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ThePigSite Newsletter - 15 July 2013

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ThePigSite
Monday 15th July 2013.
Jackie Linden - ThePigSite Senior Editor

Jackie Linden
Senior Editor


Objections Raised to Shuanghui-Smithfield Deal in Senate Committee

The US Senate Committee on Agriculture, Nutrition and Forestry was the centre of a major debate last week on the threats and value of the proposed take-over of Smithfield Foods by the Chinese giant Shuanghui International Holdings.

The committee looked at how the take-over will affect food security in the US and also the long-term implications on the economy of acquisitions of US companies by foreign companies, in particular from China.

Committee Chairman Debbie Stabenow said: “We need to be having this conversation and evaluating what is in the best interests of American families and our American economy because of the importance of our food supply, security, and safety.”

She added: “We need to be evaluating the long-term market implications of this deal for American workers, pork producers, and the farmers who grow grain and feed ingredients.

“Despite the strength of America’s pork sector, Smithfield has been struggling to make a profit -- and yet Shuanghui is offering to pay a 30 per cent premium for the company.

“That, to me, raises questions about the economic motivations of the purchase.”

However, since the deal was announced it has received broad-based support from local, state and national elected officials, industry labour unions, US pig farmers, leading economic and international affairs academics and even US based food industry peers.

Smithfield Foods’ president and chief executive officer, C. Larry Pope, in his testimony explained the combined company's commitment to continuing to work with American producers and suppliers that have played an integral role in Smithfield's success.

He said the deal would drive growth and expansion.

This week the date for anti-trust objections on the deal passed in the US and no objections have been raised in Mexico and Poland.

The companies also announced that the $4 million loan credit had raised another five million in backing from several international banks including Rabobank, Natixis, Royal Bank of Scotland and Standard Chartered Bank and further backing could come from Credit Agricole CIB, DBS Bank, Industrial and Commercial Bank of China and ING Bank.

Also in the US over the last week, eight meat and livestock organisations have filed a law suit aimed at blocking the passage of the mandatory Country of Origin Labelling law which was finalised by the US department of Agriculture in May.

In their complaint, the meat and livestock organisations including the National Pork Producers Council and the Canadian Pork Council said that the final rule violates the United States Constitution by compelling speech in the form of costly and detailed labels on meat products that do not directly advance a government interest.

They added that the 2013 regulation exceeds the scope of the statutory mandate, because the statute does not permit the kind of detailed and onerous labelling requirements the final rule puts in place, and that the rule is arbitrary and capricious, because it imposes vast burdens on the industry with little to no countervailing benefit.


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This Week's Articles and Analysis

Top Profit Robbers in a Sow Farm
Factors identified by Mark Chambers (Sunterra Farms) and Catherine Templeton (South West Vets) as most adversely impacting the profitability of the breeding herd are incorrect sow feeding levels, poor semen management, excessive herd replacement rates and insufficient focus on weekly pig flow rates. They were addressing the 2013 London Swine Conference.

Sow Culling
In no. 40 in its 'Action for Productivity' series, BPEX outlines the main reasons for culling sows and offers management guidelines on making those all-important decisions.

Simultaneous PCV2 and Mycoplasma hyopneumoniae Co-inoculation
A study carried out by researchers of CReSA in Spain shows that simultaneous porcine circovirus type 2 (PCV2) and Mycoplasma hyopneumoniae (Mhyo) co-inoculation does not potentiate disease in pigs seropositive for both pathogens.

Evaluation of Pork Loins from Crossbreds
A sensory and consumer evaluation of pork loins from crossbreeds between Danish Landrace, Yorkshire, Duroc, Iberian and Mangalitza found that the texture of pork from crossbreeds of Iberian and Mangalitza, Duroc and Landrace/Yorkshire differed.

LED Lighting in Swine Barns, Potential vs. the Present Reality
Robert Chambers, Engineer Swine and Sheep Housing and Equipment with the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) explains the advantages and disadvantages of LED lighting for pig farms.

Streptococcus suis Disease in Pigs
Marcelo Gottschalk of the University of Montreal in Canada outlines the clinical symptoms and control of Strep suis infections in pigs in this factsheet for Pork Information Gateway. The infection can be passed to people.

Impact of a Husbandry Education Program on Nursery Pig Mortality, Productivity and Treatment Cost
Training on the care of individual pigs and the correct execution of existing protocols significantly improved productivity and reduced mortality, culling and treatment costs in growing pigs in a new study from the US.

