By Janie Gabbett on 5/30/2008 for Meatingplace.com
The earthquake that rocked China on May 12 could decrease pork production by up to 4 percent, slightly boost national pork prices and support continued pork imports over the next six to eight months, according to USDA's agricultural office in Beijing.
While the epicenter of the earthquake in China's Sichuan Province was not a main swine and pork production area, some large production areas nearby were impacted with an estimated four million to five million hogs either killed by the earthquake or slaughtered due to lack of feed or water supplies, USDA analysts in Beijing said in a report. Longer-term impact will depend on how quickly water, energy and transportation services can be restored.
"China's 2008 pork supply is expected to remain very tight as production recovers slowly," the analysts wrote.
Pork prices in China are expected to decline slightly in the near term as swine are liquidated for lack of feed or water, but are then expected to rise. Pork prices in April were already up 68 percent from a year ago on tight supplies from decreased production due to disease and other factors.
Pork imports are expected to remain strong, with the United States projected to remain the largest supplier to China for the remainder of 2008.
China imported $121.6 million worth of pork in the January-March 2008 period, up from $7.5 million in the same period a year ago. Pork variety meat imports were valued at $142.6 million, up from $74.2 million in the same period a year ago. The report said 68 percent of China's pork imports and 24 percent of pork variety meat imports came from the United States, not including U.S. exports to Hong Kong for re-export to China.
Friday, May 30, 2008
Agriculture commodity prices to remain high
(MEATPOULTRY.com, May 29, 2008)
by MEAT&POULTRY Staff
ROME ― Although agricultural commodity prices should ease from their recent record peaks, they are expected to average well above their mean levels of the past decade over the next 10 years, according to the latest Agricultural Outlook from Organization for Economic Cooperation and Development (O.E.C.D.) and the U.N. Food and Agriculture Organization (F.A.O.).
"The way to address rising food prices is not through protectionism but to open up agricultural markets and to free up the productive capacity of farmers, who have proven repeatedly that they will respond to market incentives," said Angel Gurría, O.E.C.D. secretary-general at the Outlook’s launch in Paris. "Governments can also do more to foster growth and development in poor countries, so as to improve the purchasing power of the most vulnerable food buyers."
Food prices and their impact on the world economy will be one of the issues that will be addressed at the O.E.C.D. Ministerial Council Meeting in Paris from June 4-5. At a separate summit at F.A.O. headquarters in Rome, from June 3-5, world leaders, including many heads of state and government from around the world, will discuss policies and strategies on how to improve and ensure world food security and re-launch agriculture in rural communities of developing countries.
In comparing averages of the coming decade with those of the past, real prices, i.e. nominal prices corrected for inflation, are projected to increase in a range from less than 10% for rice and sugar, under 20% for wheat, around 30% for butter, coarse grains and oilseeds to more than 50% for vegetable oils, according to the report.
Prices may also become more volatile because stock levels are expected to remain low and as some of the demand for agricultural commodities becomes less responsive to price changes. The recent increase in investment funds on commodity futures markets might also become an additional factor in price variability. Climate change, too, would affect crop production and supply in unforeseen ways.
Drought in some of the world’s main grain-producing regions in the context of low stocks was a large – but transitory – factor in the sharp price rises of the past two years. Growing demand for biofuel is another factor contributing to higher prices. World fuel ethanol production tripled between 2000 and 2007 and is expected to double again between now and 2017 to reach 127 billion liters a year. Biodiesel production is seen to expand from 11 billion liters a year in 2007 to around 24 billion liters by 2017. The growth in biofuel production adds to demand for grains, oilseeds and sugar, so contributing to higher crop prices.
Another finding of the report includes Brazil’s share of world meat exports is expected to grow to 30% by 2017.
by MEAT&POULTRY Staff
ROME ― Although agricultural commodity prices should ease from their recent record peaks, they are expected to average well above their mean levels of the past decade over the next 10 years, according to the latest Agricultural Outlook from Organization for Economic Cooperation and Development (O.E.C.D.) and the U.N. Food and Agriculture Organization (F.A.O.).
"The way to address rising food prices is not through protectionism but to open up agricultural markets and to free up the productive capacity of farmers, who have proven repeatedly that they will respond to market incentives," said Angel Gurría, O.E.C.D. secretary-general at the Outlook’s launch in Paris. "Governments can also do more to foster growth and development in poor countries, so as to improve the purchasing power of the most vulnerable food buyers."
Food prices and their impact on the world economy will be one of the issues that will be addressed at the O.E.C.D. Ministerial Council Meeting in Paris from June 4-5. At a separate summit at F.A.O. headquarters in Rome, from June 3-5, world leaders, including many heads of state and government from around the world, will discuss policies and strategies on how to improve and ensure world food security and re-launch agriculture in rural communities of developing countries.
In comparing averages of the coming decade with those of the past, real prices, i.e. nominal prices corrected for inflation, are projected to increase in a range from less than 10% for rice and sugar, under 20% for wheat, around 30% for butter, coarse grains and oilseeds to more than 50% for vegetable oils, according to the report.
Prices may also become more volatile because stock levels are expected to remain low and as some of the demand for agricultural commodities becomes less responsive to price changes. The recent increase in investment funds on commodity futures markets might also become an additional factor in price variability. Climate change, too, would affect crop production and supply in unforeseen ways.
Drought in some of the world’s main grain-producing regions in the context of low stocks was a large – but transitory – factor in the sharp price rises of the past two years. Growing demand for biofuel is another factor contributing to higher prices. World fuel ethanol production tripled between 2000 and 2007 and is expected to double again between now and 2017 to reach 127 billion liters a year. Biodiesel production is seen to expand from 11 billion liters a year in 2007 to around 24 billion liters by 2017. The growth in biofuel production adds to demand for grains, oilseeds and sugar, so contributing to higher crop prices.
Another finding of the report includes Brazil’s share of world meat exports is expected to grow to 30% by 2017.
South Korea to resume U.S. beef imports next week
By Tom Johnston on 5/29/2008 for Meatingplace.com
Seoul has informed Washington that South Korea will resume imports of U.S. beef sometime next week.
"We are still studying the statement released by [Korean Agriculture Minister Chung Woon-chun], but we welcome his announcement that they have finished the review of public comments and will be implementing the protocol next week," Gretchen Hamel, spokeswoman for U.S. Trade Representative Susan C. Schwab, told Meatingplace.com.
The United States and South Korea on April 18 agreed to a new beef protocol lifting almost all restrictions on imports of U.S. beef. Quarantine inspections originally were scheduled to resume May 15, but Seoul stalled in an effort to calm public fears about the safety of U.S. beef. (See Korea again delays U.S. beef imports: report on Meatingplace.com, May 27, 2008.)
Inspections of some 5,300 tons of U.S. beef, held up in storage facilities since Seoul suspended imports of U.S. beef in October, will begin early next week before entering commerce.
"The government has fixed new sanitary conditions for importing beef," Chung told reporters. "The government will prioritize public health and safety in carrying out its policies."
The U.S. Meat Export Federation was pleased to hear the news, but expressed cautious optimism. "We look forward to supplying high-quality, wholesome U.S. beef to South Korea, but this is a volatile situation that changes day by day," USMEF President and CEO Philip Seng said in a statement. "We are monitoring events in Korea very closely."
Seoul has informed Washington that South Korea will resume imports of U.S. beef sometime next week.
"We are still studying the statement released by [Korean Agriculture Minister Chung Woon-chun], but we welcome his announcement that they have finished the review of public comments and will be implementing the protocol next week," Gretchen Hamel, spokeswoman for U.S. Trade Representative Susan C. Schwab, told Meatingplace.com.
The United States and South Korea on April 18 agreed to a new beef protocol lifting almost all restrictions on imports of U.S. beef. Quarantine inspections originally were scheduled to resume May 15, but Seoul stalled in an effort to calm public fears about the safety of U.S. beef. (See Korea again delays U.S. beef imports: report on Meatingplace.com, May 27, 2008.)
Inspections of some 5,300 tons of U.S. beef, held up in storage facilities since Seoul suspended imports of U.S. beef in October, will begin early next week before entering commerce.
