World Hog news:

[Mustang Sally Farm]

This Week's Pig Industry News
18 June 2012



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

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

Jackie Linden, Senior Editor

[Mustang Sally Farm]

News


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

 

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

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


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

 

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

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

[Mustang Sally Farm]

May Pork Exports Up in Volume and Value
27 June 2012


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

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

[Mustang Sally Farm]

Genesus Global Market Report - Brazil Hog Markets
28 June 2012

 

BRAZIL - Independent Brazilian pig producers have suffered greatly over the last decade, with long periods of losses followed by very short periods of low profits, Martin Riordan, Senior Consultant at Genesus Brazil.

However, since the global crisis of October, 2008, which caused an immediate drop of 45 per cent in pig prices in Brazil due to reduced exports, losses have been constant for producers in the south of the country and, even in other regions, profits have been meager and short-lived when they did appear.
 



Genesus Global Market Report
Prices for the week of June 18, 2012
 


Country

Domestic price
(own currency)

US dollars
(Liveweight a lb)
 


USA (Iowa-Minnesota)

1.01¢ USD/lb carcass

75.05¢
 


Canada (Ontario)

1.84¢ CAD/kg carcass

64.75¢
 


Mexico (DF)

21.13 MXN/kg liveweight

68.64¢
 


Brazil (South Region)

1.90 BRL/kg liveweight

41.60¢
 


Russia

95 RUB/kg liveweight

$1.29
 


China

13.54 RMB/kg liveweight

96.18¢
 


Spain

1.38 EUR/kg liveweight

78.08¢
 

This sad situation has given rise to an adage among producers: “The situation is never so bad that it can’t get worse.” When I was a producer, I witnessed this many times. When everything that could go wrong had gone wrong (pig prices falling, feed prices rising, exports banned by an important importing country), along would come yet another problem to make things worse (disease outbreak stopping pig movements, new taxes on production, etc.).
 
And the news that floods in daily over the Internet proves this adage time and time again. In the south of the country, the greatest problem is lack of buyers. A large part of production is now internal to the big integrators/processors that are self-sufficient and have not bought on the spot market in recent years. And their number is falling constantly due to mergers and fusions. One example: what used to be three large companies (Sadia, Perdigão and Avipal) have all been rolled into one huge conglomerate, BR Foods.
 
A medium-sized plant which was bought over by Doux from France some years ago has been in financial difficulties over the last year or so, and is now on the market. Meanwhile its producer suppliers have had difficulty getting payment, often having to wait for months.
 
So for those brave souls who still remain in production in the south, the biggest challenge is to find a buyer for their pigs. One large producer adopted a new strategy. He takes his lorry loaded with market hogs to one of the few remaining medium-sized plants and tells the owner to take the pigs in, pay whatever he wants and whenever he wants. This, as Jim Long would say, “is not price supportive”! Prices, dropping weekly, are now around US$ 0.43 per lb live weight, against a production cost of US$ 0.57 or more.
 
In the pig producing states of the center and center-west of the country, the situation may be slightly less dramatic, but losses are still heavy. The state of Mato Grosso produces vast quantities of corn and soybeans. In some ways it is the Texas of Brazil – everything there is bigger, even the armadillos. A farmer with only 2,500 acres is considered a vegetable farmer. And the hog units are bigger too, with many having 3,000 sows upwards. Traditionally, the margin on hog production was good there, due to very low corn and soy meal prices, even though the price of hogs was slightly lower than other regions due to shipping distances.
 
But now the situation has changed. Due to high feed prices and an extremely low hog price (about US$0.50 per lb live weight), producers are losing about US$30 per head. On a 5,000 sow unit, that mounts up quickly and it has been going on for months. The state pig association is announcing the demise of pig production in the state.
 
São Paulo state has also traditionally had better prices than the south. But the market has collapsed there too, leading to prices of about US$ 0.49 per lb, with costs similar to those in the south.
 
There is an unprecedented joint effort by pig associations across the country, coordinated by the national pig producer association ABCS, to garner political support. As a result, there will be a public hearing in Congress in Brasília on July 12, attended by the considerable number of Deputies who support the agricultural lobby and producers from many states.
 
However, experience suggests that the outcome will have little effect. While producers dream of a “just price” for their hogs, Brazil’s market economy is determining this just price, which is very low due to constant over-supply of the market, largely due to the number of big units established by the integrators, squeezing the independent producer’s space.
 
And new lines of debt financing, another favored plea, if granted, will have the result of allowing producers to continue oversupplying the market at a loss, building up their debts even more.
 
With no light at the end of the tunnel, it seems to me that smart pig producers will cease production as fast as possible. This is what I decided to do, two years ago, but five or ten years later than I should have. I have not regretted it once since then. But I still grieve on seeing what the remaining producers are currently going through. I know the anguish they are suffering.
 

[Mustang Sally Farm]

Cautious Growth for Global Pig Meat Sector
09 July 2012


ANALYSIS - The long term outlook for the global pig market is good with higher prices according to market analysts from GIRA Richard Brown, writes Chris Harris.
 
Disease problems in Asia with foot and mouth disease in South Korea and PRRS in China have been beneficial for prices in the rest of the world.
 
However, Mr Brown speaking at the recent World Meat Congress in Paris said that pig meat production in China is recovering and Chinese import volumes are decreasing.
 
One threat that could disrupt the global market is African Swine Fever that is running wild in Russia and this could have a knock on effect to pig prices.
 
"The big question is 'When are the wild boars going to wander across the border into Europe and the eastern EU countries?'" Mr Brown said.
 
