Russian Prime Minister Vladimir Putin has announced that imports from 19 US chicken plants will be banned.
It has been reported that the chicken plants will no longer be allowed to export chicken products to Russia because they ignored warnings from Russian inspectors who examined poultry companies in 2007.
It was also reported that another 29 US plants would receive warnings.
Monday, September 1, 2008
Series of poultry products in Maple Leaf recall
The list of products that was recalled from the Canadian company Maple Leaf Foods this week contains several poultry products, marketed in different brands.
The Canadian food processor recalled all its products made at the Toronto plant, manufactured from January 2008, since a link has been determined between a strain of Listeria bacteria found at one of Maple Leaf's plants outside of Toronto. The strain caused illness and at least 15 people to lose their lives, after which the plant itself was temporarily closed down.
The product recall list includes chicken and turkey products under the Maple Leaf brand, but also under various other brand names, like Artisan Collection, Bittners/Schneiders, Compliments, Deli Gourmet, Generic, McDonald's and Schneiders. A full list of recalled products can be found here.
Responsibility
The Canadian food processor took full responsibility for the outbreak, which is thought to have been caused by a shipment of bad ready-to-eat meat products. Maple Leaf says it has no evidence that the bacteria could have spread beyond two initial lines that were identified as being linked to affected product.
Recall
The recall began on 17 August when the company announced it was recalling beef products due to Listeria contamination. The recall was expanded on 20 August to various other processed meat products.
Two days later, the Canadian Food Inspection Agency and Public Health Agency of Canada concluded that the strain of Listeria found in the first two beef products matched the strain involved in two cases of food-borne illness. As a result, Maple Leaf Foods expanded the recall once more, now including all products produced at the plant.
Sympathy
Maple Leaf sent out press releases recently and offered 'deep and sincere sympathy to those who are ill, or who have lost loved ones, on behalf of the 23,000 people of Maple Leaf Foods who live a culture of food safety'.
It is expected that the number of confirmed and suspected cases will continue to increase over the next several weeks. It is estimated that the recall will cost the approx. CAN$20 mln (US$19 mln), which will be primarily incurred for the reimbursement for returned products. Financial losses however are thought to turn out larger, since the company has become the target of a class action lawsuit.
The Canadian food processor recalled all its products made at the Toronto plant, manufactured from January 2008, since a link has been determined between a strain of Listeria bacteria found at one of Maple Leaf's plants outside of Toronto. The strain caused illness and at least 15 people to lose their lives, after which the plant itself was temporarily closed down.
The product recall list includes chicken and turkey products under the Maple Leaf brand, but also under various other brand names, like Artisan Collection, Bittners/Schneiders, Compliments, Deli Gourmet, Generic, McDonald's and Schneiders. A full list of recalled products can be found here.
Responsibility
The Canadian food processor took full responsibility for the outbreak, which is thought to have been caused by a shipment of bad ready-to-eat meat products. Maple Leaf says it has no evidence that the bacteria could have spread beyond two initial lines that were identified as being linked to affected product.
Recall
The recall began on 17 August when the company announced it was recalling beef products due to Listeria contamination. The recall was expanded on 20 August to various other processed meat products.
Two days later, the Canadian Food Inspection Agency and Public Health Agency of Canada concluded that the strain of Listeria found in the first two beef products matched the strain involved in two cases of food-borne illness. As a result, Maple Leaf Foods expanded the recall once more, now including all products produced at the plant.
Sympathy
Maple Leaf sent out press releases recently and offered 'deep and sincere sympathy to those who are ill, or who have lost loved ones, on behalf of the 23,000 people of Maple Leaf Foods who live a culture of food safety'.
It is expected that the number of confirmed and suspected cases will continue to increase over the next several weeks. It is estimated that the recall will cost the approx. CAN$20 mln (US$19 mln), which will be primarily incurred for the reimbursement for returned products. Financial losses however are thought to turn out larger, since the company has become the target of a class action lawsuit.
Friday, August 29, 2008
Putin says Russia will ban imports from 19 U.S. chicken plants
By Janie Gabbett on 8/29/2008
of MeatingPlace.com
Prime Minister Vladimir Putin said on Thursday Russia will ban imports from 19 U.S. chicken plants, which he did not name, according to media reports.
Putin told CNN that 19 U.S. chicken plants will be barred from exporting to Russian because they ignored warnings from Russian inspectors who examined poultry companies last year and that another 29 U.S. plants would receive warnings.
