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ThePigSite Newsletter - 01 July 2013

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ThePigSite
Monday 1st July 2013.
Jackie Linden - ThePigSite Senior Editor

Jackie Linden
Senior Editor


Bulls, Bears and the US Pig Industry

The latest USDA 'Hogs and Pigs' report shows a trend towards increased numbers of both breeding and market animals for the quarter April-June 2013.

Compared to the previous 'Hogs and Pigs' report in March, there were two per cent more hogs and pigs in total on 1 June at 66.6 million head, and market hogs were also up by two per cent at 60.8 million.

There was one per cent more breeding pigs but fewer farrowings for the quarter than in the same period of 2012.

US analysts see the report as slightly ‘bullish’ overall.

Ron Plain and Scott Brown comment on the ‘Hogs and Pigs’ report highlights that the breeding herd was up 0.3 per cent compared to a year ago and the market hog inventory was down 0.1 per cent. The number of sows farrowed this spring was down two per cent. Farrowing intentions for June-August was down 0.1 per cent and fall farrowing intentions are up one per cent.

On the other hand, ‘bearish’ is how a US-based grain analyst described the latest USDA corn acreage estimate, which has weakened grain futures, offering the prospect of falling feed prices.

Jim Wyckoff has commented that US ‘new-crop’ December corn futures fell to a 12-month low of $5.11 a bushel last Friday (28 June) after the USDA unexpectedly raised its estimate of US corn plantings this spring.

USDA estimated US corn plantings at 97.4 million acres, up from its previous estimate of 97.28 million acres in March, and well above the average trade estimate of 95.34 million acres. Total US corn stocks as of 1 June were below traders’ expectations.

The bearish corn data also helped to pull soybean and wheat futures prices lower.

Following the announcement of the offer by Shuanghui International of China to purchase Smithfield Foods, a global food company heavily involved in pork production and based in the US, a comparison of pork consumption and production in the two countries has been compiled by Gary Schnitkey of the University of Illinois.

Chinese pig meat consumption is currently more than six times that of the US and continues to grow, which the analyst says represents potential for US pork and grain sectors.

He highlights that while there are doubts over whether the Chinese pork industry can maintain domestic pork production growth, US production has increased faster than local consumption, resulting in the US being a net exporter of pork production.

A Chinese company's purchase of Smithfield may aid in technology transfer and access to pork production outside China, according to Dr Schnitkey, while Chinese growth continues to offer prospects for both the pork and grain sectors in the US as well as other exporters, most likely from South America.

Also in the news last week in the US, there was an indication that the Smithfield-Shanghui deal might not be approved. The Senate Committee on Agriculture, Nutrition and Forestry is to examine foreign purchases of American food companies, including the acquisition of Smithfield Foods by Shuanghui International.

And finally, Senator Dianne Feinstein has introduced new legislation to combat antibiotic-resistant superbugs that develop when antibiotics are misused in animal agriculture.

The Preventing Antibiotic Resistance Act of 2013 directs the Food and Drug Administration to prohibit the use of human antibiotics in the feed and water of healthy farm animals if they jeopardise human health.


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This Week's Articles and Analysis

Paradox of Progress: Reality vs. Perception of Pork Safety in Modern Swine Production
Reviewing the evidence relating biological hazards in pork to changes in the US swine industry structure, Peter Davies of the College of Veterinary Medicine at the University of Minnesota in the US has concluded that pork is safer than in any previous era. He was speaking at the 2103 London Swine Conference.

Prudent Use of Antimicrobials – What is Going on in Europe?
David Burch, a veterinarian at Octagon Services Ltd in the UK discussed with Roman Krejci, DVM, Swine Technical Manager with Ceva Animal Health in Libourne, France, the European approach to the prudent use of antibiotics for farm animals.

Danish Pig Research Centre Annual Report 2012: Local Air Extraction and Ventilation
The Pig Research Centre in Denmark has been investigating the extraction of noxious gases from the air extracted from pig buildings.

Farrowing House Management
The farrowing house is a key department in determining the productivity of a unit. Attention to detail at all times is vital for achieving the full potential of both piglets and sows, according to No. 38 in the 'Action for Productivity' series from BPEX.

Enhancing Safety at Every Step in Food Supply Chain
Few would dispute that the emergence of chilled and frozen food technologies in the last century was a major advance for modern society, transforming all our lives and bringing convenience and choice. In Europe today, consumption of chilled and frozen foods is rising by more than 10 per cent a year.

Trial of Visual Inspection of Fattening Pigs from Non-controlled Housing Conditions
A visual inspection system of pig carcasses from outdoor or non-controlled housing systems would face the same obstacles for implementation as a visual system for fattening pigs from controlled housing conditions, according to a new study.

Local Meat and Poultry Processing: The Importance of Business Commitments for Long-Term Viability
Through the use of case studies, Lauren Gwin, Arion Thiboumery and Richard Stillman of the USDA Economic Research Service identify the factors that contribute to a successful business relationship in Economic Research Report Number 150.

