Saturday, December 20, 2008

China reports H5N1 outbreak

The deadly H5N1 strain of the virus was discovered on a chicken farm in Dongtai city and in another farm in Haian county both in eastern Jiangsu province, the ministry said in a statement posted on its website.

The discovery had prompted local agricultural authorities to step up vaccinations, while culling 377,000 chickens in the area around the farms. The spread of the virus had not been detected in any other areas around the two farms, it added.

Hong Kong outbreak
The discovery in Jiangsu comes after an outbreak in Hong Kong, on the south coast of China, last week resulted in the slaughter of more than 90,000 chickens there.

China's agriculture ministry warned last week of further bird flu epidemics in the nation during the winter months when migratory birds are in flight and weather conditions provide a good environment for the spread of the virus.

China has had several bird flu outbreaks this year, and three Chinese have died from the virus so far in 2008, according to earlier reports.

Thursday, December 18, 2008

Fresh bird flu outbreak in India

Following the discovery of thousands of dead chickens, authorities in eastern India have confirmed a fresh outbreak of bird flu.
Laboratory tests have reportedly confirmed that the birds in West Bengal state died of the deadly infection, resulting in culling of thousands of chickens.

Earlier in 2008 health authorities killed approx. 5 mln poultry to control the virus, which had spread to 14 of the 19 districts in West Bengal.

Over the past 2 weeks, officials in the northeast state of Assam have already killed 250,000 chickens to control the spread of the infection.

India has still not reported any human case of the deadly H5N1 strain of the virus.

US poultry industry in contraction phase

Higher feed costs, an over-supply of broiler meat as well as economic slowdowns in the domestic and foreign markets have pressured poultry prices leaving the US poultry industry struggling to maintain profitability.

This was recently reported by the Livestock Marketing Information Center.

The broiler industry has initiated cutbacks in the hatchery flock and beginning to mitigate recent large year-to-year gains in bird weights. These actions have been evident in the weekly eggs set and chicks placed data since late summer, as well as recent broiler slaughter numbers.

Since late April, the number weekly eggs set by producers have been consistently below a year ago with the largest year-to-year declines posted in the 4th quarter. During October and November egg sets were down 8% and more than 3% lower than the 2002-2006 average. Meanwhile, the number of chicks placed is down more than 7% thus far this quarter with further below year ago numbers expected given recent declines in egg sets.
US broiler production for October was below a year ago due to a smaller number of birds, as the number of slaughter days was equal to 2007.

According to a USDA-NASS report, in October US broiler production (ready-to-cook basis) was down 3% from 2007, but remained about 8% over the 2001-2006 average. Based on preliminary weekly data, US broiler production for November should be 5-6% lower than 2007. That trend will continue in December and then well into 2009.

Wednesday, December 17, 2008

Bird flu flares up in Asia

By Lindsey Klingele on 12/17/2008
of MeatingPlace.com

More than 300,000 chickens were slaughtered in China after agriculture officials found birds there infected with the highly pathogenic H5N1 strain of avian influenza, the Wall Street Journal reported.

The occurrence is the latest in a string of bird flu-related scares to occur in Asia over the past few weeks, following flare-ups in Hong Kong (see Hong Kong confirms bird flu is deadly H5N1 strain, Meatingplace.com, Dec. 11, 2008) and India.

The outbreak in the northwest province of Jiangsu is the first to be reported in China since June. According to the World Health Organization, avian influenza has claimed the lives of 29 individuals this year.

Scientists and government officials are questioning the effectiveness of vaccines that are currently used to protect poultry from bird flu in Asian countries. Now Guan Yi, an expert on the H5N1 virus at the University of Hong Kong, told Reuters that poultry farms in some parts of the world are still using vaccines that don't provide full protection against the highly pathogenic H5N1 strain of the virus.

"That vaccine (used in Hong Kong) was made to fight an American strain of the H5N2, and it is very distant from the Guangdong strain of the H5N1 virus here," he said. "Not that there is an outbreak (in Hong Kong), we assume it is useless."

Russia Blocks More U.S. Pork Exporters

Russia has blocked imports from more U.S. pork processing plants. Among them are JBS-Swift & Co.'s plant in Worthington, Minn., according to USDA's Food Safety and Inspection Service.

Other plants blocked by Russia include Albert Lea Select Foods of Albert Lea, Minn.; Rupari Food Service of South Holland, Ill.; Northwood Farms of Northwood, Iowa; and Dakota Pack, of Estherville, Iowa. The ban is effective Dec. 20.

Russia has offered nothing in the way of explanation, other than to inform USDA that these plants did not meet Russian import protocol, FSIS spokeswoman Amanda Eamich told Meatingplace.com.

The latest action comes one week after Russia suspended imports from six other U.S. pork plants. That came about two weeks after Moscow banned an Indiana pork packer.

Russia is cutting its pork import quota by 200,000 tons for 2009, saying it can produce it themselves.

Ebola stops Singapore-bound pork shipment

The Philippines has stopped a shipment of 50,000 tonnes of pork to Singapore after traces of low pathogenic Ebola-Reston virus were found on some hog farms in the country, officials said on Monday.

The shipment was supposed to be the country's first-ever pork export. The pork products were set to be sent to Singapore on Dec. 10 when the government voluntarily stopped the shipment due to food safety concerns, said Davinio Catbagan, director of the government's animal industry bureau.

The Ebola Reston virus scare broke out Wednesday last week when the DA and the Health department confirmed that six out of 28 hog tissues tested positive for the virus. The hogs were from four swine farms in Pandi (Bulacan province), Manaoag (Pangasinan) and backyard farms in Talavera and Cabanatuan (Nueva Ecija).

The hogs from the commercial farms were immediately quarantined following the confirmation, but last week, Agriculture Secretary Arthur Yap said the hogs that were quarantined in swine farms in Luzon were all tested negative for the Ebola Reston virus strain. Yap said the case may be considered "isolated," considering that the strain had not spread and no additional cases were reported.

Following the negative results of all hogs quarantined, the RITM would most likely cease the testing of hogs from Luzon piggeries.

USDA recalls pork amid dioxin fears

The US Department of Agriculture’s (USDA) Food Safety and Inspection Service has issued three class two alerts for dioxin contamination in imported pork.

In all three cases, the Food Safety Authority of Ireland (FSAI) notified the FSIS of the possible dioxin contamination based on its routine surveillance testing. The FSIS said it has reason to believe that the retail locations listed received the recalled pork products.

In the first recall, Dawn International of Acton, Massachusetts is recalling approximately 33,880 pounds of fresh pork products. The second class two recall involves Tommy Moloney’s, Inc, of Long Island City, in New York. The recall involves eight-ounce packages of “Tommy Moloney’s Traditional Irish Breakfast Bacon, Made from imported Irish Pork.” The third recall involves Rupari Food Services of Deerfield Beach, Florida.

USDA recalls pork amid dioxin fears

The US Department of Agriculture’s (USDA) Food Safety and Inspection Service has issued three class two alerts for dioxin contamination in imported pork.

In all three cases, the Food Safety Authority of Ireland (FSAI) notified the FSIS of the possible dioxin contamination based on its routine surveillance testing. The FSIS said it has reason to believe that the retail locations listed received the recalled pork products.

In the first recall, Dawn International of Acton, Massachusetts is recalling approximately 33,880 pounds of fresh pork products. The second class two recall involves Tommy Moloney’s, Inc, of Long Island City, in New York. The recall involves eight-ounce packages of “Tommy Moloney’s Traditional Irish Breakfast Bacon, Made from imported Irish Pork.” The third recall involves Rupari Food Services of Deerfield Beach, Florida.

Friday, December 12, 2008

USDA lowers meat production, export, price forecasts

USDA reduced its total U.S. meat production forecasts for 2008 and 2009 from last month, reflecting lower forecasts for all meats in 2008 and lower forecasts for beef and poultry more than offsetting predicted production gains in pork in 2009, according to the agency's monthly World Agriculture Supply and Demand report.

Beef

U.S. beef production for 2008 was reduced to 26.589 billion pounds from 26.699 a month ago. USDA predicts cattle placements for the remainder of 2008 will decrease, resulting in reduced beef production during the first half of 2009.

The agency barely changed its beef export forecasts from last month, reflecting actual third-quarter data. Beef exports in 2008 were raised ever so slightly to 1.860 billion pounds from 1.841 billion pounds forecast in November. USDA maintained its 2009 forecast for beef exports at 1.900 billion pounds. International demand is expected to remain weak amid economic uncertainty, and a stronger U.S. dollar may further dampen sales, the agency said.

USDA lowered its average Choice steer price (Nebraska, Direct, 1,000-1,300 pounds) for 2008 to $92.59 per hundredweight from $93.22 projected in November. For 2009, the agency lowered its average price range forecast to $92 to $99 from $93 to $100 last month.

Pork

U.S. pork production for 2008 was reduced somewhat to 23.419 billion pounds from 23.452 billion pounds projected last month. USDA raised its pork production forecast for 2009, saying lower feed costs result in slightly heavier weights.

Pork export forecasts are reduced for 2008 and 2009 for the same factors affecting beef exports. USDA lowered its 2008 export forecast to 4.769 billion pounds from 5.068 billion pounds last month. For 2009, the agency reduced its forecast to 4.100 billion pounds from 4.500 billion pounds predicted in November.

USDA dropped its average barrows and gilts (live equivalent 51-52 percent lean) price estimate for 2008 to $47.73 per hundredweight from $47.86 per hundredweight projected last month. For 2009, the agency maintained its predicted range of $48 to $52.

USDA lowers meat production, export, price forecasts

USDA reduced its total U.S. meat production forecasts for 2008 and 2009 from last month, reflecting lower forecasts for all meats in 2008 and lower forecasts for beef and poultry more than offsetting predicted production gains in pork in 2009, according to the agency's monthly World Agriculture Supply and Demand report.

Beef

U.S. beef production for 2008 was reduced to 26.589 billion pounds from 26.699 a month ago. USDA predicts cattle placements for the remainder of 2008 will decrease, resulting in reduced beef production during the first half of 2009.

