ForFarmers sees ‘robust’ results in 2013

ForFarmers announced March 25 that it saw €2.6 billion (US$3.6 billion) in turnover in 2013, a 29.5 percent increase from 2012. The company said 26.5 percent of this was from acquisition effects. It increased its volume of compound feed 30.7 percent to 5.8 million metric tons in 2013.
"The year 2013 was for us largely dominated by the integration of Hendrix and BOCM PAULS," said Yoram Knoop, CEO ForFarmers. "Underlying turnover and results proved to be relatively robust and were in line with expectations, despite the challenging market conditions. We further strengthened our financial position, partly due to more effective working capital management and the proceeds from the sale of Cefetra."
The company's gross profit, although pressured by exchange rate effects and greater volatility of raw materials prices, increased by 24.8 percent to €387.5 million (US$534.4 million). Gross profit fell by €13.4 million (US$18.5 million) compared with the pro forma 2012 results. ForFarmers increased its volume of compound feed 30.7 percent to 5.8 million metric tons in 2013. Feed sales volumes increased 2.2 percent compared with the pro forma 2012 results. ForFarmers said the lower operating profit and profit after taxes were largely due to extra addition to provision for receivables.

Pig welfare agreement reached in Denmark

A new agreement for improving pig welfare standards has been reached between Dan Jørgensen, the Danish Minister for Food, Agriculture and Fisheries, and organizations with an interest in pig production. These include Denmark's leading animal welfare campaigners.
Representatives of Denmark's veterinary profession, retailers and consumer groups were also signatories to a formal declaration, whose terms will ensure improved welfare for pigs while helping the Danish swine industry to realize its growth potential in the years ahead. The agreement was reached at a recent welfare summit convened by the minister.
"We are delighted that the parties have succeeded in reaching a broad agreement, which will secure even higher pig welfare standards in Denmark. At the same time, it recognizes that Danish pig production should achieve the economic growth that Danish society wants. The agreement underpins our future work by finding solutions to some of the major challenges of pig production," said Martin Merrild, Danish Agriculture & Food Council chairman.
Merrild said that the agreement is a natural extension of the important work on improved welfare that the industry, in partnership with scientists and the authorities, has been engaged in over a number of years.
The agreement will set specific targets, with immediate actions identified, in the following areas:

• Improve survival rates among piglets
• Encourage uptake of free-farrowing systems for sows - at least 10 percent of sows by 2020
• Find alternatives to castration of male piglets without anaesthetic by 2018 latest
• Reduce numbers of tail-docked piglets
• Lower incidence of stomach ulcers in both sows and finishing pigs
In addition, a major project for new housing design will focus on welfare considerations. The meat industry and retail trade will also provide consumers with more information and greater choice of higher welfare products.
Merrild continued, "It is only in the interests of our farmers that we continue to improve piglet survival rates and try to find sustainable solutions for a number of the challenges that pig production is facing. First and foremost, this will lead to higher welfare standards, but it's also crucial that we producers are as skilled as possible at what we do so that in the long-term we can increase exports and protect the jobs of those employed in agriculture and food production."
Erik Larsen, chairman of the Danish Pig Research Centre, is another who views the agreement as a positive step along the road to improved welfare and competitiveness of Danish pig production.
"We've already come far in a number of areas. Levels of piglet mortality have fallen and we can see the effects of the work we've already done. Together with our partners in this agreement, we have high hopes that we can create even stronger pig production in Denmark, for which there is widespread support."
The following organizations were signatories to the declaration:

• Ministry of Food, Agriculture & Fisheries
• Landbrug og Fodevarer (Danish Agriculture & Food Council)
• Videncenter for Svineproduktion (Danish Pig Research Centre)
• Dyrenes Beskyttelse (Animal Protection)
• Dyrenes Venner (Animal Friends)
• Den Danske Dyrlægeforening (The Danish Veterinary Association)
• Danske Slagtemestre (Danish Master Butchers)
• De Samvirkende Købmænd (The Federation of Grocers)
• Coop Danmark A/S
• Dansk Supermarked
• Forbrugerrådet (Danish Consumer Council) 