"The government has fixed new sanitary conditions for importing beef," Chung told reporters. "The government will prioritize public health and safety in carrying out its policies."
The U.S. Meat Export Federation was pleased to hear the news, but expressed cautious optimism. "We look forward to supplying high-quality, wholesome U.S. beef to South Korea, but this is a volatile situation that changes day by day," USMEF President and CEO Philip Seng said in a statement. "We are monitoring events in Korea very closely."
World trade in beef, pork seen expanding by more than 40 percent
By Janie Gabbett on 5/29/2008 for Meatingplace.com
World trade in beef and pork are expected to grow by more than 40 percent by 2017 while poultry trade expands by just below 40 percent, according to the latest Agricultural Outlook from the Organization for Economic Cooperation and Development (OECD) and the U.N. Food and Agriculture Organization (FAO).
Increased import demand for beef and pork will be dominated by OECD countries while Asian developing countries will drive poultry import gains, the study predicts.
Between now and 2017, average global prices for both beef and pork are expected to rise by about 20 percent, while wheat and corn prices rise 40 percent to 60 percent and oilseed prices increase by more than 60 percent, as compared to average prices from 1998 to 2007.
The OECD report suggested further review of existing biofuel policies, noting their role in escalating food prices along with high oil prices, changing diets, urbanization, economic growth, expanding populations and low global grain stocks due to climate changes that have spurred droughts in major production areas.
Next week, Agriculture Secretary Ed Schafer will lead the U.S. delegation to an FAO conference in Rome on world food security that will specifically address the challenges of climate change and bioenergy.
World trade in beef and pork are expected to grow by more than 40 percent by 2017 while poultry trade expands by just below 40 percent, according to the latest Agricultural Outlook from the Organization for Economic Cooperation and Development (OECD) and the U.N. Food and Agriculture Organization (FAO).
Increased import demand for beef and pork will be dominated by OECD countries while Asian developing countries will drive poultry import gains, the study predicts.
Between now and 2017, average global prices for both beef and pork are expected to rise by about 20 percent, while wheat and corn prices rise 40 percent to 60 percent and oilseed prices increase by more than 60 percent, as compared to average prices from 1998 to 2007.
The OECD report suggested further review of existing biofuel policies, noting their role in escalating food prices along with high oil prices, changing diets, urbanization, economic growth, expanding populations and low global grain stocks due to climate changes that have spurred droughts in major production areas.
Next week, Agriculture Secretary Ed Schafer will lead the U.S. delegation to an FAO conference in Rome on world food security that will specifically address the challenges of climate change and bioenergy.
Wednesday, May 21, 2008
USDA to ban downer cattle slaughter
By Janie Gabbett on 5/20/2008 for Meatingplace.com
U.S. Secretary of Agriculture Ed Schafer on Tuesday announced his intention to ban slaughter of cattle at federally inspected facilities that go down after initial inspection.
"Today I am announcing that USDA will begin working on a proposed rule to prohibit the slaughter of all disabled non-ambulatory cattle, also known as 'downer cattle.' In other words, I am calling for the end of the exceptions in the so called 'downer rule,'" Schafer said in a statement.
Under current regulations, a downed cow can still be slaughtered if a USDA inspector reassesses the animal and determines it is still safe for consumption. An example would be an animal that tripped and broke a limb, rather than fell due to illness. The rule became controversial after USDA recalled 143 million pounds of beef in the wake of video that showed downed cattle at Hallmark/Westland Meat Packing Co. seemingly headed to slaughter without re-inspection.
Schafer said the current rule has been "challenging to communicate and has, at times, been confusing to consumers." He characterized Tuesday's decision as a way to simplify the issue and positively impact humane cattle handling by reducing the incentive to send marginally weakened cattle to market.
Impact
Schafer minimized the impact of the decision on slaughter facilities, noting that last year, of the nearly 34 million slaughtered cattle, fewer than 1,000 cattle that were re-inspected were actually approved by the veterinarian for slaughter.
"This represents less than 0.003 percent of cattle slaughtered annually. As you can see, this number is minimal," said Schafer.
The decision comes at the end of a 60-day enhanced surveillance period when USDA inspectors were instructed to spend 50 percent to 100 percent more time verifying and documenting humane handling practices at federally inspected plants. Schafer said USDA is still analyzing those results.
The American Meat Institute, which along with the National Meat Association and the National Milk Producers Federation had petitioned USDA in April requesting this move applauded today's action. The Humane Society of the United States, which was responsible for video taping animal abuse at Hallmark/Westland, also praised the move.
U.S. Secretary of Agriculture Ed Schafer on Tuesday announced his intention to ban slaughter of cattle at federally inspected facilities that go down after initial inspection.
"Today I am announcing that USDA will begin working on a proposed rule to prohibit the slaughter of all disabled non-ambulatory cattle, also known as 'downer cattle.' In other words, I am calling for the end of the exceptions in the so called 'downer rule,'" Schafer said in a statement.
Under current regulations, a downed cow can still be slaughtered if a USDA inspector reassesses the animal and determines it is still safe for consumption. An example would be an animal that tripped and broke a limb, rather than fell due to illness. The rule became controversial after USDA recalled 143 million pounds of beef in the wake of video that showed downed cattle at Hallmark/Westland Meat Packing Co. seemingly headed to slaughter without re-inspection.
Schafer said the current rule has been "challenging to communicate and has, at times, been confusing to consumers." He characterized Tuesday's decision as a way to simplify the issue and positively impact humane cattle handling by reducing the incentive to send marginally weakened cattle to market.
Impact
Schafer minimized the impact of the decision on slaughter facilities, noting that last year, of the nearly 34 million slaughtered cattle, fewer than 1,000 cattle that were re-inspected were actually approved by the veterinarian for slaughter.
"This represents less than 0.003 percent of cattle slaughtered annually. As you can see, this number is minimal," said Schafer.
The decision comes at the end of a 60-day enhanced surveillance period when USDA inspectors were instructed to spend 50 percent to 100 percent more time verifying and documenting humane handling practices at federally inspected plants. Schafer said USDA is still analyzing those results.
The American Meat Institute, which along with the National Meat Association and the National Milk Producers Federation had petitioned USDA in April requesting this move applauded today's action. The Humane Society of the United States, which was responsible for video taping animal abuse at Hallmark/Westland, also praised the move.
Friday, May 16, 2008
Understanding World Food-Fuel Crisis
Published: May. 12, 2008
Source: Peter Goldsmith (217) 244-1706
URBANA - Symptoms of the food-versus-fuel crisis are appearing regularly in the news but the underlying causes--and long-term implications--are poorly understood, said a University of Illinois agricultural economics professor.
"An important component of the food-versus-fuel debate that is not well understood is how increases in wealth for Asian consumers are dramatically affecting the markets for commodities worldwide," said Peter Goldsmith, director of the National Soybean Research Laboratory and an associate professor in the U of I's Department of Agricultural and Consumer Economics.
To help fill that knowledge gap, Goldsmith, Tad Masuda, a postdoctoral researcher, and Barbara Mirel of the University of Michigan have built a 3-D computer model that visually conveys the interrelationship and impacts of income changes around the world on consumption, production, and markets.
"Global Food in 3-D--Version 2" is a Web-based program that will be accessible on a trial basis worldwide to analysts and other interested parties by June.
"It will put the story of food demand at everyone's fingertips," Goldsmith said.
The program deploys three interactive features on the screen--a sidewall, a back wall, and a floor.
On the "side wall," users can graphically display consumption and production data for 15 protein commodities. These can be displayed by country, region, or for the world.
"In the global food system, the production and consumption of commodities are increasingly separate," Goldsmith said. "For example, poultry and pork trade has increased 14 percent to 16 percent per year since 2000, respectively. Brazil is now the largest exporter with Russia and China being the leading importers. The shift in the loci of world poultry and pork production will have larger impacts on underlying feed markets and grain flows."
The "back wall" features country-specific information such as consumption per capita, income elasticities, and population metrics. These data help to demonstrate how income affects consumption.
"The relationship is simple--if I get $1 more in income, I'll not only eat more. If I get significantly more income, I'll eat even more but will shift my consumption to different types of food," he said. "We have that data for every country in the world going back to 1961 and projecting up to 2030."
