, which was dedicated to increasing value from fallen stock and animal by-products.
 
Taking the broad approach, Mr Houston looked within and across livestock production sectors – poultry, pig, beef, sheep and equine – and included fallen stock collectors, renderers and by-product manufacturers. Among his key findings is that, to extract value from fallen stock and animal by-products, it is important to consider the whole chain from the farm, through collection, processing and into product quality and design. Poor management in one stage of the process can impact the success of the whole chain, he said.
 
While animal by-product waste from abattoirs historically incurred a disposal cost, some of the same waste material now attracts a payment from processors, such as petfood manufacturers, seeking high-quality ingredients for their own products.
 
Mr Houston also highlighted the potential for the use of good quality animal by-product in new and emerging markets, such as renewable energy and aquaculture feeds.
 
In coming to his total annual potential value of these by-products of £40 million to the UK meat industry, he estimated that livestock producers could realistically reduce costs of fallen stock disposal by as much as 25 per cent (or £10 million across all sectors) by taking further steps to reduce mortalities, as well as to boost the value from unavoidable fallen stock and animal by-products by up to a further £20 million. Mr Houston’s report identifies areas for further research and knowledge transfer to reach the total figure.
 
Furthermore, these improvements would be accompanied by a number of environmental and social benefits, he said.
 
Acknowledging the teamwork that has been the cornerstone of this study, Mr Houston thanked particularly Ian Campbell (Director of NFSCo), Stephen Woodgate (Director of FABRA), Bob Bansback (Professor at Harper Adams University College) and independent consultant, Duncan Prior.
 
Finally, he made a series of recommendations for action, whilst warning that progress may be slowed by the need for changes in legislation and gaining consumer confidence over certain aspects, which include the possible return of processed animal protein (PAP) to the feed of farm livestock in the European Union.
 
Summarising his report – the first comprehensive study into raising the value of fallen livestock and animal by-products in the UK – Mr Houston wrote: “There appears to be a real opportunity for moving things forward and making progress in a number of areas.”

 Jackie Linden, Senior Editor

Pork Commentary: Cash Lean Hog Breaks $1.00!!
19 June 2012


Jim Long is President &
CEO of Genesus Genetics.

US - Last Friday US Iowa – Southern Minnesota lean hogs broke the magical $1.00 lean per pound price averaging $100.09 with highs to $1.03 per pound, writes Jim Long.

A huge surge in cash price of over $30.00 per head in two weeks, we predicted $1.00 would be reached this summer several months ago. We are happy. Producers need the positive cash flow that $1.00 lean hogs bring.
 
The naysayer chicken little ag economists who just a few weeks ago were predicting that lean hogs would barely crawl into the high 80s or low 90s a pound this summer missed the mark.
 
Why is it $1.00 lean?
 •Last week the US marketed 1.957 million hogs the seasonal low and 20,000 less than the same week a year ago. Fewer hogs always lead to stronger prices.
 

•US packers are financially strong, pressure to maintain market share, fill export orders, and have pork product for processing. Throw on top of this they don’t like each other. You and up with packers chasing hogs and doing it all for negative margins.
 

•The latest US Pork Export Data shows that April was up four percent in value over last year. Global pork demand is still strong, when weekly marketing of hogs drop below 400.000 head as they have from annual highs the only way you can ration pork supply is higher prices.
 

•Global hog markets remain strong with Spain the world’s fourth largest hog producer hitting price levels of an 8 year high; China hog prices 40 per cent higher than the US, and Russia hogs almost double US prices. High prices are a reflection of supply and demand. An indication of China demand is last week’s seizure of 1,800 metric tons of frozen meat by Chinese authorities as it way trying to be smuggled into Shenzhen China. Smugglers of pork – who would of thought? You don’t try to smuggle unless there’s a real reward and demand. Next will we have pork cartels?
 

•US hog supply could be being tempered by the PRRS breaks this winter. If PRRS was as significant as we and others believe the time is right for supply to be cut. Going forward if the antidotal stories we are hearing are correct that the PRRS vaccine from MJ Bio Logics is working as well as the reports, PRRS breaks going forward might not be as bad – time will tell!
 

•Hog to corn ratio has been under 15 to 1 for months and months. We don’t believe a ratio below 15 to 1 has ever lead to expansion. How could we expect significantly more hogs then? High feed prices are limiting global pork expansion.
 

•Competing US meat supply is down. Less US chicken – less US beef cuts total protein availability. Cut hog supply as we have the last couple of weeks and we have a rocketing hog price.
 
