Poultry production in Barbados on road to recovery

Barbados looks likely to produce record numbers of poultry in 2015, according to James Paul, the CEO of the Barbados Agricultural Society (BAS). He asserted to the association’s Annual General Assembly recently that the industry is on the rebound. For the first time, a million broiler chicks were placed in a single month and output has been rising throughout the last year, he said, according to a report from the Barbados Advocate.
Despite the strong performance, the industry remains concerned about imports – not only as a threat of cheaper competition but also because of the employment opportunities that the sector can offer to young Barbadians. The Sandals hotels group recently committed to purchasing local produce, and Paul called on others in the tourism sector to follow their example.
Data from the United Nations Food and Agriculture Organization’s Statistics Division, FAOSTAT indicate that Barbadian chicken meat production in 2013 – the most recent year for which statistics are available - was unchanged from the previous year at 15,354 metric tons. The most recent trade data – for 2012 – show the country does not participate in significant trade in chicken meat, importing just 39 metric tons and exporting 49 metric tons. For comparison, in 2000, 2,900 metric tons of chicken were imported into Barbados but the volumes have since followed a declining trend.
“I am therefore saying if they can do it, why can’t all of our existing local hoteliers demonstrate a concerted effort to work with the sector to increase their purchases of locally produced agricultural products? If there was ever a time that this is needed it is now because the economic challenges that we face demand it,” Paul said. “It would afford us the opportunity to maximise our tourism earnings by encouraging more expenditure on locally produced items.”

Qatar progressing toward self-sufficiency with poultry

Dar Al Rayyan for Investment has beaten off competition from 33 other companies to be awarded QAR1.3 billion (around US$357 million) by the Qatari Ministry of Economy and Commerce to set up the first private poultry company. According to the newspaper, The Peninsula, the ministry made the award to promote self-sufficiency in poultry as part of a larger strategy to increase food security, which began in April 2015.
With a production capacity of 40,000 metric tons of poultry meat and 7,500 metric tons of eggs per year, the new company aims to lift the level of self-sufficiency from the current 7 percent to 46 percent for chicken meat, and the present 16 percent in eggs to 42 percent.
A statement from the ministry explained that this is a major investment project and the first involving the private sector in the country’s food security program.
A similar project has been launched for dairy products, aiming to reduce milk imports by 20,000 metric tons per year.
According to Zahra Babar in the current journal of the United States-based think tank, the World Policy Institute, Qatar has limited options for domestic agriculture as the result of limitations in its water and arable land, and a harsh climate. As a result, the country imports some 92 percent of its food requirements. This poses an insignificant risk to the small and wealthy country but its leaders consider the position to be a strategic threat in event of any future crisis or global competition, wrote Babar. In the wake of escalating global food prices, a national plan for enhancing the country’s food security was set up in 2008 and the plan was completed 5 years later. Among the foods produced in limited amounts and targeted for increase were vegetables, dairy products, poultry and livestock. The focus in each case is to expand domestic production with care and within existing environmental resource constraints. Also on Qatar’s national agenda is to broaden its choice of trading partners for imported foods.
Earlier in 2015, Hassad Food, the agricultural arm of Qatar's sovereign wealth fund, said it was looking at possible purchases of Brazilian poultry assets.

Strong market outlook for world’s poultry producers

The global poultry market is benefiting from bullish market fundamentals, according to the latest quarterly report from Rabobank.
In its third quarter report, Rabobank argues that supply is balanced in most regions, beef prices are high and feed costs are low. With China the notable exception, the poultry industry is profitable in almost all the major regions.

Avian influenza still concerning

Avian influenza, however, remains a major concern for the global poultry industry, with new outbreaks of the disease in most regions of the world, except Australia and South America. Despite this concern, the number of outbreaks has been dropping, offering the industry in affected regions some time to recover.
“The performance in most regions is currently improving, but the industry should have optimal biosecurity as its first priority, as avian influenza pressure is still significant," the report stated.
Rabobank animal protein analyst Nan-Dirk Mulder said: “Any new case can have a big impact on regional and global and trade streams, as we have seen in the past few months, in which Brazil and Thailand have taken further market share in global poultry trade from the U.S. and China.”
The longer term outlook for the global poultry industry is also thought to be positive, as grain prices are expected to remain low, and global stock supply will be very low in regions with avian influenza-related import restrictions, such as China and South East Asia.
The expectation that China will face shortages in poultry and pork supplies next year could especially become a swing factor for the industry.

