US Pork, Beef Exports Increase Pace in March
09 May 2014
 

US - The pace of US beef and pork exports increased sharply in March, driven by double-digit increases to leading markets Mexico, the China/Hong Kong region and South Korea, according to statistics released by the USDA and compiled by the US Meat Export Federation (USMEF).

US pork exports reached their highest monthly total since October 2012: 209,704 metric tons (mt) valued at $606.7 million, increasing 29 per cent in both volume and value over March 2013.

Exports of US beef rose 12 per cent in volume to 93,380 mt valued at $516.2 million, an increase of 17 per cent.

When measured in proportion to overall US beef and pork production, March exports also showed gains. Total pork exports (muscle cuts plus variety meat) equated to 31.5 per cent of total US pork production in March (26 per cent of muscle cuts alone) versus 28 and 23.5 per cent, respectively, a year ago. Beef exports accounted for 14 per cent of total production and 11 per cent of muscle cuts – up from 12 and 9 per cent in 2013.

The export value per head slaughtered set a new record of $69.93 for pork in March, topping the $60 per head mark for the first time and up from $50.38 last year. The export value per head of fed slaughter for beef was $271.57, up from $222.20 a year ago.

"Even with high prices and supply concerns, we are working to keep the visibility of US beef and pork high in our key export markets, and they continue to respond positively," said Philip Seng, USMEF president and CEO. "Among the many encouraging signs are the continued strength of the Mexican market in both pork and beef, and the rebound of South Korea, which has been an area of focus for USMEF as that market has been challenged over the past year by an over-supply of domestic product."

Pork Notes

Porcine epidemic diarrhea virus (PEDV) has been a factor both in the United States and in a number of export markets, creating supply concerns going into the summer. But exports remained strong in March to virtually all key markets, despite a 4 per cent decline in US pork production for the month. Thus, the export increase likely reflects the fact that some product was shipped out of cold storage from previous months’ production.
•Mexico: up 38 per cent in volume (54,284 mt) and 75 per cent in value ($121 million).
•Japan: up 22 per cent in volume (45,358 mt) and 8 per cent in value ($175.3 million). This was the largest monthly sales volume to Japan since May 2011, driven by growth in chilled and ground seasoned pork exports.
•Hong Kong/China: up 49 per cent in volume (41,295 mt) and 59 per cent in value ($93.6 million) – the largest monthly total since February 2013, reflecting growth in muscle cut sales.
•South Korea: up 73 per cent in volume (16,104 mt) and 83 per cent in value ($46.4 million) – the biggest export month since March 2012.
•ASEAN: up 90 per cent in volume (9,703 mt) and 93 per cent in value ($25.4 million).
•Central/South America: up 29 per cent in volume (10,985 mt) and 32 per cent in value ($28.5 million), driven by record exports to Colombia (5,049 mt, up 193 per cent; valued at $12.6 million, up 177 per cent).

Beef Notes

US beef production dipped 5 per cent in March and 5 per cent for the first quarter compared to year-ago levels, but exports remained positive, helping to set a new record for the Choice beef cutout value in mid-March at $2.42 per pound.
•Mexico: up 82 per cent in volume (19,495 mt) and 94 per cent in value ($90.1 million).
•Japan: down 10 per cent in volume (16,649 mt) and 6 per cent in value ($107.5 million) compared to year-ago levels as sales to Japan surged in March 2013 upon the announcement of expanded market access. US beef exports to Japan for the first quarter remain up 21 per cent in volume (46,681 mt) and 16 per cent in value ($292.1 million).
•Hong Kong: up 88 per cent in volume (12,224 mt) and 112 per cent in value ($80.6 million) – continuing the upward trend since access for US beef was expanded in February 2013.
•South Korea: up 10 per cent in volume (9,601 mt) and 37 per cent in value ($65.8 million), despite being a primary target for Australia’s drought-related surge in beef production and exports.
•Central/South America: up 4 per cent in volume (2,864 mt) and 16 per cent in value ($13 million), driven by larger shipments to Colombia and Guatemala.

Lamb Notes

US lamb exports dipped across the board in March, reaching 740 mt (down 41 per cent) valued at $1.9 million (down 37 per cent). For the first quarter, lamb exports are down 16 per cent in volume (2,645 mt) and 12 per cent in value ($6.6 million).

Mexico Exported 86,000 Tons of Pork in 2013
29 May 2014

MEXICO - The National Service of Health, Food Safety and Quality (SENASICA) reported that at the end of 2013, exports of pork topped 86,294 tons, which implies an increase of three per cent compared with 84,090 tons that were placed on the market during 2012.

The agency of the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA) indicated that meat from fresh and processed pork sold abroad comes from Federally Inspected Establishments (TIF) located in ten states: Baja California, Chihuahua, Coahuila, State of Mexico, Guanajuato, Jalisco, Nuevo León, Sinaloa, Sonora and Yucatan.

The main consumer of Mexican pork is Japan, followed by Korea and the United States.

