The Meat Site:

[Mustang Sally Farm]

Beef Supply Remains Tight; High World Prices Set to Continue30 December 2013 GLOBAL - The Rabobank Global Cattle Price Index has risen by six per cent since June, driven by lower-than-expected beef supply in the main exporting countries and strong Asian demand, according to a new report from the Rabobank Food & Agribusiness (FAR) Research and Advisory group.According to the latest Rabobank Beef Quarterly report, supply will remain tight, especially in the first half of 2014, driven by lower feed costs, induced herd rebuilding in the US and the strong export demand from Brazil and Argentina, which will continue to support strong prices. In 2014, Rabobank forecasts continued high prices while global beef supply is expected to rise only slightly, meanwhile China’s demand for imports are expected to increase. The recent announcements to (re-)open import markets will benefit beef trade going forward. Rabobank analyst, Albert Vernooij, said: “The Rabobank Global Cattle Price Index improved further in H2 2013, supported by both continuing strong Chinese import growth and lower-than-expected supply in the main export markets making cattle prices mainly positive.” The market has been unable to reach its full potential due to consumers’ resistance against high prices in the United States and the European Union, still two of the main beef markets. In addition, exchange rate movements have impacted the competitive position of exporters, resulting in Brazilian and Argentine beef becoming increasingly attractive and leading to a surge in exports. For the first six months of 2014, Rabobank expects further upside for the global beef market, with cattle prices remaining elevated in most regions. The main question in many regions remains where to source sufficient beef supplies. With herd rebuilding as the first priority globally, supported by improving climate conditions and moderating feed costs, global beef production will increase only slightly and is expected to decline sharply in key markets like the US. The main demand wildcard will be consumer resistance to high beef prices and the growing availability of competing animal proteins due to the improved margin outlook as feed prices tumble. “China’s importance and influence on the global beef market is set to continue to increase in 2014,” commented Mr Vernooij. “China’s imports of both frozen and chilled beef are expected to grow further, driven by the shortage of beef in the domestic market, reflected in record high retail prices. We believe that the value of the Chinese markets will grow in excess of 10 per cent annually over the next three years.” A number of recently announced trade deals will also come to bear in the beef market over the coming months and years, including commitments to reopen closed or impeded markets for beef imports and the Trans-Pacific Partnership, which set goals to improve trade between five beef-exporting countries. The removal of trade barriers will be positive for global beef trade and, combined with lower feed costs, should support renewed investment in the global beef industry.

[Mustang Sally Farm]

Mixed Year for Russian Meat Sector06 January 2014 ANALYSIS - The Russian meat sector has a mixed and varied year in 2013, with low margins in the first half of the year because of record feed prices and low prices for the main types of meat and in the second half of the year a rise in margins as feed prices reduced, writes Chris Harris.According to the Russian market analysts, the Institute for Agricultural Market Studies, IKAR, the weakest part of the sector by the end of the year was the poultry sector, because oversupply and low prices forced values down to rock bottom. Over the year Russia’s self-sufficiency in meat rose from 72 per cent to 76 per cent, although IKAR says that different methods of calculating self-sufficiency could make the figures a little arbitrary. However, Russia is gradually reducing its dependence on meat imports. In 2007, Russia was among the leading commodity importers in the world. Last year the country had fallen to fifth place. The leading exporter of meat to Russia is Brazil, which last year shipped 400,000 tonnes of meat into the country. However, neighbouring states such as Belarus are moving up the trading ladder, which last year exported 300,000 tonnes of meat products to Russia. Last year also saw a gradual fall in meat exports from Russia. Exports of meat including offal reached 50,000 tonnes last year with central and South East Asia being the main export markets. Despite the problems with African Swine Fever in the Russian pig herd, Russia saw a gradual rise in exports of pig meat to South East Asia, which last year were between 8,000 and 10,000 tonnes. The main destination for pig meat exports has been China and in particular Hong Kong. There was also a growth in finished meat product exports, which IKAR estimates might have reached 45,000 tonnes in 2013. More than 80 per cent of Russian meat product exports went to Kazakhstan. IKAR also estimated that domestic meat production is growing at a rate of 5.7 per cent a year, with a growth rate of 10 per cent in the pig sector and about six per cent in the poultry meat sector. However the cattle sector saw a drop in production of about one per cent. Beef IKAR said that the beef sector has undergone considerable structural changes, with the main source of beef coming from dairy cattle. However the livestock numbers are falling and the breeding herd and base for meat production is also shrinking. While Russia is seeing a reduction in the breeding base, there are growing numbers of crossbred beef cattle. Over the year, numbers of cross bred cattle rose from 1.56 million head to 1.9 million – a rise of 22 per cent. According to IKAR, the growth in these beef herds compared to the total cattle population will see a growth in beef production. However, about a third of the Russian beef market comes from imports largely from South America and Belarus. In the next two to three year IKAP says there will be a growth in high quality beef on the market, but total beef production is unlikely to grow. Pig Meat The pig sector is continuing to evolve, although economic growth in the sector is fairly static. Much of the development has been on existing farms and properties and there has been little greenfield build. IKAR says that by the end of 2013 production in all forms of production units will hit 2.81 million tonnes – a rise of 10 per cent. Growth in the corporate sector will reach 15 per cent. This rapid growth in the corporate industrialised production is also forcing a decline in the numbers of smallholdings, largely because of the problems surrounding African Swine Fever. Despite the success of domestic producers to increase production in Russia, the country remains a major importer. In 2013 the imported share of the Russian pig meat market was 29 per cent. However, growth in domestic production is expected to be between three and four per cent a year and this year growth in production is expected to reach more than 350,000 tonnes live weight. Poultry One of the main drivers in growth in the Russian meat sector is the growth in poultry meat production. However after a rapid growth in production over the last three years – a growth of 10 per cent compound average growth rate – the growth rate is expected to have fallen slightly, while still remaining high. IKAR said that production by the end of 2013 will have increased by six per cent, reaching 3.85 million tonnes deadweight. In 2014, IKAR predicts an increase in production of between 210,000 and 230,000 tonnes liveweight – a rise of 4.4 per cent. The poultry market in Russia is largely confined to corporate integrated intense production, which holds about 90 per cent market share. As domestic production has increased the share of the market from imported product has fallen to 13 per cent. Imports are largely supplied by the US, Brazil and Belarus. IKAR is also optimistic about the export potential for domestic Russian poultry production because of the peculiarities of pricing of parts of the carcase and because of market saturation. Chris Harris, Editor-in-Chief

[Mustang Sally Farm]

China Doubles Beef from Uruguay 10 January 2014 URUGUAY – China’s share of Uruguayan beef exports doubled in 2013, while the overall value and amount contracted seven and six per cent respectively.This leaves China second in the beef income list behind the EU and the biggest bulk buyer, according to the National Meat Institute data reported by El Observador. China’s share is now at 26 per cent of all Uruguayan beef exports, up from 8 per cent in 2012. The figures run up until 28 December 2013 and state the nation’s beef exports totalled 349,011 deadweight tons at an average of $3.700. Total earnings from Chinese sales were $258.9 million. The North American Free Trade Agreement (NAFTA) came second with the US accounting for 49,290 tonnes and, Canada with 16,061 tonnes and Mexico buying just 81 tonnes. The EU was third at in excess of 52,892 tonnes. The Russian Federation came fourth with 45,057 tonnes. Import data showed Uruguay bought beef primarily from Brazil. Over 8,900 tons of beef totalled $41.5 million.