The agency barely changed its beef export forecasts from last month, reflecting actual third-quarter data. Beef exports in 2008 were raised ever so slightly to 1.860 billion pounds from 1.841 billion pounds forecast in November. USDA maintained its 2009 forecast for beef exports at 1.900 billion pounds. International demand is expected to remain weak amid economic uncertainty, and a stronger U.S. dollar may further dampen sales, the agency said.

USDA lowered its average Choice steer price (Nebraska, Direct, 1,000-1,300 pounds) for 2008 to $92.59 per hundredweight from $93.22 projected in November. For 2009, the agency lowered its average price range forecast to $92 to $99 from $93 to $100 last month.

Pork

U.S. pork production for 2008 was reduced somewhat to 23.419 billion pounds from 23.452 billion pounds projected last month. USDA raised its pork production forecast for 2009, saying lower feed costs result in slightly heavier weights.

Pork export forecasts are reduced for 2008 and 2009 for the same factors affecting beef exports. USDA lowered its 2008 export forecast to 4.769 billion pounds from 5.068 billion pounds last month. For 2009, the agency reduced its forecast to 4.100 billion pounds from 4.500 billion pounds predicted in November.

USDA dropped its average barrows and gilts (live equivalent 51-52 percent lean) price estimate for 2008 to $47.73 per hundredweight from $47.86 per hundredweight projected last month. For 2009, the agency maintained its predicted range of $48 to $52.

Ebola detected in Philippine pigs

The Ebola-Reston strain has surfaced in Philippine swine samples proving that the deadly disease is capable of infecting livestock.

Ebola, one of the most feared infectious diseases, were discovered during tests at a USDA laboratory. The World Health Organization, said it is looking into whether the infection in pigs poses any threat to humans.

“While it’s believed that Ebola-Reston is primarily a disease of animals, we are working with the Philippines government to see if there are any potential risks to humans,” said Gregory Hartl, a spokesman for the WHO in Geneva. “At the moment, we believe the risks are quite low.”

Swine outbreak
The pigs, which came from four farms north of Manila, were also infected with at least two more-common diseases, stated Davinio P. Catbagan, the Philippines’ chief veterinary officer. An outbreak of diseases which begun late last year wiped out entire herds in some cases.

Planned shipments to Singapore have now been suspended. “We are suspending pork exports until we’re sure there’s no risk to humans”, Agriculture Secretary Arthur Yap told reporters in Manila.

It is the first time Ebola has been reported in pigs. A Philippine report however said the pig outbreak was “considered of negligible public health importance.”

Quarantine
All animals in the affected areas have been quarantined while officials conduct an epidemiological investigation into the outbreak.

The infected pigs were from Santo Nino in Bulacan province, Pinagpanaan in Nueva Ecija province and Manaoag in Pangasinan province. The animals were also infected with porcine circovirus type 2 and a type of porcine reproductive and respiratory syndrome similar to that which killed pigs in China and Vietnam during the past two years.

Thursday, December 11, 2008

Porcine reproductive and respiratory syndrome, Philippines

Information received on 10/12/2008 from Mr Davinio P. Catbagan, Chief Veterinary Officer, Department of Agriculture, Office of the Director of the Bureau of Animal Industry, QUEZON CITY, Philippines.





Wednesday, December 10, 2008

Responses to Irish pork fears

The complete withdrawal of all Irish pork products must be seen as an emergency precautionary measure to reassure the public. This action was taken to ensure consumer confidence in the safety of Irish-produced products, according to IFA President Padraig Walshe.

Walshe said over 90% of Irish production was completely free of any connection to the single source of the contaminated feed. Over the week-end the IFA has co-operated fully with the Department of Agriculture, FSAI and public health agencies to isolate the problem.


Walshe said he was greatly heartened and highly appreciative of the many calls of support he had received from the public and consumers.


Christmas supply

The IFA President said “there are over 400 farms ready to supply prime produce as soon as the logistics of the recall was completed.” He said he hoped the industry would be fully operational by Tuesday under the supervision of the Department of Agriculture, with all the necessary testing and controls in place.


Walshe said there is no reason why the Irish industry cannot supply the traditional Christmas ham requirements of consumers. “Once Irish consumers are sure of the safety and high quality of the product, they will support a traditional sector that has always played an important role in Irish farming.”


Economic effect
Bloomberg is reporting that Irish pork producers are facing a 100 million-euro ($128 million) bill to recall all pork products made from pigs slaughtered in the country following the dioxin scare.


Around 10 percent of Ireland’s estimated 1.47 million pigs may have been exposed to feed containing dioxins, associated with cancer. Ireland exports about 1 million euros of pig meat a day and authorities in the UK are advising consumers not to eat any pork from Ireland. Meanwhile other countries are being quick to reassure consumers that they do not receive imports from Ireland.


Meanwhile the BBC is reporting that almost 1,400 pork processing workers in the Republic of Ireland have been laid off following the contamination scare.

Tuesday, December 9, 2008

Countries ban Irish pork in toxin scare

gence France-Presse
First Posted 06:25:00 12/09/2008

PARIS -- Authorities across Europe and Asia rushed to pull Irish pork from store shelves or ban imports Monday as the European Commission said a score of countries could be affected by a dioxin scare.

Ireland on Saturday said it was recalling all pork products made in the country after the discovery of dioxins, which may cause cancer, in slaughtered pigs.

The chemicals were thought to have contaminated feed.

Ireland is a major exporter of pork, with Britain by far the biggest market, followed by Germany, France, Russia and Japan, according to official figures.

But several countries said their imports were small and they did not expect problems, but were taking action to reassure consumers.

"We are currently suspending imports as a precaution," said Mitsue Kondo, a food safety official at Japan's health ministry.

Japanese authorities are also checking with Irish officials about the contaminated meat and may recall Irish pork products, she added.

"Along with the ban on imports, retailers were told to stop the sale of Irish pork products," a South Korean agriculture ministry spokesman told AFP.

China's General Administration of Quality Inspection and Quarantine said, "In accordance with a China-Ireland bilateral agreement, we have provisionally stopped the direct and indirect import of Irish pork products and livestock feed."

"Secondly we have recalled and returned Irish pork products that were produced after September 1," it added in a notice on its website.

Singapore's government said it had suspended the import and sale of all pork and related products from Ireland.

Importers and retailers have been instructed to recall the products from the market with immediate effect, the Agri-Food and Veterinary Authority said in a statement on its website.

The Straits Times newspaper said Singapore imported about 516 tonnes (567.6 tons) of pork products from Ireland in the last three months.

In Europe, Bulgarian veterinary inspectors banned the sale of 60 tonnes of pork imported from Ireland earlier this month.

The ministry of farming and food said that the shipments of Irish meat were found in storehouses in the capital Sofia and the central city of Plovdiv.

It added that veterinary inspectors will check a further 112 cold stores across the country, conduct lab analyses and destroy any meat or meat products if found to contain dioxins.

In Berlin, the government said Germany had only imported minimal amounts of Irish pork and sees no public health threat, although it ordered all Irish pork pulled from the shelves Sunday.

Germany has imported only 2,000 tonnes of pork from Ireland since September 1, the period specified by Dublin in its warning, the agriculture and consumer affairs ministry said.

The head of Poland's veterinary services, Krzysztof Jazdzewski, said his department was checking 667 tonnes of Irish pork imported by three companies.

Russia also announced it was suspending imports of Irish pork products as well as the sale of such products until Moscow can determine how many tonnes of Irish pork have reached Russia and during what period, Russian news agencies reported.

European Agriculture Commissioner Androulla Vassiliou said earlier that the EU's 27 member states should remove pork products from Ireland from sale and carry out tests.

She said in Brussels that potentially contaminated meat may have been sent to Belgium, Britain, Cyprus, Denmark, Estonia, France, Germany, Italy, the Netherlands, Poland, Portugal and Sweden within the EU.

Tainted meat may also have been sent to non-EU members Canada, China, Hong Kong, Japan, Russia, Singapore, South Korea, Switzerland and the United States.

In France, Agriculture Minister Michel Barnier played down the threat in an interview published Monday, while adding that traders had been ordered to check the provenance of their products and withdraw relevant Irish pork.

"It is not a major alert for France," he told the daily Le Parisien.

"Ninety-five percent of fresh pork consumed in France is produced in this country."

US poultry processor posts loss for 4th quarter

US poultry processor Sanderson Farms reported a loss for its 4th quarter and fiscal year ending 31 October, reportedly due to challenging market conditions and a decline in demand for chicken products.

Sanderson reported a net loss of $51.9 mln for the 4th quarter of 2008. This compares with a net income of $24.1 mln for the same period in 2007. The poultry processor also reported a net loss for fiscal year 2008 of $43.1 mln, compared to a net income of $78.8 mln for 2007.

Sales

Net sales for the 4th quarter rose to $460.2 mln from $426.9 mln in the 4th quarter of 2007. Net sales for fiscal 2008 were up 17% at $1.724 bln.

"Sales increased over the same quarter last year reflecting the company's production growth, and our annual sales were a record high for Sanderson Farms," said chairman and CEO of the company Joe F. Sanderson, Jr. "However, like others in our industry, our business was affected by a decline in demand for chicken products from foodservice and casual dining customers."

Feed costs

The chicken processor stated that it paid $235 mln more for feed grain in 2008, but expects to pay $142.5 mln less for feed in 2009. This is based on recent drops in feed prices.

The poultry company said it will save 5.5 - 6 cents per chicken in costs, but added that even with those savings chicken prices need to rise.

Exports

Sanderson said it exported more poultry this year, including an 8% increase in exports to Russia, a 15.2% increase to China and a 20% increase to Mexico.

Chicken sales increase over 2008

Chicken sales increased 6.7% in 2008, according to "The Fresh Meat Market in the U.S.: Beef, Chicken, Pork, Turkey and Lamb in Retail and Foodservice", from Packaged Facts.

