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Jim Long Pork Commentary: Genesus new video

02 October 2017
Jim Long on ThePigSite

Jim Long is President &
CEO of Genesus Genetics.

We just finished a corporate video for Genesus. Doing it, we learned to appreciate the time and effort it takes to write and make a real Hollywood movie. Lots of time, lots of film, lots of editing, and lots of critics. In the end you get a finished film.

We believe the new Genesus video captures who we are and what we do. Genesus wants to earn the right to be your swine genetic supplier. Please watch the video at Genesus.com

Any comments would be appreciated to jimlong@genesus.com
Coming soon the video will be in Spanish, Russian, Chinese, French, Korean, Vietnamese, Thai, and maybe more…

Some Observations

Reports from Europe indicate that 100 PED outbreaks have been identified in Germany and Netherlands. Veterinary certificates, confirming the absence of PED symptoms, are now requested for all animals (not only breeding stock) coming from these areas. If it spreads further it could create havoc in the movement of feeder pigs for Netherlands and/or Denmark. PED is a nasty disease, but it can go away on the farm after a few weeks. Europe’s biggest fear must be the risk of African Swine Fever. If it gets moved in from Ukraine, where it has spread widely, it would not only devastate production, but close most if not all pork export markets.

National Pork Producer Council (NPPC) is working to get funding for a foot and month vaccine reserve. This is admirable initiative. Last week Dr. Scot Dee spoke, at the Leman Conference, on how some pathogens can live for significant time in feed products like soy meal.

One thing that we don’t understand is why North America sends intestines to China to be cleaned and then returned to be used in casing for sausages. There is no doubt China has foot and mouth disease. We wonder the risk our industry is put under, by ship-clean-return program, for our swine health. How do we know we get the same intestines back? People handling this know the risk factor? Where did we get PED from? Maybe smarter people than us can explain the lack of risk of ship-clean-return program? Foot and Mouth would devastate the North America Swine Industry.

Other Observations

Last week (Monday-Friday) the US marketed 2,271,000; a year ago 2,189,000. Per day 454,200 this year versus 437,800 last year. The increased difference is the reality of new packer capacity at:

  • Seaboard-Triumph, Sioux City, Iowa;
  • Clemens, Coldwater, Michigan
  • Prime, Windom, Minnesota and Moonridge, Missouri.

We expect to see even grater daily marketing in the weeks ahead, reaching at least 465,000 sooner rather than later.

US Beef production continues to show strength. On Friday USDA released the cattle on feed inventory for Sept. 1, which showed 4% more cattle on feed compared to a year ago. Last week we showed USDA’s projection of record per capita meat disappearance. Good thing, vegans are a minority because record pork, beef and chicken production will need to be eaten.

US August sow slaughter at 255,000 was down 1,300 from last year’s August number. Year to date US sow slaughter is up 7.3 % compared with last year. Increased sow slaughter year to date indicates to us limited sow heard expansion.

At end of August, US pork in cold storage was 575,681 million pounds, last year same time 608,955 million pounds. 5% less, year over year. Relatively positive indicator to us as 2017 has had record pork production and obviously less pork has been stored.

Interesting that last week Mexico hog price was 28,92 MXN/kg live weight or 73.48 US live weight a Lb. The US price about 40c live weight a Lb. This spread is about $75 per market hog. This is the largest spread we have ever seen between the two countries. We expect convergence.
Currently Canada-USA have lowest hog prices in the world.

Other countries price examples in US currency, live weight per Lb: Mexico 78.48c, Brazil 55.17c, China $1.01, Russia 88c, Spain 72.96c. We expect global pork buyers will purchase more US pork.

Summary

Not pretty times for America hog producers. Good thing the new packing plants are running. Its helping prices, believe it or not. The next 3 months will be tough.

Author: Jim Long, President & CEO, Genesus Genetics

To find out more about Genesus Genetics,
please take the time to visit their website at
www.genesus.com.

The opinions expressed in this commentary are entirely those of the author and can not taken to represent the views of ThePigSite.com, its owners or its management.



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