New Jersey gestation crate bill could impact presidential race

• 

  Tim Larsen/State of New Jersey

  Gov. Chris Christie is getting pressure from both opponents and proponents of a bill to ban gestation crates in New Jersey.

  From WATTAgNet:
  A bill to outlaw the use of gestation crates in New Jersey could have national implications if Gov. Chris Christie chooses to sign it into law.
  Christie has until early December to decide whether to sign a bill that would ban hog farmers in the state from using gestation crates. The bill has the overwhelming support of Republican and Democrat state lawmakers in New Jersey, which only has about 300 hog operations that don’t regularly use crates.
  If the bill is signed into law, it would not greatly impact the U.S. pork industry, it could have a national impact on the political scene. Christie is a potential Republican presidential candidate for the 2016 elections, and his decision is being watched closely by voters in Iowa, the largest pork producing state in the nation and the home of 2016’s first-in-the nation presidential caucuses.
  Christie has received pressure from Iowa Gov. Terry Branstad, whose relationship he has carefully cultivated and who could prove a crucial ally in the early-voting state if Christie decides to run. Branstad, a Republican who won easy re-election November 4, is ardently opposed to the restrictions and has called Christie to urge him to reject the bill when an earlier version landed on his desk last year.
  “I called him to tell him how bad I thought it would be and how the people that are involved in pork production, that really understand this, feel this would be very bad,” said Branstad, who added that the crates provide protection to baby pigs that could be crushed by older pigs.

EPA delays final 2014 Renewable Fuel Standard

The U.S. Environmental Protection Agency (EPA) announced November 21 it will not issue a final 2014 Renewable Fuel Standard (RFS) until next year, missing its deadline by more than a year.  According to statute, EPA is supposed to finalize each year's RFS rule by the previous November.
"Instead of providing the market some clarity by adhering to the statutory deadlines, EPA waited to see if the consumption of gasoline would go up this year as a tactic to inflate ethanol production," said National Chicken Council (NCC) President Mike Brown.
"EPA Administrator Gina McCarthy said EPA would use the 'most up to date' numbers to set the 2014 standards – that was in April, nearly five months into the compliance year, and more than six months ago.  Waiting to set the standards after the fact is irresponsible and discriminatory, but unfortunately, the standard practice."
EPA has not issued the volumes on time since 2009.
"This seesaw process by which the EPA proposes an up-and-down, now-and-later moving target as the compliance year unfolds leaves poultry and livestock producers unable to plan and budget effectively," Brown added.  "While corn prices have moderated, volatility and uncertainty are the true business-killers."
Brown continued, "On top of all of this, we believed at one time that the original RFS included a workable provision that provided for an 'off ramp' in times of economic crisis.  On at least two major occasions – in 2008 and 2012 during catastrophic weather events – that belief has proven false.
"What more evidence does the administration and Congress need to prove the RFS — and the administration of it — is broken beyond repair?  The reality of this unworkable, unsustainable and imbalanced policy must be addressed in any energy or economic package that Congress considers in the near future."
Brown also noted that all of the numbers this year show that the biofuels industry has flourished, effectively without an RFS mandate, which is clear evidence the RFS is no longer needed.  "And for a program that was billed as being created to end our dependence on foreign oil , the ethanol industry is exporting its product at a rate faster than snow falling this week in Buffalo."
The USDA estimates that there will be 5.15 billion bushels of corn used by ethanol this year – nearly 36 percent of the total U.S. corn crop.  When the original RFS was implemented during the 2005/06 crop year, ethanol consumed about 15 percent of the corn crop.  Since the RFS was enacted, chicken producers have incurred more than $44 billion in higher actual feed costs due to the RFS.
"Despite this year's record harvest, the chicken industry is just one drought, flood or freeze away from having to face higher feed prices – and consumers facing even higher food prices – because of the amount of corn that is mandated to be used as fuel," Brown continued.
"Albert Einstein is said to have observed, 'Insanity is doing the same thing over and over, and expecting different results.'  Today's announcement is further evidence that our current renewable fuel policy is not only broken, it's insane."

PED virus spreads into Hawaii

Porcine epidemic diarrhea (PED) virus has spread into Hawaii, according to the state’s department of agriculture. The deadly swine virus has affected herds in 32 states to date, but this is the first time PED virus has gone outside of the continental states.
The Hawaii Department of Agriculture (HDOA) announced on November 20 it had issued a quarantine order stopping the movement of pigs on Oahu after an outbreak of PED virus, was confirmed on a farm in Waianae Valley. PED virus causes significant sickness in swine and causes high mortality in piglets.
The farm last week called HDOA’s Animal Disease Control Branch to report many cases of diarrhea among their swine. State veterinarians took samples from the farm and sent them to the Kansas State University (KSU) Veterinary Diagnostic Laboratory, which confirmed that the pigs had been infected with PED virus.


Quarantine ordered to contain PEDv outbreak
Acting State Veterinarian Dr. Isaac Maeda issued a quarantine order on the farm to contain the outbreak and also to stop the movement of pigs on the west side of Oahu. No swine shall be moved east past Nanakuli from Makaha, Waianae and Nanakuli Valley. The order also restricts movement of swine from Oahu to neighbor islands.
Disease control measures have been instituted on the farm, which has a total of about 150 pigs. About 25 percent of the pigs (mainly piglets) died. However, it appears that the remaining pigs are recovering and no deaths have occurred on the farm since the weekend. It is not known at this point how the virus may have come to Hawaii; however, the farm did not import any swine.
“Our current focus is to contain the virus and prevent its spread on Oahu,” said Maeda. “We will also survey other swine operations and try to determine if the virus has spread.”
PED virus was first confirmed in the U.S. in May 2013. To date, PED virus is estimated to have killed up to eight million young pigs.
In July 2014, HDOA increased swine import requirements to help prevent the entry of swine infected with PED virus into Hawaii. This included exclusion of swine from premises with PED virus and negative tests for PED virus prior to shipping.
Statewide there are about 230 pig farms – 70 of which are on Oahu. Most are small operations.