[Mustang Sally Farm]

Silver Fern Farms Launches China Retail Range20 January 2014 NEW ZEALAND – New Zealand meat processor Silver Fern Farms’ branded retail range of lamb will only be a click away from customers shopping online in Shanghai from March.The retail range will be sold on-line via distribution and marketing partner NZ Focus who sell a strong stable of New Zealand made branded products in China. Silver Fern Farms Grant Howie said this is a significant move into the high-end retail category for the company, which has until now been a commodity product exporter into China. “Going into Shanghai with NZ Focus via the on-line channel, along with using a TV shopping channel puts us in a position where we are close to our consumers which is a real advantage.” Mr Howie added that China is Silver Fern Farms’ largest market by volume and value off the back of commodity exports of low-mid range lamb and beef cuts. This is the first time a premium consumer branded range will be exported. “This move will diversify our product range into China, as well as diversifying our channel to market. It is the first time we have put our retail products into China so selling on-line direct makes sense as we can get meaningful feedback from consumers on what they want from our products.” The online sales will be supported by promotions on a popular home direct TV shopping channel, online promotions and in-store cooking demonstrations.“The Shanghai market has consumers who look for quality products from New Zealand and they are taking up on-line home shopping in strong numbers. On-line shoppers in China are a small but developing segment of the market but as you can imagine with the size of China it’s got potential for considerable scale for us.” Mr Howie said. The lamb retail packs will be sold in frozen form; otherwise they are exactly the same as the retail pack products sold in New Zealand – right down to the English language packaging. “Authenticity of produce is a key concern of Chinese consumers. This is especially the case at the top end of the market where these retail packs are aimed. We take significant pride in being 100% made of New Zealand where our lamb is farmed free-range in a natural environment and our retail packaging makes a big point of that.” Silver Fern Farms has the only meat range being sold through NZ Focus. “NZ Focus is an excellent partner as they know how to sell the importance of our place – New Zealand, and they have many years’ experience on the ground in China.” Production for the range is underway and first sales are expected in March. It is envisaged the range will eventually be sold into high-end supermarkets in Shanghai.

[Mustang Sally Farm]

Glimpse of China's Meat Consumption
24 January 2014
Rabobank

CHINA - As the living standards of China's more than 1.3 billion inhabitants continue to rise, so does the country's demand for meat products, according to a new Rabobank report.

Consumers' tastes are changing, though, with poultry, beef and sheep meat becoming more popular, while pork’s share decreases, as consumers focus more on nutrition and food safety. This could bode well for meat producers willing to seize opportunities.

Growth Potential

According to Rabobank, while meat consumption in China is still rising, growth rates have dropped markedly since the 1990s. Today, growth is at a steady two per cent or so per year. However, the vastness of the Chinese market means that there is still a great deal of potential, with market growth shifting from purely volume to both volume and value growth.

According to a new report by Rabobank – A Glimpse at China's Meat Consumption: What is Changing? – supply volume growth is expected to maintain a two per cent growth rate over the coming decade. Market value, however, will see much faster growth, with an estimated annual rate of ten per cent during the same period, due to growing consumer affluence and a desire for safer, premium meat items.

Changing Tastes

Along with rising incomes, Chinese consumption patterns are changing, says report author Chenjun Pan. “Pork’s share of total meat consumption has decreased from 80 per cent in 1985 to 65 per cent in 2011, while the shares of beef, sheep meat and poultry have increased as these meats offer an alternative flavour and attractive value relative to pork, while also adding variety to Chinese consumers’ diets.

Beef and sheep meat are perceived as being more nutritious and have a ‘greener’ or safer reputation compared to pork due to different feeding methods. Poultry, meanwhile, is more popular in quick-service restaurants, which are growing rapidly in China.

Moreover, processed meats, such as ham and sausage, are serving as a replacement in traditional home-cooked dishes due to faster-paced lifestyles. The change in the diversity of meat consumption in China reflects the increasing demand for greater added value, variety and more health attributes.”

Conclusion

Chinese consumers have traditionally bought their meat from wet markets, which sell meat 'hot' (very recently slaughtered). However, things are changing. Urban consumers are increasingly purchasing perishable foods from supermarkets due to food safety concerns.

Despite this, wet markets still have many advantages, including lower pricing, greater variety and fresher products. In addition to the growth in supermarket sales, the retail channels of online and telephone shopping are also emerging in China.

According to Chenjun Pan, while increased meat sales through supermarkets will likely be an ongoing trend due to its perceived better traceability, she does not expect wet markets to be replaced in the foreseeable future, given the improvements and advantages mentioned above. Looking ahead, Pan believes the Chines market also offers great potential for value-added meat products.

Mr Pan said: “This will benefit meat players who are aware that consumption patterns are shifting from basic needs to greater added value, variety and health attributes. They are in a position to offer such products or can adjust their product strategy to meet emerging demands.”

[Mustang Sally Farm]

CME: High Cattle, Beef Prices Bullish for Pork Market
06 February 2014
 

US - Lean hog futures were for the most part higher on Tuesday despite the ongoing selloff in the cattle complex, write Steve Meyer and Len Steiner.

While nearby hog futures are well off their highs established last fall, contracts for spring and summer months continue to maintain notable premiums both to the nearby contract and also to where futures were trading a couple of months ago. A number of factors have underpinned hog values in the short term and also supported the outlook for higher prices going into the summer.
•The pork cutout was quoted last night at $91.52/cwt, up almost $2/cwt in the past five days. The rise in the cutout has come even as pork supplies are notably above year ago levels. Hog slaughter on Monday and Tuesday has been close to 430,000 head, which is a pretty big number for this time of year. In part this is because of production disruptions last week. Still, for the week we project hog slaughter at 2.180 million head, about two per cent higher than a year ago. And with weights up 3.3 per cent, pork production this week is expected to increase by over 5 per cent compared to last year.


