Coalition for a Sustainable Egg Supply study released

American Humane Association has applauded the results of the Coalition for Sustainable Egg Supply's research into five areas of egg production sustainability. 
The Coalition for a Sustainable Egg Supply is a multi-stakeholder group which collaborated on the Laying Hen Housing Research Project. The goal of this commercial-scale study of housing alternatives for egg-laying hens in the U.S. was to understand the sustainability impacts of three laying hen housing systems – cage-free aviary, enriched colony and conventional cage.
The research assessed animal health and well-being, food safety and quality, environmental impact, worker health and safety, and food affordability. The final report, which was released to the public after being shared with stakeholders at the Midwest Poultry Federation annual convention in St. Paul, Minnesota, explores the sustainability interactions and tradeoffs for these hen housing systems.
The American Humane Association, a coalition member and animal welfare advocacy group, said that the report support its 2010 decision to endorse enriched colony (cage) housing for laying hens as an improvement over conventional cages.
Robin Ganzert, president and CEO of American Humane Association, said: “American Humane Association believes in science and this years-long research will help improve the lives of millions of laying hens on our nation’s farms. Our American Humane Certified farm animal welfare program was the first humane certification program to adopt enriched-cage housing as a humane way to house hens back in 2010, and the new findings strongly support the initial research that was considered to make this decision. The research identifies a sustainable egg supply by providing evidence to support attainable and affordable egg production that ensures animal welfare.”
“When animals are involved, evaluating their welfare is a crucial aspect of any production system,” said Dr. Marion Garcia, chief veterinary officer at American Humane Association. “But to truly achieve sustainability, a variety of other factors such as the environment, the health and safety of the workers, food safety and quality, and affordability of what’s produced should also be considered, effectively evaluating the entire system.”

H7N3 avian influenza hits California turkey flock

An outbreak of low pathogenic H7N3 avian influenza has been confirmed in an 18-week-old commercial turkey flock in Merced County, California, according to a March 17 report from the World Organisation for Animal Health (OIE).
The USDA Animal Plant Health Inspection Service (APHIS) and the California Department of Food and Agriculture (CDFA) are conducting a comprehensive epidemiological investigation of the outbreak, where turkeys were seen coughing and experiencing a slight increase in mortality. Samples were submitted to state and national laboratories, where tests proved positive for H7N3 avian influenza.
An estimated 61,000 turkeys were susceptible, according to the OIE. The farm or any poultry companies it may be affiliated with has not been released.
The infected operation was placed under quarantine following preliminary findings and an epidemiological investigation was initiated. Follow-up surveillance and testing on 10 epidemiologically associated farms proved negative for avian influenza.
The latest confirmed case of marks the third discovery of the avian influenza in commercial flocks in California, however, it is only the first of the H7N3 serotype. Animal health agencies on January 24 confirmed the presence of highly pathogenic H5N8 avian influenza in a Foster Farms turkey flock in Stanislaus County, and another H5N8 outbreak in a commercial broiler and duck flock in Kings County was confirmed in February. 

Danish Crown reducing pig slaughter at Ringsted facility

After several years of slow slaughter pig production in Denmark, Danish Crown is adjusting the slaughtering capacity at its facility in Ringsted, on the Danish island of Zealand. The Board of Directors of DC Pork on March 13 recommended that much of the slaughtering capacity at the slaughterhouse in Ringsted be closed down over the summer of 2015. 
The plan is that capacity at the slaughterhouse be reduced by approximately 15,000 slaughter pigs a week, an adjustment that will affect about 280 employees. 
“For some time now, we have been transporting slaughter pigs across Denmark to utilize capacity in Ringsted, which is not a sensible solution. Basically, not enough pigs are being produced on Zealand at the moment to warrant a slaughterhouse of this size,” explained Søren F. Eriksen, Danish Crown vice president, production. 
Danish slaughter pig production is continuing to fall, which translates into surplus capacity at Danish Crown’s slaughterhouses in Denmark. 
“The only sensible way of cutting capacity is by closing down whole units, and in fact this is the first time that we are closing down half a slaughterhouse. However, the Ringsted facility is designed in such a way that it now runs more slaughter lines than other slaughterhouses. Therefore it is possible to physically remove two of the slaughter lines and thereby also realize savings related to maintenance and other overheads. At the end of the day, it is all about ensuring that the owners are paid the best possible price for their pigs so that we can continue to slaughter pigs in Denmark,” said Eriksen. 
Closing the two slaughter lines will be a two-step process – the first step being taken in mid-June, and the second in mid-September. Should slaughter pig production start growing again on Zealand, this solution will make it possible to increase capacity at the slaughterhouse – possibly by introducing an evening shift. 
In accordance with the agreements in connection with job cuts, a job bank will be established and social plans drawn up for each employee affected by the closure.

Ethopia National Poultry Training Centre to open in June

The National Poultry Training Centre is expected to open Bishoftu, Ethiopia, in June 2015. Holland-Africa Poultry Partners (HAPP) announced that an opening celebration for the facility will take place on June 9.
The training center will include housing, feeding, solar energy and hatchery equipment, which has been sponsored by HAPP members.
During the week of the National Poultry Training Centre’s opening, a set of trainings will be offered to a select group, of which the detailed program will be shared soon. New equipment is being installed and HAPP representatives have been in Ethiopia to arrange a smooth execution of the opening and the trainings to be given.
HAPP had hoped for an earlier opening, but delays in the arrival of the sponsored equipment pushed the opening date back to June. HAPP hailed the arrival of the equipment, saying it marks the end of a long logistical process and will ensure the opening of the facility. Since the equipment was shipped from the Netherlands, it took several months to arrive at the training facility due to complications and problems with import-regulations at the Djibouti-harbor. Although the equipment arrived at the port just before Christmas, it was not cleared until recently.
The Ethiopian Institute for Agricultural Research (EIAR), the Ethiopian Poultry Producers Association (EPPA) and the Dutch and Ethiopian governments helped support the project.