Farm bill subsidies could hit $10 billion

• 

  freeimages.com/eduardtrag

  Economists have estimated that new subsidies from the U.S. government’s five-year farm bill could be as high as $10 billion.

  From WATTAgNet:
  Some economists have estimated that new subsidies from the U.S. government’s five-year farm bill could be as high as $10 billion. That would be more than 10 times the U.S. Department of Agriculture’s (USDA) working estimate and more than double the forecast by the Congressional Budget Office (CBO).
  If farmers’ revenues fail to meet benchmarks tied to long-term price and production averages, they could receive payouts. The USDA and CBO made their estimates before crop prices fell on record harvest expectations.
  The farm bill’s new programs were meant to cost taxpayers less by replacing a nearly two-decade-old scheme of direct cash payments to farmers, which were about $5 billion per year and were made regardless of need.
  Due to ample supplies, corn prices have fallen well below the long-term average price used as a benchmark for one of the farm bill’s programs. This year’s bumper harvest may not be large enough to compensate for the price falls, and revenues for some farmers could be low enough to trigger payments.
  Beginning November 17, farmers were able to start signing up for the programs. Most participants will be the farm families who own and operate about 98 percent of all U.S. farms.

JBS agrees to acquire Big Frango, Primo Group

JBS  has entered agreements to acquire the assets of Brazilian poultry company Big Frango and Primo Group, a leading producer of ham, bacon and small goods in Australia and New Zealand. JBS will collectively pay about US$1.4 billion for the two companies.


JBS plans to purchase Big Frango
JBS, through its subsidiary JBS Aves Ltda., announced November 20 that it intends to purchase the Big Frango Group for an estimated BRL430 million (US$165.8 million).
The Big Frango Group is one of the largest groups in the poultry sector in the Southern region of Brazil, with more than 49 years of experience and a processing capacity of 460 thousand birds per day in two processing facilities with license to export to the major global markets, and with annual sales of more than BRL1billion (US$385 million). In this context, this acquisition represents an important step to strengthen JBS Foods position in the Brazilian and international consumer market of poultry and poultry products.
Big Frango is presently owned by AMSE02, which acquired the poultry processor as a result of a debt restructuring process and corporate reorganization promoted between the former owners and shareholders of Big Frango Group.
The proposed acquisition is pending regulatory approval.


JBS offers to buy Primo Group
JBS, through its subsidiary JBS Australia, has announced its intent to purchase Primo Group for an amount of AU$1,450 million (US$1,250 million). The transaction will be paid for in cash and is subject to approval of the Australian regulatory authorities.
Established in 1985, Primo Group has a portfolio of well recognized and highly regarded brands including Primo Smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats.  The business currently employs in excess of 4,000 employees and operates from five manufacturing plants, seven distribution centers and 30 retail shops. Recognized by its high quality standards, Primo Group operates
"This acquisition is strongly aligned with our global strategy to expand our presence in the value-added product category and well-known brands. Primo Group is the leading company in this segment with strong brands and represents an outstanding opportunity to expand our business in Australia, considering the annual growth in consumption of prepared products and the prospects to increase exports of convenient products from Primo Group portfolio," commented Wesley Batista, Global CEO of JBS.

John Soules Foods acquires chicken processor Pro View Foods

• 

  Mike Johnson

  Meat and poultry processor John Soules Foods has acquired poultry processor Pro View Foods.

  From WATTAgNet:

  John Soules Foods (JSF), a processor of ready-to-cook and fully-cooked beef and chicken products, has acquired Pro View Foods, a processor of ready-to cook and fully-cooked chicken products based in Gainesville, Georgia. Pro View Foods will become a wholly-owned subsidiary of JSF and will continue to operate out of Gainesville under the Pro View Foods name.

  Financial terms of the deal were not disclosed.

  “This is an important and exciting transaction for John Soules Foods and Pro View Foods. The combination of our strong product development and manufacturing capabilities will enable the acceleration of our leading market positions in core categories, expansion into new, high-growth retail categories and the broadening of our geographic reach across the retail and foodservice markets,” said Mark Soules, co-CEO of JSF.

  “We are pleased to welcome the addition of Pro View Foods' talented team to our own. Together, we will comprise one of the most sophisticated and efficient workforces in the industry, providing exceptional customer service and innovative new product development capabilities, while continuing to deliver the highest levels of quality and food safety,” added John Soules, Jr., co-CEO of JSF.

  The new organization offers a highly complementary range of further processed beef and chicken products for multiple channels, including grocery retail, foodservice and school/institutional. Pro View’s products include a broad range of whole muscle and formed, ready-to-cook and fully-cooked chicken products in a wide variety of flavor and breading profiles. John Soules Foods, headquartered in Tyler, Texas, is the nation's leading provider of ready-to-cook and fully-cooked beef and chicken fajitas as well as a variety of other high quality, fully-cooked protein products.

  “We are very excited about the meaningful growth opportunities that this combination will afford to the talented employees at Pro View Foods and to the broader Gainesville community,” said Jan Cooley, CEO of Pro View Foods. “Over the past decade we have built a distinct leadership position in the value-added, fully-cooked chicken segment, and believe that John Soules Foods is the perfect partner to help drive the Pro View Foods vision into the future – continuing to deliver tremendous quality and value for our customers along the way.”