Countries like Argentina (110.02 tons), Canada (34.33), Colombia (117), Guatemala (122.76), Venezuela (253.55) and Vietnam (212.74), also imported the Mexican pork.

Currently, Mexican pork producers can market their products in 13 countries in America, Asia and Europe.

The main exporters of pork are Sonora, with 53,923.84 tons; Yucatán, 25,003.85, and Coahuila. The State of Guanajuato exported around 102 tons in 2013 to Guatemala.

US Retail Meat Prices Continue to Set New Records
02 June 2014

US - Last week, USDA Economic Research Service updated their monthly retail meat price data. Retail beef and pork prices continue to set new records, writes John D. Anderson, Deputy Chief Economist, American Farm Bureau Federation.

The all-fresh retail beef price for April was reported by ERS at 549.6 cents per pound. This is a little over three per cent higher than the previous month's record level. The average retail pork price in April was reported as 395.0 cents per pound, also up a little over three per cent from the March price. Compared to a year ago, both the all fresh beef and the pork retail prices are up by about 13 per cent.

In contrast to the performance of beef and pork, retail broiler prices headed lower in April according to the ERS data. The retail broiler composite price for April was 192.01 cents per pound - a decline of almost one per cent from March. Actually, the retail broiler price is now at its lowest point since last April (when it was 191.20 cents per pound, for the record).

With respect to beef and pork, retail prices have generally moved in the opposite direction from wholesale prices over the past month. For example, the Choice boxed beef cutout averaged about $10 per hundredweight lower in April than in March this year. The pork cutout averaged close to the same in March and April but was steadily declining through the whole month. Not surprisingly, then, the April retail prices reported by ERS were accompanied by higher wholesale-to-retail margins.

For pork, ERS reported a 4.7 per cent increase in the wholesale-to-retail margin between March and April. Still, though, the April wholesale/retail price spread was, with the obvious exception of March, the narrowest since July 2012. For beef, the wholesale-to-retail spread increased considerably more - jumping almost 15 per cent between March and April - but it is still a little below the average of the last couple of years as a percentage of the retail price.

Aside from the fact that retailers probably really did want to see some margin recovery on meat items, another factor working against lower meat prices over the past month was seasonal demand. Moving out of winter into spring, we typically expect to see meat demand improve. This can help keep meat moving at a higher price point.

It will be interesting to see what retail prices do as the summer demand season really kicks into gear. Will strong demand and tight supplies keep retail prices on beef and pork high, or will summer grillers trade down to lower priced items - both within the beef and pork market spaces or outside of them (e.g., boneless/skinless chicken breasts or thighs or drumsticks)? We shall see.

On the subject of upcoming supplies in the beef sector, USDA National Agricultural Statistics Service (NASS) released the May Cattle on Feed report on Friday afternoon. The report really didn't contain any surprises. Compared to a year ago, placements were down five per cent, marketings were down two per cent, and the May 1 on-feed inventory was down one per cent. These numbers were all generally in line with pre-report expectations. The placement number was on the low side of average pre-report estimates but was well within the range covered by those estimates.

It is probably worth pointing out that the on-feed inventory has now been below the year-ago level in every month since August 2012. That's obviously a long stretch of year-over-year decline in on-feed numbers. Apropos of that, Cargill announced last week that they would be laying off a substantial number of workers from their Dodge City, Kansas beef packing plant, citing what from their standpoint are inadequate supplies of cattle for the foreseeable future.

Australian Beef Exports to Brazil Surge13 June 2014 SOUTH AMERICA - Stronger Brazilian demand for Australian beef has been the catalyst for the rise in shipments to South America, according to Meat and Livestock Australia.Australian beef exports for the January-May period are up by four per cent year-on-year, totalling 3,567 tonnes. Exports to Brazil rose by 61 per cent for the period but, in contrast, declined by 14.5 per cent to Chile. MLA said that according to Secex (Foreign Trade Secretariat), Brazilian beef imports during the first five months of 2014 rose five per cent year-on-year, to 18,998 tonnes– mainly driven by the World Cup, which starts this Friday. Australian beef shipments to Brazil totalled 1,346 tonnes, up 61 per cent year-on-year, composed mainly of primal cuts, with frozen rump (mostly rump cap) representing 96 per cent of total shipments. Imports from Paraguay and Argentina also registered an increase, up 18 per cent and four per cent respectively. In contrast, beef exports to Chile declined 14.5 per cent for the same period, to 2,221 tonnes. Interestingly, despite the lower total shipments, frozen exports increased substantially, up 129 per cent year-on-year, to 838 tonnes with thick flank/knuckle accounting for 87 per cent of total shipments. MLA said that the deline in exports to Chile which were down by two per cent for the first four months of the year to 46,255 tonnes was driven by a higher cattle slaughter during the first quarter, a consequent increase in domestic supply and a substantial decline in beef exports. Cattle slaughter during the first quarter totalled 209,651 head, an increase of 10.5 per cent year-on-year. The rise is partially explained by the lack of rain during the spring and summer seasons, which compromised the pasture and forced producers to send cattle to slaughter. In consequence, beef production rose 7.5 per cent, to 54,030 tonnes cwt for the same period. Chilean beef imports for the January-April period declined by two per cent year-on-year, with shipments down 25 per cent from Brazil and 19 per cent from Argentina, the major suppliers. In contrast, Paraguayan imports rose six-fold, totalling 12,813 tonnes, a result of the Paraguay regaining full access to the Chilean market in July last year. Chilean beef exports declined by 40 per cent for the same period, to 356 tonnes, having Korea as the major destination, at 129 tonnes.