Government invests in Canadian winter wheat production

As part of a project to develop an innovative, low-cost way to increase winter wheat production in western Canada, the Alberta Wheat Commission will receive $1 million, which was recently announced by parliament member for Lethbridge, Jim Hillyer, on behalf of Agriculture Minister Gerry Ritz.
This project will evaluate new winter wheat varieties that offer greater yield, quality and consistency, as well as develop best management practices that promote healthier wheat, enabling producers to diversify their operations. It will also provide producers with information and tools about winter wheat production which will help them address agronomic challenges.
Agriculture and Agri-Food Canada researchers will collaborate with industry on a number of activities, including research into new controls to address weed problems, new cultivars and enhanced crop production through better residue management.
Home to one-third of Canada's wheat crop, Alberta wheat brings in $2.26 billion to the farm gate and another $2.3 billion in exports.
"Winter wheat has become one of the most profitable field crops in western Canada. This project will enable producers to increase their winter wheat acreage, helping them to diversify their businesses and grow their revenues," said Hillyer. 
This investment was made through Growing Forward 2's AgriInnovation Program, a five-year, up to $698-million initiative designed to accelerate the pace of innovation by supporting research and development activities in agri-innovations and facilitating the demonstration, commercialization and/or adoption of innovative products, technologies, processes, practices and services. 

NFF: Biosecurity bill good for Australia agriculture

biosecurity bill being considered in the Australia Senate needs to become law, as it would help strengthen the country’s agriculture industry, Australia’s National Farmers’ Federation (NFF) says.
The bill, initially proposed in 2014, would strengthen disease control measures to better manage the risk of diseases, such as avian influenza and African swine fever, from entering and spreading in Australia. The biosecurity bill is supported by four other bills, designed to help ensure a smooth transition from the Quarantine Act 1908.
Ron Cullen, Chairman of the NFF Biosecurity Taskforce, appealed to Parliament to pass the bill.
“The enhancement of Australia’s biosecurity capability is critical to ensuring that Australian agriculture remains a significant contributor to the economy and local communities,” Cullen said. “Biosecurity Bill 2014 is one of the most fundamental and significant initiatives in this area for over a hundred years. It’s the biggest development since the commencement of the Quarantine Act 1908, which it will replace.”
“We welcome the concept and the functions of an Inspector-General of Biosecurity, as outlined in the Bill, which recognizes the key underlying principles of the position: independence from government, an appropriate degree of separation from the director-general of biosecurity, transparency, and a firm scientific basis. There should be no further delays in passing this important bill.”
The NFF looks forward to working with the government on further strengthening Australia’s biosecurity through the development of supporting regulations, and will be monitoring the bill’s progress, Cullen added.

Specialty feed ingredients manufacturer changes name

T.C. Products Co. Inc., a premixes and specialty feed ingredients manufacturer, has changed its name to Tier 1 Nutritionals Inc.
Tier 1 Nutritionals provides contract manufacturing services to a range of manufacturers, innovators and marketers of branded feed ingredients, specializing in blending and compounding vitamin, trace mineral, enzyme and microbial ingredients. The company previously operated under its original company name since it was founded in 1957 by H. H. Thomsen and R. M. Comstock.
“We decided to change our name to Tier 1 Nutritionals to better reflect our company’s first-tier position in working with the micro-ingredients used to fortify and supplement animal and poultry feeds,” said Tim Jacobson, principle owner and president. “We specialize in compounding high-value ingredients that are used in very small quantities by manufacturers of complete animal and poultry feeds."
Tier 1 Nutritionals is HACCP-certified and a Food and Drug Administration (FDA) Licensed and Inspected feed ingredient blending and packaging facility. 
Jacobson joined the company in 2007, bringing with him 20 years of experience in the vitamin and fine chemical segment of the feed and human nutrition industries. Since joining the company, Jacobson has worked to broaden the scope and scale of the company’s manufacturing capabilities to meet the growing demand for specialized, value-added nutritional feed supplements. 

Charles Beard Research Excellence Award nominees sought

USPOULTRY and the USPOULTRY Foundation are accepting nominations for the Charles Beard Research Excellence Award through July 1. The goal of this award is to recognize outstanding completed research projects, funded by USPOULTRY or the USPOULTRY Foundation, which have made a significant positive impact on the poultry industry. The nominee may be recognized for multiple completed USPOULTRY research projects, all focused on the same subject area.
Nominations can be accepted from the universities and research institutions that conduct poultry research, as well as from anyone in the research community or any USPOULTRY member, staff and sponsored committee. Self-nominations are also allowed. Nominations should focus on research projects completed within the past five years, but may include projects completed at an earlier time if a project’s impact has only recently become recognized.
To submit a nomination, send a letter to Dr. John Glisson (jglisson@uspoultry.org), vice president of research, which includes the nominee's name, a brief description of the nominee's research accomplishments and the impact of the research.
The recipient of the Charles Beard Research Excellence Award will be the primary researcher who conducted the recognized research project(s) and will receive round-trip transportation to, and two nights lodging at, the International Production & Processing Expo (IPPE) in Atlanta, Georgia. A cash prize of $1,500 will also be awarded. The award will be presented at IPPE during the International Poultry Scientific Forum by Dr. Beard and the chairman of the Foundation Research Advisory Committee (FRAC). The 2015 Charles Beard Research Excellence Award went to Dr. Sarge Bilgili, professor and extension specialist in the Auburn University Department of Poultry Science.

