Friday, June 27, 2008

Supply questions in the Philippines

Local pig prices in the Philippines have eased recently to around P105 per kilogram liveweight for animals from commercial units, although there remain fears about pork supplies after backyard production was decimated in 2007 by an unidentified disease. Imports of pork meanwhile increase, with almost 9000 tons purchased from the USA in the first 4 months of the year. National Federation of Hog Farmers Inc (NFHFI) has urged the department of agriculture to defer the approval of exports of pigmeat to Singapore until the recovery of the industry is more clear.

NFHFI vice-chairman Renato Eleria said the pig sector remained highly vulnerable to a recurrence of the influenza-like disease that almost wiped out backyard units last year. The federation has also joined with Philippine poultry and feed associations in calling for the government to assist national food security by removing tariffs on imported feed materials such as soybean meal and manioc. Given the rise in world market prices for these commodities, they comments, it had become economically unviable to produce animal feeds without significantly raising prices to recover cost.

Also in the Philippines, tax relief has been granted to the country's largest pork producer over an investment in pig production on previously disputed land in Sumilao, Bukidnon. Farmers in the area have campaigned on ownership of the land for over 18 years, but recently were handed 50 hectares of the 144-hectare property. Now the Monterey Foods subsidiary of San Miguel Corporation wants to invest P1.81 billion in building facilities in Sumilao for pig production and meat processing. The project, due to start operating next year, has been awarded tax breaks and other incentives by the national Board of Investments.

Another company involved in investing in new pork production arrangements is Aboitiz Equity Ventures. The holding group for a series of meat and food businesses will spend about P900 million on expanding its pig and feed operations in Tarlac and Iligan. A new 10 000 tons/month feedmill will be ready by July for the group's subsidiary Fil-Am Foods.

Tuesday, June 24, 2008

B.S.E. case identified in British Columbia

(MEATPOULTRY.com, June 23, 2008)
by Keith Nunes

OTTAWA — The Canadian Food Inspection Agency has detected a case of bovine spongiform encephalopathy in the province of British Columbia. The C.F.I.A. did not provide details about the age or specific location of the cow, but did emphasize that no part of it made it into the food supply or feed chain.

This is Canada’s 12th case of B.S.E. The last case was identified this past February in a six-year old dairy cow.

AI Alert - China

Information received on 20/06/2008 from Dr Zhang Zhongqui, Deputy Director General , China Animal Disease Control Centre, Veterinary Bureau, Beijing, China (People's Rep. of).

Please below full report:




DEFRA publishes report on UK bird flu case

from: WorldPoultry

DEFRA has published an epidemiology report into the avian flu outbreak confirmed on a free range layer unit near Banbury, UK earlier this month, Farmers Weekly reports.

The report concludes that, at the time of writing (11 June), the outbreak is confined to a single premises and there is no evidence of infection in the Protection Zone or of spread to any other premises. However, investigations continue.

It suggests that it is possible that a low pathogenic strain already present on the farm had mutated into the highly pathogenic H7N7 avian flu. Analysis and investigations are continuing and a number of source hypotheses are being considered.

Chief veterinary officer, Nigel Gibbens, said: "The UK is at a constant, but low level of risk of the introduction of avian flu and the report highlights the need for flock owners and poultry vets to remain vigilant for signs of disease, including the possibility of low pathogenic avian flu."

Monday, June 23, 2008

Meat industry leaders warn cutbacks are coming

By Janie Gabbett on 6/19/2008 for Meatingplace.com

Meat industry executives Thursday warned of production cutbacks in the beef, pork and poultry sectors as runaway corn prices have pushed input costs to unmanageable levels.

Citing corn futures prices that point to another 30 percent increase in alreadyescalated feed costs next year, Seaboard Foods CEO Rod Brenneman told reporters on a conference call that sow slaughter will continue and there will be fewer hogs and less pork in the marketplace by later this year.

Calling the effect of the current Renewable Fuels Standard on livestock producers "a classic case of unintended consequences," Brenneman said, "With one bushel of corn, you can produce approximately 20 pounds of pork, or 2.5 gallons of ethanol, but not both."

Mark Hickman, CEO of Peco Foods and chairman of the National Chicken Council, said the poultry industry is entering a second phase of production cutbacks, following a 1 percent to 2 percent cutback in production earlier this year. "We are hearing talk that this was not nearly enough, so liquidation is in round two."

