Thursday, February 05, 2009Print This Page
New Meat Plant in Kapuvar
HUNGARY - Meat company, Kapuvari Hus, has opened in a new meat processing plant.



Hungarian meat company, Kapuvari Hus, plans to launch a new meat processing plant in Kapuvar, reports Furazh.

The new company is expected to begin production in the first half of 2009. Kapuvari has invested nearly 500 million forints (HUF; €1.68 million or US$ 2.14 million) in the project. Nearly HUF 175 million will be covered by the state.

During 2009, Kapuvari Hus plans to receive proceeds of around HUF 16 billion forints, compared with HUF 14 billion last year.

Kapuvari Hus was founded in 2003.

Thursday, February 05, 2009Print This Page
Pig Production in Free-Fall
POLAND - The pig herd in Poland has fallen to its lowest since 1970, writes Michal Kolesnikow, analyst at the BGZ Bank. No recovery in terms of numbers is expected before the end of this year although prices and margins are improving.



According to the latest data from the Polish National Statistical Office (GUS), in November 2008 the pig herd fell to its lowest level since 1970. By the end of November, there were 14.2 million pigs in Poland, 7.7 per cent down on July 2008 and 19.2 per cent down year-on-year. Some 4.6 million pigs have disappeared since the last peak of the 'pig cycle' in July 2006. The magnitude of the contraction is comparable to the size of the whole pig herd in the UK.

The magnitude of the fall in numbers is, however, surprising. Previous forecasts projected the herd to contract to 14.7 to 15.0 million head. The further fall in sow numbers is also surprising because profitability of pig farming has increased considerably since last summer due to diminishing feed prices and a strong increase in slaughter pig prices.

The fall in sow numbers (6.4 per cent down on July) means that the decreasing trend in herd size will now last longer, at least until July 2009. The next survey at the end of March 2009 may see as few as 13.5 to 13.7 million pigs. As far as pigs weighing over 50 kg intended for slaughter are concerned, their number will contract in March and then seasonally increase in July. Not until November 2009 is some rebound in the underlying trend expected.

As a result, pig meat production in Poland this year may be eight to ten per cent down on the previous year which in turn already had been ten per cent down on 2007. Many abattoirs will have enormous problems sourcing pigs. Meat processors will also face great problems. Due to recent strong depreciation of the Polish zloty against the Euro, imported raw meat from Denmark, Germany or Netherlands has become very expensive. The processors will have limited capability to pass through the cost increases as consumer confidence is dwindling and retailers are looking to keep the prices as low as possible. That will squeeze already insignificant margins in the meat industry. A record high number of bankruptcies is likely.

On the other hand the pig producers' situation will improve considerably. Although some increase in feed prices is expected, farm-gate prices of slaughter pigs will hit record high levels. Through most of the year prices will fluctuate at around 25 to 30 per cent above the five-year average price and in the third quarter may for the first time in history exceed 5 zloty (PLN) per kilogram liveweight.

Note: Michal Kolesnikow is Senior Agricultural Markets Analyst in the Macroeconomic and Sector Analyses Department of BGZ Bank. BGZ Bank is a leading bank in the Food and Agri Sector in Poland. Its main shareholders are Rabobank and State Treasury.

Tuesday, February 03, 2009Print This Page
EU Pig Prices: Trend Reversal Being Anticipated
EU - And once more the knot could not be cut. This week again, the longed-for trend reversal is not to be seen on the European pigs-mature-for-slaughter market.

 

It looks as if there were no leeway upwards. The EU member countries mostly quote unchanged prices. Among them is Germany, usually setting the pace, as well as is Spain, France or Denmark. The devaluation of Eastern European currencies has lead to losses in the export business, currently impeding prices to increase.

Demand is expected to improve in a medium-term perspective, with about 3 million less pigs now being held in Poland than were a year ago and with Russia having suspended pork imports from nine US producers.

In Belgium and Austria, last week’s optimism could not be maintained; the price increases have been cancelled completely. In the Netherlands, too, the price went down as a result of weak demand on the part of the slaughter companies.

