GMO corn seeds in Brazil no longer resistant to bugs, farmers claim

Genetically modified corn seeds are no longer resistant to devastating tropical bugs in Brazil, a farm group said.
Producers are calling for four major manufacturers of "BT" corn seeds to reimburse them for the cost of spraying up to three coats of pesticides so far in 2014, said Ricardo Tomczyk, president of Aprosoja farm lobby in the Brazilian state of Mato Grosso.
"The caterpillars should die if they eat the corn, but since they didn't die this year, producers had to spend on average 120 reais (US$54) per hectare ... at a time that corn prices are terrible," he said.
The main corn culprit in Brazil is Spodoptera frugiperda, also known as the corn leafworm or southern grassworm. However, seed companies reportedly warned farmers to plant a part of their corn fields with conventional seeds to prevent bugs from developing a resistance to the GMO seeds. 
Dow Agrosciences, a division of Dow Chemical Co., has programs in Brazil to help corn farmers develop "an integrated pest management system that includes, among other things, the cultivation of refuge areas," the report says. Other companies, including DuPont and Monsanto Co., have said they have not yet received any formal notice. 
"There are barely any non-GMO seeds available ... it is very uncomfortable that the companies are blaming the farmers," Tomczyk said. Aprosoja hopes to reach a negotiated agreement with the seed companies, but if all else fails farmers may sue to get reparations for pesticide costs, according to Tomczyk.

Feed groups urge USDA to restore grain inspection in Vancouver, Wash.

More than 20 national, regional and state agricultural producer, commodity and agribusiness organizations, including the American Soybean Association, National Association of Wheat Growers (NAWG), National Corn Growers Association, and National Grain and Feed Association (NGFA), have urged the U.S. Department of Agriculture (USDA) to take immediate action to restore official grain inspection and weighing services at the Port of Vancouver, Washington.
In a recent letter to the secretary of agriculture and other key administration officials, 22 organizations cited a notice by the Washington State Department of Agriculture (WSDA) stating that it no longer would fulfill its obligation to provide official grain inspection and weighing services at the Port of Vancouver. WSDA was responsible for providing official grain inspection and weighing services at the port by USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA).
In a notice on July 1 stating that the official inspection services would be suspended indefinitely, effective July 7, the director of WSDA’s grain inspection program stated one of the reasons as the belief that the “continued provision of inspection services appears to have been unhelpful in leading to any foreseeable resolution” of the labor dispute.
Several organizations also met in October 2013 with GIPSA and other USDA officials to urge that the agency prepare contingency plans to ensure an “immediate and effective” program to continue official services at the port after several service interruptions.
“This issue is of great concern to the wheat farmers in the Pacific Northwest as well as around the country,” said Paul Penner, NAWG president. “If Washington state inspectors are unable to perform their duties, then the time has come for federal grain inspectors to step in and do their mandated jobs to get grain flowing out of the port of Vancouver.”
“To our knowledge, this latest announcement by a designated state agency declining to provide official services is unprecedented,” according to the groups’ letter. “We believe WSDA’s actions create an extremely troubling precedent that will cause irreparable damage to the integrity and reliability of the nation’s official grain inspection system.”
The groups also noted the “uncertainty” that exists within the U.S. grain export industry and among U.S. agricultural producers and international buyers of U.S. commodities regarding potential future disruptions of official services at facilities operating at other U.S. export ports. Under the U.S. Grain Standards Act, USDA was granted the responsibility and obligation to provide official inspection services to facilitate efficient and cost-effective marketing of U.S. grains and oilseeds.
“To this point, confidence that the U.S. official grain inspection system will function in a continuous and consistent manner — and not be subject to unwarranted disruptions — has been instrumental in facilitating the ability of U.S. farmers and agribusinesses to reliably serve foreign customers and remain competitive in world markets,” the groups wrote.
U.S. organizations that signed the letter include: Agricultural Retailers Association; American Farm Bureau Federation; American Soybean Association; National Association of Wheat Growers; National Corn Growers Association; National Grain and Feed Association; National Oilseed Processors Association; North American Export Grain Association; Transportation, Elevator and Grain Merchants Association; U.S. Grains Council; U.S. Soybean Export Council; and U.S. Wheat Associates.
State and regional organizations that signed the letter include: Idaho Grain Producers, Minnesota Grain and Feed Association, Montana Grain Growers Association, North Dakota Grain Dealers Association, North Dakota Grain Growers Association, Oregon Wheat Growers League, South Dakota Grain and Feed Association, South Dakota Wheat Inc., Pacific Northwest Grain and Feed Association, and Washington Association of Wheat Growers.