 
Weekly Overview: China's Growing Pork Industry and US Meat Waste Evaluated
23 June 2014


GLOBAL - The rapid growth and development of China's pig meat sector were among the main themes explored at the World Meat Congress in Beijing last week. Pig numbers appear to be recovering in Viet Nam. Analysts in the US estimate that losses of meat, poultry and fish may account for 30 per cent of all food waste by value. And finally, there is news on swine fever outbreaks in Colombia and Russia, and PED in the US and the Dominican Republic.

In a further report from the World Meat Congress, which took place in Beijing last week, delegates heard how China is playing an increasingly important role on the international meat market, thanks to rising consumption, prices and imports.

Last year, China slaughtered more than 715.5 million pigs, producing nearly 55 million tonnes of pig meat and taking more than 50 per cent of total global production.

China is seeing a growth and development of its own meat processing sector with a focus on larger more integrated plants, with higher food safety standards and growing profitability, according to Meng Qingguo, president of the China Meat Association.

He Luli, vice chairwoman of the Standing Committee of the Tenth National People’s Congress and honorary president of the China Meat Association explained that the Chinese government has placed great importance on meat products and processing.

Staying in Asia, according to the Genesus review of the pig meat sector in Viet Nam, pig numbers appear to be recovering. At 26.4 million, there were just 0.3 per cent more pigs on farms in the latest count than at the same time last year, which the authors attribute to more favourable hog prices and less disease, especially PRRS.

A recently published report from the USDA Economic Research shows that while meat, poultry and fish makes up 12 per cent of the volume of food waste in the United States, this food group accounts for 30 per cent of the value of those losses. Most of this waste was at the consumer level for the meat category.

Turning to disease outbreaks, reports of cases of swine fevers continue to roll in. Three outbreaks of Classical swine fever have been occurred in Colombia, adding to the country's problems with PED. In the last week, Russia has reported the deaths of nine wild boar and five domestic pigs from African swine fever in two different regions in the west and south-west of the country.

And finally, on porcine epidemic diarrhoea (PED), the number of PED virus-positive samples continues to rise in the US but, as expected with the warmer weather, the rate appears to be slowing down. Arkansas has reported its first positive result, however, bringing to 31 the number of states affected. In Canada, hopes of eradicating PED are beginning to look achievable. PED has been blamed for the deaths of 26,000 pigs in the Dominican Republic.

Porcine Delta Corona virus (PDCoV) has been detected in 284 samples from US pig farms in 15 states.



Jackie Linden, Senior Editor

UK Farming Minister Welcomes Increased Exports
03 July 2014


UK - The prospects for food and farming in the UK are promising with export markets opening up and global demand for food rising.

This was the core message from junior agriculture minister George Eustice at the opening of the Livestock Event in Birmingham this week.

Mr Eustice said that with a rising global population demand for food is expected to increase by 60 per cent by 2050.

And for the UK recently new markets for beef had been opened in Japan, and the market for pig meat exports to China had recently opened.

He added that a memorandum of understanding had also been reached with China over exports of beef, although negotiations to seal the deal could take another three to four years.

“The long term prospects for the industry are very good,” Mr Eustice said.

“We have seen quite a turn-around in the last two years,” he added.

He said that with feed prices coming down and quotas being removed from the dairy sector next year, there are big opportunities for the farming and dairy sector.

However, he said that at present the dairy sector is operating a trade deficit with more imports than exports and he urged the dairy industry to reverse the trend by taking more of the domestic market and also increasing exports particularly with cheese products.

In the beef sector, he said that this week because of difficult times with low prices and hard market conditions, an agreement has been reached between the National Farmers Union and the British Meat processors Association on a voluntary code of conduct on charges and specifications handed down by the abattoirs to farmers.

Mr Eustice also called for more progress to be made by the industry in the field of genetics to improve productivity.

He added that in the sheep and lamb sector, prospects were also improving as the UK is the third largest exporter in the world and the largest producer in Europe.

With stable prices, the sector has recently seen markets open up in Hong Kong for more exports.



Chris Harris, Editor-in-Chief

Meat Production Responsible for Climate Change
23 July 2014


US - Eating meat contributes to climate change, due to greenhouse gasses emitted by livestock, according to a study published in Climactic Change.

The research finds that livestock emissions are on the rise and that beef cattle are responsible for far more greenhouse gas emissions than other animals.

Carbon dioxide is the most-prevalent gas when it comes to climate change. It is released by vehicles, industry, and forest removal and comprises the greatest portion of greenhouse gas totals.