Another issue that is likely to affect the global pig market is the weather and the effect it will have on grain prices.
 
He warned that the weather could produce a bad harvest worldwide. Planting in North America was early, and there should be good yields, but he said that the weather could still affect it all.
 
Mr Brown also warned that the Euro zone crisis is also hitting the market together with the problems the producers are going to face meting the new regulations for loose housing for pregnant sows.
 
"This could cause price disruption in the second half of next year," said Mr Brown.
 
"There could be a big price rise next year."
 
Overall meat production is growing hitting 40 million tonnes but the growth of consumption in countries such as China is also pushing global consumption up. Global growth in pork consumption is expected to push it up to 11.2 million tonnes.
 
EU production is also expected to grow and rise by about 1.703 million tonnes while Chia will see growth of more than 6 million tonnes.
 
There is also going to be a long term growth in feed grain prices as long as some countries continue with their present biofuels policies that are taking grain away from feed.
 
Mr Brown said that the US is expected to see a gradual growth in production following the drop in consumption and consequent drop in production because of the scares over "swine flu".
 
In the EU, the German industry has benefitted from a 30 per cent expansion since 2000. Spain and Denmark have seen a 17 per cent rise in their markets and the Netherland a four per cent rise. However, Poland has seen a 21 per cent reduction in pig numbers.
 
The rise in Chinese imports of pig meat to meet the rising demand caused by an increasingly urbanised and wealthier population has mainly been supplied by Canada, the US and EU with a small amount coming from Brazil. Other exporters have been prevented from exploiting the potential of the Chinese market because of sanitary barriers, Mr Brown told the delegates.
 
In the past Brazil was reliant in the Russian market but that market has now been cut because Russia has sanitary concerns about Brazilian production.
 
To make up for the loss of the Russian market, Brazil is expanding into other markets such as China and other Asian countries.
 
While countries such as Russia and China have increased consumption, production and imports because of the rising wealth, prices have also increase greatly.
 
In conclusion, Mr Brown predicted that 2012 will be a profitable years for the global pig sector, but "with caution".
 





Chris Harris, Editor-in-Chief

[Mustang Sally Farm]

This Week's Pig Industry News
30 July 2012


ANALYSIS - By far the leading topic in the news in the last week is the upward trend in feed prices. The effects of the present drought across much of the US on maize and soybean harvests have already been widely reported.
 Although the North American wheat harvest is looking good at this stage, harsh winter weather in the Russia, Ukraine and Kazakhstan have hit yields there and weather has also reduced harvests in other significant wheat-producing countries such as Australia, Argentina and Morocco.
 Four new outbreaks of African Swine Fever have been reported in the Russian Federation.

Prospects for global grain stocks and prices for 2012/2013 could be bleaker than some analysts are already predicting, according to a new report.
 
In May and then again this month, the International Grains Council cut its production forecast for wheat by five million tonnes to 665 million tonnes. This is more than 30 million tonnes below the estimates for the 2011/2012 harvest or a four per cent drop.
 
Much of the reduction in wheat production has been put down to the forecast poor harvest in the former Soviet Union countries – in particular Russia, Ukraine and Kazakhstan – where the harvest is expected to be 17 per cent down on the 2011/2012 estimates – a fall of about 24 million tonnes.
 
The European Union suffered a huge freeze during the winter and is expected to see a four per cent drop in its wheat harvest or five million tonnes although, according to France AgriMer, the EU’s own forecasts are less pessimistic, reducing production by just two million tonnes.
 
These falls in production have to be added to the poor harvests in countries such as Australia, Argentina and Morocco, where wheat production could be reduced by as much as 40 per cent because of drought. Australian wheat production is expected to be reduced by 19 per cent to 24 million tonnes, and Argentina will be see a drop of 14 per cent to 11.5 million tonnes.
 
By contrast, North American wheat production is forecast to rise with the US expecting an 11 per cent rise and Canada a five per cent rise, producing a total of around 87 million tonnes.
 
As reported previously, drought across much of the US, however, is likely to hit the corn harvest hard and soybean volumes will also be down unless rain falls in the coming weeks.
 
Dry conditions are increasing feed prices and quickly spelling financial disaster for livestock producers, according to Purdue agricultural economist, Chris Hurt.
 
Lower harvests will inevitably raise feed prices. However, according to a Texas AgriLife Extension Service economist, the future of corn prices and the impact on fed livestock continue to form an unfolding, tumultuous situation but they have not reached crisis point – yet.
 
Continuing hot, dry weather and the continuing rise in feed prices. Corn and soybean prices have reached record levels in recent weeks, with corn at times above $8 per bushel, soybeans above $17 per bushel and soybean meal above $550 per ton, report Ron Plain and Scott Brown of the University of Missouri.
 
Of course, many leading pig producers will have made plans to mitigate the risks of exposure to high prices. For example, the world’s largest pork producer, Smithfield Foods Inc. of the US has said it will import corn from Brazil, a move that reflects how surging costs for US feed grains are rippling through the livestock and meat industry.
 
In Brazil, the agriculture minister has set a minimum price of R$0.40 (US$0.20) per kilo of pigs. The measure aims to ensure the flow of production from producing regions and cover the cost of production of the sector. This is just one of a series of measures to be announced recently to alleviate the industry’s problems.
 
A modest improvement in pig prices in recent weeks is being overshadowed by a surge in feed prices in Scotland.
 
Australian feed grain prices increased dramatically in July, underpinned by developments in international markets.
 