•Hog weights have started to drop. This was expected given how high weights have been to this point but it implies producers and packers are getting more current with their hogs. The incentive is to bring weights up and as producers become more current, higher prices will be needed to maintain hog slaughter levels. Hog slaughter should hold around 2.1 - 2.15 million head per week into March, if the hogs and pigs report was correct. Lower weights are a signal that supplies may be tighter down the road.


•The number of PEDv cases is increasing and in mid January AASV was reporting well over 200 new cases per week. Last summer we had about a third that amount. The impact of these cases will not be seen until June, which is why June hogs are still hovering around $103. Noone really knows the numbers of pigs lost and the only way we will know is by looking back once the USDA inventory numbers are published.


•High cattle and beef prices are bullish for the pork market going into the spring. Retailers already are dealing with tremendous sticker shock from record prices of rounds and chucks. Pork is an alternative, especially going into the grilling season. Bacon prices are also lower, which should generate some interest. Already we are seeing ham prices move up as retailers prepare for Easter.


•There are reports that Russia will once again start buying US pork by late February. This follows Russia announcement that they will stop buying EU pork. Russia relies on imports to cover about 1/3 of their domestic needs and EU accounts for about 60 per cent of imports. In the past Russia has been an important market, especially during the spring and summer. Add this to the list of bullish news for pork.

[Mustang Sally Farm]

Exports Offer Great Opportunity for British Agriculture
14 February 2014


UK - Meat and dairy exports present a huge opportunity for the UK food sector particularly with new markets opening up in countries such as India and China, writes Chris Harris.

Junior agriculture minister George Eustice, speaking at the AHDB Outlook Conference in London this week said that exports offer great opportunities for British agriculture particularly with a growing global population demanding more food.

He said that in the last five years beef exports had doubles with more markets opening up.

However, the shadow of BSE still looms over British beef in some markets and the UK veterinary exports have been working hard to “clear the hurdles and clear the barriers”.

Mr Eustice said he was hopeful on new opportunities for exports into regions such as the Middle East as well as Japan and, for the pork sector, the markets were now emerging outside of the EU in countries such as China.

On the domestic market, Mr Eustice said that consumers are now asking more questions about the origins of the food they eat and supermarkets are taking note of the consumer demand to know where the food comes from.

To this end they are changing their approach and offering more locally sourced foods so that consumers do not have to only visit the farm shop to buy products that are locally produced.

However, he added that food security does not only mean domestic production, but it includes free markets and trade.

With a growing population, the UK is going to have to produce the food itself and cannot rely on imports, he said.

He added that it will mean producing food on less productive land and also producing food more sustainably.

Mr Eustice said that to ensure British farming is supported, he wants to see more government departments sourcing British food.

“If we want people to support the farming industry, it is vitally important to get government departments to buy British food,” he said.

“If we get the procurement right, it could be a big boost to the industry.”

Mr Eustice added that the government is also supporting new agricultural technology and it has pledge £100 million for a new AgriTech fund., which is building centres of excellence for agricultural technology around the UK.

[Mustang Sally Farm]

Meat Prices Stable But Food Price Index on the Rise10 March 2014 GLOBAL - The FAO Food Price Index rebounded in February, up more than two per cent from January as the result of increased prices for sugar, oils, cereals and dairy products; meat prices fell marginally compared to the previous month. FAO Food Price Index The FAO Food Price Index averaged 208.1 points in February 2014, 5.2 points, or 2.6 per cent, above a slightly revised index for January but still 2.1 per cent less than one year ago. Last month’s rebound, the sharpest witnessed since mid-2012, resulted from strengthening quotations of all the commodity groups making up the index, except meat, which fell marginally. The products that have incurred the strongest rises since last month were sugar (+6.2 per cent) and oils (+4.9 per cent), followed by cereals (+3.6 per cent) and dairy (+2.9 per cent). The FAO Cereal Price Index averaged 195.8 points in February, up 6.8 points, or 3.6 per cent, from the previous month and the strongest rise registered since July 2012. Last month’s price bounce mainly mirrors concerns over wheat crops in the United States, a brisk demand for coarse grains for both feed and biofuel and strong Japonica rice prices. Yet, cereal prices remain, overall, 18.8 per cent below their level in February last year, a clear sign that the world supply/demand situation has eased considerably compared to last year. The FAO Vegetable Oil Price Index averaged 197.8 points in February, up as much as 9.2 points (or 4.9 per cent) from January, sustained primarily by firmer prices for palm oil and soy oil. The palm oil market strength mainly reflects concerns over dry weather in some major production areas in Southeast Asia, together with buoyant demand worldwide, including from biodiesel producers. As for soy oil, quotations rose on fears that unfavourable weather in South America could negatively impact soybean crops. FAO Food Commodity Price Index The FAO Dairy Price Index averaged 275.4 points in February, a rise of 7.7 points, or 2.9 per cent, over January. Demand for all dairy products remains firm, especially from North Africa, the Middle East (SMP and WMP) and the Russian Federation (butter). Limited supplies have lent support to prices, with the index currently standing 31.3 per cent above its level in February 2013. Mild weather in some regions of Western Europe has provided the basis for a strong start to the 2014/15 season, which will only peak in April-May. Meanwhile, export supplies in Oceania remain limited. The FAO Meat Price Index averaged 182.6 points in February, only 0.5 points below its revised January level. In general, prices were little changed for the various categories of meat. Looking at longer-term trends, compared to February 2013, the reduced cost of feed has contributed to some decline in prices for poultry and pig meat. On the other hand, for the same period, bovine meat prices are at almost the same level, while limited export supplies have lent support to sheep meat prices. The FAO Sugar Price Index averaged 235.4 points in February, up 13.7 points, or 6.2 per cent, from January. Following a three-month decline, sugar prices recovered in late February, prompted by concerns of crop damage from dry weather in Brazil, and recent forecasts pointing to a potential drop of output in India.

