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Newsletter 21st November 2005's Weekly Swine Industry Newsletter's Weekly Swine Industry Newsletter
Monday 21st November 2005
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Welcome to this weeks newsletter

* News Overview (link to ALL this weeks news)

We start this week in China, where piglet prices continued to hover at low levels in the week ending Nov 17, according to eFeedLinks weekly report. The pace of recovery in China's live hog prices was below market expectations, they say.
     Hog raisers were beginning to doubt the sustainability of this round of price recovery as some of them continued to incur losses. A few of them have offered sows for sale while others have remained cautious about making piglet stock replenishments.
     Live hog prices were largely stable in the week ending Nov 14. In some regions, prices have lost their upward momentum of the previous week. Although large quantity of hogs was offloaded to buyers in October, hog inventory levels have stayed high.
     Although the recent bird flu concerns had resulted in increased pork consumption amid shifts in consumer meat preference, it did not give a boost to live hog prices in the provinces of Henan, Hebei, Jiangsu and Sichuan. Hog prices shed RMB0.40/kg in Hebei, the greatest price fall during the week in review.

South Korean imports of livestock products jumped nearly 40% in the first nine months of the year from a year ago, a state-run agricultural corporation said last Tuesday. According to the Agricultural and Fishery Marketing Corp, imports of beef, pork and poultry shot up 38.5% from a year ago to US$1.74 billion in the January-September period.
     The figure is close to last year's total imports of $1.75 billion. Chicken imports skyrocketed 146.5% to $86.4 million, while inbound shipments of pork swelled 91% to $463 million.

Western Canada's swine industry is counting on a new state of the art pork processing plant which is planned for Winnipeg to provide the benefits of value added processing, reports Farmscape. It will also help to reduce the type of irritation that triggered the last trade dispute with the US pork industry, the report says.
     Last Monday OlyWest, a joint partnership involving Olymel, Hytek Limited and Big Sky Farms, rolled out plans for the construction of a 200 million dollar pork processing plant to be located in the St. Boniface Industrial Park. “It’s going to be a slaughtering, cutting and boning plant,” states Rejean Nadeau the CEO of OlyWest and President of Olymel.

In the US, Renessen LLC, a joint venture in Illinois of Monsanto Co. and Cargill Inc., is preparing to market the first crop genetically engineered for animal feed. The product, corn that carries added lysine in each kernel, should reach poultry and swine producers in the United States and Argentina in 2007 or 2008, the company said.      It is meant to replace synthetic supplements of lysine, an essential amino acid, that producers now buy and mix into feed. It also is the first big commercial launch for Renessen, which has digested nearly $444.5 million in investment from its co-owners but has yet to produce a return.

The soybean market appears to be a little overpriced based on current U.S. and world supply, consumption, and stocks forecast, particularly if U.S. soybean acreage increases in 2006, said a University of Illinois Extension marketing specialist.
     "Current prices are likely reflecting uncertainty about a number of factors," said Darrel Good. "Those uncertainties may include the South American growing season - weather and soybean rust - and renewed concerns about soybean rust in the United States in 2006.

For January-September, pork exports were up 25.9% from the first 9 months of 2003, according to Glenn Grimes and Ron Plain in their weekly review of the US hog industry. Pork imports for January-September were down 10%. The two largest supplies of pork are down in their shipments to the US, as Canada's exports to the US were down 9.6%, and Denmark's were down 27.4% for the first nine months of 2005 compared to the same period of 2004.
     Sales to most pork customers were up in 2005 from 2004. Japan was up 17.7%, Canada up 32.9%, Mexico up 1%, Russia up 110.1%, South Korea up 189.2%, Mainland China up 23.4%, Taiwan down 38.7%, Caribbean up 61.9% and other 133.2%.

Cobactan 2.5% - Rapid recovery from respiratory infections
Cobactan 2.5% - Rapid recovery from respiratory infections.

Through September, Canadian hog slaughter was down 0.4% compared to the first nine months of 2004, according to Ron Plain's regular report on the US Swine industry. Not only was their hog slaughter down, but feeder pig exports to the U.S. were down 5.0% and slaughter hog exports were down 7.4% compared to January-September 2004.
     Unless there was a dramatic increase in death loss, the July 2004-March 2005 Canadian pig crop must have been smaller than 12 months earlier. Yet, Canada's current estimate is that the July-March pig crop was 2.1% larger than the year before.

Continued strong market hog prices for most of 2005 and lower feed costs will result in another profitable year for hog producers, according to a University of Illinois Extension study. "Hog prices are expected to average about $50 per hundredweight in 2005," said Dale Lattz, U of I Extension farm management specialist and author of the study.
     "Relatively large corn and soybean crops in 2005 will result in lower feed costs. Feed costs are expected to average about $20.65 per hundredweight and nonfeed costs at $16.25 in 2005. Total costs of production would be $36.90 per hundredweight, or about $13 below the average price received.

Fifteen organisations from North America and the European Union, with a budget of over £4m, are searching for ways to control PMWS and other porcine circovirus diseases. The aim is to find out more about the diseases and how to control them.
     One of the first tasks of the researchers has been to define PMWS. The full case definition can be downloaded here but could be summarised as: "An increase in mortality exceeding the national or regional level by 50 percent is considered indicative of PMWS."
     It is expected the wide range of disciplines within the research consortium will provide a platform of expertise that endures beyond the lifetime of the 42-month project, and that this expertise can be used to react quickly to other new emerging mulifactorial disease syndromes in pigs.

DuPont Animal Health Solutions - bringing new life to biosecurity.
DuPont Animal Health Solutions - bringing new life to biosecurity.