Chicken increased 6.3% at retail level in 2008. "The healthfulness of white meat has been hardwired into the American consumer psyche, and now natural and organic claims give chicken a leg up among consumers looking for prime cuts," said Packaged Facts publisher Tatjana Meerman.

"Natural" label on meat

Of retail meat, 31% was labelled "natural" in 2008, up 7% from 2007. Meerman stated that natural and organic claims – including free-range or cage-free chicken, grass-fed beef, humanely raised veal, and crate-free pork – are being met favourably by consumers, who are increasingly concerned about food quality, food contamination and the environmental and ethical implications of their food choices.

It is estimated that 50% of retail meat was supplier-branded in 2008, up 4% from 2007. It is believed that branding helps establish confidence in consumers. "Branding will become super-important going forward," said Meerman, adding that consumers are more concerned about food safety so generic meat in the refrigerator case will no longer be as compelling as branded meat from a trusted manufacturer."

Thursday, December 4, 2008

Russia suspends imports from six U.S. pork plants

Russia has suspended imports of pork products from six U.S. pork facilities, claiming the products did not meet Russian requirements, USDA's Food Safety and Inspection Service said.

Effective Dec. 15, the following facilities will not be authorized to ship pork to Russia:
Sioux Preme Pork Products, Sioux City, Iowa
Smithfield Packing Co., Smithfield, Va.
Chicago Meat Authority, Chicago, Ill.
Farmington Foods, Forest Park, Ill.
Amity Packing Co., Chicago, Ill.
Abilene TX Foods, Jeffersontown, Ky.

Russian authorities have not explained their rationale for taking this latest action.

"They stated in a letter that the plants did not meet Russian requirements, but did not provide additional details," FSIS spokeswoman Amanda Eamich told Meatingplace.com.

Pilgrim's Pride files for bankruptcy

One of the leading poultry producers in the US, Pilgrim's Pride, has filed for Chapter 11 voluntary Chapter 11 bankruptcy protection.

Company president and CEO Clint Rivers stated that over the past year, Pilgrim’s Pride has faced a number of significant challenges, including high feed-ingredient costs, an oversupply of chicken, weak market pricing and softening demand.

"After careful consideration of all available alternatives, the company’s board of directors determined that a Chapter 11 filing was a necessary and prudent step and the best way to obtain the financing necessary to maintain regular operations and allow for successful restructuring. We expect to emerge from this restructuring a stronger, more competitive company that is well positioned for growth and enhanced profitability."

The processor is also seeking approval to receive debtor-in-possession financing amounting to $450 mln in order to continue the daily operations of its business, including the payment of wages.

The company said operations are expected to continue as normal during the bankruptcy process, and operations in Mexico and certain operations in the United States were not included in the filing.

Over the past 3 months, Pilgrim's Pride has worked out 3 separate deals with its lenders to extend its credit lines and avoid filing for bankruptcy.

Tuesday, November 18, 2008

December 1, 26 and 29 are nonworking holidays in the Philippines

from ABS-CBN
link: http://www.abs-cbnnews.com/nation/11/18/08/december-1-26-and-29-are-nonworking-holidays

December 1, 26 and 29 have been declared nonworking holidays by Malacañang in compliance with Republic Act (RA) 9492, which rationalizes the celebration of national holidays.

RA 9492, dated July 24, 2007, provides that with the exception of religious holidays, all other holidays are moved to the nearest Monday unless otherwise modified by law, order or proclamation.

Since Bonifacio Day, celebrated on November 30, falls this year on a Sunday, the special day will be observed on the nearest Monday, or December 1.

Additional special nonworking days to be observed this year are on the day after Christmas, December 26, since it is between Thursday and Saturday; and December 29, 2008, a Monday.

Other holidays in December are:
December 25 – Christmas Day
December 30 – Rizal Day
December 31

Tuesday, October 21, 2008

New avian virus identified in Thailand


Avian Adenovirus Group 1 has been detected in breeder chicks aged 3-7 days, causing inclusion body hepatitis in poultry.

The virus, which reportedly cannot be transmitted to humans, has been found in chicken farms in Thailand’s central, western and eastern regions, by a team of Kasetsart University’s veterinary diagnostic unit.
Besides young chickens, the virus, which broke out at 6 chicken farms in the 3 regions earlier this year, has now been contained, says Kasetsary University team leader Taweesak Songserm. He added that it can also be found in pigeons, geese, turkeys and partridges.

The disease, he says, takes 3-7 days to incubate with the symptoms – drowsiness and exhaustion – lasting about 1 week, becoming apparent in 3 weeks.

Besides transmission from mother to baby chick via the egg, the disease can be transmitted between chickens via virus-contaminated food, drink and equipment.

Thursday, October 16, 2008

Philippines lifts ban on Ark. poultry, institutes Idaho ban

The Philippines' Department of Agriculture announced that it is lifting its ban on all poultry and poultry products from the state of Arkansas, while simultaneously banning the same products from Idaho.

Arthur Yap, secretary of the Department of Agriculture, said that the import ban was lifted from Arkansas after the World Organization for Animal Health certified the state as free from bird flu. The ban was originally put in place after a bird flu virus was detected in Washington County last June.

The department placed a temporary ban of imports of domestic and wild birds from Idaho, however, after an occurrence of low-pathogenic avian influenza was found there in game birds that are bred for hunting.

Tuesday, October 14, 2008

Philippines: Pig Farmers Form New Group for Exports

PHILIPPINES - Producers in Mindanao are coming together to develop the country's export business, initially to Singapore.

Emilio V. Escobillo Jr., president of the South Cotabato Swine Producers Association, told Sun Star that at least five swine farms in Mindanao have been accredited so far by the government to ship fresh frozen cut pork parts abroad.

"We are seriously looking at the establishment of an umbrella group to sustain the trading of pork meat outside the country," he said.

Efforts to confirm if the country has started exporting pork to Singapore yielded ambiguous responses from local industry leaders and government agencies involved.

Cathy M. Romero, sales and marketing manager of Matutum Meat Packing Corp., said in a separate interview that the country's pioneer pork export "has taken off ground recently."

Matutum Meat is the only pork processing company in the country accredited by the Agri-Food and Veterinary Authority of Singapore to export the product in the island-state.

"But the pork shipment hasn't arrived there yet," Mr Romero said, declining to give further details.

Matutum Meat, a sister firm of Cebu-based Sunpride Foods Inc. which produces Holiday and Sunpride canned goods, has invested around 200 million pesos (PHP) for its state-of-the-art slaughtering facility in neighboring Polomolok town in South Cotabato.

Mr Escobillo did neither confirmed nor denied that a shipment has already taken place.

Raquel T. Cortez Jr., Philippine Ports Authority statistician at the Makar wharf in General Santos City, said there is no record of pork shipment bound for Singapore although Matutum Meat has been shipping to Manila frozen cut pork parts.

Cleofe P. Virtodazo, an official of the National Animal Quarantine stationed at the Makar wharf, said that samples of pork products processed by Matutum Meat have been sent to Singapore for laboratory testing last month.

Mr Escobillo cited the need to consolidate the ranks of accredited swine farms owing to heavy cost of production and shipment, noting that a refrigerated container van carrying 600 to 700 heads would amount to some PHP4-5 million.

At low-end estimates, at least PHP50 million will be needed to sustain the export of cut pork products to Singapore, he added.

Although he did not name the accredited swine farms, Mr Escobillo said three are found in South Cotabato and one each in the cities of Davao and General Santos.

These farms were accredited after passing the traceability and antibiotic residue tests, he said.

Mr Escobillo noted that penetrating a foreign market would help stabilize the farmgate prize of live pigs, which is being dictated by traders in Manila.

"With a foreign market, this will not only benefit the large swine farms but also the backyard growers," he explained to Sun Star.

Philippines: Drop in Retail Pork Prices Reported

MANILA - Agricultural Secretary Arthur Yap, on Wednesday, reported that retail prices of choice pork items like liempo, pigue and kasim have started to go down in Metro Manila markets from last week’s rates of as high as P160-P170/kg.

Yap reported the price backs following last Monday’s agreement by major hog industry players and Department of Agriculture (DA) officials to adopt a “reference price" band of P140 to P150 for these prime cuts.

In a press statement, Yap said he visited the Mega Q-Mart in Quezon City Wednesday morning and found that choice pork cuts were selling for an average P140 to P145 a kilogram, with some stalls selling for as low as P135.

Aside from this Mega Q-Mart where the lowest retail price was monitored, Yap also instructed DA Assistant Secretary, Salvador Salacup, and Bureau of Animal Industry (BAI) Director, Davinio Catbagan, to monitor more markets so as to check on whether the agreement reached with industry players ranging from producers and meat processors to wholesalers and retailers on a “reference price" during the DA-hosted dialogue had started “to bear fruit."

GMANews.TV reports that Yap expressed optimism that the price drop will boost consumer demand, thereby benefiting not only consumers in the form of cheaper pork items but the producers and traders as well, in the form of higher sales and more profits.

“As agreed upon during the October 6th dialogue at the DA central office, agriculture officials and the hog industry players would be meeting on a regular basis to review the ‘reference price’ accord and to take up other concerns that are meant to ensure the steady supply at reasonable prices of prime pork cuts, especially during the Christmas season," he said.

Monday, October 13, 2008

Ban on poultry from Denmark, Czech Republic, Arkansas lifted

THE AGRICULTURE department has lifted its ban on imports of poultry and poultry products from the Czech Republic, Denmark and from the US state of Arkansas, an official statement yesterday read.

The import ban on domestic and wild birds, along with poultry and its products like meat, day-old chicks, eggs and semen, was lifted after the World Organization for Animal Health (known by its French acronym, OIE) certified the areas free from bird flu.

Agriculture Secretary Arthur C. Yap said the evaluation done by the Bureau of Animal Industry showed that the risk of contamination from importing poultry products from the said areas were "negligible."

The department had imposed the import ban last May and June.