The International Feed Industry Federation (IFIF) has voiced an urgent concern that the rise in feed and food costs will continue unabated for the foreseeable future, in large part due to the diversion of feed and food grains and oilseeds into biofuels. This will result in critical pressure on feed manufacturers worldwide and higher prices for consumers.
 
Changing the subject, three new outbreaks of African Swine Fever were reported by the Russian veterinary service in the regions of Krasnodar and Volgograd last week, and one new outbreak in Tver.






Jackie Linden - Senior Editor

[Mustang Sally Farm]

African Swine Fever Threatens All Europe
08 August 2012


ANALYSIS - The spread of African Swine Fever from the Caucasus to the east coast of the Crimean peninsula in Ukraine presents an alarming and concerning situation, writes Chris Harris.
 
The latest outbreak, discovered at the end of July and confirmed through PCR tests on samples taken from back yard pigs in the Zaporozhye region, is worrying because it represents not so much a gradual spread of the disease, but a dramatic jump.
 
The outbreak has occurred 170 kilometres from the Russian border. Until now the disease has been found mainly in the Tver, Ivanovo and Rostov regions to the north of Moscow, Bryansk and Smolensk to the west of Moscow and the Volgograd and Krasnodar regions to the south as well as outbreaks in Georgia.
 
The furthest the disease had been found outside these regions where it has largely been confined to back yard farms and wild boar populations - although larger pig farms have been infected and have suffered severe losses - has been in the St Petersburg area where the incidence was traced to illegally dumped pig carcases.
 
The leap across the border is likely to mean that similar illegal transportation of pigs or pig meat products has taken place or that transport has travelled from infected regions without proper biosecurity measures being carried out.
 
The most concerning aspect of the latest outbreak in Ukraine, where three pigs on a back yard farm dies for the disease and two others were destroyed is that the disease has now spread to another mainland Eastern European country.
 
The veterinary authorities in Russia have freely admitted that the disease is out of control in the country. Virtually every inspection made on farms in areas that are supposed to have tight biosecurity and sanitary measures in force has found breaches of the regulation.
 
Prosecutions are common and even officials within the official veterinary agency Rosselkhoznador at local level have been found wanting in their enforcement of control measures.
 
Earlier this year the Food and Agriculture Organisation of the United Nations' Chief Veterinary Officer Juan Lubroth warned: "African swine fever is fast becoming a global issue.
 
"It now poses an immediate threat to Europe and beyond. Countries need to be on the alert and to strengthen their preparedness and contingency plans."

Measures recommended for countries by FAO include risk analyses to evaluate the situation and assess potential consequences. These analyses should pave the way for fully-fledged contingency plans and provide the rationale for selecting disease-control strategies.

Over the last year Denmark, Spain, the Czech Republic, Belarus and Croatia have all held simulation exercises to plan out what action to take in the event of an outbreak.
 
And the concern over the present incidence in Ukraine has placed other EU countries on alert.
 
The German Agriculture Ministry this week warned: "This epidemic in the Russian Federation and other neighbouring states has been rife for a long time and there is a risk that it might be introduced into the European Union. Already a number of measures at national and EU level have been taken to prevent this.
 
"At the external borders of the EU increased checks are being carried out and contingency plans to combat animal diseases have been adjusted."
 
Measures that have been taken include the ban on the import of live pigs and pork products from affected countries into the EU.
 
However the German Agriculture Ministry has warned that the pathogen can be carried on food such as pork, raw sausages and salami if they are brought in from regions that are at risk and the disease can be passed on in food waste and through the wild boar population.
 
The Federal Ministry of Food, Agriculture and Consumer Protection warns "Bring no such food from areas affected with the African swine fever."
 
Following the Ukraine outbreak a report from Dr Helen Roberts for the UK's Department of Agriculture Food and Rural Affairs also warns that its cause is likely to be the movement of pigs, pig products or vehicles.
 
"The source of disease is not known but if genetic sequencing is carried out and shows the close relationship with the strains in the Caucasus, that will indicate movement of products in all likelihood either by road or by sea into this area. This latest jump is not entirely surprising, but does raise the issue of controlling imports of animal products and instigating swill feeding bans in backyard premises," Dr Roberts reports.
 
She adds: "We consider that the risk of introduction by legal trade in susceptible livestock or products is negligible as EU rules prohibit imports of such trade from Ukraine. It is therefore important to uphold the ban on swill feeding, to ensure adequate cleansing and disinfection of vehicles returning from infected regions and safe disposal of catering waste.
 
"Importing meat or meat products (including ham, salami, sausages and other delicacies) from Ukraine as personal imports is illegal and it is important that this control measure is observed.
 
"As we have previously stated, countries and regions where certain risk factors, such as a high proportion of backyard pig farms, wild boar contact, suitable vector (Argasid tick) populations or practicing swill feeding are at greater risk than those EU MSs with mainly high biosecurity commercial pig farms (such as the UK). Nevertheless, the persistence and geographic spread of ASF makes it a threat to the whole of the EU and it is imperative that control measures are applied effectively and regular exchange of information and expertise is maintained."






Chris Harris, Editor-in-Chief

[Mustang Sally Farm]

Honduras Still Free of Classical Swine Fever
15 August 2012

HONDURAS - After one year, Honduras is still free of classical swine fever (CSF).

Due to the support provided by Senasa technicians, pig producers, veterinarians, processors, retailers and the state government, the country is still CSF-free after one year.
 
All pig producers are encouraged to continue using good practices in the area as this is the way to achieve healthier, bigger and more competitive pig production.
 