Paul Hill, West Liberty Foods chairman who also heads up the National Turkey Federation, forecast a minimum 10 percent to 15 percent liquidation of the nation's turkey herd in response to higher feeding costs.

"We're in the commodity business. We don't get the privilege of tacking on our costs to the public," said James Herring, CEO of Texas-based cattle-feeding operation Friona Industries. "Operations all over the Texas Panhandle and the U.S. are under these pressures and closing their doors as we speak."

The conference call was part of a meat industry push to get the Bush Administration to suspend the 9 billion-gallon ethanol mandate for 2008 and to reconsider other ethanol-production incentives, including distiller subsidies and tariffs on ethanol imports. (See As flooding continues, meat processors ask EPA to suspend ethanol mandate on Meatingplace.com, June 18, 2008.)

Acknowledging ethanol is not the only factor driving feedgrain prices, the executives pointed out that current ethanol policy was developed when the United States had an oversupply of grain and farmers were getting only about $2 per bushel for their corn. Current futures prices are now pointing to $8 per bushel corn, and current oil prices are nearing $140 per barrel.

"There are not a lot of variables in this world we can control," said Brenneman. "But government mandates are certainly something we can control."

Meat price surges as poor weather hits US feed crops

By Javier Blas
Published: June 16 2008 23:18 | Last updated: June 16 2008 23:18

The world economy faces a fresh wave of food inflation as the price of meat surges on the back of record prices for corn and soyabean, the main fodder crops for farm animals.

Both crops jumped to fresh highs on Monday after US farmers said heavy rain and low temperatures over the past six weeks had damaged millions of acres of crops and meant several million more acres had been left unplanted.

Traders said rising prices for corn and soyabean would reverberate through the food supply chain, pushing up the cost of meat, poultry and dairy products. The surge in corn prices would further affect a range of foodstuffs, including breakfast cereals and sweeteners.

The United Nations’ Food and Agriculture Organisation warned that higher feeding costs, strong demand and tight supplies were pushing up the retail prices of meat.

“In the face of strong demand, meat supplies are tight and this situation is contributing to the increase in prices,” the FAO said. “Higher feed costs are...pushing up retail prices,” it added in its monthly food price index report.

In Chicago, live cattle futures for delivery in April 2009 – a key contract – surged to 115.5 cents a pound, the highest for any cattle contract traded in the US. The spot live cattle contract traded at 96.075 cents a pound, approaching a record high for spot contracts.

Meat prices have increased by almost 15 per cent in the past six months, accelerating from a 5 per cent rise in the previous six-month period, according to the FAO.

The rise in meat prices will be felt most strongly in richer countries such as in Europe and the US. Poor countries rely more on staples such as wheat and rice and suffered during last year’s price surge in those cereals.

Sudakshina Unnikrishnan of Barclays Capital said the impact of extremely wet weather in the US had continued to buoy the grain markets. The concern now, she said, was that farmers might decide it was too late to plant their fields and would, instead, cash in their crop insurance policies.

The US is the world’s largest corn exporter, accounting for 70 per cent of global trade, and the second largest exporter of soyabean, with a market share of almost 40 per cent. It is also a large exporter of beef.

The expected fall in corn production means global corn stocks, measured by days of consumption, would fall by next summer to the lowest level since the early 1970s, according to Deutsche Bank.

Spot corn prices in Chicago reached a record of $7.60 a bushel, with contracts for delivery next summer trading for the first time above $8 a bushel. Spot soyabean prices rose to a fresh high of $15.93 a bushel.

Tuesday, June 17, 2008

Global Pig Price Cycle Swings Upwards

By Chris Harris, Senior Editor, ThePigSite. Our snapshot of the ongoing global pig industry trends as reported in June 2008 Whole Hog Brief. To read the full detailed analysis including all the commentary and graphical data, subscribe to the publication.


European producers have seen continued strong prices through May, making it three months running that prices have risen rapidly.

According to the Whole Hog, prices rose by almost 14 per cent in May compared to a year ago, with eastern European countries seeing the highest rises.

Producer prices in Poland rose by 32.4 per cent and 24.1 per cent in the Czech Republic and 22.7 per cent in Hungary.

Germany and the Netherlands saw the highest rises of 16.2 per cent and 14.8 per cent respectively.

