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ThePigSite Newsletter - 16 May 2016

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Monday 16th May 2016.
Lucy Towers - ThePigSite Editor

Lucy Towers

Novus International



Big Dutchman



Boehringer Ingelheim


MSD Animal Health


Pig and Poultry Fair Overview 

Last week ThePigSite was in Stoneleigh Park for the UK's Pig and Poultry Fair.

Opening the pig sessions for the day, Phil Woodall from Thames Valley Cambac and Meryl Ward, AHDB Pork, discussed the outlook for the UK's pig industry.

The UK's pig sector has been struggling over the last 18 months with negative margins for most of the industry. While production has increased, consumption has fallen, mainly due to the WHO report linking meat with cancer and also due to a retailer shift to reduced promotional activity, said Mr Woodall.

Mr Woodall went on to explain that many of the big supermarkets have seen a decline in sales and supermarkets such as Aldi and Lidl have been taking over, creating a move to everyday low prices.

There is also pressure from cheap imports from Europe and weakened currency.

With the current market conditions, Ms Ward noted the importance of matching supply with demand and therefore if we cannot sell a pig we should not produce it.

Opportunities for Growth

UK pork exports have experienced good growth. In 2015, the UK exported 58,000 tonnes of pig offal and this is expected to increase in 2016.

China has been a big driver in this export growth and with its rising consumption there will be potential for 5 million tonnes of exports, said Ms Ward. 

UK products also sell for much higher prices abroad, which is partly due to the UK's reputation for having high pig welfare.

However, the high welfare standards means the cost of production is higher for UK producers, around 1.42 p/kg cold weight. This is very high in comparison to other European countries. For example Germany (1.22) and Spain (1.19).

We therefore need to look at these costs, said Ms Ward.

Mr Woodall added, the UK pig industry must be price competitive with the EU. We must improve efficiency, invest in new finishing accommodation and have heavier carcass weights if we are to compete.

In terms of opportunity for the domestic sector, the pig industry needs to adapt and innovate in order to meet the ever evolving consumer lifestyle driven needs.

It is now all about convenience, Mr Woodall explained. The average time spent cooking in an evening is now down to just 30 minutes.

Processors should also focus on savoury snacks as this seems to be the biggest opportunity area where new products can take hold.

There are also changing concerns with antibiotic reduction and Salmonella scoring. The industry needs to be clear on talking about these issues with consumers and reiterate the safety of our produce, said Ms Ward.

Looking at carcass balance will also help improve the UK's pig sector.

Both Ms Ward and Mr Woodall spoke about the big imbalance in how we use the carcass. They noted that we need more pigs to meet the demand for loins, but less for the shoulder.

However, they noted that the recent pulled pork campaign has helped shift these shoulders, therefore showing the importance and effectiveness of innovative marketing to drive the growth of the industry. 

The industry now needs to find similar ways to increase sales of other difficult bits of the carcass.

Looking to the future, Mr Woodall said that he thinks UK pig production is likely to decrease with further herd exits/reductions.

Ms Ward also noted that other changes the industry should be aware of are keeping a focus on disease contingency planning, especially in light of Defra budget cuts and the growing support of country of origin labelling on processed products.

Read more of our Fair coverage and keep a look out on the website for our Innovation Trail interviews.


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This Week's Articles and Analysis

Managing Variation to Achieve Uniformity in Pig Production
Many packers utilize payment methods that require producers to ship pigs that meet certain targets in order to maximize income from their pigs. These targets are largely centered around slaughter weight and lean yield. If a pigs weight is too light it is discounted. If a pig is too fat it is discounted. In order to receive the most money for a group of pigs the producer wants the largest number of pigs (ideally all of them) to fall within the "sweet spot" where there are no discounts and possibly some premiums, writes Nick Boddicker, PhD, Genesus Inc.

Classifying Swine Herds by Porcine Reproductive and Respiratory Syndrome Virus Status
The purpose of this paper is to provide a herd classification system for describing the PRRSV status of herds, based upon a set of definitions reflecting the biology and ecology of PRRSV.