Summary
 
Surging lean hog prices to $1.00 lean. Less US hogs less chicken and less beef. Strong pork exports. Packers chasing hogs leading to hog producer cash flow getting a real boost. Producers need the upside.
 



Author: Jim Long, President & CEO, Genesus Genetics

Good Week for Green Agriculture and Welfare
20 June 2012


EU - The EU agriculture Ministers have decided to work for better animal welfare in the future and have endorsed both a proposal for the combating antimicrobial resistance and the progress report on the reform of the Common Agricultural Policy .

 “This is a good week. Not only because we have achieved the aims of the Presidency but first and foremost because we have decided to ensure better animal welfare for animals in Europe and because we have taken important steps towards a greener agriculture – a greener Europe,” says the Danish chair, Minister Mette Gjerskov.
 
The Danish Presidency has worked intensively to reach agreement on the strategy on animal welfare 2012 – 2015 and with regard to the Commission’s report on transport of animals. These decisions are a strong signal that animal welfare is high on the EU agenda and that the EU will strive to strengthen animal welfare.
 
Combating antimicrobial resistance
 
At the meeting the Danish chair presented a proposal for council conclusions on combating antimicrobial resistance:
 
“Fighting antimicrobial resistance is a major priority of the Danish Presidency. Each year 25,000 European citizens die due to antimicrobial resistance and the problem is increasing. This calls for action. Therefore I am content in having full support for the conclusions that are expected to be adopted at the EPSCO Council 22 June,” states Mette Gjerskov.
 
The reform of the Common Agricultural Policy
 
Council has also endorsed the Presidency’s progress report on the reform of the Common Agricultural Policy. Most of the major elements have already been discussed at Council meetings during the Danish Presidency, and at the most recent meeting, before the endorsement of the progress report, the Council discussed the proposal on the Rural Development Policy.
 
“I am convinced that green transition and growth are two sides of the same coin. Therefore I am content that there is a broad understanding that the Rural Development Policy should contribute to the protection of nature aswell. And I am glad that the Council has endorsed a progress report on the reform with focus on both simplification and green solutions,“ says Mette Gjerskov.

Report on organic farming
 
The Commission presented its evaluations report on the existing organic legislation.
 
“Organic farming is a powerful tool for green transition, and it is important that we now have the Commission’s report which, in turn, means that we can begin discussions on the future regulation of organic farming,” says Mette Gjerskov.

This Week's Pig Industry News
18 June 2012



 
ANALYSIS – Following a review of the current animal welfare legislation, the European Commission has called for a simplified legislative framework and better enforcement. Meanwhile, a survey of Danish pig farmers has revealed that they favoured the concept of unannounced welfare inspections but found the assessments unfair.
 A new report has identified potential benefits worth around £40 million per annum to the UK meat industry by adopting measures to increase the value of fallen livestock and animal by-products.
 The global protein market is in a state of structural change, according to a global strategist with Rabobank’s Food and Agribusiness Research and Advisory Group.

In the EU, the European Commission has reviewed current animal welfare legislation and has called for a simplified EU legislative framework. At the latest Agriculture and Fisheries Council meeting, the Council welcomed the ongoing work by the Commission and supported the need to take a holistic approach in future work on the welfare of animals.
 
The aim of the strategy for the ‘Protection and Welfare of Animals 2012-2015’ is to simplify animal welfare legislation and ultimately, to facilitate its enforcement.
 
In addition, the Commission stressed the need to reinforce or make better use of actions which the Commission already performs, including the development of tools to strengthen Member States' compliance with existing legislation, support for international cooperation, the establishment of a level playing field for European producers, and the provision of appropriate information to consumers and the public.
 
Several Member States have supported the Commission’s considerations over the introduction of a simplified EU legislative framework based on outcome-based animal welfare indicators. At the same time, they stressed that indicators cannot necessarily replace specific resource-based provisions.
 
Following the European Parliament’s adoption of Written Declaration on animal transportation in March this year, the Council meeting suggested a number of new rules, including those covering internal height, loading densities for different weight categories of pigs and the design of watering and temperature monitoring systems.
 
Finally, the Council has called on the Commission to strengthen its international strategy on animal welfare in order to increase the value of animal welfare, to limit distortions of competition and to ensure at least equivalence between EU and third-country operators.
 
Continuing on the theme of welfare, a survey of 12 Danish pig farmers after unannounced welfare inspections has revealed that they favoured the concept but found the assessments unfair.
 
