US corn surplus estimates remain low for fall 2012

An estimated 846 million bushels of corn will be on hand at the end of summer 2012, a surplus that satisfies demand for less than 25 days and fails to meet the 30-day supply considered to be a healthy stock, according to the U.S. Department of Agriculture.
A low supply in 2011 contributed to high food prices, which rose between 3.25 percent and 3.75 percent, said the USDA. Food inflation is expected to slow in 2012, dropping to between 2.5 percent and 3.5 percent, but corn is likely to remain above $6 a bushel for all of 2012, which will keep food prices high. Growing demand from livestock producers in China and the U.S. ethanol industry will counter any surpluses, according to the USDA.

American Meat Institute releases economic impact study on potential GIPSA regulations

John Dunham and Associates, commissioned by the American Meat Institute (AMI), has released an economic impact study related to a U.S. Department of Agriculture regulatory proposal.
If put into play, the proposed Grain Inspection, Packers & Stockyards Administration (GIPSA) rule would, among other things, affect the way livestock is purchased. Implementation, says the report, could result in up to 21,274 jobs lost in the livestock industry out of a total 104,000 potential jobs lost. Inefficiencies created by the proposal would also raise meat prices nationally by 3.33%, causing a 1.68% decrease in consumer demand for meat and poultry products. More information on the report can be found here.

New FEFAC president stresses competition

Patrick Vanden Avenne, new president of the European Compound Feed Manufacturers’ Federation (FEFAC), said European livestock and feed sector needs to produce more and better with less to compete. He presented a plan to strengthen the industry through 2013 to group’s delegates in Hamburg, Germany recently.
Vanden Avenne stated, “We will pursue the development of pre competitive R&D projects leading to the adoption of new feed technology and feed formulation strategies seeking to further improve feed efficiency.” He stressed the need to strengthen the competitiveness of EU livestock production.

UK specialist decries overuse of antibiotics

Dr. Alastair Hay of Bristol University has recently published an article in the British Medical Journal drawing attention to the extensive misuse of antibiotics by the medical profession. Although the intensive livestock industry has been blamed for the emergence of drug-resistant organism in human medicine, the Hay analysis shifts attention to current policy on prescribing antibiotics. According to the findings of the study, many practitioners administer antibiotics for viral respiratory infections without scientific justification. Drug-resistant organisms are excreted for at least one month after a course of therapy and may persist for a year resulting in dissemination of resistant bacteria in the community. It is estimated that the cost of treating medical conditions caused by drug-resistant organisms is approaching $2 billion annually in both the U.S. and the EU.
In the report posted by Reuters, a research group dealing with health policy at the London School of Economics suggested that “financial incentives should be developed to find, test and develop new antibiotics in view of the rapid growth of antibiotic resistance.” This appears to be a paradoxical argument since if new antibiotics are developed to treat drug-resistant organisms, the medical profession, following current practice, would simply substitute the new drugs resulting in the loss of their effectiveness. There does not appear to be a mechanism for restraint other than educating both the medical profession and patients as to their respective responsibilities and expectations.
The outstanding value from the Hay study is that regulatory agencies may begin to focus on the real causes of drug-resistant organisms and nosocomial (hospital and medical facility) infections. In food animal production, there is a financial disincentive to use antibiotics coupled with rigid restraints over availability and prescription practices. There is no such deterrent in the medical profession since insurance or government agencies foot the bill for the unrealistic expectations of patients and the lack of prudence demonstrated by health providers.