Tyson investing $47 million in Nebraska beef plant

Tyson Fresh Meats plans to invest $47 million on a new, expanded boxed beef warehouse as part of its commitment to the continued success of its plant in Lexington, Nebraska, company officials told community leaders.
The project, which will begin in the spring of 2015, will involve construction of a 50,000 square foot warehouse on the southeast corner of the existing beef complex. Currently expected to be completed in mid-2016, it will improve the flow, efficiency and capacity of the plant’s boxed beef storage and distribution systems. It is not expected to add jobs to the plant, which employs more than 2,700 people and generates an annual payroll of $86 million.
“We’re reinvesting in our Lexington plant because it’s an important part of our beef business and we want to make sure it continues to operate successfully,” said Steve Stouffer, president of Tyson Fresh Meats.
“We appreciate the support we’ve received from our team members, area cattle producers and the Lexington community since the plant opened almost 25 years ago, and we want them to know we expect our facility to remain a major contributor to the local economy for many more years.”
The Lexington beef complex, which has been in operation since 1990, produces commodity cuts of fresh beef such as ribs, loins, chucks and rounds, as well as various ground beef products. These products are vacuum-packed and boxed for sale to retail and foodservice customers throughout the U.S. as well internationally. The company spent more than $2.2 billion in fiscal 2014 to buy cattle to supply the plant.
Tyson Fresh Meats is the beef and pork unit of Tyson Foods, which employs almost 9,000 people in Nebraska. In addition to Lexington, the company also has facilities in Dakota City, Madison and Omaha.

Joanne Ivy to retire as American Egg Board CEO

Joanne Ivy is retiring as president and CEO of the American Egg Board, effective December 31. 
Joanne Ivy, president and CEO of the American Egg Board (AEB), will retire after 40 years in the egg industry. Ivy’s retirement will be effective December 31.
Ivy started her egg industry career in North Carolina as the director of the North Carolina Egg Association, followed by the next 29 years with AEB. She has served AEB as its president and CEO since 2007.
During almost three decades of service to America’s egg farmers, Ivy created the Egg Product Marketing, Retail Merchandising, and State Support Program.  During her tenure as president and CEO, the egg farmers’ image campaign, known as the Good Egg Project, was launched; the Foodservice and Egg Product Marketing programs were enhanced; and AEB’s highly successful marketing campaigns, including its most recent Wake Up to Eggs with (Kevin) Bacon campaign, were executed. She also strengthened the prominence and integrity of the Egg Nutrition Center and its multi-million dollar nutrition research program that culminated in this year’s historic dietary guidelines recommendations.
“Working with the egg industry for the past 40 years has been my life and those in this industry are family,” said Ivy. “I love my job and love this industry, which has made this decision very difficult. However, I feel it is time for me to explore my personal interests and new opportunities, while healthy and able.”
AEB has played a major role in increasing egg demand profitability for the egg industry and has delivered a strong return on investment for America’s egg farmer. Ivy feels there is no better time to leave than when AEB is at its best.
“I have hired an incredible marketing team – an extraordinary staff, working with amazing agencies and consultants,” she adds. “I feel confident leaving while AEB and the egg industry are at such a high point.”
AEB Chairman Paul Sauder responded to Ivy’s announcement by saying: “This reminds me of a quarterback who retires after winning the Super Bowl. We have just won the Super Bowl with all the recent incredible news in our industry. We wish Joanne the best and appreciate her many years of service.”
And AEB’s Senior Vice President of Marketing Kevin Burkum added: “Her staff has truly appreciated her leadership. She has encouraged us to take risks and find new ways to increase egg demand.”
AEB’s Executive Committee will conduct a search for the incoming president and CEO.

Avian influenza worries hit poultry company stock prices

Share prices for the three largest broiler companies in the United States – Tyson Foods, Pilgrim’s and Sanderson Farms – have fallen after the news struck on March 11 that highly pathogenic avian influenza had hit a commercial turkey flock in the major poultry producing state of Arkansas.
Tyson Foods shares opened at $40.35 on March 9, but one week later on March 16, they closed at $38.09. Shares reached their lowest point within that week on March 13 at $37.10.
Pilgrim’s stock opened at $26.62 a share on March 9, bottoming out at $24.15 the day the Arkansas avian influenza case was confirmed. The cost of Pilgrim’s shares have since shown a slight recovery, closing at $25.06 on March 16.
Sanderson Farms stock opened at $82.33 on a share on March 9, but dropped to its lowest point in the week on March 12 at $76.80, despite the fact that earlier in the day Sanderson Farms CEO stressed to shareholders that the company has no operations or live inventory in Arkansas. Sanderson Farms shares closed at $78.59 on March 16.
Daniel Jones, an analyst with Seeking Alpha and manager of Avaring Capital Advisors, said he felt the market moves, particularly in Tyson Foods’ case, were irrational, according to The City Wire.
“While the source of the avian flu appears to be a flock of over 40,000 Butterball turkeys. Tyson processes around 40 million heads of chicken a week. Of its 106 food plants in operation in the U.S., 15 of these are located in Arkansas while one other seems to border Arkansas and Texas. Some 57 of its 106 food plants process chicken, 14 of which are based in Arkansas. Assuming that this data is correct and that each chicken processing plant produces the same amount of chicken per week, that's about 9.8 million chickens processed per week or 510.64 million chickens per year,” said Jones.

Israel researcher explores producing chicken meat in lab

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  Freeimages.com/

  Tel Aviv University's Amit Gefen has launched a project to study the possibility of producing chicken meat in a laboratory.

  From WATTAgNet:
  A Tel Aviv University professor has launched a research project studying the possibility of producing chicken meat in a laboratory. The study in Israel is being funded by the non-profit group Modern Agriculture Foundation (MAF), which advocates for laboratory-produced meat, also known as cultured meat.
  The study comes about two years after the creation of the first lab-grown hamburger at Maastricht University in the Netherlands.
  According to Amit Gefen, a Tel Aviv University bioengineer with an expertise in tissue engineering, and Shir Friedman, co-founder of MAF, producing lab-grown chicken meat is more difficult than beef. In the hamburger case, researchers accumulated small fibers of a cow’s muscle into a piece of meat. In the new project, Gefen says his plans are to use a single cell to generate a piece of chicken by allowing the cell to divide and multiply.
  Freidman says that the production of cultured meat and poultry could help meet the growing demand for food, specifically proteins. A Reuters report on the year-long feasibility research explains that producing cultured meat and poultry could be valuable because the global demand for poultry and other meat is expected to double by 2050.
  “In the not so distant future we will look back at how we used to raise cows and chickens and put so much effort into getting a small piece of meat,” Friedman said.