A pleasant development is reported on from Great Britain alone. There, a long-term acceleration in demand is hoped for, making the price go up by a corrected 8 cents.

Trend: It is most probable that sufficient quantities of pigs mature for slaughter will be on offer throughout Europe next week. However, a little patience seems to be needed with regard to the yearned-for price increase.

Week D NL DK B F PL CZ IT ESP AUT GB SWE IR
51 Week 1,416 € 1,367 € 1,322 € 1,341 € 1,351 € 1,411 € 1,401 € 1,494 € 1,382 € 1,410 € 1,399 € 1,238 € 1,406 €
52 Week 1,356 € 1,328 € 1,295 € 1,279 € 1,330 € 1,410 € 1,492 € 1,494 € 1,382 € 1,350 € 1,344 € 1,132 € 1,406 €
1 Week 1,356 € 1,328 € 1,295 € 1,279 € 1,274 € 1,429 € 1,489 € 1,418 € 1,382 € 1,350 € 1,315 € 1,093 € 1,406 €
2 Week 1,356 € 1,328 € 1,268 € 1,279 € 1,253 € 1,397 € 1,446 € 1,418 € 1,363 € 1,350 € 1,395 € 1,133 € 1,329 €
3 Week 1,306 € 1,289 € 1,267 € 1,255 € 1,250 € 1,425 € 1,442 € 1,494 € 1,316 € 1,300 € 1,464 € 1,147 € 1,329 €
4 Week 1,306 € 1,289 € 1,240 € 1,255 € 1,250 € 1,294 € 1,360 € 1,481 € 1,284 € 1,300 € 1,473 € 1,175 € 1,329 €
5 Week 1,306 € 1,289 € 1,214 € 1,279 € 1,249 € 1,289 €   1,481 € 1,284 € 1,330 € 1,396 € 1,158 € 1,291 €
50 Week 1,306 € 1,270 € 1,213 € 1,255 € 1,250 €     1,354 € 1,284 € 1,300 € 1,480 € 1,183 € 1,291 €




Explanation
1corrected quotation: The official Quotations of the different countries are corrected, so that each quotation has the same base (conditions).
base: 56 per cent lean-meat-percentage; farm-gate-price; 79 per cent killing-out-percentage, without value-added-tax (VAT)

Thursday, February 05, 2009Print This Page
EU Says Livestock Emissions May Mean Less Meat
EU - The European Parliament warned about the livestock industry’s emissions while stopping short of urging a reduction in meat consumption to fight global warming.



The European Union assembly’s balancing act highlights the potential conflict between tackling climate change and ensuring adequate food supplies, writes Jonathan Stearns for Bloomberg.com. The livestock industry accounts for 18 percent of greenhouse-gas emissions including methane from manure, carbon dioxide from burning fossil fuels to make fertilizers for feed crops and CO2 from forest clearing, according to the United Nations Food and Agricultural Organization.

According to the Bloomberg article, the EU Parliament said changes in behavior by consumers and the consideration of targets for reducing agricultural emissions should accompany regulations to cap industrial greenhouse gases and improve energy efficiency. At the same time, the assembly deleted a part of the text that called for a cut in worldwide meat consumption particularly in rich countries.

The livestock industry is responsible for “substantial” emissions, the 27-nation Parliament said in its resolution today in Strasbourg, France. The 80-page document, based on the final report of the assembly’s Temporary Committee on Climate Change, includes dozens of other recommendations and options for tackling global warming until 2050.

The EU aims to reduce its greenhouse gases at least 20 percent in 2020 compared with 1990 and spur UN members including the U.S. and China to back a new accord this year to counter global warming. The Parliament resolution said industrialized countries as a whole should plan to cut emissions 25 percent to 40 percent by 2020 from 1990 levels and deepen the target to at least 80 percent by 2050.

Thursday, February 05, 2009Print This Page
OIE: Vet Education on the Move to Protect World
EU - Over 90 of the OIE's Member Countries, for the most part developing and in-transition countries in all regions of the world, have already invited the OIE to conduct an independent evaluation of their national animal health systems. The OIE conducts these evaluations using its “Performance of Veterinary Services” tool (PVS tool), based on 40 criteria each with 5 levels of quality.



