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Newsletter 18th October 2004

thePigSite.com's Weekly Swine Industry Newsletter thePigSite.com's Weekly Swine Industry Newsletter
Monday 18th October 2004
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Pork Expo America Latina 2004, Oct 20-22, 2004

* This Weeks Industry Showcase
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Welcome to this weeks newsletter

DON'T FORGET - Pork Expo América Latina »»»

NEW: Medicines Administration booklet - A revised edition of the popular booklet to help pig farmers record their medicinal use on the farm is now available from The Pig Journal website.

* News Overview (link to ALL this weeks news)

We start this week in North America, where the U.S. Department of Commerce announced last Friday that provisional antidumping duties of approximately 14% of the declared U.S. customs value of the hog will be placed on imports of live hogs from Canada. Jon Caspers, past president of the NPPC stated "the Commerce Department's determination is compelled by the economic reality of the situation.

Ontario's pork producers are however, disappointed by the ruling. "This decision is unfair to Ontario hog farmers," said Larry Skinner, Chair of Ontario Pork. "Ontario hogs are fairly traded: there is one North American price, and we sell at that price in both Canada and the US. Ontario farmers should not have to defend themselves against protectionist litigation."

The Canadian Pork Council is calling on American pork producers who will be negatively affected by the US antidumping duty, to voice their concerns. A final margin will be announced in February or March. The US International Trade Commission will issue its injury determination in Mid-April and, if it finds no injury, the duty will be eliminated and bonds collected in the meantime will be refunded.

Smithfield Foods expects to benefit from the ruling. However, as hog prices rise, it also might mean consumers will pay more for bacon, deli ham and other processed pork products, reports DailyPress. Friday's announcement caused hog prices to rise, and Smithfield sells the most hogs in the country. "That never happens this time of year, seasonally," a Smithfield spokesman said.

As the trade battle erupted, reaction on the Canadian side of the border was swift, reports Canoe.ca. "Over the next six months, this could have a huge impact financially on our industry," said Karl Kynoch, chairman of the Manitoba Pork Council. "It could be $50 million." Government and hog industry officials in Alberta and Saskatchewan also lashed out at Washington, calling the move disappointing and unfair.

Smithfield Packing Company, a subsidiary of Smithfield Foods, Inc., announced last week that it will build an $85 million, 180,000-square-foot ham manufacturing plant in North Carolina. The new facility will manufacture deli hams, sliced deli products and retail and foodservice hams. Production volume will begin at 75 million pounds in 2006, the first year of operation, and reach 100 million pounds per year by 2011.

In their weekly review of the US hog industry, Glenn Grimes and Ron Plain report that total pork exports for August were up 17.6% and that export growth to Japan during August at a plus 18% showed the biggest monthly increase for the year. However, Mexico continues to be the big gainer with a 45% increase during August. Mainland China even though not a big importer of pork from the US, continued a very healthy growth during August up 51%.

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Two Quebec-based pork processors are merging certain operations in hopes of becoming a leading processor at the national and international levels. Supraliment and Olymel announced Wednesday that they have agreed to merge and integrate all of their assets and operations in the slaughtering, cutting, boning, processing and marketing of pork and poultry meats.

The Brazilian exports of chicken and pork meat fell in September principally due to the embargo imposed by Russia after the discovery of foot-and-mouth disease in the Amazon. The deliveries of both products fell by 16.6% in volume and 17.3% in income. Russia is the largest importer of Brazilian hog meat with 61% of the sales in the period between January and August 2004.

More and more British pig farms are changing over to batch farrowing says the NPA. Whilst this may have great health benefits, it also places far greater pressure on resources. Where there may have been one week's worth of pigs demanding more of a particular resource, now there are five. With some resources, this may be beneficial in various ways. For example, some producers find that concentrating on a particular activity once every five weeks, instead of all activities each week, aids teamwork and promotes labour efficiency.

English supermarkets are cutting back on the amount of space they give on their shelves to fresh British pork, according to the latest PorkWatch survey. Of the big three, Asda has improved its performance but Tesco and Sainsbury have dropped back - Tesco by seven percent last month, and Sainsbury by twelve percent.

Brussels' ambitions to reform welfare-in-transit rules proved too hot to handle, with the northern countries of Europe generally in favour of reform, the southern countries wondering what all the fuss was about, and members of the European Parliament apparently wanting to see all animals herded to their destination on foot!
     Any kind of consensus proved impossible and for six months or so reform plans have been gathering dust but the new presidency is now with the Dutch and they have picked up the dossier and pledged to get reform sorted out in a matter of weeks.