Mar-Jac gets tax abatements to build feed mill

Mar-Jac Poultry LLC has been offered tax abatements from the Franklin County (Alabama) Commission as the company seeks to construct a feed mill in the community of Spruce Pine. The commission voted on the abatements during its March 16 meeting.
Franklin County Development Authority Executive Director Mitch Mays addressed the commission to formally request the abatements for Mar-Jac Poultry. Mays said the abatements include a sales and use tax abatement for the purchase of materials to go toward the construction of the mill, and a 10-year property tax abatement, with the company still paying the education tax portion of property and sales taxes, the Times Daily reported.
Mays told the commission the construction project would involve a capital investment of around $25 million.
“This $25 million they will be investing in this project is part of a much larger capital investment the company will make in the state of Alabama,” Mays said.
“This is a great opportunity for Franklin County,” Roger Bedford, county attorney, added, “for jobs and for what this company will be investing in our area.”
Mays said a formal announcement from the company and more details about the project and the community impact would be coming at a later time.
Mar-Jac Holdings is the parent company to Mar-Jac Poultry LLC, which includes the company’s Alabama and Mississippi operations, and Mar-Jac Poultry Inc., which includes the company’s Georgia operations. The 17^th largest broiler company in the United States, according to the WATT Global Media Top Companies Database, Mar-Jac Holdings processes 225.16 million chickens annually.

American Egg Board, Kevin Bacon team up to promote eggs

Famous actor Kevin Bacon has teamed up with America’s egg farmers for a promotional campaign to bring attention to the many nutritional benefits of eggs. With the promotion, the phrase “bacon and eggs” takes on a whole new meaning.
"With a last name like Bacon, I'm the obvious choice, and I'm excited to be a part of the new Incredible Edible Egg campaign," said Kevin Bacon. "I like the creativity behind the idea, and I've always been a big fan of eggs. They're a nutritional powerhouse and I never get tired of them because there are so many ways you can eat them."


Variety of ads to appear on video, print, social media
The actor will be featured in a variety of online video, print, digital and social media ads. Grey New York is the American Egg Board's creative agency, Starcom handles media planning and buying, and Edelman oversees PR and social media.
"Kevin Bacon brings real star power to the world of eggs and we think consumers are going to love this clever new version of bacon and eggs," said Kevin Burkum, American Egg Board's senior vice president of marketing. "And, there's no better time to talk about eggs with consumption at its highest level in three decades and Easter right around the corner."


Promotion aimed to help egg consumption continue to grow
The USDA reports that per-capita egg consumption grew to 260 in 2014, increasing by more than a dozen eggs per person in the last five years. Many factors are fueling the spike in egg consumption, including growing interest in protein, health professionals viewing eggs more positively, and the affordability of eggs compared to other breakfast foods.
"Clearly, eggs are on a roll. We hope to build on this positive momentum with everyone's favorite bacon, Kevin Bacon," said Burkum.

Nebraska mulls bill to allow pork processors to own hogs

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  Andrea Gantz

  Nebraska is considering legislation that would make it legal for pork processors to own pigs in the state.

  From WATTAgNet:
  A law in Nebraska that prohibits processors from owning hogs in the state could be overturned if a bill proposed in the state’s legislature is passed.
  Since states like Iowa and South Dakota that border Nebraska allow corporations such as Smithfield Foods or Tyson Foods to cut costs by entering contracts with farmers to raise the animals that are owned by the companies, it puts Nebraska at a disadvantage, said Sen. Ken Schilz, who introduced the legislation. He adds that removing the ban on company-owned hogs could create opportunities for farmers in Nebraska that may not otherwise be there.
  “(Nebraska has) been in population decline for the last 50 years,” he said. “So we’d better start doing some things to entice people to come back.”
  The proposed legislation has its opponents, including the Center for Rural Affairs. Traci Bruckner, a spokesperson for the center, says Nebraska’s ban on packer ownership prevents companies from dominating the pork industry. Bruckner believes that if Nebraska swine producers enter contracts with corporations, they would give up control of the livestock, which is the most valuable part of the farm.
  “We think farmers should own livestock in the state, not packers,” said Bruckner. “If vertical integration was the answer, rural America would be a paradise, and it’s not.”
  But the bill also has its supporters, such as hog farmer Terry O’Neel. He says that Nebraska is losing out to other states that allow corporations to own hogs. O’Neel said that it bothers him that a lot of pigs being raised in Iowa are processed in Nebraska plants.
  “We’re missing out on that opportunity. I’ve seen what’s happened in Iowa. I’m seeing what’s happening in South Dakota. It seems like we’re becoming an island,” said O’Neel.

Wayne Farms files for initial public offering

Wayne Farms, the sixth largest broiler company in the United States, has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) to raise up to $100 million in an initial public offering (IPO) of Class A common stock.
The company did not specify the number of shares to be sold and the pricing.
It has not been revealed which exchange Wayne Farms plans to list its shares, but said it plans to trade under the symbol WNFM, according to an RTT News report.
The move to file for an IPO follows earlier statements made by Paul Fribourg, CEO of Wayne Farms’ parent company Continental Grain. He said that an IPO may be a way for the company to gain capital as commodity markets continue to change.
“We were at the low of the commodities cycle in chicken, because grain prices were very high and chicken prices were low. So there was an opportunity to go out and buy very cheap chicken companies,” Fribourg said at a forum in November. “Today the cycle has gone to the other extreme, where you have incredibly high chicken prices and very low grain prices. It’s not going to last. So at the top of the cycle we’re now looking at ways to lock in either long-term margins, or possibly, for example, take our chicken company public.”
According to the WATT Global Media Top Companies database, Wayne Farms processes 335.4 million birds annually. It has nine slaughter plants, nine hatcheries, eight feed mills and 3,575 growout houses.

Jilin Jinyi developing China’s largest egg plant

Jilin Jinyi Egg Products Co. Ltd. has received its first shipment of chicks to its new egg production plant that will have a 5 million bird capacity. When fully operational, the new Jilin Jinyi egg production complex will be China’s largest.
The operation will have one chicken rearing facility and four egg laying facilities.
The first shipment of chicks, which arrived in March, included a mix of 1.15 million Jinghong and Jingfen egg layers.