Company News

AI-Stud PIC Rehweg Repopulated Two Weeks After Evacuation
GERMANY - Due to the devastating flooding in Eastern Germany along the river Elbe three stud sites of co-operative business GFS - AI market leader in Germany - had to be evacuated.
New Partnership to Establish São Tomé and Principe’s First Breeding Herd
SAO TOME AND PRINCIPE - In a joint venture to improve the sustainability of island nation São Tomé and Principe’s food supply, the country’s government and the government of Taiwan have signed up to a new partnership with JSR Genetics, which will see 56 Landrace and Large White gilts and boars flown out of the UK in July.
IPPE Announces Pork Education Partnership with VIV
US - In addition to poultry, feed, and beef, the 2014 International Production & Processing Expo (IPPE) is expanding its focus to the international pork industry.
Russia: Hog Markets
RUSSIA - Since our last report the markets are stronger - especially in the southern regions - writes Paul Flint from Genesus Russia.
PIC Completes First Live Animal Shipment to EU
US - For the first time in over 15 years, live breeding pigs have been delivered to continental Europe from the United States. In May, PIC successfully imported a total 45 grandparent boars for delivery to PIC Spain’s Artificial Insemination Centre (CIA) in Galicia and to customer CIA’s throughout the country.
Success at VIV Russia with Focus on Conference Programme
RUSSIA - VIV Russia 2013 has noted a huge success with the new, global exhibition format, say the co-organisers, VNU Exhibitions.
Zoetis Becomes Fully Independent
US - Zoetis Inc., the former animal health business of Pfizer Inc., has opened a new chapter in the company’s history this week, marking its separation from Pfizer and establishment as a fully independent company.
TOPIGS Adds Profit to Each Finisher Pig
NETHERLANDS - Genetic progress at TOPIGS adds €2.64 profit per finisher pig per year.
Novus International Hosts Gut Health Symposium
US & LATIN AMERICA - Novus has hosted key influencers representing the Latin American poultry and pork industries for a day-long seminar at the company's headquarters in St. Charles, Missouri.
Pork Commentary: US Lean Hogs Continue to Increase
GLOBAL - Last week (June 19), National Base Lean Hogs averaged $103.43 (52-53 per cent lean), writes Jim Long. He also discusses Smithfield's failed attempt to buy Maple Leaf, the Ontario Pork Congress and a Big Week for Genesus.
BIVI Adds Johnson to PRRS Team
US - Erin Johnson, DVM, has been promoted to technical manager on the PRRSolutions Team in the Swine Division at Boehringer Ingelheim Vetmedica, Inc. (BIVI).
Molecular Technology to Enhance Future Diagnostics
GERMANY - Diagnostics are likely to play an increasingly important role in veterinary practice over the next few years, according to speakers at a satellite symposium at WAVLD (World Association of Veterinary Laboratory Diagnosticians) in Berlin.
Market Reports

China Wholesale Prices - 1 July 2013
BPEX Export Bulletin – Week 26
USDA Hogs and Pigs - June 2013
China Wholesale Prices - 28 June 2013
AHDB Pig Market Weekly - 27 June 2013
BPEX UK Pig Meat Market Update - July 2013
USDA Agricultural Prices - June 2013
China Wholesale Prices - 27 June 2013
BPEX Export Bulletin – Week 25
China Wholesale Prices - 26 June 2013
China Wholesale Prices - 25 June 2013

Global Pig Industry News

   United States

US Pig Production Goes from Strength to Strength
Livestock, Poultry Groups Urge Congress to Repeal RFS
Future of House Farm Bill Uncertain; Programs to Expire Without Legislation
Corn, Soybean Market Prospects Following USDA Reports
Bilateral FTAs Critical to Health of US Pork Industry
Special Report: Bearish USDA Corn Acreage Estimate Weakens Grain Futures
Hog Outlook: Hogs & Pigs Report Shows Market Hog Inventory Down
New Law Introduced to Safeguard Use of Antibiotics in Agriculture
Senate Committee to Review Smithfield Deal
Pig Producers Praise NJ Governor for Supporting Farmers
Farmers Thank NY Legislature for Support
Economists: Second US Farm Bill Extension Seems Inevitable
Tougher Action Urged against Plants Repeating Violations

   France

French Count the Cost of New Sow Housing

   European Union

EFSA Reviews Inspection of Wild Boar, Other Meats
Croatia Joins the EU
Political Agreement Reached on New Direction for CAP
EFSA Reports on Listeria Levels in Certain Ready-to-eat Foods
EFSA Consults over Renewal of Feed Additive Permits
EU Pig Prices on the Rise Throughout Europe
Luxembourg Council Meeting Focused on CAP Reform

   United Kingdom

New Pig Health Assessment Dates
Sainsbury’s Steps up British Sourcing with Commitment to Fresh Pork
Finisher Pig Buildings Blueprint Now Available
AHVLA Becomes International Reference Lab for Swine Flu
Pig Stockmanship Winner in North
Real Welfare Bureau Service Prepares
Farmers Say CAP Plans 'Damage Farming, Reduce Food Production'
Pig Industry Competitiveness Improving
Scottish Demands to Receive More CAP Money 'Unjustified'
Rise in Pig Production Costs
Andrew Cheale Passes Away
French's Industry Contribution Recognised
UK Votes on Common Agricultural Policy Reform
Industry Confidence Survey Reveals Mixed Prospects

   Denmark

Aarhus University Sheds Light on Boar Taint

   Global

New Publication Examines Impact of Precautionary Principle
Caution Urged in Shuanghui's Smithfield Deal
Pork Consumption and Production in China, the US
FAO Meeting Discusses Water and Food Security

   Canada

Canada's Biosecurity Protocols Valuable in Guarding Against PED
Comment Process on Welfare Code Offers Opportunity
FAO Sustainable Livestock Production Initiative Gains Support

   Mexico

Mexico Steps up Measures to Keep out PEDV

   Jamaica

CPJ, Partners Take on Pork Market in the Caribbean

   India

India Reports First Outbreak of PRRS

   China

Govt Says Chinese Market is Open to US Pork

   Netherlands

Breeding Consortium Appoints De Geus as Director

   South Africa

Plant Extract Shows Some Effects against ASF Virus

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