[Mustang Sally Farm]

UK Meat Consumption in Decline17 March 2014 UK - Rising industry costs and inflation have led to market growth of 6.9 per cent between 2012 and 2013, according to Meat and Meat Products 2014, a market report from market intelligence group Key Note.Yet these factors disguised a gradually declining demand for meat in the UK, based on increasing prices and the exposure of the horsemeat scandal in early 2013. With regard to the former, the retail cost of meat for UK consumers has been has been rapidly increasing significantly above the standard rate of inflation, since the recession in 2008. Wages have not risen to the same extent and, as such, many consumers can no longer afford to eat meat on an everyday basis. Many more consumers are being forced to trade down from prime cuts of fresh meat to processed and lesser-quality products, such as minced beef. In a Key Note commissioned survey, conducted in January 2014, 21.5 per cent of meat-eating respondents claimed to be reducing their meat consumption to save money because of the price of meat. However, this is not yet being reflected in total market value because of inflation. The price of beef — the second most popular type of meat in the UK after chicken — has increased particularly dramatically in 2013, in what is becoming an international crisis. Insufficient supply to meet increased global demand for beef, driven by dramatically developing nations such as the People’s Republic of China (PRC), has pushed the price of beef up around the world. Beef is gradually becoming a luxury food item in the UK because of this, with many consumers unable to afford it even as a treat. Of course, to an extent other types of meat have benefited from this development, with sales of lamb, pork and poultry increasing in 2013, but these items are also increasingly expensive, albeit to a lesser extent, forcing some consumers to simply eat less meat altogether. The horse meat scandal has also contributed to this gradually decreasing demand, despite the fact that the long-term effects have not been as dramatic as many first feared. A large number of consumers altered their meat-eating habits in the immediate aftermath of the scandal, especially in relation to ready meals and processed red meats. However, slashed prices in these sectors, combined with the revelation that the horsemeat was not in any way harmful to humans, have encouraged consumers back into old eating habits as time has passed. Nevertheless, in the same Key Note commissioned survey, which was taken 12 months after the scandal, 12.3 per cent of UK consumers still claimed to be reducing their consumption of red meat because of negative media in the previous 12 months. While meat and meat products remain extremely popular in the UK, driven by increased demand for high quality and ethically-treated British meat, there is a growing minority of consumers who are eating less meat or avoiding it altogether. This is partially based on negative media and partially because of the fact that vegetarianism and veganism are increasingly socially acceptable. In the coming five years, this decline in consumption looks set to continue, but so too does inflation, which will continue to disguise this emerging negative trend. Key Note therefore forecasts market growth of 8.3 per cent between 2014 and 2018.

[Mustang Sally Farm]

US Meat Export Federation Makes Use of Social Media
21 March 2014
 

US - It has not taken long for the social media phenomenon to sweep around the world, and while it is a global tool, it has local applications, making it ideal for an organisation like the US Meat Export Federation (USMEF) that supports US beef, pork and lamb exports around the world, but tailors the message to each individual market.

“Social media is insanely popular and is incredibly powerful – and cost-effective – if used properly,” said Dan Halstrom, USMEF senior vice president of global marketing and communications.

“USMEF’s marketing team around the world has adopted many of these tools for our use, timing our rollout of these tactics to keep us in step with the local conditions and, ideally, a step ahead of our competitors.”

Consider these facts about just a few of the leading social media channels:
•Facebook has 1.23 billion monthly active users – up 16 per cent over last year - 4.5 billion “likes” are generated daily
•Twitter reports it has an estimated 1 billion registered users - 184 million active monthly Twitter users
•YouTube has more than 1 billion unique users each month. More than 6 billion hours of videos are watched on YouTube monthly – almost an hour for every person on Earth - 80% of YouTube traffic comes from outside the US

USMEF has followed the launch of the key social media channels closely, often using them as an efficient method for attracting the attention of the youthful early adopters who also have an interest in high-quality red meat products. USMEF offices also have relied on social media when traditional channels were either too expensive or unwilling to carry positive messages about American products.

First steps in South Korea

In one of the most tech-savvy countries on earth, USMEF-South Korea led the way for the organization’s social media engagement in late 2007. Faced with 100,000 protesters in the streets of Seoul angry about the government’s decision to readmit US beef after a BSE-related absence, the USMEF marketing team began cultivating independent food bloggers to write about the products when other media outlets wouldn’t even accept paid advertisements for fear of inspiring consumer boycotts.

“We had to communicate with consumers through a different channel than conventional media to turn around negative consumer sentiment,” said Min Park, USMEF-Korea public relations manager.”

To ensure that it did not arouse the potentially volatile Korean consumer base, USMEF waited until spring of 2013 before launching its Facebook presence. The most active social media site in Korea, Facebook is popular among consumers in the 20 to 29 age demographic, where 93.5 per cent of consumers use a smart phone.

Twitter, on the other hand, is more of a news communications tool in Korea with postings on politics, religion and social issues, so it has not been a focus for the USMEF-Korea team.

The approach in Japan

The USMEF team in Japan, however, has adopted a broader range of social media tools in an environment that has been very receptive to US red meat. As in Korea, bloggers were the first channel for USMEF to reach out to consumers in Japan, working closely with homemaker-communicators who found a niche with a very receptive audience.

“Bloggers are a very powerful tool,” said Tazuko Hijikata, senior manager of consumer affairs for USMEF-Japan. “We began working with several bloggers as long as six years ago, some of whom have 5,000 visitors reading their blogs every day.”

She noted that a single update to the “Enjoy Family Life” diary-style blog drew nearly 10,000 users to the USMEF website.

Hijikata’s team is planning several Facebook campaigns in the coming year, and also has taken advantage of a growing interest in Twitter, including a creative program to encourage consumers at Japanese restaurants that serve US beef to invite their friends to join them. The Twitter campaign, which offered modest rewards of packages of US beef as incentive, enticed more than 10,000 consumers to tweet their American beef dining plans to family and friends.

“When friends read the tweets, they see that someone they trust is publicly announcing that they are enjoying US beef, which supports both the image of US beef and the restaurant offering it on the menu,” said Hijikata.

Yet another channel, YouTube, is being utilized to post how-to videos for fresh meat preparation. One such video for US pork garnered more than 245,000 views in one month.

China

The world’s biggest concentration of red meat consumers is rapidly evolving into the world’s social media hub, and USMEF-China is an active participant in the evolution. With the absence of US beef from this market of 1.3 billion consumers, American pork is the focus of a diversified social media program.

“Social media has developed very fast and, as mobile devices become more and more popular, social media has quickly become one of the most important public relations tools in China,” said Joel Haggard, senior vice president for USMEF’s Asia-Pacific region. While Twitter, Facebook and YouTube are banned in China, the country remains very active in social media.

Educating distributors, chefs and gourmets was the original goal in China as USMEF began promoting cooking ideas, recipes and restaurant recommendations through the Weibo channel in late 2011, but that audience quickly grew to include consumers. The site took off in 2012 and with 77 per cent growth over the past two years it now serves nearly 130 million active users. But, just as MySpace was eclipsed by Facebook in the US , Weibo has yielded its top spot among Chinese social media followers to Wechat, which claims an estimated 600 million users.

