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Newsletter 23rd January 2006

Monday 23rd January 2006
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Welcome to this weeks newsletter

*Latest News (link to all this weeks news)

This week we start in Canada, where the Canadian pork industry should get past debates over export dependency and focus more on quality and efficiency to get the most out of that growing market, says a senior market analyst.
     "We still have trade 'handwringers' who worry we're too reliant on the export market, particularly the U.S.," says Kevin Grier of the George Morris Centre, speaking at the Banff Pork Seminar, a leading annual industry seminar. "It's time to get over it. Exporting is what we do."

In response to an increasing level of public scrutiny, partners within the pork value chain are putting a much greater emphasis on demonstrating the care that is taken to ensure food animals are always treated in a humane manner.
     Programs designed to document the animal welfare efforts being taken by both the farmers who raise the pigs that will ultimately provide the pork that ends up on the plates of consumers and the packers that process that meat were front and center this past week as about 800 delegates attended the 35th edition of the Banff Pork Seminar.

Rabobank International says the health status of North American swine offers that region its greatest advantage as competition within the global pork industry expands.
     Since 1990 world pork production has increased by more than 42%. Rabobank Vice President of Food and Agribusiness Research Fiona Boal says two regions, eastern Europe and South America, are emerging as big players as the pork industry moves forward.
     She suggests Romania and, much longer term, Ukraine are attracting considerable international interest and investment while Brazil and Argentina also show long term potential in the pork industry.

In the US, Iowa's Attorney General announced a settlement last Thursday of a lawsuit over pork production with Cargill, Incorporated. Attorney General Tom Miller says the agreement creates a 10-year deal with Cargill.
     He says some of the restrictions in Iowa law in terms of meatpackers being involved in contract production would not be enforced in return for substantial rights given to contract farmers. Miller says the agreement gives a little to both sides in the pork industry.

In their weekly review of the US hog industry, Glenn Grimes and Ron Plain report that pork exports have slowed from the spectacular rate of the 1st half of the year but were still 12% above 12 months earlier in November. For the year through November pork exports were up 22.4%. Pork exports for January through November were 11.1% above the record high for all of 2004.
     Pork imports by the United States for January through November were down 8.3% from a year earlier. Net pork exports as a percent of production increased from 5.2% in the first 11 months of 2004 to 8.0% of production for the same months of 2005. Live hog imports in November from Canada were down 4.5% from 12 months earlier. However, feeder pig imports for the month were up 0.9% but slaughter imports for November were down 13.3% from a year earlier.

By this month-end, the EU will have placed a complete ban on antibiotic growth promoters; the last four antibiotics currently being used - flavophospholipol, monensin sodium, salinomycin sodium and avilamycin - will be completely phased out, reminds eFeedLink.
     As businesses across the supply chain are at various stages of preparation, US-based consulting company Frost & Sullivan predicts that the impact of the ban will only be felt more keenly in the short term. Frost & Sullivan's industry manager Kathy Brownlie said, "In the medium and long term, impacts will be minimal."
     The effects of the ban will vary between countries and regions as well as between livestock sectors. The impact will be more severe on livestock sectors such as the swine and the poultry industries than on others.

Alphamune G - Shielding, Earning
Alphamune G - Shielding, Earning

In Ireland, a cut in farm production levels as a result of the EU nitrates directive would have severe implications for the agri-food industry and rural areas, it was claimed yesterday. The Agricultural Science Association (ASA), which represents graduates in the agri food sector, warned the directive could drive some farmers out of business.
     It said leading commercial dairy and drystock sectors will be forced to reduce the amount of chemical fertiliser they apply, with a consequent drop in production levels. President James Fitzgerald said the directive, which comes into effect on February 1, flies in the face of the Government's policy on a competitive agri-food industry and contains more stringent provisions than in other EU states.
     "The limitations the directive imposes on nitrogen and phosphorus levels mean up to 30% of pig producers are at grave risk of being put out of business with consequent devastating impact on cereals and compound feed production," he said.

In Northern Ireland, thousands of farmers are having their single farm payments withheld, because they have inadvertently claimed entitlement on the same field as their landlords. The problem has arisen because of Northern Ireland's hybrid system of single farm payment, which includes a land element as well as a historic element, reports FWi.
     This has encouraged landowners to submit claims. But, because of the conacre system of short-term rents, many active producers have also claimed on that land, without conferring with their landowners. The Ulster Farmers' Union says these farmers are facing the threat of very significant financial penalties because of these errors.

British pig producers are facing falling prices and reduced demand during the first two weeks of 2006. The GB Euro Deadweight Adjusted Pig Price was 106p in June 2005 compared with 102.06p/kg for the week ending 14 January. Spot quotes have also drifted lower with baconers currently worth little more than 100p/kg d/wt as against spot quotes last June of up to 112p/kg.
     EU producers are also suffering from falling values with the EU Big 6 mainland average equivalent to 86.5p/kg, well below UK levels. UK cull sow values fell again sharply last week with export abattoirs quotes circa 67p/kg compared with 76/78p in mid December. The value of the € has also dropped over the past twelve months and is currently worth 68.5p down from 69.5p last January.