This production will open the door to more domestic and international trade operations.
 

[Mustang Sally Farm]

Worldwide Pork Shortage Predicted
07 September 2012



 
GLOBAL - The world’s pig farmers are warning of a shortage of bacon and pork next year because pig-feed has become unaffordable following disastrous growing and harvesting weather. Governments are becoming increasingly concerned.

Around the world, pig farmers are selling their herds because they can no longer afford to feed their pigs. In the United States the government has introduced a pork-buying programme in a bid to keep its pig farmers in business. And the Chinese government is putting pork into cold storage, as a buffer against shortages and high prices next year.

 Pig industry leaders from across the European Union met in London on Friday to explore ways to ensure pork remains the world’s most affordable red meat. They reported that pig herds are being sold because prices are not rising fast enough in supermarkets to cover the cost of record-high pig-feed costs.

 "It usually takes at least six months for higher production costs to filter through to shop prices — but pig farmers simply haven't got that long," said National Pig Association (NPA) chairman, Richard Longthorp, who farms outdoor pigs in Yorkshire.

"Some have got only a few weeks left before they run out of credit at the bank and have to sell up, and this is happening all over Europe.

 "Pork has always been the affordable meat. It’s half the price of beef and lamb,' said Richard Longthorp. 'We urgently need the retail price to go up by a modest amount to keep pig farmers in business, but we want it to remain the most affordable red meat.

 "Some forecasters believe the price will increase by over a third eventually. But we would rather see a more immediate, modest but sustainable rise that would allow producers to get into profit sooner thereby preventing the wholesale reduction in the pig herd with the inevitable record prices that would follow."

 Britain's pig farmers are asking shoppers to help save British pork and bacon, which is widely acclaimed for its taste and quality, by always looking for the British Red Tractor logo.

[Mustang Sally Farm]

Sow Management of 2,600 Animals in a Closed System
10 September 2012

 

ROMANIA - For more than 20 years already, Big Dutchman has supported pig farmers in post-socialist Europe in reconstructing outdated production units. Recently also in Roman in the East of Romania. The company Suinprod S.A. Roman of the Kosarom group entrusted the pig equipment supplier from Vechta in Germany with the extensive reconstruction of a sow management farm for 2,600 animals.
 
This impressive project has now been completed and the company plans for producing an annual 75,000 finishing pigs in a closed system. Big Dutchman Pig Equipment GmbH was responsible for the pig equipment installed. The supply of the buildings including site supervision was organized by the Polish general contractor Agricon Spólka z o.o. belonging to the Big Dutchman group of companies.

A big compliment

In 2008, the pig equipment supplier Big Dutchman Pig Equipment GmbH has already been working for Suinprod when it equipped a farm for the reproduction of 650 gilts. With remarkable success, as the follow-up order shows: the company now had to equip the impressive number of 23 new houses in Romania. The farm was officially opened with a ceremonial act in presence of numerous guests as well as representatives of the EU commission and the Romanian department of agriculture. Neculai Apostol, the founder of Kosarom and current majority shareholder of the group of companies, also attended the inauguration.
 
Modern sow management in Roman

All houses from the service center to the farrowing area and through to the construction of buildings for rearing and finishing have been equipped with the ultra-modern pig equipment and pig feeding systems from Vechta in Germany. Moreover, the Romanian company is well-prepared for the new EU guideline on livestock husbandry.
 
According to this guideline, pregnant sows may only be kept in groups as from 1st January 2013 onwards and the waiting area has to be equipped entirely with single stalls. Up to 40 sows can be housed in one pen. All sows within a group have a separate feeding place where they can eat without being interrupted so that aggression during feeding is avoided.

The construction experts

The Big Dutchman subsidiary Agricon Spólka z o.o. is one of the leading general contractors for the planification and realisation of livestock houses. Besides concept and implementation of new projects of any dimension one of the most important tasks of Agricon Spólka are extensive reconstruction projects as the one in Roman. The company has already implemented a large number of livestock projects in foreign countries among others in Kazakhstan, Russia, Spain and Ukraine.
 

[Mustang Sally Farm]

Viet Nam: Hog Markets
21 September 2012

 

VIET NAM - General livestock production as estimated by the General Department of Statistics (GSO) saw, for the first seven months of 2012, total meat production reaching 2.6 to 2.7 million tons. According to estimates by Department of Livestock, meat production in the country for July is estimated at 300,000-315,000 tons of meat, writes Ron Lane, Senior Consultant Genesus Viet Nam and Meggie Vo, Research Assistant.
 
Livestock, including buffaloes and cows in the country have decreased slightly, about 5-7 per cent over the same period in 2011. Although there have been recent challenges in the health and thus number of pigs in the country, the comparison with the same period in 2011, sees the country's pig population has increased by about 1 to 1.3 per cent.
 
Poultry has increased from 5.5 - 6 per cent over the same period as well. Poultry had been affected by avian influenza (AI) in March and April. However, because of the high flock increase at the end of last year and because there has been better control of AI this year, then the overall flock has increased. Compared to early 2012, poultry prices have decreased from about 20 per cent up to a sharp decrease from 38-40 per cent. This will also cause the farmers to produce in moderation and should see a rapid reduction in total numbers mainly due to lack of capital and because of low economic efficiency.
 
Pork meat production as compared to total meat production represents about 73 per cent of the total meat produced in the first seven months.
 
Pig production during the first seven months of 2012 was quite difficult, due to disease challenges and increasing cost of production. Because of the use of banned substances to promote lean growth in pigs (substances such as clenbuterol) this, in turn, caused the consumers to change from pork consumption to the other meats and seafood.

