Friday, August 05, 2011
Farm Prices Fall While Raw Materials Rise
CHINA - Farm produce prices monitored by MOFCOM fell last week, while prices of raw materials continued to rise.


The Chinese Ministry of Commerces said that the growth period for vegetables is shorter in summer and the amount of vegetables available in market is on the increase.

The average price of 18 vegetables fell by 3.1 per cent compared to the previous week, 1.6 percentage points more than the growth rate of last week.

The average wholesale price of eight main categories of aquatic products began to fall by 0.1 per cent, of which small cutlass fish, large cutlass fish and silver carp saw a 1.4 per cent, 0.8 per cent and 0.5 per cent price decrease respectively.

The prices of grain and oil saw a slight rise.

The prices of soybean oil remained unchanged, peanut oil and rapeseed oil increased by 0.6 per cent and 0.2 per cent respectively, and the prices of rice and flour both rose by 0.2 per cent.

The wholesale price of meat saw a slight change.

The price of pork dropped by 0.5 per cent, 0.3 percentage points higher than the decline of last week, while beef, lamb and chicken rose by 0.5 per cent, 0.4 per cent and 0.3 per cent respectively, 0.1, 0.6 and 0.1 percentage points lower than the decline of the previous week.

The high summer temperature has lead to a drop in the output of eggs, and the retail price of eggs rose by 0.8 per cent.

Friday, July 29, 2011
Best Genetics and Cavite Pig City Form Partnership
US & PHILIPPINES - The National Swine Registry (NSR) announces the securement of a partnership between America's Best Genetics - the umbrella organization that represents US breeders who raise purebred swine with a commercial focus and specialise in international exports, and Cavite Pig City near Manila, Philippines.


The partnership includes delivery of 645 head of purebred Duroc, Landrace and Yorkshire breeding boars and gilts that arrived 10 July in Cavite, as well as a two-year America's Best Genetics consulting agreement with geneticists of the National Swine Registry.

The partnership is notable as it is the largest single shipment of swine into the Philippines in more than 10 years, according to the Bureau of Animal Industry of the Philippines. Additionally, it initiates a formal consulting agreement with an international firm from America's Best Genetics.

"This is a tremendous opportunity for us to build a long-term working relationship with Cavite Pig City, to not only supply them with nucleus genetics from the world's most highly-regarded purebred breeders, but to also assist them in implementing the entire America's Best Genetics breeding program from the ground up," says Dr Clint Schwab, NSR director of genetic and technical services and interim CEO.

America's Best Genetics geneticists will work with Cavite Pig City owners and employees to develop genetic and management standard operating procedures, which includes data recording, off-test procedures, sire and replacement female selection and mating allocations. Dr Schwab, along with NSR Genetic Programmes Specialist Dr Justin Fix, have both visited Cavite Pig City within the past year to tour the facilities and discuss future goals of the partnership. They plan to return to initiate formal consultation in August.

Export manager Tony Clayton of Clayton Agri-Marketing in Jefferson City, Missouri, who arranged logistics of the partial charter of swine that shipped out of Chicago O'Hare International Airport, says the agreement is a tremendous accomplishment for all parties involved.

"A transaction of this size takes a lot of behind-the-scenes work on the part of many players - especially when dealing with biosecurity issues and working to protect the newly-gained foot and mouth disease-free status of the Philippines," says Mr Clayton.

In-country arrangements to the 8,000 plus-sow Cavite Pig City unit were made by Philippine importer Bobby Badilla of Carmel Import/Export Corporation in Paranaque City, Philippines. Other parties involved in the process include Ten Fold Customs Brokerage and Transport Corp.; the Philippines Bureau of Animal Industry under the direction of Efren Nuestro; and the USDA's Foreign Agricultural Service (FAS) in Manila, including Agricultural Counselor Philip Shull and staff.

Friday, July 29, 2011
Pig Manure Could Mean Big Bucks
PHILIPPINES - Renewable energy investors should already tap the cash-rich European carbon-credit market before it closes its doors to developing countries by 2012, an industry expert said.


First Gen Corp. Vice President Al Santos explained the European market will only accept carbon credits from least developed countries after that. "The projects should already be registered now for sale of carbon credits before the end of 2012."