Egg industry in China growing
The development of the Jilin Jinyi egg production plant is the latest in a series of new egg facilities being built in China as the country’s egg industry expands.
Over the past few years, China has seen an explosive growth of bird egg facilities with a capacity of more than 1 million birds. Among those new Chinese egg production facilities are CP Group’s 3 million bird facility in Beijing’s Pinggu district and the 4 million bird facility built by Beiliang Agriculture Co., which was funded by five companies from four countries.


Jilin Jinyi to process powdered eggs, liquid eggs
The difference between the new Jilin Jinyi project and other large-scale egg production projects in China is that Jilin Jinyi is Asia’s largest egg product processor, with an annual capacity of 9,000 tons of powdered eggs and 30,000 tons of liquid eggs, according to a report from Smart Agriculture Analytics.
Jilin Jinyi has intentions to work with other poultry companies with hopes of eventually becoming the world’s largest producer of egg products.

Rabobank: 2015 global poultry industry outlook upbeat

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  Freeimages.com/bugdog

  The global poultry industry outlook is upbeat, according to a quarterly report from Rabobank.

  From WATTAgNet:
  The outlook for the global poultry industry remains upbeat, but global trade is under pressure from outbreaks of avian influenza, according to Rabobank’s Global Poultry Industry report for the first quarter of 2015.
  In the report, the bank's Food & Agribusiness Research team says that pressure is being felt from the further spread of avian influenza across the globe, with new outbreaks in Asia, Europe and North America.
  "Avian flu is further spreading across the globe and could affect global trade streams, especially as the virus has moved further in Europe to Hungary, and in the U.S. to central states like Minnesota, Missouri and Arkansas," said Rabobank Animal Protein Analyst Nan-Dirk Mulder. "Joint global approaches, optimal biosecurity, and strong monitoring and compensation systems are necessary to stop the spread of the disease."
  Global outlook
  The margin outlook for the global poultry industry remains upbeat, with continuing bullish drivers like high beef prices, lower feed costs and relatively strong demand in most regions.
  However, the global poultry trade is under pressure from avian influenza outbreaks. The exchange rate volatility and turmoil in regions such as the Middle East and Eastern Europe, are leading to lower trade volumes, prices and shifts in trade streams.
  United States
  Rabobank says the poultry sector in the U.S. has a favorable outlook, but some uncertainties remain. The margins are expected to remain high in 2015. The biggest unknown in 2015 is industry expansion.
  Brazil
  The Brazilian poultry market began 2015 bullish despite export challenges, according to Rabobank. The lower oil price will hit the Middle East demand. Still, exports are expected to be strong in 2015, mostly driven by Asia. Margins will be supported by reduction of feed costs as well.
  Europe
  The poultry industry in the European Union shows some recovery and although supply is currently tight, the outlook is threatened by ongoing avian influenza concerns and still closed export markets.
  China
  Entering the first quarter of 2015, China has an ongoing struggle of oversupply due to avian influenza and food safety issues. As a consequence of human avian influenza cases reported, live bird markets were shut down. During the seasonal peak month, poultry retail prices remained flat.
  Russia
  The Russian market remains very bullish on low supply. The outlook remains strong, with expected ongoing tight market conditions due to expensive, limited imported volumes and restrictions on growth.
  Other regions
  Mexico has ongoing avian influenza issues and lower pork prices will soften poultry meat consumption growth. Japan's poultry industry is still bullish despite ongoing avian influenza outbreaks.  In Thailand, the export position is supported by a strong Thai baht.

Taiwan to require raising poultry indoors to prevent AI

Effective in September, the government of Taiwan will require that all poultry be raised in enclosed spaces to help stop the spread of avian influenza.
According to a report from Far Eastern Agriculture, Taiwan’s Council of Agriculture is requiring that poultry not be raised outside in order to prevent contact with migratory birds that could spread the virus that has been responsible for decimating the country’s poultry farms. An estimated 860 farms have been hit by avian influenza in 2015, claiming about 4.17 million chickens, geese and ducks.
“The agriculture industry must adopt more modern techniques, such as the use of enclosed facilities on poultry farms, to stop the spread of the bird flu virus, said Chang Su-san, director general of the council’s bureau of animal and plant health inspection and quarantine.
A six-month grace period will be given to poultry farmers to comply with the new rules, but after the grace period ends, farmers will be subjected to fines that will be imposed by local governments.
Realizing that farmers will need to invest money for structures to help them comply with the new regulations, the Taiwan Council of Agriculture is offering loans at a concessionary interest of 1.5 percent.

Vietnamese firms wading into animal feed production sector

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  freeimages.com

  Vietnamese firms are looking to enter the foreign-investor-dominated animal feed industry.

  From WATTAgNet:
  Vietnamese companies have begun to break out into animal feed production in recent years, hoping to take over a larger share of the market, which is dominated by foreign firms.
  Steel giant Hoa Phat Group launched its animal feed subsidiary on March 16, with annual capacity of 300,000 tons. Recently, Masan, An Giang Plant Protection Company and the Hung Vuong Seafood Corporation have entered the animal feed production sector.
  Data from the Viet Nam Animal Feed Association showed that 59 foreign-invested firms and joint ventures own half of the market share, while 180 domestic firms hold only 20 percent, and the remainder is made up by imports. CP and Cargill alone hold a combined market share of 30 percent.
  Because foreign-invested companies have dominated the animal feed sector, animal feed prices have increased 20 percent compared with the regional average price. Higher feed prices also are estimated to have caused trillions in damage to the economy, as animal feed accounts for 70 percent of the husbandry production value.
  To combat the domination of foreign-invested firms, the Minister of Agriculture and Rural Development Cao Duc Phat said the government aimed to create a healthy competitive environment and prevent the formation of monopolies.