Market variation

Further spread of avian influenza to key chicken producing areas in the U.S. over the remainder of 2015 is a wildcard, however, margins there are expected to remain strong despite the trade bans.
Strong market conditions are expected to continue in the European Union. The European market is expected to maintain a healthy balance, with restrictive supply growth.
In Brazil, the weak local economy is leading consumers to trade down in meat purchased, and this is raising poultry meat consumption, while in China forecasts suggest that there will be some improvement in poultry markets due to rising pork prices.
Russia is expected to report an improved performance due not only to higher feed costs but also as a result of price support from high beef and pork supply.

Rapid growth in Ecuador poultry meat output

Just two decades ago, Ecuador produced 55 million chickens per year. Now the figure is 220 million chickens, the country’s poultry producer group CNA told TV station Ecuavisa.
The increase – 3 percent annually - is attributed to the low cost of chicken compared to other meats and to improved poultry health.
The province of El Oro is the center of the country’s chicken production, with 60 percent of Ecuador’s birds. Guayas accounts for a further 20 percent and 10 percent are found in Santa Elena and Manabi. All these provinces are in the western portion of the country near to the largest city, Guayaquil.
Annual egg output in Ecuador is reported as 10 billion.
The XXIV Latin American Poultry Congress will be held in Guayaquil from September 8 to September 11.

Hain Celestial achieves record sales in 2015, Q4

Hain Celestial Group, a leading organic products company and parent company of poultry processor Hain Pure Protein, achieved record net sales for fiscal year 2015 and for the fourth quarter.
Hain Celestial, which has operations in North America, Europe and India, also recorded increases in adjusted net income for both periods.
The company’s net sales for the fourth quarter were $691 million, a 20 percent increase when compared to the same period during fiscal year 2014. Net sales for the fiscal year were $2.69 billion, an increase of 25 percent.
For the fourth quarter, Hain Celestial’s adjusted net income was $57.2 million, a 24 percent increase over the same quarter of 2014. It’s yearly adjusted net income for fiscal year 2015 was  $193.9 million, a 22 percent increase for the fiscal year.
The Hain Pure Protein segment in the fourth quarter reported net sales of $118.5 million, which includes the recently acquired Empire brand of kosher foods.
“We ended the year with record net sales and earnings growth fueled by strong worldwide demand for our diverse portfolio of leading organic and natural brands across many product categories, sales channels and geographies,” said Irwin D. Simon, founder, president and CEO of Hain Celestial.

Distribution for the happy egg co. expands in Pacific Northwest

Continuing its mission to make free-range eggs accessible across the United States, the happy egg co. is again expanding its distribution network with the addition of Fred Meyer and QFC locations in Washington, Oregon and Idaho. Free-range eggs from the happy egg co.’s free-to-roam hens can now be found in 126 Fred Meyer locations and 66 QFC locations.
This effort by the happy egg co. helps to meet the growing demand for food that is free of antibiotics and hormones, and comes from humanely raised animals.
“As egg label confusion is still an issue for shoppers, we are excited to continue serving true Free Range eggs now with further distribution in the Fred Meyer and QFC stores,” said David Wagstaff, chief operating officer of Noble Foods, the parent company of the happy egg co. “Our mission is to extend availability of free-range eggs from hens who are raised to a higher standard and free to roam outdoors.”
Eggs from the happy egg co. come from hens, or “the girls,” who are free to roam daily on five acres of lush green pasture, an area equivalent to that of four football fields. This offers an expansive 14 square feet per bird. The hens also have access to plenty of clean water, nutritional feed free of antibiotics and hormones, natural sunlight and care from expert family farmers.
Setting the gold standard for happy, free to roam hens, the happy egg co. is the only 100 percent free-range egg brand with an animal welfare program that covers everything from living conditions to feed and the expertise of the caregivers. The happy egg co. exceeds industry standards, as well as those for organic and cage-free eggs.
Packaged in a sunshine-yellow carton made of 100 percent recycled and compostable material, happy eggs stand out for their color and clarity in the egg aisle. With expanded distribution to Fred Meyer and QFC locations, Free Range eggs from the happy egg co. are now conveniently available in over 2,600 grocery stores across the country.