The European Union created carbon trading in order to mitigate the growth in concentrations of greenhouse gases. Any company that exceeds the limits, or the so-called compliance buyer, has to buy credits from renewable energy technologies in order to cut its carbon emissions.

According to ABS-CBN News, these companies earn these "credits" from projects registered under the United Nations Framework for Climate Change (UNFCC).

Of the 3,000 projects currently registered, 32 are from the Philippines.

Mr Santos said even small companies tap this trading system because of its benefits.

"Per ton of certification emission reduction - we have anywhere from 10 to 12 euros. What it's supposed to do is for marginal projects, with the additional revenues from the sale of carbon credits it's supposed to improve the returns so that the project will go ahead," he said.

Even the swine industry knows its benefits.

Mr Santos said, "The projects registered under one application are mostly in the swine industry for the methane capture from the pig waste and use to power an engine. The credit of methane is 21 times carbon dioxide - so a ton of methane is equivalent to 21 tons of carbon dioxide emission."

One carbon credit is equal to one metric ton of carbon dioxide.

Pig manure can be converted to biogas, which is used in power generation. For example, Cavite Pig City in General Trias produces less than 1 megawatt for its own use.

Mr Santos said, however, that a company needs to cough up about a million in order to have its project registered with the UNFCC.

"It's not cheap. You need to hire a consultant to put together the documentation; you need to get a third-party validator to assess the application and look at the project; and then you submit it to the board - so that could already cost a million pesos. If you have a small project, it's hard to justify you're spending a million pesos to get a project registered," he said.

On the other hand, the benefits would easily offset the cost needed for registration. Companies could also group themselves under one application.

"If the projects are small in scale - what they do is they bundle a number of projects under one application to save on costs. It's like cooperative-type," he said.

Tuesday, July 26, 2011
Pork Commentary: Heat Wave Pushes Weights Lower
US - The extreme heat and humidity that swept through the US the last several days not only caused great discomfort for people working in swine barns, cut pigs appetite but also ripped market hog weights lower, writes Jim Long in this week's Pork Commentary.


Jim Long is President &
CEO of Genesus Genetics.
Last week the National Lean average carcass weights hovered around 199.5 pounds per carcass down around 3 pounds from the week before or about 4 pounds live weight. This was a huge drop week to week. The weight decline also happened despite weekly market numbers at 2,010,000 quite close to the previous weeks.

The chase of packers to keep hogs coming lead to a jump in market hog prices to $99.55 (Iowa – S. Minnesota) on Friday. Most producers with premiums will be receiving over $1.00 lean a pound once again pushing cash hog prices into historical high areas.

Of note a year ago 53 – 54 per cent lean hogs were averaging $79.60 a pound, while carcass weights were 3 pounds heavier. A year over year difference of $40.00 per head, not enough to rally compensate for the higher feed prices we are facing but a real reflection of pork domestic and export demand.

Feeder Pigs and Early Weans
Historically the yearly price low for feeder pigs and early weans is in this time frame. This year is no different. The hot humid weather that has slowed down weight gains has also seemed to back up barn space. The challenge to find barn space can be seen in the average price of cash early weans at $13.20 and feeder pigs at $39.64. It’s amazing we are hovering around the highest lean hog price in history but small pig producers are losing $20 - $25 per head. Part of the low price is the barn space issue but also high feed prices continue to limit profit potential for pigs to be finished. The train wreck that is the cash small pig market is not leading to sow head expansion.

National Pork Industry Council
We received the following from a reader last week about our comments on our NPIC report.

"I cannot help but see a long term trend developing because the signs and symptoms are popping up everywhere we turn. Maybe only a few of us see the signs of a perfect storm brewing. I hope that most of us realize the road we are on early enough to make a difference. This conference seemed to have highlighted this perfect storm that is spawning quite nicely."

For example:

"The CEOs like Donnie Smith, who are Capitalists of America, but remain ahead of the curve and realize the needs of consumers whose main fear at the present time is food safety, carbon footprint, animal welfare, etc... We see the Walmarts and Safeway’s leaning toward consumer demand, etc... (note: Donnie Smith clearly stated Tyson would not be using Pfizer Improvest – Castration Vaccine at this time!)