Both consumption and pig prices decreased rapidly. The lending institutions have shown reluctance in working with swine farmers and thus capital loans and operating loans are quite difficult for swine farmers to secure.
 
According to a recent survey of the GSO (June 2012), the total number of pigs in the country was 26.7 million, up 1.5 per cent over the same period in 2011.
 
In July and in the North part of the country, the price of market pigs ranged from 37,000 to 42,000 VND/kg ($1.77 US/kg to $ 2.01US/kg) while in the South, the average selling price for market pigs ranged from 32,000 VND/kg ($1.53 US/kg) to 38,000 VND/kg ( $ 1.82 US/kg).
 
In July, the price of some animal feed ingredients increased from June: dry cassava 5,565 VND/kg ($0.267 US/kg) (up 6.0 per cent) and soybean meal 15,603 VND/kg ($0.748 US/kg) (up 15.2 per cent), Prices of some raw materials decreased slightly: corn 7,035 VND/kg ($ 0.337 US/kg) (down 2.9 per cent); rice bran 6,720 VND/kg ($0.335US/kg) (down 3.5 per cent) lysine 46,200 VND/kg ($2.22 US/kg) (down 4.0 per cent) and methionine 99,750 VND/kg ($4.78 US/kg) (down 6.9 per cent). Complete mixed feed for pigs from 60 kg to market weight was 9,260 VND/kg ($0.444 US/kg). This is down from 9336 VND/kg ($0.448 US/kg) for last month.
 
-In 2011, Viet Nam imported over 8.9 million tonnes of feed ingredients valued at $3.7 million US. According to Le Ba Lich, the president of Viet Nam Animal Feeds Association, the imports accounted for more than 62 per cent of the inputs for feed production (total in Viet Nam was 14.3 million tonnes of livestock feed manufactured). He said that 4.8 million tonnes were protein sources including soybean meal and meat and bone meal and 3.8 million tonnes were energy sources including corn, rice bran and wheat. In 2011, Viet Nam produced 0.87 million tonnes of corn, 0.57 million tonnes of rice bran and 2.3 million tonnes of wheat. The recent drought in the US will have a huge impact on feed prices in Viet Nam, since imports account for 62 per cent of the total livestock feed consumed in Viet Nam.
 
As reported by the General Statistics Office, the consumer price index (CPI) in July for the country declined 0.29 per cent over the previous month. After 38 consecutive months of increases, both June and July have shown declines. As compared with same month last year, CPI rose by only 5.35 per cent, very close to the inflation expectations of the year according to government officials. Generally, the first 7 months of 2012, CPI increased by 11.20 per cent over the same period in 2011. There were abundant food items and food supplies and this commodity group price indices continued to fall making food and food services decrease by 0.47 per cent.

August 2012

Livestock production in August continues to show many difficulties due to the continuation of the epidemic disease (PRRS); the influence of the state of using banned substances in animal (clenbuterol) shifts the consumers away from pork and thus overall consumption is reduced; all prices of pork, chicken and eggs have continued to decline and this affects the larger operations cash flow; livestock farmers are reassessing their business plans-some are shutting down their operations and banks are reluctant to lend capital and operating funds. According to estimates of the Department of Livestock, meat production in August was estimated at 275 - 290 thousand tons of meat (about 25 thousand tons less compared with the previous month).
 
In August and in the North part of the country, the price of market pigs ranged from 35,500 to 41,000 VND/kg ($1.70 US/kg to $ 1.97US/kg) while in the South, the average selling price for market pigs was about 35,750 VND/kg ($1.71 US/kg). For interest, poultry meat (white portions) is now around 19,000 to 25,000 VND/ kg ($ 0.91 to $1.20US/kg) down 15.4 per cent from July.
 
In August, most feed ingredients showed a rapid increase. The price of most animal feed ingredients increased from July especially rice bran 7,245 VND/kg ($0.347US/kg) (up 7.8 per cent). There is anticipation that the feed ingredients will rapidly rise in the last portion of this year.

Complete mixed feed for pigs from 60 kg to market weight was 9,429 VND/kg ($0.452 US/kg). This is up from 9260 VND/kg ($0.444 US/kg) for last month.
 
The demand of the livestock sector on the import of animal feed and raw materials continued to decline in August. According to estimates by the General Statistics Office, wheat imports in August is estimated at 120 thousand tons, valued at $36 million USD, down about 38 per cent from the previous month. The import value of animal feed and raw materials for the year has dropped by 17.8 percent to a total of about $180 million USD. (Viet Nam spent USD 1.29 billion on imports of animal feed and materials in the first seven months of this year-less by 5.5 per cent against the same period in 2011).
 
After two months of consecutive decline, the August consumer price index increased by 0.63 per cent from the previous month, mainly caused by the impact of the three recent petrol price increases (on the 20/7, 01/8 and 13/8) with a total per liter increase of 2400 VND/liter ($0.115US/liter) for gasoline and 1650 VND/liter ($0.079US/liter) for diesel); fuel price CPI component rose 8.02 per cent. This in turn causes a higher transportation charge for swine producers goods and services. Consumer price index in August 2012 increased by 2.86 per cent compared with the end of 2011 and by 5.04 per cent compared to the same period in 2011. Consumer Price Index average for the first eight months of 2012 increased by 10.41 per cent compared to the average of the same period in 2011. Overall, food and catering services decreased by 0.18 per cent.