However, while European prices are rising, the Whole Hog reports that Hungary that has seen reduced production and increase imports over recent years has been hit by soaring feed costs.

These overheads have reduced farm income and seen the slaughter market saturated as animals are culled and farms closed.

Meanwhile, the Whole Hog's Global Price Cycle broke into the positive during the second week of May - the first time the index has been positive since the beginning of June last year.

The Whole Hog says that if this upswing marks a new phase in the price cycle, then this year long downturn will be the shortest in the last decade.

The turn around has come about because of the rise in US pig prices, which have gone up by 56 per cent in the last two months.

US prices are at their highest since the Whole Hog started price cycle a decade ago.

However, the Whole Hog also warned that the cycle has been positive twice before only to fall back in a couple of months.

World Growth in Pig Meat

The UN's Food and Agricultural Organisation (FAO) report focuses on the sharp rise in food and feed costs over the last year.

The repost shows that global pig meat production is expected to rise this year by two per cent to 101 million tonnes.

The rise of global production follows a three per cent fall last year, which was largely the result of culling a million pigs because of PRRS in China.

The Whole Hog says that it was in Canada and Europe where output last year was at its highest.

In South America an increase in production is expected in all the producing countries and in Russia it is set to go up by more than six per cent.

Another report from the USDA shows that the recent earthquake in China has severely affected production, even though it was not centred on the main production areas.

The earthquake has also hit prices, which are expected to be high for the remainder of the year, the Whole Hog reports. The prices are also being forced up by high domestic demand and lower domestic supplies.

North American Exports Rise

The US has seen a rise in exports of 42 per cent for the first quarter of the year, reaching 431,434 tonnes.

First quarter exports to Japan were 10.8 per cent higher in the first quarter at 104,976 tonnes making it the leading buyer of US pork with 24.3 per cent of the total pork exported.

The Whole Hog reports that US pork exports to China fell by 78.2 per cent from the previous month although year to day they are up by 194.1 per cent at 45,599 tonnes.

US pork imports are continuing to fall with the first quarter falling by 10.1 per cent to 92,355 tonnes.

Canadian exports have started to grow despite the restructuring of the market.

In the first quarter, the Whole Hog says that Canadian exports showed a modest rise of 1.8 per cent and although exports to leading markets of the US and Japan have been hit, exports to Russia have risen by 20 per cent.

Taiwan and South Korea are also strong markets for Canadian pork.

Australian Exports Slide

Australian exports of pig meat have declined further despite a rise in production, which rose by 3.6 per cent compared to February last year.

While exports went up in volume by 2.4 per cent to 3,463 tonnes, in value they fell by 6.7 per cent to A$10.7 million.

Japan has shown an annual; decline in imports to February of one per cent since January and 11.3 per cent year on year.

The Whole Hog says that Japan is continuing to run down its large stocks of pork amassed during the avian flu outbreak of 2006. Stocks by the end of February were 164,150 tonnes.

Despite a drop in imports in April of 14 per cent to South Korea, they were still up year on year.

Imports from the US were 7,937 tonnes and from Canada 4,840 tonnes. South Korea also imported 4,024 tonnes from Chile.

Year to date South Korea's imports of pig meat are up by 3.8 per cent.

Deadly bird flu fear grips Hong Kong

from: http://upiasiaonline.com/Society_Culture/2008/06/13/deadly_bird_flu_fear_grips_hong_kong/2884/


Hong Kong, China — Fears of the deadly H5N1 bird flu gripped Hong Kong Wednesday as chickens in different markets across the territory tested positive for the lethal strain.

The outbreak which has health authorities scrambling to contain it, first surfaced last Saturday in a single market during a routine inspection and has since been discovered in other markets that sell live poultry. The Director of Agriculture, Fisheries and Conservation department exercising statutory power declared all markets and fresh provision shops selling live poultry as infected areas leading to the temporary closure of all 260 stalls selling live poultry in 64 wet markets in the city. A further 209 fresh provision shops surrendered their chicken products to health authorities.

Along with the closure, authorities culled more than 3,500 chickens and disinfected wholesale and retail markets thoroughly to stop the strain from spreading. However, the source of the flu has kept many guessing, although there is a growing suspicion on Mainland China, which supplies 80 percent of Hong Kong’s chicken and has had sporadic outbreaks of avian flu since 2003 including human infections. Although the source has not yet been pinned, import of live chicken from the Mainland has been temporarily suspended.