Nigeria pays poultry farmers for avian influenza losses

Poultry farmers in Nigeria are being compensated by the government to help cope with losses brought on by avian influenza.
The Nigerian Federal Ministry of Agriculture and Rural Development has paid out a compensation package of NGN100.5 million (US$502,614) for 69,303 birds to affected farmers in 15 local government areas in Kano State, according to a report in The Guardian.
In a statement at the compensation ceremony, Dr. Akinwumi Adesina, Nigeria’s agriculture minister, stated that it is important to support the poultry industry as Nigeria is the top egg producer in Africa. He also expressed concern that Kano had the largest number of mortality rates in the avian influenza outbreak.
The ministry released figures in February that cited the number of birds lost from avian influenza at 419,763 birds, but that number has since nearly doubled, according to estimates from Onallo Apka, director general of the Poultry Association of Nigeria.
Based on the compensation given, the government is spending about NGN1,460 (US$7.30) per bird, and about N1.2 billion (US$6 million) would be needed to help them fully recover from the losses.
Nigerian poultry farmers and traders in live bird markets are being trained and sensitized on measures to help prevent future outbreaks.

Petaluma Poultry seeks to expand plant operations

Petaluma Poultry has plans to expand operations at its plant in Petaluma, California, that would have the plant 24 hours a day, seven days a week. If realized, the expansion would enable the company to add more than 50 new employees.
Petaluma Poultry, which produces free-range and organic chicken products under the brand labels of Rocky and Rosie, took a request for expanded hours and changes to the design of the plant to the Petaluma Planning Commission. The commission gave its unanimous approval to the plans, according to the Argus-Courier.
In addition to expanding hours of operation, the plans for Petaluma Poultry include building 85 more automobile parking spaces and 22 bicycle spaces. A new office will be located adjacent to the current plant, and landscaping is proposed to “visually hide” from view the existing structures and parking lots from the highway.
In recommending approval for the project, Heather Hines, the city’s planning manager, noted that when the company formed in 1969, they were required to screen their business operations from the publics’ view and remove “possible odor producing matter” in such a way that the neighbors would not be bothered. As city planner Olivia Urban noted in presenting the plan to commissioners, the company’s plant is the oldest entity in an area that now has residential homes to the west and north of the plant.
One resident wrote a letter of opposition to the expansion plans, claiming the proposed changes might “create undesirable noises to the neighboring residences” during the night and on weekends, and would impact the value of her property.
Petaluma Poultry’s plan will now go to the Petaluma City Council for final approval.

US poultry industry working to eliminate avian influenza

U.S. poultry industry groups have issued a joint statement to assure the public that the industry is working hard to control the spread of avian influenza and eliminate the virus from the country. The groups also stress in its statement that the virus does not pose a threat to public health and that the food supply is safe.
US Poultry & Egg Association, National Chicken Council, National Turkey Federation, United Egg Producers and USA Poultry & Egg Export Council joined together to issue the statement.
The statement reads: “In light of the recent detections of avian influenza (AI) in the United States, the U.S. poultry industry would like to assure the public that detailed response plans are in place for controlling the spread of the virus and for eliminating the virus entirely. The U.S. government and poultry industries have sophisticated systems and techniques to detect the introduction of the virus into a commercial poultry flock and have proven methods to quickly eliminate the virus. The U.S. poultry industry has a strong avian influenza testing and detection program administered by the federal National Poultry Improvement Plan, in addition to each state’s individual response plan. Poultry farmers also maintain strict biosecurity measures year-round, keep their flocks protected from wild birds and routinely test flocks for avian influenza.
“The network of state and federal agencies, working in conjunction with the poultry industry, has already executed procedures to quarantine any affected flock and reduce the impact of these instances. None of birds from the affected flocks are viable for sale and have not entered the food chain.
“Though two different strains of the AI virus have been detected, the Centers for Disease Control and Prevention and USDA’s Animal and Plant Health Inspection Service have confirmed there is no immediate public health concern with either of these avian influenza viruses. Both H5N2 and H5N8 viruses have been found in other parts of the world and have not caused any human infection to date. As a reminder though, the proper handling and cooking of poultry to an internal temperature of 165 F kills bacteria and viruses.
“The poultry industry will continue to monitor flocks for the virus.”

Poultry processor Simmons Foods awarded as 'Distinguished Supplier'

Photo from left to right: Jim Nuetzi, executive chef, Olive Garden; Chip Miller, vice president, sales, Simmons; Jim Barron, director, sales, Simmons;  Jim Lawrence, chief supply chain officer, Darden Restaurants; and Gene Lee, chief executive officer, Darden Restaurants. 
Darden Restaurants announced that poultry processing company Simmons Foods, based in Siloam Springs, Arkansas, was named one of six “William B. Darden Distinguished Supplier Award” honorees for 2015. The award, named for the company's late founder, recognizes suppliers who continuously exceed expectations by providing innovative products and services that contribute to the success of the company.
“Partners like Simmons Foods make it possible for us to support our more than 1,500 restaurants nationwide on a daily basis,” said Jim Lawrence, chief supply chain officer for Darden Restaurants. “We are thankful for their teamwork and collaboration, and pleased to recognize them in this way.”
Darden Restaurants honored the chicken processor's dedication to quality and consistency, as well as for Simmons Foods' partnership in helping develop the new chicken breast product being used by Olive Garden restaurants.
The awards were presented at a dinner in Orlando on March 4.

H5N2 avian influenza strikes Kansas backyard flock

Highly pathogenic H5N2 avian influenza has reached a backyard chicken and duck flock in Leavenworth County, Kansas, the USDA Animal and Plant Health Inspection Service (APHIS) confirmed on March 13.  This is the first finding of H5N2 in the Central flyway.
Samples from the flock, which experienced increased mortality, were tested at the APHIS National Veterinary Services Laboratories in Ames, Iowa. APHIS is working closely with the Kansas Department of Agriculture to respond to the finding. State officials quarantined the affected premises and birds on the property will be depopulated to prevent the spread of the disease.
As part of existing avian influenza response plans, federal and state partners are working jointly on additional surveillance and testing in the nearby area. USDA is working with its partners to actively look for the disease in commercial poultry operations, live bird markets and in migratory wild bird populations.
USDA will be informing the World Organisation for Animal Health (OIE) as well as international trading partners of this avian influenza finding. USDA also continues to communicate with trading partners to encourage adherence to OIE standards and minimize trade impacts. OIE trade guidelines call on countries to base trade restrictions on sound science and, whenever possible, limit restrictions to those animals and animal products within a defined region that pose a risk of spreading disease of concern.