What to look for over the next few months

During the months of July and August, the Foot and Mouth Disease situation in Viet Nam was reported to be under control and stable. Currently, many herds have completed new rounds of vaccination and thus enhanced immunity levels. Recently, the Viet Namese Prime Minister, Nguyen Tan Dung stated that the Ministry of Agriculture and Rural Development would enhance animal quarantine and inspections services along the country's borders. However, the continued challenge has been the smuggling of all livestock into Viet Nam from neighboring countries. This can cause the drive for new services, and the risk of FMD outbreaks continues to be extremely high. (Within the country there are no provincial services for FMD-only National control measures.
 
With PRRS (Blue ear disease), the major problems occurred in April and May. The number of districts and provincial outbreaks for this year has increased compared to 2011. The total number of affected pigs was also higher, So far in 2012, the number of infected pigs that were destroyed is about 66 per cent, while the 2011 figure indicated about 96 per cent of the diseased pigs were destroyed. Most of the recent outbreaks occur initially in the midland and northern mountains including Lao Cai, Dien Bien, Lai Chau, Yen Bai, Hoa Binh and Phu Tho; then spreads down to the Red River Delta provinces such as North Ninh and Nam Dinh. In July, 2012, the country had 05 provinces: Lang Son, Dong Nai, Binh Duong, Nghe An and Dak Lak with PRRS at less than 21 days. Currently for the month of August, the Country has 03 provinces: Nghe An, Dak Lak and Cao Bang with PRRS at less than 21 days. PRRS was first detected in the northern mountainous province of Lao Cai on January 11 and has since spread to 123 districts within 13 provinces nationwide, affecting 34,000 pigs of which 21,700 had to be destroyed).
 
Farmers have been reluctant to use vaccines for PRRS as the drop in market pig prices has caused farmers to try and reduce their costs. According to Hoang Van Nam, head of the Animal Health Department under the Ministry of Agriculture and Rural Development, this lack of vaccination protocols may cause more outbreaks in the southern regions (especially Dong Nai and Bac Lieu provinces). Unusual weather conditions and high humidity makes the spread of PRRS easier. Also, reported transportation of diseased pigs along with the consumption of diseased pork leads to a higher incidence of PRRS in these areas of Viet Nam during the rainy season.
 
The Peoples' Committee of Hanoi City has been offering financial support for farmers who will move outside Hanoi City. The producers can continue to raise all types of livestock--100 commercial pigs, 2,000 chickens or 10 cows and buffaloes. The new farm has to meet required conditions such as be 500m from schools and hospitals. The land base has to be greater than10, 000 sqm. The City has plans to reduce the number of small-scale livestock households to about 40 per cent (by 2015) of todays' farm numbers within the city limits.( In 2010,Hanoi had about 5.9 per cent of the total pigs found in Viet Nam itself-1.625 million head as compared to the Country's total of 27.373 million pigs).
 
Recently, the Dong Nai Provincial Pig Farmer Association approached the Bank for Agriculture and Rural Development of Viet Nam to have the Bank consider the use of their on-farm pig inventory as collateral for loan security. The Bank rejected the proposal as they claim they can not validate the collateral. Currently, as mentioned in previous reports, farmers have poor access to bank loans and also that interest rates can be quite high.
 
Viet Nam Livestock Association claim that with current price ranges throughout Viet Nam, farmers are losing from 700,000 VND ($ 33.58 US) to 1,000,000 VND ($ 47.96 US) per 100 kg market pig (liveweight prices).

[Mustang Sally Farm]

Brazilian Pork Faces Barriers in Argentina Again
27 September 2012

BRAZIL and ARGENTINA - Pork exports from Brazil to Argentina have again hit barriers, just four months after the agreement between the two countries to restore the flow of trade.

 According to Pedro de Camargo Neto, president of Abipecs, the Brazilian association which brings together the industrial exporters segment, three weeks ago businesses were suspended.
 
"The Argentine government is not releasing import declarations. This month only we are continuing with the purchases that had already been approved," he said.
 
In the first months of this year, imports of pork from Brazil fell from 4,000 tons per month to just 94 tons, recorded in May. An agreement between the governments of the two countries last month saw the export of 3,500 tons from Brazil into Argentina.
 
A walkout in the Camargo Neto sought to make the secretary of Brazilian Foreign Trade, Tatiana Prazeres, to address the issue.

These companies have pledged to send information to the Brazilian government over the pace of pork exported. The Brazilian government intends to proceed cautiously on the issue.
 
The understanding of industry officials in the trade area is that with the normalisation of Russian imports of Brazilian pork, the trend is that exports of prok from Brazil to Argentina will go down.
 
According to Ghosn, the exporters are being informed by importers that the Argentine government would have started selective retribution due to the resistance of Brazil in opening the local market to crustaceans.
 
Argentina produces crawfish but the Brazilian market has been closed to imports since 1999. The Argentine government has increased pressure on the Brazil due to the fishing industry crisis in Argentina. This year, according to data from the Argentine Ministry of Agriculture, there was a 24 per cent drop in sales of shellfish exports between January and August this year compared with 2011.
 
According Martín Gyldenfeldt, director of CAICHA in Argentina, "what was agreed is the entry of Brazilian pork to serve as raw materials for our industry. But what has been observed is buying in increasing volumes of manufactured products, finished products, such as baked ham, for example."
 
The pig industry in Argentina is structurally dependent on imports. The country annually produces about 300 tons of pork, for an apparent consumption of 360 thousand tons. The demand is met by 85 per cent in Brazil. The remainder is divided between Chile and Denmark, which supplies Argentina with smoked products.

