The rising cost of wheat, barley and soya, the main ingredients in pig feed, is expected to push the British pig industry back into the red by the final quarter of 2010, according to a new report from the British Pig Executive (BPEX).
And it warns that, as the grain market is global, other European pig producing nations are also likely to experience hard times in the near future.
“Based on current and forecast prices for wheat, barley and soya, it is anticipated that the cost of English pig production will rise from 137.2p per kg in June this year to 146.35p by November 2010, which means negative returns for every pig slaughtered, subject to future movements of the pig price,” says the report.
It continues that this grim prediction follows reports of the worst drought for 130 years hitting Russian grain crops, which has made the world nervous about the availability of wheat from Russia and the Black Sea region.
There is also concern about the poorer-than-expected yields of barley in Europe and the Black Sea region, as well as robust international demand for soyabean, especially from China, which could push prices up, in spite of an anticipated record US crop in 2010.
Tuesday, August 10, 2010
Monday, August 9, 2010
Japan sees a feed solution to rice surplus
Large quantities of rice stockpiled by the government in Japan may be sold to Japanese feed manufacturers as an alternative to imported maize (corn), says Masachika Murai, director of the rice policy division at the Ministry of Agriculture, Forestry and Fisheries in Tokyo.
Domestic rice consumption has fallen with the decrease in Japan's population and the volume held by growers and distributors is the largest for seven years, so that the government is struggling to sell surplus supplies from its reserve of about one million metric tons.
Japan's feed industry imports 12 million metric tons of maize annually, mainly from the US. Mr Murai suggested that a large part of this corn usage could be replaced by up to 700,000 tons of rice from the government's stores. The industry is ready to use more than a million tons of rice as an alternative to imported corn if the price is affordable, he claimed. It already buys from the government about 300,000 tons per year of rice that has been imported under an agreement by Japan to grant minimum market access to rice-exporting countries.
Domestic rice consumption has fallen with the decrease in Japan's population and the volume held by growers and distributors is the largest for seven years, so that the government is struggling to sell surplus supplies from its reserve of about one million metric tons.
Japan's feed industry imports 12 million metric tons of maize annually, mainly from the US. Mr Murai suggested that a large part of this corn usage could be replaced by up to 700,000 tons of rice from the government's stores. The industry is ready to use more than a million tons of rice as an alternative to imported corn if the price is affordable, he claimed. It already buys from the government about 300,000 tons per year of rice that has been imported under an agreement by Japan to grant minimum market access to rice-exporting countries.
Jump in grain prices causes trouble for Denmark pig farmers
Danish pig farmers are struggling with a jump in grain prices, according to Bloomberg Businessweek.
Denmark is the world's largest pork exporter, with 27 million pigs raised in the country each year. Each pig is fed roughly 200 kilograms (440 pounds) of wheat and barley; feed accounts for two-thirds of production costs. "It's a chaotic situation as many pig farmers are already in debt," said Henrik Mortensen, chairman of the Danish Pig Producers group. "Meat prices will also go up, but there's always a delay of some months, which means that farmes have to rely on the mercy of their banks." More than 5,000 pig farmers are affected by the rise in prices.
Denmark is the world's largest pork exporter, with 27 million pigs raised in the country each year. Each pig is fed roughly 200 kilograms (440 pounds) of wheat and barley; feed accounts for two-thirds of production costs. "It's a chaotic situation as many pig farmers are already in debt," said Henrik Mortensen, chairman of the Danish Pig Producers group. "Meat prices will also go up, but there's always a delay of some months, which means that farmes have to rely on the mercy of their banks." More than 5,000 pig farmers are affected by the rise in prices.
Cambodia bans live pig imports
Cambodia has banned the import of live pigs amidst fears that the animals might be infected with blue-ear pig disease, according to the AFP.
"The so-called blue-ear pig disease is spreading and is now present in Cambodia," said Prime Minister Hun Sen. Outbreaks of the disease had already been reported in the neighboring countries of Thailand, Vietnam and Laos, and now the disease is thought to have already killed hundreds of pigs in Cambodia. Pork is a key source of food and an important commodity in the country; more than 1,000 pigs a day are imported to meet demand and most small family farms in rural areas have at least one pig.