In other news, a new report has identified potential benefits to the UK meat industry to the tune of around £40 million per annum. The report, prepared for the Royal Agricultural College and entitled A Creative Study Into the Scope for Increasing Value from Fallen Livestock and Animal By-products was presented by Stewart Houston last week. The benefits and value accrue as the result of reduced mortalities as well as better handling, storage and transport of carcasses and improved marketing of the by-products to achieve higher prices.
 
The global protein market is in a state of structural change. The world is no longer one of structural surpluses, it is a world of structural scarcity, according to David Nelson, a global strategist with Rabobank’s Food and Agribusiness Research and Advisory Group. He was addressing the World Meat Congress in Paris earlier this month.
 
Finally, turning to news of foot and mouth disease (FMD), new outbreaks have been reported in the last week in eastern Kazhakstan and Botswana (in cattle, sheep and goats).

Jackie Linden, Senior Editor

Pork Prices Up After Weeks of Declines
20 June 2012


CHINA - Pork prices rebounded last week, rising 0.2 per cent from one week earlier after weeks of decline, but were still down 14.9 per cent year-on-year, the Ministry of Commerce said.

Shanghai and Beijing saw pork prices rise 3.7 per cent and 2.3 per cent, respectively, last week, according to a statement on the ministry's website.
 
Prices of edible oil, flour and fish all increased last week. Retail egg prices continued to rise, up 1.3 per cent week-on-week, but wholesale egg prices fell 0.8 per cent last week, the statement said.
 
Lower fuel prices dragged transportation costs down, which led to the decline in wholesale egg prices, analysts said, adding that retail egg prices will also fall slightly after the upcoming Dragon Boat Festival holiday.
 
China's consumer price index (CPI), the main gauge of inflation, eased to 3 per cent in May, the lowest level since June 2010. Food prices account for nearly one-third of the weighting in calculating the CPI.
 

Weekly Roberts Market Report
20 June 2012



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


US - Corn prices continue to show price strength, writes Michael Roberts.

LEAN HOGS on the CME finished up on Monday. JULY’12LH futures closed at $95.450/cwt; up $2.425/cwt. AUG’12LH futures finished $2.025/cwt lower at $93.225/cwt. The DEC’12LH contract closed at $78.425/cwt; up $0.575/cwt. A rise in grain prices, an indicator of higher feed costs, underpinned Monday’s rally. Pit sources said that higher feed costs can deter livestock producers from expanding production. Hog slaughter may again be below the year-ago figure for a second consecutive week following a six-weeks period from late April through the end of May when it averaged 4.5 per cent above a year-ago. USDA’s quarterly hogs and pigs report in March projected supplies to average nearly 2 per cent above a year ago for the second quarter. Hog futures staged a sharp rally on fresh signs of tightening supplies and increasing summer demand for the grilling season. Still, there are signs the industry is struggling from supplies of meat that continue to outweigh demand. The rally recovered steep losses from Friday, when traders took profits from long positions ahead of the weekend. Monday, June 18 USDA put the pork cutout value at 94.33; up 0.21. According to HedgersEdge.com, the average packer margin was placed at a negative $7.95/head based on the average buy of $72.89/cwt vs. the breakeven of $69.99/cwt. The latest CME lean hog index was estimated at 95.25; up 0.96. USDA on Monday estimated the daily processing at 391,000 head vs. 386,000 head last Monday and 394,000 a year ago. USDA put the pork carcass cutout at $77.94/cwt, off $1.05/cwt but $0.53/cwt higher than a week 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 on Monday. The JULY’12 contract closed at $5.994/bu; up 20.0¢/bu. The DEC’12 contract closed at $5.340/bu; up 28.0¢/bu. Weather premium and strong buying interest from both commercial and noncommercial traders were supportive. Persistent economic concerns regarding Europe’s crisis slowed bull enthusiasm. Hot weather drying up soil moisture in key corn producing areas fueled speculation prices could strengthen on shorter production projections. Exports were neutral-to-optimistic with USDA putting corn inspected for export at 24,729 mi bu vs. estimates for 15-21 mi bu. This was well below the 34.3 mi bu needed to stay on pace with USDA’s 1.65 bi bu demand projection. (See chart) Exports compared to this time last year were over 43 mi bu.
 


Strong cash markets reinforced gains in corn, as basis, or the difference between cash and futures prices, remained firm in spite of the rally in futures. Usually basis weakens when futures prices rally. However, that wasn’t the case on Monday reflecting low availability of supply. Corn prices continue to show price strength.
 