But methane and nitrous oxide are also greenhouse gases and account for approximately 28 per cent of global warming activity.

Methane and nitrous oxide are released, in part, by livestock. Animals release methane as a result of microorganisms that are involved in their digestive processes and nitrous oxide from decomposing manure.

These two gases are responsible for a quarter of these non-carbon dioxide gas emissions and 9 per cent of total greenhouse gas emissions overall.

The research team, including Dario Caro, formerly of Carnegie and now at the University of Siena in Italy, and Carnegie's Ken Caldeira, estimated the greenhouse gas emissions related to livestock in 237 countries over a nearly half a century and found that livestock emissions increased by 51 per cent over this period.

They found a stark difference between livestock-related emissions in the developing world, which accounts for most of this increase, and that released by developed countries.

This is expected to increase further going forward, as demand for meat, dairy products, and eggs is predicted by some scientists to double by 2050. By contrast, developed countries reached maximum livestock emissions in the 1970s and have been in decline since that time.

"The developing world is getting better at reducing greenhouse emissions caused by each animal, but this improvement is not keeping up with the increasing demand for meat," said Mr Caro.

"As a result, greenhouse gas emissions from livestock keep going up and up in much of the developing world."

Breaking it down by animal, beef and dairy cattle comprised 74 per cent of livestock-related greenhouse gas emissions, 54 per cent coming from beef cattle and 17 per cent from dairy cattle.

Part of this is due to the abundance of cows, but it is also because cattle emit greater quantities of methane and nitrous oxide than other animals.

Sheep comprised nine per cent, buffalo seven per cent, pigs five per cent, and goats four per cent.

"That tasty hamburger is the real culprit," Dr Caldeira said.

"It might be better for the environment if we all became vegetarians, but a lot of improvement could come from eating pork or chicken instead of beef."

Cargill Closes Milwaukee Beef Plant01 August 2014

 US - US meat and agrifood business Cargill is to close its Milwaukee, Wisconsin, beef harvest plant, which employs approximately 600 people.The plant will close today 1 August. The closure of the facility results primarily from the tight cattle supply brought about by producers retaining cattle for herd expansion. The ground beef plant at the site will remain open to meet customer needs, employing approximately 200 people. Cargill’s six other US beef harvest plants are unaffected. Cargill purchased the beef harvest plant in 2001 and it has a processing capacity of 1,300 to 1,400 animals daily. For the more than 600 people impacted at the plant, Cargill will be offering opportunities to fill positions at other company locations in the region. Those who relocate to positions at other Cargill facilities will receive assistance. For displaced employees, Cargill will provide support including a job fair in Milwaukee the week of 4 August. “Closing our Milwaukee beef plant is taking place only after we conducted an 18-month-long analysis of the region’s cattle supply and examined all other possible options,” said John Keating, president of Cargill Beef, based in Wichita, Kansas. “It is unfortunate that we must close any beef plant because of the impact to good people, their families and the community. The harsh reality is that the US beef cattle herd is at its lowest level since 1951, with any significant herd expansion being years away.” Cargill will continue to honor its community commitments in Milwaukee through the end of calendar year 2014. The company’s six remaining U.S. beef processing plants are located in California, Texas, Kansas, Colorado, Nebraska and Pennsylvania.

Russia Bans Agriculture and Food Imports
07 August 2014


ANALYSIS - Russia's president Vladimir Putin has announced a ban on imports of agricultural and fishery products from the US, EU, Canada, Australia and Norway in reaction to sanctions imposed against it over Ukraine.

The Russian government has today (7 August) approved a list of food products which are included in the ban.

Imports of beef, pork, poultry, fish, cheese, milk, fruits and vegetables from the US, EU, Canada, Australia and Norway will therefore be banned for a year from today, said Russia's Prime Minister Dmitry Medvedev.

However, Mr Medvedev assured that baby food and products bought whilst visiting these countries would not be included in the ban.

The Russian government noted that it may remove these sanctions if the countries involved show a constructive approach on co-operation.

Mr Medvedev further stated that Russia had no option but to enforce this ban on agriculture and fishery products as it must protect the economic security of the country.

The official Executive Order On Special Economic Measures to Protect the Russian Federation’s Security was signed by President Putin and took effect immediately.

The Russian Ministry of Agriculture is expected to work with agricultural producers associations to develop a set of measures aimed at increasing the supply of agricultural products to avoid price increases.

Commenting on the ban, Bob Stallman, President of the American Farm Bureau Federation, stated: “This is clearly a political move. It is unfortunate that the biggest losers in this will be Russian consumers, who will pay more for their food now as well as in the long run.

“America’s farmers and ranchers would have been more surprised if Russia’s leaders had not announced bans and restrictions on food and agricultural imports. They do so regularly for seemingly small reasons and now they have to deal with sanctions imposed by our nation and others.”

White House spokeswoman Laura Lucas Magnuson has also commented on the announcement saying: "Retaliating against Western companies or countries will deepen Russia's international isolation, causing further damage to its own economy."

