Pig Industry Faces Revolution
08 November 2013
British Pig Executive
UK - A revolution in performance is going to hit the pig industry over the next ten years, says this year’s winner of the David Black Award.

Vet Pete Bown has worked as a consultant to one of the major breeding firms and said: "The genetic improvements in the pipeline are mind-blowing.



"It will give our producers a fantastic opportunity to sell a quality product with a very good cost of production provided they pay attention to herd health."

Peter, who is married with two sons, received his award at an industry breakfast held in the House of Lords.

Looking back on his 45 years in practice, he said: "When I started, disease was easy to manage, then we had a very dark period with Classical Swine Fever, Foot and Mouth and PMWS.

"Now we have much healthier pigs and provided we remain vigilant I think the industry has huge opportunities."

When Pete started with what has become the George vet group, he was the fourth vet in the practice and they had one pig client. The group now employs more than 30 vets with six pig specialists.

He qualified in Glasgow in 1968, then worked as a locum for a few vets before moving down to Malmesbury in Wiltshire for a year before returning to do a PhD. That PhD didn’t work out so he stayed.

He said: "I became interested in population medicine so that meant it was either pigs or chickens and pigs had always fascinated me."

Away from farms, Pete was on the professional after-dinner speaking circuit for 20 years so ended up being employed to give presentations on behalf of drug companies all over the world.

On being told he was the winner of this year’s David Black Award he said: "I was in the garden when my wife told me Mick Sloyan was on the phone. I thought to myself he must want me to sit on another committee.

"When he told me I had won the award I was totally stunned."

At the event a Sausage Oscar was presented to Peter Allen of butchers Aubrey Allen for their contribution to promoting one of the country’s gastronomic icons.

The firm was founded 80 years ago and this year was granted a Royal Warrant by The Queen. The firm has won many awards, most recently 1st prize in the Healthy Sausage Category at the BPEX Foodservice Pork Sausage of the Year competition.

The award was presented to company chairman Peter Allen.

Spain Ranked Second Largest Pig Producing Country in Europe
14 November 2013

SPAIN - According to data gathered by BDporc, the Spanish reference swine database, there has been a continuous increase in the size of farms (from 719 sows in 2007 to 986 sows in 2012).

Spain has 26 million pigs, including piglets, fodder pigs, breeders, and boars. This makes Spain the second largest pig producer in the European Union and ranks fourth in the world. The country exports 1,369,527 tonnes of pork annually, which is 40 per cent of the total production.

Over the last two decades, Spain's pig producing sector has undergone a tremendous transformation. This information was made public in light of the 20th Anniversary of the Porc d´Or awards, an event organised by the Institute for Research and Technology in Food and Agriculture (IRTA), in collaboration with Zoetis as co-organiser.

José Luis Noguera, director of BDporc (IRTA), believes this increase derives from the search of a greater professionalisation of the sector, improvements in the organisation of production, increased efficiency and cost optimization.

In terms of productivity, the BDporc analysis reveals that over the last 20 years, an increase of almost seven weaned piglets per every producing sow per year has occurred.

During 2012, a mean productivity of 26.57 weaned piglets per sow per year was registered. As a result, Spain has been placed among the primary pig producing countries.

Over the last decade, the Spanish pig sector has gone from being an importer to a significant exporter. The sector contributes over 4,500 million Euros to the country's GDP, which is over 37 per cent of total livestock production and 14 per cent of total agrarian production.

Miguel Ángel Higuera, director of the National Pork Livestock Producers Association (ANPROGAPOR), said: "Over the last few years, foreign trade in the sector has increased remarkably, not only in volume but also in the quality of exported products, which is currently much more structured.

"To date, intra- and extra- community exports are not mere opportunities but have become a structural event that depends on the correct functioning of the domestic market."

Spain: Hog Markets
28 November 2013
Genesus - The first power in genetics

SPAIN - The grain situation has created a better financial environment in Spain, just like almost everywhere else. However if we look at the ingredients used for feeding pigs in Spain, we can see that there is still some though times ahead, writes Fernando Ortiz, Genesus Ibero-America Business Development.

Feed

Spain is a grain importer, they don’t produce too much grain internally and a good proportion of the swine diet in Spain is made by wheat and barley. These two grains have still prices above historic standards. One of the causes for higher prices is due to the good quality of European and Black Sea wheat this year, so most of this harvest has gone for human consumption, lowering the supply for animal feed.

The same trend has seen barley following wheat price rise. As a result, the price of wheat, which used to be around US$6.75/bushel, has increased to US$8.05/bushel. Barley is around $4.02/ bushel. Soybean continues with higher prices as well, last week at US$17.32/bushel.

