British Columbia farmers face grain shortage

Farmers in Fraser Valley in British Columbia could face grain shortages in the coming days, endangering millions of local chickens, cows and pigs, The Province newspaper has reported.
West Coast feed mills are scrambling to secure railcars of feed grain for local farms as the national railway system is overwhelmed by a record grain harvest on the Prairies and, according to some, an increase in oil and gas shipments from Alberta.
"The feed millers have had extreme difficulties getting railcars (of feed grain) into the Fraser Valley lately," said Bob Dornan, secretary manager of the Animal Nutrition Association of Canada (ANAC), B.C. division. "We're at the end of the pipeline for grain delivery, and the cars just aren't coming."
Dornan said there have been "hiccups" of poor service in the past, but the problem has been steadily growing worse: "No livestock have gone hungry yet, but we're not sure what to expect anymore."
Dornan said the export-grain market is more lucrative than the feed-grain market, and with limited ability to get export grain out of the Prairies, some firms have been prioritizing export grain at the expense of feed grain.
In a letter to several B.C. farm groups dated December 20, the ANAC outlined its efforts to urge CP and CN Rail to ensure feed-grain shipments to the Fraser Valley, warning of "potential feed supply curtailments."
"We believe railcar allocation priority is an urgent and critical issue threatening our industry," said the letter.
Otter Co-op feed manager Vafa Alizadeh said many of the large Fraser Valley mills are within a few days of temporarily shutting down because of grain shortages.
According to the B.C. Ministry of Agriculture website, there are about 1.7 million commercial-laying birds in the Fraser Valley, as well as 79 million broiler chickens. The majority of them depend on grain mixes that are milled locally from grain that originates in the Prairies.

Farm Journal 2013 Crop Tour results to be presented in 'Grain & Meat Outlook' webinar

WATTAgNet and Farm Journal will present the second "Grain & Meat Outlook" webinar on Tuesday, August 27.

WATTAgNet and Farm Journal Media will present the second webinar in a three-part "Grain & Meat Outlook" series on Tuesday, August 27 at 10 a.m. CDT.
This second "Grain & Meat Outlook" webinar will present the results of Farm Journal's 2013 Midwest Crop Tour and the implications this will have on grain supply and prices. The impacts of the projected harvest on the meat and poultry sectors will be forecast, including expectations for meat and poultry supply, as well as prices for the remainder of 2013 and into 2014.
The webinar will feature expert speakers Chip Flory, ProFarmer editor, and Dr. Thomas Elam, president of FarmEconLLC.
Register for the "Grain & Meat Outlook" webinar online.
What you'll learn:

• Results of the highly anticipated 2013 Farm Journal Crop Tour
• Analysis of the impact of current crop conditions on the expected final yield and harvest
• Strategies for feed users
• Wholesale meat and poultry supply and pricing for the remainder of 2013 and into 2014
More information about this webinar and other upcoming webinars is available at www.wattagnet.com/Upcoming_Webinars.aspx. 

Survey finds UK grain hauling costs increasing

The latest Agriculture and Horticulture Development Board/Home Grown Cereals Authority United Kingdom Grain Haulage Survey shows average UK hauling costs have increased by 8 percent since last year.
The figures confirm a long term-upward trend in haulage costs. Alongside increased regionalizing of the UK wheat market this may mean supply chains have to look at haulage use efficiency. For some regions, this could include alternatives to road transport, such as coastal vessels.
The survey - based on an online questionnaire completed by members of several agricultural organizations - looks at haulers' most common journeys, including distance traveled, tons and cost per ton. The figures exclude value added tax and include a fixed cost per ton to cover overheads as well as mileage-associated costs such as fuel, spare parts and maintenance.
The results show the average cost of a 10-mile journey is 15 percent higher at £4.92 per ton than last year's survey. The average per-mile cost of grain haulage for 10 mile journeys is £0.49 per ton, compared to only £0.09 per ton for 150 mile journeys, due to both better fuel efficiency over longer distances and the dilution of loading and tipping costs over a greater mileage.
It is thought the delayed 2012 harvest and subsequent quality issues may also have been a factor in the increased average cost.
Jack Watts, Agriculture and Horticulture Development Board senior analyst, said, "With the UK being increasingly reliant on imports this season, the movement of additional grain from ports to processors would have used a greater proportion of the national fleet capacity. In addition, the poor and variable quality of the 2012 wheat crop has likely resulted in longer tip times and more redirecting, both of which utilize fleet capacity and increase costs to all involved.
"As haulage costs continue to rise, supply chains may well look at improving efficiency, with key areas including loading and tipping times as well as reducing the number of 'empty miles' traveled. There may also be an opportunity to use coastal vessels to transport grain from the surplus regions of the south and east to the deficit regions in the north of the UK."
Full survey results including regional tables can be found at the Home Grown Cereals Authority website, or for a full analysis, see the online edition of Prospects.