Russia's agriculture minister on Wednesday was quoted as saying that the country would slash imports of pork and poultry dramatically, a message that sent stocks of meat processing companies down. (See Russia considers cuts on poultry, pork import quotas on Meatingplace.com, August 28, 2008.)
Both the U.S. poultry and pork industries have been aided by strong exports to a number of markets, including Russia, this year.
Putin said the move had nothing to do with tension over the recent war in Georgia, but U.S. industry observers may see it differently.
"There has been an escalation of rhetoric from Russia regarding US chicken and pork exports at least in part reflecting Russia's retaliation for the US's response to the conflict between Russia and Georgia," BMO Capital Markets Analyst Kenneth Zaslow wrote in a note to investors after the agricultural minister's warning about cutting quotas.
Zaslow expects U.S. pork and poultry exports to Russia to decline over the next six months, but sees the situation as temporary, since Russia does not yet have the production capacity to replace the import volumes.
of MeatingPlace.com
Prime Minister Vladimir Putin said on Thursday Russia will ban imports from 19 U.S. chicken plants, which he did not name, according to media reports.
Putin told CNN that 19 U.S. chicken plants will be barred from exporting to Russian because they ignored warnings from Russian inspectors who examined poultry companies last year and that another 29 U.S. plants would receive warnings.
Russia's agriculture minister on Wednesday was quoted as saying that the country would slash imports of pork and poultry dramatically, a message that sent stocks of meat processing companies down. (See Russia considers cuts on poultry, pork import quotas on Meatingplace.com, August 28, 2008.)
Both the U.S. poultry and pork industries have been aided by strong exports to a number of markets, including Russia, this year.
Putin said the move had nothing to do with tension over the recent war in Georgia, but U.S. industry observers may see it differently.
"There has been an escalation of rhetoric from Russia regarding US chicken and pork exports at least in part reflecting Russia's retaliation for the US's response to the conflict between Russia and Georgia," BMO Capital Markets Analyst Kenneth Zaslow wrote in a note to investors after the agricultural minister's warning about cutting quotas.
Zaslow expects U.S. pork and poultry exports to Russia to decline over the next six months, but sees the situation as temporary, since Russia does not yet have the production capacity to replace the import volumes.
Canadian pig numbers continue to fall
The latest Canadian livestock census, published in August, shows a continuing decline in the pork industry, with the number of farms with pigs falling 19% between July 2007 and the same month in 2008.
Biggest losers were the western provinces of Saskatchewan, with a 30% reduction and Alberta with 24%. There were 11.6% fewer pigs in total, although the number of breeding pigs fell by just 4.6%.
The figures also reflect an increasing trend towards shipping weaned pigs or feeder pigs to the USA, with finishing pigs over 60 kg down by 15%. However, following a record first quarter for live exports, when an estimated 2.9 million pigs moved to the USA, the second quarter numbers were put at 2.2 million by Statistics Canada.
Incentive
The drop in breeding pig numbers was lower than expected, bearing in mind the financial incentive to reduce the national herd size provided by the federal Cull Breeding Swine programme.
Producers who depopulate breeding barns and agree to leave them empty for three years qualify for payments of CAN$225 per culled animal.
After the programme was launched in April, uptake was good and by July had passed 100,000 but, since then, interest seems to have been lower. Martin Rice, executive director of the Canadian Pork Council, which administers the scheme, believes the key element that has discouraged participation is the obligation to leave the barn closed for three years.
Less attractive
"As well, improved returns over the past few months through the commercial market have made the $225 payout, with its conditions, less attractive," he says. He notes that many producers are reducing their numbers without going through the programme and without emptying entire barns or obligating themselves to leave space empty.
The objective of the programme is to reduce breeding stock numbers by about 150,000 sows, or 10% of the national herd, but it seems likely that the eventual figure will be nearer to 120,000.
Human food chain
Carcasses from the culled animals have to be kept out of the human food chain, both in the domestic and export markets. However, concerned about the public reaction to destroying perfectly good pork, and in response to producer comments, provincial pork organisations persuaded the federal government to allow the meat to be donated to local food banks.
For example, in Saskatchewan, about 2,000 sows were diverted from the cull programme and processed to produce 500 thousand pounds of meat, which went to food banks across the province as well as associated agencies.
