Welcome to this week's newsletter

Editorial – High Food Prices are Here to Stay

Higher food prices and volatility in commodity markets are here to stay, according to a new publication.

The OECD-FAO Agricultural Outlook 2011-2020 report says that a good harvest in the coming months should push commodity prices down from the extreme levels seen earlier this year. However, the Outlook states that over the coming decade, real prices for cereals could average as much as 20 per cent higher and those for meats as much as 30 per cent higher than 2001-10. These projections are well below the peak price levels experienced in 2007-08 and again this year.

Higher prices for commodities are being passed through the food chain, leading to rising consumer price inflation in most countries. This raises concerns for economic stability and food security in some developing countries, with poor consumers most at risk of malnutrition, the report says.

OECD's Secretary-General commented: "While higher prices are generally good news for farmers, the impact on the poor in developing countries who spend a high proportion of their income on food can be devastating."

Of course, high cereal prices may be good news for arable farmers but they are not good news for pig producers who depend on buying in feed!

Industry expert, Ron Plain, commented that last week, the US senate voted to end the tax credit for blending ethanol with gasoline and the tariff on importing ethanol. These changes are far from being law, he says but they have the potential to give the livestock industry some relief from record high feed costs.

In the same week that US pig production margins were forecast to become negative from the fourth quarter this year, a group of 28 senators has urged the top US trade official to work to lift Russian trade barriers to US pork products.

In the EU, a new report predicts changes ahead for pork industry.

According to Rabobank, as global demand for pork rises, EU pig prices are failing to keep pace with the US, Canada and Brazil. The bank forecasts a change in the industry landscape as pork production declines. For slaughter and processing companies, supply security will become more important than price, and further consolidation in the industry is inevitable, according to the report, while growing export opportunities in China and some other markets will help to offset some of the burdens.

Jackie Linden

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This Week's Feature Articles

Company News

Novus Celebrates 20th Anniversary This Week
US - Novus International Inc. will celebrate its 20th anniversary on 16 June, focusing on 'Innovation with Integrity'.

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PCV2 Control Discussed at ISPAH Conferences
US - During the World Pork Expo in Des Moines last week, Intervet/Schering Plough Animal Health (ISPAH) sponsored four conferences that dealt with PCV2 and mycoplasma, writes Chris Wright for The Pig Site.

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Novus Highlights Profitability Programme
US - A special breakfast held during the World Pork Expo last week in Des Moines, Iowa, Novus presented three speakers who highlighted the nutrition challenges facing pork producers, writes Chris Wright for The Pig Site. Up to 60 per cent DDGS could be included with a good strategy and the right products.

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Genesus Ships its Largest Single Order to China
CANADA - Genesus has shipped its largest single order of breeding stock to China. The buyer is COFCO Corp., China's largest agribusiness.

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ISPAH: Porcilis PCV Vaccination Compliance
NETHERLANDS - Intervet/Schering-Plough Animal Health has introduced BacuCheck™, a simple ELISA test for confirmation of vaccination status with PORCILIS® PCV of piglets against porcine circovirus type 2.

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New CTO Appointed for Pigture Group
NETHERLANDS - Hans Olijslagers has been appointed as the new Chief Technical Officer (CTO) of Pigture Group. He will assume his responsibilities with effect from 1 September 2011.

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New Management Course Announced
UK - Applications will open next month for the second BPEX Professional Manager Development Scheme, which will start in January and run for 16 months.

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Global Pig Industry News

New Zealand

 » Pork Consumers Don't Want Biosecurity Relaxed

Korea, South

 » Launch of New Quarantine Agency
 » Measures Announced for Improved Disease Control
 » Imports of US Pork Jump

United States

 » Attention to Shift from Area to Corn, Soybean Yields
 » CME: April's Meat Exports Down After Bumper March
 » Weekly Roberts Market Report
 » Companies Recall Pet Treats on Salmonella Risk
 » Proposed Ban on Antibiotics in Feed Opposed
 » GIPSA Rule on Hold
 » Registration Opens for USAHA/AAVLD Annual Meeting
 » Smithfield Reports Record Results
 » ARS Recognises Pig Health Researchers
 » Senators Urge Lifting of Russian Trade Block
 » Senate Vote Brings Some Relief

India

 » Locals Seek Pig Farm Closure at Ayroor, Kerala

China

 » Bad Intentions Threaten China's Food Safety
 » Higher Pork Prices Fuel Inflation
 » Arrests Made over Tainted Pork Scandal
 » Professor Hu Elected Zhongpin Director

United Kingdom

 » Stressful Spring for Boars
 » Celebrity Cooks to Cause Stir at Royal Highland Show
 » Assess Options for Bedding Now
 » NFU Calls for Simplified Medicines Market
 » Scots Back BPEX ‘Pigs Are Still Worth It’ Campaign
 » Environment Campaigners Step up Protest
 » Gilts Are Production Pigs under IPPC Regulations
 » Rising Costs + Falling Demand = Misery

Canada

 » Managing Margins Key to Remaining Profitable
 » Manitoba Producers Frustrated over Bill 46
 » Recommended Cooking Temperature May Be Lowered
 » Software Helps Cut Energy Use & GHG Emissions
 » Pork Commentary: World Pork Expo 2011

European Union

 » EU Pig Prices: Markets Steady after Public Holidays
 » Reducing Feed-Related Burden on Animal Production
 » Report Predicts Changes Ahead for EU Pork Industry

Mexico

 » IASA Wins 2011 National Export Award

Malaysia

 » Three Pork Products Recalled; Producer Charged

Philippines

 » Erysipelas Outbreak in Catanduanes

Australia

 » No More Pig Processing at Burrangong
 » Australian Pork Favoured in Singapore

Denmark

 » Royal Honour for Danish Crown in US

Netherlands

 » Conference to Prepare for End to Surgical Castration

Germany

 » EC Urges Germany to Complete Feed Directive

Russian Federation

 » Cargill Opens New Feed Facility in Efremov

General

 » CME: Low Economic Growth Will Affect Markets
 » US Hog Margins – June 2011
 » Asia is High–Growth Market for Feed Additives
 » Higher Commodity Prices Here to Stay

Myanmar

 » Blue Ear Spreads to South-East Burma

Japan

 » Toyota Launches Pig Manure Compost Deodoriser

Czech Republic

 » ASIC to File Lawsuit in Czech Republic

That's all for this week!

Ed.