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ThePigSite Newsletter - 06 July 2015

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Monday 6th July 2015.
Lucy Towers - TheFishSite Editor

Lucy Towers

Big Dutchman



Novus International

Boehringer Ingelheim




MSD Animal Health


JBS Acquires Cargill's US Pork Operations for $1.45 billion

It was surprising news last week when JBS's USA Pork division announced that it had entered into an agreement to acquire Cargill's US pork business for $1.45 billion.

The acquisition includes two Cargill processing plants, five feed mills and four hog farms. 

“The announcement of our agreement to purchase the Cargill pork operations is a strategic investment in the long-term growth of our domestic and global pork business and demonstrates our continued commitment to the US livestock sector,” said Martin Dooley, president and COO of JBS USA Pork.

“This transaction will strengthen our position as a producer and supplier of all major animal proteins around the world, and provide increased opportunities for our producer partners and key customers. The strength and success of Cargill’s pork team and hog suppliers, as well as its industry leadership in areas such as animal welfare, exports, bacon production and innovation, were significant and compelling factors that led us to pursue this acquisition and enhance our ability to serve our diverse, global customer base.”

Discussing the reasons for the acquisition, Steve Meyer and Len Steiner wrote in the CME that JBS has been aggressively buying meat assets all over the world in the past few years.

According to Mr Meyer and Mr Steiner, this is the first time that JBS has entered into primary hog production — at least on any scale as significant as this.

According to Successful Farming’s 2014 Pork Powerhouses listing of the nation’s largest pork producers, Cargill ranked 8th with 161,000 sows.

Completion of the acquisition is now subject to regulatory and competition review and approval. 

Putting together the third and fourth largest pork packers will increase the industry’s four-firm concentration ration (CR-4) by 8.2 per cent to 63.0 per cent by moving Hormel to the number four spot in the rankings, said Mr Meyer and Mr Steiner.

More importantly, combining these high-ranking companies will drive up the Herfindahl-Hirschman Index (HHI) by about 190 points. 

In disease news, Canada has reported a new outbreak of Porcine Epidemic Diarrhoea (PED) at a farrow-to-finish farm in Lambton County, Ontario.

There was more bad news in African Swine Fever (ASF) as Russia reported the disease in a village pig herd, confirming that the disease is starting to spread outside wild boar populations once more.

Across the three effected villages in Saratovskaya, 335 pigs were destroyed. 

Over the past week, there have also been outbreaks of ASF in wild boar. Three outbreaks were reported in Estonia, two in Russia, 15 in Latvia and one in Ukraine.

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This Week's Articles and Analysis

Global Protein Developments: What are the Implications for the Meat Industry?
Global protein demand will increase by a factor of 3.5 over a 50 year period, namely from 1980-2030. Poultry will show the biggest increase in demand, followed by eggs, with seafood and beef having the lowest increase in demand, writes Stuart Lumb.

Endemic PRRSV Infection of Nursery Pigs in Two Swine Herds without Current Reproductive Failure
The porcine reproductive and respiratory syndrome virus (PRRSV) affected nursery pigs on two farms that had normal reproductive for more than two-and-a-half years following an outbreak, and piglets on one farm showed signs of septicaemic salmonellosis.

A Perspective of Stockpersons and the Humane Euthanasia of Swine
The role of the stockperson in the humane killing of pigs is explained by Madonna Gemus-Benjamin and Scott Kramer of Michigan State University (MSU), Alastair Bratton (Verus Health Alliance) and Tina Conklin (MSU Extension) in the latest issue of 'MSU Pork Quarterly'.