Swine influenza in a third of Scotland, Northern Ireland herds

Aggregated data from surveys in Scotland and Northern Ireland show that more than a third of swine herds surveyed are positive for swine influenza, according to Merial Animal Health, maker of swine influenza vaccine Gripovac 3. Between the surveys just over 280 farms were assessed and serology demonstrated that 34 percent were positive.
This compares to research on pig farms in England carried out by the Royal Veterinary College (RVC) and the COSI Consortium in 2010, which showed that 59 per cent of herds were positive for one of the swine influenza strains.
The Scottish data is from figures collected by Quality Meat Scotland based on blood samples taken in 2012 and 2013. The Northern Irish data was gathered at the two main slaughter houses in the Province in 2011.
Callum Blair, Merial Animal Health said: “We would suspect that the results of blood tests at slaughter are an underestimate of the actual prevalence of swine influenza as antibodies from natural infection wane over time. Pigs that may have been affected, therefore, could still test negative at slaughter.  So it may be that the prevalence is even higher than a third of herds. The disease can be sub-clinical and the productivity of the herd can fall before the disease is detected. By this point, treatment can be costly and pigs’ health severely compromised.
 “In the case of the Northern Irish study there also seemed to be a link between the prevalence of swine influenza and pericarditis (infection around the heart) and pleuritis (infection around the lungs).”
Swine influenza can also significantly increase herd replacement rates. It increases the likelihood of both abortion and still births. The disease can affect conception rates and decrease lactation, both of which add to a decrease in herd output.

Cal-Maine Foods net income surges in FY 2014, 4Q 2014

Cal-Maine Foods achieved a net income of $31.5 million for the fourth quarter fiscal year 2014, a substantial improvement over the net loss of $3.8 million recorded during the fourth quarter of FY 2013. The largest egg producer in the United States also reported a large jump in net income for FY 2014, reaching $109.2 million, up from FY 2013’s net income of $50.4 million.
The fourth quarter and fiscal year ended May 31.
A significant reason for the surge in net income for both periods was that during the fourth quarter of 2013, Cal-Maine Foods incurred $17 million in expenses related to the settlement of antitrust litigation.
Cal-Maine net sales for FY 2014, 4Q 2014
For the fourth quarter of fiscal 2014, Cal-Maine Foods’ net sales were $371.6 million compared with net sales of $325.9 million for the fourth quarter a year ago.
For the fiscal year 2014, net sales were $1,440.9 million, compared with net sales of $1,288.1 million for fiscal 2013.
Commenting in a press release on the results for the fourth quarter and fiscal 2014, Dolph Baker, chairman, president and CEO of Cal-Maine Foods, Inc., said, “We are pleased with our financial and operating performance for the fourth quarter of fiscal 2014 with sales up 14.0 percent over the same period a year ago. These results reflect both higher volumes and higher average selling prices compared with the fourth quarter of fiscal 2013. Total dozens produced increased 8.1 percent, total dozens sold increased by 2.5 percent, and our average selling price per dozen was up 12.0 percent over the same period last year.”
“Our operations continued to run well in fiscal 2014. We were able to benefit from lower and less volatile feed costs compared with the previous year. For fiscal 2014, our average feed costs were 49.3 centsper dozen, down 8.7 percent from fiscal 2013. Throughout our operations, our management team continued to execute on all the fundamental aspects of making Cal-Maine Foods an efficient, low-cost producer. We were pleased to report operating income of $146.1 million for fiscal 2014 compared with $59.6 million for fiscal 2013. Our expansion projects for our operations in Florida, Texas and Kentucky are on schedule, and we expect to benefit from the additional capacity and improved efficiencies in fiscal 2015 with less dependence on outside egg purchases.”
Cal-Maine achieves sales records in dollars, volume
Baker stated that for FY 2014, Cal-Maine Foods exceeded its previous year’s sales record with $1.4 billion in sales in fiscal 2014. The company also achieved the milestone of selling more than one billion dozen fresh eggs during FY 2014, a record for both the company and the global egg industry.
“These results reflect strong demand for shell eggs throughout the year from all the major market segments including retail, egg product and exports,” Baker said.
Specialty egg sales climbing
Baker reported that specialty eggs accounted for 17.2 percent of Cal-Maine’s total number of shell eggs sold and 24.3 percent of the company’s shell egg sales revenue for FY 2014.
Cal-Maine’s new venture with Hickman’s Egg Ranch, announced just prior to the release of the company’s quarterly and annual financial results, will help further Cal-Maine’s market position with specialty eggs, Baker said. The venture will be known as Southwest Specialty Eggs LLC.
 “Specialty egg sales have been an important area of strategic focus for Cal-Maine Foods. Our latest joint venture, Southwest Specialty Eggs LLC, will further expand our market reach in specialty egg sales in the southwestern United States. We expect specialty eggs, which have a higher retail selling price, will continue to gain market share over regular eggs as more consumers are willing to pay for these premium products. Overall, our average selling prices were up 4.7 percent in fiscal 2014, reflecting a higher percentage of specialty egg sales,” Baker said.