"Then we have Clint Lewis who is so far behind the 8 ball, it is actually pathetic. Consumers are in hysteria about food safety, effects of GMO, environment and how we are engineering and mass producing our food and he dares to bore us with his ramblings on blindly about just another warlord, sorry, I mean drug lord money grab?? (note: Pfizer who had announced that they are planning on selling its animal health division stated this past week they would not sell rights to specific products to Eli – Lilly – Elanco who had expressed interest. We wonder if Improvac was not wanted by Elanco?)


"And then we have best for last, Monsanto putting us on a guilt trip by reminding us that we have an overpopulated planet and they are the heros of food production and without them is only a brick wall in front of mankind."
Thanks for reader’s concern.

Summary
The hot weather has cut growth rates the consequent need for lean hogs has forced packers to bid up. We expect packers will have to keep strong bids to meet export orders. Hopefully rains in the US. Mid – West this past weekend will help lower the grain price. The hog industry is like real estate – location, location, location!! While small pigs languish at real low prices market hogs in Japan are bringing around $800 per head! The good thing is Japan will continue to import pork and those small pig prices will get stronger.


Author: Jim Long, President & CEO, Genesus Genetics 

Monday, July 25, 2011
Record Commercial Red Meat Production for June
US - Commercial red meat production for the United States totalled 4.22 billion pounds in June, up one per cent from the 4.18 billion pounds produced in June 2010, according to the USDA's National Agricultural Statistics Service (NASS).
 

Beef production, at 2.37 billion pounds, was two per cent above the previous year. Cattle slaughter totalled 3.10 million head, up two per cent from June 2010. The average live weight was up one pound from the previous year, at 1,262 pounds.

Veal production totalled 11.2 million pounds, four per cent above June a year ago. Calf slaughter totaled 72,500 head, up six per cent from June 2010. The average live weight was down three pounds from last year, at 266 pounds.

Pork production totalled 1.82 billion pounds, down one per cent from the previous year. Hog slaughter totalled 8.94 million head, down one per cent from June 2010. The average live weight was up two pounds from the previous year, at 273 pounds.

January to June 2011 commercial red meat production was 24.2 billion pounds, up one per cent from 2010. Accumulated beef production was up one per cent from last year, veal was down two per cent and pork was up two per cent from last year.

June 2010 and June 2011 both contained 22 weekdays (including zero holidays) and four Saturdays.

Friday, July 29, 2011
Secret Film Claims Cruelty to Pigs in Abattoir
UK - Animal rights group, Animal Aid has released film footage it claims was shot secretly a pig slaughterhouse in Essex and that the group says shows severe animal cruelty.


The film, which Animal Aid says was recorded on a number of secretly installed cameras over a period of four days at Elmkirk Ltd (Cheale Meats), an Essex-based, family-run slaughterhouse – shows three different workers stubbing their cigarettes out on the faces of pigs, while one of the men landed a violent punch on the face of a pig who was walking by.

Animal Aid says that in addition, three seriously injured pigs were forced to crawl from the lairage, through the race and into the stun pen.

Animal Aid said it also filmed bad practice in the stunning process causing suffering to the pigs and it says there was also incorrect use of electric goads.

Animal Aid said that Cheale Meats is the ninth UK slaughterhouse to be secretly filmed by them in the past two-and-a-half years.

Animal Aid added that it sent the Cheale Meats evidence to the Food Standards Agency (FSA). It says it recevied a reply saying that: "Defra is not prepared to commence prosecution proceedings where the initial allegation is based on CCTV footage gained without the consent of the relevant Food Business Operator."

Kate Fowler, Head of Campaigns at Animal Aid says: "Since we first began investigating English slaughterhouses, we have been pressing everyone involved – regulators, industry bodies and the government – to act decisively to end the cruelty.

"At first, they appeared contrite and promised action but now their words ring hollow.

"If Defra won’t prosecute these flagrant breaches of the law; if the vets can’t or won’t act to stop the cruelties; and if the slaughterhouse owners look the other way, who is there to stop animals from being abused at the most vulnerable time of their lives? It seems that all involved are content to keep quiet and to allow these cruelties to continue. So much for the UK having the best welfare standards in the world!"