  John Soules Jr., and Mark Soules will become the Co-CEOs of the combined companies, and Jan Cooley will move into an advisory role. The current Pro View management team, employees and facilities will be integrated into JSF operations, but will maintain the Pro View Foods name for marketing purposes. John Soules Foods now will have approximately 1,225 total employees, with about 475 employees at the JSF facility in Tyler and about 750 employees at Pro View’s three facilities in Georgia.

Koch Foods says Mercy for Animals’ video inaccurate

Koch Foods has called a video of its facilities released by animal rights group Mercy for Animals inaccurate and out-of-context. The video depicts scenes filmed at its chicken processing plant in Chattanooga, Tennessee, and a farm owned by the company.
“The chicken processing business is a highly regulated industry with well-established industry processing procedures, and our company works hard every day to ensure our employees and contractors follow strict regulations from the US Department of Agriculture (USDA) and guidelines from the National Chicken Council,” said Joe Grendys, CEO of Koch Foods.
The processing procedures and guidelines are designed to ensure the chickens are processed in a humane manner. Sixteen USDA inspectors work on each production shift at the Chattanooga facility to help ensure the company produces a safe product in accordance with government regulations.
The video specifically targets quick service restaurant chain Chick-fil-A, claiming that the chain uses products supplied by Koch Foods. Both Koch Foods and Chick-fil-A have pointed out that inaccuracy, as Koch Foods has not provided chicken to Chick-Fil-A since April 2013.
Grendys further stated Koch Foods trains its processing employees on animal welfare practices and the importance of operating in a precise manner. It also requires its independent contractor chicken catchers to adhere to the Animal Welfare Guidelines of the National Chicken Council. These independent contract catchers must complete training on compliance with animal welfare guidelines, and they are regularly monitored for adherence to the guidelines.
Koch Foods is also regularly audited on its animal welfare practices by an independent auditor, the company stated. The Chattanooga facility last completed such an audit in September of this year. The auditor found no violations of animal welfare practices in the live or processing operations for the Chattanooga complex.
“As the CEO of the company, I take these allegations very seriously as I should. The company will not stand for a violation of the important processes and standards that we have in place. Koch Foods will remain vigilant to ensure it continues to operate in a humane, clean, and safe manner,” Grendys said.

Survey shows corn, soy yield increases when cover crops are used

• 

  freeimages.com/robertz65

  Farmers are seeing increased yields when cover crops are used.

  From WATTAgNet:
  The second survey from the North Central Region Sustainable Agriculture Research and Education program has found that farmers are seeing increased yields of up to five bushels per acre of corn and two bushels per acre of soy when cover crops are used.
  The survey studied 1,924 users and non-users of cover crops in winter 2013-14. Of the respondents, 639 provided data comparing corn yields and 583 provided data comparing soy yields.
  The results of the 2013-14 survey were less significant than the previous year, when improvements of 11.1 bushels of corn and 4.9 bushels of soybeans were seen. The changes could be attributed to the drought during the summer of 2012, which highlights the moisture-management benefits of cover crops.
  Other benefits of the use of cover crops cited in the report include changes in soil organic matter, soil erosion and compaction, weed control and nitrogen content.
  Other findings of the survey include:
  71 percent of the cover crop users seed their own cover crops
  48 percent of cover crop users apply herbicide for termination; tillage and choosing species that winter-kill are each employed by about half as many growers (21% and 20%, respectively).

Continental Grain may sell stake in Wayne Farms

The chairman and CEO of Continental Grain Company said the company may sell its stake in its poultry company, Wayne Farms. Paul Fribourg said an initial public offering for the sixth largest poultry company in the United States is a possibility as he sees it as a way to gain capital as the current commodities cycle takes another turn.
Fribourg added that the poultry industry’s future may not be as profitable as its past and present, according to a Financial Times report.
“We were at the low of the commodities cycle in chicken, because grain prices were very high and chicken prices were low. So there was an opportunity to go out and buy very cheap chicken companies,” Fribourg said at a forum in New York. “Today the cycle has gone to the other extreme, where you have incredibly high chicken prices and very low grain prices. It’s not going to last. So at the top of the cycle we’re now looking at ways to lock in either long-term margins, or possibly, for example, take our chicken company public.”
Continental Grain Company, founded in 1813, is a leading investor in food and commodities, having taken stakes in companies including Burger King and Smithfield Foods.
Wayne Farms, headquartered in Oakwood, Georgia, processes 328 million chickens annually, according to the WATT Global Media Top Companies Database.

Second avian influenza outbreak reported in The Netherlands

• 

  Andrea Gantz

  Two outbreaks of avian influenza have been confirmed in The Netherlands in less than one week.

  From WATTAgNet:
  A second Dutch farm has been infected with avian influenza, less than one week after avian influenza struck a layer farm in Hekendorp, Utrecht, The Netherlands, according to authorities.
  On November 20, thousands of chickens were culled at a farm in Ter Aar in South Holland, about 15 miles away from the farm where the first avian influenza outbreak occurred.
  Tests are being conducted to determine the serotype of the virus detected at the Ter Aar farm. The previous outbreak of avian influenza was determined to be of the H5N8 serotype. In that outbreak, reported by the World Organisation for Animal Health (OIE) on November 16, about 1,000 layer and breeding hens were found dead. An additional 149,000 susceptible chickens at that farm were destroyed.
  H5N8 avian influenza has also struck two other European farms in November. On November 6, an estimated 1,880 birds died at a fattening turkey holding in Germany. On November 17, the virus was detected at a duck farm in Yorkshire, U.K., where 338 birds died.
  The outbreaks have prompted the United Arab Emirates (UAE) and Ukraine to impose bans on the import of poultry and poultry products from The Netherlands, Germany and the U.K.
  Authorities from the U.K. Department for Environment, Food & Rural Affairs (Defra) have stressed that H5N8 avian influenza does not pose a great threat to human health and does not impact the food chain.