On the other hand there is an abundant supply of corn in the market at very competitive prices around US$6.75/bushel. Pork producers are taking advantage of this price by signing long term contracts.

Pigs

The national breeding herd inventory reports almost no variation in this category with 2.23 million sows vs. 2.25 million sows in November 2012.

The pork industry is one of the pillars of Spain’s economy by participating with over 19 billion euros (around $26 billion US dollars), this is the 22 per cent of the agri-food industry in Spain. It also holds the first place among the whole food and beverage industry. It is one of the five first industries, and it has the largest share in the agriculture food processed industry in the country (14.1 per cent in 2012). This data was delivered by Miguel Arias, Spain’s Minister of Agriculture.

Hog prices in Spain had plummeted over the last few weeks from 1.533 EUR/kg in September to 1.290 EUR/kg last week.

Below is a graph showing liveweight hog prices vs. feed cost during the last year in Spain.



The following is a graphic comparison between USA hog prices and Spain hog prices for 2011, 2012 and 2013 adjusting currencies accordingly for each period of time.



As we see from this graph 2013 has been the best year for the pork industry in Spain since 2010. Record prices for hogs this summer helped producers enormously on recovering from previous losses.

Prices are now going through seasonal downturn but there is a strong trend to make some money in the next quarter with cheaper grains and hopefully higher demand.



Genesus Global Market Report
Prices for the week of November 18, 2013


Country

Domestic price
(own currency)

US dollars
(Liveweight a lb)

USA (Iowa-Minnesota) 80.64 USD/lb carcass 59.67¢
Canada (Ontario) 156.56 CAD/kg carcass 53.73¢
Mexico (DF) 24.67 MXN/kg liveweight 85.46¢
Brazil (South Region) 3.76 BRL/kg liveweight 74.09¢
Russia 76 RUB/kg liveweight $1.04
China 15.5 RMB/kg liveweight $1.15
Spain 1.29 EUR/kg liveweight 79.63¢
Viet Nam 43,000 VND/kg liveweight 92.54¢
South Korea 4,071 KRW/kg liveweight $1.73

Return to Swill Feeding Could Cost the Pig Industry £300 Million
04 December 2013


UK - Why is the pig industry so set against an end to the ban on swill feeding of pigs as a solution to cut food waste? Two main reasons: firstly, poorly processed swill is the likely cause of the Foot and Mouth Disease (FMD) outbreak in the the UK in 2001 and second, a new analysis puts the cost of a serious disease outbreak at £300 million overall or 30 to 40 pence per kilo on the pig price. Jackie Linden reports.

Over the last few months, there has been a lot of talk in the pig industry about the risk of a notifiable disease outbreak, according to a new analysis from the British Pig Executive (BPEX) in Pig Market Trends.



*
 "Perhaps the most significant impact would arise from the loss of export markets."


Earlier in the year, Exercise Walnut simulated an outbreak of Classical Swine Fever (CSF), providing some useful lessons for government and for the industry. More recently, the Pig Idea campaign has been promoting feeding of treated food waste to pigs. Most pig farmers are opposed to this development because of the risk that it could lead to a disease outbreak; swill feeding was thought to be responsible for the major Foot and Mouth Disease (FMD) outbreak in 2001.

The impact of a notifiable disease outbreak on the industry would be dramatic. Of course, there would be a massive personal impact on those directly affected. There would also be major challenges for those caught up in the incident through movement bans or other restrictions put in place to control the spread of the disease. However, even producers not affected in these ways would be hit by the impact of disease on the market.

Perhaps the most significant impact would arise from the loss of export markets. In a major outbreak, this would likely be immediate and sustained. In 2001, pork exports fell virtually overnight from well over 10,000 tonnes per month to virtually nothing. They took almost a year to start to recover and much longer to reach anything like the levels recorded before the outbreak.

Last year, pig meat exports were worth about £310 million to the UK. This year, the figure is set to be closer to £350 million. This is equivalent to around a quarter of the total value of pigs slaughtered, which was a little over £1.2 billion last year.

In the event of a complete closure of export markets, some products would find alternative buyers in the UK, either in the consumer market or for other uses. In a few cases, this might replace imported products. However, most UK exports are cuts that have a limited market here, while imports comprise cuts for which demand exceeds supplies. Thus, the increase in products on the domestic market would add to the overall supply, bringing prices down for all pig meat. It is difficult to estimate the scale but a 10 per cent drop, which is at the lower end of the likely range, would mean a loss of £90 million from the market, on top of the value of lost exports.

The graph below shows the impact of the FMD outbreak in the UK in 2001 on pork exports, which slumped to almost zero and had nowhere near recovered more than three years later.