A statement from the solicitor for Cheale Meats, Jamie Foster, a Partner at Clarke Willmott LLP, said: "I am currently reviewing and taking instructions from my clients in relation to video footage provided by Animal Aid. Given the source of this material, Elmkirk would not accept that all or any of the activities shown on this video relate to their premises.

"Elmkirk Ltd have had CCTV installed for a decade. I am therefore surprised that Animal Aid felt it necessary to target our client's premises as we understood that the stated purpose of their activities was to encourage abattoirs in this Country to install CCTV.

"Clearly any footage which relates to our clients premises has been obtained unlawfully. I have been involved in cases previously where such evidence has been ruled to be inadmissible or the Prosecution has declined to rely on evidence which has been obtained by burglary or other unlawful means.

"A complaint has been made to Essex Police by our clients in relation to any unlawful entry into our client's premises by an employee of Animal Aid. The outcome of that complaint is awaited."

Friday, July 29, 2011
Consumers Seek Alternatives as Pork Prices Soar
SOUTH KOREA - The recent outbreak of foot-and-mouth disease has been driving up prices of pork, and local consumers are now opting for other kinds of meat.


According to The Chosun Ilbo, the Korea Rural Economic Institute announced in its survey of 750 consumers this month that over 80 per cent had started buying other kinds of meat because domestic pork has become too expensive.

Chicken topped the list of replacements with 36 per cent of respondents switching to this popular poultry, followed by domestic beef, duck and imported beef and pork.

The going price of 100 g of pork now stands at around W2,400, up more than 30 per cent from last year (US$1=W1,052).

Friday, July 29, 2011
Pork Prices Cooling as China Boosts Pig Farming
CHINA - Pork prices finally subsided last week after a month-long rally that drove China's consumer prices to a three-year high in June. The retreat came with a notice from the State Council, or China's cabinet, which stressed a new round of macro-control over pork costs.


Wholesale pork price edged down 0.2 per cent from a week earlier to 26.11 yuan (US$4) per kilo between 18-24 July in China's 36 cities that are being monitored, the Ministry of Commerce said yesterday.

ShanghaiDaily.com reports that the State Council also initiated a campaign to stabilise market supply and retail price of pork.

"Local governments should support pig farming by improving their production environment and epidemic prevention to ensure stable pork supply," the State Council said in the notice.

It called for continued incentives, for example a 100 yuan subsidy for each breeding sow a year, to stimulate pork production.

Soaring pork prices contributed the most to China's inflation in June, which hit a three-year high of 6.4 per cent. Last month, pork prices climbed 57.1 per cent from a year earlier, or 11.4 per cent month on month.

The current round of rising pork prices was triggered by a low market supply, Yao Jian, a ministry spokesman, said earlier. He expected the market can adjust the supply and demand automatically as rising prices lured more players into the market.

It is reported that some property developers have entered the pig business to pursue high profits as the real estate market is reeling from the government's tightening policies.

Our Philippine snubians born so far are reporting good birth weights,all singles so far and not one less than 3kg with one buckling coming in at 4kg.True singles are on average are larger over twins and triples.All does are percentage anglos with one doe a second time mother failing due to having a hard birthing time.Mulberry is increasing milk production in the percentage does allowing for better growing kids,so we hope.There are times when does will have a harder time with birthing and one really does not know the outcome until the doe/s are bred.One out of 6 so far is manageable but should that doe recover she will never be bred back to the sannen but will go on to be bred to a commercial boer buck for meat production.

Monday, July 18, 2011
Higher Slaughter Capacity, Value-Added Processing
CANADA - Improvements planned for the Hylife Foods hog slaughtering plant at Neepawa in Manitoba will allow expanded slaughter capacity and additional value-added processing, writes Bruce Cochrane.




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. 
Last week the federal government announced Hylife Foods, formerly Springhill Farms, a subsidiary of Hylife, will receive C$10 million under the Slaughter Improvement Programme for improvements to its Neepawa hog slaughtering plant including expansion of the cooler and cutting areas and the purchase of new equipment.