Brazil’s poultry exports to Russia continue to rise strongly

Brazil’s exports of poultry meat to Russia are continuing to grow rapidly. According to figures released by the Brazilian Animal Protein Association (ABPA), the volume of poultry meat shipped to Russia in October – 33,610 tons - was more than 60 percent higher than that shipped in September. In comparison with the volume shipped in October 2013, exports were more than 455 percent higher.
By value, October’s poultry meat exports stood at US$75.1 million, 46.3 percent up on the previous month and 111 percent higher than the figure recorded for 2013.
“Russia has become one the best opportunities this year for poultry meat exporters and our prediction is that a similar performance to October’s will be repeated in November,” said Francisco Turra, ABPA executive president.
He continued that Venezuela had also proved to be a significant market for Brazilian poultry meat exports in October, with sales rising to 20,260 thousand tons, up from 1,870 tons in September.
Brazil’s global poultry meat exports were 1.9 percent higher by value in October this when compared with October 2013, however by value they were 9 percent higher and worth US$742.38 million.

National Pork Board funds new swine health information center

The National Pork Board’s board of directors at its November meeting approved the funding of a National Swine Health Information Center. The new, autonomous venture will focus its efforts on implementing industry preparedness for disease challenges that could affect U.S. swine herds.
According to Dr. Paul Sundberg, vice president of science and technology at the National Pork Board, a $15 million investment by the Pork Checkoff would fund the center for five years. The center would be governed by a board consisting of representatives from the National Pork Board, the National Pork Producers Council (NPPC), the American Association of Swine Veterinarians (AASV) and at-large pork producers.
“It’s our intention to establish a center that can improve our preparedness for swine diseases with the combined resources of swine veterinarians, producers, researchers, diagnosticians and state and federal animal health officials,” Sundberg said. “We have learned a lot over the past year and a half from our experience with porcine epidemic diarrhea (PED) virus and we want to create a unique, collaborative system that will help us achieve our overall goal of preparing for the next emerging swine disease.”
Sundberg says the proposed new center would work toward recognizing and filling the resource and knowledge gaps that currently exist in swine disease diagnostics as they relate to emerging diseases. Also, the new center would work with the Institute for Infectious Animal Diseases at Texas A&M University to help facilitate swine health data analysis.
“Although this is a one-time allocation of supplemental funds outside of our regular budget, we realize that this is an investment in the future of the U.S. pork industry,” said Dale Norton, National Pork Board president and producer from Bronson, Mich. “In the coming months, we will reach out to producers, gather their input and design a center that best meets their needs.”
Sundberg emphasized that the Swine Health Information Center would not be specifically responsible for a disease response plan nor would it duplicate current AASV, NPPC or National Pork Board efforts. The USDA will continue to oversee and manage classical foreign animal diseases, such as Foot-and-Mouth Disease, that already have a preparedness plan in place.
More information on the new center will be announced at the annual National Pork Industry Forum, which will be held March 5-7, 2015, in San Antonio, Texas.

Boar taint and aggressive behavior not closely linked, study finds

• 

  Andrea Gantz

  A recent study from Wageningen University examined links between boar taint and aggressive or mounting behaviors.

  From WATTAgNet:
  Selecting on less boar taint does not automatically mean selecting on less mounting and aggressive behavior in boars, according to research at Wageningen University’s Swine Innovation Centre Sterksel (SIC) and a commercial pig farm.
  The EU has proposed ending surgical castration of male piglets in 2018 and beyond. However, the quality of meat from some intact males is negatively influenced by odor and taste, referred to as boar taint. By using boars with a low breeding value for boar taint, the percentage of boars with boar taint at the slaughter house can be reduced by 40 percent. This was investigated by measuring the behavior and boar taint in offspring of boars and sows with respectively a high or a low breeding value for boar taint.
  The breeding value for boar taint had no effect on mounting behavior of the boars, according to the study. Also, there was no relationship between mounting behavior and boar taint. The effect of the breeding value for boar taint on aggressive behavior of the boars is not clear. Aggressive behavior was lower at SIC Sterksel but higher on the commercial pig farm in boars with a low breeding value for boar taint. There was no relationship between aggressive behavior and boar taint.

Tyson Foods anticipates record-setting year in 2015

Tyson Foods executives told investors at the Morgan Stanley Global Consumer and Retail Conference on November 19 that after a record year in fiscal year 2014, the company expects fiscal year 2015 to set new records for sales and earnings.
"We expect 2015 to be another great year as we continue to build on the momentum we've generated," said Dennis Leatherby, Tyson's executive vice president and chief financial officer. "We expect to capture at least $225 million in synergies from the integration of Hillshire and improvements in our Prepared Foods segment. The sale of our Latin American businesses is expected to generate over $500 million in proceeds, which we'll use to de-leverage. Revenues should be approximately $42 billion. We should generate in excess of $1 billion in free cash flow, and we expect adjusted earnings in the range of $3.30 to $3.40 per share, which is more than 12 percent growth over fiscal 2014."
Tyson's accounting cycle will result in a 53-week year in fiscal 2015. For comparison purposes, projections have been adjusted to a 52-week year.
Donnie Smith, Tyson's president and chief executive officer, added: "Tyson Foods has shown good growth over the past five years, but I think right now is the beginning of a new growth phase. We have the right brands and the right products in the right places for today's consumers. We see great potential this year, next year and on into the future. We're integrating Hillshire Brands, capturing synergies and producing steadily increasing earnings. It's a very exciting time to be one of the leading food companies in the world."