[Mustang Sally Farm]

Brazil, Argentina Agree on Pork Trade
05 October 2012

BRAZIL AND ARGENTINA - The Minister of Agriculture, Livestock and Supply, Mendes Ribeiro Filho, has announced the agreement with Argentina's ambassador in Brasília, Luis María Kreckler, to restore the entry of various types of cuts of pork to Brazilians there.

There was also progress made by the Brazilian government on the imports of apple, pear and quince from Argentina.
 
In a statement, Ms Kreckler said the success of the negotiations conducted by the Ministry of Commerce, the Embassy of Argentina in Brazil and the Ministry of Agriculture, is the result of commitment to the highest levels of both governments to prioritise the channels of dialogue.
 
The Minister Mendes Ribeiro reported that the search for consensus and understanding is the best way for both countries to become stronger together than on their individual strengths.

[Mustang Sally Farm]

New Animal Welfare Add-Ons for Broilers, Finishing Pigs
12 October 2012

GLOBAL - GLOBALG.A.P. Members have presented two new voluntary add-on modules to all interested stakeholders.

Since November 2011, the GLOBALG.A.P. Stakeholder Committee on Animal Welfare has worked on the establishment of criteria for animal welfare which go beyond legal requirements, and which define the contents of complementary and voluntary add-on certifications for livestock producers. Members worked on two sets of criteria –one for broilers and one for finishing pigs. The developed criteria are science based, feasible, economical viable and auditable.
 
The Stakeholder Committee consists of representatives from producers, processors, retailers, certification bodies, academia and NGOs.

Norbert Rank, Quality Lead Poultry, McDonald´s Europe, and Chairman of the GLOBALG.A.P. Stakeholder Committee on Animal Welfare (SHC AW) said: “Sustainable agricultural practices are essential to successful and responsible business development. Animal welfare is a critical component of this and is very much in the minds of our customers and stakeholders. Their expectations go often beyond legal requirements. The GLOBALG.A.P. voluntary add-on on animal welfare is highly welcomed as a tool to help to monitor animal welfare practices that go beyond legislation at farm level.”
 
Please join the SUMMIT2012 Livestock/Animal Welfare Roundtable Session on Tuesday, 6 November, at which SHC AW members will present these new add-on modules. Other related topics will be discussed including the responsible use of antibiotics, as well as the current and future challenges of zoonisis.
 
The Breakout Session - Livestock on Thursday, 8 November will highlight these topics with speakers from the University of Calgary, the OIE, TAFS Forum and ASDA.
 

[Mustang Sally Farm]

Viet Nam Hog Markets
18 October 2012

 

VIET NAM - On a national scale, the first nine months of the livestock situation has been quite complicated. Livestock production, compared with the same period last year, saw breeding intentions and actual matings improve and showed positive results in the first two quarters, but tended to decrease in the third quarter due to difficulty in prices (lower livestock prices and higher feed costs) and strong disease issues, especially with blue ear (PRRS) in swine, writes Ron Lane.

With cattle, except for dairy cattle which saw a large increase in numbers and thus increased milk production, the number of cows and thus meat production fell compared with the same period last year. Pig and poultry production slightly increased respectively by 2.6% and 7% compared to the same period last year. Feed prices and other costs for livestock remain high while the price of livestock for the producer is low. Livestock diseases caused problems with still some frequencies in some localities, especially avian and blue ear disease. In addition, in the first few months of this year, the banned use of products such as clenbuterol, caused a heavy drop in consumption of pork and thus prices as consumers turned to other, assumed safer products.
 
In August and in the North part of the country, the price of market pigs ranged from 35,500 to 41,000 VND/kg ($1.70 US/kg to $ 1.97 US/kg) while in the South, the average selling price for market pigs was about 35,750 VND/kg ($1.71 US/kg). With an 8% drop, these prices would be near 32,660 to 37,720 VND/kg($1.57 to $1.81USD/kg) in the North while in the South, the average selling price for market pigs was about 33,000 ($1.58 USD/kg) for the month of September.
 
The pig prices have been falling since Tet and are now 32,000 to 38,000 VND/kg throughout the total country ($1.53 to 1.82 USD/kg). At these prices, the farmers have losses ranging from VND 600,000-1.3 million VND ($ 28.76 to$ 62.32 USD) per pig. "This situation is discouraging and is leading the industry into a crisis," said Nguyen Thanh Son, Deputy Head of the Husbandry Department.
 
As mentioned, the purchase price from farmers has decreased by about 8%, but through many supply chain intermediates- such as traders, transportation, slaughtering, processing and distribution, consumers still had to buy pork at a very expensive price. Looking at surveys taken at the markets, these data show that pork meat prices have started to decline from 2,000 to 5,000 VND/kg ($0.10 to $0.24 USD/kg) compared with the previous month. However, boneless loins are priced at 120,000 VND/kg($5.75 USD/kg) and buttocks-hams are at 85,000 to 95,000 VND/kg($4.07 to $4.55 USD/kg). Compared to mid-July, pork in the North has dropped to an average of 63,000 VND/kg ($3.02 USD/kg) and in the South has dropped to 55,000 to 57,000 VND/kg ($2.64 to $2.73 USD/kg) for similar pork products.
 
