January 2 2010

Interest-free loans for pig producers

By Nick Bird, of Farmex

From February, pig farms will be able to apply for interest-free loans for energy saving from the Carbon Trust.

Unsecured interest-free loans will be from £3,000 to £20,000 for up to four years, with a target CO2 saving of 1.5t CO2 per £1000 of loan.

This is equivalent to a return of around 25 percent at typical electricity prices. That is, the loan is self-funding – loan repayments should be covered by the savings achieved over the period of the loan.

Loans are not restricted to electricity savings only, though most is used in this form in British pig production.

The requirement for rapid payback and the limited amount of the loans means they are aimed at the low cherries of energy saving, such as more efficient equipment and better regulation.

The lowest cherries in pig production are farrowing and weaning, where energy use is the most intensive and typically the most wasteful.

The following table compares energy use of typical/inefficient farrowing and weaner rooms with good/improved ones (from the Farmex / BPEX energy survey and other data).

The maximum potential loan has been calculated according to the Carbon Trust’s loan calculator, available on its website.

Most energy in farrowing and weaner rooms is used for electrical heating. The large differences between good/efficient and poor/typical are due to more effective use of heating, rather than different types of heater — for example, using lidded-curtained creeps with effective heating control, and better regulation of minimum ventilation in weaner rooms.

Monitoring has a key role to play, both in establishing the potential for energy saving and in helping to ensure that the project achieves the energy savings expected.

Few British pig farms have sub-metering to measure the use of individual buildings, and it may be difficult to make a good case for an interest-free loan in the absence of sound information on current use.

Meters are now available at low prices and are cheap to fit, so they are worthwhile even for farms that are not considering Carbon trust loans.

In practice, it is very difficult to estimate use on pig farms based only on the equipment fitted (though some energy consultants may tell you otherwise), because consumption is so much affected by how equipment is used.

Metering and monitoring after upgrading equipment is just as important for exactly the same reason.

Well aren’t we just the clever ones...

Well, here we are at the end of not only another year but also another decade, and we are feeling quite buoyant about the future with prices holding up very well as we enter the New Year.

Plans for Christmas have been delivered with few problems and now we are organising the first week’s deliveries for 2010, and we are pleased to report that generally there is a shortfall in supply.

This has meant that at least for now prices are secure with a few pennies more in places, particularly for the bacon end of the market place.

We reported a few weeks ago that contract prices and spot quotes would need to come closer together and this week we have seen the beginning of this trend with the lowest bacon quotes definitely moving upwards.

It was also important for the British pig industry to start the year with as few pigs in the system as possible, and this appears to have been achieved. This has been confirmed with the DAPP average weight now sitting at 78.15kgs, its lowest point since the end of July 2009.

The lighter fresh meat trade has, as is usual at this time of year, just paused for breath with the majority of smaller processors standing on for the following week, with supply and demand seemingly in balance.

Sow prices also perked up on the week with the majority of quotes now on or around the 95p/kg mark. This is also seen as a good sign for the clean pig market in the coming weeks as improving sow values signal better demand for manufacturing meat.

However, there are still many reasons to be cautious. Traditionally January is a time of price pressure.

Pig numbers have been managed effectively into the Christmas period and finally the recent cold weather may have slowed growth rates. Any increase in supply could well destabilise the market and we should never forget our European Union friends who like to send us bargain basement pork products to challenge our market place.

But, to start on a positive note for 2010, the financial markets are predicting sterling to be weaker in the short term, which can only serve to protect our precious market place. — Dan Day, Meadow Quality.

January 1 2010

Who chooses the way you farm pigs?
Not you...

Society shapes the way you produce pigs more than you do.

This is obvious when you think about it, especially when you consider the pressures imposed by the welfare and environment legislation introduced by Brussels in recent years, on behalf of society.

And if that’s not sufficient to prove the point, consider the way retailers have urged British producers to change their methods of production over the past decade, and how some retailers are even now pressing for a phase-out of farrowing crates.

‘Social background’ is definitely the biggest influence on modern European pig production, say two European Animal Management master of science students in a paper that compares European pig production systems in Denmark, Holland, north-west Germany, Spain and Brittany in France.

Although pigmeat production has become standardised in these areas, social pressures in each country have caused technical and economic differences, say Arnaud Buchet and Sarah Groneick.

“The social background is the most important factor shaping the pig farming systems which can be observed today. Those aspects have to be respected and kept in mind,” they believe.

Roll on 2010!

Pig traders had to remember that Friday came on Thursday this week due to the New Year's Day hangover holiday, but if yesterday's prices were a sign of things to come, roll on 2010. Traffic Lights commentary.

