Showing posts with label global pork industry. Show all posts
Showing posts with label global pork industry. Show all posts

Wednesday, December 9, 2015

Predicting the unpredictable in the global pork industry

More than 40 industry leaders, representing in excess of 2.8 million sows, gathered at the world-famous Melbourne Cricket Ground for the Alltech Elite Herd dinner to discuss challenges facing the global pork industry and debate how to move forward.
Matthew Smith, Alltech Asia-Pacific vice president, opened with a reference to forecasts that poultry consumption will overtake pork by 2020 (OD Consulting, 2015). “Chicken consumption is growing, in large part due to efficient broiler performance, consistency in appearance, texture and taste and no religious restrictions,” Smith said.
Chicken producers have been leading the way in innovation and flexibility in the number of consumer products on the market. “There have been more new products created with chicken meat than all other meat sources combined,” he said.
Terry Coffey, chief science and technology officer, Smithfield, discussed the challenges of being the world’s largest swine producer, especially in regard to the sheer size of business. He stressed Smithfield’s focus on driving production efficiency across their brands. “Part of our challenge in producing pork with enhanced attributes is what to do with the lesser-value cuts that are not as desirable," Coffey said.
Coffey also referred to the fact that Smithfield has some organic farms where inputs are fully traceable. He said that this forms a very small part of their business and demand for these products has not grown in recent years.
The importance of provenance (where food is grown) was discussed in a debate about locally-sourced products. Brian Luxford, general manager of the research and innovation group, Rivalea, emphasized that due to restrictions limiting the importation of genetics in Australia, improvements in production efficiency must be made elsewhere. He stressed his belief that companies must promote the idea of buying local and ensuring consumers know the origin of their pork products.
Mark Field, head of product technology, Coles, illustrated that when making a purchase, the consumer will look at a range of factors, such as value, marketing, provenance, innovation and convenience. “We remain focused on listening to the needs of the customer and delivering products they can trust,” Field said
Summarizing the night’s debate, Aidan Connolly, Alltech chief innovation officer, said, “The pig business is global. While we once looked at local prices and only pork proteins, we’re now globally interconnected. Prices go up and down together.”
At a separate Alltech breakfast at APSA, Connolly addressed an audience of more than 60 executives from countries across Asia, discussing the trend to move away from antibiotics in production. “Around 46 countries now have restrictions on the use of antimicrobials, particularly as growth promoters,” he said. Using examples of iconic global brands such as McDonald’s, Walmart and Subway, he stressed that change will not come necessarily from legislation alone. “Governments are pushing the food industry in new directions, but the majority of change will come from companies themselves,” said Connolly.
Connolly highlighted trends in the global swine industry towards antibiotic-free production and Alltech’s leading role in this area. He spoke about the Alltech Antibiotic-Free program, which includes almost four decades of research, practical applications and technical experts, providing a holistic approach to help producers address the challenges that can occur in antibiotic-free production. He spoke of very large sow units in the U.S. and other countries that have removed antibiotic growth promoters and are using Alltech’s program, emphasizing that these companies now have lower mortality and are consistent leaders in feed conversion.
Connolly also shared his experience with an application of the Alltech Antibiotic-Free program, the “seed, feed and weed” approach: seeding the gut with favorable microflora, utilizing nutritional technologies in feed that maintain optimum pH, water balance and support gut microbial population, and weeding out challenges in order to maintain gut health and integrity to support overall performance.

