Poultry production costs, including rising animal feed prices, are the greatest challenge for today's turkey industry, said Rick Sietsema, partner and CFO of Michigan-based Sietsema Farms, in a recent testimony to the U.S. Senate Committee on Agriculture, Nutrition and Forestry.
Feed accounts for 70% of the cost of raising a turkey, said Sietsema, and corn accounts for 70% of the feed mix. As corn and other feed prices have increased, so have overall production costs. Changes to the existing ethanol policy would help the industry recover those costs, according to Sietsema. “The turkey industry is looking for reform of the existing ethanol policy, a safety net that ensures corn prices and availability will be less volatile in the future,” he said.
The U.S. Department of Agriculture's Grain Inspection, Packers and Stockyards Administration proposed marketing rule, which was denied funding in the latest 2012 financial legislation, would have a further negative effect on the turkey industry, with an impact of more than $360 million a year, according to Sietsema.
Tuesday, July 5, 2011
Ghana poultry layer numbers up, broiler numbers down
Ghana's current poultry layer count stands at 21 million, an 11% increase over 2010's 18 million, according to Kwabena Asante, chairman of the Ghana National Association of Poultry Farmers. Broilers, however, have been experiencing a downward trend for the last 10 years due to frozen chicken imports and high animal feed costs, said Asante.
Nevertheless, the poultry industry is contributing to Ghana's growth, said Asante. The rise in layers could contribute to an additional 1,500 jobs in the industry, including those in the maize sector. Roughly 529,300 metric tons of maize will be needed to feed the layers each year.
Nevertheless, the poultry industry is contributing to Ghana's growth, said Asante. The rise in layers could contribute to an additional 1,500 jobs in the industry, including those in the maize sector. Roughly 529,300 metric tons of maize will be needed to feed the layers each year.
Friday, July 1, 2011
UK pig producers call for fair prices
UK retailers and food service companies need to take a strategic approach to their supplies and pay a fair price to producers to reflect current costs, said British Pig Executive Director Mick Sloyan, who has called the next few months crucial for UK pig producers.
According to Sloyan, who wrote on the topic in the BPEX Pig Yearbook 2011, producers have lived through the biggest contrast in fortunes and emotions over the past year. What started as “reasonable profitability” in 2009 and the first part of 2010 had turned into major losses at the start of 2011, following steep increases in feed prices and aggressive price promotions by retailers which drove pig prices down, said Sloyan. “The pig price has started to move upwards here in and in Europe now, but feed prices look set to stay at historically high levels and the next few months will be crucial.”
According to Sloyan, who wrote on the topic in the BPEX Pig Yearbook 2011, producers have lived through the biggest contrast in fortunes and emotions over the past year. What started as “reasonable profitability” in 2009 and the first part of 2010 had turned into major losses at the start of 2011, following steep increases in feed prices and aggressive price promotions by retailers which drove pig prices down, said Sloyan. “The pig price has started to move upwards here in and in Europe now, but feed prices look set to stay at historically high levels and the next few months will be crucial.”
South Africa reopens market to Brazil pig meat
South Africa has reopened its market to Brazilian pig meat. As a result of an outbreak of foot and mouth disease in the state of Mato Grosso do Sul in 2005, South Africa banned all Brazilian exports of beef and pig meat. Although the restrictions on beef were lifted in 2009, restrictions on pig meat remained in place.
Brazil’s pig producers have urged the government to conclude any bureaucratic measures as quickly as possible to allow producers to access the market and emerge from the crisis currently facing the sector.
Brazil’s pig producers have urged the government to conclude any bureaucratic measures as quickly as possible to allow producers to access the market and emerge from the crisis currently facing the sector.
China to import UK pig meat
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| Pork prices are currently at record levels in China. |
Both product and export health certificates have been approved and a formal announcement was made during a UK-China summit in London on June 28, during the Chinese premier’s visit to the UK. “This is wonderful news and something we have been working towards for several years," said British Pig Executive Chairman Stewart Houston. “The process has been a long one, but one of the milestones was the signing of the export health certificate agreement by UK Business Secretary Vince Cable and ministers from the Chinese quarantine inspectorate in November last year.”
According to Houston, pork and pork product prices are currently at record levels in China. "We have a fantastic opportunity to improve returns from selling all parts of the pig," he said. “This is much needed as pig prices in this country still lag behind the cost of production caused by continuing high feed costs and other rising input prices.”
China is both the biggest producer and consumer of pig meat in the world, producing 46 million metric tons a year, but consuming still more. Depending on how the trade develops, BPEX International Manager Peter Hardwick said the market could soon be worth as much as £40 million a year.
Malaysia, Maryland University may collaborate on poultry vaccines
The Malaysian government is looking to collaborate with Maryland University on vaccine production to fight avian flu and Newcastle disease, according to Deputy Prime Minister Tan Sri Muhyiddin Yassin.
After a recent visit to the university, which included discussions of the school's collaborations with other countries, Malaysia is putting together a proposal outlining specific areas of cooperation. "Malaysia is in dire need of vaccines to fight the diseases," said Muhyiddin. "By cooperating with the university, we could benefit from it. We can draw up a framework to cooperate with the university, not just in those areas, but also in other related bio-engineering fields such as biofuel and nanotechnology."
After a recent visit to the university, which included discussions of the school's collaborations with other countries, Malaysia is putting together a proposal outlining specific areas of cooperation. "Malaysia is in dire need of vaccines to fight the diseases," said Muhyiddin. "By cooperating with the university, we could benefit from it. We can draw up a framework to cooperate with the university, not just in those areas, but also in other related bio-engineering fields such as biofuel and nanotechnology."
Russia poultry producer expands with $696 million plant
Russian poultry producer Cherkizovo Group has started construction of a new, $696 million poultry plant that will produce more than 500,000 metric tons of poultry by live weight annually, according to the company.
The plant will include a hatchery, a slaughter complex, a waste-utilization facility and a feed-producing unit. Its total annual production of poultry meat is expected to be roughly 200,000 metric tons. The plant will begin operations in 2013 and will reach its full capacity by 2015, according to Cherkizovo.
The plant will include a hatchery, a slaughter complex, a waste-utilization facility and a feed-producing unit. Its total annual production of poultry meat is expected to be roughly 200,000 metric tons. The plant will begin operations in 2013 and will reach its full capacity by 2015, according to Cherkizovo.
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