As a component of the food-versus-fuel debate, there is an economic principle known as "elasticity." Simply defined, this means as incomes move up, food consumption and expenditures change. This is why small increases in income in heavily populated nations like India and China can have major impacts on commodity markets, especially those tied to protein.
"The visualization provided by this program helps one understand this relationship. It provides a vivid demonstration of how the complex system involving income growth, population changes, and food consumption functions," he said.
The "floor" of the model is a map of the world which dynamically reflects changing consumption or production patterns and elasticities over time.
As meat and poultry consumption rises in Asia with increased incomes, a greater demand is triggered for corn and soybeans to feed beef, pork, and poultry. Holding all factors constant, projections indicate that 120 million metric tons more of pork and poultry will be needed by 2030. This means 110 million metric tons more of soybean meal, 140 million metric tons of soybeans, and 62 million hectares of land to grow these additional crops.
"Not only can we not add land fast enough to meet this rapid rise in demand, but it would place a significant burden on our natural resources," he said. "So how do you produce more soybeans?
"I think the answer lies in more research and technical change. Improvements in yield, technologies to reduce input use, and increases in livestock feed efficiency will be critical to meeting future demand while improving the productivity of agricultural inputs and reducing the load on environmental resources."
The Global Food in 3-D model can be used to demonstrate and understand how demand has changed for commodities and where production has been and is going. Poultry, for example, was a commodity largely consumed during the 1960s in the Caribbean, North America, and Europe. By 2007, new countries in other areas of the world were becoming major consumers and a radically different pattern emerged.
"In terms of consumption, poultry was until the 1990s largely a U.S. business," said Goldsmith. "After that, Brazil and China have become major players. China now consumes more poultry than the United States and is projected to consume 40 percent more poultry than the United States by 2030. Where will the grain to feed this poultry come from? This demand is placing a tremendous stress on crop production even without using crops for fuel."
The model allows users to make comparisons. What are the effects on markets when incomes are rising in Asia and what are the implications for the future?
"We also know that as incomes rise, consumers change their food choices. They go first from rice to meat and then in some countries move to high-end seafood," he said. "Other commodities stay basically flat in some countries. In the United States, for example, dairy consumption doesn't seem to change while the big opportunities for dairy appear to be in South America. But each country, at each point in time, for each foodstuff can be unique and makes generalizations risky. Hence, we felt there was a need for a software tool that employed visualization to help simplify a complex situation."
Asia can't produce the food needed to feed its population, Goldsmith added. "That food will have to come from the western hemisphere. China, once the home of the soybean, is now the world's largest importer of soybeans."
All of these complex and interrelated developments become clearer when moving across the screen with its tables and maps.
Goldsmith noted that the original idea for the model was developed earlier this decade by Steven Sonka, a former director of NSRL and retired professor of agricultural economics, and his then-doctoral student Donna Fisher. They studied how visualization helped managers make better decisions when dealing with complex problems in the future. The Illinois Soybean Association and the Soybean Disease and Biotechnology Center provided support for development of the software.
Source: Peter Goldsmith (217) 244-1706
URBANA - Symptoms of the food-versus-fuel crisis are appearing regularly in the news but the underlying causes--and long-term implications--are poorly understood, said a University of Illinois agricultural economics professor.
"An important component of the food-versus-fuel debate that is not well understood is how increases in wealth for Asian consumers are dramatically affecting the markets for commodities worldwide," said Peter Goldsmith, director of the National Soybean Research Laboratory and an associate professor in the U of I's Department of Agricultural and Consumer Economics.
To help fill that knowledge gap, Goldsmith, Tad Masuda, a postdoctoral researcher, and Barbara Mirel of the University of Michigan have built a 3-D computer model that visually conveys the interrelationship and impacts of income changes around the world on consumption, production, and markets.
"Global Food in 3-D--Version 2" is a Web-based program that will be accessible on a trial basis worldwide to analysts and other interested parties by June.
"It will put the story of food demand at everyone's fingertips," Goldsmith said.
The program deploys three interactive features on the screen--a sidewall, a back wall, and a floor.
On the "side wall," users can graphically display consumption and production data for 15 protein commodities. These can be displayed by country, region, or for the world.
"In the global food system, the production and consumption of commodities are increasingly separate," Goldsmith said. "For example, poultry and pork trade has increased 14 percent to 16 percent per year since 2000, respectively. Brazil is now the largest exporter with Russia and China being the leading importers. The shift in the loci of world poultry and pork production will have larger impacts on underlying feed markets and grain flows."
The "back wall" features country-specific information such as consumption per capita, income elasticities, and population metrics. These data help to demonstrate how income affects consumption.
"The relationship is simple--if I get $1 more in income, I'll not only eat more. If I get significantly more income, I'll eat even more but will shift my consumption to different types of food," he said. "We have that data for every country in the world going back to 1961 and projecting up to 2030."
As a component of the food-versus-fuel debate, there is an economic principle known as "elasticity." Simply defined, this means as incomes move up, food consumption and expenditures change. This is why small increases in income in heavily populated nations like India and China can have major impacts on commodity markets, especially those tied to protein.
"The visualization provided by this program helps one understand this relationship. It provides a vivid demonstration of how the complex system involving income growth, population changes, and food consumption functions," he said.
The "floor" of the model is a map of the world which dynamically reflects changing consumption or production patterns and elasticities over time.
As meat and poultry consumption rises in Asia with increased incomes, a greater demand is triggered for corn and soybeans to feed beef, pork, and poultry. Holding all factors constant, projections indicate that 120 million metric tons more of pork and poultry will be needed by 2030. This means 110 million metric tons more of soybean meal, 140 million metric tons of soybeans, and 62 million hectares of land to grow these additional crops.
"Not only can we not add land fast enough to meet this rapid rise in demand, but it would place a significant burden on our natural resources," he said. "So how do you produce more soybeans?
"I think the answer lies in more research and technical change. Improvements in yield, technologies to reduce input use, and increases in livestock feed efficiency will be critical to meeting future demand while improving the productivity of agricultural inputs and reducing the load on environmental resources."
The Global Food in 3-D model can be used to demonstrate and understand how demand has changed for commodities and where production has been and is going. Poultry, for example, was a commodity largely consumed during the 1960s in the Caribbean, North America, and Europe. By 2007, new countries in other areas of the world were becoming major consumers and a radically different pattern emerged.
"In terms of consumption, poultry was until the 1990s largely a U.S. business," said Goldsmith. "After that, Brazil and China have become major players. China now consumes more poultry than the United States and is projected to consume 40 percent more poultry than the United States by 2030. Where will the grain to feed this poultry come from? This demand is placing a tremendous stress on crop production even without using crops for fuel."
The model allows users to make comparisons. What are the effects on markets when incomes are rising in Asia and what are the implications for the future?
"We also know that as incomes rise, consumers change their food choices. They go first from rice to meat and then in some countries move to high-end seafood," he said. "Other commodities stay basically flat in some countries. In the United States, for example, dairy consumption doesn't seem to change while the big opportunities for dairy appear to be in South America. But each country, at each point in time, for each foodstuff can be unique and makes generalizations risky. Hence, we felt there was a need for a software tool that employed visualization to help simplify a complex situation."
Asia can't produce the food needed to feed its population, Goldsmith added. "That food will have to come from the western hemisphere. China, once the home of the soybean, is now the world's largest importer of soybeans."
All of these complex and interrelated developments become clearer when moving across the screen with its tables and maps.
Goldsmith noted that the original idea for the model was developed earlier this decade by Steven Sonka, a former director of NSRL and retired professor of agricultural economics, and his then-doctoral student Donna Fisher. They studied how visualization helped managers make better decisions when dealing with complex problems in the future. The Illinois Soybean Association and the Soybean Disease and Biotechnology Center provided support for development of the software.
Pig prices hit record in Taiwan
Pig prices have reached a nine-year high - with the animal sold for NT$7,010 per 100 kilograms yesterday (€146.7) -. The cause: more expensive feed, an agriculture official said.
Prices of pigs have been going up at a rapid pace. Just in the bottom half of last year, pigs were sold for NT$4,700 per 100 kilograms (€98.3). In February, prices shot up to NT$6,000 (€125.5), before going up to an average of NT$6,491 (€135.8) for the month of April.