Kansas State University International Grains Program announces 2013 schedule

Building on the traditions of providing high technology training opportunities in the areas of feed manufacturing and grain management, grain marketing and risk management, and flour milling and grain processing is something the International Grains Program at Kansas State University is aiming for in 2013, according to organizers.
“We are excited about the course offerings for 2013,” said Mark Fowler, International Grains Program associate director. “We strive to be the pulse of the industry by adapting our programs to meet its changing needs.” The 2013 schedule features the program's standard courses, and builds on the momentum that was set in 2012, according to Fowler. A growth area has been in the distance learning curriculum. The program offered its first introduction to flour milling distance course in 2011 and offered it again in 2012. For the 2013 distance learning, the program will be offering the first-time introduction to flour milling all in Spanish.
For more information or to register, visit the program online. For on-site training questions, contact Cathy McGlothin, program coordinator, at 785-532-4070. For distance learning offering questions, contact Brandi Miller, distance education coordinator, at 785-532-4053.

WATT webinar to probe poultry and grains outlook for 2013

Join a webinar panel of three experts focusing on the economic outlook for poultry and grains in 2013, taking place on October 16 and hosted by WATT Publishing.

Register for this webinar.
The speakers for "Poultry and Grains Outlook for 2013" include Dr. Paul Aho, Poultry Perspective, poultry industry consultant and economist; Chip Flory, Farm Journal Media, editor of Pro-Farmer and expert on grain-farming trends; and Mike Helgeson, CEO of GNP Poultry. Gary Thornton, agribusiness content director for WATT Publishing, will moderate.
Areas of focus for the panelists will include their forecasts for U.S. grain and poultry prices in 2013, and:

• What is the profitability outlook for poultry producers in 2013?
• How will corn supplies be rationed among meat and poultry producers?
• What is the nutritional quality of the new corn and soybean crop?
• Have U.S. corn yields plateaued and what does this mean for future supplies?
• How high will wholesale and retail meat and poultry prices go in 2013?
Plus, pose your questions to the panelists, live via the Internet, in a question-and-answer following their presentations. Registration is available online until the event begins at 10 a.m. EDT/9 a.m. CDT on October 16.

Brazil produces highest-ever grain harvest in 2011

Brazil's national cereal, pulse and oilseed harvest yielded 159.9 million tons in 2011, 6.9 percent higher than the record harvest in 2010 of 149.6 million tons and 0.2 percent higher than the November 2011 estimate of 348,177 tons, according to the Brazilian Institute of Geography and Statistics.
Brazil’s 2011 grain harvest area of 48.7 million hectares is an increase of 4.7 percent from the harvested area in 2010, and an increase of 0.2 percent (39,305 hectares) from November 2011. The cultivation of rice, corn and soybeans — which together represent 90.3 percent of the volume of grain production — accounts for 82.4 percent of that total harvested area. In comparison to 2010 numbers, there was an increase in harvested areas of 1.7 percent (rice), 3.5 percent (corn) and 3.3 percent (soybeans); and an increase in production by 19 percent (rice), 0.1 percent (corn) and 9.2 percent (soybeans). Among 25 crops, 16 increased production from 2010, including: 
• cotton seed (72.6 percent)
• the first harvest of peanuts (27.3 percent)
• paddy (19.0 percent)
• the first harvest of potatoes (13.3 percent)
• the second harvest of potatoes (7.6 percent)
• the third  harvest of potatoes (6.1 percent)
• cacao beans (6.3 percent)
• barley grain (9.3 percent)
• the first harvest of beans in grain (31.2 percent)
• oranges (2.8 percent)
• castor bean berry (24.7 percent)
• cassava (7.3 percent)
• the first harvest of corn grain (3.3 percent)
• soybeans grain (9.2 percent)
• sorghum grain (29.5 percent)
• triticale grain (25.2 percent) 