UK pig meat export

Those products for which no market could be found would have to be sent for rendering or disposed of in some other way. This would mean that they would achieve a fraction of the value that they would have been sold for on export markets. Estimates suggest that the loss of value from the products that could no longer be exported would be at least £200 million.

Lower prices might help to offset any consumer 'turn-off' from pig meat products. The extent of this would depend on the disease involved; it would likely be higher for a pig-specific disease than for a multi-species one like FMD, where consumers would have fewer alternatives meats. However, for an outbreak of a disease like CSF or African Swine Fever, lower consumer demand could add to losses.

Combining the losses above, suggests an impact on the industry of close to £300 million. If this was passed on to producers in full, it would be equivalent to a fall in the pig price of between 30p and 40p per kg. In reality, some of the loss would probably be absorbed elsewhere in the supply chain but pig prices would still fall sharply. The drop would probably be large enough to return most producers to a loss-making position and would certainly leave them particularly vulnerable to any increase in input costs.

To illustrate the possible effect, the report adds that, during the BSE outbreak in 1996 (see graph below), when export markets were closed and consumer confidence hit, cattle prices immediately fell by 15 per cent and then continued to fall away in subsequent years. Prices did not reach pre-outbreak levels again until 2008.

Return to Swill Feeding Could Cost the Pig Industry £300 Million
04 December 2013


UK - Why is the pig industry so set against an end to the ban on swill feeding of pigs as a solution to cut food waste? Two main reasons: firstly, poorly processed swill is the likely cause of the Foot and Mouth Disease (FMD) outbreak in the the UK in 2001 and second, a new analysis puts the cost of a serious disease outbreak at £300 million overall or 30 to 40 pence per kilo on the pig price. Jackie Linden reports.

Over the last few months, there has been a lot of talk in the pig industry about the risk of a notifiable disease outbreak, according to a new analysis from the British Pig Executive (BPEX) in Pig Market Trends.



*
 "Perhaps the most significant impact would arise from the loss of export markets."


Earlier in the year, Exercise Walnut simulated an outbreak of Classical Swine Fever (CSF), providing some useful lessons for government and for the industry. More recently, the Pig Idea campaign has been promoting feeding of treated food waste to pigs. Most pig farmers are opposed to this development because of the risk that it could lead to a disease outbreak; swill feeding was thought to be responsible for the major Foot and Mouth Disease (FMD) outbreak in 2001.

The impact of a notifiable disease outbreak on the industry would be dramatic. Of course, there would be a massive personal impact on those directly affected. There would also be major challenges for those caught up in the incident through movement bans or other restrictions put in place to control the spread of the disease. However, even producers not affected in these ways would be hit by the impact of disease on the market.

Perhaps the most significant impact would arise from the loss of export markets. In a major outbreak, this would likely be immediate and sustained. In 2001, pork exports fell virtually overnight from well over 10,000 tonnes per month to virtually nothing. They took almost a year to start to recover and much longer to reach anything like the levels recorded before the outbreak.

Last year, pig meat exports were worth about £310 million to the UK. This year, the figure is set to be closer to £350 million. This is equivalent to around a quarter of the total value of pigs slaughtered, which was a little over £1.2 billion last year.

In the event of a complete closure of export markets, some products would find alternative buyers in the UK, either in the consumer market or for other uses. In a few cases, this might replace imported products. However, most UK exports are cuts that have a limited market here, while imports comprise cuts for which demand exceeds supplies. Thus, the increase in products on the domestic market would add to the overall supply, bringing prices down for all pig meat. It is difficult to estimate the scale but a 10 per cent drop, which is at the lower end of the likely range, would mean a loss of £90 million from the market, on top of the value of lost exports.

The graph below shows the impact of the FMD outbreak in the UK in 2001 on pork exports, which slumped to almost zero and had nowhere near recovered more than three years later.

UK pig meat export

Those products for which no market could be found would have to be sent for rendering or disposed of in some other way. This would mean that they would achieve a fraction of the value that they would have been sold for on export markets. Estimates suggest that the loss of value from the products that could no longer be exported would be at least £200 million.

Lower prices might help to offset any consumer 'turn-off' from pig meat products. The extent of this would depend on the disease involved; it would likely be higher for a pig-specific disease than for a multi-species one like FMD, where consumers would have fewer alternatives meats. However, for an outbreak of a disease like CSF or African Swine Fever, lower consumer demand could add to losses.

Combining the losses above, suggests an impact on the industry of close to £300 million. If this was passed on to producers in full, it would be equivalent to a fall in the pig price of between 30p and 40p per kg. In reality, some of the loss would probably be absorbed elsewhere in the supply chain but pig prices would still fall sharply. The drop would probably be large enough to return most producers to a loss-making position and would certainly leave them particularly vulnerable to any increase in input costs.