USMEF-China has utilized Wechat since mid-2013 much as it did Weibo earlier. USMEF-China also has developed its own US Meat App for smart phones to provide consumer information and education.

Looking ahead, Haggard and his team are targeting restaurant ranking websites, such as Dianping.com, which younger consumers use in larger cities to determine where they want to dine. Promotions with websites of this nature can direct diners to restaurants that serve US pork.

European Union

The European Union is a high-value market but not a large outlet for American exports, due largely to its powerful domestic pork industry and its beef quotas and restrictions on hormone use in cattle. The USMEF team in the EU, however, remains committed to sustaining a consistent profile for US red meat products, with a current focus on beef since most US pork going to the EU is destined for the processing sector.

Late in 2013, USMEF-EU launched its Facebook page, The Marbled Meat Club, to familiarize EU audiences – focusing on chefs and the food trade – with the quality attributes of US red meat as well as cooking tips, pairings with wines and other helpful information. Similarly, USMEF-EU has an active presence on YouTube with instructional videos, such as this piece by celebrity chef Jay McCarthy on how to cut a prime rib.

“It is our long-term strategy to raise awareness of US red meat in the trade and among chefs,” said Felipe Macias, USMEF representative based in Spain. “The EU is a big market of 28 countries, so we believe social media is the right tool to reach our target audience.”

Middle East

The Middle East is an important export market for US beef. The fourth-largest volume destination, including the top market (Egypt) for beef variety meat, the region also includes the United Arab Emirates, an up-and-coming destination for business travelers and tourists. It also is one of the fastest-growing regions in the world for social media use.

“Social networking is the most popular online activity across the Middle East and North Africa, with almost 90 per cent of consumers reporting they use it daily,” said Amr Abd El Gliel, USMEF representative based in Cairo. “Facebook only opened its first Middle East office in May 2012, and already it’s the most popular social media site in the region.”

Social media’s popularity surged in the Arab Spring as a primary communications channel, and there are more than 90 million consumers in the region with Internet access – about 56 million of whom follow Facebook, according to socialbakers.com, a regional Internet analytics firm. USMEF recently launched its inaugural Middle East Facebook presence, and already boasts more than 115,000 “likes” for its helpful beef cooking and handling information.

“The current number of youth in the Middle East region is unprecedented – nearly 179 million,” said Amr. “Nearly one in three people living in the region is between the ages of 15 and 24, and it is the youth who are shaping the future of the consumer market. They are among our targets, along with chefs, retail meat case staff, homemakers, importers, distributors and retailers.”

Mexico

Another more recent entry into the social media process is USMEF-Mexico, which launched its Facebook site just last month. As the overall use of the Internet – and more specifically of smart phones – is growing steadily, the Mexico team is making corporate chefs its initial target for new Facebook and Twitter initiatives.

Taiwan

Social media is gradually gaining momentum in this island nation, and while the domestic meat industry has not pursued social media channels, USMEF-Taiwan has had a Facebook presence for nearly four years, using the site to promote nutritional information, recipes and restaurants that carry US red meat and cutting videos for the trade.

Beyond social media

While social media has proven an important and cost-effective tool, USMEF’s marketing teams are already looking at the next generation of Internet-based tools. The USMEF-China team has taken an aggressive approach. Earlier this month, it collaborated with China’s business-to-business market leader, TMall.com, to introduce eight US pork items with guaranteed nationwide delivery in less than 48 hours. The site drew an enormous number of viewers in the first few hours of operation, and a USMEF promotion, sponsored through the Pork Checkoff, attracted more than 2,000 applications in the first hour for a chance to win samples of US pork.

There are more than 600 million Chinese Internet users, up from 45 million in 2002, and the online population is growing about four per cent per year, according to a McKinsey Global Institute report. That creates a huge bulls-eye for Internet marketers. In fact, China’s TMall set a record last year when it sold $5.7 billion of goods and services in a single 24-hour period. The site sells brand-name goods from an estimated 70,000 global companies including Apple, Nike, Gap and Adidas.

“What we are seeing in China is the tip of the iceberg,” said Halstrom, who noted that a report by the Pew Research Center shows 37 per cent of the population in China owns a smart phone, but there are other markets outside North America, the EU and the top Asian economies that also boast high smart phone usage, including Lebanon (45 per cent), Chile (39 per cent), Jordan (38 per cent), Malaysia (31 per cent) and Venezuela (31 per cent).

“The future of food sales of all types, and red meat in particular, will be closely intertwined with the Internet and social marketing,” Halstrom said. “Every market reacts at its own pace, but they are all moving in the same direction.”

[Mustang Sally Farm]

ProCured - Optimising Salting Process in Hams04 April 2014 SPAIN - A new research project from a Spanish meat technology research institute is aiming to produce healthier ham products with a lower salt content and a better quality.The ProCured project aims to optimise the salting process to obtain meat products that are healthier and have a standardised salt content. The production of salt-cured meat products is of great relevance for the European meat industry. The protected designation of origin (PDO) and the protected geographical indication (PGI) in many of these products (e.g., salt-cured hams), is indicative of healthy, natural, and high quality foods. However, due to the high amount of salt in these products and the effects of sodium intake levels on risk of development of cardiovascular disease or hypertension, the reduction of the salt content in salt-cured meats is essential to improve public health. In this context, salt-cured ham producers have been showing increased interest in new technologies that allow developing salt-cured products with lower salt content. The aim of the ProCured project, with the participation of IRTA (Institute for Agri-Food Research and Technology) from the Department of Agriculture of the Government of Catalonia, is to develop a new system to control the salting stage during the production of salt-cured hams. The proposed solution is the “on the line” inspection of the hams before the salting process via non-destructive techniques, which allows quantitatively determining the properties in the ham that affect their final salt content. Considering these variables and using a neuronal network for processing the information, the control system will establish the optimal salting conditions for each ham. This system represents a benefit for European small and medium-sized enterprises that produce salt-cured hams, providing a technology that will allow them to reduce the variability regarding salt content in their product, thus increasing the homogeneity, allowing producing healthier salt-cured hams with lower salt content in accordance with Regulation 1924/2006. The ProCured project consortium includes ham producers (GALLONI, CENT), who will validate the technology, and several leading small and medium-sized enterprises of the services and machinery sector for the meat industry (LENZ, ROSER, STEVIA, STRASSER), who will develop a pre-commercial that will be available for the companies at the end of the project. Furthermore, the project has the scientific and technological support of internationally recognized research centers (ATEKNEA, IRTA, SSICA).

