Monday, December 3, 2012

Philippines bans Australia poultry imports due to avian flu outbreak


    The Philippines Department of Agriculture has temporarily banned the importation of poultry and poultry products from Australia due to a reported outbreak of highly pathogenic avian influenza in the country, according to reports.
    The ban covers domestic and wild birds, including poultry meat, day-old chicks, eggs and semen, originating from New South Wales. The department also mandated that its veterinary quarantine officers in all major ports halt and confiscate all shipments of poultry and poultry products, with the exception of heat-treated products, from New South Wales.
    The affected birds in Australia are free-range layer hens, according to the World Organization for Animal Health. A restricted area of 1-kilometer diameter surrounded by a 9-kilometer diameter control area has been established around the property, which is under quarantine restriction. Tracing is underway, and depopulation is complete, according to a report sent to the organization. Surveillance is continuing and no further signs of disease have been reported.

Grain prices to rise in first half of 2013


    Grain prices are predicted to rise in the first half of 2013 before dropping in the second half as production recovers from 2012 weather challenges and creates a global surplus, according to Rabobank.
    While prices have fallen somewhat from their summer highs, Rabobank said they need to rise again to slow demand and offset currently limited supplies. The high prices will in turn increase production, "resulting in a rebalancing of fundamentals and weaker price outlook in the second half of 2013," said the bank.
    Chicago Board of Trade corn prices are predicted to average $7.90 per bushel in the first quarter of 2013 and then fall 24 percent to $6 per bushel during the U.S. harvest in the fourth quarter of 2013. Front-month December corn on November 28 traded around $7.60 per bushel on the Chicago Board of Trade.
    Soybean prices are expected to average $14.75 in the first quarter of 2013 before falling almost 12 percent to $13 in the fourth quarter of 2013, according to Rabobank predictions. Nearby January soybeans on November 28 traded around $14.45.
    Chicago Board of Trade wheat prices are forecast to reach $9.10 in the first quarter of 2013 and then fall 23 percent to $7 by the fourth quarter of 2013. Nearby December wheat on November 28 traded around $8.80.

California egg farmers challenge Proposition 2 in state court


      The Association of California Egg Farmers has been trying since Proposition 2’s passage four years ago to get resolution on what type of hen housing meets the law’s requirements.
    The Association of California Egg Farmers filed suit on November 16, 2012, in Fresno County Superior Court asking the court to find that the language of Proposition 2 is unconstitutionally vague according to California law. The association contends that the law's lack of clarity in size and density requirements for housing laying hens prevents egg farmers from modifying their housing facilities in time to comply with the January 1, 2015, implementation date.

    Prior legal challenges
    Proposition 2 has already has faced two court challenges. The first unsuccessfully tried to clarify the type and dimensions of housing for hens required by the law, and the second lawsuit, filed by egg producer William Cramer, challenged Proposition 2 under the U.S. Constitution. The Cramer lawsuit was dismissed by a federal judge with prejudice in September. In his ruling, U.S. District Judge John Walter wrote, "The court concludes that the Proposition 2 is not impermissibly vague in all of its applications, or even in a single application, as argued by plaintiff. Proposition 2 provides a person of ordinary intelligence more than a reasonable opportunity to know what is prohibited and provides explicit and objective standards to prevent discriminatory enforcement." The Association of California Egg Farmers tried unsuccessfully to intervene in Cramer's suit and now challenges Proposition 2 under the California Constitution. Dale Stern, attorney for the Association of California Egg Farmers, explained that the standard of proof for a void for vagueness challenge is different under the California constitution than it is under the federal constitution in some respects. “Challenging under the federal constitution on a charge of void for vagueness means you have to allege and prove that the statute is vague in all of its applications,” Stern said. “Under the California Constitution, you have to allege and prove that the statute is vague under all of its reasonable and practical applications. The burden of proof is different. In some cases it isn’t more or less; it is just different.”