The secretary for Food and Health, Dr York Chow, in a press release said, "In light of the presence of avian influenza virus in more markets, we decided to suspend temporarily live chicken imports from the Mainland for 21 days with effect from today (June 11) with reference to the guidelines of the World Organisation for Animal Health.”

Samples from 50 local chicken farms in Hong Kong, however, proved negative for the H5N1 strain. As a precautionary measure, “local farms would stop dispatching chickens to the market,” Chow said. Local farms are relatively safe due to stringent biosecurity measures adopted under strict guidelines from the AFCD and operate in a closed environment.

Despite a swift move by government authorities to contain the virus, Hong Kong remains jittery over the virus jumping the species barriers and infecting humans. The avian flu has revived memories of the first outbreak in 1997 where the strain infected 18 people. Six died. There have been three outbreaks since in 2001, 2002 and 2003. Jo Leung, a local primary school teacher said she was worried but felt that chicken that was already cleaned, cut and frozen sold in supermarkets was good for consumption. “I will not eat any chicken for a while. But I think the frozen ones in supermarkets are okay if properly cooked,” she said.

Although there is no evidence yet of any human infections, especially in vendors who may have had some contact with the infected birds, health authorities are not taking any chances. The Department of Health and the Hospital Authority is monitoring the health conditions of poultry workers in the affected markets and the Centre for Health Protection has called on members of the public to seek immediate medical treatment if they exhibit influenza symptoms such as high fever. Public and private hospitals as well as clinics have been told to report to CHP immediately, if a suspected case of avian influenza turns up. In addition, CHP has also set up a telephone hotline to answer public enquiries and monitor public health conditions.

The fear of a territory wide outbreak is so high that the Government has spared no efforts in cracking down on illegal import of live poultry and birds. The Customs and Excise Department together with other relevant departments have stepped up vigilance on smuggling activities and have called on the public to report any cases of possible poultry smuggling into the territory, especially across the border from the mainland. A dedicated Customs information telephone hotline has been set up.

Despite the efforts, poultry traders have criticized the government for not suspending live chicken wholesale trading immediately after the bird flu was detected last Saturday. Traders are upset that retailers could buy at wholesale markets even after the ban on live poultry imports from the mainland and supplies from local chicken farms was imposed, only to find the AFCD on their doorsteps waiting to cull the chickens. Financial losses could have been avoided, they argue.

However, as per media reports, officials from the Food and Environmental Hygiene department have discussed compensation with chicken traders and retailers. FEHD has also sent staff to Mainland registered farms and processing plants to ensure that chickens and poultry meat for Hong Kong is safe and supply would not be affected.

Beyond all the vigilance, research and precautionary measures by the government to combat the virus outbreak, Hong Kong remains on high alert for a dangerous avian flu virus that has the capability to create a global pandemic.

Wednesday, June 4, 2008

DA bans birds, poultry products from Denmark

The Department of Agriculture (DA) is imposing a temporary ban on all imports of domestic and wild birds, along with poultry and its products, from Denmark following findings of avian influenza (AI) or bird flu virus in that country.

The temporary ban and other emergency measures are necessary to protect human health and the P60 billion poultry industry in the Philippines which has remained free of bird flu ever since the H5N1 strain of this virus first resurfaced in Asia in 2003.

The ban covers all "domestic and wild birds and their products, including day old chicks, eggs and semen."

The DA issued the ban after the office International des Epizooties (OIE) or the Animal Health Organization confirmed that low pathogenic AI has been detected in a poultry farm in Strentrup, Svendborg, Kommune, South Denmark.

The AI virus has been reportedly affected geese, chickens, ducks and mallards.

DA quarantine offices and inspectors at all major airports and seaports have been ordered to stop and confiscate all incoming shipments of live birds, poultry and poultry products coming from Denmark.

The DA suspended the issuance of veterinary quarantine clearances (VQCs) to all imports covering birds and poultry products from Denmark.

Besides Denmark, the Philippines currently bans imports of birds, poultry and its products from Korea, Saudi Arabia, Poland and the western African coun try of Benin.

The Philippines is one of the only three AI-free countries in Southeast Asia.

The two others are Brunei and Singapore.