The Terrestrial Animal Health Code of the OIE sets a three-month period before a country can regain its bird flu-free status after conducting a stamping-out campaign to eradicate birds infected with the virus.

But the Agriculture department slapped a ban on poultry imports from the US state of Idaho after a bird flu strain was detected in game birds bred for hunting, the statement said.

Countries still banned from exporting poultry and poultry products to the Philippines are Haiti and United Kingdom.

Friday, October 10, 2008

Maple Leaf defends protocols after more listeria found at plant involved in outbreak

Maple Leaf Foods announced there have been four positive findings for listeria in two products produced on a single line at the Bartor Road plant in Toronto, the same plant linked to the listeriosis outbreak that has killed 20 people since August.

The four positives were the result of more than 5,000 product tests completed at the facility during the past several weeks.

Despite the new discovery of listeria monocytogenes in product processed at the Bartor Road facility, President and CEO Michael McCain on Thursday defended the company's protocols for coping with such food safety risks.

After closing Aug. 20, the plant reopened Sept. 17 under intense supervision from the Canadian Food Inspection Agency and with strict operation protocols in place. However, due to what McCain described as mechanical and electrical challenges and intensive testing procedures, the facility has only been operating at about 30 percent of capacity since reopening, and no product has been released to customers.

"We understood this plant was going to be a fishbowl," McCain said. "Our first priority is making sure we're cautious." He said he could not provide an estimate regarding when product from Bartor Road might be in the marketplace again, but noted there is ongoing dialogue between Maple Leaf and CFIA about the situation.

McCain emphasized that finding listeria at the plant was not unexpected, and cited statistics from the Canadian Food Directorate that up to 10 percent of ready-to-eat food contains some listeria and is benign to the vast majority of consumers. "We will never eliminate listeria," he said. "That is an impossible expectation. We will work to reduce the risk to the lowest reasonable level possible, but we cannot eliminate the risk."

Nicaraguan beef prompts three E. coli-related recalls

Beef imported from Nicaragua is involved in three separate recalls of frozen beef trim that may be contaminated with E. coli O157:H7, USDA's Food Safety and Inspection Service announced.

The recalls affect approximately 20,460 pounds of frozen beef trim from A.C.S. Meyners Ltda. in Ponte Verde, Fla.; approximately 4,200 pounds of frozen beef trim from Astro Meats & Seafood Inc. in Miami; and approximately 2,340 pounds of frozen beef trim from Colorado Food Products in Greenwood Village, Colo.

Subject to recall are 60-pound bulk boxes of "BM-95 BONELESS BEEF." Each shipping container bears the establishment number "Nicaragua 4" inside the Nicaraguan mark of inspection. The shipping label bears the item number "00003," and pack date of "8-19-08."

The products were produced on Aug. 19, 2008, exported to the United States and then sent to distributors and establishments in California, Indiana, Wisconsin, New York and Pennsylvania. The products were sent to establishments for further processing and will likely not bear the establishment number "Nicaragua 4" on products available for direct consumer purchase.

The problem was discovered through FSIS microbiological sampling of imported product from a foreign establishment that was then sent to multiple importers of record in the United States. The agency has received no reports of illnesses associated with consumption of this product.

H5N1 suspected in South Korea and Thailand

Possible bird flu outbreaks recently announced by South Korea and Thailand have wider and more worrisome implications for other countries.

Poultry International
Release Date: October 6, 2008

Web exclusive by Dr. Terry Mabbett — Asia has been relatively quiet on the H5N1 front, but new suspected outbreaks in South Korea and Thailand in the last seven days will, if confirmed, have deeper, wider, and more worrying implications. Not least of which is that the two countries concerned are among the most diligent, ruthless, and successful in stamping out the disease.

Domestic ducks suspected in South Korea
According to Reuters, the South Korean news agencies reported a suspected bird flu outbreak at a duck farm in Yesan city in the central region of the county south of Seoul on Oct. 4, 2008. This would be the first instance of H5N1 since the outbreak earlier this year (April 1, 2008, infecting 31 farms in the following six weeks) and the worst to date. The announcement comes just several weeks after South Korea was officially pronounced free of H5N1 HPAI (highly pathogenic avian influenza) on Aug. 15, 2008.

Samples taken from the ducks are undergoing confirmatory tests by the National Veterinary Research Quarantine Service with final results due soon, said Yonhap News, citing Seoul's agriculture ministry. Initial tests at the farm, which is home to 5,000 ducks, had given positive readings for the virus. The government plans to slaughter all birds on the farm as a pre-emptive measure. During May 2008, the South Korean authorities culled all domestic fowl in Seoul in a bid to contain the virus within the city and its surrounds.
Duck farm worker dies from bird-flu like symptoms

At the end of Sept. 2008, the Bangkok Post reported how a worker on a free-range duck farm in Pho Prathap, Chang district of Phichit province in Thailand, had died from bird-flu like symptoms the previous day (Sept. 29, 2008). Forty-eight-year-old Manee Mankhetkit had been taken to the provincial hospital after he developed a high fever with cough, sore throat, chest pains, and breathing difficulties. Doctors treated the patient in an isolated intensive care ward after being told he had been in contact with poultry.
Manee was a hired hand at a duck farm with over 1,600 birds. He died, said the hospital, due to kidney and heart failure. His 12-year-old son, Sakda, who worked alongside his father, was taken to Phichit hospital and placed in an isolation ward for observation with no visitors. Public health permanent-secretary Prat Boonyawongwirot told Bangkok Post that lab tests were being performed on samples collected from the dead man's body to see whether he was infected with the deadly H5N1 virus as believed. However, Dr. Prat said leptospirosis could not be ruled out because the area was affected by floods.

Meanwhile, livestock officials had collected samples from the free-range ducks to test for H5N1 HPAI. There had been reports of poultry, and especially free-range ducks, dying en masse in the district during the previous 7 days. H5N1 HPAI had never occurred in this particular district of Phichit, although the province itself was listed as an avian influenza [H5N1 HPAI] epidemic zone. Kamnuan Ungchusak, director of the epidemiology bureau, said a team of epidemiologists had been dispatched to the district to carry out bird flu surveillance and that disinfectant would be sprayed at all poultry farms, slaughterhouses, and at-risk areas. According to the Bangkok Post, Thailand had experienced its fifth wave of bird flu outbreaks in early Feb. 2008 when the disease re-emerged in Nakhon Sawan and Phichit. The very first outbreak, it said, had struck Thailand in Jan. 2004 when more than 60 million birds were culled. Since then, there have been 25 human cases (17 fatal), although the last was in 2006.

Migratory wild water fowl on the move

These suspected outbreaks in South Korea and Thailand are yet to be confirmed one way or the other. If they do turn out to be H5N1 HPAI, there are all sorts of implications, and not just for the two countries concerned. First and foremost, South Korea and Thailand are among the most diligent of Asian countries when it comes to dealing with H5N1 HPAI. South Korea and Thailand reported episodes of H5N1 HPAI earlier this year in the same areas as these latest suspected outbreaks, and as before, they dealt with it ruthlessly. These new suspected outbreaks both involve ducks, and given their ability to carry the virus without showing symptomatic disease, then residual infection from earlier outbreaks cannot be ruled out.

Pertinent to the suspected South Korea outbreak is that migratory wild birds are on the move right now from northern Asia to warmer southern climes. The virus responsible for the South Korean outbreak in April 2008 was genetically the same as the one identified simultaneously in wild whooper swans in Japan. Recombionics have just said that although the latest report from South Korea lacks detail it is likely that the initial positive readings will be confirmed, and as Fujian H5N1 related to the H5N1 identified in the region in spring 2008. 



The outbreak, they say, is in the same area which largely targeted domestic waterfowl. Then the H5N1 was identified as a reassortant, with a clade 2.3.2 HA (haemagluttinin) and clade 2.3.4 for the other seven gene segments. It was the largest H5N1 outbreak in South Korea reported to date and they claim it included a soldier/culler who was H5 PCR positive, but the H5N1 was denied by South Korea. Closely related gene sequences were reported for whooper swans in multiple locations in northern Japan, as well as domestic poultry in Primorie, in south eastern Russia.

Recombionics says the spring 2008 outbreak signaled the movement of H5N1 to the north via wild bird infections, and although H5N1 was not reported in north eastern Siberia or Alaska, excessive poultry deaths were reported in Kamchatka, a 1250km-long peninsula in Russia’s Far East. Birds that migrated north in the spring, would be returning to the region South Korea) at this time, so an outbreak in waterfowl in South Korea at this time of the year would not be unexpected, they say. With similarly timed outbreaks reported in this area in 2003, 2006, and 2007, the current outbreak was expected, they say.

Thai/Laotian border risks

For Thailand, ingress of the virus from neighboring countries, where some experts believe the virus is entrenched in backyard flocks, cannot be ruled out. Phichit is relatively close the border area of Thailand and Laos which has been the scene (both sides of the border) of previous outbreaks. Laotian authorities have previously suggested that outbreaks suffered by them came from neighboring Thailand. However, on balance, and given the wide disparity in veterinary infrastructure and general development status between the two countries, it is more likely to be the other way round. Confirmation would be a particularly big blow for Thailand which, according to the World Health Organization (WHO), recorded its last human case of H5N1 in 2006.

Wider implications

If these two outbreaks are confirmed as H5N1 HPAI, and especially if due to residual infection, then implications in the wider world context are serious and disturbing. If countries like South Korea and Thailand cannot completely eradicate the disease there must be many more which claim to be bird flu free but which clearly are not. There are some Asian countries and a whole string in Africa where outbreaks are announced periodically then mysteriously disappear from the radar screen after little or no action, mainly because they do not have the resources and veterinary infrastructure to fight a fast moving versatile virus like H5N1 HPAI.

Thursday, October 9, 2008

Climate Change May Change Cows for Kangaroos

AUSTRALIA - The Australian Government's top climate change advisor has said that kangaroos would be a viable alternative to sheep and cattle as producers find themselves unable to cope with the carbon costs of an emissions trading scheme.