In the UK, the English pig industry's national training scheme has overcome its first major obstacle. The scheme's proposed qualifications - its "Certificates of Competence" - have been approved by the Qualifications and Curriculum Authority.
     The next step will be for the certificates to be granted "equivalence" with National Vocational Qualifications (NVQs). This means pig technicians of all ages, and stages of experience, who gain Certificates of Competence will have meaningful, nationally-recognised qualifications.

Supermarkets are losing their grip on the organics market, figures from the Soil Association's latest annual report show. With total organic sales growing by £2.3m each week, the multiple retailers saw their share of the market slip from 81% to 75% during 2004.
     The whole market is now worth more than £1.2bn a year, 11% more than in 2003. At least £300m of that total is channelled through farm shops, farmers’ market and box schemes. This part of the sector saw sales mushroom by 33% this year, while independent shops increased their organic sales by 43%. Patrick Holden, director of the Soil Association, said: “This report shows that the popularity of organic food is growing steadily and the organic market has a bright future.

The British Meat and Livestock Commission could be wound up if proposals to restructure British agricultural levy bodies get the go-ahead. The proposals come in a government ordered report by Rosemary Radcliffe into the workings of five organisations funded by levies.
     In the "Review of Agricultural and Horticultural Levy Bodies," Rosemary Radcliffe called for a complete shake-up and rationalization of the system by 2007. The review of the bodies - the MLC, the Milk Development Council, the British Potato Council, the Horticultural Development Council, and the Home Grown Cereals Authority - said that duplication of operations should be eliminated by a complete restructuring of the system.

V-Drinker - No More Height Adjustments
ARATO V-Drinker - No More Height Adjustments

The ZAP Salmonella Programme is moving forward with its aim of reducing the prevalence of Salmonella in British pigs. The Programme has made some progress in reducing levels but in order to meet targets for reducing the level of food safety risk the programme will be changing gears in 2006.
     BPEX has taken the recommendation of the ZAP Salmonella Programme Steering Group that there should be a change in the basis on which holdings should be assigned to ZAP Levels 1, 2 and 3.

The Australian pork industry has lost its year-long court battle to stop the importation of pork from countries with PMWS, sparing government from having to overhaul its quarantine system. Despite the failure of their expensive fight, producers have vowed to do everything possible to maintain Australia's immunity from a disease that has killed millions of pigs worldwide.
     Legal options for the national industry body, Australian Pork Limited, ran out when the High Court dismissed its application for special leave to appeal against a Federal Court ruling. The ruling allowed pigmeat imports from countries with PMWS.

* Feature Articles Overview (link to features listings)

We have 5 new features this week:

Influence of Ultimate pH on Meat Quality and Consumer Purchasing Decisions
By Ronald Klont, PIC’s Northern European Pork Chain Manager - Ronald Klont defines the relationships between ultimate pH and four of the five meat quality attributes that impact consumer purchasing decisions - taste, appearance and juiciness.

Assessing The Results Of The EU Ban On Antibiotic Feed Additives
By Hector Cervantes, DVM, MS, Dip. ACPV, Manager, Poultry Technical Services, Phibro Animal Health Corp. - The European Union (EU) banned the use of avoparcin, a widely used antibiotic feed additive in food-producing animals in 1997. The ban was carried out against the advice of the Scientific Committee on Animal Nutrition (1,22), a panel of experts composed of animal scientists from various EU countries.

A Baseline Study for Microbial Hazards Associated with Hogs
By R. Friendship, C. Dewey, D. Ojkic, C. Gyles, and J. Odumeru, University of Guelph - This article is taken from the University of Guelph Swine Research Review 2005 report. The Ontario pork industry is strongly export-oriented and relies on an image of a high quality and safe product. A baseline study to determine the prevalence of food-borne pathogens and to determine risk factors is an important first step in developing a strategy for controlling these diseases.

Fiber Content of Diet Affects Percieved Odor Of Swine Manure
By Eric van Heugten, North Carolina State University - Ammonia and volatile organic compounds are major contributors to air quality problems associated with swine production. Odorants result from the fermentative degradation of carbohydrates, fats, and proteins in the large intestine and manure of swine and, therefore, can be manipulated by diet composition (Hobbs, et al., 1996; Sutton, et al., 1999).

Livestock Price Outlook - October 2005
By Chris Hurt, Extension Economist, Purdue University - In his latest Outlook report, Chris Hurt says that the year ahead appears to be one of continued profitable returns for hog producers with average prices near $47 on a liveweight basis, and estimated average costs of production in the very high $30 to low $40s for farrow-to-finish operations.

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* Finally...

Just 10,000 farmers to be left by 2025, states report

     IRELAND - Only 10,000 full-time farmers will be left by 2025 compared to just over 40,000 now if current trends continue, according to a Government-funded report to be launched today by Minister for Agriculture Mary Coughlan, reports The Irish Times.
     The report on rural Ireland, drawn up by scientists from NUI Maynooth, University College Dublin and Teagasc, the agriculture and food development authority, warns of an "unacceptable regional balance in Ireland's economy" in 20 years. It predicts "serious failures to achieve the declared [Government] policy goals for rural Ireland".
     "It is unlikely that by 2025 Ireland will have appreciably more than 10,000 full-time commercial farmers, comprising predominantly dairy farmers, 1,000 or so commercial dry stock farmers, with roughly a similar number of sheep producers and a few hundred pig enterprises," it said.
     The report, which has been seen by The Irish Times and states as its aim "to provide perspectives of Irish rural and coastal areas to 2025", says population, commercial agriculture and modern enterprises will be even more concentrated in the east and south of the country than at present.

That's all for this week.


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