Tyson urges contract hog farmers to follow animal welfare measures

Tyson Foods in a letter sent January 8 notified hog farmers who are suppliers for Tyson Foods of animal welfare measures the company has established and urged the growers to follow them. The Tyson Foods animal welfare measures are being taken as part of the ongoing Tyson Foods animal well-being program and reflect input the company has received from its Animal Well-Being Advisory Panel, customers, farmers and industry experts.
The steps also reflect Tyson Foods' continuing efforts to balance the expectations of consumers with the realities of today's hog farming business.
Tyson Foods contract hog growers were notified the company was increasing the number of third-party sow farm audits conducted through its FarmCheck program. Tyson Foods also urged its growers to implement the following animal well-being steps:

• Use video monitoring in their sow farms to increase oversight and decrease biosecurity risks
• Stop using manual blunt force as a primary method of euthanizing sick or injured piglets
• Support the use of pain mitigation (such as anesthetic or analgesic) for tail docking and castration of piglets
• Improve housing for pregnant sows by focusing on the quality and quantity of space provided, including urging all future sow barn construction or remodeling to allow for pregnant sows of all sizes to stand, lie down, stretch their legs and turn around.

Hog producer AgFeed Industries files for bankruptcy

Hog producer AgFeed Industries filed for Chapter 11 bankruptcy protection on July 15 after agreeing to wind down its supply contract with Hormel Foods, its main U.S. customer. Hormel purchases weanling pigs and hogs from the company.
AgFeed plans to sell its U.S. operations while under Chapter 11 protection, the Wall Street Journal reported. It's also looking for a buyer for its Chinese units, which aren't included in the U.S. bankruptcy case.
The company has lined up a $79 million leading bid for most of its U.S. assets from Maschhoffs LLC, a Carlyle, Ill., hog production network, according to papers filed with the U.S. Bankruptcy Court in Wilmington, Del. The offer, which is subject to court approval, would be tested at a court-supervised auction.
The company's U.S. operations brought in $244 million in revenue in 2012, court papers stated.
The company has been involved in a dispute with Hormel that led to an arbitration award of $7.9 million against AgFeed earlier this year. This decision spurred an event of default under the company's $68.5 million credit facility, which matured in February and hasn't yet been repaid.
AgFeed and Hormel have since reached a settlement and have agreed to wind down their business relationship by the end of 2013. 

Synthetic amino acids can reduce chicken, hog producers' carbon footprints

One of the best ways for producers of non-ruminant animals to reduce their carbon and nitrogen footprints is through use of amino acids, Dr. Jonathan Goodson told attendees at day one of the Animal Ag Sustainability Summit, held January 28 in conjunction with the 2013 International Production & Processing Expo in Atlanta, Ga.
Close to 50 percent of all soybean meal produced is used for chicken feed, while another 25 percent is used to feed hogs, said Goodson, Evonik’s manager of consulting services. But soybeans have a significant global warming potential, he said, when a person looks at the amount of carbon dioxide produced. Citing various literature sources, Goodson said the global warming potential for corn is about a 0.017 CO₂ equivalent per kilogram, while it is a 0.721 equivalent per kilogram with soybeans.
Keeping that in mind, Goodson said it is clear that choosing a corn ration over a soybean-based ration would reduce the global warming potential. However, grain supplies may affect the type of commodities a feeder chooses.
But using a mix of synthetic amino acids can help feeders be more efficient and more environmentally friendly. “Swine, poultry and you do not require protein," said Goodson. "A lot of people think they do, but they don’t. They require amino acids."
When dietary protein is digested, it is mostly broken down into amino acids, he said. But the problem is that amino acids have to be present in exactly the right amount, at the right time for animals to make protein. If the correct amount of amino acid is not present at the right time, Goodson said, protein synthesis stops.
Feed ingredients do not typically provide the correct amounts of amino acids required for protein synthesis, so in order to meet the animal’s needs for muscle growth, without synthetic amino acids, producers have to overfeed.
When you overfeed protein to get those other amino acids, and they are broken down, that takes a lot of energy. Also, a major breakdown product of amino acid is nitrogen. Excessive nitrogen is particularly bad for chickens, he said, as it ends up forming ammonia. High levels of ammonia and wet litter can be very bad for the birds, especially if the nitrogen is up to 0.10 parts per million. Consequences of high nitrogen levels include causing the birds to become blind and develop lesions on their feet.
But adding synthetic amino acids such as methionine, threonine and valine can significantly improve feed efficiency, he said. Studies show that over a 50-day period, a bird weighing 7.3 pounds ate on average 14 pounds of feed.
He also showed, that with the proper mix of amino acids, a poultry processing plant that processes a million plants a week could see a net reduction of 185,000 kg of carbon dioxide global warming potential per week. “If you can reduce the global warming potential at one complex, that dramatically reduces your carbon footprint, and it really enhances sustainability,” said Goodson.