In Australia, CSIRO researchers are investigating whether an ancient arm of the immune system can be used to control livestock animal diseases. CSIRO Livestock Industries' scientist Dr Tim Doran says a biological phenomenon called RNA interference (RNAi) has huge potential to control, and possibly eliminate, a number of major animal diseases.

In the Philippines, breaking from its 25 weeks of downtrend, the average price of prime hogs rose to the low-high average of P69.36-P73.13 per kilogram (kg) this week, apparently boosted by the rising demand in the run-up to the holidays.

In China, pork prices in some regions have registered a fall of more than RMB1.0/kg in early October. While some analysts expect pork prices in China to remain high until the end of the Chinese New Year celebrations in February 2005, others say that pork prices may return gradually to normal (lower) levels in the near future. They attribute this to the Chinese central government's amendment of its "Pork Reserve Regulations" and lower aquatic product prices, among other factors.

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Suvaxyn - Pig vaccines you can trust

* Feature Articles Overview (link to features listings)

We have 5 new features this week:

What can Europe expect when the growth promoters are finally withdrawn on January 1st 2006?
By David Burch, Octagon Services Ltd. - Metal-based feed additives such as copper sulphate and zinc oxide have already had there inclusion levels restricted to nutritional levels only, from January 1st 2004 and the use of copper as a growth promoter has been effectively stopped.

Castration in Pigs, implications of Boar taint in pork
By FAI Farms - Castration in pigs is not widely practiced in the UK and is prohibited under current Assured British Pigs Farm Assurance Standards. It is however standard practice in other parts of the EU and outside the EU.

Dietary Enzyme Improves Nutrient Digestibility of Canola Meal Diets
By Ruurd T. Zijlstra, John F. Patience, Praire Swine Centre and P. Howard Simmins, Finnfeeds International Ltd., Marlborough, UK, - A trial was conducted with cannulated weaned pigs to study effects of a dietary enzyme on nutrient digestibility. Supplemental enzymes that degrade some of the NSP were useful in improving ileal digestibility of energy and amino acids, but not total tract digestibility of energy.

New approach to battling PRRS virus
By Robert Fieldhouse, Ontario Pork - A viral menace called the porcine reproductive and respiratory syndrome (PRRS) virus has plagued the hog industry for the past decade, causing major health problems for pregnant sows and piglets - and major economic woes for producers.

Livestock Price Outlook - October 2004
By Chris Hurt, Extension Economist, Purdue University - In his latest Outlook report, Chris Hurt indicates that the hog industry has emerged from the financial darkness last spring, and that profits have been excellent this summer and are expected to be very good for the next 12 months.

* This Weeks Practical Tip (link to weekly tips page)
Extracted from
Buy this book
Click book for more details

Topic: The Management of Infertility
Subject: Mating Procedures

This weeks tip gives the key points to successful supervised natural matings - Part 1 of 2.

This weeks tip: MATING PROCEDURES

NEXT WEEK'S TIP: Mating Procedures - Key points to successful supervised natural matings - Part 2 of 2


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* Finally...

Brazil Set To Become Major Pork Market

Brazil might be set to make a move with its pork industry as it did with soybeans in the 1970s, reports eFeedlink
    "We are sitting back to the equivalent of the 1960s and early '70s at the infancy of the Brazilian soybean industry," says Purdue University agriculture economist Ken Foster, comparing Brazil's pork production with its soybean increase of the 1970s.
    "The long term is pretty clear. They will increase production because they have a growing grain base. They will want to find a way to add value to that grain base," he predicts.
    "And, as we know here in the Midwest, one good way to do that is to feed it to livestock.
    "In terms of the US industry, no one should be getting out of the business in North America because they are worried about Brazil at this point," he added.
    Brazil exported 605,000 metric tons of pork valued at $532 million during 2003, a USDA Foreign Agricultural Service report says. That was a 2.5 percent increase from 2002.
    In a September outlook report, the USDA notes Brazil will begin an aggressive marketing campaign to export pork to new markets. Traditional markets for Brazilian pork are Russia, South Africa, Singapore, Ukraine, Bulgaria, Armenia and Lithuania.
    Sixty percent of Brazil's pork production in 2002 was in the southern and southeast states of Brazil, such as Santa Catarina, Rio Grande do Sul and Parana.
    However, Foster says most of the growth of its pork industry is occurring in the central Brazilian states, such as Mato Grosso, Mato Grosso do Sul, Goias and Distrito Federal.
    Those are the same areas that produce most of the country's corn and soybeans.

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That's all for this week.

Ed.

P.S Are you this weeks Book Draw Winner? Click Here to find out.

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