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.