According to calculations by the Department of Animal Husbandry and made by Mr. Nguyen Dang Vang, a market pig takes from birth to finished weight (100 kgs) about 5 months. Meat on the market today is mainly from pigs born in mid-April. But starting in May, when the live hog price at that time was 60,000 VND/kg($ 2.88 USD/kg), many producers had increased breedings. With continued good prices, well into last June and July, meat prices continued to rise, and this in turn caused farmers to expand production scale. All the pigs born in May and June will be on the market in late September and October. This will mean plentiful supply and the price of pigs and pork from the end of September and into the 4th quarter will be significantly reduced. This is also the reason why Mr. Vang’s information from now to the Lunar New Year, predicts the market will not lack in total pork supply. In addition, according to Mr Nguyen Dang Vang analysis: because of the current Vietnamese pig price plus shipping costs to China, the traders in China are not buying anymore from Vietnam. The domestic supply will not see a shortage like a few months ago. Thus, the price for pigs will remain low.
 
Estimated total pig population in the Country to mid-September is approximately equal to the number for the same period as last year. However, market pigs (hog finishers) saw their total output increased by 2.6% compared to the same period in 2011. Notably, the higher increase in the number of finished pigs (in the first nine months) was mainly due to a sharp increase of finisher pigs marketed during the first 6 months of 2012. In the recently completed third quarter, market pig production decreased due to reduced selling prices leading to reduced breeding, reduced on-farm numbers and lower re-investment in swine farms. This could lead to the lower supply of pigs in the last month of the year.
 
There has been significant commodity price increases in September. Accordingly, the price of concentrates has increased by about 400 VND/kg($0.02 USD/kg) and complete feed has increased by about 200 VND/kg ($0.01 USD/kg) Furthermore, from the beginning of August, the price of animal feed has increased two times with a total increase of 800 VND/kg($0.04 USD/kg) for concentrate and 300 VND/kg ($0.015 USD/kg) for complete feed. The price of complete feed is expected to rise a further 200 VND/kg($0.01/kg) in October.
 
According to the feed manufacturers, the prices of raw materials such as corn, soybean meal, fish oil and other commodities have increased dramatically pushing feed prices higher as noted by Mr. Pham Duc Binh, Deputy Chairman of the Association of the Vietnamese Feed. The reason, according to Mr. Binh is due to the drought situation in the USA; dryness in Russia that can reduce the crop size for soybeans, corn and wheat and China is developing a strong livestock feed growth and thus is putting pressure on global supplies and prices.
 
In conversation with the Ministry of Agriculture and Rural Development, it was mentioned that compared with July and August, the domestic price of rice bran was 7.245 VND/kg (an increase of 7.8% to the previous month). All feed prices increased by about 2% for complete feed for pigs. Finishing pig feed from 60 kg to the finished stage (around 100 kg liveweight) is close to 9,430 VND/kg ($0.452 USD/kg).
 
According to the Ministry of Agriculture and Rural Development, wheat imports into Vietnam in August were 205.000 tons worth a value of $ 66 million USD. Total imports for the first 8 months of this year, reached nearly 2 million tons worth a total value of $ 584 million, up more than 22% in volume and 8.1% in value compared to the first 8 months in 2011. Looking at all feed commodities and raw materials (ingredients), for the first eight months of 2012, Vietnam spent a total amount of $1.48 billion USD on all imports.
 
Rice exports hit a record in August and during the first eight months have increased 1.4% compared to the same period last year and was able to pass a record 7.11 million tonnes as compared to the previous year.
 
Foot and mouth disease: In September, FMD was still controlled in most localities. There were no major outbreaks. Some old provincial outbreaks in the Red River Delta, Northern Mountains, North Central, South Central and Highlands regions, still maintain a high risk alert for seasonal outbreaks and are closely monitored.
 
Blue ear disease: In September, the country has more signs of PRRS in Bac Can and Can Tho Provinces. The local outbreak is being monitored. In Dak Lak, a previous outbreak continues to spread. In Cao Bang, the spread has been temporary controlled. Nghe An province has announced the end of signs of PRRS. Overall, the PRRS disease tends to decrease and is gradually being controlled. However, the risk of continuing to be spread and to occur in the near future is very high. Currently, there are 4 provinces that have PRRS: Dak Lak, Cao Bang, Bac Can and Can Tho (have PRRS less than 21 days).
 
The planned target for CPI for 2012 is less than 10%. Year on year (September/2012 compared with September/2011), the CPI increased by 6.48%. This is higher than the corresponding CPI of the previous two months (August rose 5.04% and July rose by 5.35%), but lower than that of the months from August, 2011 to June, 2012). It is expected that for the next 3 months, the CPI could increase about 1.5% month and this would show a CPI of about 9.93% - that is still within the goal as noted before.
 
In Vietnam, consumer spending on food accounts for about 40% of the total expenditures in a household. Increased food production in 2011 and continued growth in the early parts of 2012, resulted in lower food prices for the first eight months of 2012. Now, food prices are increasing again. World food prices are forecast to increase due to the impact of drought, storms and poor growing conditions in some countries. The farmers suffer when food prices are reduced while input costs of production, prices of commodities and other consumer services have increased. The State has been urged to give the producers’ support with the purchase of temporary storage of food, by increasing exports and to provide general support for aquaculture.
 
An official from the Union of Producers and Employers of Meat Industry (UPEMI) which is part of the European Union (EU) mentioned that several initiatives are in the works to enhance exports of meat-mainly pork and beef- to Vietnam. Agniezka Rózánka, with UPEMI’s International Projects said that meetings with Vietnamese importers to help them in improving meat quality and foodstuff safety will be conducted. They will also meet with Government officials and Vietnamese agribusinesses to provide information and extension services on farming technologies.