Company News

Jamie Williams Joins Genesus
CANADA - Genesus wishes to welcome Jamie Williams to our Genetic Sales and Technical Group.
USA Pork Market
US - The first part of May is always a good time to look at forward pricing some hogs. I actually used the date May 10th to look at hedging 4th quarter needs. Cash hogs during the summer months seem to take care of themselves.
What Does it Take to Create a Sustainable Farm in China?
CHINA - Big Dutchman China, in collaboration with Alltech, capped off a successful week by hosting and conducting The 2016 Pig week in the Chinese cities Shenyang and Beijing. The event was held April 19 in Shenyang and April 21 in Beijing.
Ceva Swine Adds Sales Veteran Julie Schwalbe to US Sales Team
US - Julie Schwalbe has joined Ceva Animal Health’s swine business unit as strategic account manager. In her new role, Schwalbe’s number one priority is the customer – listening and learning about their needs while going above and beyond to provide an unparalleled customer experience.
Industry Insights: Increased Production, Improved Animal Welfare Meet Global Needs
ANALYSIS - The growing population, increases in household income and water scarcity are key drivers for the protein industry, and technology that can increase production and improve animal welfare will be important in meeting these challenges, according to Francois Fraudeau, president and CEO of Novus International.
Pork Commentary: Cash Lean Hogs Raise Higher
US - The seasonality of Hog Prices is alive and well. Last week 53-54% lean hogs jumped 4¢ a lb. or over $8.00 per head.
Demonstration Farm Helping Pork Industry See Benefits of Pig-Castration Alternative
US - A group of 250 intact male piglets arrives at the demonstration farm ready to be the face of a new type of pork production. Beginning at approximately 25 days of age, these piglets will unknowingly spend the next 125 to 150 days showing all links of the pork chain the value of a castration alternative that’s slowly been gaining traction worldwide over the past 10 years.
Market Reports

AHDB Pig Market Weekly - 16 May 2016
AHDB Pork Weekly Export Bulletin - 16 April 2016

Global Pig Industry News

   United States

Hog Outlook: WASDE Estimates Increase in Pork Production
CME: Strong Gains in Lean Hog Futures
US Pork Exports to China/Hong Kong Surge
CME: Large US Meat Supplies Bolster Consumption
Rules Finalised on US Antibiotic Sales Reporting
World Pork Expo’s MusicFest 2016 Lineup Set
CME: Pork Continues Year-on-Year Gains
New Study Presents Strategies for Producing Food for Growing Population
USDA Provides $16 Million for Sustainable Agriculture Research

   United Kingdom

Report Calls for CAP Reform to Better Support Farmers in Volatile Times
Vets Call for Unrestricted Access to Slaughterhouse CCTV
England's Pig Farm Profitability Falls 24 per cent in 2014-15
Pig & Poultry Fair: New Technology Improving Pig Farm Performance
Pig & Poultry Fair: New App Helps Pig Producers Combat Pig Disease Pressure
Pig & Poultry Fair: Brexit Debate Divides Farmers
Pig & Poultry Fair: Cooperation Needed to Increase Pig Industry Profitability
Visitors Flock to British Pig & Poultry Fair Opener
Have Your Say at AHDB Pork Pig Meetings


Brazil Pork Exports Continue to Grow - Less Dependence on Europe

   European Union

EU Politicians Vote to Support Origin Labels on Meat, Dairy
EU Pig Prices: Scarce Quantities of Pigs on Offer


Multidisciplinary Approaches Offer Most Effective Solutions to Pork Industry Challenges
Research Demonstrates Effectiveness of Hydrovac in Cleaning Swine Transport Trailers


Danish Breeding Herd Continues to Contract


La Niña Now Set to Impact Global Weather


How to Remove Environmental Pollutants from Raw Meat
CT Scans - A New Tool for the Meat Industry


The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
Operations Manager – Based In Russia - Gvardia LLC
Antimicrobial Resistance
Biomin - The Global Mycotoxin threat 2016
Official Vet Conference September 2016
Genetic Services Manager - PIC

Thermo Fisher - PRRSV Screening Alternatives Webinar
Livestock Event 2016 - 6th & 7th July Birmingham NEC, B40 1BT
IPVS & ESPHM Dublin 2016 7-10 June


Voice of Sustainable Pork - Boar Taint Vaccination
PIC - Never Stop Improving
Boehringer Ingelheim - Prevention Works
Novus International
Porcilis PCV ID
Ceva - Fertipig®
Hog Slat - Grower Select
Biomin - Naturally Ahead
Circovac - Vaccines against PCV2 and PMWS.
Fresh Air - The Best Invention Since Pig Equipment


More on VIROCID - The Global Disinfectant
Nutriad - We Know Pigs
Hypor - The world's local breeder

AB Vista Feed Ingredients - integrated supplier of new generation micro-ingredients for animal feeds
Life Technologies
Genesus - The first power in genetics


Axcentive - Halamid The Universal Disinfectant
PPT-Pig Production Training Ltd
Osborne Industries - ACCU-TEAM
The Pig, Poultry, Beef, Fish, Dairy, Meat, Cattle, Crop & Bioenergy Sites From 5M Publishing From 5M Publishing

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