To illustrate the possible effect, the report adds that, during the BSE outbreak in 1996 (see graph below), when export markets were closed and consumer confidence hit, cattle prices immediately fell by 15 per cent and then continued to fall away in subsequent years. Prices did not reach pre-outbreak levels again until 2008.

Tighter Welfare Checks on Livestock at Slaughterhouses Proposed
27 December 2013

EU - Slaughterhouse staff could be forced to carry out more checks of livestock to ensure the animals are not conscious after stunning, according to new scientific studies carried out for the European Food Safety Authority (EFSA).

The slaughterhouse staff performing stunning, shackling, hoisting and/or bleeding will have to check all the animals and confirm that they are not conscious, if recommendations for a European Food Safety Authority scientific opinion are ratified.

For the animal welfare officer, who has the overall responsibility for animal welfare, a mathematical model for the sampling protocols has been proposed, giving some allowance to set the sample size of animals that he/she needs to check at a given throughput rate (total number of animals slaughtered in the slaughterhouses) and tolerance level (number of potential failures—animals that are conscious after stunning and animals that are not unconscious or not dead after slaughter without stunning).

The model can also be applied to estimate threshold failure rate at a chosen throughput rate and sample size.

Finally, different risk factors and scenarios are proposed to define a ‘normal’ or a ‘reinforced’ monitoring protocol, according to the needs of the slaughterhouse.

These measures are included in a scientific opinion which puts forward “toolboxes of welfare indicators” for developing monitoring procedures at slaughterhouses for pigs, sheep and goats and poultry.

Three separate scientific opinions have been produced by the Scientific Committee/Scientific Panel of EFSA for the European Commission to cover the pig sector, goats and sheep and poultry.

Pigs

For pigs stunned with the head-only electrical method or carbon dioxide at high concentration, the opinion proposes welfare indicators together with their corresponding outcomes of consciousness, unconsciousness or death.

The opinion proposes a toolbox of indicators and the outcomes to be used to assess consciousness in pigs at three key stages of monitoring:
1.after stunning and during shackling and hoisting,
2.during sticking and
3.during bleeding.

Various activities — including a systematic literature review, an online survey and stakeholders’ and hearing experts’ meetings — were conducted to gather information about specificity, sensitivity and feasibility of the indicators that are to be included in the toolboxes for monitoring welfare.

On the basis of information gathered during these activities, a methodology was developed to select the most appropriate indicators that could be used in the monitoring procedures.

The frequency of checking differs according to the role of each person with responsibility for ensuring animal welfare at slaughter.

The personnel performing stunning, shackling, hoisting and/or bleeding will have to check all the animals and confirm that they are not conscious following stunning.

For the animal welfare officer, who has the overall responsibility for animal welfare, a mathematical model for the sampling protocols is proposed, giving some allowance to set the sample size of animals that he/she needs to check at a given throughput rate (total number of animals slaughtered in the slaughterhouses) and tolerance level (number of potential failures—animals that are conscious after stunning; animals that are not unconscious or not dead after slaughter without stunning).

The model can also be applied to estimate threshold failure rate at a chosen throughput rate and sample size.

Finally, different risk factors and scenarios are proposed to define a ‘normal’ or a ‘reinforced’ monitoring protocol, according to the needs of the slaughterhouse.

Outdoor Pig Producer Puts JSR Pork on the Menu
06 January 2014
JSR Genetics


UK - A Suffolk pig farmer, whose produce is on the menu in some of Gordon Ramsay’s restaurants, has been working closely with JSR Genetics in order to tailor the taste of his products for new markets.

 
 

Mark Hayward, who runs Dingley Dell Pork, along with his brother Paul, has been selling his own-brand outdoor pork for the past 12 years, supplying high-class establishments such as The Dorchester and The Savoy hotels in London, as well as top sporting teams including Manchester United FC and Manchester City FC.

In early 2013, Dingley Dell started exporting their produce to Jersey, Guernsey and Belgium, as well as Hong Kong and Macau, so started working with JSR in order to select breeding stock and tailor products to suit these new and very different markets.

Mr Howard explained: "We produce a variety of meat, including ham, bacon, smoked belly pork and we are also in the process of developing our own air-dried ham and pancetta. Each of these products is for a very different consumer, so we had to adapt and tailor the taste to suit.

"For example, in the UK, there’s a strong demand for lean pork, but in the Far East, it’s all about the taste, so we had to take a look at what we do at farm level to develop these different products using the breeding stock we had."

Mr Howard and the team at Dingley Dell worked closely with Caroline Mitchell, Meat Scientist at JSR Genetics, so she could gain a better understanding of the direction the business was heading.

JSR carried out substantial observational work, getting to know the farm production system and understanding what Dingley Dell wanted to achieve and why.