Tuesday, October 27, 2015

Rabobank: Exchange rates hurting global pork market

The global pork market will continue its slow recovery in the fourth quarter of 2015, analysts with Rabobank say. The adverse exchange rates are driving the limited growth.
The exchange rates resulted in a clearly visible mismatch between supply and demand across the globe, with elevated price levels in one group of countries and stable/pressured prices in the other countries, according to the Rabobank Global Pork Quarterly Q4 report.
The recovery of the global market in the second quarter contracted unexpectedly in July, followed by a slow recovery in the months thereafter. Depreciating currencies in main import markets pushed up prices of imported pork, which hampered import growth in the first part of the third quarter, according to Rabobank. This was largely compensated by rising Chinese imports in the second part of the quarter. Combined with the decline in domestic production in some countries, rising pork prices resulted.
"The global pork market shows a clear mismatch between supply and demand across the globe, with elevated price levels in one group of countries and stable/pressured prices in the other countries," said Rabobank Animal Protein analyst Albert Vernooij.
Supply growth in the main exporting regions (the US, EU and, to a lesser extent, Canada) was not able to reach the demanding markets in Asia. As a result, the Rabobank five-nation hog price index declined into Q3, followed by some recovery towards the end of the quarter.
The global pork market will slowly improve around the end of 2015 and into 2016, Vernooij said. Trade is expected to continue to rise, but exchange rate developments will impact both the volumes and returns in key export markets.
Beyond that, the main question concerning the world pork industry is how large the growth of pork production will be in importing countries and how this will impact global pork trade.

Tuesday, April 28, 2015

Rabobank: Pork prices moderate in first quarter

Monday, April 13, 2015

Austria, China reach agreement on frozen pork trade

Tuesday, February 3, 2015

Rabobank: 2015 will be a turbulent year for global pork industry

Wednesday, August 6, 2014

Rabobank: Pork prices will keep breaking records in 3Q 2014

Tuesday, May 13, 2014

PEDv, ASF hinder global pork supply, Rabobank reports

    Pork shortages will be a key concern in many countries in 2014, as the ongoing spread of porcine epidemic diarrhea (PED) virus in the North America and Asia will have a significant impact on pork supplies during the summer of 2014 and beyond, according to the Rabobank Pork Quarterly Q2 report. Exacerbating tight global supply is Russia's ban on EU pork imports in response to recent African swine fever (ASF) outbreaks.
    "PEDv has been the driving force pushing up pork prices, especially in the U.S., to record highs," said Rabobank analyst Albert Vernooij. "U.S. futures climbed 30 percent in Q1 and are up 45 percent over last year, impacting pork users and consumer's ability to source enough pork for their needs."
    The Rabobank report states the outbreak of PED virus in the U.S., Mexico, Japan and South Korea will lead to a likely decline in global pork production in 2014. In the U.S., where the PED virus outbreak has been most severe, Rabobank estimates that pork production could decline 6-7 percent in 2014 due to hog losses from PED virus.
    Rabobank points out that it has been difficult to determine the impact of PED virus on global pig production, because until late April, the USDA did not require PED virus cases to be reported. The impact of PED virus in Asia, especially in Japan and South Korea, is also difficult to estimate as the spread of the disease is not known.
    African swine fever’s impact on pork markets
    In addition to pork price hikes brought on by PED virus losses, Russia has seen pork prices increase since it implemented a ban on pork imports from the EU. The ban on EU pork followed the discovery of ASF in wild boars in Poland and Lithuania. With the ban comes a loss of 1.3 million metric of pork imports, about one third of Russia's total import volume in 2013. This has resulted in short supply and higher prices in Russia, but with North America expected to feel the impact of PED virus for the remainder of 2014, Rabobank foresees Russia will have few alternatives to fill the void left by the EU.
    Oversupply in China eases some stress on markets
    An oversupply in the pork industry in China, driven by high sow liquidation, is offering some relief to global pork shortages. China is the world’s largest pork producer and consumer.
    Rabobank believes that Chinese pork prices will continue to fall in the second and third quarters of 2014, and the continued sow liquidation should help Chinese pork prices recover by the end of the third quarter in line with the seasonal increase of China's pork consumption.