Argentina farmers halt crop sales to protest policies

Argentina’s farmers halted crop sales for three days, March 11-13, to protest leftist interventionist government policies they say erode their profits, according to a report. Three out of four of the largest farming groups in Argentina took part in the strike, aimed at reducing the delivery of grains to port.
"The halt to sales is widespread throughout the country," said Luis Etchevehere, president of the Argentine Rural Society. "We're demonstrating against government policymaking over the last 12 years that just hasn't worked."
Argentina imposes export quotas on wheat and corn in order to guarantee strong local supplies and keep consumer prices low. It also levies a 35 percent tax on soybean exports, which farmers say kills their profits.
Farmers threatened to continue protests if the government did not respond. They pledge to make their grievances known ahead of October’s presidential election. Relations between farmers and President Cristina Fernandez have been strained since a widespread farmers rebellion in 2008.
"This is not a strike," said Fernandez's cabinet chief, Anibal Fernandez. "It is a lockout by bosses who handle a certain level of production."
Argentina is the world’s top soymeal exporter and a major source of corn and wheat for world markets. Exports were unlikely to be affected during the strike because there was an ample amount of reserves in storage.

Report: China to maintain increase of US soybean imports

The U.S. Agricultural Trade Office in Beijing says it expects China to continue to increase its imports of soybeans though the 2015-16 marketing year, according to the Peoples Republic of China Oilseeds and Products Annual.
The forecast for Chinese imports of soybeans is 77.5 million tons, up 4.5 million tons from the forecast for the current year.
“Driven by price advantage and purchasing convenience … many food processors in the coastal provinces are progressively using more imported soybeans to produce tofu, soy milk and other foods,” the U.S. Department of Agriculture (USDA) said. “The direct use of whole soybean as a feed ingredient is also increasing.”
China accounts for 64 percent of the world’s soybean trade, and it is expected to increase its imports as domestic production declines. The country’s projected soybean production for 2015 is 11.7 million tons, down from 12 million tons in 2014.
China’s imports of U.S. soybeans in 2015-16 is forecast at 29 million tons, up from 28 million tons for 2014-15. U.S. share of the Chinese soybean market was forecast at 37 percent in 2015-16, compared with 38 percent in 2014-15 and 2013-14. Brazil’s share of the market was 47 percent in 2013-14.

China giving US farmers incentive to plant sorghum

• 

  USDA

  Farmers in the Southern Plains of the United States are seeing more incentive to plant sorghum this year.

  From WATTAgNet:
  Farmers in the Southern Plains of the United States are seeing more incentive to plant sorghum this year.
  Near the Gulf of Mexico, new-crop cash bids have been as much as $1.50 more than the price of corn, and, in Kansas, 30-40 cents more than corn.
  The U.S. Department of Agriculture (USDA) estimates a 400,000-acre increase in sorghum planting this year, but that’s based on a model that may not include China’s forward purchases for the 2015-16 crop year. Nearly 300,000 metric tons have already been purchased by China and other unknown importers for the 2015-16 marketing year.
  Halfway through the 2014-15 marketing year, sorghum export sales have already reached USDA’s forecast, 96 percent of which went to China.
  The popularity of sorghum can be attributed to the dispute over biotech corn in China, but so too can better education of China’s livestock feeders on sorghum and Chinas import tariffs and quotas.
  China imports about 10 million metric tons of feed grains each year, and has a system of tariff rate quotas (TRQ) that limit the quantity of certain grain imports. The TRQ for corn is 2.88 million metric tons, which leaves just over 7 million metric tons to be supplied by other feed grains, such as sorghum.

Poultry partnerships between India, Japan being explored

• 

  Andrea Gantz

  The Indian poultry industry is hoping to form partnerships with Japanese companies to give the sector a boost.

  From WATTAgNet:
  India’s poultry industry is hoping to expand its export opportunities, and is looking at potential agreements with Japanese companies to give a boost to its poultry exports. A delegation of Japanese companies visited India recently and expressed interest in exploring joint ventures with partners in India for processing poultry products and importing them.
  The delegation was led by Mayekawa Manufacturing, a company that makes cooling and freezing systems as well as compressors for refrigerators and heat pumps.
  During the visit, Mayekawa Chairman Yoshiro Tanaka told Andhra Pradesh Chief Minister N. Chandrababu Naidu that his group has alliances with 24 Japanese companies looking to invest some US$9 billion in India's food processing sector.
  The Indian poultry sector has been reporting a healthy growth of 12-15 percent a year on the back of a rapidly growing middle class and rising incomes. Exports have been low because of cost disadvantages and global concerns over the quality of Indian poultry products following frequent outbreaks of avian influenza.
  "Thanks to mushrooming global quick service restaurants (QSRs) like KFC and McDonald's, apart from local QSR brands, the Indian poultry industry had over the last decade or so begun adopting global quality standards," said a senior executive at a large poultry company, requesting anonymity.
  Presently, India exports poultry products mostly to Oman, Germany, Indonesia, Saudi Arabia and Afghanistan. It also ships small quantities of egg powder to Japan.