Existing products were benchmarked using the services of the JSR Food Quality Centre, and JSR sire lines were introduced to the Dingley Dell production system.

Dr Mitchell said: "Dingley Dell approached us after seeing our meat quality work at the Pig & Poultry Fair in 2012. Mark was looking for a genetics company with a focus on meat eating quality, who was striving to continuously improve their products.

"We introduced two new sire lines to the Dingley Dell range, which were specially selected based on their eating quality attributes and chose Great Grandparent (GGP) gilts also based on meat quality traits. The progeny were followed throughout production.

"Once slaughtered, online assessments were made to quantify improvements and the product was sent to eminent chefs for their comments on the new product in comparison to the old.

"From this, we were able to identify which sire line best suited Dingley Dell’s production to meet their customer needs. One area we focused on was increasing marbling fat within the product, so that improvements on tenderness, flavour and succulence were made.

"We are currently planning our next benchmarking exercise for early in the new year."

Following the introduction of the new sire lines, Dingley Dell has added a new product to its range – marketed as ‘black pork’. After working alongside Caroline to create a prototype, Mark wanted to gauge whether the black pork would be well received by the consumer, so arranged for six London restaurants to serve up the meat.

Mr Howard said: "The black pork was cooked in exactly the same way as other pork dishes on the menu and we were delighted that we received really positive feedback about it from the chefs and their customers.

"The process has been a learning curve for everyone involved. Caroline has advised us on how we could double the Intra-Muscular Fat (IMF) on our stock for our Asian clients. This, typically, will take three to four years to introduce and it’s going to be a real working progress, but at least we can now make a start."

News


EU Pig Prices: Trend Continues to Stay Positive
28 January 2014
 Go to schweine.net

EU - The trend continues to be positive on the European slaughter pig market this week.

The price increase is again triggered from Germany this week. Slaughter companies’ demand for live pigs is quite brisk despite all those complaints about the meat business; thus, it cannot always be covered.

The German quotation has risen up by about 4 cents, being followed by the Austrian, Dutch and Belgium quotations. Spain and France as well are recording a slight price increase.

The French slaughter weights went down considerably (minus 300 g). In Spain, the market participants are still dissatisfied with the export situation, hoping for relief through re-opening of the Russian market and new impetus from China.

Once again, the Danish quotation proves to live a life of its own, tending to sta unchanged. The same goes for Ireland, whereas the past weeks’ negative trend is continuing in Great Britain.

Trend for the German market: The mood continues to be optimistic on the slaughter pig market. According to the slaughter companies’ marketers, the current price level is being accepted without resistance. At the same time, pigs for slaughter can be placed on short call and demand keeps good. So, from today’s point of view, the trend is expected to remain positive for a while longer.

Time to Say Goodbye to the 'Weakest Link', Says Pig Association
13 February 2014

National Pig Association - The voice of the UK pig industry


UK - National Pig Association is polling pig producers on lorry washes at Britain's abattoirs, with a view to publishing a league table. The association hopes when abattoirs see how they are rated against their competitors, the poorest performers will be encouraged to invest in improved lorry-washing facilities.

Many pig producers and hauliers consider sub-standard lorry washes to be the weakest link in the industry's armoury against endemic diseases such as swine dysentery, and imported diseases such as African swine fever and porcine epidemic diarrhoea.

Disease can be spread rapidly from farm to farm by livestock lorries, unless hauliers are able to properly wash and disinfect their vehicles every time they deliver pigs to an abattoir. But washing facilities at most abattoirs are reported by pig producers and hauliers to be inadequate.
•Waiting times are too long because there aren't enough washing bays.
•Lighting is non-existent or inadequate for dark mornings and evenings.
•Water pressure is too low, and detergent is not provided.
•Washing bays are too close, risking cross-contamination.
•During cold spells, when viruses pose the greatest risk, the water supply can be frozen for days on end.

British pig producers are particularly concerned at present about the risk of foreign diseases entering Britain and spreading quickly through a naive pig population.

There is a threat of the notifiable disease African swine fever being imported from Russia, the Ukraine, Belarus and Lithuania. And in the States and Canada, highly virulent Chinese strains of Porcine Epidemic Diarrhoea are laying waste to hundreds of pig units.

Both viruses are harmless to humans, but they are fatal to pigs if they are carried onto farms on lorry tyres or on the boots and clothes of humans.

Early results from producer voting suggest the Dalehead Foods recently modernised and now world-class abattoir at Spalding in Lincolnshire will top the NPA league table with the best lorry-washing facilities. But it is too soon to say which abattoirs will occupy the bottom places in the league table as producers are still voting in the poll.