World poultry production expected to more than double by 2050

“Chicken will be the meat that feeds the people going forward,” said Phillip Wilkinson, managing director, 2 Sisters Food Group. Speaking at the Alltech Symposium in Lexington, Kentucky, he said that poultry meat consumption will soon supplant pork as the world’s most eaten meat.
When discussing the future of broiler production in the world, Wilkinson said that world poultry production is expected to increase by over 120 percent from 2010 to 2050. When discussing the immediate prospect for growth of chicken consumption in China, he said, “Producers in China are expecting per capita consumption of chicken meat in China to go increase from 12 kilograms today to 23 kilograms.”
Much of the world’s increase in poultry production will likely be powered by continued genetic progress resulting from the work of primary breeders. Wilkinson said that Cobb has projected that by 2050 a 2 kilogram (4.4 pound) broiler would be marketed at 19 days post-hatch with a feed conversion ratio below 1.0. In 2050, a laying hen may produce 550 eggs by 100 weeks of age and have a feed conversion ration approaching 1.0. All of these predictions are based on historical rates of improvements that breeders have attained to date. Because grain is 10 percent moisture and the meat is 70 percent moisture, Aidan Connolly, vice president, Alltech Inc., said that the ultimate limit in feed conversion ratio would be 0.35 not 1.0.
Discussing where new areas of the world that will increase broiler production in the future, Connolly, said, “Africa has three things that you can’t make, land, rain and sun. If they can produce corn and beans, then they can produce chicken. The prediction seems to be that Africa will help to feed Southeast Asia.” In discussing other parts of the globe where poultry production is expected to expand significantly, he said, “Where the water is -- Brazil and Africa -- will be where agriculture grows.”
“We see tremendous expansion in India and China,” Connolly said. “We shouldn’t just look at where the most efficient producers are.” He said that some producers in the EU have reinvented themselves by being careful with the markets they serve and working to be more efficient.

Future of growth promoters in poultry production discussed at Alltech Symposium

A panel of more than 12 speakers gave their views on the future of poultry production at the Alltech Symposium.

A seminar dedicated to what the poultry industry can expect from antibiotics as growth promoters was one of the outstanding sessions presented on May 20 during the Alltech Symposium.
At least 12 speakers from the U.S., United Kingdom and Brazil gave their vision of what to expect in poultry production, particularly broilers, until the end of the decade with antibiotic-free production at the Alltech Symposium.
Although it is agreed that antibiotic-free broiler production is more emotional than factual, the reality is that producers have to follow what the consumer asks for. In the consumer's eyes, antibiotics used in sub-therapeutic levels as growth promoters have a negative connotation, in spite of the practical advantages.
One of the speakers pointed out that it has been already a 15-year period since the ban of antibiotics in feeds in the EU. This has brought up quite a dramatic change from the operational and consumer point of view. The latter is particularly important since Grampain, the British retail stores in the UK, publicly announced in 1999 the withdrawal of chickens fed with antibiotics as growth promoters.




Speakers agreed that the industry needs to educate consumers on the difference between vaccination and using antibiotics as growth promoters in poultry.


When talking about their vision of growth promotion, some of the speakers focused on feed-conversion rate and weight gain, as well as how age will result in animals with different efficiencies, but adjusted to what the market asks for. In the last 70 years, most of the gain has been in breast muscle, as chickens have a larger intestine, but a weak physiological structure, such as heart size.
Antibiotics resistance in humans was also discussed. After the ban in the EU, there was a drop in the use of antibiotics used for treatment, but actually not using them in animal production is mainly a consumer preference.
Speakers urged the industry to educate the public to show them that vaccination is not the same as using antibiotics as growth promoters. The industry needs to educate the public that raising an antibiotic-free flock can lead to high mortality, in the first place, and problems with feed conversion, gastrointestinal disorders or stocking density.