The $440,000 cost of processing was borne by the provincial government. Similar schemes have been initiated in Alberta, Manitoba, Ontario and Quebec.
Biggest losers were the western provinces of Saskatchewan, with a 30% reduction and Alberta with 24%. There were 11.6% fewer pigs in total, although the number of breeding pigs fell by just 4.6%.
The figures also reflect an increasing trend towards shipping weaned pigs or feeder pigs to the USA, with finishing pigs over 60 kg down by 15%. However, following a record first quarter for live exports, when an estimated 2.9 million pigs moved to the USA, the second quarter numbers were put at 2.2 million by Statistics Canada.
Incentive
The drop in breeding pig numbers was lower than expected, bearing in mind the financial incentive to reduce the national herd size provided by the federal Cull Breeding Swine programme.
Producers who depopulate breeding barns and agree to leave them empty for three years qualify for payments of CAN$225 per culled animal.
After the programme was launched in April, uptake was good and by July had passed 100,000 but, since then, interest seems to have been lower. Martin Rice, executive director of the Canadian Pork Council, which administers the scheme, believes the key element that has discouraged participation is the obligation to leave the barn closed for three years.
Less attractive
"As well, improved returns over the past few months through the commercial market have made the $225 payout, with its conditions, less attractive," he says. He notes that many producers are reducing their numbers without going through the programme and without emptying entire barns or obligating themselves to leave space empty.
The objective of the programme is to reduce breeding stock numbers by about 150,000 sows, or 10% of the national herd, but it seems likely that the eventual figure will be nearer to 120,000.
Human food chain
Carcasses from the culled animals have to be kept out of the human food chain, both in the domestic and export markets. However, concerned about the public reaction to destroying perfectly good pork, and in response to producer comments, provincial pork organisations persuaded the federal government to allow the meat to be donated to local food banks.
For example, in Saskatchewan, about 2,000 sows were diverted from the cull programme and processed to produce 500 thousand pounds of meat, which went to food banks across the province as well as associated agencies.
The $440,000 cost of processing was borne by the provincial government. Similar schemes have been initiated in Alberta, Manitoba, Ontario and Quebec.
Thursday, August 28, 2008
Russia considers cuts on poultry, pork import quotas
By Janie Gabbett on 8/28/2008
of MeatingPlace.com
Russia is contemplating reducing its poultry and pork import quotas by hundreds of thousands of tons, the country's agriculture minister was quoted as saying Wednesday.
"It is time to change the quota regime and reduce imports, which have unfortunately built up in recent years," Alexei Gordeyev told reporters, according to the ITAR-Tass news agency.
Referring to the current quota agreements, Gordeyev said, "Agreements, signed more than three years ago as part of the negotiations on WTO accession, are unfortunately no longer in Russia's interests." Gordeyev's statement comes amid heightened tensions between Moscow and Washington over the war in ex-Soviet Georgia.
Poultry impact
While causing a lot of frantic phone calls over the past 24-hours, Gordeyev's comments so far have not been followed by any government-to-government discussions about reducing the quotas, U.S. Poultry and Egg Export Council (USAPEEC) President James Sumner told Meatingplace.com.
That said, just a month ago, USAPEEC and the Russian Poultry Meat Market Operators Association agreed in principle to reduce the 2009 U.S. tariff quota from 931,500 tons to 750,000 tons. (See Russia to cut tariff quotas on U.S. poultry imports on Meatingplace.com, July 29, 2008.)
"Our office in Moscow thinks it fortuitous we had these discussions. The (U.S. poultry) industry is already anticipating a decrease in exports to Russia," said Sumner, noting that Russia has been increasing its poultry production by 16 to 17 percent annually in recent years. Currently, Russia is the largest export market for U.S. chicken, accounting for over 25 percent of exports.
Pork impact
Russia also has been cited as an important and growing export market for U.S. pork.
The U.S. Meat Export Federation lists Russia as the fourth largest export market for U.S. pork. In the first six months of 2008, U.S. pork exports to Russia totaled 75,730 metric tons, up 143 percent in volume from the first six months of 2007.
Smithfield Foods CEO Larry Pope cited Russia Tuesday as one of the key growing markets that has helped boost the company's fresh pork sales. At a time when there is a large domestic supply of pork, strong and growing exports have been critical to keeping U.S. pork prices afloat.
of MeatingPlace.com
Russia is contemplating reducing its poultry and pork import quotas by hundreds of thousands of tons, the country's agriculture minister was quoted as saying Wednesday.