Prof Ross Garnaut has also predicted a shift in meat consumption and production towards other "low emitting" products such as chicken, pork and fish.

In his final climate change report, Prof Garnaut said the carbon costs of an emissions trading scheme would hit sheep and cattle hard because of the substantial methane gases they emit, reports the Weekly Times Now.

There were also few opportunities to reduce these emissions cost-effectively, the report said.

"By contrast, kangaroos emitted negligible amounts of methane, which could be the source of international comparative advantage for Australia in livestock production," it said.

"For most of Australia's human history...kangaroo was the main source of meat. It could again become important.''

According to the Weekly Times Now, the report referred to recent research that showed kangaroo numbers could increase from 34 million to 240 million by 2020, potentially replacing an expected drop in sheep and cattle numbers (by 36 million and 7 million respectively).

The meat from just 175 million kangaroos could replace lost lamb and beef production and become a more profitable activity once carbon prices exceeded $40 a tonne, it said. There would also be a net reduction in greenhouse gas emissions by about 16 million tonnes of carbon dioxide equivalents a year.

Christmas Rise in Philippine Meat Demand Expected

PHILIPPINES - The Department of Agriculture (DA) is expecting a higher demand for pork, beef and poultry products.

SunStar reports that DA - Western Visayas Director, Larry Nacionales, said consumers not only in Iloilo City but also in Luzon are expected to need more livestock products, which in effect will help the meat industry in the city.

Luzon generally gets supply of meat and poultry products from the region.

Western Visayas is one of the major suppliers of pork and other livestock products in the country. The DA said that with this development, the producers here will get a boost in their business.

Meanwhile, Mr Nacionales said the DA, headed by Secretary Arthur Yap, presently has a project on mitigating the supply of pork and livestock. The project is aimed at restocking pigs for the demands in the Christmas season and the first quarter of next year.

According to Mr Nacionales, it is important that a mitigating measure be made to ensure the abundance of pork supply in the coming days.

Wednesday, October 8, 2008

Philippine Pork price to be cut to P140-P150/kg

By Amy R. Remo
Philippine Daily Inquirer
First Posted 06:02:00 10/08/2008
http://business.inquirer.net/money/breakingnews/view/20081008-165218/Pork-price-to-be-cut-to-P140-P150kg

MANILA, Philippines--The hog industry has agreed to slash the prices of pork, particularly of prime cuts, to within a “reference price band” of P140-P150 a kilogram, Agriculture Secretary Arthur Yap said.

Yap said major producers, meat processors, wholesalers and retailers agreed at a meeting with him on the “reference price band” after reaching a consensus on reasonable profit margins.

He said they noted that while the farm gate prices of pork had gone down to a low of P82.25 a kilo, the average retail price of pork still hovered at around P140 a kilo for several reasons, including high trading margins.

The price of pork belly and other prime cuts have reached a high of P170-P180 a kilo in Metro Manila markets, they said.

Yap said, “Our purpose was to find a common ground among all industry players in order to come up with a fair reference price that will be beneficial for producers and traders, on one hand, and consumers, on the other.”

“Pulling down the retail cost of pork items will benefit not only consumers but producers and traders as well because lower market prices will boost consumer demand,” he said.

Hog farmers earlier called on the government to adopt the “suggested retail price,” or SRP, practice of manufacturing companies to ensure that consumers would get the right prices for pork products.

Albert Lim Jr., president of the National Federation of Hog Farmers Inc., said the SRP practice would let the Department of Agriculture post the right prices of pork products outside wet markets “so consumers are aware and can themselves call the attention of the retailers.”

“We have no control over the traders and the retailers, but as consumers we can tell retailers that they should be selling their products at the right price,” Lim said.

Meanwhile, Agriculture Assistant Secretary Salvador Salacup said plans were underway to link backyard hog growers with meat traders, such as members of the Philippine Association of Meat Processor Inc. and the Meat Importers and Trader Association, to help reduce their production costs.

Tuesday, October 7, 2008

Philippine Farmers Propose Solution to Low Prices

PHILIPPINES - Pig farmers are expressing concern over the continuing fall in farm-gate prices at a time of rising costs and a drop in consumer demand. They have put forward the idea of a standard 'Suggested Retail Price'.

"The current situation is unprecedented, and has significantly affected the whole hog industry," said Albert Lim Jr., president of the National Federation of Hog Farmers Inc. (NFHFI) told SunStar.

Mr Lim pointed to the low consumer demand and the increase in pork importation by meat traders as the primary causes of the industry's problems - on top of its sufferings due to higher production costs.

He explained that while farm gate prices have gone down significantly, this is not reflected in the pricing at the markets, which also affects the consumers' buying habits.

Farm gate prices currently averages at a high of 82 pesos (PHP) per kilo and a low of PHP78 per kilo. Prior to the Holy Week, the average price was between PHP115-117 per kilo.

However, Mr Lim pointed out that pork is still selling in the wet markets at an average of between PHP170-180 per kilo, turning off many consumers who are already suffering from the hike in the prices of basic commodities.

While it is traditional for farm gate prices to go down after the Holy Week, it has not stopped going down.

"It did go down, slowly in the beginning, but we did not expect it to continue until now," Mr Lim said.

In a meeting with Agriculture Secretary Arthur Yap, the members of the NFHFI's council of presidents suggested that the Department of Agriculture (DA) come out with an information campaign to inform consumers of the 'right' price for pork products.

Mr Lim said their suggestion is similar to the 'suggested retail price' (SRP) practice of manufacturing companies. The DA can post SRP of pork products outside the wet markets so consumers are aware of the prices of pork and can themselves call the attention of the retailers.

"We have no control over the traders and the retailers but as consumers, we can tell retailers that they should be selling their products at the right price," he said. "This way, everyone comes out a winner - consumers get lower prices and will buy more pork and producers can sell more hogs."

Domino Effect

Mr Lim said if the current trend of low farm gate prices is not addressed, it will have a domino effect in the pork production all over the country.

"For a time, we thought that the situation affects only Luzon, but it has already started to affect hog producers from Visayas and Mindanao."

Since farm gate prices in Luzon have dipped significantly low, traders and meat processors have started to stop exporting pork products from Mindanao, specifically from General Santos City.

Although hogs and pork products from Mindanao saved the day for the tight pork supply in Luzon when it was hit by hog diseases, GenSan is now expected to take a hit since it adds freight fees to the cost of its pork supply.

"Before, we knew that pork prices fluctuate but this is the first time that we've been hit by very, very low prices," Mr Lim explained.

He added, "This situation is a double whammy for hog producers, especially those who were hit by the swine diseases last year. Now that they have recovered from the effects of the disease, they cannot sell their hogs because of the low farm gate prices and demand."

Production Cost Rises

Many hog producers are contemplating on shutting down their businesses due to the high cost of production vis-à-vis the low farm gate prices.

The NFHFI president said many hog raisers are complaining and very worried over the 'very low price'. They said they barely make ends meet due to the increasing cost of production.

The cost of production is currently at an average of PHP90-95 per kilo, compared to the low end of farm gate price pegged at PHP78 per kilo.

"How will hog farmers continue in this kind of situation?" asked Mr Lim.

"Although some commercial producers can continue doing business, take note that about 77% per cent of swine producers are backyard farmers."

He added that the DA's latest report noted a significant decrease in hog production for the first six months.

"Instead of going down, it should go up especially with the expected demand during the Christmas season," Mr Lim said.

MMPC to Export Pork to Singapore

PHILIPPINES - Frozen boxed pork or 'Pork in a Box' from Matutum Meat Packaging Corporation (MMPC) will soon be exported to Singapore after its Agri-Food and Veterinary Authority gave the 'go ahead' for South Cotabato's meat-packing company to start exporting pork to Singapore.

Dr Emilio Escobillo, Jr., President of the South Cotabato Swine Producers Association disclosed that SOCOSPA is targeting to capture about 25 per cent of Singapore's demand for pork meat products. However, he added that they will see to it that this will not affect the domestic market.

According to Dr Escobillo, swine producers here in Socksargen used to have live shipment to Manila of about 24,000 hogs per month but now the shipment has reduced to about 10,000 hogs per month.

Meanwhile, Cathy Romero of MMPC pointed out in a forum that MMPC started its operation in Glamang in 2007. Its produce include Warm/Chilled/Frozen Carcass for the domestic market and the Frozen Boxed Pork intended for export and also for domestic market.

She said that the mother company of MMPC is Sunpride, and its main office is located in Cebu City.

Ms Romero also explained that the reasons for expanding here: Mindanao is FMD-free; South Cotabato is one of the largest supplier of hogs and GenSan is an international sea port.

Phils.: Demand Expected to Rise During Holiday Season

THE PHILIPPINES - Commercial hog farmers are keen on selling pork at higher prices next month because of an expected higher demand this coming holiday season, according to an official of the industry group.

"We expect the [farmgate] price [of pork] to increase reasonably by the first week of November," Renato R. Eleria, vice-chairman of the National Federation of Hog Farmers, Inc., said in a phone interview.

Farm prices of pork might go up to P85 per kilogram in October and P90 per kilo in November from the current price of P82 to P84 per kilo, he added.

The demand for processed meat products double in the holiday season, reports BusinessWorld.

Likewise, Mr. Eleria assured that commercial hog raisers can sufficiently supply the rising pork demand. Commercial farming accounts for 30% of the hog industry.

Bureau of Animal Industry Director Davinio P. Catbagan said that to date, there are 50,000 overweight hogs that were not sold by raisers due to low farmgate prices.

The hogs now weigh from 100 to 130 kilos well over the national average selling weight of 70 kilos, Mr. Catbagan said.

Meanwhile, hog farmers are also keen on selling pork cuts to meat importers.

"Pork imports between January to August may have already been exhausted and importers might not be able to import because of the high exchange rate," Mr. Eleria said in vernacular.

As of mid-September, the 83,454 metric tons have already eclipsed the 79,381 MT full-year imports in 2007, a data from the BAI show.