Itochu invests in Canadian hog industry

Japanese food conglomerate, Itochu Corp. announced it acquired a 33.4 percent stake in HyLife Group, one of Canada’s leading pork producers.
HyLife is an integrated hog producer (from genetics, live production, feed mill to pork processing). Taking advantage of its integrated production system, HyLife supplies pork to markets around the world. It also supplies value-added specialty pork to the Japanese market meeting customer requirement by differentiated feeding.
HyLife is looking to expand its pork products in Japan and Asia through Itochu’s marketing network with a focus on China where consumption continues to grow. In the Chinese market, Itochu will expand the business with Longda Foodstuff Group, a partner of Itochu, through technical exchanges in the field of pig production.

US hog inventory up slightly at start of September

U.S. inventory of all hogs and pigs on September 1 was 67.5 million head, up slightly from September 1, 2011, and up 3 percent from June 1, 2012, according to the U.S. Department of Agriculture's latest quarterly report.
Breeding inventory, at 5.79 million head, was down slightly from 2011 and down 1 percent from the March–May quarter. Market hog inventory, at 61.7 million head, was up slightly from 2011 numbers and up 3 percent from last quarter.
The June–August pig crop, at 29.3 million head, was down slightly from 2011. Sows farrowing during this period totaled 2.89 million head, down 1 percent from 2011. The sows farrowed during this quarter represented 49 percent of the breeding herd. The average pigs saved per litter was a record-high 10.13 for the June–August period, compared to 10.03 in 2011. Pigs saved per litter by size of operation ranged from 7.6 for operations with 1–99 hogs and pigs to 10.2 for operations with more than 5,000 hogs and pigs, according to the USDA.
U.S. hog producers intend to have 2.85 million sows farrow during the September–November quarter, down 3 percent from the actual farrowings during the same period in 2011 and down 1 percent from 2010. Intended farrowings for December–February 2013, at 2.82 million sows, are down 1 percent from 2012 and down 1 percent from 2011.
The total number of hogs under contract owned by operations with over 5,000 head, but raised by contractees, accounted for 47 percent of the total U.S. hog inventory, up from 46 percent in 2011.

US hog supplies to drop, prices to increase in 2013

U.S. hog farmers have slaughtered 73.3 million hogs in the first eight months of 2012 (the most in three years) to help control costs in the wake of increased feed prices, leading to predictions of lowered pork supplies and increased prices in 2013, according to the U.S. Department of Agriculture.
Per-capita pork supplies are expected to drop to 45.2 pounds in 2013, the lowest since 1975, according to the USDA. Crop damage caused by the U.S. drought has led to record-high corn prices, and pig farmers expect to lose roughly $44 per head in the fourth quarter of 2012, the most since 1998. Many farmers are processing their herds early to avoid heavier losses later. Producers may receive about $56 per hundredweight for hogs in the fourth quarter, and the cost of production is estimated at about $72.29 per hundredweight, said Chris Hurt, an agricultural economist at Purdue University. That means farmers may earn $151.20 for a 270-pound hog that costs $195.18 to produce.
Lean-hog futures for July 2013 delivery are trading at 97.3 cents per pound compared with 74.65 cents for December 2012, a sign traders are already anticipating fewer supplies in 2013, say analysts.