Brazilian chicken exports keep a positive rate

Although impacted by recent strike roadblocks in Brazil’s southern region, Brazilian chicken exporters maintained a positive pace in February and reduced the cumulative negative performance in 2015. The primary countries accountable for this, according to figures obtained by the Brazilian Association of Animal Protein (ABPA) were South Africa, South Korea, Saudi Arabia, United Arab Emirates (UAE) and China.
These five markets together accumulated an increase of 26,400 metric tons in shipments during the second month of the year, to reach a total of 128,760 metric tons.
"Only to Saudi Arabia 58,200 tons were shipped in this month, 11 percent more compared to February 2014. This market is the largest importer of chicken meat from Brazil," said ABPA CEO Francisco Turra.
Among the other countries in the top 10 largest buyers of chicken meat from Brazil in February, China and the UAE imported similar volumes, 20,600 metric tons (up 28 percent) and 20,700 metric tons (up 20 percent), respectively.
"It is worth noting in this month, the performance of sales to South Korea with 11,800 metric tons, 198 percent higher than in the second month of last year," said ABPA Vice President of Poultry Ricardo Santin.
In total, considering whole chicken, cuts, salted and processed products, and sausages, 302,100 metric tons were exported in the month, which is 1.6 percent higher compared to February 2014. There was also monetary increase in income of 10.3 percent, with BRL1.458 billion. In this case, the income from foreign exchange, there was a fall of 6.7 percent, reaching US$518.1 million.
In the year-to-date accumulated amount, a decrease of 4.2 percent in shipped volumes during the first two months of 2015 was recorded, reaching 579,800 metric tons. The result generated foreign exchange earnings 10.6 percent lower than last year's total, with US$1.01 billion. However, the result in Reals was 2.4 percent higher, reaching BRL2.76 billion.
By product, cuts remained as the main product of the list, with 331,100 metric tons in the first two months, a 1.4 percent higher performance than the one recorded in the same period last year. In second place, whole products totaled 184,100 metric tons (down 10.2 percent). A total of 24,700 metric tons (down 2.1 percent) and 27,500 metric tons (down 16 percent) of processed and salted products were respectively exported. Finally, exports of sausages were 12,300 metric tons (down 21.4 percent).
When considering exports by region (excluding sausages), the Middle East is the main destination of shipments, with a total of 216,000 metric tons in the first two months of this year, a volume 0.3 percent lower than the same period of 2014.  Secondly, Asia accounted for 165,800 metric tons of shipments (down 5.8 percent). Japan, ranked third, imported 72,200 metric tons (down 9.4 percent). To the European Union (the fifth largest importer) 61,400 metric tons (down 11.5 percent) were shipped. To the countries of the Americas 35,900 metric tons (up 4.6 percent) were exported. Finally, imports from the non-EU European countries, were of 15,500 metric tons (up 21.8 percent) and Pacific, 355 metric tons (down 2.1 percent).

New Congressional Chicken Caucus forming

Congressman Steve Womack, R-Arkansas, and Congressman Jim Costa, D-California, announced the formation of a new, bipartisan Congressional Chicken Caucus in the House of Representatives.  The Congressional Chicken Caucus is reorganizing for the 114th Congress.
The caucus will serve as a formal group of members whose mission is to educate members of Congress and others about the history, contributions and issues of importance to U.S. chicken producers, pertaining to food safety, international trade, labor, animal welfare, immigration and environmental issues, among others. The members of the Congressional Chicken Caucus have yet to be formally announced.
"The chicken industry is vital to the economy of the Third District of Arkansas, which is why I am proud to co-chair the Congressional Chicken Caucus, alongside Representative Costa, with whom I share a longstanding bipartisan relationship," said Rep. Womack.  "We look forward to growing the caucus' membership, working together to educate members, and advancing the issues that are important to the U.S. chicken industry."
"The poultry industry plays a critical role in the economy of California's 16th Congressional District and the greater San Joaquin Valley," added Rep. Costa.  "We are home to the largest poultry processor in the West and the 5th largest in the country, which provides nearly 5,000 district jobs.  As such, I am honored to be Co-Chair of the Congressional Chicken Caucus.  I look forward to working with my good friend Rep. Steve Womack in providing a platform on which issues pertaining to the poultry industry can be addressed."
Mike Brown, president of the National Chicken Council, noted, "I want to thank Representatives Womack and Costa for spearheading the continued development of the Congressional Chicken Caucus and working to grow its membership in the early stages of this 114th Congress.  Under their leadership, this bipartisan caucus will continue to serve as a hub for members to discuss common issues of interest, host Capitol Hill briefings and amplify the voice of U.S. chicken producers."

Arkansas poultry faces trade bans over avian influenza

More than 20 countries have implemented bans on all poultry imports from Arkansas after a case of avian influenza was found in a Boone County turkey flock.
More countries are likely to follow suit, Jim Sumner, president of the USA Poultry & Egg Export Council (USAPEEC), told Arkansas Online.
Included in the countries to ban Arkansas poultry is Mexico, the U.S. poultry industry’s top trading partner, which according to Jessica Sampson, an agricultural economist at the Livestock Marketing Information Center, accounts for 21 percent of U.S. chicken exports and 63 percent of turkey exports.
The move by Mexico and other countries raised concerns that poultry companies might face lower prices for meat as supply expands inside the United States.
Before the case of avian influenza in Arkansas, many of countries with import restrictions were blocking poultry from California, Missouri and Minnesota, all states that had confirmed cases of avian influenza in commercial turkey flocks. Those states accounted for about 10 percent of U.S. production by sales, according to USDA data. With the addition of Arkansas, 20 percent of the United States' poultry production faces trade restrictions.
"High pathogenic avian flu in Arkansas is definitely concerning because it's the first really major producer to be hit," Sampson said.
Prices for dark meat are likely to decline as supply builds up in the United States, but the cost of white meat could decline as well, Sampson added.
The bans are expected to be a bigger problem for regional companies with operations primarily in Arkansas than for companies with a presence in other states. Tyson Foods, the largest poultry company in the United States, is headquartered in Arkansas, but it has operations in additional states that will help it continue to export its poultry products.
"Our company has the ability to ship products from multiple states, so we believe we can meet demand for both domestic and global markets," said Dan Fogleman, a spokesman for Tyson Foods.
Ozark Mountain Poultry CEO Ed Fryar said the bans have so far had very little impact on the Arkansas company, because it is still able to export paws, its largest export product. However, he added that the company could be affected more in the future, depending on how long the bans last.