The evaluations conducted so far have revealed a wide variety of shortcomings in the countries visited with respect to the OIE's international standards of quality, says an OIE report. Nevertheless, the overall impression is that the veterinary education curricula in many countries are failing to keep pace with those countries' requirements in terms of capacity of the Veterinary Services in the fields of animal disease surveillance, including zoonoses, and early detection of infectious disease outbreaks and rapid response.

"These requirements – all too often unmet – also include food safety inspection, animal welfare and environmental protection", says Bernard Vallat. "Furthermore, in addition to technical excellence, veterinarians involved in national animal health systems need a far broader general education to give them a better grasp of the mechanisms of governance at both the national (legislation, chain of command, budget, communication) and international level (Organisations, international standards). Also, in view of the ever increasing threats that zoonoses represent it is of utmost importance that veterinarians ensure a leading role within control strategies in cooperation with all relevant sectors, especially the medical world."

Given that the Veterinary Services, as defined by the OIE, encompass both the public and private sector components of national animal health systems, the whole of the veterinary profession needs to be involved in meeting these requirements, which have such crucial worldwide implications, he says.

The evaluations carried out so far also highlight the considerable need that exists for continuing professional education, to ensure that the relevant know-how of all those involved is constantly updated to keep pace with these new requirements.

It is important therefore to ensure that, at a worldwide level, initial and continuing veterinary education provides everyone with curricula designed to meet the needs of society as a whole, rather than being based solely on the current demands of the labour market, which can vary from one moment to another and from one country to another.

To contribute to this important topic, the OIE has decided to hold a Conference, on 12, 13 and 14 October 2009 , and invite the deans of all the world's veterinary universities and schools (estimated at 500), along with the institutional managers in charge of developing veterinary teaching programmes in Member Countries and Territories, to discuss these issues and agree on a minimum curriculum for all veterinarians, whatever educational establishment in the world provides the initial training. "Indeed, it is important to reach a global consensus on what steps can be taken to stop certain countries awarding ‘third-rate' veterinary diplomas and ensure that these diplomas are delivered on the basis of effective high level know-how that meets societal needs. Representatives of the various direct beneficiaries of animal health and animal welfare programmes (animal producers, processors, consumers, other non-governmental organisations) will also be welcome at the Conference", said Mr Vallat.

"The question of what mechanisms can be used to monitor the content and quality of training will also be raised during the Conference as the starting point for discussions on which mechanisms to recommend for the future

, February 06, 2009Print This Page
Maximum Levels of Vitamin A in Feed Recommended
EU - EFSA’s FEEDAP Panel has adopted an opinion on the consequences for consumers of the use of vitamin A in animal feed, and recommended revised maximum levels in feed intended for the main food producing animals.



It also recommended regulating complementary feeds, used in combination with other feed or forages, to avoid excessive levels of vitamin A as well as monitoring vitamin A in foods of concern such as liver, and providing suitable advice to help consumers avoid excessive intakes.

The European Commission asked EFSA to estimate the vitamin A intake of the population and review the scientific evidence linked to the possible risk of bone health problems in elderly people associated with high vitamin A intakes, including two reports from the UK and France. The use of vitamin A in feed is relevant for consumers since it remains in food products of animal origin and therefore contributes to people’s overall intake. Vitamin A is an essential nutrient for people and animals, promoting vision, normal growth and development. It is added to feed to meet animal nutrition needs, and maximum levels are set by EU legislation for livestock bred for fattening.

Consumer exposure
The Panel looked at consumer exposure to vitamin A from various sources in our diets using studies from several EU countries. It found that a small proportion of the European population is at risk of exceeding the safe Upper Limit (UL) of 3,000 µg per day set by Scientific Committee on Food in 2002. The greatest risks of exceeding the UL come from eating liver - which contains high concentrations of preformed vitamin A - and from taking vitamin A supplements. Dairy products are also an important source, particularly in north European diets. Eggs make a smaller contribution and fish and other types of meat are not a significant source.