Company News

Diagnostics Role in Identifying Foreign Animal Disease
ANALYSIS - Dr. Patrick Webb, Director of Swine Health Programs with the National Pork Board, said top notch diagnostics play an important role in detecting trade-limiting foreign animal diseases.
Ceva Animal Health Requests Proposals for Swine Reproductive Research
US - Ceva Animal Health is seeking proposals for applied research studies that will focus on improving gilt and sow reproductive performance to help answer long-standing questions in swine breeding.
Industry Trends, Like Animal Welfare, Drive Hog Slat's Global Business
ANALYSIS - David Herring, Vice President of Hog Slat, said global industry trends drive their business and domestic and international offering.
Pork Commentary: USDA June Quarterly Hogs and Pigs Report
US - Last Friday the USDA released the June 1st Quarterly Hogs and Pigs Report, writes Jim Long President – CEO Genesus Inc.
Market Reports

AHDB Pork Weekly Export Bulletin - 6 July 2015
AHDB Pig Market Weekly - 2 July 2015
UK Animal Feed Statistics - May 2015
AHDB Pork UK Pig Meat Market Update - July 2015
USDA Agricultural Prices - 30 June 2015

Global Pig Industry News

   United States

Hog Outlook: JBS, Cargill Acquisition
Update on Swine Enteric Coronavirus Disease in US
CME: Why did JBS Purchase Cargill?
New Swine Health Intelligence Centre Offers Defence Against Disease
Hog Producers Expected to Remain Profitable Despite Lower Margins
JBS to Acquire US Cargill Pork Business
Update on Swine Enteric Coronavirus Disease in US
Hogs and Pigs Report a Mixed Bag of Inventory Numbers
CME: Hog Report Shows Fall in Breeding Herd since Previous Quarter


New PED Outbreak Reported in Lambton, Ontario
Saskatchewan Identification Scheme to Help Disease Preventions
Global Search for New Saskatchewan Swine Welfare Academic Position
US Live Hog Prices Expected to Decline Slowly for Rest of 2015
New Phone App Allows Quick Reporting of Swine Health
Canadian Truck Wash Facility Registration Moves Forward

   Russian Federation

Russian African Swine Fever Outbreaks Hit Village Pigs
Further African Swine Fever Reported in Russia


African Swine Fever Outbreak in Ukraine

   United Kingdom

AHDB Pork Yearbook - The Entire Pig Industry in Figures
BVA Promotes Farm Safety Guidance as Survey Reveals High Injury Levels
New Sausage-Making World Record Set at Royal Highland Show
New Wales Veterinary Science Centre Opens at Aberystwyth
Opening New Export Markets is Vital to UK Agriculture
Pure Pig Genetics Takes Over ACMC
Tesco's Must Make Meaningful Commitment to Industry, says NFU
Pork Purchases Still Down Despite Strong Shoulder Sales


Huge Opportunities for Agricultural Growth in West Africa
Food Prices Expected to Fall Over Next Decade
UK, US Feed Market Prices Improving
Sustainable Intensive Agriculture: The Route to Feeding 9 Billion by 2050


Sharing Knowledge of Animal Nutrition Can Help Bridge the Productivity Gap
Science Bridges the Gap to Future Food Security


Fifteen More African Swine Fever Outbreaks in Latvia


America Backs Mexican Meat Quality, Safety

   European Union

EU Pig Prices: Thunderbolt Hits Pig Market - Germany Fuels Uncertainties


More African Swine Fever Reported in Estonia


The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
Operations Manager – Based In Russia - Gvardia LLC
Training Manager – Based In Russia - Gvardia LLC
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Antimicrobial Resistance
Livestock Event 2015 - 8th & 9th July Birmingham NEC, B40 1NT
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Drinking Systems
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Novus International - Performance Unleashed
MSD Animal Health - It's a New Day for Animal Health
PIC - Never Stop Improving
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Hog Slat - Grower Select
Circovac - Vaccines against PCV2 and PMWS.


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Hypor - The world's local breeder
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JSR Genetics
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ECO Animal Health
AB Vista Feed Ingredients - integrated supplier of new generation micro-ingredients for animal feeds
Zoetis Animal Health - Fostera PRRS
Nutriad - We Know Pigs


PPT-Pig Production Training Ltd
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Axcentive - Halamid The Universal Disinfectant
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