Denmark wants more farm biogas plants

The Danish government wants at least half of all farm manure produced in the country used to make biogas within the next ten years. Its 'Green Growth' programme sees biogas production as an important tool for cutting climate-changing gases from Danish agriculture.

If 50 percent of manure from Denmark’s 1.5m cows and 13m pigs is converted to gas, it could reduce the country’s production of climate-changing gases by as much as 8 percent.

The Green Growth programme is to be introduced this year and is Denmark’s way of implementing European Union climate protection and water biodiversity legislation.

At present around 80 Danish farms have biogas plants out of 5,500 pig and 5,300 dairy farms. So far, Denmark has specialised more in centralised municipal or cooperative biogas plants where manure from farmers as well as industrial by-products such as slaughterhouse waste is processed. There are around 20 of these. The biggest plant processes manure from 60 farms.

Down — but not down enough

December’s returns show the United States pig herd down around 2 percent last year - not enough to put the industry right. "I was hoping for about a 5 percent drop," said Sam Carney of Adair, president-elect of the National Pork Producers Council. He is urging greater reduction in pig herds to bring production in line with demand and end more than two years of steady losses for the pig industry. But pig prices have improved slightly of late, and that may cause some producers to think the worst is over.

From the Highlands this week

This website is being updated from a base in Brora in the Highlands this week.

December 31 2009

Antibiotics in United States pigmeat

Because of poor regulation of drug use in ‘industrial’ farm animals, consumers in the United States do not know what their food is treated with, or how often, claims Laura Rogers, who directs the Pew Charitable Trusts Campaign on Human Health and Industrial Farming in Washington DC. "Nor is there a system in place to test meat for dangerous antibiotic resistant bacteria," she says.

In 2008 the United States Food and Drug Administration put a limit on the amount of antibiotics used in pigs, citing the importance of cephalosporin drugs for treating disease in humans.

But the Bush administration reversed the decision five days before it was due to take effect, after receiving hundreds of letters from drug companies and farm animal trade groups.

United States farmers are reported to be giving their pigs, cows and chickens about 8 percent more antibiotics each year, usually to heal lung, skin or blood infections.

Thirteen percent of antibiotics administered on farms last year were fed to healthy animals to make them grow faster, a practice now banned in Europe.

In recent weeks the hard-pressed United States pig industry has found it profitable to send loins to Europe, notwithstanding the European Union tariff on imported third country pork of about 40p a kilo.

Although pigmeat exports from the States to Europe will be from pigs that have been produced in separate batches to European standards, importers will need to ensure an audited chain is in place, to avoid denting public confidence in the wholesomeness of pork.

Drying out after disinfection

Cleaning and disinfection are an essential part of successful disease control, preventing or reducing the transfer of infection from one batch of pigs to the next. But drying out of pens is a frequently-neglected part of the process, says Paul Thompson, veterinary consultant to ACMC. Systematic drying after cleaning and disinfection significantly improves the kill rates for many bacteria and viruses. Rooms need to be given time to dry out thoroughly and, in cold weather, it may be necessary to provide some additional heating to achieve this, he says.

December 30 2009

Base up

Traffic Lights base has shot up 6p tonight. Traffic Lights.

Stable feed prices (except soya)

In its outlook report for next year consultant Andersons sees relatively stable feed prices but warns the historically volatile imported protein element will remain expensive, partly because of the weak pound.

Consultant Lewis Butlin, of Salisbury, says, 'Risk management strategies make sense although producers have been finding processors moving away from contracts to spot prices and away from the DAPP-plus premiums previously paid.

'In planning for the long term continuation of their businesses United Kingdom pig producers need to make sound investment decisions.

'They will need to protect the better margins achieved recently by reassessing their performance objectives and by using new science and technology.'

Record slaughterings

In the week before Christmas, 1,066m pigs were slaughtered in Germany — an all-time record. As German pigs are typically taken to higher slaughterweights than, say Danish pigs, this equates to over 100,000 tonnes of pigmeat produced.

Meat-free-Mondays movement gathers momentum

The Dutch cabinet has joined the Dutch equivalent of the House of Lords, in demanding meat-free Mondays to ‘save the planet’. Lobby groups are also putting pressure on Amsterdam town council to adopt a similar stance.

December 29 2009

Danes get a taste for higher-welfare

Strong demand from Danish consumers for more welfare-friendly pork, coupled with promising export opportunities, mean Denmark’s few outdoor pig producers are getting their highest premiums ever.

Currently they are getting an extra 37p a kilo, which is a 37 percent increase on the standard Danish quotation for pigs.

The premiums are being fuelled by what one Danish press report terms a ‘surprising loyalty' by Danish consumers to pork produced to higher levels of animal welfare, despite the pressues of global recession.