SOYBEAN futures on the Chicago Board of Trade (CBOT) closed up on Monday. The JULY’12 contract closed at $13.842/bu; up 8.25¢/bu. NOV’12 futures closed at $13.392/bu; up 25.25¢/bu. New crop soybean contracts outpaced old-crop market supplies on weather concerns. Pit sources said they don’t think USDA’s 2012 yield forecast of 43.9 bu/ac will hold. Exports were not supportive with USDA putting soybeans-inspected-for-export at 7,897 mi bu vs. estimates for 10-16 mi bu. Inspections are running 13 per cent ahead of the total needed to stay on pace with USDA’s 1.335 bi bu.
 


Funds expanded net-bull positions as analysts continue to warn that supplies will tighten if hot weather persists. Funds were net-long 212,956 contracts for the week ended Tuesday, June 13, 2012. Short positions were placed at 5,984 lots. The net-long position is the difference between the number of long contracts (or bets that prices will rise) and short contracts (bets prices will fall). Funds’ net-long positions in soybeans has been large for a lot of the year on expectations that supplies will tighten after drought reduced South American soy production. Soybean prices should continue to strengthen for the next 10-14 days with some profit taking.
 
WHEAT futures in Chicago (CBOT) closed up on Monday. JULY’12 wheat futures finished at $6.302/bu; up 20.75¢/bu. The JULY’13 contract closed at $7.036/bu; up 15.75¢/bu. Futures were behind nearly all session until near the end when funds jumped in to buy late in the session. Lack of commercial interest held prices back amid speculative short-covering. Spillover from corn and soybeans weather concerns for wheat-crop making in China, Russia and the Ukraine were supportive. Fund managers expanded net-short positions in CBOT wheat futures to 6,367 contracts, more than double their net short of last week at 2,549 lots. USDA put wheat-inspected-for-export at 20,620 mi bu vs. estimates for 20-27 mi bu. This was 1.5 mi bu below the 22.1 mi bu needed to stay on pace with USDA’s 1.15 bi bu demand projection.
 

Low-Lactose Dairy Calf Bred in China
CHINA - Scientists at a north China university say they have bred the world's first genetically-modified calf that will produce low-lactose milk in two years.


The calf, named "Lakes," was born on April 24 at a lab of Inner Mongolia Agricultural University. She is healthy and strong, lab professor Zhang Li said.

In May 2011, Professor Li and his research team extracted fetus fibroblasts from a Holstein cow that was 45 days pregnant and genetically engineered the fetus by transplanting an lactose dissolution enzyme into the cell.

The engineered fetus was then transplanted into the womb of a cow in July, and Lakes was born about nine months later, said Mr Li.

"The enzyme can dissolve lactose -- the main sugar found in dairy products -- into galactose or glucose to ease digestive disorders among the lactose-intolerant people," he said.

Lakes may therefore produce safer milk for lactose-intolerant people, who account for nearly 60 per cent of Chinese. Symptoms of the allergy range from rashes to diarrhea and other digestive disorders.

"Lakes, the calf, is a blessing for these people," said Mr Li. "She will produce low-lactose milk after she has delivered her first calf, hopefully at 25 months old."

The same test was done on 14 heads of dairy cattle last year and five calves were born in April.

Only three of them carried the lactose dissolution enzyme but Lakes was the only one that has survived, said Professor Zhou Huanmin, leader of the research team. "The other two died within 24 hours after birth."

note:so what does this all mean,well, should this prove to be true then dairy cattle will continue to dominate the worlds milk supply and dairy goats will no longer able to claim that goats milk is mothers nature best as these new cattle dairy breeds will be on par with goats milk and the worlds masses drink more cows milk over goats milk and those who are unable today to stomach cows milk will be able to do so and since the cattle business is larger than the dairy goat market the dairy goat business might remain as is,smaller commercial run family businesses with one spouse working off the farm to hep support the business.A niche market as it is today for dairy goats milk.Will be interesting to see how this all unfolds over the next 10 years and where dairy goats will be placed in the marketplace.

Tuesday, June 12, 2012
Low-Lactose Dairy Calf Bred in China
CHINA - Scientists at a north China university say they have bred the world's first genetically-modified calf that will produce low-lactose milk in two years.


The calf, named "Lakes," was born on April 24 at a lab of Inner Mongolia Agricultural University. She is healthy and strong, lab professor Zhang Li said.