Tuesday, February 11, 2014

Global pork industry poised for positive 2014, but PEDV concerns remain

    The price outlook for the global pork market for the first two quarters of 2014 appears steady, according to the Rabobank Pork Quarterly first quarter report. The price outlook, combined with lower feed costs, points to a profitable year for pork producers, but the unknown impact of porcine epidemic diarrhea virus (PEDV) in the United States, Canada and Mexico leads analysts to remain cautious.
    "The main wildcard in the global market this quarter is the effect of PEDV outbreaks in North America and what this means to pork production in and export from this region this year," said Rabobank analyst Albert Vernooij. "Rabobank expects the impact in the U.S. to be more severe than forecast by the USDA and believes it will likely hamper U.S. pork production growth into 2014. This might also pressure U.S. export volumes, presenting opportunities for the other exporters."
    PEDV, which has no known cure and can have a 100 percent mortality rate in piglets, was first confirmed in the US and Mexico in 2013. The first cases in Canada were confirmed in January 2014.
    Korean, UK pork markets see positive signs
    Adding to a positive global outlook for pork in 2014 is the recovery of the Korean pork market, which had been severely hampered by a swine fever outbreak that began in 2009. The recovery reported in the second half of 2013 is expected to carry over into 2014, Rabobank reported.
    A positive financial situation is also expected in 2014 for the EU pork industry. Lower feed costs and continued elevated price levels will support the recovery of margins.

Thursday, October 24, 2013

Global pork industry Q4 2013 outlook

    Global pork prices for the remainder of 2013 are forecast to remain elevated, according to Rabobank. The limited increase of sow herds in almost all regions shows that farmers are cautious to expand production. Despite the positive prospects with regard to the feed prices, farmers first want to regain part of the lost margins of the last few years before expanding production.
    In the report, Rabobank's Food & Agribusiness Research and Advisory team says that the global pork industry has experienced a positive Q3:  in line with expectations, the Rabobank five-nation hog price index continued its upward trend, resulting in a peak of 162 percent in August, just below the last peak of 165 percent in August 2008.  The index declined at the end of Q3 due to the recovery of supply after the summer heat. However, the bank says that global pork prices are forecast to remain elevated for the remainder of the year, supported by demand resulting from start of the Chinese festival season.
    Compared with Q2 2013, pork prices in Q3 2013 showed double digit increases in almost all major producing regions. The main drivers were tighter-than-expected supply in the U.S., due in part to the impact of the porcine epidemic diarrhea virus (PEDV); and in the EU, due to the impact of the EU's introduction of group housing of sows in January 2013, and continuing robust import demand.

    2014 global pork outlook

    Into 2014, Rabobank predicts that declining feed costs will continue to support slow herd rebuilding. Combined with productivity increases, this will result in higher supply and, likely, lower prices. However, the price slide will be slow due to the limited growth of sow numbers, the continuing demand growth in Asia and still relatively high feed costs, which will curb supply growth at least until mid-2014.
    The approval of Shuanghui's acquisition of the largest global pork company, Smithfield, has been yet another sign of China's growing dominance in the global pork industry. The country's import demand has been exerting more and more influence on prices in different regions throughout the world in the last few years. The acquisition is but one illustration of China's ongoing search for sufficient pork supply to feed their growing and wealthier population, a situation which will continue for the foreseeable future.

Tuesday, July 30, 2013

World pork market outlook positive into 2014

    The world pork market is set for positive growth in the second half of 2013 to 2014 because of limited supply growth, a likely increase in pork imports from China and high beef and poultry prices, according to a Rabobank quarterly pork report.
    However, high stock levels resulting from the disappointing first half of 2013 across the globe and the continuing effect of the economic crisis on demand, mainly in the developed world, will likely limit the price increase.
    "With declining feed costs resulting from bumper harvests, a subdued price increase will support much needed margin recovery across the globe," says Rabobank analyst Albert Vernooij. "However, due to the slowness of both the increase of pig prices and the decline of feed costs, it is questionable whether this will be enough to fully cover losses endured in the first half of 2013."
    The Rabobank five-nation finished hog price index rebounded in the second half of Q2 2013, supported by improving conditions across the globe with limited impact of exchange rates. In the European Union, the situation is forecast to remain difficult, with continuing pressure on consumer demand hampering market recovery despite lower supply and rising exports.
    However, prices recovered in China, supported by the outbreak of H7N9 avian influenza in poultry, which resulted in a consumer move to pork. In the United States prices have also recovered, following the loss of key export markets, due to an increase in seasonal demand and lower-than-expected supplies.
    The expectations for the second half of 2013 are largely dependent on the prospects for demand as production is forecast to slightly increase. Pork markets are benefiting from relatively high prices for both beef and poultry, but will be negatively influenced by the continuing difficult economic conditions in key markets. Rabobank expects a slight increase in overall global pork consumption in 2H 2013, due in part to the start of the festival season in China. This will support rising prices, but will likely be limited due to the current large stocks across the globe.
    Longer term, Rabobank believes the announced acquisition of US-based Smithfield by Chinese Shuanghui International highlights the increased importance of global trade for the pork industry. The limited number of relevant countries, demand growth, grain deficits in Asia, and continuing volatility mean that the Smithfield takeover may be a trigger for future steps. In order to secure supply, other importers may look to follow suit.