Just over the first few days of May, prices went up to NT$6,886 (€144) and reached NT$7,012 over the weekend, breaking the NT$7,000 level.
Things did not improve much yesterday -- the first trading day of the week after the Monday close of traditional markets island-wide -- as hogs were sold at NT$7,010 per 100 kilograms. The last time pig prices broke the NT$7,000 level was in the summer of 1999, due to a mass culling of pigs in the aftermath of the foot-and-mouth disease that broke out in 1997.
Prices of pigs have been going up at a rapid pace. Just in the bottom half of last year, pigs were sold for NT$4,700 per 100 kilograms (€98.3). In February, prices shot up to NT$6,000 (€125.5), before going up to an average of NT$6,491 (€135.8) for the month of April.
Just over the first few days of May, prices went up to NT$6,886 (€144) and reached NT$7,012 over the weekend, breaking the NT$7,000 level.
Things did not improve much yesterday -- the first trading day of the week after the Monday close of traditional markets island-wide -- as hogs were sold at NT$7,010 per 100 kilograms. The last time pig prices broke the NT$7,000 level was in the summer of 1999, due to a mass culling of pigs in the aftermath of the foot-and-mouth disease that broke out in 1997.
Thursday, May 15, 2008
U.S. poultry could hit EU shelves by October
By Alicia Karapetian on 5/15/2008 for Meatingplace.com
European Commission officials will reportedly propose lifting the ban on U.S. poultry imports so trade can resume by the fall, according to Reuters.
"The Commission will propose changes to EU legislation to eliminate the ban," said Daniel Price, who headed the American delegation to the Transatlantic Economic Council meeting held this week in Brussels.
Officials aim to have trade resume prior to the next TEC meeting in October.
The European Union banned poultry imports from the United States in 1997 owing to the U.S. use of chlorine in processing.
"I can tell you that there is strong support to solve this problem and I am basically optimistic," said EU Industry Commissioner Guenter Verheugen, leader of the European delegation to the TEC meeting.
European Commission officials will reportedly propose lifting the ban on U.S. poultry imports so trade can resume by the fall, according to Reuters.
"The Commission will propose changes to EU legislation to eliminate the ban," said Daniel Price, who headed the American delegation to the Transatlantic Economic Council meeting held this week in Brussels.
Officials aim to have trade resume prior to the next TEC meeting in October.
The European Union banned poultry imports from the United States in 1997 owing to the U.S. use of chlorine in processing.
"I can tell you that there is strong support to solve this problem and I am basically optimistic," said EU Industry Commissioner Guenter Verheugen, leader of the European delegation to the TEC meeting.
Wednesday, May 14, 2008
Canada importing more U.S. pork amid woes
By Tom Johnston on 5/14/2008 for Meatingplace.com
While Canada's pork industry struggles to sustain itself amid rising feed costs, shrinking inventory, declining hog slaughter and fleeing producers, the country's strong currency is resulting, ironically, in increased imports of pork from the United States.
According to a report by USDA's Foreign Agricultural Service, U.S. pork sales to Canada rose 20 percent to 164,334 metric tons in 2007, compared with 137,302 metric tons in 2006. Most of the load consisted of fresh or chilled pork cuts, including back ribs and U.S. prepared pork including pre-packaged sausages.
Demand for U.S. pork in Canada is expected to increase in 2008, reflecting the forecast for lower Canadian pork production and a continued strong Canadian dollar versus the U.S. dollar. Over the January to February period, U.S. pork was up 40 percent over the same period a year ago.
Times are so tough in Canada that its hog farmers are fleeing the industry "at an unprecedented rate," the report said. According to Statistics Canada, the total number of Canadian hog farms on April 1, 2008, fell to 8,820 farms, down 19.3 percent from the level one year earlier.
While Canada's pork industry struggles to sustain itself amid rising feed costs, shrinking inventory, declining hog slaughter and fleeing producers, the country's strong currency is resulting, ironically, in increased imports of pork from the United States.
According to a report by USDA's Foreign Agricultural Service, U.S. pork sales to Canada rose 20 percent to 164,334 metric tons in 2007, compared with 137,302 metric tons in 2006. Most of the load consisted of fresh or chilled pork cuts, including back ribs and U.S. prepared pork including pre-packaged sausages.
Demand for U.S. pork in Canada is expected to increase in 2008, reflecting the forecast for lower Canadian pork production and a continued strong Canadian dollar versus the U.S. dollar. Over the January to February period, U.S. pork was up 40 percent over the same period a year ago.
Times are so tough in Canada that its hog farmers are fleeing the industry "at an unprecedented rate," the report said. According to Statistics Canada, the total number of Canadian hog farms on April 1, 2008, fell to 8,820 farms, down 19.3 percent from the level one year earlier.
China suspends imports from three U.S. meat and poultry plants
By Tom Johnston on 5/13/2008 for Meatingplace.com
USDA's Food Safety and Inspection Service said China has banned imports of meat and poultry from three U.S. protein processing facilities.
Now ineligible to export to China until further notice are products produced or stored at Swift Pork Co., Louisville, Ky.; Mountaire Farms Inc., Lumber Bridge, N.C.; and Meadowbrook Farms Cooperative, Rantoul, Ill.
Meat and poultry products produced at other facilities from raw materials originating from these establishments are also not eligible for export to China.
The latest de-listings brings to 16 the number of U.S. meat and poultry establishments on China's list of ineligible U.S. exporters.
USDA's Food Safety and Inspection Service said China has banned imports of meat and poultry from three U.S. protein processing facilities.
Now ineligible to export to China until further notice are products produced or stored at Swift Pork Co., Louisville, Ky.; Mountaire Farms Inc., Lumber Bridge, N.C.; and Meadowbrook Farms Cooperative, Rantoul, Ill.
Meat and poultry products produced at other facilities from raw materials originating from these establishments are also not eligible for export to China.
The latest de-listings brings to 16 the number of U.S. meat and poultry establishments on China's list of ineligible U.S. exporters.
Pseudorabies Infection Confirmed in Michigan USA
The Michigan Department of Agriculture last week confirmed a pseudrabies infection in 19 sport swine on a privately owned facility in Saginaw County. All of the hogs associated with the facility will be euthanized. USDA Wildlife Services will attempt to capture and destroy feral swine around the facility; those carcasses will be tested for PRV. MDA encourages Michigan residents to shoot feral swine and to notify MDA so additional tests can be conducted.
"We contacted other states, and anticipate some out-of-state markets will impose restrictions on live swine from Michigan until testing proves that this is an isolated case," said Steven Halstead, MDA state veterinarian. "We need to confirm as quickly as possible that the disease has not spread to other farms."
For more, go to www.porkmag.com.
"We contacted other states, and anticipate some out-of-state markets will impose restrictions on live swine from Michigan until testing proves that this is an isolated case," said Steven Halstead, MDA state veterinarian. "We need to confirm as quickly as possible that the disease has not spread to other farms."
For more, go to www.porkmag.com.
Pork and chicken prices to rise in the US
Food inflation is expected in the US as prices for chicken and pork will go up over the next couple of months, Associated Press reports. It is expected that overall food inflation could double this year, initially lifted by the rising costs of fuel, corn and soybeans, some analysts predict.
Food inflation hit 4% last year, up from 2.4% in 2006. While beef prices were already high, chicken and pork prices didn't reflect record costs for feed and fuel. That is about to change as chicken and pig producers who have been losing money slaughter more animals to decrease the supply and raise the prices they can charge.
Industry comments
"American consumers are only just beginning to feel the impact of sharply higher food prices," Pilgrim's Pride CEO Clint Rivers told AP. The largest US chicken producer posted a wider quarterly loss Monday as it paid more for feed and took a restructuring charge.
Tyson Foods, the world's biggest meat producer, forecasts that its expenses will rise $1 billion this year, including $600 million for corn and soybean meal and $100 million on grain. The balance will come from higher prices for cooking oil, breading and fuel costs, the company said. Last week Tyson reported a $5 million second-quarter loss and withdrew its earnings outlook, saying feed prices were too volatile.