Increase in South American Exports

Alongside the ban on agriculture and fishery products from the US, EU, Canada, Australia and Norway, Russia has also being talking with some South American countries to increase exports.

Sergei Dankvert, chairman of the Russian-Ecuadorian and Russian-Chilean intergovernmental commission on trade and head of Rosselkhoznador noted that there is now a very favourable opportunity to increase the volume of food products such as seafood, fruits and vegetables from Ecuador to Russia.

Ecuador is also ready to export dairy products to Russia which included powdered and condensed milk and cheeses.

Speaking with Chile, Mr Dankvert stated that Chile can greatly increase exports to Russia of vegetables, fruits, fish, dairy products and meats of all kinds.

The volume of fish supplied to Russia by Chile can now increase from 53,000 tons to two or three times the volume.

There is also a demand on the Russian market for Chilean dairy products.

Brazil has also recently expressed interest in expanding the supply of meat and dairy products to the Russian market and the Rosselkhoznadzor considers it possible to cancel the temporary restrictions that are on a number of Brazilian meat producing companies.



Lucy Towers, Editor

South America Steps in to Meet Russian Needs
20 August 2014


ANALYSIS - The trade war with between Russia and the EU, US, Canada, Australia and Norway that has flared up because of sanctions imposed over the crisis in Ukraine was stepped up this week.

The Russian veterinary authority Rosselkhoznador seized batches of meat, poultry dairy products, eggs and honey that were discovered being imported into the country at border posts between Ukraine and Russia.

And a top level meeting has been taking place between the Russian authorities and Argentine officials with the view to replace meat and food products that have been banned by President Vladimir Putin’s import embargo.

The Russian delegation led by the head of Rosselkhoznadzor, Sergei Dankvert , met with an Argentine trade delegation headed up by First Deputy Minister of Foreign Affairs Carlos Bianchi.

The talks were also attended by Industry Minister Deborah Giorgi, Minister of Agriculture, Animal Industry and Fisheries Carlos Kasamikela, Argentine Ambassador to Russia Pablo Anselmo Tettamanti, representatives of various agencies and embassies. On the Russian side there were senior officials from MFA, Ministry of Economic Development, Industry and Trade, Ministry of Agriculture of Russia and Rosselkhoznadzor.

In the meeting Carlos Bianco told Sergey Dankvert that a special commission was being established in Argentina to explore the possibilities of increasing Argentine-Russian trade.

He said there had been a powerful impetus to the development of bilateral relations caused by the visit to Argentina by the Russian president, Vladimir Putin, as well as their constant support of Argentine President Cristina Kirchner.

Mr Bianco presented Mr Dankvert with a number of proposals to significantly increase the supply of food to make up for the Russian food market volumes of products previously shipped from the European Union and the United States.

The Argentine Minister of Industry Deborah Giorgi said: “We can ensure the supply of a wide variety of Russian products of animal and vegetable origin.

“In particular, Argentina is one of the largest producers of dairy products, the annual production is estimated at $1.7 billion. In a short time the country has become the largest producer of dairy products in Latin America and the seventh largest exporter of milk powder in the world.

“The volume of poultry meat production in Argentina is 700,000 tons per year, which gives the country the ninth largest production in the world in this product group.

“In addition, Argentina is ready to export poultry feed, vaccines and genetic resources.

“Argentina is also ready to increase exports to Russia of wine. Currently Argentinean wines are exported to 125 countries.”

The minister also said that Argentina is prepared to supply other products such as pasta, chocolate, biscuits and confectionery.

The Argentinean delegation also told the Russian side that given the challenges posed by the Russian President over the development of the domestic agricultural sector, Argentina was ready to supply breeding animals and genetic material of high quality – both embryos and semen.

The Argentine delegation also put forward proposals for the supply of soy beans, fish products and fruit and vegetables as well as supplying pork and finished meat products, as well as high-quality beef.

They said that Argentina is interested in obtaining a quota for poultry meat, previously provided by the European Union.

Sergei Dankvert said that the meeting was of particular importance in the run-up scheduled for this September meeting of the IGC.

He said there were mutual economic interests in developing cooperation and he said that Russia had always had better relationships over the supply of food from Latin America than from either the US or Europe, because subsidies do not distort the market.

Mr Dankvert indicated that there was room for Argentina to take over the cheese market that used to be supplied by the EU. The EU had been supplying 260,000 tonnes of cheese to Russia each year.

He added that there was also a large domestic market demand for milk powder and butter.

He said that the EU had operated a quota system that adjusted production and controlled prices that had made it difficult for countries such as Argentina to compete and this also damaged the interests of Russian producers.

Mr Dankvert said that Russian processors are interested in supplying all kinds of dairy products, including skimmed milk powder, whey powder, milk fat, etc.

“Great opportunities are opening up,” he said.

He added that there are also opportunities for Argentine fish and sea food products, especially considering that it will not now be receiving traditional fish such as mackerel, as well as more exotic species such as silver hake.

Russian importers are also interested in Argentine shrimp.