Company News

New Data Shows Intradermal Administration of Mycoplasma Vaccines More Efficient
UK - MSD Animal Health hosted a symposium featuring data supporting the efficacy of intradermal administration of new mycoplasma vaccines compared to standard intramuscular vaccination in swine. The event was held prior to the start of the 5th European Symposium of Porcine Health Management in Edinburgh, Scotland on 21 and 22 May.
Getting Pigs' Weights Right
UK - With many producers taking finished pigs to the upper extremes of their contract weight, accurate weighing of pigs is essential to minimise the risk of pigs being out of the weight-range tolerance.
Viet Nam: Hog Markets
VIET NAM - Ron Lane, Senior Consultant for Genesus Viet Nam & Meggie Vo, Research Assistant, provides the latest update on the hog market situation in Viet Nam.
Pork Commentary: December Corn Goes Below $5.00
US - Last Friday December corn closed was at $4.91 a bushel - the first time December corn closed below $5.00 for over two years, writes Jim Long.
Market Reports

China Wholesale Prices - 12 July 2013
AHDB Pig Market Weekly - 11 July 2013
QMS (Quality Meat Scotland) - July 2013
China Wholesale Prices - 11 July 2013
USDA WASDE July 2013
China Wholesale Prices - 10 July 2013
China Wholesale Prices - 9 July 2013

Global Pig Industry News

   United States

Anti-trust Waiting Time over Shuanghui-Smithfield Deal Expires
Hog Outlook: Drop in Number of PED Cases
Unprecedented Vote Erodes Historic Bipartisan Farm Bill Support
NPPC CEO Statement on House Farm Bill
NFU Opposes Splitting Nutrition Programs from Farm Bill
COOL Lawsuit Another Delaying Tactic, Says NFU
Special Report: USDA Data a Bit Bearish for Corn, Soybeans, But Focus Already Back to Weather
Major Concerns Raised in Senate over Smithfield-Shuanghui Deal
Senate Ag Committee Raises Grave Concerns with Smithfield Acquisition
Opponents Focus on Negative Impacts of M-COOL on US Meat Processors
CME: Meat, Poultry Demand Strong Through May
Weekly Roberts Market Report
Meat Organisations Challenge USDA over COOL
NFU Board Stands Strong: Do Not Split Farm Bill
Lessons from PED Could Help in Preparing for Other Diseases
Beef Exports Up; Pork Down Slightly as Russian Impact Felt
AFBF Files Suit to Protect Farmers’ Privacy
Residents Complain over Smithfield Pig Farms
Pork Exports Still Down; Domestic Consumption Shows Strength
Pork Producers Can See the Promised Land
CME: US Pork Exports in May Modestly Below Year Ago Levels

   Canada

Combination of Factors Contributes to Improved Pork Industry Profitability
Tools Developed to Address PCV Useful in Dealing with PED
Reducing H2S Exposure in Swine Buildings
High Feed Costs Continue to Challenge Pork Producers
CPC, CCA Join US Legal Action to Block USDA’s M-COOL Rule

   Brazil

Brazilian Hog Industry Exports Expected to Recover
Brazilian Meat Production to Expand

   Panama

MIDA Increases Monitoring to Prevent CSF

   United Kingdom

Farmers and Growers Urged to Shape NFU CAP Talks
Study Shows Consumers Want to Know How Food is Produced
Conserve Water and Soil Fertility to Increase Productivity under Climate Change
Calculator Counts Cost of Pig Disease
BOCM PAULS to Showcase British Pig Industry at Buckingham Palace
Scottish Govt Listens to Union on Water Regulation
NPA Calls for Help Keeping Deadly Disease Out of Britain
Great Yorkshire Show Kicks Off
Vivergo Plant to Cut Reliance on Feed Imports

   China

Chinese Agrifood Prices Remain Steady
FMD NEWS: China Reports Further FMD Outbreak in Tibet
More Chinese Firms Investing in US

   Finland

Atria Buys Saarioinen's Meat Processing Operation

   European Union

EFSA Marks First 10 Years, Preparing for Future Challenges
EU Pig Prices: Slaughter Pig Price Increase Expected

   Russian Federation

ASF Outbreak in Russia Affects Wild Boar

   Philippines

Lanao Norte Receives Farm Equipment Worth P5.8M
Pig, Poultry Raisers Urged to Invest in Waste Management Facilities

   Japan

Art's Way Scientific Awarded New Contract with Japan's Zen-Noh Livestock

   Global

Resolution of M-COOL Urged Before Stakeholders Begin Adjusting to New Rules

   Spain

Volume of Ham Exported up During January-April 2013

   Mexico

Mexico Promotes Sustained Growth of Livestock

   Ecuador

Ministry Drives Pig Production in Morona Santiago

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