In May 2011, Professor Li and his research team extracted fetus fibroblasts from a Holstein cow that was 45 days pregnant and genetically engineered the fetus by transplanting an lactose dissolution enzyme into the cell.

The engineered fetus was then transplanted into the womb of a cow in July, and Lakes was born about nine months later, said Mr Li.

"The enzyme can dissolve lactose -- the main sugar found in dairy products -- into galactose or glucose to ease digestive disorders among the lactose-intolerant people," he said.

Lakes may therefore produce safer milk for lactose-intolerant people, who account for nearly 60 per cent of Chinese. Symptoms of the allergy range from rashes to diarrhea and other digestive disorders.

"Lakes, the calf, is a blessing for these people," said Mr Li. "She will produce low-lactose milk after she has delivered her first calf, hopefully at 25 months old."

The same test was done on 14 heads of dairy cattle last year and five calves were born in April.

Only three of them carried the lactose dissolution enzyme but Lakes was the only one that has survived, said Professor Zhou Huanmin, leader of the research team. "The other two died within 24 hours after birth."

Is Agriculture Leading the Way Out of the Recession?
ANALYSIS - Against what appears to be all the economic trends, the global agriculture sector seems to be showing a strength and even punching above its weight during the current global financial problems, writes, Chris Harris.

According to a new report from the USDA, The 2008-09 Recession and Recovery, US agriculture was better positioned than most US industries entering the recession, was less affected by the recession than most other US industries, and is well positioned to continue to do well in the years ahead.

And it is not only in the US that agriculture appears to be doing better than other industries.

In the UK, a recent report from the National Farmers Union showed that agriculture contributed £85 billion to the UK economy last year, while helping to keep some 3.5 million people in work.

The NFU report, Farming Delivers, says that because of its role as the driving force behind so much economic activity, farming offers huge potential to the economy as a whole.

The agricultural sector around the world is finding itself in a strong position largely because of international trade. With developing nations growing in strength, populations growing and wealth in these countries growing, there is an ever-growing demand for food.

In this respect, countries in the developed world that have been hit by the recession will be able to use food and agriculture as a major means of escaping from the straightened times.

The outlook report from the Food and Agriculture Organisation of the UN and the OECD said: "A stronger than expected agriculture commodity supply response last year, particularly in developed countries and much lower oil prices has resulted in significantly lower commodity prices from 2007-8 highs".

It continues: "Despite the significant impact of the global financial crisis and economic downturn on all sectors of the economy, agriculture is expected to be relatively better off, as a result of the recent period of relatively high incomes and a relatively income-inelastic demand for food."

The report focuses on the resilience of agriculture to economic recession and says that as the recovery begins, a reduction in agricultural prices and a fall in production and consumption are unlikely.

This resilience of the agricultural sector is reflected in the USDA report that shows that the growing importance of developing countries as markets for US agricultural exports, strong balance sheets in US agriculture going into and coming out of the recession, healthy financial institutions supporting agriculture, and prospects for a continued low real trade-weighted dollar exchange rate are supporting relatively strong growth in the farm sector.

US agricultural exports, especially those to developing countries, benefited from stronger world growth, the report says.

Approximately 22 per cent of US agricultural production is exported, accounting for almost 10 per cent of total US merchandise exports.

These economic and financial factors, along with underlying gains in agricultural research and productivity and in expanding and improving access to markets for farm products, suggest a strong outlook for US agriculture as US and global economies continue their recovery, the USDA says.

The USDA said that the latest recession has been longer and deeper than anything the US has seen since the 1930s.

While both developed and developing countries showed declines in 2008 and 2009, developed countries went into a severe recession whereas the developing countries only had a growth slowdown.

Real world trade fell by 11 per cent in 2009, and developed country exports declined nearly 13 per cent.

Those countries reliant on exporting expensive durable consumer and business goods, such as Western Europe and Japan, were hit especially hard.

US agricultural exports, while not affected as greatly as non-agricultural exports, were not immune to the impact of global recession. Real US agricultural exports fell by two per cent in 2009 after increasing by 5.3 per cent in 2008.

Exports of high value products, such as fresh beef and dairy, fell six and 39 per cent, respectively.

However, in 2011, US agricultural exports exceeded $136 billion. The growth in post-recession exports was about twice the historical average between 1998 and 2007, the decade preceding the recession and developing countries' share of US agricultural exports rose to more than 60 per cent in 2011.