Pig costs up, prices down as US drought impacts producers

U.S. hog producers are seeing increased feed costs and decreased pork prices, a combination resulting in some farmers selling their stock at a loss.
Corn on the futures market is at nearly $8 per bushel through summer 2013, roughly a 50-percent increase over prices before the drought that has hit the U.S. all season. At the same time, hog prices have dropped significantly, falling nearly 30 percent in the last six weeks due to an oversupply moving from farms to market. For the week ending September 14, pig producers lost an average of $36.15 per head, down roughly $7.00 from the week before when margins averaged a $29.00-per-head loss. One month prior to that pork producers were gaining $14.76 per head, and for the same period in 2011, producers were profiting by $11.77 per head.
The oversupply is coming from farmers who are trying to manage their costs by decreasing the size of their herds. "That's probably caused some producers to sell hogs a little bit sooner than they otherwise would," said Ron Plain, an agricultural economics professor at the University of Missouri. "To try to get them off the feed bill and that's probably impacted a bit on why we've had so many hogs to slaughter here in the last few weeks." Feed costs for pigs placed into the finishing unit as of September 14 is estimated at $136.32, according to Sterling Marketing. At the same time in 2011, that cost was $112.58.
In the short run, these lower prices might be good news for consumers, as wholesale prices have dropped 15 percent since mid-August, according to analysts. Lower prices should stimulate demand for pork, which may ultimately lead to better hog prices — but farmers say anything like that is still a long way off.

Hog producer enters receivership due to high feed costs

Canadian hog producer Big Sky Farms has entered receivership due to high animal feed prices caused by the ongoing U.S. drought, according to reports. An outside party will control the company until it can restructure its debt or be sold; Big Sky Farms has said it has no plans to lay off staff or liquidate its pig inventory.
The company has been losing C$40 (US$41.01) to C$50 (US$51.27) on every hog it sends to market, said Chief Executive Casey Smit, leaving the company with few options. Big Sky Farms filed for bankruptcy protection in 2009 when feed costs increased to similar levels and restructured its business.

US hog slaughter up in 2011

U.S. commercial hog slaughter totaled 110.9 million head in 2011, 1 percent higher than 2010 with 99.2 percent of the hogs slaughtered under federal inspection, according to data from the latest U.S. Department of Agriculture report.
The average live weight in 2011 was up 3 pounds from 2010 at 275 pounds. Total pig meat production for 2011 came in at 22.599 billion pounds, compared to 2010's 22.275 billion pounds. Barrows and gilts comprised 96.9 percent of the total federally inspected hog slaughter.
Pig meat production in March 2012 totaled 1.99 billion pounds, down 3 percent from 2011 numbers, according to the USDA. Hog slaughter totaled 9.52 million head, down 4 percent from March 2011. The average live weight was up 1 pound from 2011 numbers, at 279 pounds.

US hog inventory up 2 percent

U.S. inventory of all hogs and pigs on March 1 was 64.9 million head, up 2 percent from March 1, 2011, but down 2 percent from December 1, 2011, according to the latest U.S. Department of Agriculture report.
Breeding inventory, at 5.82 million head, was up 1 percent from the same time in 2011 and up slightly from the previous quarter. Market hog inventory, at 59.1 million head, was up 2 percent from the same time in 2011, but down 2 percent from October through December of 2011.
The December 2011–February 2012 pig crop, at 28.7 million head, was up 3 percent from 2011. Sows farrowing during this period totaled 2.88 million head, up 1 percent from 2011. The sows farrowed during this quarter represented 50 percent of the breeding herd. The average pigs saved per litter was a record high 9.97 for the December 2011–February 2012 period, compared to 9.8 the previous year. Pigs saved per litter by size of operation ranged from 7.3 for operations with 1–99 hogs and pigs to 10 for operations with more than 5,000 hogs and pigs. 