Quantitative correlations between retinol intake and bone health risk justifying a lower UL for elderly people could not be established. EFSA’s experts considered it advisable for those most at risk of osteoporosis and bone fracture - particularly post-menopausal women – to restrict intake to a lower level of 1,500 µg per day until new data indicate a need to re-evaluate the UL. The Panel noted that bone health is affected by various nutritional factors, including vitamin D, Ca, and Zn, which should also be considered when people are given dietary advice.

Feed recommendations
The Panel recommended that risk managers consider setting new maximum levels of vitamin A in feed intended for the main food producing animals - pigs, cattle and poultry. These levels would avoid any unnecessary high intakes among consumers without negative effects on animal health and performance.Amongst these recommendations, the Panel proposed setting a level for fattening pigs at around half the current amount allowed by EU legislation.

EFSA’s opinion has been forwarded to the Commission as a basis for any further discussion with Member States on risk management aspects.

Friday, February 06, 2009Print This Page
PM Encourages Poultry and Pig Farming
SOLOMON ISLANDS - Prime Minister, Derek Sikua, has said Solomon Islanders who cannot go into cattle farming because they may not have adequate land should consider poultry and pig farming.



However, People First reports Dr Sikua warning that currently, chicken are expensive because imported chicken feed is very costly.

He suggests the Ministry of Agriculture and Livestock should do something about removing the duty paid to import chicken feed.

Mr Pika says an application to the have the duty removed has been submitted to the Ministry of Finance and Treasury for consideration, but so far it has yet to respond.

Meanwhile, Prime Minister Sikua says piggery farmers too are finding it difficult to buy piglets in Honiara to start their projects because the prices are expensive.

Mr Pika says his Ministry continues to subsidise piggery entrepreneurs to kick-start their projects.

Monday, February 09, 2009Print This Page
Bahrain: MPs Call for Ban on Pork
BAHRAIN - Several MPs are recommending either two-month jail terms or fines of BD300, or both, for anyone in Bahrain who imports, sells or simply possesses pork.



They are all members of the Al Asala bloc, which has already drafted amendments to Bahrain's Penal Code that would outlaw pork.

Their proposal could be voted on during parliament's session tomorrow.

Parliament's foreign affairs, defence and national security committee - headed by Al Asala MP Adel Al Mawaada - is apparently backing the move.

Mr Al Mawaada said it was in line with the country's National Constitution, as well as religious beliefs.

"The first thing Jesus Christ - the saviour of all mankind - would do is break the cross and kill the pig," Mr Al Mawaada told the GDN yesterday.

"The reasons for killing the pig are many, but recent studies have found that pork has a huge negative impact on people's health - among other complications.

"The pig is one of many animals and birds that Islam has banned us from eating, but in the case of other animals and birds there are other uses for them so Islam has allowed their sale - like falcons and dogs.

"Pig products, or pork, should be kept away from our markets because it is clear they are harmful and have no other benefit.

"That is why we have come up with amendments to the Penal Code to ensure this."

Mr Al Maawada, who was not present when the committee recommended a ban on pork, said it had his full backing.

"I agree with it and so do other MPs," he claimed.

"Whether I am present or not, I believe it is genuine and shouldn't be delayed."

The Al Asala group consists of Salafi Muslims, a Sunni movement in which they strive to emulate the lifestyle of those who lived during the early years of Islam, reports Bahrain's Gulf Daily News.

However, the proposal appears to have won over supporters from other groups - including Al Wefaq, the largest political group representing Bahrain's Shi'ite community.

Foreign affairs, defence and national security committee vice-chairman and Al Wefaq MP Abdulhussain Al Metgawie, said he hoped the pork ban would make it past the government - if a majority of the 40 MPs in parliament back it.

"I believe the majority in parliament will vote in favour of the amendment and we hope the government will listen to us," he said.

Monday, February 09, 2009Print This Page
Investigation into Pig Deaths Launched
CHINA - The Government of north China's Shanxi province ran an investigation after 1,056 pigs were found dead in the Hongdong county, according to local authorities.