Canadian government commits funds for broiler health research

The Canadian government has committed an investment of up to CA$275,000 (US$254,606) to the Chicken Farmers of Saskatchewan to undertake research on disease control in the Saskatchewan broiler chicken industry. The allocation of funds was announced by Brad Trost, a member of parliament.
With this investment, the Chicken Farmers of Saskatchewan aims to identify and characterize new variants of the avian reovirus and determine how they are transmitted. It also aims to evaluate the safety and effectiveness of vaccines for inclusion body hepatitis (IBH) in field trials.
This project is a step in the development of vaccines for avian reovirus and IBH, two diseases that are a common problem for many Canadian broiler producers. If commercialized, these vaccines have the potential of reducing economic losses in the Canadian chicken industry and the need for therapeutics by preventing instead of treating these diseases.
"Our government supports the Canadian chicken industry's ability to seek innovative solutions that will help it prosper and remain competitive,” said Trost. “This project involves the development of control measures for emerging diseases impacting the sector, thereby helping it to remain a significant contributor to Canada's economy."
Diane Pastoor, chairperson of the Chicken Farmers of Saskatchewan, welcomed the government’s commitment to poultry health research.

Shanghai Husi products withdrawn from marketplace

Husi Food Co. has withdrawn all of its products manufactured by Shanghai Husi from the marketplace. The company has done so in an effort to help rebuild the trust of its customers and consumers, as well as to cooperate with the investigation of the company after it allegedly repackaged expired poultry and beef and sold it with false expiration dates printed.
Quick service restaurant chains KFC, Pizza Hut, McDonald’s and Dicos reportedly purchased the products for their Chinese locations, not knowing they were expired. McDonald’s also purchased expired meats for locations in Japan.
The alleged incident is being investigated by the Shanghai Office of the State Food and Drug Administration. Husi Food Co., along with its parent company, OSI Group, is also conducting its own investigation. Husi Food Co. is looking into any possible failures on the part of current and former management, the company said in a news release. Should any misconduct be uncovered, OSI Group said it will take swift and decisive action against those responsible, including all relevant disciplinary and/or legal measures.
Brent Afman, senior vice president and managing director of OSI APMEA, said: "These decisions are the most responsible course of action we can take at this point in time. We are working hard to bring assurance to our customers and ultimate consumers.”
OSI Group said it will conduct a full, fair, and comprehensive investigation on managers at all levels for evidence of management failures. In the meantime, Chinese operations will be managed by global management in accordance with global standards of quality management.
Afman said OSI’s global support teams are arriving in Shanghai and are working closely with the local team and conducting of a “leave-no-stone-unturned” investigation. As part of this process, OSI has been and will continue to fully cooperate with the Shanghai agency and other regulatory organizations. 
“We are committed to openness and transparency.  We are providing clear and full explanations and findings to all concerned as early as possible,” said Afman.  “We remain committed to our presence in China and have sent our best team of global experts to ensure we resolve this.We are very proud of our team members and our operations in other parts of China.  It reinforces our confidence and commitment to China.  We have a great deal yet to deliver to China.”