PED virus creates 2-year shortfall in US hog markets, report says

Porcine epidemic diarrhea (PED) virus is expected to have significant impacts on North American swine production and slaughter through 2015, according to a new report published by Rabobank.
In the report, published by the bank's Food & Agribusiness Research (FAR) and Advisory team, Rabobank says that PED virus has to date impacted about 60 percent of the U.S. breeding herd, 28 percent of the Mexican herd, and is beginning to develop in Canada.  If PED virus spreads in Canada and Mexico at the pace seen in the U.S., Rabobank says that North American hog slaughter could decline by nearly 18.5 million hogs over 2014 and 2015, or 12.5 percent relative to 2013 levels.  Overall U.S. pork production is anticipated to decline 6 to 7 percent in 2014, the most in more than 30 years.
"In the U.S., we see the outbreak of PEDv causing a significant shortfall in the availability of market hogs in 2014 - to the tune of 12.5 million hogs or 11 percent of annual slaughter," explained Rabobank Analyst William Sawyer. "Given the ever-rising number of PEDv cases reported, coupled with a six-month average lifecycle, the months of August through October are likely to be the tightest for processors, where slaughter could decline by 15-25 percent against 2013 levels. If the virus continues at its current rate, the shortfall to U.S. slaughter in 2014 could be as much as 15 million hogs."
The specific origin of PED virus in the U.S. has not been definitively identified but comparison of strains of PED virus in the U.S. have indicated a close relationship with strains in China. What is clear is that once the virus enters a region, it can spread quite easily and rapidly throughout an entire population. The most common avenue is on livestock and farm equipment that come into contact with hogs positive with PED virus or their feces.
In regard to productivity, 2014 will be a story of "the haves and have-nots" where hog producers who experienced mild cases of PED virus, or none at all, could realize margins of more than $60 per head, the highest calendar year average seen in Rabobank's 40-year record. Conversely, hog producers who have had difficulty eradicating the virus could suffer significant losses as the pain of the high fixed costs of modern hog production compounds prolonged periods of weak productivity.
Packers for the year to date have been in a "haves" position as the fear of possible stockouts have pushed pork cutout prices up much faster than hog prices. The gross margin for packers reached $63 per head, up from $37 this time last year.  Profitability is likely to wane in the spring and summer, as prices continue to climb, testing pork demand, and hog shortages force packers to idle plants.

British Poultry Council launches European Parliament manifesto

The British Poultry Council has launched its own manifesto ahead of May's European Parliament elections.
The association is calling on all U.K. candidates to see themselves as facilitators of growth for the U.K. poultry market, and to take forward 12 priorities over four key themes into the next parliamentary term.
Regarding food quality, the BPC says that candidates should safeguard consumer confidence in food quality by defending hygiene standards, microbiological inspections and better labeling.
Where sustainable production is concerned, candidates are being encouraged to be champions of intensive poultry production, to support its development and to promote genetically modified technology and the responsible use of feed.
Regarding animal health and welfare, candidates are urged to continue to lead on promoting animal welfare in other countries and the implementation of risk based regulation, along with supporting self-regulation for compliant companies.
In terms of the EU and the global marketplace, parliamentary candidates should support market access to enable exports of poultry meat and to review and, where possible, reduce the cost of regulation on the industry and insist that foreign imports meet the standards set by EU products. 