The dead pigs were in the Wan'an township of Hongdong, belonging to 65 households in 10 villages. About 80 per cent of the dead pigs were piglets born less than a month ago, said Qiao Yongsheng, vice head of the Hongdong county.

Samples were sent to the lab of Shanxi provincial center for animal disease control and prevention Friday.

Initial investigation found that some of the pigs died of eperythrogoonosis. Helminth and symptom of pneumonia were also found in the dead pigs.

A thorough inspection was carried out in the county.

According to Wang Zhijian, vice director of the Hongdong security bureau, 637 pigs were buried and 25 were burnt.

From the seven slaughter houses of the county, 30 sick pigs were checked out, said Jing Beiji, head of the Hongdong bureau of commerce.

To date, no contaminated pork has been discovered at supermarkets, markets or restaurants, said Shi Hongtao, head of the Hongdong bureau for industry and commerce, and Li Yongqi, head of the health bureau.

Tuesday, February 10, 2009Print This Page
Minister and Ambassador Meet over Meat Export Ban
POLAND - Talks took place last week between the Polish agriculture minister Marek Sawicki and the Russian Ambassador to Poland, Vladimir M Grinin in a bid to finally resolve the concerns over live animal and meat exports to the Russian Federation.



The talks were preliminary to the Polish minister leaving for MOscow to attend the Prodexpo exhibition this week.

During his visit to Moscow, Mr Sawicki is also due to meet the Russian Agriculture Minister, Alexey Gordeyev.

In the meeting with the ambassador, the two sides discussed lifting barriers over the export of plant products to Russia as well as the remaining problems concerning meat and meat products as well as live animal exports.

The two countries are also aiming to establish bilateral co-operation in the agricultural field under the framework of the Polish-Russian Intergovernmental Commission for Economic Cooperation.

The talks also paved the way for the visit of the Russian Prime Minister Vladimir Putin.


 

Tuesday, February 10, 2009Print This Page
Pig Production on Malta
MALTA - There are 157 pig farms with a pig count of 81,841, according to a report from the USDA Foreign Agricultural Service.

 

Of the total, 144 farms (77,317 pigs) are on the island of Malta, with the remaining 13 farms (4,524 pigs) on the neighbouring islands of Gozo and Comino.

The report, Malta - Exporter Guide - Road Map to Malta 2009 adds that the Republic of Malta is a small, densely populated island nation situated in the Mediterranean Sea. The country's official languages are Maltese and English, although there are strong historical ties to Italian due to the proximity to Italy. Malta gained its independence from Britain in 1964 and joined the European Union on 1 May 2004. Malta adopted the Euro on 1 January 2008.

Tuesday, February 10, 2009Print This Page
Over 1,000 Pigs Killed by Blue Ear Disease
CHINA - The death of 1,056 pigs in Hongdong County in north China's Shanxi Province was caused by blue-ear disease or PRRS (Porcine Reproductive & Respiratory Syndrome), local authorities said yesterday.



According to an official with the provincial agricultural bureau who declined to be identified, experts went to the scene Saturday to conduct autopsies. The lab of the Shanxi provincial center for animal disease control and prevention reached its diagnosis Monday.

More than 1,000 pigs were found dead in Wan'an Township, Hongdong. The animals belonged to 65 households in 10 villages. About 80 percent of the dead animals were less than one month old, said Qiao Yongsheng, deputy head of Hongdong County.

A thorough inspection was carried out in the county.

According to Wang Zhijian, vice director of the Hongdong public security bureau, so far 637 pigs had been buried and 25 burned.

In seven slaughterhouses around the county, 30 sick pigs were found, said Jing Beiji, head of the Hongdong bureau of commerce.

To date, no contaminated pork had been discovered at supermarkets, markets or restaurants, said Shi Hongtao, head of the Hongdong bureau for industry and commerce.

Wednesday, February 11, 2009Print This Page
Genetic Defect that Causes Infertility in Pigs
FINLAND - In the late 1990s the Finnish Yorkshire pig population was threatened by a genetic defect which spread at an alarming rate and led to infertility.