"It is time to change the quota regime and reduce imports, which have unfortunately built up in recent years," Alexei Gordeyev told reporters, according to the ITAR-Tass news agency.
Referring to the current quota agreements, Gordeyev said, "Agreements, signed more than three years ago as part of the negotiations on WTO accession, are unfortunately no longer in Russia's interests." Gordeyev's statement comes amid heightened tensions between Moscow and Washington over the war in ex-Soviet Georgia.
Poultry impact
While causing a lot of frantic phone calls over the past 24-hours, Gordeyev's comments so far have not been followed by any government-to-government discussions about reducing the quotas, U.S. Poultry and Egg Export Council (USAPEEC) President James Sumner told Meatingplace.com.
That said, just a month ago, USAPEEC and the Russian Poultry Meat Market Operators Association agreed in principle to reduce the 2009 U.S. tariff quota from 931,500 tons to 750,000 tons. (See Russia to cut tariff quotas on U.S. poultry imports on Meatingplace.com, July 29, 2008.)
"Our office in Moscow thinks it fortuitous we had these discussions. The (U.S. poultry) industry is already anticipating a decrease in exports to Russia," said Sumner, noting that Russia has been increasing its poultry production by 16 to 17 percent annually in recent years. Currently, Russia is the largest export market for U.S. chicken, accounting for over 25 percent of exports.
Pork impact
Russia also has been cited as an important and growing export market for U.S. pork.
The U.S. Meat Export Federation lists Russia as the fourth largest export market for U.S. pork. In the first six months of 2008, U.S. pork exports to Russia totaled 75,730 metric tons, up 143 percent in volume from the first six months of 2007.
Smithfield Foods CEO Larry Pope cited Russia Tuesday as one of the key growing markets that has helped boost the company's fresh pork sales. At a time when there is a large domestic supply of pork, strong and growing exports have been critical to keeping U.S. pork prices afloat.
China: recent pork prices drop
http://www.pigprogress.net/home/id1602-64416/china_recent_pork_prices_drop.html
Retail prices of pork in China fell 0.28% in the week ending August 22. According to the National Development and Reform Commission (NDRC), the prices dropped to an average of 14.23 yuan ($US2.08) per 500 grams.
Easing pork prices
Pork prices have been easing since reaching a peak of 14.8 yuan in the week of February 4.
Slight price increase for meat, chicken and eggs
Reports state that beef, chicken and egg prices rose slightly in the latest week, while mutton prices were down.
Food costs, which make up a third of the consumer price index and have added onto inflation, ascended 14.4% from a year earlier in July, compared with 17.3% in the year to June.
China's economic planning agency, the NDRC, surveys retail prices in 36 major cities.
Retail prices of pork in China fell 0.28% in the week ending August 22. According to the National Development and Reform Commission (NDRC), the prices dropped to an average of 14.23 yuan ($US2.08) per 500 grams.
Easing pork prices
Pork prices have been easing since reaching a peak of 14.8 yuan in the week of February 4.
Slight price increase for meat, chicken and eggs
Reports state that beef, chicken and egg prices rose slightly in the latest week, while mutton prices were down.
Food costs, which make up a third of the consumer price index and have added onto inflation, ascended 14.4% from a year earlier in July, compared with 17.3% in the year to June.
China's economic planning agency, the NDRC, surveys retail prices in 36 major cities.
Saturday, August 23, 2008
Food prices to post biggest rise since 1990: USDA
By Christopher Doering via http://news.yahoo.com/s/nm/food_prices_usda_dc
Wed Aug 20, 5:43 PM ET
WASHINGTON (Reuters) - U.S. consumers should brace for the biggest increase in food prices in nearly 20 years in 2008 and even more pain next year due to surging meat and produce prices, the Agriculture Department said on Wednesday.
Food prices are forecast to rise by 5 percent to 6 percent this year, making it the largest annual increase since 1990. Just last month, USDA forecast food prices would climb between 4.5 and 5.5 percent in 2008.
"It's a little bit of a surprise how strong some of the numbers were in July," USDA economist Ephraim Leibtag, who prepared the forecast, said in an interview.
"We've been waiting for some moderation, but especially with some of the meat prices and how much has come through relatively recently (at the retail level) leads me to believe the overall number may be a little bit higher for the year," he added.