Grain prices top poultry issue for 2011/12, says survey group

A WATT-Rennier Poultry Confidence Index survey poll (take the new survey) shows that 82% of respondents identified ‘grain prices’ as the top issue for the U.S. poultry industry for the remainder of 2011 and early 2012 (see chart). The regulatory environment, the general economy and bird health/diseases were essentially tied as the third-most important issue.
The dominance of grain prices is not a surprise given its importance on costs and profitability and sustained, historically-high grain prices. Protein supply and demand was selected by nearly 50% of the respondent as this factor heavily impacts profitability in a commodity-like market.
Although grain prices have been high for several years, this issue’s importance has jumped tremendously since May 2010 (see graph). Bird health/disease has also increased in importance over this time, but to a lesser extent. The export market and the general economy have substantially declined in importance over this same time period.
Be part of the survey!
Join the Poultry Confidence Index panel and receive advance reports of survey results. Take the survey: https://www.surveymonkey.com/s/B9HH3RJ 

Deepwater transit terminal would aid US grains export market

Louisiana State Senator A.G. Crowe, speaking to a meeting of agricultural journalists in New Orleans, proposed building the Louisiana International Gulf Transfer Terminal, a deepwater facility that would allow for new, large containerized cargo vessels, such as those exporting U.S. grains, to offload at the mouth of the Mississippi River. The multibillion dollar project would take advantage of the widening of the Panama Canal, due to be completed in 2014.
Citing the rapid increase in the use of containers in shipping, the senator feels the terminal would be especially helpful for those in the U.S. grain export market.
“We’re looking to install the European/Asian model,” the senator said. “This would enable us to transport any type of product or goods – including grains and soybeans – in containers through the central part of the United States, covering 33 states and about 14,000 miles along the Mississippi River and its tributaries."
The proposed LIGTT is different than the land-based model utilized by most U.S. ports, which distribute cargo shipments throughout the country by truck and by train. As a transfer terminal, the LIGTT would first offload cargo in containers from large ships and then transfer them to smaller ships for distribution upriver or ports around the globe.
As proposed, the LIGTT would be capable of handling any size container cargo ship coming through the Panama Canal because the natural water depth just off the Southwest Pass of the Mississippi River is 70 feet.
The LIGTT would be built in phases and funded through investment by private industry. “We don’t want to jeopardize the flow of funds to our other ports,” Crowe said.
Senator Crowe’s presentation is available for viewing. A video summary of Senator Crowe’s comments is also available.

Ukraine poultry, grain producer net income down 45%

Ukraine poultry and grain producer MHP S.A.'s net income was down 45% for the first quarter of 2011, reaching $20 million as opposed to 2010's $36 million. The decrease, according to the company, can be accounted for in the net effect of non-cash foreign exchange losses/gains of $18 million.

The company's poultry segment saw 18% revenue growth for the first quarter of 2011, to $209 million (compared to 2010's $177 million), due largely to a 4% average chicken meat sales price increase. Sales volumes of chicken meat increased 2%, to 84,300 metric tons, compared to 83,000 metric tons in the first quarter of 2010.
Poultry production costs in the first quarter of 2011 rose slightly compared to 2010 due to the increase in grain and utility prices, which was partially compensated by the reduced cost of hatching eggs. Since the second half of 2010, MHP has been self-sufficient in hatching eggs; in the first quarter of 2010 approximately 25% of hatching eggs had to be imported at extra expense.
MHP's grain growing operations grew from $2 million in the first quarter of 2010 to $6 million in 2011, revenue generated by the sale of grain stocks, mainly wheat. In 2011, the company expects to harvest 60% more land (100,000 more hectares) compared to 2010.

Production, profitability now driven by grain costs and exports, says Tyson COO

Jim Lochner, chief operating officer of Tyson Foods Inc., has said a new paradigm exists in the supply and demand fundamentals in U.S. protein production: grain costs and exports are replacing domestic demand as chief drivers of profitability and production.
This shift in input costs began in the mid 2000s, which coincides with the U.S. government's mandate that a portion of the nation's gasoline be mixed with ethanol at a level of 10%. Ethanol in the U.S. is made primarily from corn, which is also a primary ingredient in livestock feed. Today, about 40% of the U.S. corn crop is used in ethanol production.
This new demand has contributed to high corn prices for producers. High input costs, along with increasing global demand for protein, have reduced the amount of meat and poultry available, according to Lochner. "Total production of major proteins appears to be about flat versus last year, but with extremely strong exports, it's likely there will be even less meat and poultry per capita," he said.
According to Lochner, Tyson is dealing with this paradigm shift by focusing on customer service, innovation and insight-driven food solutions; optimizing commodity businesses and driving out inefficiencies; focusing on multinational expansion, particularly in Mexico, China, Brazil and India; and upgrading raw material through initiatives like renewable energy from animal fat and other technologically advanced platforms.