UK initiative moves hog producers towards precision pig farming

A UK initiative that started in 2009 to help pig farmers improve their performance, using developments in IT and monitoring expertise, has come to fruition with the simultaneous launch of two major projects with a total funding of £459,000 (US$725,404). The first, called PIVIT Yorkshire (Pig Improvement via Information Technology), involves 12 production sites in Yorkshire and is 50 percent funded by the UK government and the European Union through the Rural Enterprise Investment Programme. The rest of the funding is being provided by the producers taking part in the projects. Supported by the British Pig Executive, National Pig Association and Wm Morrison Supermarkets and managed by Reading-based farm energy specialists, Farmex Ltd., the aim is to find out how producers and stock-people can gain commercial advantage from remote monitoring of production sites. The farms and farming organizations involved are Yorkwold Pigpro, Driffield; J C Lister Farms Ltd., Boroughbridge; T A & J B Stephenson, York; Middlecave Ltd., Richmond; and Melrose Pigs Ltd., York. The project is scheduled to take place over a two-year period with quarterly reports to a management committee. “The objective is to focus on the people involved and find out how commercial advantage can be routinely gained from remote monitoring of production sites using existing tools and knowledge,” said Farmex managing director Hugh Crabtree. “This will be achieved by a combination of training, knowledge transfer and technical support.” The second project under the Technology Strategy Board — Sustainable Protein Production program, also managed by Farmex, aims, over a three-year period, to develop new IT tools to automate data analysis and simplify access to it. This is partly sponsored by the Technology Strategy Board with the remaining funding coming from consortium partners Farmex Ltd.; Dicam Technology Ltd. of Halesworth, Suffolk; and ARM Buildings Ltd., Rugeley, Staffordshire. Newcastle University will provide data analysis through its industrial statistics research unit, while ARM Buildings will provide a stream of data from practical pig units and its environment specialist Tim Miller will act as on-farm coordinator. Over the past 10 years, the Reading company has developed sophisticated and world-leading control and monitoring systems for piggeries and crop stores. Sensors are used to monitor vital factors, such as temperature, electricity, water and feed usage, and can transmit information to a farm’s computer for analysis on a 24-hour basis. This provides producers with advanced warning if something is going wrong, as well as helps predict impending disease issues and save energy. “Modern IT systems offer great potential to benefit animal performance and welfare by real-time data collection, timely alerts of day-to-day husbandry problems and focused reports to aid more strategic management decisions," said Sandra Edwards, professor of agriculture at Newcastle University and a member of the PIVIT Initiative team. "These two projects will allow practical systems to be further developed and their value to the pig farmer to be clearly demonstrated.”

US hog inventory up 2% from 2010 numbers

U.S. inventory of all hogs and pigs on December 1 was 65.9 million head, up 2% from the same time in 2010 but down 1% from September 1, 2011, according to the U.S. Department of Agriculture's latest report. Breeding inventory, at 5.80 million head, was up slightly from 2010 numbers, but down slightly from the third quarter of 2011. Market hog inventory, at 60.1 million head, was up 2% from 2010, but down 1% from July–September 2011. The September–November 2011 pig crop, at 29.0 million head, was up 2% from 2010. Sows farrowing during this period totaled 2.89 million head, up slightly from 2010 numbers. The sows farrowed during this quarter represented 50% of the breeding herd. The average pigs saved per litter was a record-high 10.02 for the September–November period, compared to 9.89 during the same time in 2010. Pigs saved per litter by size of operation ranged from 7.40 for operations with 1-99 hogs and pigs to 10.10 for operations with more than 5,000 hogs and pigs. 

Smithfield Foods fiscal first quarter income up

Smithfield Foods Inc.'s fiscal 2012 first quarter net income came in at $82.1 million, up from 2011's $76.3 million, according to the company's latest report.
Operating profits for fresh pork, packaged meats and hog production were all up over 2011 numbers, at $35.4 million, $101.3 million and $69.7 million, respectively. The packaged meats sector was a particular success for the company. "We are supporting our packaged meats business by boosting our sales and marketing budget to activate our brands and fuel innovation to bring us closer to our consumers," said C. Larry Pope, president and CEO. "This is promoting growth and strengthening our position in many important product categories, including bacon, dinner sausage, hotdogs and portable lunches."
Looking forward through the fiscal year 2012, Smithfield Foods plans to grow the company's packaged meats business and target 3% sales volume growth.

US, Canada hog inventory up for June 2011

Canada's total inventory at the beginning of June was 11.9 million head.

U.S. and Canadian inventory of all hogs and pigs for June 2011 was 76.9 million head, up 1% from June 2010 but down 3% from June 2009, according to the U.S. Department of Agriculture's latest report.
The breeding inventory, at 7.10 million head, was down slightly from 2010 but up slightly from last quarter. Market hog inventory, at 69.8 million head, was up 1 percent from last year and up 2 percent from last quarter. The pig crop, at 35.7 million head, was down slightly from 2010 and down 2% from 2009. Sows farrowed during this period totaled 3.56 million head, down 2% from 2010 and down 5% from 2009.
U.S. inventory of all hogs and pigs on June 1, 2011, was 65 million head. This was up 1% from the same time in 2010 but down 3% from 2009. The breeding inventory, at 5.80 million head, was up slightly from 2010 and last quarter. Market hog inventory, at 59.2 million head, was up 1% from 2010 numbers and up 2% from last quarter. The pig crop, at 28.9 million head, was up slightly from 2010 but down 1% from 2009. Sows farrowed during this period totaled 2.88 million head, down 2% from 2010 and down 5% from 2009.
Canadian inventory of all hogs and pigs on July 1, 2011, was 11.9 million head. This was up 1% from the same time in 2010 but down 1% from 2009. The breeding inventory, at 1.30 million head, was down 1% from 2010 and last quarter. Market hog inventory, at 10.6 million head, was up 1% from 2010 and last quarter. The pig crop, at 6.8 million head, was down 3% from 2010 and down 7% from 2009. Sows farrowed during this period totaled 678,000 head, down 4% from 2010 and down 8% from 2009.