Final phase of avian influenza vaccination in Jalisco, Mexico

The poultry sector of Jalisco, Mexico, is completing the final phase of vaccination in farms against avian influenza, Héctor Gutiérrez, the head of the Department of Rural Development of Jalisco, said. After the vaccination phase is completed, Jalisco will enter into the elimination stage of vaccines until the absence of the H7N3 virus is confirmed.
"This period of cold temperatures of fall and winter will be a season of great importance to strengthen biosecurity in the poultry sector," Gutiérrez told the newspaper El Informador.
The National Health, Food Safety and Quality Service (Senasica) "will assess progress towards the eradication of this avian pathology, as well as the certification of farms."
The director of Animal Health of Senasica, Joaquín Delgadillo, said that "there is an agreement in force to maintain vaccination in farms until mid-March 2015, when an assessment of this will be made to take further steps." Vaccination is a tool that complements with other health practices, such as perimeter fencing, access filters to farms and traps against the migrating birds and management of excreta. Thus, there is a whole biosecurity program in place to combat highly pathogenic avian influenza.
Two years after the battle against avian influenza started, a total of 700 million doses of vaccines have been applied in Mexican poultry farms, Delgadillo said to El Informador. In addition, "there is a permanent monitoring of sites where migratory birds gather, such as some wetlands that have been located in the national territory."
The state of Jalisco in Mexico provides 55 percent of egg production that is consumed in the country and 8 percent of the broiler production.

Ag groups urge Obama to intervene in port disruption

A coalition of U.S. agricultural organizations is urging President Barack Obama to intervene to stop the West Coast port disruption, which is keeping U.S. agriculture products from being exported.
The International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) have been engaged in protracted labor contract negotiations that are now contributing to a number of problems at ports on the West Coast, including congestion, slowdowns and terminal closures.
“We urge you to reach out to the ILWU and PMA to insist that they immediately restore the ports to full operation while they continue negotiations,” the group wrote in a letter to Obama. “We also ask you to use whatever means you have at your disposal, including bringing in a federal mediator to help resolve the contract negotiations.”
In the letter, the coalition also stated that if strikes occur, Obama should invoke the Taft-Hartley Act in order to keep exports moving and protect the U.S. economy. The Taft-Hartley Act is a federal law that restricts the activities and power of labor unions.
More than 60 organizations signed the letter, including the USA Poultry & Egg Export Council, U.S. Meat Export Federation, National Chicken Council, National Turkey Federation, American Meat Institute, National Pork Producers Council, Indiana State Poultry Association, Meat Importers Council of America, Mississippi Poultry Association, National Oilseed Processors Association and North American Meat Association.
Copies of the letter were also sent to Senate Agriculture Committee leaders Debbie Stabenow and Thad Cochran, House Agriculture Committee leaders Frank Lucas and Collin Peterson, California Gov. Jerry Brown, Washington Gov. Kay Inslee and Oregon Gov. John Kitzhaber.

Defra confirms UK duck farm infected with H5N8 avian influenza

The outbreak of avian influenza that infected ducks at a U.K. farm has been confirmed to be of the H5N8 serotype, the Department for Environment, Food & Rural Affairs (Defra) reported on November 18.
The outbreak was first reported by the World Organisation for Animal Health (OIE) on November 11. Of a total 6,000 susceptible ducks at the farm in Yorkshire, 338 had died from an apparent infection of avian influenza. However, until Defra made its announcement, the exact serotype of the virus had not yet been determined.
The UK farm had noticed a drop in egg production from the ducks leading up to the confirmation of H5N8 avian influenza. Underlying bacterial/fungal infections likely preceded the avian influenza infections, reported OIE.
H5N8 avian influenza has also infected flocks at other farms in Europe in recent weeks. The H5N8 strain was first detected at a fattening turkey holding in Germany and reported by OIE on November 6.  An estimated 1,880 birds died, with culling efforts following for other susceptible birds.
OIE on November 16 reported another outbreak of H5N8 avian influenza, this time in The Netherlands. About 1,000 layer and breeding hens were found dead, with an additional 149,000 susceptible birds destroyed.
Defra advised that H5N8 avian influenza is a very low risk to human health and does not threaten the food chain.

Egg Farmers of Canada creates chair in public policy

Egg Farmers of Canada has entered a new partnership with the University of Waterloo, establishing Bruce Muirhead as the industry’s first ever research chair in public policy.
Professor Muirhead is associate vice president, external research, and professor in the department of history at the university. His recent work has focused on the evolution of Canadian agricultural policy and on supply management in particular. He will be developing a research program in public policy that relates to the current and future challenges faced by Canadian egg farmers, providing historical context to the growing conversation about the value of supply management for all Canadians.
Tim Lambert, chief executive of officer of Egg Farmers of Canada said: “We are delighted to be working with Professor Muirhead. With the creation of this chair, we hope to continually evaluate the caliber of dialogue on supply management and ensure that any future policy decisions that could affect supply managed commodities are as informed as possible.”
Vice-president of university research D. George Dixon said that the chair would stimulate high-quality research and international dialogue that would, in turn, generate new knowledge to sever the needs of the egg farming industry in Canada.

DeCosters scheduled for February sentencing in Salmonella case

Former egg industry executive Austin “Jack” DeCoster and son Peter DeCoster are scheduled to be sentenced in February 2015 for their involvement in a multistate Salmonella outbreak that was traced to the DeCosters’ former company, Quality Egg LLC. The two pleaded guilty on June 3 to misdemeanor charges of introducing adulterated food into interstate commerce.
The sentencing hearings are set to begin on February 9 at a courtroom in Sioux City, Iowa. The hearings could last as long as five days, according to a report in The State.
The charges stem from when Quality Egg sold eggs that caused thousands of people to become ill during the 2010 Salmonella outbreak. The outbreak also led to the recall of 550 million eggs.
The DeCosters could face up to one year in jail, but their attorney has argued that the two do not deserve jail time and should simply pay a fine and serve probation. Federal prosecutors said they found no evidence that the DeCosters were aware they were selling tainted products, but that as corporate officers, they can be held legally responsible.
Quality Egg also faces a fine after pleading guilty to bribing a federal inspector, selling misbranded food and introducing adulterated food into interstate commerce.