Thursday, January 31, 2013

Global pork prices to fall on limited growth in consumption


    While global pork prices began 2013 at historically strong levels, some weakness in prices late in the first quarter and into the second quarter are estimated due to pressures on production and limited growth in global consumption levels, according to Rabobank's latest report.
    2013 pork prices will be impacted by swing factors, including how much European production will decline due to sow pen regulations; China’s appetite for import; and whether U.S. production will continue to expand, despite the spike in feed costs. The pace of pork demand growth is the key unknown for industry margins in 2013, and is highly dependent upon economic growth in the developing world, according to Rabobank.
    Global pork prices started 2013 supported by strong Chinese demand ahead of the Chinese New Year in February. However, price movements in China will be a key indicator for 2013 going into the second quarter as Rabobank expects global pork prices to come under slight pressure due to production growth in China, the U.S., Brazil and Russia being higher than the growth in global consumption.
    Higher prices for pork are expected overall for 2013, as the 2012 drought in the U.S. and Black Sea regions has led to low inventories of feed crops and adverse weather in pork-producing countries continues to limit production expansion. There is also uncertainty regarding the pace and magnitude of EU enforcement of the ban on sow crates, which Rabobank forecasts will reduce the sow herd, keeping EU pork prices high.
    However, Rabobank predicts that global prices will be at a lower average level than previously forecast, as the expected consequence of higher feed costs — herd liquidation — has not occurred, as producers in the U.S. have managed their risk by using futures contracts. “Despite the higher feed input costs, the U.S. swine breeding herd has modestly expanded and large scale farming continues to develop at a rapid pace in China, Russia and Brazil," said Rabobank analyst David Nelson said. "There seems to be limited opportunity for a significant increase in pork prices, given this expansion. Chinese hog supplies appear to be sufficient but their economy is recovering, which could stimulate demand growth.”
    In developed pork markets, the challenge will come from managing soft demand and often excess capacity, according to Rabobank. As such, supply discipline will remain the key success factor for the pork industry’s performance in 2013 and beyond.

Tuesday, September 20, 2011

USDA uses new pork antibiotics testing method

Inspectors with the U.S. Department of Agriculture's Food Safety and Inspection Service are using a new type of testing on pork to check for excessive levels of antibiotics.
The method, already used on beef, can detect smaller levels of many antibiotics, including penicillin and amoxicillin, according to reports. The agency is using “more advanced science to better detect these residues and better protect the public,” said Dirk Fillpot, a spokesman for the FSIS. The new test can detect penicillin at a level of 30 parts per billion in an animal’s kidney, compared to 800 parts per billion with the old test.

Tuesday, May 10, 2011

Pig short course highlights issues facing the global pork industry

The American Meat Science Association is partnering with the National Pork Board and the U.S. Meat Export Federation to offer PORK 505, a short course focusing on quality standards, culinary techniques, international marketing and other issues facing the global pork industry.
The day-and-a-half program will take place ahead of the World Pork Expo on June 6 and 7 at the University of Nebraska.
Key PORK 505 topics include:
  • Hands-on international carcass fabrication methods
  • Pork palatability and quality standards
  • Hands-on culinary demonstration and preparation of international recipes using fabricated cuts
  • Niche/specialty products that appeal to the worldwide marketplace
  • Currently exported offal products and their importance in the worldwide marketplace
  • Hot topics in the international pork industry
AMSA is offering discounted registration fees to companies or organizations sending more than one person to any AMSA short course. After the first person pays the full registration fee, the second person receives a 10% discount. All additional registrants will receive a 25% discount. Attendees must attend the class at the same location to qualify for the discount. For a complete course outline and to register, visit: http://www.meatscience.org/Page.aspx?ID=7321.