"Abattoirs may be reluctant to invest in modern lorry-washing facilities because they see it as dead money but this is short-sighted. They rely on a reliable supply of British pigs, so it should really be at the top of their agenda," said NPA chairman Richard Longthorp.

"By committing now to improvements in lorry-wash facilities, processors have an ideal opportunity to restore their credibility with pig producers and take biosecurity a quantum leap forwards.

"We need good lorry washing facilities which in turn will encourage all hauliers to ensure their vehicles are thoroughly washed and disinfected before they depart to collect another load of pigs."

UK Pig Feed Prices Continue to Slide
10 March 2014


UK - While compound feed prices are well below their peak of about one year ago, it is sobering to note that they are 87, 76 and 97 per cent higher, respectively, for cattle/calf, pigs and poultry rations than at the start of 2006, writes Jackie Linden.

In the latest quarter for which data are available - October to December 2013 - the average price per tonne for cattle/calf feed was £238, while pig feed averaged £260 and poultry feed cost £274, according to Animal Feed Statistics for Great Britain from the Department for the Environment, Food and Rural Affairs (Defra).

The cattle/calf feed price excludes calf milk substitutes and the poultry feed price is an average weighted by production from feed compounders, excluding output from integrators.

The graph below shows the average price of a tonne of compound feed for cattle, pigs and poultry in the UK from the first quarter of 2006 to fourth quarter of 2013.

Peak prices for all species were reached in the first half of 2013; poultry feed prices peaked at £311 per tonne, pig feeds at £291 and cattle feed at £253.

Spain: Hog Markets
13 March 2014
Genesus - The first power in genetics

SPAIN - The EU pig meat market has been destabilised as the result of Russia's ban on pig exports from all 27 countries in the region, writes Fernando Ortiz, Genesus Ibero-America Business Development.

The ban affects 24 per cent of the total exports of the EU, that is, about four per cent of total production, and the industry is on the edge of the abyss, riding a rollercoaster that has lost control.

Negotiations between Russia and the EU have not progressed and time has not dissipated doubts: increasing frozen stock in the EU while Russia’s stores are emptying. Depending on the degree of dependence on the Russian market and the resilience of each internal market hog prices in the EU are down or trying to stabilize on this particular roller coaster.

Market hogs: 1,200€ (+0,002)

Last week in Spain, the price recovered the 0,002€ that it was down seven days ago. It seems like nothing significant, you may think, but this up and down is indicative of the tensions running through the Spanish market. Firstly, the negative atypical European pork and beef situation, both immediately and in the short term and on the other hand, a balance between supply and demand that occurs typically in February, so the hog supply tends to be below than demand each week. The killing has gone down every week since the beginning of the Russian ban, around -2%, while the volume of supply has gone inconsistently up and down, probably depending on what the price was and the desire to maintain weight profitable. But even reducing the slaughter, the average weekly weight is also lower: carcass 425 grams and liveweight 825 grams.

So it is the demand that has to accommodate the available supply. It's what always happens in February, once the post- Christmas excesses are corrected; this is transferred to the price that increases at the same rate that production drops. That is why everybody in the Spanish hog industry is not happy now about any price: to the packing plant, because in view of how European meat and pork prices are with their European competitors , believes that declines should be deeper, at least as much as those reached by the German slaughterhouses, its main competitors in the meat market. But also to the pork producer, because of the non-stop market hog demand, they see that is selling more than planned based on their piglets acquisition; this market action pushes them to reduce weight with no beneficial on their final price. But also, everyone is aware that the distaste for the current price is a lesser evil compared with what may be ahead: Spanish slaughterhouses and producers are now getting slightly over their breakeven.

With bigger amounts of frozen pork being stored, the Europeans are thinking seriously about their future profitability of their business: if Russia opens, albeit only part of the EU or some specific slaughterhouses, pork will leave the EU. If Russia lifts the U.S. and Brazil’s ban in March (as already Russia has confirmed), both countries will leave gaps behind to cover a Russian demand that, at least initially, envisaged bulk by the vacuum of a month without imports EU (which is its main pork supplier).

The export availability of both countries is limited: in the American case because of PED. In the Brazilian case, because its growing domestic consumption is taking a lot of pork to get it exported; further this year with the World Soccer Cup. But what matters is that meat moves. This is a rollercoaster of global dimension.

Over all there is optimism for a great year in Spain in terms of prices.

Russia Hog Markets
20 March 2014
Genesus - The first power in genetics

RUSSIA - What a wild six weeks! Pork prices have gone up, up, UP!! In Russia as a result of the border closing between Russia and the EU, situation in Crimea has people concerned, and the PEDv issues in North America, writes Susan Wulf, Managing Director, Russia.