    Asking for clarity
    Stern said that if the case survives demurrer from the state, and the Cramer case did not, he expects that the trial wouldn’t be completed until late 2013 or early 2014. Then, even if egg producers prevail, there could be an appeal from the state or another party, such as the Humane Society of the United States. He said that the Association of California Egg Farmers has been trying since Proposition 2’s passage four years ago to get resolution on what type of hen housing meets the law’s requirements. “The lawsuit is the last option,” he said.
    Arnie Riebli, president of the Association of California Egg Farmers, said, "California's egg farmers have spent the last four years attempting to gain a clear understanding of how to comply with Proposition 2, but, unfortunately, we are no closer today to knowing how to comply than we were when the law first passed in 2008. Given the ambiguity in Proposition 2 and the risk of criminal prosecution for violating it, egg farmers have no choice other than to challenge the validity of the law."
    The Cramer lawsuit was dismissed before the Association of California Egg Farmers was allowed to participate, and Stern said that the current lawsuit will be the Association of California Egg Farmers’ first opportunity to make their arguments in court. "With the law taking effect in just over two years, egg farmers cannot afford to wait any longer to begin construction of new hen enclosures, but their dilemma is making a multi-million dollar investment in new housing systems that could end up being considered illegal,” Stern said. “The California Attorney General has been unwilling or unable to take a position on this key point. The State Department of Food and Agriculture commissioned a study at the University of California at Davis, which concluded that the law is unclear. As a result, the Association of California Egg Farmers has no choice but to reluctantly seek invalidation of this poorly drafted proposition."

    Enclosure size hinges on an assumption
    Stern said that the University of California’s expert told the state Department of Food and Agriculture, “I can’t tell you because it is ambiguous, but if we assume that only one bird at a time needs to be able to perform the pirouette behavior than here is the math to figure out how much space you need.”
    Stern contends that the key defect in Proposition 2’s language is the assumption that only one bird needs to be able to perform the behavior at a time. He said that the judge needs to tell the industry that the law is either ambiguous, or if the ruling is that the law is “crystal clear,” the judge needs to say what the law means. “The key ambiguity of Proposition 2 is how many birds need to be able to perform the prescribed behaviors at the same time,” Stern said.

    Shipping eggs into California
    When asked whether or not Proposition 2’s requirements for housing hens could be enforced on egg producers outside of California who want to sell eggs in California, Stern used the example of standards that have been set for milk sold in California. “There are dairy requirements that make it difficult for producers outside of California to send milk into the state based on food safety, health and wholesomeness,” Stern said. “That law is challenged from time to time. So far it has survived. But it is not a slam dunk each time it is challenged.” He said that he wouldn’t be surprised if sometime around January 1, 2015, an out-of-state interest tried to challenge Proposition 2’s requirements for out-of-state egg producers. Stern said that he wouldn’t predict how that legal challenge might turn out, but said that it “wouldn’t be a slam dunk either way.”
    “This of course concerns the California [egg] industry,” Stern said.

UK's Bacton Pigs downsizing due to economic challenges


    UK farming business Bacton Pigs Ltd. has withdrawn its agreement to produce breeding stock and genetics for DanBred International because “economic pressures and external challenges” have forced a change in management policy, according to the company.
    Bacton Pigs plans to downsize operations as a consequence of increasing feed prices, rising input costs and herd health issues. However, a spokesman for the company said he believed that DanAvl genetics (DanBred breeding stock) had a great deal to offer UK pig producers in terms of improved herd performance and sow productivity. UK and Irish herds can still source high-health DanAvl breeding stock from registered herds, and can also obtain semen direct from artificial insemination centers in Denmark.
    Peter Marager, business manager for DanBred International in the UK, said the company still had huge potential in the UK. “Herds using our breeding stock have seen definite benefits in terms of productivity and production costs savings," he said. "We have a proven and consistent track record, and we believe there is a place for DanAvl genetics in this market. We are actively seeking further multiplication contracts and hope to expand our market share during the next few years."