Sunday, April 10, 2011

Japan pork production may drop 13%

Japanese output of pork is set to drop 13% after March’s earthquake and tsunami left the country’s farm and food industries in a “dire” situation, according to Rabobank International.
The decline in production will lead to increased imports of pork as well as other products affected by the disaster, said analyst Jean-Yves Chow. “Perishable products, such as meat, seafood, fruits and vegetables, will likely require additional imports," said Chow.
Other markets expected to take a significant hit in production are poultry (production down 11%), beef (9%) and rice (11%).

Monday, March 28, 2011

2011 World Pork Expo to highlight new industry technologies, top breeding stock

The 2011 World Pork Expo, which will highlight the U.S. pork industry’s newest technologies, top breeding stock and educational seminars, will be held June 8 through 10 at the Iowa State Fairgrounds in Des Moines, Iowa.
The event, the world's largest pork-specific tradeshow, is expected to bring in nearly 20,000 producers and industry professionals. Attendees will have the opportunity to check out business seminars on profitability, animal health and current issues; see the newest products, services and technologies offered by more than 450 commercial exhibitors; and watch junior showmen and swine breeders exhibit their top market hogs and breeding animals.
The Expo tradeshow is open from 8 a.m. to 5 p.m. on Wednesday, June 8, and Thursday, June 9, as well as from 8 a.m. to 1 p.m. on Friday, June 10. The breeding stock sales will continue on Saturday, June 11, from 8 a.m. until they’re completed.
Several pre-Expo tours are planned so attendees can experience Midwestern agriculture at its finest: the June 6-7 tour will feature a stop at Cinnamon Ridge Farms in eastern Iowa. The popular MusicFest will be held from 3:30 p.m. to 8 p.m. on Thursday, and Expo attendees can enjoy roasted pork and refreshments while listening to music performed by live bands.
To receive a $10 World Pork Expo early registration discount and free Expo alerts via e-mail, go to http://www.worldpork.org/ and click on the “Register Now” tab. The website also has the latest details about room availability at the official Expo hotels in its “Producer” section. Additional information is available when you connect with World Pork Expo on Facebook and follow World Pork Expo on Twitter.

Tuesday, December 7, 2010

Pork Production Forum covers disease, sow productivity

Alltech's second annual International Forum on Pork Production provided two days of talks on key issues in the global pork industry.
The event, which was dedicated to Dr. Des Cole, an industry pioneer who died in 2006, focused on the removal of antibiotic growth promotants, risk management, sow productivity and how to handle multi-factorial diseases. Speakers included Joe Kerns with the International Agribusiness Group, Dr. Gunner Sorensen with the Pig Research Centre and Danish Agricultural Food Council, Tom Gillespie of Rensselaer Swine Services and Dr. Bill Close of Close Consultancy.
Next year's forum will be held on Sept. 14 through 16, in Lexington, Ky.

Monday, October 18, 2010

Brazilian researcher receives award for excellence in veterinary public health

Dr. Luisa Zanolli Moreno has received the Pedro N. Acha Award for Excellence in Veterinary Public Health for her undergraduate thesis, "Molecular epidemiology of Listeria monocytogenes isolated from different sources in Brazil."
The results of the 23-year-old graduate of the School of Veterinary Medicine and Animal Science at the University of São Paulo's thesis has great significance to the pork industry. L. monocytogenes is a worldwide foodborne pathogen that can be lethal to both humans and animals; it grows at very low temperatures and adapts to disinfectants, which makes it extremely difficult for the food industry to fight.  
"Dr. Zanolli Moreno's findings are an important step toward improving food safety at a time when there was a Listeria monocytogene outbreak in the United States this past August," said Edward L. Kadunc, president of the Pan American Health and Education Foundation. "This is very much a real threat to consumers in the Americas and worldwide."
The award was created in 1993 to recognize the importance of veterinary public health to the peoples of the Americas and the economies of the countries. Zanolli Moreno is the second Brazilian ever to receive the honor.