Live hog prices last week in the region bordering the Ukraine were: Kursk, 83 rub/kg, Belgorod and Voronezh, 85 ru/kg, Bryansk 84 ru/kg, and Krasnodar 90 ru/kg. This week in Krasnodar is 92 ru/kg = 2.54 USD/kg, or $1.15 USD per pound. January started in the mid 70’s, and as you can see are now mid 80’s to low 90’s per kilo for live weight.

Of course, there is the increased meat going into already stocked freezers in EU that were before being shipped to Russia – bad for EU and Russia alike. EU can’t sell meat or transport animals to Russia, Russians cannot buy sausage, farsh (ground pork), trimmings and sala (backfat).

So, what does it mean for Genesus? Well, we can proudly say we have a nucleus farm, with compartment 4 biosecurity producing high indexing purebred animals for sale, here in the Krasnodar region. We use Canadian genetics, and have recently brought in new Canadian boars to the herd to accelerate the genetic progress. Yes, producers want the Canadian genetics, and with lower prices and air delivery to Europe, then trucking, we often supplied from Canada. Now, we are seeing a surge in requests for purebred Canadian animals born here in Russia.

With the increase in price for meat in the markets, the Russian people are looking for quality meat, and often times the meat found in the market is pale, dry and flavorless. Now taste and tenderness are important. And, as pork prices have gone up (and supply down), beef and chicken prices have gone up as well. It is not to the point of being a luxury, but Russian people are being more selective in their choices of meat protein, and rightly so.

Our nucleus farm here in Pavlovskaya has consistently been able to garner the highest prices for the animals they have sold to the market, at times getting 5-7 rubles more per kilo. The processors are pleased with color, marbling, and primal cuts. And now, the word is out among producers to come to us to get that in their barns as well.

Some people have asked about our safety here in Russia. I personally can say that I have been in Moscow, the Ural mountain area, Krasnodar region and north of St. Petersburg in the last month without any issues. Also have been through immigration several times. The people of Russia welcome the North Americans, and are glad we are here to help them with their pork production.

Poland Looks to Asia to Export Pork
11 April 2014

POLAND - Following Russia's ban on imports of pork from Poland on the grounds of a risk of African Swine Fever, the Polish Minister of Agriculture has announced upcoming meetings with future trading partners in Asia.

Speaking at a meeting to promote high-quality Polish meats for the Easter meal, Agriculture Minister, Marek Sawicki, discussed  the current situation in the country's meat industry.

Invited experts consistently and strongly emphasised that Polish products meet the highest quality standards, making them a showcase for  country on foreign markets.

The Minister stressed that Polish food is of the highest quality in terms of appearance, taste and nutritional quality, making it attractive to foreign buyers as well as meeting the expectations of domestic consumers..

He said that his department is working to restore stability in the pig meat market, and talks have already started with partners who have placed an embargo on Polish pork and pork products.

On trade with eastern markets, he said that talks took place last week during an exhibition in the Lithuanian city of Kaunas and an official invitation has been made to the Minister of Agriculture of Ukraine, proposing a meeting in Warsaw.

In May, an official visit is planned to Poland's trading partners in Asia, he added, because they are the fastest growing markets and most promising.

The Russian embargo does not threaten the Polish pork industry, said Mr Sawicki, adding that the ban affects just 10 per cent of the country's exports, while the figure is up to 78 per cent for other EU member states.

Chief Inspector of Quality of Agricultural and Food (IJHARS), Stanis?aw Kowalczyk, said that, in the current geopolitical situation, trade in food becomes a 'weapon'. He expressed surprise that the country in which there are many outbreaks of  African swine fever has placed a ban on products from a country where there have been no outbreaks of the disease in livestock.

Deputy Chief Veterinary Officer, Jaroslaw Naze, stressed that the African swine fever virus does not threaten human health. There have been just two cases in Poland - in wild boar found near the border with Belarus. Poland does not have disease in farmed animals, and pork and its products are safe for consumers, he said.

EU Pig Prices: Increases in France, Spain
16 April 2014
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EU - This week, the development of quotations on the EU slaughter pig market is predominantly encouraging.

The most considerable rise in prices was observed in Spain and France with their 6 cent’s increase per kg slaughter weight, compared to last week’s prices. From both countries demand for pigs and pork is reported to be very good.

This, on the one hand, is attributed on to domestic demand that usually increases at this time of the year as a result of the holiday season; on the other hand, exports towards Asia are going well.

Slaughter companies from these countries, however, complain about the gap getting ever larger toward the German quotation and the decreasing competitiveness of their products related to it.

The German quotation went up by no more than 2 cents; yet this price increase is not being accepted by all slaughter companies.

In the countries neighbouring Germany, considerable price increases could not be enforced as well.

From Austria and the Netherlands, reports are coming in about unchanged prices. Belgium records a 1-cent price increase.