Forecasts for 2015 positive for poultry and swine producers

The record corn and soybean harvest in the U.S. this fall have led to dramatic reductions in rations for poultry and swine producers, and these lower feed costs will likely continue for several months.
Tim Brusnahan, vice president of consulting and principal, Richard A. Brock & Associates Inc., estimates the farm price for corn will be between $3.10-3.70 for the 2014-15 crop year. Speaking at WATTAgnet.com’s Grain and Meat Outlook Webinar, with his estimates for corn planting, production and use for the 2015-16 crop year, Brusnahan projects that the ending stocks for the 2014-15 and the 2015-16 crop years will be more than 2 billion bushels. With this 2 billion-bushel carryover, he estimates that the farm price for corn will remain well below $4 per bushel.
For soybeans, Brusnahan estimates that the farm price will be between $8.50-10.50 per bushel for the 2014-15 crop year and that bean prices will fall even lower to the $7.50-8.50 range for the 2015-16 crop year. Even with the expected decline in soybean price, Brusnahan said that expected returns for planting soybeans will be better than for corn, so acreage is expected to shift from corn to soybeans for the 2015-16 crop year.
Brusnahan said the end of the “bull market” for crops will likely result in some acreage being pulled out of grain and oilseed production. He said that about one-third of crop farmers in the five largest grain-producing states are under age 35 or over 65. He explained that young farmers (under 35) might not have the capital to make it through bear markets for grain and that older farmers (over 65) may just quit farming rather than try to struggle through a bear market.


Protein production to ramp up
Dr. Thomas Elam, economist, FarmEcon L.L.C. said the stage is set for expansion in the animal protein sector in 2015. Producers' financial results have improved, interest rates are still near historical lows, demand is strong, and feed costs should remain at or near current levels.
Export demand for animal protein has been very strong. Volume has been increasing even as prices have increased significantly throughout the past few years. In addition, cold storage stocks of meat and poultry have continued to drop this fall relative to the past few years.
Elam projects a 0.9 percent increase in total meat production in 2015. He projects that beef production will fall by 3 percent next year while pork production will remain virtually unchanged from this year. Broiler and turkey meat production are estimated to rise by 3.5 and 4.1 percent, respectively, according to Elam. He said that the impact of porcine epidemic diarrhea (PED) virus is the big wild card for pork production. If the U.S. swine industry is able to control PED virus, then production will begin to ramp up in 2015.
Elam predicts a slight drop in chicken prices in 2015 and a larger drop in turkey prices. He said that poultry prices will be supported by high beef prices.

Zoetis announces $500 million share repurchase program

Zoetis' board of directors has authorized a $500 million share repurchase program as part of its capital allocation plans.
The shares are expected to be repurchased at the discretion of management, depending on market conditions and business needs. The authorization allows for repurchases to be conducted through open market or privately negotiated transactions or otherwise. The announcement was made in conjunction with Zoetis Inc.’s Investor Day on November 18, 2014.
“A share repurchase program is an important tool for managing our allocation of capital, and it gives us additional flexibility to return capital to shareholders when it is not needed in the business,” said Paul Herendeen, executive vice president and chief financial officer, Zoetis. “We remain focused on investing capital internally to help grow the business, completing complementary business development activities that can generate additional value, and returning capital to shareholders as part of our total value proposition.”


Innovations driving growth
Dr. Alejandro Bernal, executive vice president and area president, Europe, Africa and Middle East region, cited the example of Poulvac E. coli vaccine as an example of how the company is responding quickly to regional market needs. Introduced into the poultry market in France in 2012, Poulvac had attained 46 percent market share in layers and breeders in France by the third quarter of 2014.
Dr. Catherine Knupp, executive vice president and president of research and development, Zoetis, said customer needs are what drive product development. She cited the example of the development of a porcine epidemic diarrhea (PED) virus vaccine for the U.S. swine market to show how responsive the company can be. First identified in the U.S. in April 2013, Zoetis was able to develop a vaccine and gain a conditional license for its use on September 2, 2014, just 14 months after the virus isolates were obtained by Zoetis. Knupp reported that the company continues to work to find solutions for PED virus in other countries.

European Antibiotics Awareness Day – Everyone is Responsible

November 18 is European Antibiotics Awareness Day, which will be followed by a week-long series of activities taking place across more than 40 countries. The initiative, now in its seventh year, aims to promote the prudent use of antibiotics, and this year activities are being conducted under the banner of “Everyone is Responsible.” 
As part of the event, the European Centre for Disease Prevention and Control is co-coordinating a 24-hour global Twitter conversation around the world, hosted jointly by participating organizations from Australia, Canada, New Zealand, and the United States, and with the participation of the World Health Organization.
Human and veterinary response
Alejandro Bernal, chairman of veterinary medicines industry association IFAH-Europe, commenting on the initiative, said: “We believe antibiotics are a precious resource both for animals and people. By using them responsibly today, we will work to help protect their efficacy tomorrow.
“Responsible veterinarians and farmer have a duty to protect the health and welfare of animals, but they need support. This is why we are working with them to ensure that they use antibiotics as little as possible but as much as necessary.”

