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ThePigSite Newsletter - 09 September 2013

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ThePigSite
Monday 9th September 2013.
Jackie Linden - ThePigSite Senior Editor

Jackie Linden
Senior Editor


Weekly Overview: Smithfield-Shuanghui Deal Gains US Approval

Shuanghui International Holdings and Smithfield Foods have announced that they have received clearance on their proposed transaction from the required US authority and also governmental merger clearance in Ukraine.

Shuanghui International Holdings Limited and Smithfield Foods, Inc. announced late last week that the companies have received clearance on their proposed transaction from the Committee on Foreign Investment in the United States (CFIUS). It was also announced that governmental merger clearance for the deal has been given in Ukraine.

The transaction remains subject to Smithfield shareholder approval and other customary closing conditions. Smithfield's shareholders are scheduled to vote on the transaction at a special shareholders meeting on 24 September. Shuanghui International and Smithfield expect the transaction to close shortly thereafter.

Commenting on the news, the National Farmers Union commented that the news came as "a disappointment for family farmers and ranchers across the United States. The deal represents the sale of one quarter of US hog processing to a quasi-state-owned Chinese enterprise and is a dangerous precedent, in terms of food security and market competition".

Support for the deal with cannot be taken for granted from Smithfield's shareholders at their meeting on 24 September. One of its leading shareholders is urging others to vote against the company's proposed merger at the meeting in order to allow time for an alternative offer to be finalised.

Also at the end of last week, Smithfield Foods reported total sales 10 per cent higher in the first quarter of its 2014 financial year than in the same period last year. The Fresh Pork division reported an operating loss but the other businesses were in profit.

Also in US-China pork trade news, to keep its position as the number one pork exporter to China, the United States – through the US Meat Export Federation – is seeking every opportunity to set American pork apart from its competitors among the 17 other nations that are selling their product in China this year.

In the latest Poultry Quarterly Review for the third quarter of 2013, Rabobank's Agri Commodity Market Research team reports that a further downward slide in grain and oilseed prices to the end of 2014, assuming that the new crop supply at lest matches expectations.

And finally, a new report from the UK's Royal Veterinary College puts the global annual cost of Foot and Mouth Disease (FMD) at up to US$22 billion.


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This Week's Articles and Analysis

Does Adding Routine Antibiotics to Animal Feed Pose a Serious Risk to Human Health?
As fears rise over resistance, some countries have banned the routine use of antibiotics in animal feed. Two professionals with opposing views state their case in a recently published article.

Effect of Rubber Flooring and Social Grouping on the Utilisation of Free Space for Sows in Walk-in/lock-in Stalls
Sows spent significantly more time in areas with rubber flooring than concrete flooring. regardless of age of sow, report F.C. Rioja-Lang, J.A. Brown, Y.M. Seddon and H.W. Gonyou of the Prairie Swine Centre in its 2012-2013 Annual Report.

Post-partum Deaths: Piglet, Placental and Umbilical Characteristics
New research from Norway reveals that that uterine capacity limits litter size and that both the area and weight of the placenta affect pre-weaning mortality of the piglets.

Feeding a Gilt Developer Diet Will Improve Sow Longevity and Productivity
Gilts should be housed separately from finishers and restricted-fed a specially formulated gilt developer diet from 65kg or earlier, according to Amy Quinn, speaking at the Moorepark Research Dissemination Day 'Lameness in Pigs' in July 2013.

Tackling Mycotoxins in Animal Feeds
In an exclusive interview for ThePigSite, Dr Radu Marti of Biomin explains the dangers presented by mycotoxins in feed and how mycotoxin deactivators can greatly ameliorate the risks these toxins pose to the health of farm animals and consumers of animal proteins.

Concrete Slat Compliance. 3 - Slot Closure Inserts
In the third part of research trialling slot reduction and closure technique for the British pig industry, BPEX tested slot closure inserts. The results are published in no. 19 in its 'Research into Actions' series.

Planning for a Sow's Retirement
Easing transition for cull sows adds value while improving welfare, according to Terry Whiting, manager of animal health and welfare, Manitoba (Canada) Agriculture, Food and Rural Initiatives, speaking at a Zinpro event.