[Mustang Sally Farm]

CME: Dramatic Rise in Beef, Pork Products
11 April 2014
 

US - One of the puzzles for end users, traders and other participants in the beef and pork market is the dramatic rise in prices for some products in the first quarter of 2014, write Steve Meyer and Len Steiner.

For instance, the price of 72CL pork trim was quoted by USDA at almost $140/cwt on Tuesday, a 170 per cent increase over year ago levels. Ground beef, beef rounds and other beef products also have shown significant spikes in value in the last three months. What accounts for such moves in price?

Red meat supplies are down but not enough to justify such prices. Weekly hog slaughter in March was down 6.8 per cent but the heavier hog carcass weights offset almost half of that decline. According to USDA, weekly pork production for the five weeks ending 5 April was down only 3.3 per cent from a year ago. Fed cattle slaughter was lower in February but March and early April slaughter has been about 3.6 per cent below year ago levels.

Simply looking at slaughter numbers and weekly beef and pork output will not explain why prices for some items have more than doubled vs. last year. The issue of stockpiling has been discussed. Fearing a shortage of supplies in the spring and summer, market participants sought to build inventories in a hurry. The stockpiling theory gets some credence given the practice of processors in pricing product for delivery in the current month by using prices in the previous month.

Over the course of the year the pricing evens out but in times of expected shortages and big price increases, some end users may have sought to accelerate purchases that will be priced off a lower base. This probably does help explain some of the more dramatic moves we have seen. The price of 50CL beef trimmings, a key benchmark for fat trim values, jumped to as high as $163/cwt in late March, a $40 premium to the highest price ever paid for this item, only to drop to $115/cwt a couple of weeks later. Panic buying can produce crazy results.

But there is more we think to the dynamic in the market and it has to do with the shift towards booking an increasing share of sales on a formula basis. Formula buying is good for buyers as they don’t need to spend all their day hitting the phones and trying to bid on product. It is good for packers as they don’t need as big of a sales staff in order to clear the market.

However, as volumes in the spot market decline, price discovery becomes increasingly difficult and prone to breakdown. It is a point that Steve Meyer discussed at length in a 2013 presentation (link here). Formula buying also appears to have added to market volatility, with much bigger price spikes than in the past. Because of Mandatory Price Reporting, we now have visibility of beef trades for a few years while in the case of pork, data on formulated sales only became available in late 2013 (see charts).



The data shows that the supply of beef and pork available in the spot negotiated market has been drifting lower while formula sales are either steady (beef) or higher (pork). Looking at the pork data, the supply of pork in the spot negotiated market in March was down some 30 per cent compared to a year ago while the supply sold through formulated sales was up 19 per cent. So when you see spikes in price of 50 per cent, 60 per cent or 170 per cent, it is not because the total supply of pork is down 20- 30 per cent (to get those price flexibilities), it is because the supply available to those bidding on spot supplies became extremely thin.

As slaughter numbers declined in Q1, packers had to fill standing formula orders and less product was available in the spot market. Regular spot buyers had to bid on a much smaller supply and paid record premiums to get the supply needed to run production. The risk here is that the price signals to the consumers are for dramatic supply shortages and the unintended consequence is that quantity demanded may fall much more than current supply conditions warrant— hence the risk of extreme price volatility.

[Mustang Sally Farm]

China in the Next Decade: Rising Meat Demand and Growing Imports of Feed
Friday, April 18, 2014


USDA Economic Research Service


There are signs of robust demand for meat and feed grains in China as the country moves into a new stage of development, according to James Hansen and Fred Gale of the USDA Economic Research Service (ERS) in 'Amber Waves'.

Each year, USDA prepares 10-year projections of global agricultural supply, demand, and trade. In each projection, China – with its large population, rapid economic growth, and anticipated dietary change – is a key component. Since at least the 1980s, agricultural analysts have anticipated that China’s dietary transition to a more meat-rich diet would have important impacts on world agricultural markets.

The latest USDA projections again foresee dietary transition in China. Past projections overstated the pace of change but there are signs of robust demand for meat and feed grains as China moves into a new stage of development.

Past Projections Over-stated China’s Grain Demand

Until the late 20th century, the Chinese population obtained over 90 per cent of its calories from carbohydrates like rice, wheat, millet, beans and tubers. Many observers expected this to change as China began to emerge from poverty and isolation in the 1980s; the expectation was that rising living standards would lead to increased demand for livestock and feed grains that would outstrip China’s production capacity. In a 1996 report, ERS compiled a dozen projections of Chinese grain imports in the 21st century by various analysts and institutions that estimated totals ranging from 20 to 50 million metric tons (mmt). One prediction even warned that China would need to import hundreds of millions of tons of grain.

Those projections overstated China’s need for grain imports during the first decade of the 21st century. China was a net exporter of grains until 2007. China imported modest amounts of premium rice from Thailand and imported wheat to replenish state reserves during 2004-05. The projections also failed to predict China’s enormous imports of soybeans, which grew from $75 million in 1995 to $38 billion in 2013.

There are now signs of a surge in China’s demand for imported grains, much of it from the United States. During 2013, imports of cereal grains rose to 18mmt. That total includes 3mmt of US corn and 4mmt of distillers dried grains with solubles (DDGS), a co-product of US corn ethanol production that Chinese livestock producers use for feed.

The United States supplied 70 per cent of China’s wheat imports. During 2013, China became a major importer of sorghum from the United States and Australia for the first time.



Tighter Labour and Feed Supplies Bring Structural Change to Livestock Sector

During past decades, China took advantage of abundant non-grain feeds and under-utilised labour resources to produce large increases in livestock output with little demand for feed grains. Impoverished farmers were eager to earn higher incomes by raising livestock. Small-scale 'backyard' farmers relied on widely available crop residues, wastes, vegetation and other biomass for feed, while under-employed family members provided the labour to collect and prepare feedstuffs and tend animals.

Beginning in the 1980s, officials enacted measures to promote livestock production, including support for development of a feed-milling industry and subsidised imports of more productive animal breeds. Indicators of livestock productivity, including feed conversion ratios and days on feed, improved markedly.

Soybeans – China’s largest agricultural import item – escaped the attention of most 1990s-era projections but played a role in the country’s livestock boom. Imported soybeans provide soybean meal used for animal feed; the increased supply provided protein that improved animal diets and increased productivity in the livestock sector. Importing soybeans allowed Chinese farmers to specialise in producing corn, which produces higher yields and net returns than soybeans. Corn became China’s largest single crop in 2013.