"I think food inflation has got to go up," said C. Larry Pope, president and chief executive of Smithfield Foods, the world's largest pork producer, in a recent speech. "Everything that uses wheat, everything that uses corn, everything that uses corn syrup has got to go up."
The exception may be beef, as already high beef prices may not see the increases that chicken and pork could, said Jim Hilker, an agricultural economist at Michigan State University. "I'm not sure beef prices will go up a lot, but they won't come back down."
Pork farm losses
Pork farm losses, though, may total $3.8 billion for 2008, one-quarter of total production, according to Chris Hurt, an agricultural economist at Purdue University. He calls the industry "a financial disaster in progress." The biggest driver to prices is grain costs, which have been affected by the rise in ethanol production and strong export demand due to the weak dollar. Corn costs have more than doubled over the last two years from $2.50 a bushel to $6. That has added $6 billion to chicken farmers' annual feed bills, according to the National Chicken Council, a trade group.
As a result, companies are slaughtering animals to tighten supply. The move will temporarily increase supply, lowering prices, but as farms herds and flocks get smaller, it will raise prices.
Chicken producers
Fieldale Farms, a privately held chicken producer, is cutting its production by 5% starting in the middle of the month. Tom Hinsley, senior vice president, said he expects higher chicken prices by midsummer. "They will have to rise, big-time, otherwise, there will be no chicken," Hinsley said.
Pilgrim's Pride said it plans to reduce weekly chicken processing by 5% in the second half of the year, and keep production down until margins improve. Smithfield said in February that it would slaughter 4% to 5% of its breeding sows.
Food inflation hit 4% last year, up from 2.4% in 2006. While beef prices were already high, chicken and pork prices didn't reflect record costs for feed and fuel. That is about to change as chicken and pig producers who have been losing money slaughter more animals to decrease the supply and raise the prices they can charge.
Industry comments
"American consumers are only just beginning to feel the impact of sharply higher food prices," Pilgrim's Pride CEO Clint Rivers told AP. The largest US chicken producer posted a wider quarterly loss Monday as it paid more for feed and took a restructuring charge.
Tyson Foods, the world's biggest meat producer, forecasts that its expenses will rise $1 billion this year, including $600 million for corn and soybean meal and $100 million on grain. The balance will come from higher prices for cooking oil, breading and fuel costs, the company said. Last week Tyson reported a $5 million second-quarter loss and withdrew its earnings outlook, saying feed prices were too volatile.
"I think food inflation has got to go up," said C. Larry Pope, president and chief executive of Smithfield Foods, the world's largest pork producer, in a recent speech. "Everything that uses wheat, everything that uses corn, everything that uses corn syrup has got to go up."
The exception may be beef, as already high beef prices may not see the increases that chicken and pork could, said Jim Hilker, an agricultural economist at Michigan State University. "I'm not sure beef prices will go up a lot, but they won't come back down."
Pork farm losses
Pork farm losses, though, may total $3.8 billion for 2008, one-quarter of total production, according to Chris Hurt, an agricultural economist at Purdue University. He calls the industry "a financial disaster in progress." The biggest driver to prices is grain costs, which have been affected by the rise in ethanol production and strong export demand due to the weak dollar. Corn costs have more than doubled over the last two years from $2.50 a bushel to $6. That has added $6 billion to chicken farmers' annual feed bills, according to the National Chicken Council, a trade group.
As a result, companies are slaughtering animals to tighten supply. The move will temporarily increase supply, lowering prices, but as farms herds and flocks get smaller, it will raise prices.
Chicken producers
Fieldale Farms, a privately held chicken producer, is cutting its production by 5% starting in the middle of the month. Tom Hinsley, senior vice president, said he expects higher chicken prices by midsummer. "They will have to rise, big-time, otherwise, there will be no chicken," Hinsley said.
Pilgrim's Pride said it plans to reduce weekly chicken processing by 5% in the second half of the year, and keep production down until margins improve. Smithfield said in February that it would slaughter 4% to 5% of its breeding sows.
Uproar in UK over pig remains for poultry
// 13 May 2008
Pig and poultry farmers are not sure if they want an opportunity to cut costs which could be coming their way, reports Yorkshire Post.
The EU is preparing to allow the remains of pig carcasses to be used in poultry feed, which would save UK farmers millions of pounds as cereal prices soar. This, however, has caused uproar. The practice of using pig remains in chicken feed was banned in Europe after the BSE crisis 10 years ago.
Enormous reaction
It has been reported that when the BBC's Farming Today programme reported on one of the possibilities which are now up for discussion again – feeding pig leftovers to hens – the reaction was enormous.
Reportedly, moderate vegetarians said they could not eat eggs from birds fed on meat. Additionally, a spokesperson for 2 mln Muslims in Britain (and 25 million in western Europe) said they could not eat the eggs or the flesh of any bird fed on animal protein of any kind – and it would only make it worse if it was pork.
Some halal butchers once had special sources for suitable chickens and eggs, up until BSE exposed modern farming practices, reports the Yorkshire Post. Now they are good customers for mainstream farm production. However, a change back to the old ways would put them on the spot. And they are not the only customers who might be lost. Most people were horrified to find out about the recycling of slaughterhouse waste to farms before BSE. And a lot of hostility to the practice remains.
More lost than gained
A Yorkshire pig farmer commented this week: "Pigs are omnivores. If you buy pig-meat from outside the EU, it has almost certainly been fed with meat. And it probably makes scientific and economic sense for us to do it. But the danger is that we would lose more than we gained, because of the public reaction." A poultry farmer said much the same about hens.
The jury is still out
According to the National Farmers Union, "We want a level playing field for our members to operate efficiently and competitively. However, the jury is still out. We definitely don't want to turn out products consumers don't want."
The BBC said new rules could apply by the end of this year but that looks unlikely. The EC's Standing Committee on the Food Chain & Animal Health will not consider the issue until it is satisfied that the feed industry has foolproof tests.
The RSPCA's food certification arm, Freedom Food, said it would not approve meat-fed meat. Additionally, the Soil Association said meat-fed meat would not be considered organic.
Pig and poultry farmers are not sure if they want an opportunity to cut costs which could be coming their way, reports Yorkshire Post.
The EU is preparing to allow the remains of pig carcasses to be used in poultry feed, which would save UK farmers millions of pounds as cereal prices soar. This, however, has caused uproar. The practice of using pig remains in chicken feed was banned in Europe after the BSE crisis 10 years ago.
Enormous reaction
It has been reported that when the BBC's Farming Today programme reported on one of the possibilities which are now up for discussion again – feeding pig leftovers to hens – the reaction was enormous.
Reportedly, moderate vegetarians said they could not eat eggs from birds fed on meat. Additionally, a spokesperson for 2 mln Muslims in Britain (and 25 million in western Europe) said they could not eat the eggs or the flesh of any bird fed on animal protein of any kind – and it would only make it worse if it was pork.
Some halal butchers once had special sources for suitable chickens and eggs, up until BSE exposed modern farming practices, reports the Yorkshire Post. Now they are good customers for mainstream farm production. However, a change back to the old ways would put them on the spot. And they are not the only customers who might be lost. Most people were horrified to find out about the recycling of slaughterhouse waste to farms before BSE. And a lot of hostility to the practice remains.
More lost than gained
A Yorkshire pig farmer commented this week: "Pigs are omnivores. If you buy pig-meat from outside the EU, it has almost certainly been fed with meat. And it probably makes scientific and economic sense for us to do it. But the danger is that we would lose more than we gained, because of the public reaction." A poultry farmer said much the same about hens.
The jury is still out
According to the National Farmers Union, "We want a level playing field for our members to operate efficiently and competitively. However, the jury is still out. We definitely don't want to turn out products consumers don't want."
The BBC said new rules could apply by the end of this year but that looks unlikely. The EC's Standing Committee on the Food Chain & Animal Health will not consider the issue until it is satisfied that the feed industry has foolproof tests.
The RSPCA's food certification arm, Freedom Food, said it would not approve meat-fed meat. Additionally, the Soil Association said meat-fed meat would not be considered organic.