Poultry industry leader Jack England dies

Jack England, founder of England Farms in Rison, Arkansas, died November 2 at the age of 93. 
Jack England, founder of
England Farms
 in Rison, Arkansas, has died at the age of 93. England was credited for pioneering the brokerage hatching egg business in the United States. 
England in the 1970s and 1980s created and standardized a stable business protocol to connect widely dispersed suppliers of broiler hatching eggs with markets in different regions of the country experiencing a shortage of eggs. With this brokerage service, England was able to curtail the restraining effects of shifts in supply and demand, and spur the growth of the poultry industry. 
England raised cattle, cotton and tomatoes before entering the poultry industry in 1955 with four chicken houses and a large flock of turkeys. Over the next decades, England’s poultry companies owned and operated houses, a feed mill, a trucking fleet, and processing plants.
England’s companies went on to establish markets in at least 17 other countries and regions including Canada, North Africa, South America, Europe, Mexico, the Philippines, and the Caribbean. In 1989, England landed an $11 million contract to supply the Middle East with 40 million eggs.
His accomplishments have earned him numerous awards, including inductions into the American Poultry Hall of Fame and the
Arkansas Agriculture Hall of Fame
. He was also a recipient of President George H.W. Bush’s “E” Award for his exporation of hatching eggs worldwide.
He is survived by three children: Pamela Martin, Terri Lindquester, and Jack Ray (Jay) England Jr., who currently leads England Farms. England is also survived by nine grandchildren, four great-grandchildren, three step-grandchildren, and eight step-great-grandchildren.

Pork board may create National Swine Health Information Center

• 

  Andrea Gantz

  The National Pork Board will soon vote on a proposal to create a National Swine Health Information Center.

  From WATTAgNet:
  The National Pork Board will soon vote on a proposal to create a National Swine Health Information Center with funding from the Pork Checkoff. If realized the center would be used as a tool to implement industry preparedness for disease challenges that impact the swine industry. 
  The announcement about the proposal was made during the Iowa State University Swine Disease Conference by
  Harry Snelson, DVM, American Association of Swine Veterinarians (AASV), and Craig Rowles, DVM, Elite Pork, announced the proposed center during the Iowa State University Swine Disease Conference.
  Snelson and Rowles said that the center, if approved, would be funded over a five-year period by a $15 million to $20 million investment by the Pork Checkoff.
  “A board made up of representatives from the National Pork Board (NPB), National Pork Producers Council (NPPC) and AASV will have the responsibility for setting the executive direction of the Swine Health Information Center,” Rowles said. “AgConnect, part of the Institute for Infectious Animal Diseases at Texas A&M, will work with the new Center to put geospatial data with potential disease outbreaks.”
  Rowles said the center would be used as a tool to help implement swine industry preparedness, enhance and supplement non-regulatory disease response and improve swine health management.
  The center, according to Snelson, would focus on global production diseases and would establish a mechanism for evaluating disease implications and prioritizing threats.

Avian influenza strikes in Netherlands, UK

• 

  Andrea Gantz

  The European poultry industry is on alert after avian influenza has been found in The Netherlands and the UK.

  From WATTAgNet:
  European countries are on alert after highly pathogenic H5N8 avian influenza has been found in a flock of layer and breeding hens in the Netherlands and a strain of H5 avian influenza at a duck farm in the U.K.
  The World Organisation for Animal Health (OIE) reported that H5N8 avian influenza was detected at a farm in Hekendorp, Utrecht, The Netherlands, killing about 1,000 hens. An additional 149,000 susceptible hens were destroyed. The property is being disinfected, while movement control, screening and zoning procedures have been implemented.
  The cause of the H5N8 outbreak has not yet been determined.
  Meanwhile, a highly pathogenic avian influenza strain has been found on a duck farm in Yorkshire, U.K., reported Defra. The exact serotype of the avian influenza found at the duck farm has not yet been determined. However, the British Poultry Council (BPC) reported that the source of the outbreak appears to be migratory birds. The property is being disinfected and protection and surveillance zones have been set up.
  “Wide and ongoing surveillance of house and wild birds in the U.S., particularly susceptible waterfowl species, is key. We hope this outbreak has been quickly contained. Avian influenza is a disease of birds and the risk to the general public is judged by health experts to be negligible,” said Andrew Large, BPC chief executive.

Poultry groups voice opposition to waters of US rule

The U.S. Poultry & Egg Association, National Chicken Council and National Turkey Federation filed comments with the U.S. Environmental Protection Agency (EPA) regarding the proposed rule developed by the EPA and the U.S. Army Corps of Engineers’ (Corps) to define “Waters of the United States” under the Clean Water Act (CWA). Like many other potentially affected parties, the three organizations note that the rule extends the authority and jurisdiction of the CWA and will confound practical implementation, and should be withdrawn.
The comments address the proposed rule dated April 21, 2014, wherein the agencies state the proposed rule would “enhance protection of the nation’s public health and aquatic resources, and increase CWA program predictability and consistency by increasing clarity as to the scope of ‘waters of the United States’ protected under the Act.” EPA and the Corps are claiming that areas where water is present, as infrequently as once every few years, should be subject to CWA permit requirements, because the water could potentially be connected to navigable water.
“While the processes and inter-relationships identified in the Report provide mechanisms to establish potential chemical, biological and physical ties between waters, the idea of a universally applicable mechanism for every water or drainage feature that exists on the landscape lacks any degree of scientific robustness. Given the financial and potential criminal liabilities associated with violating the CWA, the connectivity of an area to a navigable water is best established on a case-by-case basis. This vague concept of connectivity cannot be applied universally to all areas and navigable waters, thereby defeating the agencies’ stated purpose of avoiding case-by-case determinations for waters of the U.S,” the groups said.
The groups further remarked, “The proposed rule would assert jurisdictional authority over countless dry creeks, ditches, swales and low spots that are wet because it rains or a farmer has installed practices to sustain the viability of his operation. Even worse, the proposed rule attempts to claim authority over remote “wetlands” and/or drainage features solely because they are near an ephemeral drainage feature or ditch that are now defined as a water of the U.S. subject to CWA jurisdiction. Such unnecessary expansion of CWA jurisdiction significantly burdens poultry and egg production operations without any meaningful public health or environmental benefits.”