The world economic recovery was underway in 2011 and is likely to continue in 2012 and beyond, with developing countries, including those in Asia, Latin America, and Africa, leading the way, while developed countries will recover at a much slower pace.

The crisis in the Eurozone continues and is likely to continue for some time, further dampening growth prospects in developed countries.

However, the global agricultural sector is leading the way and if it can continue to find and build on new export markets it will help to strengthen the economies that have been hit hardest.

However, financial institutions will also have to lend their support to the growing global trade in agricultural products and agriculture could be the key to unlocking much of the finance that has been held back from the markets.


Chris Harris, Editor-in-Chief

April Pork Exports Remain Strong
12 June 2012

 

US - April exports of US pork were up slightly in volume (183,618 metric tons) from a year ago and four per cent higher in value ($509.2 million), keeping 2012 exports ahead of 2011’s record pace. Through the first four months of the year, pork exports stand six per cent higher than last year in volume (781,676 metric tons) and 16 per cent higher in value ($2.17 billion), according to statistics released by the USDA and compiled by the US Meat Export Federation (USMEF).

On a per-head-slaughtered basis, April pork exports equated to $57.69 – down slightly from the first quarter of this year but still more than a dollar higher than in April 2011. For the first four months of this year, exports equated to $58.84 per head.
 
April exports of pork muscle cuts equated to 24 per cent of production, 27.7 per cent when including both muscle cuts and variety meat. These ratios were roughly the same as April 2011 and slightly lower than the first quarter of this year.
 
Individual market highlights for US pork included:
• Though April was the slowest month this year for exports to Mexico, volume was up 30 per cent over April 2011 and value was 18 per cent higher. Through April, 2012 exports to Mexico were up 19 per cent in volume (207,095 metric tons) and 18 per cent in value ($377.4 million) over last year’s record pace.

 
• April exports to the China/Hong Kong region were the second-largest so far this year, pushing results for the first four months of the year one-third higher in volume (154,884 metric tons) and 84 per cent higher in value ($312.8 million) than the same period in 2011. However, exports to this region have slowed considerably from the peak volumes shipped in the final months of last year.

 
• January-April exports to Japan were down slightly in volume (161,933 metric tons) from last year but were 14 per cent ahead of 2011’s record value pace at just under $700 million.


 • Composed almost completely of muscle cuts, April exports to Russia were the strongest in more than six months. This pushed Russia’s 2012 results 20 per cent higher in volume (25,903 metric tons) and 28 per cent higher in value ($78.7 million) than a year ago.

The recovery of South Korea’s swine herd from the 2010-2011 foot-and-mouth disease outbreak has caused US exports to slow from last year’s record pace. Through April, exports to Korea were down 31 per cent in volume (67,061 metric tons) and 20 per cent in value ($192.7 million) from a year ago. For perspective, however, it is important to note that other than 2011, these results still outpace any other year’s exports to Korea by a wide margin and were nearly double the volume shipped in the first four months of 2010.
 
“Considering the recovery of domestic supplies in markets such as Korea and China, pork exports have performed remarkably well through the first four months of the year,” said USMEF President and CEO Philip Seng.

“Despite fierce competition in Japan, we have increased our market share further this year and nearly topped $700 million in value. USMEF marketing efforts are also contributing to growth in the Western Hemisphere markets – especially in the processing and retail sectors – with Mexico leading the way. Even in our Latin American markets that are quite price-sensitive, US pork is appealing to more customers than ever before.”
 

Global Protein Market in State of Structural Change
12 June 2012



 
FRANCE - The world is no longer one of structural surpluses, it is a world of structural scarcity David Nelson, a global strategist with Rabobank's Food and Agribusiness Research and Advisory Group told the World Meat Congress in Paris last week, writes Chris Harris.
 
He said the basics of the world agricultural market have remained the same with populations rising and land use falling.
 
However, crop prices are also rising and the high grain prices are being driven by higher gross domestic product growth, largely in developing countries.
 
This growth in GDP is driving the demand for meat and hence the demand for grain, Mr Nelson told the congress.
 
He said that in the developed world meat consumption in going down, but the demand growth is coming from the developing markets while the developed markets are flat.
 
This is the scenario that he said analysts forecast will continue for the next 10 years.
 
He said that while world GDP growth was on an upward swing two years ago, this growth is now on the decline.
 
In 2010 world GDP growth was 4.05 per cent. Last year it was 2.87 per cent and this year it is expected to fall to 2.26 per cent although, rise again in 2013 to 2.89 per cent.
 