The surge in imports resulted from favorable conditions like a strong peso and Canada’s lowering of pork prices, Mr. Eleria said.

In a statement last week, Philippine Meat Processors Association, Inc. said imports of premium cuts surged to 23.761 MT in January to August this year from 4.963 MT during the same period last year.

However, BAI Director Davinio P. Catbagan said, "[meat importers] cannot buy what they need domestically."

Modern infrastructures like slaughterhouses and cold storage facilities should be built for domestic hog raisers to be able to supply importers’ needs, Mr. Catbagan said in an interview.

"If they (local hog raisers) can present the products [we need], we are willing to buy from them," Jesus C. Cham, president of the Meat Importers and Traders Association, Inc., said in a phone interview.

"Very few of us are able to buy the [live] hogs, we are asking them to sell us pork cuts," he added.

Phils.: Producers May Be Forced to Shut Piggeries

PHILIPPINES - Hog producers continue to be shackled by low farm gate prices and insist that the market distortion is most likely to force many of them to shut their piggeries down as production costs zoom.

"The current situation is unprecedented, and has significantly affected the whole hog industry," said Albert Lim Jr., president of the National Federation of Hog Farmers, Inc.

Lim decried the low demand and the increase in pork importation by meat traders, adding that these are the primary causes of the industry's problems.

He said that while farm gate prices have gone down significantly, it is not reflected in the pricing at the markets, which also affects the consumers' buying power.

Farm gate prices currently averages at a high of P82 per kilogram and a low of P78 per kilogram. Before the Holy Week, the average price was between P115 to P117 per kilogram.

Lim pointed out that pork is still selling in the wet markets at an average of between P150 to P175 per kilogram, "turning off many consumers who are already suffering from the hike in the prices of basic commodities."

While it is traditional for farm gate prices to go down after the Holy Week, it has not stopped going down. "It did go down, slowly in the beginning, but we did not expect it to continue until now," Lim said.

In a meeting with Agriculture Secretary Arthur Yap, GMANews.TV reports that members of the NFHFI's Council of Presidents suggested that the Department of Agriculture come out with an information campaign to inform consumers of the right pricing for pork products.

Lim said their suggestion is similar to the suggested retail price practice of manufacturing companies.

The Agriculture department can post the SRP of pork products outside the wet markets so consumers are aware of the prices of pork and can themselves call the attention of the retailers.

"We have no control over the traders and the retailers, but as consumers, we can tell retailers that they should be selling their products at the right price," he said. "This way, everyone comes out a winner as consumers get lower prices and will buy more pork and producers can sell more hogs."

Lim said if the current trend of low farm gate prices is not addressed, it will have a domino effect in the pork production all over the country.

Although hogs and pork products from Mindanao saved the day for the tight pork supply in Luzon when it was hit by hog diseases, Gen. Santos City is now expected to take a hit since it adds freight cost to the cost of its pork supply.

"Before, we knew that pork prices fluctuate, but this is the first time that we've been hit by very, very low farm/live prices," Lim said.

He added: "This situation is a double whammy for hog producers, especially those who were hit by the swine diseases last year. Now that they have recovered from the effects of the disease, they cannot sell their hogs because of the low farm gate prices and low demand."

Many hog producers are contemplating on shutting down their businesses due to the high cost of production vis-a -vis the low farm gate prices.

The NFHFI president said many hog raisers are complaining and very worried because of the very low price as they barely make ends meet due to the increasing cost of production.

"How will hog farmers continue in this kind of situation?" Lim asked. "Although some commercial producers can continue doing business, take note that about 77 percent of swine producers are backyard farmers."

He added that the Department of Agriculture's (DA) latest report noted a significant decrease in hog production for the first six months. "Instead of going down, it should go up especially with the expected demand during the Christmas season," Lim said.

Friday, October 3, 2008

Philippine pig farmers forced to shut piggeries

Hog producers in the Philippines are warning that low farm gate prices and market distortion has the potential to force many of them to shut down their piggeries.

Albert Lim Jr., president of the National Federation of Hog Farmers considers the low demand and the increase in pork importation by meat traders, as the primary causes of the industry's problems. "The current situation is unprecedented, and has significantly affected the whole hog industry," said Lim.

Farm gate prices
While farm gate prices have gone down significantly, it is not reflected in the pricing at the markets, which also affects the consumers' buying power. Farm gate prices currently average at a high of P82 per kilogram and a low of P78 per kilogram. Before the Holy Week, the average price was between P115 to P117 per kilogram.

Lim pointed out that pork is still selling in the wet markets at an average of between P150 to P175 per kilogram, "turning off many consumers who are already suffering from the hike in the prices of basic commodities."

While it is traditional for farm gate prices to go down after the Holy Week, it has not stopped going down. "It did go down, slowly in the beginning, but we did not expect it to continue until now," Lim said.

Information campaign
It has been reported that members of the NFHFI's Council of Presidents have suggested that the Department of Agriculture come out with an information campaign to inform consumers of the right pricing for pork products.

The Agriculture department can post the SRP of pork products outside the wet markets so consumers are aware of the prices of pork and can themselves call the attention of the retailers.

"We have no control over the traders and the retailers, but as consumers, we can tell retailers that they should be selling their products at the right price," he said. "This way, everyone comes out a winner as consumers get lower prices and will buy more pork and producers can sell more hogs."

Domino effect
Lim said if the current trend of low farm gate prices is not addressed, it will have a domino effect in the pork production all over the country.

He added: "This situation is a double whammy for hog producers, especially those who were hit by the swine diseases last year. Now that they have recovered from the effects of the disease, they cannot sell their hogs because of the low farm gate prices and low demand." The situation is prompting many hog farms to contemplate shutting down their businesses due to the high cost of production.

Tuesday, September 30, 2008

U.S. hog supply should start to tighten into 2009

By Janie Gabbett on 9/29/2008 of MeatingPlace.com

USDA's quarterly Hogs and Pigs report indicated U.S. hog producers continue to reduce their breeding herds — which could mean moderation in hog slaughter by December and into 2009 — but between now and then, slaughter could tax capacity, according to livestock analysts.

USDA reported Friday that sow farrowings were down 2 percent in the June-August period, representing "a reasonable yet not robust liquidation rate for the U.S. sow herd," according to livestock analysts Steve Meyer and Len Steiner in the CME Group's Daily Livestock Report. That, along with continued declines in Canadian market hog imports, should put December slaughter below last year's very large volumes.

They noted, however, that an increase in hogs weighing 120-179 lbs on Sept. 1 (at 106 percent of a year ago) means higher year-on-year slaughter will continue through late November, as those hogs go to market.

This large number could raise concerns that hog supplies could exceed U.S. slaughter capacity at some point this fall, warned Stephens Inc. in a note to investors.

Wachovia livestock analyst Jonathan Feeney saw USDA's report as positive for hog prices next year.

In a note to investors, he wrote that the numbers in the report "generally point to better hog fundamentals in 2009." Current hog and corn prices indicated producers are losing about $5.00 per hundredweight, but Feeney projected they could be earning about $5.00 per hundredweight by April, 2009.

Philippines: Imposition of Pork Price Ceiling Urged

THE PHILIPPINES - Hog farmers are pressing the government to impose a pork price ceiling in the wet market as the trader-manipulated price is devastating the industry and pork consumption is being further dampened.

National Federation of Hog Farmers Inc. (NFHFI) Albert Lim told reporters that the Department of Agriculture (DA) and the Department of Trade and Industry should cause the imposition of a pork price ceiling of P140 to P150 per kilo in the wet market.

This should put a cap on the price that has hovered around P170 to P180 in the market as manipulated by traders. This is even if price of pork at farm gate is now at a very low P85 per kilo or less.

Lim said farmers are also suffering from a huge inventory of oversized hogs weighing more than 100 kilos while what is normally acceptable in the market are those weighing 70 to 80 kilos. This is because of the big importation of pork meat from Canada.

"We have lots of oversized pork. This is the only time that that has happened to us," he said.

In a related concern, the Philippine Association of Meat Processors Inc. (PAMPI) is protesting DA’s suspension on the issuance of veterinary quarantine certificate (VQC) on PAMPI’s importation of meat products.

This is effectively a ban on the importation of ingredients being used by meat processors for producing canned corned beef or canned ham.

PAMPI asked DA Sec. Arthur C. Yap in a letter to "immediately lift the suspension of VQC processing for pork import applications for manufacturing-grade parts of pork in the soonest possible time so we can catch up on our inventory build-up of processed meats intended for the holiday season."

DA issued the suspension of release of VQC on pork importation last September 16th.

Bureau of Animal Industry (BAI) Director David Catbagan said BAI will be reviewing this directive.

PAMPI said in a statement that Rep. Nick Briones who is associated with livestock cooperative Limcoma has been pressing DA to issue such suspension.

"Briones blamed the presence of imported pork in the wet markets for a large inventory of 50,000 to 60,000 oversized hogs amid a lack of market demand," said PAMPI.

Moreover, PAMPI officials said DA has allowed a bulk of imported meat from Canada to be sold in the wet market even if it is the duty of DA to curb distribution of these meat in the wet market.

"Only meat processors should be allowed to import this meat, and this imported pork should not be sold in the market," said a PAMPI official.

PAMPI said its importation of manufacturing grade pork has not been unreasonably high compared to 2007 volume except for bellies "which has become scarce in local supply, forcing us to depend on imported sources to support the increased demand of bacons."

BAI data showed that pork imports reached 83,454 metric tons as of September 13th from 79,381 MT in the entire 2007.

ThePigSite News Desk

Meat Processors Protest Ban on Pork Imports

THE PHILIPPINES - The country’s largest group of meat processors has protested over a ban imposed by the Department of Agriculture (DA) on pork importation, warning that this could affect the supply of meat products in the coming holiday season.

In a statement on Friday, the Philippine Association of Meat Processors Inc. (PAMPI) said that it had sent a letter to Secretary Arthur Yap on September 23, requesting for the immediate lifting of the suspension of import applications for pork manufacturing-grade parts.