Vietnam pig producers looking to improve, expand globally


      The Vietnamese delegation to EuroTier in November included (from left): Nguyen Cong Phuong of Japfa Comfeed Long An Ltd., Nguyen Thanh Liem of Proconco and Nguyen Phuong Duy of Proconco.
    Vietnam pig producers were out in force at EuroTier 2012 looking for new products, ideas and expertise to help their country’s local pig enterprises improve and grow.
    The delegation included Nguyen Cong Phuong of Japfa Comfeed Long An Ltd., Nguyen Thanh Liem of Proconco and Nguyen Phuong Duy of Proconco, who together represent more than 21,000 sows, two feed mills and a slaughterhouse in Vietnam.
    Over lunch during EuroTier in Hanover, Germany, in November, they told Pig International that their pig producers needed Western companies “to come in and help us reduce mortality rates and increase production with better management expertise, veterinary care, health and safety know-how and genetic improvement.” They said that traceability was also becoming increasingly important in Vietnam. In addition, the slaughterhouses needed to be modernized and become more sophisticated.
    “We have four million sows and 28 million pigs in Vietnam, with 65 percent in ‘backyard systems’ and 35 percent in commercial units at the moment, but there is a definite move towards bigger commercial-scale farms at the moment," said the delegation. “We know we need assistance to secure our future in the pig industry.”
    The producers, who were the guests of the specialist natural feed additive business Olmix at EuroTier, said there was a high demand for meat in Vietnam and they expected bumper growth in future. However, they said that the country would still have to depend on pork imports for the next few years, while their government developed new policies to help local farming enterprises and encourage sustainability.
    At present, Vietnamese consumers are buying frozen pork from China because the fresh, locally produced meat, which they prefer, is more expensive. According tot he delegates, this was due to the cheaper raw materials the Chinese were able to import from the West for processing in China. This was hitting local Vietnamese producers hard, said Thanh Liem, but he said he was confident that the situation would change within a few years, as long as Western countries continued to help Vietnam upgrade its production facilities and supply chain management, as well as its food safety and health status.

Friday, November 30, 2012

FAO to invest in Equatorial Guinea poultry farming


    The government of the Republic of Equatorial Guinea and the Food and Agriculture Organization of the United Nations have signed an agreement that calls for the FAO to invest US$3 million over three years to develop poultry farming in rural Equatorial Guinea.
    This investment is part of the government's efforts to develop the country's agricultural sector and create income-generating activities in rural and urban areas. The goal of the government and the FAO is to develop a family-based poultry industry that employs modern practices. The program will provide training and resources for feeding and care of poultry stock, vaccination against diseases and general veterinary care.
    Miguel Oyono Ndong Mifumu, agriculture minister of Equatorial Guinea, and Athman Mravili, Malabo representative of the FAO, signed the agreement. "The goal of this government program is to develop the agricultural regions of the country," said Ndong. "This agreement will have a positive impact in rural areas by supporting the work of its people."
    The agreement provides training in the provinces and extension and implementation of a system to deliver critical pharmaceuticals.

US turkey production continues up in third quarter


    U.S. turkey meat production in the third quarter of 2012 was 1.48 billion pounds, up 4 percent from 2011, according to the U.S. Department of Agriculture's latest report.
    The increase was due in almost equal parts to an increase in the number of turkeys slaughtered and to gains in the average weight at slaughter, said the USDA. The number of turkeys slaughtered in the third quarter was 63.5 million, an increase of less than 3 percent from 2011; the average weight at slaughter was 29.2 pounds, a gain of just under 1 percent from third-quarter 2011.
    Turkey meat production in the fourth quarter of 2012 is forecast at 1.55 billion pounds, which again would be a substantial increase from the same period a year earlier, up 3.7 percent, according to the USDA. Most of this increase is expected to come from a higher number of turkeys slaughtered, with only small gains in average weights. Turkey production in 2013 is forecast at 5.79 billion pounds, which would be a decrease of 3 percent from 2012 numbers. The decline in turkey production is expected to come from the combination of high feed prices, larger beginning stocks and lower year-over-year prices for whole birds in fourth-quarter 2012 and in the first half of 2013.

    Turkey cold storage
    Relatively strong turkey meat production increases in the second and third quarters (up 2 and 4 percent) boosted cold storage holdings of turkey to 521 million pounds at the end of September, up 2 percent from 2011 numbers, according to the USDA report. The growth in overall stocks of turkey products hides a disparity in the direction of stocks level changes for whole birds compared with turkey products.
    Stocks of turkey products totaled 217 million pounds at the end of the third quarter, a decrease of 6 percent from the same time in 2011. This stock decrease has been partly due to strong exports of turkey products, especially in the third quarter of 2012. Stocks of whole birds have been moving in the opposite direction — at the end of September, stocks of whole birds were estimated at 305 million pounds, up 9 percent from 2011.
    Overall turkey cold storage holdings at the end of 2012 are forecast at 250 million pounds, about 18 percent higher than in 2011. As with third-quarter 2012, almost all the increase is expected to come from larger holdings of whole turkeys, with little or no increase in stocks of turkey products, said the USDA.