BPEX to enhance historical pig price reporting

Following its meeting on March 12, the BPEX Board agreed to launch new historical pig price reports that will replace the DAPP (Deadweight Average Pig Price) after a six-month transition period. The all new GB All Pigs Price (GB APP) will have the same specification as the DAPP but data will be collected from sellers rather than buyers as at present.
There will be a transition period of six months when the DAPP and the GB APP will be published in parallel.
The board decided to make this change following the alterations in the DAPP sample at the start of 2014. There has been a reduction in both the sample throughput and the number of participating processing companies which presents a risk to the future sustainability of the DAPP.
The GB APP will be constructed using the same sample specification as the current DAPP. It will be based on individual pig data that includes the gross price (before deductions) and weekly paid bonus payments.
It will not include retrospective bonus payments that are dependent on achieving contract criteria. Data providers will be audited to ensure the specification is followed.
Due to the change in the data collection process, the GB APP will be reported two weeks after the week in which the pigs are killed.
It is planned that the GB APP will be published for the first time by AHDB Market Intelligence on April 16 for pigs killed in the week commencing March 31. It is also planned to expand the sample of pigs.
The weekly EU Reference Price will continue to be produced and published as at present.
BPEX will also continue to explore the feasibility of an additional price series based on standard pigs only purchased in the United Kingdom.
BPEX Director Mick Sloyan said: "Having good quality market information, including historic price data, is vital for an efficient and competitive pig production and processing industry.
"This enhancement will deliver a robust and sustainable price reporting system. It will also give those in the industry who follow the DAPP a transition period to develop an understanding of the GB APP.
"We will continue to look at additional historic price data that might be of benefit to the industry. I would strongly urge producers and processor not to use historical price reporting as a means to determine future pig prices. The purpose of historical price reporting is to provide all parties with an accurate record of past market events."

Feed binder market estimated to be worth $1,749.1 million by 2018

A new report from Markets and Markets predicts the feed binder market will be worth $1,749.1 million by 2018.
The report, "Feed Binder Market by Type [Natural (Wheat, Guar Meal & Starch, Lignin, Bentonite & Clay, Specialty Hydrocolloids & Gums, Others), Synthetic (Urea Formaldehyde, Polymethylocarbamide, Others)], by Livestock & Geography - Trends & Forecast up to 2018," defines and segments the feed binder market with analysis and projection of the global revenue of the feed binder market. It also identifies the driving and restraining factors for the global market with analyses of the trends, opportunities, burning issues, winning imperatives and challenges.
The market is segmented and revenue is projected on the basis of main regions such as North America, Europe, Asia-Pacific, and the rest of the world (ROW). The markets of key countries of each region are studied and projected. Further, the market is segmented and revenue is projected on the basis of types, livestock, and geography.
Feed binders are substances which are added to animal feed for various purposes such as to help animal to grow faster and healthier, to add more nutritious content for better digestion, to decrease the feed wastage, to make it palatable for animals, and to help them gain immunity against various infectious viruses and diseases. Thus, feed binders optimize and maintain the health of animals that are consumed by humans. Feed binders can be mainly classified as natural binders and synthetic binders.
The driving factors of the demand for feed binders are the awareness regarding the quality of the animal meat that is being consumed and a significant rise in the global meat consumption due to the improvement in the living standards of the people. The main restraint of the industry is the increase in raw material cost of the feed binder, which makes it quite expensive for many manufacturers. The cost of inclusion is the other restraining factor, which is hindering the growth of the feed binders market. The market for feed binders, in terms of revenue, was estimated to be worth around $1,406.5 million in 2012 and is projected to reach $1,749.1 million by 2018, growing at the compound annual growth rate of 3.7% from 2013. The leading manufacturers are focusing on expansion of businesses across regions and setting up new plants for increasing production capacity and their product line. The leading industry participants are involved in mergers and acquisitions to penetrate the untapped markets.

Adifo strengthens BESTMIX market position in the Philippines

At the recent Pig Feed Quality Conference in Manila, Belgian Adifo signed a distributor agreement for its BESTMIX software with Bro Nutrivet from Batangas Philippines.
These products include BESTMIX least-cost feed formulation software, BESTMIX lab information management software and BESTMIX cloud-based Formulation as a Service tool.
"Adifo has been very active in the Asian market in the last decade.  We believe that Bro Nutrivet will be a valuable partner in distributing and servicing our world leading products in the Philippine market," said Hans van der Waal, market development manager at Adifo.
Bro Nutrivet is a Philippines-based veterinary trading company that markets and sells animal health and nutrition products including farm equipment to commercial farms and feed mills nationwide.