BusinessWorld reports that last September 16th, Mr. Yap instructed the the Bureau of Animal Industry (BAI) to suspend the issuance of (veterinary quarantine clearance) VCQ for pork import applications, amid pressures from Congressman Nicanor Brioners and an influential group of hog raisers.

Mr. Briones blamed the presence of imported pork in the wet markets for a large inventory of 50,000 to 60,000 oversized hogs, amid a lack of market demand.

"It is disappointing to note that the DA would unilaterally and immediately react to this allegation without a benefit of consultation on confrontation with importers and processors who are users of imported pork parts," PAMPI said.

The meat processors said the suspension of pork importation took effect without the conduct of a dialogue between PAMPI members and the hog raisers, or the DA and BAI, or among the three parties.

"It is fearful to think that the DA would actually decide to sacrifice the meat processing industry so that you could submit to the pressures that Congressman Briones and the hog raisers have applied upon your department," PAMPI said in their letter to Mr. Yap.

PAMPI claimed that the suspension of VCQ for pork importation has affected the delivery of manufacturing-grade parts needed by the meat processing industry, including pork bellies, fats, offals, and skin/rind.

Data from the BAI that show as of September 13th, pork imports reached 83,454 metric tons, compared to the 12-month importation of 79,381 MT in 2007.

PAMPI said that while the pork import volume this year appeared quite high, this cannot be traced to the importation of manufacturing-grade pork parts.

"Our importation of manufacturing grade pork parts are not unreasonably high compared to 2007 volumes, except for bellies which has become scarce in local supply, forcing us to depend on imported sources to support the increased demand of bacons," PAMPI said.

As of August 30, imports of pork bellies reached 6,503,480 kilos this year, against 3,343,918 kilos in August 2007.

PAMPI said what contributed to the surge in pork importation this year was the increase in the shipments of "cuts".

"We do not believe that the meat processors would be the importers of this category of pork parts," PAMPI said, noting that importation of cuts reached 23,761,236 kilos as of August 2008, against 4,963,011 kilos in August 2007.

"A sweeping control on, or restriction, of all pork imports will be an unfair stance for the meat processors and would challenge the enterprise system in a free economy. The distortion in market behavior of pork prices may have been introduced by the entry of huge volumes of pork cuts," PAMPI said.

PAMPI asked the government to reduce, if not suspend the importation of pork cuts, while allowing the uninterrupted sourcing of manufacturing grade parts for bellies, deboned pork parts, fats, offals, rind/skin, which are substantial raw materials for processed meat products that utilize pork-based formulations.

ThePigSite News Desk

Pork Commentary: Hog Prices Stay Strong

CANADA - This week's North American Pork Commentary from Jim Long.



Last week, despite weekly U.S. marketings of 2.335 million, the Iowa-Minnesota lean hog price last Friday averaged 69.72. A year ago with weekly marketings about 100,000 fewer, the Iowa-Minnesota price was just over 60¢ lean. More hogs … stronger prices. Just as significantly, the U.S.D.A. pork cut-out last Thursday was 76.95; a year ago it was around 67¢. Thank goodness for export demand.

USDA Projects Decrease in U.S. Per Capita Pork Consumption

USDA released it’s latest pork estimates on September 12.

USDA projects that pork output is to be 1.533 billion pounds larger than the previous year, but all of the increase will be absorbed by export markets with U.S. pork exports in 2008 expected to be up 2.3 million pounds or 73%. Per capita pork consumption this year is currently expected to be 5.7% lower than a year ago and is currently forecast to decline another 1.3% in 2009.

So what we have is USDA projecting a 7% decline in per capita pork consumption over two years. Not because of lack of supply as we are going to produce 1.533 billion more pounds of pork in 2008. An approximate 3.5 lb per capita (7%) consumption drop is about one billion lbs of pork; the equivalent of 2 weeks slaughter that will have to find export market homes.

We remember Larry Pope, CEO of Smithfield Foods, speaking at the Lake of the Ozarks conference three years ago. Obviously we are paraphrasing, but the just of his statement: “Pork exports are like heroin, we become dependent. Unfortunately, there is a myriad of risks to global trade.” High dependence on exports increase price risk and volatility.

A couple of weeks ago we wrote about the ineffectiveness of the Other White Meat marketing program. We pointed out there has been one billion dollars invested in check off by pork producers over the last two decades. Pork consumption and market share has decreased every year. On the flip side, global pork consumption is increasing. We reiterate our opinion that the Other White Meat program is an unmitigated failure. A billion dollars spent and continual pork consumption decreases. The USDA indication of a 7% decline in per capita pork consumption in 2008-2009 only magnifies the situation.

We believe in check off. We do not believe in hiding from the facts. The National Pork Board is proving itself delusionary beyond comprehension when it’s continually spinning that the Other White Meat program is working. Unfortunately, the Pork Board has its head in the sand (or maybe somewhere else). A billion dollars of our money gone with negative results. Heads should roll.

We are in tough times. Most producers have been losing $20 per head for a year. Every dollar we spend must maximize value. Many of us have our life’s savings invested in the pork industry. We are not bystanders. We want and need results. We must have results from our check off dollars beyond buying steak dinners for Pork Board Directors. U.S. pork consumption is decreasing; this is a crisis that affects the long term viability of our investments in our businesses.

Other Observations

  • If you want to solve the world oil supply issue, put farmers in charge. In two years we would have over-production and prices would collapse. Nature of the beast. 

  • The collapse of Lehman Brothers, AIG and the myriad of bailout programs just add to the business difficulty we all face. We already had a hog price, energy and feed volatility, now add the concern for credit availability. It’s not a stable time.

  • Sow price is sure holding up with heavy sows bringing over $300 a piece. This despite sow slaughter over 70,000 a week. A heck of a lot better than in June when heavy sows hovered around $100.

  • Sow price is sure holding up with heavy sows bringing over $300 a piece. This despite sow slaughter over 70,000 a week. A heck of a lot better than in June when heavy sows hovered around $100.

  • We continue to be optimistic that supply levels in 2009 will be such to push cash prices above breakeven. We still see June 2009 over $1.00 lean.

  • Why? We see domestic and global cutbacks to cattle (last week U.S. cattle on feed – 3%), poultry (egg and chick sets – 3%+), and as we all know, there will be fewer hogs in 2009. Less total meat is very bullish for prices. 2009 will see stronger hog prices. No doubt.

Monday, September 1, 2008

Russia names banned U.S. chicken plants, warns 22 Tyson plants

Russian will begin its ban of imports from 19 U.S. poultry plants on Sept. 1, Russia's animal and plant health regulatory agency Rosselkhoznadzor announced Friday, according to media reports.

Rosselkhoznadzor identified the banned plants by supplier number. According to a list of those numbers published by Reuters, the ban applies to the following plants:

Butterball, LLC in Carthage, Mo.
Case Farms of North Carolina in Dudley, N.C.
Choctaw Maid Farms in Forest, Miss.
Farbest Foods in Huntingburg, Ind.
House of Raeford Farms in Raeford, N.C.
Jennie-O Turkey Store in Barron, Wis.
Mountainaire Farms in Selbyville, Del.
Mountainaire Farms of Delaware in Millsboro, Del.
New Oxford Foods in New Oxford, Pa.
Peco Foods in Bay Springs, Miss.
Peco Foods in Sebastopol, Miss.
Peterson Farms in Decatur, Ark.
Sanderson Farms in Hazlehurst, Miss.
Sanderson Farms in Collins, Miss.
Simmons Foods in Soutwest City, Mo.
Simmons Foods in Siloam Springs, Ark.
Tyson Foods in Carthage, Miss.
Tyson Foods in Clarkesville, Ark.
Wayne Farms in Laurel, Miss.

"Joint Russian-U.S. inspections of U.S. poultry processing plants at the end of July and the beginning of August showed a number of inspected plants do not fully observe the agreed standards," Rosselkhoznadzor said in a statement. "The inspection showed that many plants have not taken steps to eliminate faults discovered by previous inspections."

22 Tyson plants warned

Rosselkhoznadzor said its inspectors had not been allowed to visit some poultry farms and had not received results of a probe into a possible excess of arsenic in some U.S. poultry supplied to Russia, according to Reuters. Rosselkhoznadzor said it wanted these results within one month.

"A timely reception of this information by Rosselkhoznadzor will prevent the imposition of restrictions on poultry imports to Russia for 22 plants belonging to Tyson Foods, four plants of Peco Foods and three plants of the Equity Group," the agency said, referring to the 29 plants Prime Minister Vladimir Putin said on Thursday would receive warnings. (See Putin says Russia will ban imports from 19 U.S. chicken plants on Meatingplace.com, August 29, 2008.)

Russia banning imports from 19 US chicken plants

Russian Prime Minister Vladimir Putin has announced that imports from 19 US chicken plants will be banned.

It has been reported that the chicken plants will no longer be allowed to export chicken products to Russia because they ignored warnings from Russian inspectors who examined poultry companies in 2007.
It was also reported that another 29 US plants would receive warnings.

Series of poultry products in Maple Leaf recall

The list of products that was recalled from the Canadian company Maple Leaf Foods this week contains several poultry products, marketed in different brands.

The Canadian food processor recalled all its products made at the Toronto plant, manufactured from January 2008, since a link has been determined between a strain of Listeria bacteria found at one of Maple Leaf's plants outside of Toronto. The strain caused illness and at least 15 people to lose their lives, after which the plant itself was temporarily closed down.
The product recall list includes chicken and turkey products under the Maple Leaf brand, but also under various other brand names, like Artisan Collection, Bittners/Schneiders, Compliments, Deli Gourmet, Generic, McDonald's and Schneiders. A full list of recalled products can be found here.

Responsibility
The Canadian food processor took full responsibility for the outbreak, which is thought to have been caused by a shipment of bad ready-to-eat meat products. Maple Leaf says it has no evidence that the bacteria could have spread beyond two initial lines that were identified as being linked to affected product.