There are signs that China’s demand for feed grains has reached a turning point as a tightening labour supply and rising feed costs force significant structural change in China’s livestock sector. Over the last five years, economic growth has absorbed surplus rural labour and rural wages began rising 15 to 20 per cent annually.

Labour scarcity, animal disease pressures and rising living standards are prompting rural households to abandon 'backyard' livestock production. More recently, livestock production has increasingly become a specialised farm enterprise, with farmers focusing on maximising growth of animals, and substituting commercial feed for wastes and forages gathered from the countryside.

Rising feed demand has pushed up costs and motivated feed mills and livestock producers to explore new feed ingredients like distillers dried grains and sorghum – both imported from the United States.

More importantly, China has switched from being a corn exporter to a consistent importer of 3 to 5mmt annually since 2009. In 2014, Chinese officials announced a new strategic approach to food security, which tacitly acknowledges a need for imported feed grains. The strategy still stresses the importance of self-sufficiency, but it allows for 'appropriate imports' and focuses concern on food grains – rice and wheat – while placing a lower priority on corn self-sufficiency.

China is now attempting to move into a new stage of economic development that will feature continued urbanisation and more attention to improving living standards for the entire population. Urbanisation and rising living standards could prompt further dietary change, while the transition to larger-scale, capital-intensive modes of farming will likely promote use of feed grains in place of traditional locally-sourced feeds.

Food safety incidents, disease epidemics, and attention to waste management provide further impetus to push production away from traditional 'backyard' operations.

USDA Projects Rising Meat and Feed Demand in Next Decade

USDA projections show a continuation of China’s robust economic growth over the next 10 years, although at a slower rate than in the previous decade. China’s population is expected to grow at a slow rate of 0.3 per cent annually, but will increasingly reside in cities and towns. The urbanization rate has surpassed 50 per cent and is expected to increase to over 63 per cent by the 2023/24 marketing year.

Rising living standards and availability of a wider variety of foods from supermarkets, restaurants, and cafeterias for an urbanised population will promote dietary change and create opportunities for new foods to gain a foothold in the Chinese market.

China’s meat consumption is expected to rise at a pace similar to the trend over the past decade. Pork plays a central role in China’s meat economy – China accounts for half of world production and consumption – but poultry is gaining in popularity, largely because it is cheaper than pork.

Restaurants, fast-food chains and cafeterias play a key role in diversifying meat consumption since many feature specific kinds of meat or chicken. In particular, beef and mutton are important parts of popular hot pot, kebabs and other types of ethnic cuisine that are becoming popular among the broader population.

Per-capita pork consumption is projected to rise 6.6kg by 2023/24, which is more than three times the increase in poultry (2.7kg) and more than seven times the increase in beef (0.85kg). However, poultry is projected to account for an increasing share of China’s meat consumption, with per-capita consumption rising 2.4 per cent annually during the next 10 years, compared to a 1.5 per cent annual growth rate projected for per-capita pork consumption.

The model does not account for fish and shellfish, an important source of protein in Chinese diet and increasing.



China produces nearly all of its own meat. Its output of pork, poultry, and beef rose from about 20mmt in 1986 to over 70mmt in 2012, with the fastest growth during the 1980s into the early 1990s. USDA projects an increase in pork, poultry and beef output to 90mmt by 2023/24, an increase of about 30 per cent.

Since about three kilos of feed are needed to produce each kilogram of meat, feeding a large and increasing population of animals will be a growing challenge. Growth in feed consumption has accelerated recently, and as China’s livestock farms transition to a more concentrated mode of operations that uses commercial feeds more intensively, USDA projections expect this faster pace to continue. China’s combined use of corn and soy meal for animal feed is expected to rise from 200mmt to over 300mmt over the 10-year projection period. Chinese animals also consume a variety of other grains, protein meals, bran, and hulls from grains, and growing use of these commodities is expected to support the expansion of meat output.

USDA anticipates that China’s soybean and corn imports will continue to rise. China’s soybean imports are expected to reach over 70 per cent of global soybean imports by 2023/24, while China’s corn imports are projected to rise to 22mmt by 2023/24. China will rely on imported soybeans for most of its soybean meal supply, but imports are expected to account for less than 10 per cent of corn consumption by 2023/24.

China is expected to account for 40 per cent of the rise in global corn trade over the coming decade – USDA anticipates that the rapid growth will make China the leading importer of corn by 2023/24. The United States will likely be the main supplier of China’s imported corn but other countries including Ukraine, Argentina and Brazil will also play a role. The United States is also a key soybean supplier, accounting for over 40 per cent of China’s soybean imports in most years.

China’s imports of corn will likely benefit US producers. The record US harvest in 2013/14 caused prices to fall, and projections anticipate that US corn prices will continue to fall through 2015/16 before they begin to recover. More robust demand from China could stem the decline and support an earlier recovery of US corn prices.

 



Constraints Could Slow Growth of Meat Output...

China’s livestock sector is under pressure from rising costs, disease, environmental regulations and resource constraints. China’s meat imports could rise even further if production cannot sustain its current pace of growth, shifting from feed ingredient imports to meat imports, a pattern already being followed by some of its East Asian neighbours.

The predominance of pork in China’s meat production and consumption is a legacy of traditional farming systems that are becoming problematic as the economy urbanises and modernises.

Facing land scarcity, most rural families traditionally raised pigs as part of a diversified small-scale farming operation. Pigs could consume a variety of wastes, vegetation and forages, and they supplied manure for use as organic fertiliser for grains and other crops. Chinese statistics report that 700 million pigs are slaughtered annually – one for every two Chinese people.

Traditional backyard farming systems are now being replaced by larger scale farms that use grain-based feeds but pigs still predominate. Manure is seldom used as fertiliser now, and its disposal has become a major environmental concern. Swine disease epidemics are a constant threat, and the disposal of diseased carcasses became a concern when thousands of dead pigs were discovered floating in Shanghai’s Huangpu river in 2013.



*
 "Chinese statistics report that 700 million pigs are slaughtered annually – one for every two Chinese people."


Many local officials who were rewarded for promoting pig-production in earlier decades now view pig farms as a nuisance. Regulations and land use plans increasingly confine pig farms to designated areas distant from human settlements, roads, markets and waterways.

Other livestock species are also encountering constraints as their numbers grow; feed resources are limited and costs are rising. Grasslands and pastures are scarce and often degraded, limiting the supply of beef, sheep and dairy cattle. Traditionally, most beef was supplied from draught animals but their numbers are declining as mechanisation increases, and poultry production has been disrupted by avian influenza epidemics.