The defective KPL2 gene in porcine chromosome 16 caused pig spermatozoa to be short-tailed and immotile. The recessive genetic defect did not cause any other symptoms in the pigs.

Research Scientist Anu Sironen of MTT Agrifood Research Finland mapped the defective gene in her doctoral research. Sequence analysis of the candidate gene KPL2 revealed the presence of an inserted retrotransposon, a DNA sequence which moves around independently in the host genome. These transposable elements are found in all plants and animals.

Sironen also developed an accurate DNA test which can be used to identify animals carrying the defective gene with 100 per cent certainty. The method, based on PCR technology, multiplies part of the KPL2 gene and detects the retrotransposon if it is present. The test has been used as a tool in Finnish pig breeding since 2006.

Human genome contains the same gene
Sironen’s research also sheds light on the investigation of infertility in human males. KPL2 is, evolutively, an old gene that is present in all mammals and is similar in many species. The Line-1 retrotransposon which had inserted itself into this gene is present in the genome of all mammals, including humans.

After Sironen had developed the genetic test for pigs, she continued researching the genetic defect mechanism in mice.

“The KPL2 gene appears to affect the formation of cilia, which are hair-like organelles projecting from cells. They are present in spermatozoa, but also in many other tissues, including the lungs and bronchial tubes. The cilia are able to sense the surrounding conditions and transmit signals to the cells,” she explains.

Besides infertility, genetic defects in the cilia may be linked to blood pressure regulation, tumor development, kidney diseases and obesity. A severe cilial defect leads to developmental failure at the embryotic stage.

Sironen points out that it has not yet been demonstrated whether a defective KPL2 gene causes infertility or other symptoms in humans. However, findings on its participation in the cilial development indicate this might be the case.

Gene defect may have other implications
Sironen observed that the insertion of the Line-1 retrotransposon into the KPL2 gene affects the gene expression, leaving the coded protein abnormally short.

The long form of KPL2 is expressed predominantly in the porcine testicular tissue, which explains the tissue-specificity of the defect. Sironen would like to investigate the functions of the gene in a broader context, to find out which tissues it operates in and what its role is in the formation of cilia elsewhere in the body.

Sironen is also interested to find out whether the insertion of Line-1 retrotransposon in the KPL2 gene has any positive impacts on the production traits of pigs. She points out that the retrotransposon can have multiple impacts in the genome: it can cause other genes to shift, or have an impact on the manifestation of neighbouring genes.

“The increase of the porcine short-tail sperm defect was alarmingly fast in the late 1990s. This implies that the genetic defect may have been associated with some positive genetic effect on the pigs’ production traits, which would explain why animals carrying the defect have been favoured in breeding,” says Sironen.

The doctoral thesis of Anu Sironen, M.Sc., entitled “Molecular genetics of the immotile short tail sperm defect”, will be publicly reviewed at the University of Turku on 20 February 2009.

The opponent will be Professor Howard Jacobs of the University of Tampere and the custos will be Professor Jorma Toppari of the University of Turku.

Wednesday, February 11, 2009Print This Page
Transmission of Hepatitis E from Pigs to Humans
THE NETHERLANDS - Researchers studied the course of hepatitis E virus (HEV) infection in pigs by direct contact and inoculation. They identified urine and meat as possible sources for pig-to-pig and pig-to-human HEV transmission.

 
Worldwide, hepatitis E virus (HEV) genotype 3 is observed in pigs and transmission to humans is implied. To estimate public health risks from contact with pigs or the consumption of pork products, the transmission routes and dynamics of infection should be identified. Hence, the course of HEV-infection in naturally infected pigs merits further study.

Martijn Bouwknegt from the National Institute for Public Health and the Environment in Bilthoven, the Netherlands, and colleagues undertook this research.

To resemble natural transmission, 24 HEV-susceptible pigs were infected either by one-to-one exposure to intravenously inoculated pigs (C1-pigs; n=10), by one-to-one exposure to contact-infected pigs (C2-pigs: n=7; C3-pigs: n=5) or due to an unknown non-intravenous infection route (one C2-pig and one C3-pig).