Mr Dankvert said that all the usual veterinary certificates would have to be completed before Argentina could start supplying these products but he said deliveries could be started soon because of the long-term relationship between Rosselkhoznador and the Argentine food safety authority SENASA.

He said that SENASA was very familiar with the rules.

On the prospect of Argentina increasing supplies of poultry meat to Russia, Mr Dankvert said that they could supply more than half the amount that the US was exporting and he said that Rosselkhoznador would be ready as soon as possible to consider applications from Argentina to supply animal products.

He called for a list of companies wanting to supply Russia with products to be drawn up and for all the paper work to be completed quickly.

Away from the meeting with the Argentine delegation, Rosselkhoznador has also received an approach from Brazil putting forward guarantees from companies wanting to supply pork and beef to Russia.

Chris Harris, Editor-in-Chief

Pregnant Women Advised to Keep Eating Fish29 August 2014

US - For most people, eating fish and shellfish is not a health concern, according to the US Environmental Protection Agency (EPA). In fact, fish contains omega-3 fatty acids and healthy oils, some of which can’t be found in any other food source. Fish and seafood also are sources of lean protein, low in saturated fat and high in essential minerals, such as iron.Despite the numerous health benefits of consuming fish, many women have limited or avoided eating fish during pregnancy or feeding it to their young children, because of their concerns over high mercury levels that may harm an unborn baby or young child's developing nervous system. But, these women should know that not all fish are a problem where mercury is concerned. A recent draft report by the EPA and US Food and Drug Administration (FDA) advises pregnant and breastfeeding women, those who might become pregnant, and young children to eat more fish of types that are lower in mercury to gain important developmental and health benefits. Previously, the FDA and EPA recommended maximum amounts of fish that these groups should consume, but did not promote a minimum amount. The new minimum amount recommended is 8 to 12 ounces, or two to three servings per week, of a variety of fish that is lower in mercury. These fish include shrimp, pollock, salmon, light canned tuna (not white or albacore, which contain higher mercury levels), tilapia, catfish and cod, as examples. The minimum recommendation comes after an FDA analysis of seafood consumption data from more than 1,000 pregnant US women found that 21 per cent of them ate no fish in the previous month, and those who did ate far less than the Dietary Guidelines for Americans recommends, with 50 per cent eating fewer than two ounces a week and 75 per cent eating fewer than four ounces a week. “I think the message we want to get out to people is eating fish is extremely good for us no matter what stage or phase we are in life, but especially for those who are pregnant and breastfeeding,” said Sandy Procter, nutrition specialist for K-State Research and Extension and a registered dietitian. “There are only a few types of fish that we know are consistently high in mercury, and especially for people in our area of the country, those are easy to avoid.” The fish with higher levels of mercury include four main types, she said: tilefish from the Gulf of Mexico, shark, swordfish and king mackerel. Also, pregnant and breastfeeding women should limit their consumption of white or albacore tuna to six ounces per individual per week, which is about the size of a can or packet of tuna eaten entirely by one person. A focus on iron The phrase “eating for two” is common when referencing a pregnant woman who is also eating to support her unborn child. Procter said pregnant women aren’t eating for two people calorie-wise, but they are eating with another person’s well-being in mind. Their dietary decisions affect their unborn baby. Nutritional concerns are elevated by the fact that nearly half of the pregnancies in the United States are unplanned, according to the Centers for Disease Control and Prevention. Procter said many important nutrient needs for the woman and baby, such as folic acid, occur before a woman may realize she is pregnant. In addition to healthful fats, Procter said fish and seafood also provide pregnant and breastfeeding women with iron—an essential mineral that helps with transferring oxygen to muscles, supporting a person’s metabolism, and growing and developing, according to the National Institutes of Health (NIH). Dietary iron has two main forms, heme and nonheme, according to the NIH. The richest sources of heme iron are lean meat and seafood, while nonheme sources include nuts, beans, vegetables and fortified grains. Procter said it is considered unlikely or impossible for pregnant women to get as much iron as they need from diet alone, which is why healthcare providers routinely recommend they take an iron supplement. “Iron is a nutrient that, worldwide, women are routinely short on anyway,” she said. “Pregnancy puts an even increased demand on women for iron, especially in the third trimester.” Infants and young children must also have adequate amounts of iron. If mothers aren’t breastfeeding, iron-fortified formulas are typically recommended for their babies. According to the NIH, the iron in breast milk alone is not enough to meet the increasing iron needs of infants older than four to six months, so mothers should make sure as babies grow, they are introduced to iron-fortified cereals and solid foods rich in iron. Ideas for preparation When consuming fish for the healthy oils, protein and variety of other nutrients, does it make a difference from a nutritional standpoint if it is fresh, frozen, canned or in another shelf-stable form? Procter said it is a matter of personal preference, as all forms have great nutritional value. Even starting from a frozen state, Procter said fish thaws and cooks quickly. “It can be easily prepared,” she said. “It can be steamed, grilled, broiled or poached. You can include it in tacos or part of a casserole. It also doesn’t heat up the kitchen, so it’s a nice food for summer.” The FDA advises that pregnant women and young children avoid raw fish and only eat foods with fish, meat, poultry or eggs that have been cooked to safe temperatures to protect against microbes, which are harder to fight with the likely lower immune systems these women and children have. Also, the agency advises pregnant and breastfeeding women to eat the recommended eight to 12 ounces per week, but stay within the recommended calorie limits. Children’s portion sizes should be smaller than adult portions.