Danish Crown’s quotation in Denmark is hard on the German quotation’s heels. By this company, the payment prices for pigs mature for slaughter were increased by near to 3 cents.

Trend for the German market: Being on a collision course, the slaughter companies have created some degree of uncertainty among producers. Demand for slaughter pigs covers the companies’ needs at present. Hope arises with good weather prospects for the Easter holiday. Given that the demand for pork starts up again, no negative effect should arise from the missing days of slaughter over the weeks to come. Payment prices are expected to at least stabilise.

How are EU Markets Reacting to Russian Ban on European Pig Meat?
24 April 2014


ANALYSIS - Russia’s ban on pig meat products from the European Union because of the discovery of African swine fever in Poland and Lithuania has had a severe effect of prices in Poland.

Although the agricultural market agency AgroPersepktiva is forecasting that prices will rise, they are still not expected to reach the levels they were a year ago.

However, the Polish pig prices also depend on the exchange rate between the zloty and the Euro, which has always shown some volatility ranging from 4.24 zloty to the Euro at the beginning of the year to 4.13 in March, with several rises a falls in between. At present the rate stands at about 4.19.

Overall the European Commission sees the supply of pig meat on the European market as rising compared to last year, because of the Russian ban and this is expected to force prices down generally.

Poland is expected to feel this general fall in prices acutely.

When Russia first introduced the ban on pig meat from the EU in February prices went down to 4.6 zloty per kilo – nine per cent less than in January and 11 per cent less than in February 2013.

Prices have now risen to an average of 5 zloty per kilo and this level is expected to be maintained.

Experts are forecasting that live pigs in the country will be making between 5 zloty and 5.3 zloty per kilo in June and between 5.3 and 5.7 zloty per kilo by September – still less than in 2013.

The Russian ban could also have an effect on the size of the Polish pig herd which in November last year was 11 million – one per cent lower than the previous year – but the forecast is for the number of pigs bred for slaughter is expected to fall further as the prices are low and there is no market with the Russian borders closed. This will put less pork on the market.

In 2013, pork production declined by more than four per cent compared to the 2012.

In February this year Polish pork exports fell by 14 per cent compared to a year ago, because of the ban on imports of into the Customs Union - Belarus, Russia and Kazakhstan.

Exports to Ukraine fell by 89 per cent, Japan 41 per cent, South Korea 31 per cent and China 19 per cent.

At the same time, the supply of pork in most EU countries rose, including Slovakia 38 per cent, Germany 29 per cent and Italy 27 per cent.

Between January-February 2014 Polish exports of livestock, meat, fat, and pork products was 98,000 tonnes, which is one per cent less than a year ago. The concerns are reported to be contained in a letter from Sergei Dankvert, head of Rosselkhoznador to Marek Sawicki, Minister of Agriculture in Poland. Now, Russia may ban imports of vegetables, fruits and berries from Poland.

However, the situation could become worse for Poland as Rosselkhoznador, the Russian food safety and veterinary authority, is believed to be considering a ban of more products from Poland because of sanitary and phytosanitary concerns.

While the action taken by Russia to ban pig meat from the EU has hit Poland particularly hard, concern is high in the meat sector right across the EU.

Recently, the French meat industry organisation SNIV called on the European Commission to allow individual countries to negotiate their own export and health agreements with Russia and the other countries in the Customs Union, rather than standing out for an EU-wide agreement.

And the Belgian meat agency VLAM recently described the Russian action as “Hannibal ad portas!”(Hannibal at the gate).

“The Russian Federation, where this plague virus has been out of control and widely spread for several years, was ironically the first country to take draconian measures,” VLAM said.

“The attitude and motivation of the Russian Government is incomprehensible.

The embargo annually affects about 700,000 tonnes of pork, offal and by-products from the European Union - two-thirds of Russia’s import need for pork and pork products.

VLAM says that the European ban will lead to a drop of 14 per cent in the Russian pork consumption.

In the short term, there are no alternatives in terms of supply because of the current restrictions on Canadian, Brazilian and US pork.

In Russia the ban is expected to force pig and pork prices to rise further and Russia is already a country where pork is more expensive than beef and where consumers pay the highest retail price for pork.

VLAM questions what Germany that has 40 per cent of European sales in Russia, do with its 240,000 tonnes of pig meat, mostly bacon and fat and Denmark with its 180,000 tonnes.

“If this embargo continues, one can expect to see a lot more European pork popping up at a cheaper price in the non-Russian countries.

“The Russian embargo completely reshuffles the cards for the European pig industry. If a quick solution is not forthcoming, this will have serious implications on the global pork markets,” VLAM said.



Chris Harris, Editor-in-Chief