Recall
The recall began on 17 August when the company announced it was recalling beef products due to Listeria contamination. The recall was expanded on 20 August to various other processed meat products.
Two days later, the Canadian Food Inspection Agency and Public Health Agency of Canada concluded that the strain of Listeria found in the first two beef products matched the strain involved in two cases of food-borne illness. As a result, Maple Leaf Foods expanded the recall once more, now including all products produced at the plant.

Sympathy
Maple Leaf sent out press releases recently and offered 'deep and sincere sympathy to those who are ill, or who have lost loved ones, on behalf of the 23,000 people of Maple Leaf Foods who live a culture of food safety'.
It is expected that the number of confirmed and suspected cases will continue to increase over the next several weeks. It is estimated that the recall will cost the approx. CAN$20 mln (US$19 mln), which will be primarily incurred for the reimbursement for returned products. Financial losses however are thought to turn out larger, since the company has become the target of a class action lawsuit.

Friday, August 29, 2008

Putin says Russia will ban imports from 19 U.S. chicken plants

By Janie Gabbett on 8/29/2008
of MeatingPlace.com

Prime Minister Vladimir Putin said on Thursday Russia will ban imports from 19 U.S. chicken plants, which he did not name, according to media reports.

Putin told CNN that 19 U.S. chicken plants will be barred from exporting to Russian because they ignored warnings from Russian inspectors who examined poultry companies last year and that another 29 U.S. plants would receive warnings.

Russia's agriculture minister on Wednesday was quoted as saying that the country would slash imports of pork and poultry dramatically, a message that sent stocks of meat processing companies down. (See Russia considers cuts on poultry, pork import quotas on Meatingplace.com, August 28, 2008.)

Both the U.S. poultry and pork industries have been aided by strong exports to a number of markets, including Russia, this year.

Putin said the move had nothing to do with tension over the recent war in Georgia, but U.S. industry observers may see it differently.

"There has been an escalation of rhetoric from Russia regarding US chicken and pork exports at least in part reflecting Russia's retaliation for the US's response to the conflict between Russia and Georgia," BMO Capital Markets Analyst Kenneth Zaslow wrote in a note to investors after the agricultural minister's warning about cutting quotas.

Zaslow expects U.S. pork and poultry exports to Russia to decline over the next six months, but sees the situation as temporary, since Russia does not yet have the production capacity to replace the import volumes.

Canadian pig numbers continue to fall

The latest Canadian livestock census, published in August, shows a continuing decline in the pork industry, with the number of farms with pigs falling 19% between July 2007 and the same month in 2008.


Biggest losers were the western provinces of Saskatchewan, with a 30% reduction and Alberta with 24%. There were 11.6% fewer pigs in total, although the number of breeding pigs fell by just 4.6%.

The figures also reflect an increasing trend towards shipping weaned pigs or feeder pigs to the USA, with finishing pigs over 60 kg down by 15%. However, following a record first quarter for live exports, when an estimated 2.9 million pigs moved to the USA, the second quarter numbers were put at 2.2 million by Statistics Canada.

Incentive
The drop in breeding pig numbers was lower than expected, bearing in mind the financial incentive to reduce the national herd size provided by the federal Cull Breeding Swine programme.

Producers who depopulate breeding barns and agree to leave them empty for three years qualify for payments of CAN$225 per culled animal.

After the programme was launched in April, uptake was good and by July had passed 100,000 but, since then, interest seems to have been lower. Martin Rice, executive director of the Canadian Pork Council, which administers the scheme, believes the key element that has discouraged participation is the obligation to leave the barn closed for three years.

Less attractive
"As well, improved returns over the past few months through the commercial market have made the $225 payout, with its conditions, less attractive," he says. He notes that many producers are reducing their numbers without going through the programme and without emptying entire barns or obligating themselves to leave space empty.

The objective of the programme is to reduce breeding stock numbers by about 150,000 sows, or 10% of the national herd, but it seems likely that the eventual figure will be nearer to 120,000.

Human food chain
Carcasses from the culled animals have to be kept out of the human food chain, both in the domestic and export markets. However, concerned about the public reaction to destroying perfectly good pork, and in response to producer comments, provincial pork organisations persuaded the federal government to allow the meat to be donated to local food banks.

For example, in Saskatchewan, about 2,000 sows were diverted from the cull programme and processed to produce 500 thousand pounds of meat, which went to food banks across the province as well as associated agencies.

The $440,000 cost of processing was borne by the provincial government. Similar schemes have been initiated in Alberta, Manitoba, Ontario and Quebec.

Thursday, August 28, 2008

Russia considers cuts on poultry, pork import quotas

By Janie Gabbett on 8/28/2008
of MeatingPlace.com

Russia is contemplating reducing its poultry and pork import quotas by hundreds of thousands of tons, the country's agriculture minister was quoted as saying Wednesday.

"It is time to change the quota regime and reduce imports, which have unfortunately built up in recent years," Alexei Gordeyev told reporters, according to the ITAR-Tass news agency.

Referring to the current quota agreements, Gordeyev said, "Agreements, signed more than three years ago as part of the negotiations on WTO accession, are unfortunately no longer in Russia's interests." Gordeyev's statement comes amid heightened tensions between Moscow and Washington over the war in ex-Soviet Georgia.

Poultry impact

While causing a lot of frantic phone calls over the past 24-hours, Gordeyev's comments so far have not been followed by any government-to-government discussions about reducing the quotas, U.S. Poultry and Egg Export Council (USAPEEC) President James Sumner told Meatingplace.com.


That said, just a month ago, USAPEEC and the Russian Poultry Meat Market Operators Association agreed in principle to reduce the 2009 U.S. tariff quota from 931,500 tons to 750,000 tons. (See Russia to cut tariff quotas on U.S. poultry imports on Meatingplace.com, July 29, 2008.)

"Our office in Moscow thinks it fortuitous we had these discussions. The (U.S. poultry) industry is already anticipating a decrease in exports to Russia," said Sumner, noting that Russia has been increasing its poultry production by 16 to 17 percent annually in recent years. Currently, Russia is the largest export market for U.S. chicken, accounting for over 25 percent of exports.

Pork impact

Russia also has been cited as an important and growing export market for U.S. pork.
The U.S. Meat Export Federation lists Russia as the fourth largest export market for U.S. pork. In the first six months of 2008, U.S. pork exports to Russia totaled 75,730 metric tons, up 143 percent in volume from the first six months of 2007.

Smithfield Foods CEO Larry Pope cited Russia Tuesday as one of the key growing markets that has helped boost the company's fresh pork sales. At a time when there is a large domestic supply of pork, strong and growing exports have been critical to keeping U.S. pork prices afloat.

China: recent pork prices drop

http://www.pigprogress.net/home/id1602-64416/china_recent_pork_prices_drop.html

Retail prices of pork in China fell 0.28% in the week ending August 22. According to the National Development and Reform Commission (NDRC), the prices dropped to an average of 14.23 yuan ($US2.08) per 500 grams.

Easing pork prices
Pork prices have been easing since reaching a peak of 14.8 yuan in the week of February 4.

Slight price increase for meat, chicken and eggs
Reports state that beef, chicken and egg prices rose slightly in the latest week, while mutton prices were down.

Food costs, which make up a third of the consumer price index and have added onto inflation, ascended 14.4% from a year earlier in July, compared with 17.3% in the year to June.

China's economic planning agency, the NDRC, surveys retail prices in 36 major cities.

Saturday, August 23, 2008

Food prices to post biggest rise since 1990: USDA

By Christopher Doering via http://news.yahoo.com/s/nm/food_prices_usda_dc
Wed Aug 20, 5:43 PM ET

WASHINGTON (Reuters) - U.S. consumers should brace for the biggest increase in food prices in nearly 20 years in 2008 and even more pain next year due to surging meat and produce prices, the Agriculture Department said on Wednesday.

Food prices are forecast to rise by 5 percent to 6 percent this year, making it the largest annual increase since 1990. Just last month, USDA forecast food prices would climb between 4.5 and 5.5 percent in 2008.

"It's a little bit of a surprise how strong some of the numbers were in July," USDA economist Ephraim Leibtag, who prepared the forecast, said in an interview.

"We've been waiting for some moderation, but especially with some of the meat prices and how much has come through relatively recently (at the retail level) leads me to believe the overall number may be a little bit higher for the year," he added.

Leibtag said he expected food prices to moderate, but the timing depends on what happens to volatile energy and food ingredient costs.

Prices are expected to rise by 4 percent to 5 percent in 2009, lead by red meat and poultry. The forecast, if correct, would be the third straight year where food prices have surged at least 4 percent.

In its latest food prices report, USDA said the increase for 2008 was due partly to higher costs for meat, poultry and fish, which make up about 12 percent of total food spending. Overall, costs for these items are forecast to rise 3 percent compared to 2.5 percent estimated last month.

Prices for fruits and vegetables, which account for more than 8 percent of food spending, will also rise 5.5 percent versus 5 percent predicted in July.

USDA also forecast increases this year of 9.5 percent for cereals and bakery products, a 14 percent surge for eggs and a 13.5 percent hike for fats and oils.

A broad range of commodities posted record highs this year, including corn and soybeans. Prices have since backed off as concerns over smaller crops due to a wet spring in the U.S. Midwest have largely dissipated.

In its first estimate of the fall harvest, USDA last week forecast a corn crop of 12.29 billion bushels, the second largest on record.

Despite the near-record crops, farm-gate prices for this year's corn, wheat and soybean crops, while lower than earlier forecasts, will still set records.

Agriculture Secretary Ed Schafer said last week he did not see any relief for food prices during the remainder of the year.

The cost of energy -- used to transport, package and process foods -- is still boosting food prices, even though energy prices have dropped. Oil has slumped from a record high above $147 a barrel on July 11 to $115.

"We haven't seen those prices reflected in the finished products yet," Schafer said.

Americans spend more than $1 trillion a year on groceries, snacks, carry-out food and meals in restaurants. Farmers get 20 cents of the food dollar and the rest goes to processing, labor, transportation and distribution.