Tyson Foods earnings reach record in third quarter 2014

Tyson Foods recorded record earnings during the third quarter of fiscal year 2014, reaching $260 million or 73 cents per share. That represents a 4.4 increase from the $249 million or 69 cents per share achieved in the third quarter of fiscal year 2013.
Its adjusted earnings per share (EPS) for the quarter was 75 cents.
The meat, poultry and food processor also reported that its quarterly sales reached $9.7 billion, an 11 percent increase over its third quarter results in 2013.
"With $0.75 adjusted EPS, this was a record third quarter," said Donnie Smith, Tyson Foods' president and CEO. "Overall, our results were in line with our expectations. The Chicken segment could have performed better had it not been for isolated issues at a couple of plants. The Beef segment finished the quarter remarkably well after a difficult start. The Pork segment had a record third quarter despite tight hog supplies due to the PED (porcine epidemic diarrhea) virus.The Prepared Foods segment had a disappointing quarter primarily due to the continued run up in pork raw material inputs.
Tyson Chicken segment
Sales for Tyson’s Chicken segment jumped $9 million to $2.829 billion for the third quarter of 2014. The segment’s operating margin dropped $10 million to $195 million.
Sales volumes for the third quarter of fiscal 2014 grew as a result of stronger demand for chicken products and mix of rendered product sales. The average sales price decreased as feed ingredient costs declined, partially offset by mix changes. Operating income for the third quarter of fiscal 2014 was negatively impacted by rapidly rising costs of outside meat purchases as well as operational disruptions at two facilities.
For the nine months of fiscal 2014, operating income increased due to higher sales volume and lower feed ingredient costs, partially offset by decreased average sales price. Feed costs decreased $120 million$460 million for the third quarter and nine months of fiscal 2014, respectively.
Tyson Pork segment
The Tyson Pork segment saw its sales jump from $1.3 billion to $1.77 billion and its operating income jump from $67 million to $128 million during the third quarter of fiscal year 2014.
Sales volumes increased as a result of better domestic demand for pork products. The average sales price increased due to lower total hog supplies, which additionally resulted in higher input costs. Operating income increased as Tyson maximized its revenues relative to live hog markets, partially attributable to operational and mix performance.
Tyson Beef segment
Sales for the Tyson Beef segment increased from $3.7 billion to $4.2 billion for the third quarter of FY 2014. Its operating income dropped from $114 million to $101 million.
Sales volumes decreased for the third quarter of fiscal 2014 due to a reduction in live cattle processed.
Operating income decreased for the third quarter of fiscal 2014 due to higher fed cattle costs and periods of reduced demand for beef products, which made it difficult to pass along increased input costs, as well as lower sales volumes and increased operating costs.
Tyson Prepared Foods
Sales volumes for Tyson Foods’ Prepared Foods segment increased from as a result of improved demand for the company’s prepared foods products and incremental volumes from the purchase of three businesses. Average sales price increased due to better product mix and price increases associated with higher input costs. Operating income for the quarter decreased from $24 million to a loss of $50 million for the quarter as a result of higher raw material and other input costs of approximately $95 million, and additional costs incurred as the company invested in Tyson’s growth platforms.
“Because many of our sales contracts are formula based or shorter-term in nature, we are typically able to offset rising input costs through pricing. However, there is a lag time for price increases to take effect. Additionally, in the third quarter of fiscal 2014, we incurred a $49 million impairment charge related to the planned closure of three plants, which are expected to cease operation by mid-fiscal 2015,” the company stated.
Tyson International segment
Tyson’s International segment increased its sales from $343 million to $365 million during the third quarter, but its operating income suffered a $15 million loss, compared to a $5 million gain during the third quarter of 2013.
The company stated that it expected its International segment to struggle during the third quarter of 2014, but it does expect it to perform well in fiscal year 2015. Its optimism for 2015 is partly because  the company has a pending transaction in which JBS SA and subsidiary Pilgrim’s Pride are to purchase Tyson’s poultry businesses in Brazil and Mexico for a price of $575 million.