Tyson Foods Q4 net income drops by nearly half

Tyson Foods net income for the fourth quarter of 2014 was nearly cut in half when compared to the fourth quarter of fiscal year 2013, while yearly net incomes increased from those recorded one year ago.
Following the August 28 purchase of Hillshire Brands, Tyson Foods recorded fourth quarter net income of $137 million, down from the $261 million from the same period of 2013. On an annual basis, Tyson’s net income for 2014 was $864 million, up from the $778 million reported at the end of fiscal year 2013.
Sales for Tyson Foods hit a record high $10.1 billion in the fourth quarter, a 14 percent year-over-year improvement, while sales during fiscal year 2014 also hit a record of $37.6 billion, an increase of 9 percent.
Sales volumes for Tyson’s Prepared Foods segment, which now includes Hillshire Brands, were up, as were sales for its Chicken and International segments. Sales volumes for Tyson Foods’ Beef and Pork segments were down.
Tyson Foods CEO Donnie Smith was pleased with the overall results of the company in 2014, and looking forward, he anticipates great things for 2015 and beyond.
"This is an exciting time as we integrate Hillshire Brands and Tyson Foods," Smith said, "and I believe that when we look back on this merger years from now, we'll see it as a watershed event. We're setting higher expectations and anticipating more growth and increased profitability, specifically in the Chicken and Prepared Foods segments. In the long-term, our Chicken segment should generate a 7-9 percent return on sales, although we expect fiscal 2015 to be particularly strong with a return of more than 10 percent.
"Although it's still early in the process, I'm pleased with the progress we've made with the integration. We've identified the synergy targets, and now we're working to bring those dollars to the bottom line. We're very confident we'll meet the expected synergy amounts of $225 million or more for fiscal '15 and more than $500 million by the end of year three, and when we get there in fiscal 2017, we expect the Prepared Foods segment to earn a 10-12 percent return on sales.”

156,000 attended EuroTier in Germany

EuroTier 2014, which took place in Hanover, Germany, from November 11 to 14, attracted 156,000 trade professionals, around 30,000 of whom came from outside Germany.


• 2,360 exhibitors from 49 countries presented a comprehensive range of products and services to the animal husbandry sector.
• EuroTier welcomed around 30,000 visitors from abroad. The Netherlands (3,800) provided the highest number of international visitors, followed by Austria (2,000), Finland (1,300), Switzerland (1,200), Poland (1,200), the U.K. (1,100), France (1,100), Denmark (1,000), Belgium (950) and Russia (900).
• Among the highlights of the event were the international events for the dairy and pig farmers and the International Poultry Day, which was held the day before EuroTier started. These were attended by around 1,000 industry professionals from all over the world. The conferences and forums also offered opportunities for sharing views and best practice.
• The changing needs of society are having a huge impact on the development strategies pursued by livestock farmers. The numerous information events at EuroTier provided a platform for the industry to discuss a variety of perspectives on modern productive animal husbandry with groups representing different areas of society.
• The “Young Farmers Day” on Thursday was attended by thousands of young farmers, schoolchildren and students from Germany and abroad, who took advantage of the various events on offer at EuroTier. EuroTier's “Young Farmers Party” was attended by around 2,500 people.
The next EuroTier will take place from November 15-18, 2016, in Hanover.

Despite record harvest, some farmers collecting on crop insurance

• 

  freeimages.com/chesnutt

  Despite the record corn crop in 2014, some Iowa farmers will collect crop insurance indemnity payments.

  From WATTAgNet:
  Despite the record corn crop in 2014, some Iowa farmers will collect crop insurance indemnity payments.
  Agricultural economists say crop insurance payments will be made because harvest prices are substantially lower than spring projected prices.
  The 2014 projected prices, established in the spring by the federal Risk Management Agency, were $4.62 per bushel for corn and $11.36 per bushel for soybeans.
  For crop insurance purposes, the harvest prices, determined by taking the average of settlement prices on Chicago Board of Trade futures contracts in October, were $3.49 per bushel for corn, a 24.5 percent drop from the spring price, and $9.65 per bushel for soybeans, 15 percent lower than the spring price.
  In Illinois, yields were so good that payments will be much less common than in Iowa. Illinois’ average was 200 bushels of corn per acre, while Iowa’s average was 183 bushels per acre.
  To illustrate how payouts are determined, for example, take a farmer with 85 percent coverage and an actual production history of 190 bushels per acre. That farmer’s guaranteed revenue would be derived by multiplying the historical yield (190 bushels per acre) by the level of coverage (0.85) by the fall price ($4.62), yielding a guaranteed revenue of $746.13 per acre.

Brazil, China sign new poultry and pig meat trade agreement

The Brazilian Animal Protein Association (ABPA) and China’s inspection and quarantine services (CIQA) signed a new agreement on pig and poultry meat exports in mid-November.
The agreement should lead to increased trade in poultry and pig products between the two countries and lays down and a number of procedures covering areas such as: the exchange of information, training programs, periodic meetings, consultations and visits, the exchange of statistics and measures to combat fraud.
Commenting on the agreement, Francisco Turra, executive president of ABPA, said: “China is an established market for Brazilian poultry meat and is of growing importance for the pig sector. Through this co-operation agreement, we want to strengthen our relationship and build China’s trust in Brazil’s pig and poultry exporters.”
ABPA is now hoping to achieve recognition of further pig and poultry meat processing plants, in addition to the 29 poultry processing plants already accredited by China for export.