Foreign Worker Programme Changes Jeopardize Meat Processing Plants
03 October 2014Manitoba Pork Council



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Manitoba Pork Council and Sask Pork

FarmScape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
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CANADA - The Canadian Meat Council warns changes to Canada's temporary foreign worker program are jeopardizing the future of Canada's meat processing plants, the jobs of Canadian who work at those plants and local economies, writes Bruce Cochrane.

Under changes made in June to Canada's temporary foreign worker program the number of foreign workers that make up the work force has been capped at 30 per cent, a C$1,000 fee has been introduced for each application and the length of stay for workers has been cut in half.

Ron Davidson, the director of international trade, government and media relations with the Canadian Meat Council, says meat processors are recruiting intensively and nationally but there are not enough Canadians willing to do these jobs.

Ron Davidson-Canadian Meat Council:
If you do not have enough workers you have some very hard choices to make.

One is you slow down the line speed so you reduce production in the plant and you reduce the number of livestock you buy from farmers.

You reduce your value added activities such as boning or recovery of special meats so you end up with reduced competiveness with our foreign competitors, we jeopardize our current exports, aren't able to take advantage of future exports, investment in new plants is deferred or lost.

Canadian jobs are put at risk because, if you don't have enough people to keep a second shift going or to keep a certain type of product continuing, you could lose the whole unit so this program actually puts Canadian jobs at risk.

It decreases revenues for rural communities who are now thriving because of the investment of meat plants in their communities, they're growing and at the end of the day, as far as farmers go, there's less opportunity for them to sell to Canadian processors and they're probably going to receive a lower price.

Mr Davidson notes permits for foreign workers are expiring now so rather than expanding to take advantage of new trade agreements processing plants that are unable to fill vacant positions are looking at reducing production.

USDA Foreign Agricultural Service

TAIWAN and US - US poultry exports to Taiwan increased significantly during the first half of 2014 due to exceptionally high pork prices. The Agricultural Trade Office (ATO) in Taiwan estimates that US poultry exports to Taiwan could see a record year in 2014 as more Taiwan consumers replace pork with poultry.

Due to the Porcine Epidemic Diarrhoea Virus (PEDv) outbreak in Taiwan, pork prices have drastically increased since the previous year.

According to food-service operators, especially the catering industry, there are smaller margins in pork meals due to higher pork prices. In Taipei, a lunch box costs an average of NT$80 to 90 (US$2.60 to 3.00), which is up nearly 10 per cent from the previous year.

The food-service industry pays approximately NT$13.00 (US$0.43) per portion for the pork loin meal while they only pay NT$8.00 (US$0.27) cents for one chicken drum stick. As a result, demands for poultry have been increasing in the second and third quarter of CY2014, which is when local pork prices hit a record high.

From January to July 2014, US poultry exports increased 44.8 per cent in volume, or 87,415 metric tons (MT), compared to that same time period in 2013. In CY2013, the United States exported 94,306 MT of poultry products to Taiwan, and it is possible the United States has a record export total in CY2014.

Taiwan's World Trade Organization (WTO) special agricultural safeguards (SSG) for chicken wings
and legs are typically triggered in the latter half of the year.

Importers in Taiwan import more in the third quarter in order to avoid these tariff surcharges. This year, the chicken legs/wings SSG was triggered on 5 September 2014, with a final volume of 121,426.8MT.

In comparison, the 2013 SSG for the same category was triggered on 8 November 2013, with a volume of 104,455.3MT.

Taiwan's rate of self-sufficiency for poultry products is generally over 80 per cent. The United States and Canada are the two major poultry product suppliers for Taiwan, with the United States accounting for over 80 per cent of the import market over the past several years. According to Taiwan’s Council of Agriculture (COA), pork prices may stabilize in the first quarter of 2015.

If this occurs, Taiwan poultry imports from the United States may decrease. However, this is a situation the ATO/Taiwan will continue to follow throughout the year.

US - Stocks of frozen meat and poultry in US cold storage warehouses remained constant during September and finished the month 8.8 per cent lower than one year ago, writes Steve Meyer and Len Steiner.

Data for all meat and poultry items in the report appear in the table on page two (Follow the further reading link).

Some highlights are:

The total inventory of the four major species, at 2.017 billion pounds, remains very near its lowest level of the past five years. Interestingly, the levels that represent the bottom of the blue five year range area in the chart at right were set in 2010, two years after the first big run up in corn prices in the 2007-2008 crop year.

That increase, of course, was fueled by the growth in ethanol output and the pressure it put on corn supplies. This year’s low inventories are two years after the drought induced surge of corn prices in the 2012-2013 crop year. The two low points for frozen inventories are indicative of the time lags that occur in these cost shocks. Their impacts on meat and poultry supplies and inventories comes well after the fact, masking the impact of the cost shock on consumer costs for meat and poultry.