"The so-called blue-ear pig disease is spreading and is now present in Cambodia," said Prime Minister Hun Sen. Outbreaks of the disease had already been reported in the neighboring countries of Thailand, Vietnam and Laos, and now the disease is thought to have already killed hundreds of pigs in Cambodia. Pork is a key source of food and an important commodity in the country; more than 1,000 pigs a day are imported to meet demand and most small family farms in rural areas have at least one pig.
DSM to temporarily shut down vitamin E production
DSM Nutritional Products will temporarily shut down its vitamin E production, according to a company press release.
The facility in Switzerland will close on August 11 for plant maintenance.Vitamin E manufacturing will cease for at least four weeks, but DSM will continue to honor all confirmed orders.
The facility in Switzerland will close on August 11 for plant maintenance.Vitamin E manufacturing will cease for at least four weeks, but DSM will continue to honor all confirmed orders.
Tyson Foods releases latest sustainability report
Tyson Foods has released their latest sustainability report, "Rooted in Tradition. Growing Responsibly," highlighting company achievements in several key areas of their business.
Some areas of focus include water conservation, renewable fuels production and workplace safety improvements. "Sustainability at Tyson Foods is about doing the right thing in all aspects of our business," said Kevin Igli, Tyson's chief environmental, health and safety officer. "Along with our 'Core Values,' it guides our actions in such important areas as hunger relief, food safety, environmental protection, animal well-being, ethical business practices and the health and safety of our employees."
Current sustainability goals include reducing water usage by 10%, producing up to 75 million gallons of bio-fuel annually and supporting government policies that will encourage the use of non-food sources for renewable energy.
Some areas of focus include water conservation, renewable fuels production and workplace safety improvements. "Sustainability at Tyson Foods is about doing the right thing in all aspects of our business," said Kevin Igli, Tyson's chief environmental, health and safety officer. "Along with our 'Core Values,' it guides our actions in such important areas as hunger relief, food safety, environmental protection, animal well-being, ethical business practices and the health and safety of our employees."
Current sustainability goals include reducing water usage by 10%, producing up to 75 million gallons of bio-fuel annually and supporting government policies that will encourage the use of non-food sources for renewable energy.
Friday, August 6, 2010
Company plans to stop buying pork from sow stall users by 2014
Australian supermarket chain Coles said it has made plans to phase out pork from producers using sow stalls beginning in 2011, with the goal of being completely sow stall free by 2014.
South Australia (SA)'s Agriculture Minister, Michael O'Brien, said he fears many pork producers will suffer financially as a result of these plans. "These producers were basically told, 'If you don't comply with what Coles want then we may actually go elsewhere,'" he said. "There was a high degree of coercion imposed in getting this particular outcome. [Producers are] unhappy with it and it's going to place them under enormous financial stress."
But Ministry claims that Coles' actions could ruin the SA pork industry are unfounded, said Coles spokesman Jim Cooper. "We're one of the biggest supporters of the South Australian pork industry," he said. "We buy fresh pork from about 50 farmers in South Australia. We have worked with them. They are comfortable with the process."
Coles General Manager of Meat Allister Watson said Coles has been working with suppliers for months to phase out sow stalls. "We are working with our growers to ensure they avoid onerous costs in changing how they raise pigs," he said. "Changes will therefore take time to complete, but Coles and its suppliers are stepping heavily in the right direction."
South Australia (SA)'s Agriculture Minister, Michael O'Brien, said he fears many pork producers will suffer financially as a result of these plans. "These producers were basically told, 'If you don't comply with what Coles want then we may actually go elsewhere,'" he said. "There was a high degree of coercion imposed in getting this particular outcome. [Producers are] unhappy with it and it's going to place them under enormous financial stress."
But Ministry claims that Coles' actions could ruin the SA pork industry are unfounded, said Coles spokesman Jim Cooper. "We're one of the biggest supporters of the South Australian pork industry," he said. "We buy fresh pork from about 50 farmers in South Australia. We have worked with them. They are comfortable with the process."
Coles General Manager of Meat Allister Watson said Coles has been working with suppliers for months to phase out sow stalls. "We are working with our growers to ensure they avoid onerous costs in changing how they raise pigs," he said. "Changes will therefore take time to complete, but Coles and its suppliers are stepping heavily in the right direction."
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