The Maschhoffs to acquire majority of NPP hog production assets

Carlyle, Illinois-based pork producer The Maschhoffs LLC has made an agreement with NPP LLC to purchase the majority of NPP's swine production assets, including approximately 50,000 sows, associated inventory and related market hog production.
The deal also includes NPP production facilities in Nebraska, Iowa and South Dakota. Representatives from both companies said they expected a smooth transition, calling the deal a natural fit due to the similar operating philosophies and values of the two organizations. The transaction is expected to be completed by the end of the first quarter of 2011. The exact terms of the deal were not disclosed.

Indiana addresses PRRS with reconvened swine health committee

The state of Indiana has reconvened its Swine Health Advisory Committee to address porcine reproductive and respiratory syndrome, which the state's Board of Animal Health has said is a growing problem across North America.
The board took the opportunity to gather members for the committee at a recent meeting it held to discuss PRRS. “We decided the time was right for the BOAH to host this meeting,” said Indiana state veterinarian Bret D. Marsh. “Since we last hosted a PRRS meeting, five or six years ago, we have seen many changes in the industry, in research and in the regulatory side of things to indicate now is the time to reevaluate how we handle this disease."
The committee will serve as a sounding board for industry suggestions or project proposals and will advise the BOAH on matters of regulatory action.

GIPSA finds evidence of JBS USA Packers and Stockyards Act violations

The U.S. Department of Agriculture's Grain Inspection, Packers and Stockyards Administration (GIPSA) has filed a complaint against JBS USA LLC for alleged violations of the Packers and Stockyards Act.
The complaint alleges that JBS used an electronic probe known as the Fat-O-Meat'er to calculate the lean percent of processed hogs to adjust carcass merit payment to hog sellers. On occasion, this meter would fail, resulting in missing data that was never accounted for. This led to reduced payments for hogs delivered to various JBS plants by an estimated $350,000 between Jan. 1, 2007 and Nov. 30, 2007.
If the allegations are proven, JBS will be ordered to cease and desist the actions resulting in the violations and will be assessed a civil penalty.

Manila to get modern slaughterhouse, egg processing plant

Philippines Agriculture Secretary Bernie Fondevilla told a recent convention of the country’s hog producers that plans are on track for a modern slaughterhouse at a Bureau of Animal Industry compound in metro Manila. The facility will be able to slaughter 50 pigs per hour, the Manila Bulletin reported.
Fondevilla added that a private company is planning to establish a 900-square-meter egg processing plant outside the metro Manila area.
According to the Manila Bulletin, poultry production rose 1.82% and livestock production rose 1.2% in 2009, and animal agriculture accounts for 26% to 28% of the country’s annual agricultural production.

AgFeed Industries announces IPO

AgFeed Industries Inc., a U.S hog production and animal nutrient company with primary operations in China, announced the proposed sale of up to 20% of its animal nutrients feed subsidiary via an initial public offering of the subsidiary's common stock. The U.S. Securities and Exchange Commission must declare the company’s filing effective before any common stock sales may occur. The company seeks to raise $20M to $25M.
Songyan Li, AgFeed's chairman, said "the IPO reflects our board's desire to provide dedicated capital to our animal nutrient business to develop its presence in other segments of the animal nutrition market, specifically the compound feed and concentrated feed markets, which together comprise 95% of China's expanding production."

Guangzhou to close live pig wholesale markets

Southeastern China’s Guangzhou city will shut down live pig wholesale markets in 2010, in order to improve quality control on hog production, slaughtering and sales, according to a report from Southern Countryside Paper.
Under the new policy, live pigs will be transported from hog farms directly to large-scale slaughterhouses, skipping hog wholesale trade markets that cause difficulties in product traceability, the report said.