Friday, May 9, 2008
Maple Leaf to sell Ontario pork plant
Canadian meat processor Maple Leaf reported last week that the company is 'preparing to sell' its primary pork processing plant in Burlington, Ontario.
This site processes more than 2 million pigs a year.
Maple Leaf lost $10,000 in the first quarter of this year, but officials say a new business plan is on track to improve earnings for the Canadian company. A five-year restructuring will shift the company's focus from primary protein operations to value-added meat and meals.
More closures
The company also envisages to start a second-shift cut operation at its plant in Brandon, Manitoba by September of this year and to close its fresh pork processing plant in Winnipeg.
A large expansion is underway at its Lagimodiere Road plant in Winnipeg, involving consolidation of its value-added ham-boning operations. Also, construction of a new distribution centre in Saskatoon is nearing completion.
This site processes more than 2 million pigs a year.
Maple Leaf lost $10,000 in the first quarter of this year, but officials say a new business plan is on track to improve earnings for the Canadian company. A five-year restructuring will shift the company's focus from primary protein operations to value-added meat and meals.
More closures
The company also envisages to start a second-shift cut operation at its plant in Brandon, Manitoba by September of this year and to close its fresh pork processing plant in Winnipeg.
A large expansion is underway at its Lagimodiere Road plant in Winnipeg, involving consolidation of its value-added ham-boning operations. Also, construction of a new distribution centre in Saskatoon is nearing completion.
Pork, chicken prices may rise in next wave of food inflation
By ELLEN SIMON
AP Business Writer
Americans may be getting another helping of food inflation, and it seems likely to come from higher prices for chicken and pork.
Overall food inflation could double this year, lifted by the rising costs of fuel, corn and soybeans, some analysts predict.
Food inflation hit 4 percent last year, up from 2.4 percent in 2006. While beef prices were already high, chicken and pork prices didn't reflect record costs for feed and fuel. That's poised to change as chicken and pig producers who have been losing money slaughter more animals to decrease the supply and raise the prices they can charge.
Higher food inflation would further challenge shoppers who are already limiting themselves to sale items and store brands as they contend with the worst food inflation since 1990.
Mary Lee Rydzewski, a retired Amtrak engine dispatcher who lives in Cheshire, Conn., says she has already switched to store brands and sale items because of higher food prices. If they increase more, she plans to cut back again. But Karen Leedahl, a pastor who lives in Latrobe, Penn., said she always bought store brands and shopped for sale goods. Two weeks ago, she started walking more than a mile round-trip to the grocery store instead of driving.
If prices increase more, "I'm kind of in trouble," she said. "I was already trying to save."
U.S. shoppers spent 5.8 percent of their income on food in 2006, according to the U.S. Department of Agriculture - a lower proportion than any other nation. In the United Kingdom, consumers spent 8.7 percent of their income on food, and in most of the world it's at least 10 percent.
But the U.S. portion seems certain to rise, as chicken and pig producers say prices have to go up as feed costs increase.
"American consumers are only just beginning to feel the impact of sharply higher food prices," said Pilgrim's Pride Corp. Chief Executive Clint Rivers. The nation's largest chicken producer posted a wider quarterly loss Monday as it paid more for feed and took a restructuring charge.
Tyson Foods Inc., the world's biggest meat producer, forecasts that its expenses will rise $1 billion this year, including $600 million for corn and soybean meal and $100 million on grain. The balance will come from higher prices for cooking oil, breading and fuel costs, the company said. Last week Tyson reported a $5 million second-quarter loss and withdrew its earnings outlook, saying feed prices were too volatile. "I think food inflation has got to go up," said C. Larry Pope, president and chief executive of Smithfield Foods Inc., the world's largest pork producer, in a recent speech. "Everything that uses wheat, everything that uses corn, everything that uses corn syrup has got to go up."
The exception may be beef, as already high beef prices may not see the increases that chicken and pork could, said Jim Hilker, an agricultural economist at Michigan State University. "I'm not sure beef prices will go up a lot, but they won't come back down."
Pork farm losses, though, may total $3.8 billion for 2008, one-quarter of total production, according to Chris Hurt, an agricultural economist at Purdue University. He calls the industry "a financial disaster in progress."
It will be easier for publicly traded meat producers to weather a money-losing quarter than for farmer Bill Tentinger in LeMars, Iowa. Tentinger said he expects to spend $85 per hundredweight feeding his hogs this year; at current levels, they will fetch prices in the mid $40s.
"Take that figure, times 10,000 hogs, and see if you can eat breakfast decent in the morning," said Tentinger, 59.
The biggest driver to prices is grain costs, which have been affected by the rise in ethanol production and strong export demand due to the weak dollar. Corn costs have more than doubled over the last two years from $2.50 a bushel to $6. That has added $6 billion to chicken farmers' annual feed bills, according to the National Chicken Council, a trade group. As a result, companies are slaughtering animals to tighten supply. The move will temporarily increase supply, lowering prices, but as farms herds and flocks get smaller, it will raise prices.
Fieldale Farms Corp., a privately held chicken producer, is cutting its production by 5 percent starting in the middle of the month. Tom Hinsley, senior vice president, said he expects higher chicken prices by midsummer.
"They will have to rise, big-time, otherwise, there will be no chicken," Hinsley said.
Pilgrim's Pride said it plans to reduce weekly chicken processing by 5 percent in the second half of the year, and keep production down until margins improve. Smithfield said in February that it would slaughter 4 percent to 5 percent of its breeding sows.
A smaller breeding population and a wave of expected hog farm failures will boost pork prices by 2009, Hurt predicted. He estimates 6 percent to 8 percent of breeding sows will need to be slaughtered to support prices.
The government is giving pork producers a hand by taking some pork off the market. Agriculture Secretary Ed Schafer last week announced a government plan to buy up to $50 million of pork for child nutrition and domestic food assistance programs - at the urging of the National Pork Producers Council. For Tim Bierman, a third-generation farmer in Larrabee, Iowa, pork price increases can't come soon enough.
Bierman spent a recent morning alternately calling and texting his commodities broker from the seat of his tractor, trying to cut the loss he'll take on his 9,000 pigs by hedging the cost of feed on the futures market.
"We're trying to cover ourselves on the futures, if not to turn a profit, then to lose less than we would if we did nothing," said Bierman, 47.
Meat and poultry executives have also come out against federal ethanol mandates, which they say are driving the cost of corn higher. On Monday, Senate Republicans asked environmental regulators to halt the ethanol expansion plans amid the rising food prices.
The U.S. Department of Agriculture predicts overall food prices could increase another 4 percent to 5 percent in 2008. But consultant Jim Hertel, of Willard Bishop food retail consultants in Barrington, Ill., thinks that high commodity and fuel prices, plus demand from India and China, could push food inflation anywhere from to 7 percent to 10 percent.
Hertel is counseling his grocery store clients on price-increase strategies. One piece of advice - don't make your store brands too cheap. Shoppers who buy them are looking for a 20 percent discount, so stores that price them 30 percent cheaper are losing money.
"We haven't seen hard-core food inflation for 30 years," he said. That's not only a challenge for shoppers, it's a challenge for retailers, he said. "A lot of people who knew what to do, who learned their lessons in the late 70s or early 80s, they're retired at this point, if they're lucky."
AP Business Writer
Americans may be getting another helping of food inflation, and it seems likely to come from higher prices for chicken and pork.
Overall food inflation could double this year, lifted by the rising costs of fuel, corn and soybeans, some analysts predict.
Food inflation hit 4 percent last year, up from 2.4 percent in 2006. While beef prices were already high, chicken and pork prices didn't reflect record costs for feed and fuel. That's poised to change as chicken and pig producers who have been losing money slaughter more animals to decrease the supply and raise the prices they can charge.
Higher food inflation would further challenge shoppers who are already limiting themselves to sale items and store brands as they contend with the worst food inflation since 1990.
Mary Lee Rydzewski, a retired Amtrak engine dispatcher who lives in Cheshire, Conn., says she has already switched to store brands and sale items because of higher food prices. If they increase more, she plans to cut back again. But Karen Leedahl, a pastor who lives in Latrobe, Penn., said she always bought store brands and shopped for sale goods. Two weeks ago, she started walking more than a mile round-trip to the grocery store instead of driving.
