Distillers' grains substituting for more corn, soybeans in feed

On average, between crop years 2006/2007 and 2010/2011, 1 metric ton of distillers' grains (DDGS) produced for animal feed by U.S. ethanol plants substituted for about 1.22 metric tons of corn and soybean meal combined, according to a report by the U.S. Department of Agriculture.
These findings may result in a net increase in DDGS in animal feed, as over time the amount in beef cattle feed declines but the share in dairy cattle, swine and poultry feed increases, according to the report. "As the market share for beef cattle declined, market shares for dairy cattle, swine and poultry increased," said the report. "Beef cattle’s DDGS substitution rate for corn is higher than any other type of livestock/poultry but is the lowest for soybean meal. Changes in aggregate substitution rates are expected to slow as annual market shares by type of livestock/poultry stabilize."
Corn and soybean meal quantities fed in the U.S. have moderated or declined in recent years, due partly to the substitution of DDGS or other ethanol coproducts (corn gluten feed or corn gluten meal) for corn and/or soybean meal. As of the 2010/2011 crop year, DDGS replaced soybean meal as the number two feedstuff fed, and is second only to corn, according to the USDA.
While ethanol expansion raised the demand for corn, DDGS from the dry-mill production process partially offsets the impact on the feed market. Consequently, the net effect in the domestic feed market of a bushel of corn being used for ethanol production is less than a bushel. For example, the amount of feed (corn and soybean meal) replaced by the DDGS represents about 38% (weight basis) of the corn used in the associated ethanol production process for a given crop year.
According to the USDA, future industry surveys could provide additional information on DDGS substitution for corn and soybean meal, including information on the market share of DDGS consumed by type of livestock/poultry and the substitution rates of DDGS for corn and soybean meal by type of livestock/poultry.

US shell eggs broken down 11% from 2010

Shell eggs broken were down in September but up in the first nine months compared to respective 2010 totals.

U.S. shell eggs broken totaled 176 million dozen during September 2011, down 11% from September 2010 and 3% below the 182 million broken in August, according to the U.S. Department of Agriculture.
During the first nine months of 2011, shell eggs broken totaled 1.567 billion dozen, up 1% from the comparable period in 2010. Through September, cumulative total edible product from eggs broken in 2011 was 2.028 billion pounds, up slightly from 2010 numbers. Of that number, 1.24 billion pounds were whole eggs, 525 million pounds were egg whites and 268.3 million pounds were egg yolks.
For more information on U.S. egg production and prices, see www.wattagnet.com/marketdata.html. 

Russian poultry output gains 4.6% in September

Russian poultry and byproduct output gained 4.6% in September, to 242,000 metric tons, according to Russian Federal Statistics Service Rosstat.
Poultry and cattle output by live weight was up 4.1% from September 2010 numbers, to 900,000 metric tons, said Rosstat. In the first nine months of 2011, production increased 4.4% to 7.1 million metric tons. Pork production gained 10% in September 2011, to 70,600 metric tons, according to Rosstat.

Freedom Food launches online push for layer, broiler welfare

Freedom Food, the UK’s Royal Society for the Prevention of Cruelty to Animals’ farm assurance and food labeling scheme, has launched an online animation called Hettie the Hen.
The cartoon, which can be viewed on the Freedom Food website, is designed to persuade consumers to select eggs from hens that have not been reared in cages. The RSPCA says that the number of consumers in the UK claiming to have bought a higher welfare product over the last four years has doubled. Almost half have said that animal welfare is very important to them when choosing what food to buy. 
Freedom Food has also launched a new online advertising campaign to clarify what its label means and tackle consumer concerns about the way that animals are farmed. The advertisement focuses on chicken and is running across news, lifestyle, food and women's websites.

Brasil Foods numbers up in third quarter 2011

Brasil Foods' net income amounted to R$365 million (US$213.8 million) in the third quarter of 2011, an increase of 73% over 2010 numbers, according to the company's latest report.
The company’s good earnings were driven by operating performance, particularly the meats business, combined with the capture of synergies, said Brasil Foods. This was achieved despite the challenging foreign exchange scenario and the high cost of the main raw materials, both of which contributed to a squeeze on the quarter’s margins.
Domestic market sales revenue reported growth in relation to meats (18.5%) as well as dairy products (8.2%), surpassing the R$3.8 billion (US$2.2 billion) mark, an increase of 14%. The highlight in the period was in processed meat products (industrialized and frozen), which contributed with an increase in sales of about 24%.
Revenues from exports came to R$2.5 billion (US$1.5 billion), 6% higher than in the third quarter of 2010. The performance registered on the Far Eastern, European, Middle Eastern and American markets offset the losses arising from the ban on the Russian market. The exchange rate affected the competitiveness of the company´s products sold on the international market for most of the quarter.
Brasil Foods' investments totaled R$252.6 million (US$147.9 million). Of the total, more than 61.4% was dedicated to projects for productivity, improvements and automation, while 32.6% went to new projects. 

South Africa company testing maggots as alternative animal feed protein

South African company Agriprotein Technologies is testing maggots as a potential alternative animal feed protein for livestock and fish.
According to the company, the common household fly lays up to 750 eggs in its life (up to one month), and 1 kilogram of eggs will turn into 380 kilograms of protein within three days of hatching. One ton of final product requires 5 tons of maggots. "Magmeal works exceptionally well and is an easily convertible protein for livestock and fish," said Elsje Pieterse, of the University of Stellenbosch’s animal science department and a researcher with Agriprotein Technologies. Magmeal also does not contain toxins associated with vegetable proteins, he said.
More research is being done to study cost and availability; the company's small pilot plant is scheduled to be scaled up in 2012 to a trial plant.

Nutreco revenue up in third quarter 2011

Nutreco's revenue came in at €1.54 billion (US$2.14 billion) in the third quarter of 2011, a 14.6% increase over 2010 numbers, according to the company's latest financial report.
Of this increase, 11.7% was due to higher selling prices, related to higher raw materials prices which were passed through. A volume increase of 3.5% was driven by the growth in fish feed, according to the company. Revenue in fish feed increased 19% in the third quarter of 2011 compared to 2010, mainly due to a volume growth of 12.3%. The price effect was 5.3%. Salmon feed volumes increased due to strong performance in Norway and a recovery in Chile.
Overall, Nutreco said its strategic agenda includes capitalizing on its leading fish feed positions and diversifying by expanding in new regions and into feed for shrimp in other species. It also hopes to focus on markets in China, Brazil and Russia, and sell as develop sustainable businesses in Western Europe and North America.