Leibtag said he expected food prices to moderate, but the timing depends on what happens to volatile energy and food ingredient costs.
Prices are expected to rise by 4 percent to 5 percent in 2009, lead by red meat and poultry. The forecast, if correct, would be the third straight year where food prices have surged at least 4 percent.
In its latest food prices report, USDA said the increase for 2008 was due partly to higher costs for meat, poultry and fish, which make up about 12 percent of total food spending. Overall, costs for these items are forecast to rise 3 percent compared to 2.5 percent estimated last month.
Prices for fruits and vegetables, which account for more than 8 percent of food spending, will also rise 5.5 percent versus 5 percent predicted in July.
USDA also forecast increases this year of 9.5 percent for cereals and bakery products, a 14 percent surge for eggs and a 13.5 percent hike for fats and oils.
A broad range of commodities posted record highs this year, including corn and soybeans. Prices have since backed off as concerns over smaller crops due to a wet spring in the U.S. Midwest have largely dissipated.
In its first estimate of the fall harvest, USDA last week forecast a corn crop of 12.29 billion bushels, the second largest on record.
Despite the near-record crops, farm-gate prices for this year's corn, wheat and soybean crops, while lower than earlier forecasts, will still set records.
Agriculture Secretary Ed Schafer said last week he did not see any relief for food prices during the remainder of the year.
The cost of energy -- used to transport, package and process foods -- is still boosting food prices, even though energy prices have dropped. Oil has slumped from a record high above $147 a barrel on July 11 to $115.
"We haven't seen those prices reflected in the finished products yet," Schafer said.
Americans spend more than $1 trillion a year on groceries, snacks, carry-out food and meals in restaurants. Farmers get 20 cents of the food dollar and the rest goes to processing, labor, transportation and distribution.
Wed Aug 20, 5:43 PM ET
WASHINGTON (Reuters) - U.S. consumers should brace for the biggest increase in food prices in nearly 20 years in 2008 and even more pain next year due to surging meat and produce prices, the Agriculture Department said on Wednesday.
Food prices are forecast to rise by 5 percent to 6 percent this year, making it the largest annual increase since 1990. Just last month, USDA forecast food prices would climb between 4.5 and 5.5 percent in 2008.
"It's a little bit of a surprise how strong some of the numbers were in July," USDA economist Ephraim Leibtag, who prepared the forecast, said in an interview.
"We've been waiting for some moderation, but especially with some of the meat prices and how much has come through relatively recently (at the retail level) leads me to believe the overall number may be a little bit higher for the year," he added.
Leibtag said he expected food prices to moderate, but the timing depends on what happens to volatile energy and food ingredient costs.
Prices are expected to rise by 4 percent to 5 percent in 2009, lead by red meat and poultry. The forecast, if correct, would be the third straight year where food prices have surged at least 4 percent.
In its latest food prices report, USDA said the increase for 2008 was due partly to higher costs for meat, poultry and fish, which make up about 12 percent of total food spending. Overall, costs for these items are forecast to rise 3 percent compared to 2.5 percent estimated last month.
Prices for fruits and vegetables, which account for more than 8 percent of food spending, will also rise 5.5 percent versus 5 percent predicted in July.
USDA also forecast increases this year of 9.5 percent for cereals and bakery products, a 14 percent surge for eggs and a 13.5 percent hike for fats and oils.
A broad range of commodities posted record highs this year, including corn and soybeans. Prices have since backed off as concerns over smaller crops due to a wet spring in the U.S. Midwest have largely dissipated.
In its first estimate of the fall harvest, USDA last week forecast a corn crop of 12.29 billion bushels, the second largest on record.
Despite the near-record crops, farm-gate prices for this year's corn, wheat and soybean crops, while lower than earlier forecasts, will still set records.
Agriculture Secretary Ed Schafer said last week he did not see any relief for food prices during the remainder of the year.
The cost of energy -- used to transport, package and process foods -- is still boosting food prices, even though energy prices have dropped. Oil has slumped from a record high above $147 a barrel on July 11 to $115.
"We haven't seen those prices reflected in the finished products yet," Schafer said.
Americans spend more than $1 trillion a year on groceries, snacks, carry-out food and meals in restaurants. Farmers get 20 cents of the food dollar and the rest goes to processing, labor, transportation and distribution.
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