By contrast, China that has seen the most dramatic growth in its GDP over recent years is also facing a slowdown. In 2010, China's GDP growth was 10.4 per cent, but it fell to 9.2 per cent last year and is forecast to go down to 8.3 per cent this year with a slight rise in 2013 to 8.5 per cent.
 
While the global GDP grew, Mr Nelson said, it outpaced the growth in protein prices although they have now stayed quite high.
 
The growth in agricultural industrialisation in China has been the main reason for the growth in protein consumption and also prices. The country has changed from back yard production of livestock feeding scraps to a more industrialised production with larger herds and flocks that call for more grain to be used as feed.
 
However, there have also been other demands placed on the demand for this grain, including the demand from ethanol and biodiesel production.
 
"£The demand growth for protein is rising, but the growth of crop production is declining," said Mr Nelson.
 
"There are structural shortfalls in corn production."
 
Mr Nelson added that he believed the USDA is also overestimating the potential yields for corn which they have set at 166 bushels per acre whereas, he said, in reality they could be nearer to 155 bushels.
 
He also told the congress that the global problems with meeting demand for grain were because of infrastructure problems in Russia and Brazil and the fact that Russia and Ukraine produce about 25 per cent of the world's grain meant that relying on these countries' production put the world in a precarious position.
 
China is also structurally incapable of producing its own crops, but the country will keep driving the market for pork, corn and soy.
 
He said that even assuming that there will be a rebound in the US production of corn this year and that Brazil will be producing more soy, this will only be a small rise in production and the effect on world supplies and the ability to meet demand will be slight.
 
"There is not a comfortable level of stocks," Mr Nelson said.
 
Mr Nelson warned that the grain markets are also in the hands of speculators. In recent times fund managers have moved out of the markets but they have the ability to change things around quickly just by moving back in again.
 
Mr Nelson said that production of protein is also changing with a move to more dairy production in northern Europe. This rise in dairy production has seen a drop in beef production in Europe as more pasture is turned over to dairy. Beef production in Europe is starting to move to the southern countries.
 
European beef production will also be affected by the imminent changes to the Common Agricultural Policy.
 
In the pig meat sector, Mr Nelson said that he US has costs that are a third less than those in Europe, but an exchange rate change and a reduction in the value of the Euro has made the EU more competitive in recent times.
 
Similarly, a devaluation of the Brazilian real has made Brazil more competitive.
 
However, he warned that with continuing rising costs, Europe might not be a net pork exporter in four or five years' time.
 
"Europe has been doing a bit better recently with exports of beef and pork up, but feed prices and new regulations will make Europe a challenge," Mr Nelson said.
 
He warned that the global animal protein industry is becoming globalised as labour rates in China rise along with those in Brazil as their economies grow. However, in developed countries, such as the US, labour rates are predominantly flat - another factor impinging on the global cost of protein.
 
Livestock costs are also becoming comparatively high in some developing countries, which will have another levelling effect on global prices, while currency swings will affect both production and competitiveness.
 
Mr Nelson concluded that the major issue affecting world protein markets is the price of pork in China and that although protein production in China is high, producers have been losing money. However, there will still be continuing growth in developing markets that will have a dominant effect on world protein production.

 Chris Harris, Editor-in-Chief

US Pork Producers Concerned About Canadian Pork Industry Subsidies
12 June 2012



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

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


US & CANADA - The president of the US based National Pork Producers Council says, despite concerns over subsidies offered to Canadian pork producers, relations among the US and Canadian pork industries remain positive, Bruce Cochrane writes.
Matters related to trade were discussed last week when representatives of Manitoba Pork Council and the National Pork Producers Council met during World Pork Expo in Des Moines.
 
NPPC president R.C. Hunt says producers in the United States have been concerned with provincial government subsidies that give a distinct advantage to producers in those areas and disadvantage US producers and the Canadian sow buy-out program which offered assistance to producers to vacate the industry.
 
R.C. Hunt-National Pork Producers Council
 
One of the things that probably concerned us in the US is the opportunity for recovery, that after a three year period of time, that someone could go back in and open and operate that facility.
 
We, right or wrong, looked at that particular program as a benefit subsidizing the Canadian producer.
 
If you asked us behind closed doors during that period of time, everybody was in negative margins and would I have liked to have something like that personally in my farm, absolutely yes.
 
But unfortunately the philosophy and position of the National Pork Producers is that we truly believe and we've been very consistent with this philosophy is that we just don't want government intervention.
 