The tightness of frozen meat and poultry stocks is being driven primarily by beef and chicken. As can be seen at right, both have been at their lowest levels of the past five years for several months now.


Beef inventories grew by 7.7 per cent in September but remained 16 per cent lower than one year ago. Lower boneless beef supplies were the major reason, of course, since they account for nearly 90 per cent of all beef in freezers but the stock of beef cuts fell by 3.9 million pounds or about 9 per cent as well in September.


Chicken inventories were down by 2.3 per cent in September but are now 9.3 per cent lower than last year. Leg quarters, wings and “other” chicken were the big contributors to both the monthly and year on year declines while the stock of breasts and breast meat were up 3.2 per cent from August 30 and 27.1 per cent from one year ago. “Leg product” stocks which include quarters, legs, thighs and thigh meat were five per cent lower than one month ago and just over 15 per cent lower than last year on 30 September. We expect those to grow in coming months due to the Russian embargo on US products.


While beef and chicken stocks are well below their five year lows, turkey is right at its low for that period. Turkey stocks usually peak in August or September and this year’s peak will be the lowest in our cold storage data set that dates to 1993. Part of that is the current cyclical reduction in turkey output but a more important part is the smaller and smaller dependence of the industry on holiday whole bird sales that are the main driver of seasonal storage increases.


30 September pork inventories were unchanged from August and four per cent lower than one year ago. Bellies stocks remain 44 per cent larger than one year ago but remember that they were up 136 per cent, yr/yr, last month. The biggest contributor to the year on year reduction of pork stocks was hams, whose 30 September stocks of 194.08 million pounds were 12.4 per cent (27.556 million pounds!) lower than last year. The total was 8.1 per cent higher than on 31 August but the holidays are coming!

Oct.31/2014

BRAZIL – Brazilian meat and food processing giant BRF ended the third quarter of 2014 with net income of R$624 million, an increase of 117.5 per cent compared to the third quarter of 2013.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached a record R$1.2 billion, an increase of 61.3 per cent compared to the same quarter last year.

BRF said that the performance is a result of management methods and processes that were implemented a year ago and demonstrates the consistency of results.

In the third quarter of this year, the consolidated Net Operating Income (NOI) reached R$8 billion, an increase of 5.3 per cent compared to the same period last year, driven mainly by Brazil.

The initiatives adopted in the Brazilian market have started to show positive results, as the project “go-to-market” (GTM), which contributed positively to growth of 5.2 per cent in volume compared to the third quarter of 2013.

In international markets, BRF said that the performance was also solid, with an increase of 3.8 per cent in net sales, reaching R$3.4 billion, compared to the same period in the previous year.

The sales performance and operational improvements provided drop in net debt over EBITDA of the Company, from time 1.51 to 1.40 in the quarterly comparison since 2.29 times in 3T13.

The company is pressing ahead with the divestment of assets that are not core to the company’s main business, including the sale of two beef slaughter plants to Minerva and the potential sale of the dairy division to Parmalat SpA part of the Groupe Lactalis. This deal is waiting approval from CADE.

Brazilian Market
The ROL in Brazil reached R$3.5 billion, up eight per cent compared to the same period last year, driven by volume growth and good performance in small retail.

The completion of consolidation of the sales force in small retail (the initial phase of “go to market”) and simplifying processes through cutting SKUs, as well as improving the company’s level of service, have already started to translate into higher revenue.

EBIT in Brazil reached R$383 million, up 39.2 per cent compared to the third quarter of 2013.

The company also holds leading market share in processed meat (51.1 per cent), Frozen produce (58.7 per cent), Pizza (50.8 per cent) and margarine (58.8 per cent).

International Market
During the quarter, the international market for meats showed and upward trend.

BRF said the company’s strategies for maximising volume and profitability of markets continue to generate positive results.

The company has started to see the benefit from the opening of the Russian market since September, which was previously banned to BRF plants.

The International ROL reached R$3.4 billion, an increase of 3.8 per cent on 2013.

International EBIT reached R$413 million, up 221.7 per cent over the same period last year, with a margin of 12.2 per cent compared to 4.0 per cent in 2013.

Dairy
In the third quarter of 2013, the ROL for Dairy reached R$767 million, up 0.9 per cent year on year, driven by a rise in the average price of 9.0 per cent compared to the same period last year.

The volume was 7.5 per cent lower in the period. Dairy EBIT was R$68 million, up 98.9 per cent compared to the third quarter of 2013.

This result was driven by lower funding costs of milk, higher efficiency and greater dilution of expenses.

Food Service
The ROL for Food Services totalled R$389 million, up 3.9 per cent compared with the previous year.

In comparison with the previous quarter, net sales rose by 1.4 per cent due to an increase in volume of 3.9 per cent.

The Food Services EBIT was R$38 million, an increase of 43.0 per cent over the same period of 2013, with a margin of 9.9 per cent.