Managing Pig Health - Exclusive Preview

Company News

Viet Nam: Hog Markets
VIET NAM - The first six months of 2013 has been very difficult for swine producers. The rise in fuel costs, disease challenges and production costs - mainly due to increased feed ingredients costs, coupled with low market pig prices - have seen most farmers show losses during this time period, writes Fernando Ortiz.
Biomin Announces Premix Facility Opening in Viet Nam
VIET NAM - Biomin has announced the opening of its latest state-of-the-art premix facility in Binh Duong.
Danbred North America Adds Abell to its Genetics Team
US - Danbred North America announces the addition of Caitlyn Abell, Ph.D., to its team. Abell completed her doctorate degree with co-majors in animal breeding and genetics and statistics from Iowa State University in July, where she participated in numerous swine research projects, including estimating the total costs associated with incorporating genomic selection into a swine breeding program.
ACMC Tip: Choice of Terminal Sire is Vital
UK - With feed costs being the major financial component of rearing pigs, any improvements in feed conversion efficiency are enormously important.
Pork Commentary: Road Trip Russia – Week 3
RUSSIA - "Last week, our trip continued in Russia continued in the Ural Region of East Central Russia," writes Jim Long.
Market Reports

BPEX Weekly Export Bulletin - Week 36
BPEX UK Pig Meat Market Update - 5 September 2013
USDA Outlook for Agricultural Trade - August 2013

Global Pig Industry News

   Global

Weekly Overview: Smithfield-Shuanghui Deal Gains US Approval
OSI Establishes Global Trading Platform
FAO Food Price Index Continued to Fall
Feed Price Decline Forecast
Poor Farmers in the Sahel Require Urgent Funding
Global Cost of FMD Estimated at up to $22 Billion

   Australia

National Award for Advancing Sustainable Agriculture
Energetic Approach by Carbon Conscious Pork CRC

   United States

Cargill Builds $29-million Feed Mill in Iowa
Hog Outlook: US Pork Exports Up in July
CME: Sale of Smithfield Foods to Shuanghui Will Not be Blocked
Smithfield-Shuanghui Merger Approved in US, Ukraine; NFU 'Disappointed'
Packaged Meat Drives Smithfield's Quarterly Figures
USDA Criticised over Hog Inspection Projects
Researchers Determine Digestibility of Blood Products as Feed for Weaners
USMEF-China Opens a New Chapter in Pork Marketing
CME: FCStone Releases Corn and Soybean Yield Estimates
July Pork Exports Rise
Tyson Sponsors College Aggies Online Scholarship Competition
Weekly Increase in PED-Positive Submissions Steady
ISU Leads Air Emissions Research at Midwest Pig Farm
CME: Corn and Soybean Quality Rating Decrease
CME: Restaurant Operators’ Outlooks Turning Negative
Another Year of Rationing for Corn or Soybeans?
Pork Checkoff Board of Directors to Meet in Des Moines
What's Impacting Fall Hog Markets?
Smithfield Shareholders Urged to Vote against Proposed Merger
Plan Ahead for First ISU Bacon Expo
CME: Economic Conditions to Affect Capacities of Packing Sectors
Extended Withdrawal Needed to Avoid Penicillin G Residues

   United Kingdom

Food-producing Animals Receive 43 Per Cent of Animal Medicines
Planning Red-tape Ties up Pig Industry
CAP Clarity Needed to Curb Uncertainty
NOAH Films Reach to Consumers over Animal Medicines and the Food Chain
UK Average Pig Prices on the Rise
Complex Human Vaccination Strategy Needed in Case of Swine Flu Virus Pandemic
UK's Top Chefs Encouraged to Back British Farming
Don't Cause the Next Foot-and-Mouth Epidemic
Aid to Calculate Cost of High-welfare Farrowing Systems
Industry Association Warns Against Swill Feeding

   Canada

Discovery Centre Dispels Myths Surrounding Food Production
Pig Code Development Committee Reports Significant Progress
Pig Committee Committed to Consensus on Final Pig Code of Practice
Ongoing Delays in Resolution of US M-COOL Disappointing

   Brazil

Brazilian Pork Prices Weakened in August

   Spain

Workshops on Entire Male Pigs and Boar Taint

   Netherlands

Dutch Report Animal Tests Add Little to GM Crop Testing
Trade Agreement with Ukraine Offers Dutch Farmers More Opportunities

   France

Agriculture to Go Back on the Curriculum

   Italy

Piglets Perkier after Sow's 'Espresso' Treatment

   Germany

VION Concentrates German Pork Production

   Argentina

Pigs Slaughtered after Trichinosis Confirmed

   Russian Federation

Cherkizovo Increases Pork Capacity by 50 Per Cent

   European Union

EU Pig Prices: Period of Consolidation – Demand Continues to be Good

   Denmark

Slaughterhouse Workers to Invest in Pig Production

Events/Promotions

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Novartis Animal Health - Ileitis Guide

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