We want everything based on the free market enterprise and we've been consistent with that philosophy for a long time.
 
Mr Hunt says, despite differing government philosophies on subsides, relations among pork producers on the two sides of the border remain strong.
 
He says there is agreement that the Canadian, US and even Mexican pork industries are part of the western hemisphere and they need to work together very aggressively because they'll be major suppliers of pork around the world.
 

Update on Export Progress
12 June 2012


US - Much of the attention in the crop markets is rightly focused on the potential size of the northern hemisphere crops. Still, the on-going pace of consumption is an important measure of demand strength and the likely level of year ending stocks. Here we focus on the US export sector for wheat, corn, and soybeans, writes Darrel Good.

For wheat, the 2011-12 marketing year ended on May 31. Cumulative export inspections for the year totaled 1.036 billion bushels, slightly above last month's USDA projection of 1.025 billion bushels. Through April, cumulative Census Bureau export estimates were about 4 million bushels less than cumulative inspections. Assuming that margin persisted through May, marketing year exports were about 7 million bushels larger than forecast. For the marketing year that began on 1 June, the USDA has projected exports at 1.150 billion bushels. As of 31 May, new sales plus unshipped sales from the past marketing year totaled 235.6 million bushels, near the level of sales of a year earlier. To reach the USDA projection, shipments will need to average about 22.1 million bushels per week this year. Export inspections during the first week of the year were reported at 21.5 million bushels.
 
For corn and soybeans, the final quarter of the 2011-12 marketing year began on 1 June. Cumulative corn export inspections during the first three quarters of the year totaled 1.221 billion bushels. Through April, cumulative Census Bureau export estimates exceeded inspections by 23 million bushels. Assuming that margin persisted through May, exports during the first three quarters totaled 1.244 billion bushels, 122 million less than during the same period last year. The USDA currently forecasts marketing year exports at 1.7 billion bushels. Exports during the final quarter of the year will need to total 456 million bushels, or 34.7 million bushels per week, to reach the projection. Inspections averaged only 26.3 million bushels during the 6 weeks ended 7 June, and dropped to a marketing year low of 17 million bushels in the latest reporting week. Unshipped sales as of May 31 were reported at 304 million bushels, 87 million less than on the same date last year. For sales to reach 1.7 billion bushels, new sales will need to average 11.5 million bushels per week. The average sales pace for the 5 weeks ended May 31 was 7.4 million bushels. Export commitments to date are much larger than those of a year ago for China and Mexico, but down sharply for Japan, Taiwan, and South Korea. It now appears that exports for the year will be 75 to 80 million bushels less than projected as US corn has lost market share to feed wheat. The USDA will update the projection on 12 June.
 
Cumulative export inspections of soybeans totaled 1.164 billion bushels during the first three quarters of the 2011-12 marketing year. Through April, cumulative Census Bureau export estimates were about 6 million bushels less than inspections. If that margin persisted through May, exports totaled about 1.158 billion bushels, 237 million less than in the first three quarters last year. For the year, USDA has projected exports at 1.315 billion bushels. To reach that projection exports during the final quarter will need to total 157 million bushels, or an average of 11.9 bushels per week. Inspections during the 6 weeks ended June 7 averaged 14.9 million per week. Unshipped sales as of May 31 totaled 192 million bushels, compared to 154 million on the same date last year. It now appears that marketing year exports could exceed the USDA projection (to be updated on June 12) by as much as 25 million bushels as the U.S benefits from the shortfall in South American production. China continues to be the major purchaser of US soybeans (62 per cent to date) and has already made large purchases for delivery during the 2012-13 marketing year.
 
It appears that corn exports will come up well short of 1.7 billion bushels, pointing to larger year-ending stocks than currently projected. Some of the shortfall in exports may be made up by slightly larger consumption for ethanol production as ethanol production during the first three quarters of the year was about two per cent larger than production a year earlier. The big unknown, however, is the magnitude of feed and residual use of corn during the last half of the year. Quarterly use in that category has been difficult to anticipate over the past two years. The 1 June corn stocks estimate, along with the level of wheat prices, and the pace of maturity of the 2012 corn crop will shed more light on use in that category.
 
While month-end acreage and stocks reports will be important for crop prices, prices will continue to be heavily influenced by 2012 yield prospects. To date, the corn market has displayed relatively little concern about the cumulative and upcoming moisture deficits in large areas of the central, eastern, and southern growing areas.