USPOULTRY releases videos on poultry production antibiotic use

To help provide answers to how and why antibiotics are used in the poultry industry, U.S. Poultry & Egg Association has created a series of six short videos called Poultry Insight. The videos provide information about antibiotic resistance, antibiotic residues, why and when antibiotics are used, who regulates antibiotic use, and what would happen if the poultry industry stopped using antibiotics.
"USPOULTRY and our members recognize consumers have questions about antibiotics. This series of videos is designed to provide a general overview about antibiotics and antibiotic use in the poultry industry, and we welcome any feedback from consumers who have additional questions," said USPOULTRY president John Starkey.
The videos are a discussion with Dr. John Glisson, retired head of the Department of Population Health at the University of Georgia, and former head of the Department of Avian Medicine and associate dean of Public Service and Outreach at the University of Georgia's College of Veterinary Medicine. Dr. Glisson now serves as USPOULTRY’s Director of Research.
“It is through funds generated by the International Poultry Expo that USPOULTRY is able to develop educational pieces of this type. This video series is only one example of the IPE funds that have been funneled back into the industry over the years. We sincerely appreciate the support of our members and exhibitors that allowed USPOULTRY to develop this information,” said Mark Waller, Ingram Farms, Cullman, Ala., and chairman of U.S. Poultry & Egg Association.

Turkey egg, chicken production up in July

Turkey's egg production reached 1.2 billion units in July, up 1.9 percent compared to June numbers and up 16.8 percent when compared to July 2011, according to the country's latest statistics.
Turkey's chicken production grew to 163,806 tons, up 4.1 percent in July over June and up 9.5 percent over 2011 numbers. Slaughtered chicken reached 101 million units, an 8 percent increase on June numbers and an 11.6 percent upswing when compared to July 2011, according to TurkStat.

US egg production rises first half 2011

US table egg production was up and hatching egg production was down for the first half of 2011.

In the first half of 2011, production of table eggs was 3.3 billion dozen, up about 1% from the first half of 2010, according to the U.S. Department of Agriculture. However, production of hatching eggs fell by 0.7% compared with 2010 numbers.
The decrease in hatching egg production was chiefly the result of the gradual decline in broiler chick production for growout, according to the USDA. Hatching egg production in the first half of 2011 was 532 million dozen. Production of table eggs in the second half of 2011 is expected to be about even with 2010, and production is expected to be lower on a year-over-year basis in the first two quarters of 2012. Production of hatching eggs, especially those from meat-type birds, is expected to decline in the second half of 2011 as broiler chick production continues to be below 2010 numbers.
Even with higher table egg production in the second quarter of 2011, prices for eggs remained strong and averaged almost $1.07 per dozen, up 24 cents from the second quarter of 2010. With little or no growth expected in the second half of 2011, prices are expected to be above 2010 numbers in the third quarter of 2011 at $1.04 to $1.08 per dozen. However, with the weak economy, egg prices in the fourth quarter of 2011 are expected to be lower than 2010 at $1.12 to $1.18 per dozen. The weak economy is expected to provide less of a seasonal boost in prices than in other years.

Animal feed costs biggest challenge for turkey industry

Poultry production costs, including rising animal feed prices, are the greatest challenge for today's turkey industry, said Rick Sietsema, partner and CFO of Michigan-based Sietsema Farms, in a recent testimony to the U.S. Senate Committee on Agriculture, Nutrition and Forestry.
Feed accounts for 70% of the cost of raising a turkey, said Sietsema, and corn accounts for 70% of the feed mix. As corn and other feed prices have increased, so have overall production costs. Changes to the existing ethanol policy would help the industry recover those costs, according to Sietsema. “The turkey industry is looking for reform of the existing ethanol policy, a safety net that ensures corn prices and availability will be less volatile in the future,” he said.
The U.S. Department of Agriculture's Grain Inspection, Packers and Stockyards Administration proposed marketing rule, which was denied funding in the latest 2012 financial legislation, would have a further negative effect on the turkey industry, with an impact of more than $360 million a year, according to Sietsema.

US poultry export forecast up for 2011

The U.S. broiler export forecast increased to an estimated $3.2 billion for 2011.

U.S. poultry export forecasts for 2011 have been raised $100 million to $4.9 billion on higher unit values, despite slightly lower volumes, according to the U.S. Department of Agriculture's most recent report.
This rise is part of a total $1.6 billion increase in the export forecast for livestock, poultry and dairy, which is now expected to reach a record $26.5 billion for 2011. The forecast for broiler meat in particular has increased from $3.1 billion in February to $3.2 billion in May, according to the report. Fiscal year 2010 saw $3.01 billion in U.S. broiler meat exports and $4.62 billion in overall poultry exports.