If prices increase more, "I'm kind of in trouble," she said. "I was already trying to save."
U.S. shoppers spent 5.8 percent of their income on food in 2006, according to the U.S. Department of Agriculture - a lower proportion than any other nation. In the United Kingdom, consumers spent 8.7 percent of their income on food, and in most of the world it's at least 10 percent.
But the U.S. portion seems certain to rise, as chicken and pig producers say prices have to go up as feed costs increase.
"American consumers are only just beginning to feel the impact of sharply higher food prices," said Pilgrim's Pride Corp. Chief Executive Clint Rivers. The nation's largest chicken producer posted a wider quarterly loss Monday as it paid more for feed and took a restructuring charge.
Tyson Foods Inc., the world's biggest meat producer, forecasts that its expenses will rise $1 billion this year, including $600 million for corn and soybean meal and $100 million on grain. The balance will come from higher prices for cooking oil, breading and fuel costs, the company said. Last week Tyson reported a $5 million second-quarter loss and withdrew its earnings outlook, saying feed prices were too volatile. "I think food inflation has got to go up," said C. Larry Pope, president and chief executive of Smithfield Foods Inc., the world's largest pork producer, in a recent speech. "Everything that uses wheat, everything that uses corn, everything that uses corn syrup has got to go up."
The exception may be beef, as already high beef prices may not see the increases that chicken and pork could, said Jim Hilker, an agricultural economist at Michigan State University. "I'm not sure beef prices will go up a lot, but they won't come back down."
Pork farm losses, though, may total $3.8 billion for 2008, one-quarter of total production, according to Chris Hurt, an agricultural economist at Purdue University. He calls the industry "a financial disaster in progress."
It will be easier for publicly traded meat producers to weather a money-losing quarter than for farmer Bill Tentinger in LeMars, Iowa. Tentinger said he expects to spend $85 per hundredweight feeding his hogs this year; at current levels, they will fetch prices in the mid $40s.
"Take that figure, times 10,000 hogs, and see if you can eat breakfast decent in the morning," said Tentinger, 59.
The biggest driver to prices is grain costs, which have been affected by the rise in ethanol production and strong export demand due to the weak dollar. Corn costs have more than doubled over the last two years from $2.50 a bushel to $6. That has added $6 billion to chicken farmers' annual feed bills, according to the National Chicken Council, a trade group. As a result, companies are slaughtering animals to tighten supply. The move will temporarily increase supply, lowering prices, but as farms herds and flocks get smaller, it will raise prices.
Fieldale Farms Corp., a privately held chicken producer, is cutting its production by 5 percent starting in the middle of the month. Tom Hinsley, senior vice president, said he expects higher chicken prices by midsummer.
"They will have to rise, big-time, otherwise, there will be no chicken," Hinsley said.
Pilgrim's Pride said it plans to reduce weekly chicken processing by 5 percent in the second half of the year, and keep production down until margins improve. Smithfield said in February that it would slaughter 4 percent to 5 percent of its breeding sows.
A smaller breeding population and a wave of expected hog farm failures will boost pork prices by 2009, Hurt predicted. He estimates 6 percent to 8 percent of breeding sows will need to be slaughtered to support prices.
The government is giving pork producers a hand by taking some pork off the market. Agriculture Secretary Ed Schafer last week announced a government plan to buy up to $50 million of pork for child nutrition and domestic food assistance programs - at the urging of the National Pork Producers Council. For Tim Bierman, a third-generation farmer in Larrabee, Iowa, pork price increases can't come soon enough.
Bierman spent a recent morning alternately calling and texting his commodities broker from the seat of his tractor, trying to cut the loss he'll take on his 9,000 pigs by hedging the cost of feed on the futures market.
"We're trying to cover ourselves on the futures, if not to turn a profit, then to lose less than we would if we did nothing," said Bierman, 47.
Meat and poultry executives have also come out against federal ethanol mandates, which they say are driving the cost of corn higher. On Monday, Senate Republicans asked environmental regulators to halt the ethanol expansion plans amid the rising food prices.
The U.S. Department of Agriculture predicts overall food prices could increase another 4 percent to 5 percent in 2008. But consultant Jim Hertel, of Willard Bishop food retail consultants in Barrington, Ill., thinks that high commodity and fuel prices, plus demand from India and China, could push food inflation anywhere from to 7 percent to 10 percent.
Hertel is counseling his grocery store clients on price-increase strategies. One piece of advice - don't make your store brands too cheap. Shoppers who buy them are looking for a 20 percent discount, so stores that price them 30 percent cheaper are losing money.
"We haven't seen hard-core food inflation for 30 years," he said. That's not only a challenge for shoppers, it's a challenge for retailers, he said. "A lot of people who knew what to do, who learned their lessons in the late 70s or early 80s, they're retired at this point, if they're lucky."
Wednesday, May 7, 2008
Philippine Pork and Chicken Price Changes Differ
THE PHILIPPINES - According to ABS-CBN, while the price of pork goes down, chicken prices take a leap.
Chicken prices are expected to go up as the summer heat intensifies.
According to the Philippine Association of Broilers and Integrators (PABI), hot weather affects the physical growth of chickens, while some are hit by heatstroke.
Chicken growers, however, said the prevailing price in the market should still be P120 per kilo. They said that there is still enough supply in the market even if May has the biggest demand during the year. Farmgate prices also have not changed.
Chicken prices are expected to go up as the summer heat intensifies.
According to the Philippine Association of Broilers and Integrators (PABI), hot weather affects the physical growth of chickens, while some are hit by heatstroke.
Chicken growers, however, said the prevailing price in the market should still be P120 per kilo. They said that there is still enough supply in the market even if May has the biggest demand during the year. Farmgate prices also have not changed.
Tests find MRSA bacteria in German piggeries
from PigProgress.net
MRSA was found in 28 out of 40 of the pig farms checked in North Rhine Westphalia state, the state farm services bureau in Bonn said.
The bacteria was found in about 70% of the animals; the infected pigs were healthy.
Revelations in the Netherlands
Tests were ordered after it was discovered that the germs are widespread in Dutch piggeries, as early as 2003. Ever since, similar tests to MRSA in piggeries have also been performed in Belgium, the UK and Canada.
German federal health officials advised that consumers should cook pork thoroughly to avoid possible infections.
Documentary
MRSA, a problem in hospitals around the globe, was first detected in animals in 1972. A PlusMinus documentary on MRSA, to be broadcasted this week in Germany, says 35,000 patients catch the bacteria every year in German hospitals. Approximately 1,500 die of it.
Ordinary staphylococcus bacteria are found on most people's skin. It usually only causes sores and other illnesses when immunity is low.
The documentary said 39 of 122 farm workers in one sample had caught the resistant form, possibly from the pigs. Methicillin resistance arises when some of the toughest bacteria survive courses of antibiotics administered to humans or animals.
Tuesday, May 6, 2008
Gov’t lifts import ban on Australian feed
By Amy R. Remo
Philippine Daily Inquirer
First Posted 03:17am (Mla time) 05/06/2008
MANILA, Philippines-- The Department of Agriculture has lifted the ban on importation of meat and bone meal (MBM) feed from Australia.
Agriculture Secretary Arthur Yap recently issued the directive after the Paris-based Office International des Epizooties (OIE) recognized Australia as free of the Bovine Spongiform Encephalopathy (BSE).
BSE, or mad cow disease, is a transmissible and fatal brain ailment afflicting cattle.
Yap said the steps taken by Australian food and health authorities in ensuring the safety of their MBM exports had proven to be satisfactory.
He said MBM feed and other products are regulated and verified by the Australian Quarantine and Inspection Service.
These products are also processed under the Australian Standard for Hygienic Rendering of Animal Products prior to their export.
“The Australian Standard used in Australian MBM, meat meal, bone meal, blood meal, feather meal, poultry meal, poultry by-product meal, tallow, poultry oil and fish meal production is designed to eliminate pathogens relevant to Australia and prevent recontamination of processed rendered products,” Yap said.
Australia exports MBM to Indonesia, Canada, the United States, European Union, Malaysia, South Africa, China, Mexico, Papua New Guinea, Sri Lanka, Thailand and Vietnam.
