Chuying Farming invests in 200,000-ton-per-year meat processing plant

Chuying Farming has announced that it plans to invest RMB 177 million in building a 200,000-ton-per-year output meat processing plant in Weishi County in Henan Province, China. The primary products will include both warmed and frozen ham sausage and Chinese-style sauces, according to the company.
The company projects that the sales income of the above-mentioned products will be around RMB 880 million after the plant is finished. After calculating taxes, the annual profit will be around RMB 41 million. Using these rates, it will take 4.1 years for the company to recover its investments in profits, counting a construction time of one year.
Chuying Farming has said that the construction of this project supports Weishi County’s 1-million-head-per-year pig slaughtering project, and part of the additional products from the plant will be consumed locally, so as to save on transportation costs. It will simultaneously integrate the production scale and ensure meat safety. After the project is completed, it will improve Chuying’s industry chain, optimize the company’s production composition and improve the company’s sustainable development, according to Chuying.

US agriculture exports to reach record $145 billion in 2013

Fiscal 2013 U.S. agricultural exports are forecast at a record $145 billion, up $1.5 billion from the August forecast and $9.2 billion above fiscal 2012 exports, according to the U.S. Department of Agriculture's latest report.
The forecast for poultry, livestock and dairy is down $100 million on lower poultry, beef, and cattle exports. Grain and feed exports are forecast down $1.9 billion, mostly due to lower corn exports. Oilseed exports are up $3.3 billion on much higher volumes and record prices, while cotton exports are forecast down $200 million in part due to reduced Chinese demand. Horticultural exports are unchanged at a record $32 billion.
U.S. imports are also projected to hit records, at $115 billion in fiscal 2013, up 11 percent from 2012’s imports of $103.4 billion but down $2 billion from the August forecast for 2013. The reduced forecast for 2013 is largely due to significantly lower prices for tropical oils, processed fruits and vegetables, sugar, coffee, rubber and cocoa, according to the USDA.

Poultry, livestock, dairy
The fiscal 2013 export forecast for poultry, livestock and dairy is lowered $100 million to $29.8 billion, with losses in poultry, beef, and cattle outweighing gains. Despite higher broiler meat exports, poultry exports are forecast down $100 million to $6.1 billion, due to lower unit values and volumes for turkey meat and poultry offals. Beef exports are forecast at $4.8 billion, down $150 million as marginally higher prices do not offset slightly lower volumes. Tight supplies on lower U.S. production constrain shipments despite strong global demand. Exports of dairy products are forecast higher by 4 percent to $5 billion as stronger international prices are expected to offset lower volume sales, particularly of cheese, skim milk powder, and butterfat, said the USDA report.
Although reduced $100 million from August, the beef import forecast for 2013 shows a 13-percent gain in import value over 2012 as domestic beef supplies tighten and demand for processing-type beef remains strong. Fewer cattle imports are expected in 2013 as cattle inventories in Mexico are lower and herds are rebuilt in Canada. However, the forecast is unchanged from August. The pork import estimate for 2013 is lowered $30 million from the August forecast to $1.3 billion because of relatively tight exportable supplies in Canada, the top U.S. supplier. Similarly, expected swine imports are trimmed by $24 million. 

China grandparent egg breeder imports down in 2012

As China has developed and promoted its local-brand egg breeders, the proportion of domestically produced grandparent egg breeders used in China is gradually increasing, from 31 percent in 2006 to 48 percent in 2011, leading to a decrease in imports. According to China Poultry Industry Association statistics, the number of grandparent egg breeders imported in January–August 2012 was 82,446, one-third of what was imported in 2011.
Another reason for the reduction in imports is the fact that the profit that comes from raising them is rather small. From September 2011 to June 2012, chicken egg prices have been continuously falling. In the first half of 2012, the profits from chicken eggs were negligible. After June, in spite of the increase in chicken egg prices, feed prices also increased, causing profits to remain meager. According to experts, it's possible that breeders were cautious in re-filling their stocks.

National Council of Chain Restaurants urges renewable fuel standard repeal

The National Council of Chain Restaurants is urging a repeal of the U.S. Environmental Protection Agency's renewable fuel standard based on a 32-page report it commissioned that shows the mandate could cost chain restaurants up to $3.2 billion annually.

According to the report, quick-service restaurants could see cost increases up to $2.5 billion, and full-service restaurants could see increases upward of $691 million. “The use of corn-based ethanol required by the federal renewable fuel standard mandate has dramatically distorted the market and increased costs throughout the food supply chain,” said National Council of Chain Restaurants Executive Director Rob Green. “The RFS has had an adverse effect on the chain restaurant industry, which has witnessed marked increases in commodity prices and associated costs to the tune of billions of dollars a year.”
According to Green, The mandate artificially inflates the price of corn, which increases costs throughout the system, from cattlemen and poultry and pig  producers to dairy farmers and restaurant operators. “The RFS mandate forces small business owners, franchisees and their suppliers to spend higher and higher sums on commodities, which ultimately drives up prices on the end-user, the consumer.”
The study was conducted by PwC US, which reviewed public and private reports and combined these findings with chain restaurant survey data to calculate the overall cost of the renewable fuel standard mandate to chain restaurants. 

National Pork Producers Council responds to allegations of unlawful lobbying

The National Pork Producers Council has responded to allegations from the Humane Society of the United States regarding unlawful checkoff lobbying, saying that there appears to be no legal merit to the claim, according to reports.
The Humane Society filed a complaint with the U.S. Department of Agriculture's Office of the Inspector General, asking for an investigation into the National Pork Board's potential use of checkoff dollars to support the council's lobbying efforts. “This is the latest bullying tactic by the HSUS in its efforts to force the NPPC to abandon its position on allowing farmers to choose pig production practices that are best for the welfare of their animals," said the council.
"Over the past few months, the HSUS has threatened the NPPC with a Federal Trade Commission complaint; filed notice of its intent to sue a number of hog operations over alleged emissions reporting violations; and charged that the NPPC was responsible for the deaths of hogs in barn fires because the organization asked to give input on national fire standards for agricultural facilities. All of the allegations lack merit.”

Cherkizovo net income up 51 percent for nine months 2012

Cherkizovo's net income increased by 51 percent in the first nine months of 2012, to US$158.7 million from US$105 million for the nine months of 2011, according to the company's latest financial report.
"I am pleased to be announcing good nine months results, with a strong third-quarter performance," said Sergey Mikhailov, CEO of Cherkizovo. "It is pleasing to see our nine months' revenues pass the one billion dollar mark (US$1.145 billion, up 6 percent), as active management and a supportive trading environment combined to produce solid growth. We have improved profitability in the poultry and meat processing segments and invested in our pork segment to provide long-term, sustainable growth beyond 2013."

Profit in the company's poultry division increased by 86 percent, to US$101.7 million, in the nine months of 2012. Profit in the meat processing division increased by 87 percent, to US$22.9 million. "The strong poultry results reflect the infrastructure investments Cherkizovo has already made, with impressive volume and revenue growth reflecting strong organic growth and good incremental sales from Mosselprom," said Mikhailov. "Meanwhile, the segment’s substantial improvement in operational efficiency has produced better profitability."
Looking ahead, said the company, the operational environment in the medium term looks more challenging, but Cherkizovo is well prepared, with significantly increased grain storage capacity, enabling the group to benefit from flexible grain procurement. "The company’s diversified operations ensure that we are well placed to benefit from high meat prices at the poultry and pork segments, or low meat prices at the meat processing segment," said Mikhailov.

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.