The course of HEV-infection for contact-infected pigs was characterized by:

faecal HEV RNA excretion that started at day 7 (95 per cent confidence interval: 5-10) post-exposure and lasted 23 (19-28) days
viraemia that started after 13 (8-17) days of faecal HEV RNA excretion and lasted 11 (8-13) days and
antibody development that was detected after 13 (10-16) days of faecal HEV RNA excretion.
The time until onset of faecal HEV RNA excretion and onset of viraemia was significantly shorter for intravenously inoculated pigs compared to contact-infected pigs, whereas the duration of faecal HEV RNA excretion was significantly longer.

At 28 days post-infection, HEV RNA was detected less frequently in organs of contact-infected pigs than intravenously inoculated pigs. For contact-infected pigs, HEV RNA was detected in 20 of 39 muscle samples that were proxies for pork at retail and in 4 of 7 urine samples.

Conclusions
The course of HEV infection differed between infection routes, suggesting that contact-infection could be a better model for natural transmission than intravenous inoculation. Urine and meat were identified as possible HEV-sources for pig-to-pig and pig-to-human HEV transmission.

Reference
Bouwknegt M., S.A. Rutjes, C.B.E.M. Reusken, N. Stockhofe-Zurwieden, K. Frankena, M.C.M. de Jong, A.M. de Roda Husman and W.H.M. van der Poel. 2009. The course of hepatitis E virus infection in pigs after contact-infection and intravenous inoculation. BMC Veterinary Research 2009, 5:7doi:10.1186/1746-6148-5-7.

Thursday, February 05, 2009Print This Page
Polish Pig Production in Free-Fall
POLAND - The pig herd in Poland has fallen to its lowest since 1970, writes Michal Kolesnikow, analyst at the BGZ Bank. No recovery in terms of numbers is expected before the end of this year although prices and margins are improving.



According to the latest data from the Polish National Statistical Office (GUS), in November 2008 the pig herd fell to its lowest level since 1970. By the end of November, there were 14.2 million pigs in Poland, 7.7 per cent down on July 2008 and 19.2 per cent down year-on-year. Some 4.6 million pigs have disappeared since the last peak of the 'pig cycle' in July 2006. The magnitude of the contraction is comparable to the size of the whole pig herd in the UK.

The magnitude of the fall in numbers is, however, surprising. Previous forecasts projected the herd to contract to 14.7 to 15.0 million head. The further fall in sow numbers is also surprising because profitability of pig farming has increased considerably since last summer due to diminishing feed prices and a strong increase in slaughter pig prices.

The fall in sow numbers (6.4 per cent down on July) means that the decreasing trend in herd size will now last longer, at least until July 2009. The next survey at the end of March 2009 may see as few as 13.5 to 13.7 million pigs. As far as pigs weighing over 50 kg intended for slaughter are concerned, their number will contract in March and then seasonally increase in July. Not until November 2009 is some rebound in the underlying trend expected.

As a result, pig meat production in Poland this year may be eight to ten per cent down on the previous year which in turn already had been ten per cent down on 2007. Many abattoirs will have enormous problems sourcing pigs. Meat processors will also face great problems. Due to recent strong depreciation of the Polish zloty against the Euro, imported raw meat from Denmark, Germany or Netherlands has become very expensive. The processors will have limited capability to pass through the cost increases as consumer confidence is dwindling and retailers are looking to keep the prices as low as possible. That will squeeze already insignificant margins in the meat industry. A record high number of bankruptcies is likely.

On the other hand the pig producers' situation will improve considerably. Although some increase in feed prices is expected, farm-gate prices of slaughter pigs will hit record high levels. Through most of the year prices will fluctuate at around 25 to 30 per cent above the five-year average price and in the third quarter may for the first time in history exceed 5 zloty (PLN) per kilogram liveweight.

Note: Michal Kolesnikow is Senior Agricultural Markets Analyst in the Macroeconomic and Sector Analyses Department of BGZ Bank. BGZ Bank is a leading bank in the Food and Agri Sector in Poland. Its main shareholders are Rabobank and State Treasury.