The Philippines had imposed the ban on fears that BSE could be the cause of a new variant of the Creutzfeldt-Jakob disease, a brain-wasting illness afflicting humans.
In his directive, Yap said cattle meat and MBM should still not be fed to ruminants, such as cattle, sheep, deer and goats.
This move was recommended during a joint meeting of the OIE, Food and Agriculture Organization (FAO) and the World Health Organization in 2001.
Philippine Daily Inquirer
First Posted 03:17am (Mla time) 05/06/2008
MANILA, Philippines-- The Department of Agriculture has lifted the ban on importation of meat and bone meal (MBM) feed from Australia.
Agriculture Secretary Arthur Yap recently issued the directive after the Paris-based Office International des Epizooties (OIE) recognized Australia as free of the Bovine Spongiform Encephalopathy (BSE).
BSE, or mad cow disease, is a transmissible and fatal brain ailment afflicting cattle.
Yap said the steps taken by Australian food and health authorities in ensuring the safety of their MBM exports had proven to be satisfactory.
He said MBM feed and other products are regulated and verified by the Australian Quarantine and Inspection Service.
These products are also processed under the Australian Standard for Hygienic Rendering of Animal Products prior to their export.
“The Australian Standard used in Australian MBM, meat meal, bone meal, blood meal, feather meal, poultry meal, poultry by-product meal, tallow, poultry oil and fish meal production is designed to eliminate pathogens relevant to Australia and prevent recontamination of processed rendered products,” Yap said.
Australia exports MBM to Indonesia, Canada, the United States, European Union, Malaysia, South Africa, China, Mexico, Papua New Guinea, Sri Lanka, Thailand and Vietnam.
The Philippines had imposed the ban on fears that BSE could be the cause of a new variant of the Creutzfeldt-Jakob disease, a brain-wasting illness afflicting humans.
In his directive, Yap said cattle meat and MBM should still not be fed to ruminants, such as cattle, sheep, deer and goats.
This move was recommended during a joint meeting of the OIE, Food and Agriculture Organization (FAO) and the World Health Organization in 2001.
Singapore okays RP pork exports
GENERAL SANTOS CITY — Singapore has finally approved the country’s bid to export pork by accrediting a local firm, National Meat Inspection Service (NMIS) officials yesterday said.
Jane C. Bacayo, NMIS executive director, said Matutum Meat Packing Corp. had been given the green light to ship frozen pork meat by the Agri-Food and Veterinary Authority of Singapore (AVA).
A check with AVA’s website showed that as of last April 28, the list of countries approved to export beef, mutton, pork and poultry to Singapore included the Philippines with one pork exporter.
Matutum Meat, based in Polomolok in South Cotabato province, was one of two Mindanao firms earlier identified by the Department of Agriculture to pioneer the country’s foray into the pork export market. The other one is the Davao City-based Nenita’s Quality Foods Corp., which ceased to operate last year.
Ma. Elizabeth D. Callanta, NMIS export coordinator, said the private sector would embark on a trade mission to Singapore to discuss arrangements with meat dealers there.
"We hope that we can start exporting pork meat parts to Singapore next month with Matutum Meat taking the lead," she said.
Ms. Callanta said Nenita’s application to export pork meat products to Singapore had not yet been approved as there were corrective actions that needed to be done.
"Also, there are changes in the management of Nenita’s. But we have not withdrawn its bid for accreditation," she said.
Recent reports have said that a cooperative of local pork producers were currently leasing Nenita’s’ meat processing facilities in Davao City’s Marapangi district.
Singaporean food and veterinary experts inspected the facilities of Matutum Meat last January but did not issue a clearance due to concerns over antibiotic residues in the meat. They also told the firm to comply with requirements such as tire disinfectant for vehicles and the chlorination of the water used to wash the meat.
Matutum Meat, a sister firm of Cebu-based Sunpride Foods, Inc. which produces Holiday and Sunpride canned goods, has invested around P200 million for its Polomolok facility.
Mindanao was chosen by the government to spearhead the country’s pork exports since it is certified as free from foot-and-mouth disease.
Agriculture Secretary Arthur C. Yap originally targeted foreign pork shipments to start in July 2007.
Jane C. Bacayo, NMIS executive director, said Matutum Meat Packing Corp. had been given the green light to ship frozen pork meat by the Agri-Food and Veterinary Authority of Singapore (AVA).
A check with AVA’s website showed that as of last April 28, the list of countries approved to export beef, mutton, pork and poultry to Singapore included the Philippines with one pork exporter.
Matutum Meat, based in Polomolok in South Cotabato province, was one of two Mindanao firms earlier identified by the Department of Agriculture to pioneer the country’s foray into the pork export market. The other one is the Davao City-based Nenita’s Quality Foods Corp., which ceased to operate last year.
Ma. Elizabeth D. Callanta, NMIS export coordinator, said the private sector would embark on a trade mission to Singapore to discuss arrangements with meat dealers there.
"We hope that we can start exporting pork meat parts to Singapore next month with Matutum Meat taking the lead," she said.
Ms. Callanta said Nenita’s application to export pork meat products to Singapore had not yet been approved as there were corrective actions that needed to be done.
"Also, there are changes in the management of Nenita’s. But we have not withdrawn its bid for accreditation," she said.
Recent reports have said that a cooperative of local pork producers were currently leasing Nenita’s’ meat processing facilities in Davao City’s Marapangi district.
Singaporean food and veterinary experts inspected the facilities of Matutum Meat last January but did not issue a clearance due to concerns over antibiotic residues in the meat. They also told the firm to comply with requirements such as tire disinfectant for vehicles and the chlorination of the water used to wash the meat.
Matutum Meat, a sister firm of Cebu-based Sunpride Foods, Inc. which produces Holiday and Sunpride canned goods, has invested around P200 million for its Polomolok facility.
Mindanao was chosen by the government to spearhead the country’s pork exports since it is certified as free from foot-and-mouth disease.
Agriculture Secretary Arthur C. Yap originally targeted foreign pork shipments to start in July 2007.
Bird flu spreads to South Korean capital
SEOUL - Bird flu has spread to South Korea's capital Seoul despite a massive nationwide cull that saw the slaughter of six million ducks and chickens, officials said Tuesday.
The agriculture ministry said a case was reported at a small aviary run by Gwangjin district officials in eastern Seoul.
"This was the first outbreak in Seoul. We believe it has been caused by infected pheasants that district officials purchased at an open market in the city of Seongnam south of Seoul," a ministry official told AFP.
All 53 chickens, turkeys and pheasants at the aviary were slaughtered Monday night, with quarantine officials decontaminating a nearby public park and open markets.
"Initial blood tests showed pheasants and chickens were infected with bird flu, although the type of the virus is not yet known," he said.
"Health officials are conducting blood tests to determine whether it was caused by the virulent H5N1 strain."
More than six million chickens and ducks have been slaughtered since the country's latest outbreak was reported on April 1, the ministry said.
South Korea's previous outbreak was between November 2006 and March last year, resulting in the temporary suspension of poultry exports to Japan, Hong Kong, Taiwan and elsewhere.
The H5N1 strain has killed more than 240 people worldwide since late 2003. No South Koreans are known to have contracted the disease.
The agriculture ministry said a case was reported at a small aviary run by Gwangjin district officials in eastern Seoul.
"This was the first outbreak in Seoul. We believe it has been caused by infected pheasants that district officials purchased at an open market in the city of Seongnam south of Seoul," a ministry official told AFP.
All 53 chickens, turkeys and pheasants at the aviary were slaughtered Monday night, with quarantine officials decontaminating a nearby public park and open markets.
"Initial blood tests showed pheasants and chickens were infected with bird flu, although the type of the virus is not yet known," he said.
"Health officials are conducting blood tests to determine whether it was caused by the virulent H5N1 strain."
More than six million chickens and ducks have been slaughtered since the country's latest outbreak was reported on April 1, the ministry said.
South Korea's previous outbreak was between November 2006 and March last year, resulting in the temporary suspension of poultry exports to Japan, Hong Kong, Taiwan and elsewhere.
The H5N1 strain has killed more than 240 people worldwide since late 2003. No South Koreans are known to have contracted the disease.
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