V-Drinker - the intelligent solution for wean-to-finish
ARATO V-Drinker - the intelligent solution for wean-to-finish

Six Black Berkshire pigs from Cruckley Animal Farm jetted off yesterday from Stanstead Airport on board a 24-hour Air Nippon flight before starting their new lives in Japan. The Berkshire pigs are a favourite with people from Japan because they produce tasty pork - known as Kurobuta in Japanese. A delegation of Japanese breeders visited Cruckley about six weeks ago with a view to strengthening their country's breeding stock of Berkshire pigs.

Sales of home-made pork pies have soared by over 50% since a Yorkshire butcher scooped a major award. David Mounfield, who runs a family butchery business, J A Mounfield & Son at Bubwith, near Selby, won Yorkshire’s best speciality product at the Great Taste Awards, presented by the Guild of Fine Food Retailers in London.
     As a diversification venture for the business, which has been trading for over 100 years, David dug out an old recipe to produce the pies using high-quality meat from genetically-advanced pigs. They come from locally-based international pig breeding company, ACMC Ltd of Beeford, near Driffield. He used to buy his pigs from the local market, but when foot-and-mouth disease interrupted supplies he turned to ACMC on the recommendation of a local farmer who was impressed with the quality of the breeding stock.

The NFU’s ruling body has agreed on a ‘vote of no confidence’ in the Rural Payments Agency over its ability to deliver single farm payments. NFU council expressed its frustration with the Rural Payments Agency at its meeting on Tuesday (17 Jan) following impassioned speeches by individual members.
     Traditionally farmers have received their CAP payments between October and January of each year but the switch to the new Single Payment Scheme has meant a delay in processing by the Rural Payments Agency. In October of 2005 Lord Bach assured the NFU that the revised payments would start in February 2006 but the NFU is concerned that this deadline will not be met.

The Titan Boar from JSR Genetics

In this weeks China Piglet Market Weekly, eFeedLink report that China's piglet prices were largely stable in the week ending Jan 19. In the south, prices were higher on increased buying activity. Concerns over pig disease in the current winter season had led buyers in northern China to remain on the sidelines.
     In the provinces of Hebei, Henan, Shandong and Jiangsu, piglet prices were mostly unchanged. Buyers were held back by concerns over possible pig diseases and higher costs (vaccines and feed) in the winter season. Piglet prices were stable in Hunan and Hubei provinces. Prices of native common crossbreed piglets were higher in some areas of these provinces.

A Hong Kong woman has been infected with a deadly pig-borne disease that last year killed at least 40 people in China, the government said on Tuesday. Laboratory tests confirmed the 69-year-old woman was infected with streptococcus suis, the Department of Health said in a statement. It was the first case in the territory this year.
     The woman was admitted to a hospital on January 11 after suffering from fever and pains in the shoulder and feet, the statement said. She is now in stable condition. The streptococcus suis bacteria, commonly found in pigs, killed at least 38 people in the southwestern Chinese province of Sichuan last year. Hong Kong recorded 13 cases of the disease in 2005, including two fatalities.

Company news

Following the rapid growth of its business in Thailand, UK-based international pig-breeding company ACMC has appointed a new team to manage its Asian subsidiary, ACMC (Asia) Co, based at Ampur Muang, in Pathumthani Province in the Bangkok region of the country.
     It comprises Mrs Khamchan Kongthong, director of administration; Dr Boonsarng Prasithphol, executive manager; Mrs Kanjanart Sootthiluck, technical support manager and Dr Songwit Jeenawong, sales and marketing manager. Paradoxically, the growth comes on the back of a new highly-prolific breed developed by ACMC from genes originally imported into the UK from Asia in the form of the Chinese Meishan.

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

Once again Big Dutchman receives official awards for its current new product developments. In the run-up to the Agromek, due to take place from 16-21 January in Herning in Denmark, it has already been announced that the trademark of the world-wide market leader in housing and feeding equipment from Vechta-Calveslage will be listed a total of four times in the renowned list of innovations of this largest annual agricultural mechanization exhibition in Northern Europe.
     Big Dutchman's innovative "intelligent" feed valve, ValWet, for use in pig feeding systems. was awarded even three "innovation stars" by the top-class jury in Denmark.

*This Week's Feature Articles

We have 3 new features this week:

The Effects of Housing Grow-Finish Pigs in Two Different Group Sizes on Health Status and the Presence of Injuries
By B. R. Street, T. S. Samarakone and H. W. Gonyou and published by the Prairie Swine Center - Traditionally pigs have been housed in group sizes of approximately 25 pigs per pen. However, the swine industry is beginning to shift towards housing grow-finish pigs in groups as large as 100 to 1000. With increasing group size has come concerns that pigs in these groups will suffer a higher degree of injuries, such as lameness, and reduced health status.

Livestock Price Outlook - January 2006
By Chris Hurt, Extension Economist, Purdue University - In his latest Outlook report, Chris Hurt says that Hog slaughter is expected to reach 105.4 million head and pork production will expand to 21.1 billion pounds in 2006, both new records.

US Pork Outlook Report - January 2006
By U.S.D.A., Economic Research Service - This article is an extract from the January 2006: Livestock, Dairy and Poultry Outlook Report, highlighting Global Pork Industry data.

Porcilis PRRS - The PRRS vaccine that pays off
Intervets Porcilis PRRS - The PRRS vaccine that pays off

That's all for this week!

Ed.


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