Denis Vielfaure, the Chief Operating Officer of Hylife, says the upgrades will expand slaughter capacity and allow more value to be added to the plant's products.

Denis Vielfaure-Hylife
Our goal when we bought the facility about 40 months ago was to diversify the product mix and just not to be pigeonholed.

At that time we were basically in the frozen international market, 90 plus per cent frozen international market so a lot of the upgrades have been done to improve the facility to be able to do fresh product and also to value add to that fresh product which means doing a lot more deboning of primal pieces to sell to our customers.

Also at the same time, the main focus has been to export fresh chilled, specifically to the Japanese market and the Korean market and some Asian markets.

Today we've maxxed out at about 900,000 hogs annually.

With these upgrade it's going to give us the opportunity to have some more throughput, it's going to permit us to have about 50 per cent more throughput, bringing us close to the 1.4 million hogs per year.

Mr Vielfaure notes Hylife Foods sources hogs from within the Hylife production system, from the former owners of the facility and from some independent producers.

He says the bulk of the additional capacity will be filled by hogs from within the Hylife system that are now being processed at other facilities.

Monday, July 18, 2011
May Pork Imports Down 1.2 Per Cent
US - US pork exports during May were up 12.7 per cent compared to a year earlier, writes Ron Plain.
 
Ron Plain
Pork imports were down 1.2 per cent in May. During May the US exported 23.2 per cent of our pork production while imports equaled 3.7 per cent of production. For the first 5 months of 2011, pork exports are up 17.9 per cent and imports are up 1.5 per cent. The big growth market thus far in 2011 has been South Korea which has purchased 157 million pounds (147 per cent) more US pork than in January-May 2010. Exports to Japan are up by 81 million pound; shipments to Russia are up 39.5 million pounds; exports to China and Hong Kong are up 50 million pounds. Feeder pig imports during May were up 4.4 per cent from a year earlier. Imports of slaughter hogs were up 10.2 per cent.

Cash hog prices were slightly lower this week. The national average negotiated carcass price for direct delivered hogs on the morning report today was $90.88/cwt, down $1.10 from last Friday. The Friday morning price report for the western corn belt was $94.30/cwt. Iowa-Minnesota averaged $94.57/cwt. The eastern corn belt averaged $88.72/cwt. Friday’s top live hog price at Peoria was $63/cwt. Zumbrota’s top was $64/cwt. The top for interior Missouri hogs was $67.50/cwt, $3 lower than the previous Friday.

The pork cutout value rose this week. USDA’s Thursday afternoon calculated pork cutout value was $98.66/cwt, up $2.07 from the previous Thursday. Loins, hams, and butts were higher, bellies steady. This morning’s national average hog carcass price equaled 92 per cent of the pork cutout value which is more or less a breakeven for packers.

Hog slaughter totaled 2.018 million head this week, up 16.6 per cent from last week’s holiday-shortened total and up 0.9 per cent compared to the same week last year. Barrow and gilt carcass weights for the week ending 2 July averaged 199 pounds, unchanged from a week earlier, but 1 pound heavier than a year ago. Iowa-Minnesota live weights for barrows and gilts last week averaged 266.6 pounds, down 1 pound from the week before and down 1.6 pounds compared to the same week last year. This is the seventh consecutive week Iowa-Minnesota weights have been below the year-earlier level.

The July lean hog futures contract went off the board today at $95.15/cwt, down 72 cents from the previous Friday. The August hog contract settled Friday at $98.95/cwt, up $2.78 for the week. October hogs settled at $91.65 and December closed at $87.87/cwt.

USDA’s June production and price forecast is for more corn acres and a lower price than their June forecast. USDA added 1.6 million acres to their planting estimate, 270 million bushels to their corn production forecast, and lowered their price estimate on this fall’s corn crop by 50 cents to $5.50 to $6.50 per bushel. They also predicted a 100 million bushel increase in ethanol use. USDA is are forecasting 2012 pork production to be 1.6 per cent above this year and 2.7 per cent higher than in 2010.

The September corn futures contract gained 59 cents this week to settle at $7.0125/bu. December corn futures close at $6.85. The May 2012 contract ended the week at $7.005/bu.