Abuse of feed additives and pharmaceuticals has also been a rising concern among Chinese consumers.

...Leading to Larger Meat Imports

While USDA projects robust increases in China’s meat production, meat imports are also projected to rise. Pork imports are expected to rise from 750,000mmt to 1.2 billion metric tons. The United States, Canada and the European Union are the main suppliers of pork and breeding stock to China.

Consumption of ruminant meats like beef and mutton was traditionally concentrated in regions of western China where grasslands were abundant. As the broader population gains a taste for these meats, supply is falling behind demand and prices are soaring.

China will continue to produce nearly all of its own meat; however, imports of beef have grown sharply since 2010 and are expected to rise to over 750,000mmt by 2023/24. Despite this increase, imports will account for only three per cent of China’s meat consumption by the end of the decade. China’s beef imports come primarily from Oceania and Latin America, as China’s market has been closed to US beef for the past 10 years due to bovine spongiform encephalopathy (BSE) concerns.



Policy Changes Underway Could Bring a Different Outcome

USDA’s projections of future supply, demand and trade are based on current conditions and available data. Actual outcomes could be different, with many structural, institutional and policy changes on the horizon.

China’s volatility was evident during 2013 when its livestock sector was hit by a weaker demand for meat, an avian influenza epidemic, revelations of pharmaceutical abuse on chicken farms and declining hog prices. Commercial feed production declined 1.8 per cent after years of rapid growth.

Policy adjustments in China make it difficult to forecast the country’s demand for imports. China’s price supports contributed to the surge of grain and oilseed imports during 2012-13 by lifting domestic prices above world prices. In early 2014, officials announced that price supports for soybeans and cotton would be eliminated, a move that could motivate more farmers to abandon these crops in favor of corn.

During 2012/13 and 2013/14, record corn harvests and a slow-down in demand put downward pressure on Chinese corn prices. Large reserves of corn were built up as the Government supported prices, and large domestic supplies could slow China’s demand for imported corn for several years. The recent build-up of grain inventories was not anticipated in the baseline projections, and could slow China’s future corn imports, similar to what happened in the late 1990s.

USDA officials are working with counterparts in China to ensure that new Chinese regulations, standards and policies do not disrupt trade. Discussions about lifting a decade-old ban on US beef over BSE concerns and accommodating new Chinese inspection and certification requirements for suppliers exporting to China are currently taking place.

Other important issues include achieving a more transparent process for approving imported genetically modified crops in China and restoring broiler chicken trade that was disrupted during 2010-13 by a Chinese anti-dumping action.

April 2014

[Mustang Sally Farm]

Cherkizovo Poultry, Pork and Grain Sales Rise
25 April 2014

RUSSIA - Russian integrated meat and fodder producer, Cherkizovo has seen sales in its pork, poultry and grain divisions rise in the first quarter of the year, while meat division sales were flat.

Poultry Division

Sales volume in the Poultry division for the first quarter of 2014 increased by 13 per cent to 90,506 tonnes of sellable weight compared to 80,370 tonnes in the first quarter of 2013 including 1,651 tonnes of sellable weight produced by LISCO Broiler since the day of the acquisition of by Cherkizovo on 24 March 24.

The average price in ruble terms increased by one per cent to 77.90 RUR/kg from 76.92 RUR/kg in the first quarter of 2013.

Compared to the price in the fourth quarter of 2013 of 78.05 RUR/kg, the price in the first quarter of 2014 was almost flat.

The average price for the poultry in dollar terms decreased by 12 per cent to $2.23/kg in the first quarter of 2014 from $2.53/kg in the first quarter of 2013.

Compared to the price in the fourth quarter of 2013 of $2.40/kg, the price in the first quarter of 2014 decreased by seven per cent due mostly to the weakening of the ruble against the US dollar.

Pork Division

Sales volume in the Pork division in the first quarter of 2014 increased by 17 per cent to 40,352 tonnes of live weight, compared to 34,429 tonnes in the first quarter of 2013.

The average price in ruble terms increased by 28 per cent to 73.55 RUR/kg in the first quarter of 2014 from 57.36 RUR/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 71.32 RUR/kg, the price in the first quarter of 2014 increased by 3 per cent.

The average price in dollar terms increased by 12 per cent to $2.10/kg in the first quarter of 2014 from $1.89/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of $2.19/kg, the price in the first quarter of 2014 decreased by four per cent.

Meat Processing Division

Sales volume in the Meat Processing division was almost flat at 29 670 tonnes in the first quarter 2014 (1Q 2013: 29 442 tonnes).

The average price in ruble terms increased by 4 per cent to 152.52 RUR/kg in the first quarter of 2014 from 147.16 RUR/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 156.32 RUR/kg, the price in the first quarter of 2014 decreased by two per cent.

The average price in dollar terms decreased by 10 per cent to $4.36/kg in the first quarter of 2014 from $4.84/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of $4.80/kg, the price in the first quarter of 2014 decreased by nine per cent due mostly to the weakening of the ruble against the US dollar.

Grain Division

Sales volume in the Grain division increased by 138 per cent to 20 642 tonnes from 8,668 tonnes for the first quarter of 2013.
The average price decreased by 30 per cent to 5.91 RUR/kg in the first quarter of 2014 from 8.46 RUR/kg in the first quarter of 2013.

Compared to the price in the fourth quarter of 2013 of 6.37 RUR/kg, the price in the first quarter of 2014 decreased by seven per cent.

The average price in dollar terms decreased by 39 per cent to $0.17/kg in the first quarter of 2014 from $0.28/kg in the first quarter of 2013. Compared to the price in the fourth quarter of 2013 of 0.20 $/kg, the price in the first quarter decreased by 14 per cent.

[Mustang Sally Farm]

Czech Livestock Output Falls in First Quarter
02 May 2014

CZECH REPUBLIC – Fewer pigs, cattle and poultry were slaughtered in the first quarter and milk collection also dropped slightly, according to the Czech Statistical Office (CSO).

The Office revealed that lower livestock prices included a drop in bull beef of 3.2 per cent and a 4.7 per cent drop in poultry.

Biggest discounts were seen in young cattle sales, with calves down almost 23 per cent. Pigs, in contrast, lifted 3.1 per cent.

Pig meat production was down 1.4 per cent and poultry production slipped to 34,172.

Office data shows farm gate milk prices rose and exports lifted 21.8 per cent, although not due to internal markets.

“The price of milk is not affected by domestic demand, but by European and world markets,” said CSO spokesperson Dana Vecerova. “There is not enough milk in the world and this has reflected the retail price in shops.”