Monday, July 18, 2011
Producers Concerned as Pork Prices Surge
CHINA - Chinese pig farmers said they were concerned about the recent surge in pork prices, citing fears that the current boom might prompt vast profit-driven expansion and lead to price plunge.


Latest statistics show China's pork prices surged 57 percent year-on-year in June, stoking inflation worries while setting pork suppliers fidgeting upon the potential shake-up in the industry.

Shang Yudong, a pig farmer in Central China's Henan province, said this year's price hike was evocative of the year 2008, when a soaring pork price fueled an unfettered production expansion, resulting in a glutted market and flagging prices in 2009 and 2010.

"If history is any guide, a price plunge is always after a price surge, and that's why many farmers have not been super excited about this year's windfall," said Mr Shang.

Mr Shang said if a similar price fall should occur, much of the profit he earned from this year's higher prices would be wiped out.

Yin Zhongquan, who owns a pig farm in Southwest China's Sichuan province, said it had been difficult for pig farmers to keep much wealth after all these years of rise and fall of pork prices.

"The alternation of profit-making and loss-making years is a common complaint among pig farmers. Instead of extravagant profits, we now pray more for a stable price and a reasonable profit," said Mr Yin.

Fragile industry
China leads the world in the volume of pork produced and consumed every year. The pork has been an essential ingredient in famous Chinese cuisines from stuffed steamed buns to Mu Shu Pork.

Yet despite the huge consumption, China's pork is largely supplied by small family farms, which has been one contributer and victim to the price fluctuations.

"About 60 per cent of Chinese pig farms are small ones that produce fewer than 50 hogs each every year," said Li Binglong, professor at China Agricultural University.

The small farmers, lacking market information, were easily tempted into overproduction in boom times but usually lacked the ability to tide over difficult times when the prices were pulled down, said Li.

According to a report by the Ministry of Agriculture, during the past two years when pork prices had been low, over half of the country's pig farmers reported losses, and many either closed farms or butchered their sow pigs to reduce production.

The result was that a 4.8 per cent decline in the live pig.

Monday, July 18, 2011
June Pork Exports Jump in Volume and Value
BRAZIL - Pork export volume in June was more than 12 per cent higher than in the same month of the previous year and the value of those exports was almost 30 per cent higher in US dollar terms.


According to ABIPECS, Brazil exported 52,752 tons of pork in June 2011, which is 12.4 per cent more than the same month last year. The average price per ton in US dollars – $2,884 – was 15.4 per cent higher than one year ago. The value of June's sales was just over US$152.1 million, which is 29.7 per cent more than in June 2010.

For the year to date, the volume exported was 266,852 tons, 1.1 per cent below the equivalent figure for 2010. The value of those export is up 11.2 per cent at just under $735.3 million. The average price is $2,755 per ton, which is 12.4 per cent above that of one year ago.

Pigs Increase in Fiji's North Division
FIJI - The existence of more than 13,000 pigs in the Northern Division has not attracted a popular market.


Senior Northern Agriculture officer Maikali Drauna said the demand for beef, goat and sheep was more popular than pork.

"We have a total of 13141 pigs in Vanua Levu but there is no market here and even the butchers don't sell pork except beef and goat," he said.

"There are various reasons like there are some butchers in Vanua Levu that are owned by Muslims and their religious beliefs prevent them from selling pork."

This, however, has not disheartened farmers, reports The Fiji Times Online.

Mr Drauna said they were encouraging farmers to continue to expand their piggeries to meet any future demand.

"There may be no market now but once we start commercial-based piggeries, there will be a demand because proper processing will be involved before pork is sold.

"The provinces of Cakaudrove, Bua and Macuata will each have a piggery and will be commercially-based ones.

"So if farmers continue to have their piggeries now and expand them, the supply to meet and increase in demand will be consistent."

Doods
Napier grass is a staple in goat raising,provides the roughage needed.Goats also enjoy variety and can be very selective in what they wish to eat.Is it possible to feed only forages and legumes without supplemented concentrates,yes,there are some who raise their goats without concentrates.They also provide some sort of energy source.What you feed your goats can and will affect their overall growth performance and general health.Not sure about side effects other than they might get very skinny and sick and die if you cannot meet their nutritional needs.