December 24 2009

We keep the monkey

Back during the heady days of summer when DAPP was running at over 155p we asked you to predict where it would be on December 18.

Get it right - exactly right, mind - and Pig World would pay out £500.

Well nobody did guess correctly, but one or two gloomy types came perilously close. Andrew Knowles, of BPEX - who gave his occupation as ‘bag-carrier’ - guessed 137.52 and ‘paper shuffler’ John Godfrey guessed 137.45p. Richard Lister (the other one) guessed 137.47 and Brian Shaw guessed 139.4.

We had over a hundred entries, ranging from 119 to 176.

Picture of the year

Our picture of the year is culled from the pages of The Grocer and shows Asda boss Andy Bond. Turn around Andy... and read the writing on the wall.

Members area

The members-only area has been updated today with an article about Belgian Pietrains being sold through Chelford market in Cheshire.

Traffic Lights report

All in all it has been a good year for the British pig industry which was greatly helped by the Jamie Oliver effect earlier this year with the DAPP opening at 131.23p to peak at 155.57p in mid-July, although this has now slipped back to 138.5p.

For most of the year it has been more of a sellers’ market than the reverse and if the spring/early summer trend is repeated in 2010 the industry should remain in the black for the second year running, but it is always dangerous to count piglets before they are farrowed. Continued.

Europe and GMs

European Commission president José Barroso’s told the European Parliament in September that member countries should be allowed to decide for themselves whether they wish to cultivate GM crops on their land. But authorisations for importing and processing GM varieties must remain European-Union-wide, he said.

Health commissioner-designate John Dalli has now confirmed this will be the line he pursues when he takes over the European Commissioner health and consumer department in February.

State aid for Dutch farmers

Around £2.5m in state aid for crisis-hit Dutch farmers (particularly dairy farmers) has been cleared by the European Commission. The aid scheme is open to Dutch farmers and will take the form of state guarantees on working capital loans.

Traffic Lights

DAPP down a gnat's wotsit to 138.5p but spot prices firmer which is a good end to 2009 and augurs well for 2010. Spot sellers are able to get 130p plus today.

Arable farmers fears increased volatility

European Union wheat prices have fallen over 50 percent during the course of this year, and at the same time costs of production have been going up and for many farmers getting credit has become more difficult.

European farmers union Copa says Brussels must look at ways to protect farmers from the increasing market volatility being encountered these days.

Increasingly arable farmers are finding it hard to make sense of the economics of growing cereals.

This year has seen European Union production fall 7 percent and the latest indications are there will be a further 5 percent drop in planted area, which has the potential to trigger a price spike next year.

European Union oilseed production has risen 7.5 percent this year to 28.57m tonnes, with a 9.6 percent increase in rapeseed, according to new figures published by Copa. Estimates from grain traders association Coceral confirm the trend.

Copa's protein crop figures show a 23.5 percent increase on last year – principally through a large increase in area in both France and the United Kingdom.

Do pigs tail-bite when they get jet-lag?

By Nick Bird, of Farmex

Jet-lag? No, we’re not talking about herds of flying pigs. But I do think pigs get jet-lag. Here’s why.

For whatever reason, a lot of British farmers are convinced they need to leave the lights on all night, even though the regulations are pretty clear that they shouldn’t.

I say pretty clear – what the rules actually say is “Animals kept in buildings must not be kept without an appropriate period of rest from artificial lighting”. Maybe it’s within the law if you choose to interpret “appropriate period” as none at all in your circumstances.

Pigs really don’t need any help to find food at night; they have extremely sensitive eyes (many times more sensitive than ours).

In any case, they have a great sense of smell and not far to go. It’s not as if they’re going out into the woods to find it.

We have stacks of monitoring that shows pigs find food perfectly well, at night, with the lights off. It also shows that keeping the lights on all the time mucks up their body clock.

If, sooner or later, something changes and they have to adapt to a different day and night, it can lead to what we call in humans “jet-lag”.

In the chart above, pig activity is indicated by water flow (in an ad-lib dry-fed grower building of around 250 pigs). Feed is one of the main activities, and when they eat they drink, simple as that.

For the first two weeks, the lights were switched on at night (but switched off during the day - within the letter, if not the spirit, of the regulations -daylight came in the windows.)

During that time (highlighted in red), the total water intake/activity goes up but the range of activity diminishes.

Pigs in one part of the building are doing things at different times from those in other parts. They are drifting out of step with the “real” day, and with one another.

In fact, the peak of daily activity – such as it was - was drifting later and later. At the same time, there was a lack of true quiet time when activity ceases and all the pigs are asleep at once. Like living in Gatwick Airport.

After a while, pigs would be short a melatonin – an important hormone that is only produced in the dark.

After two weeks, the lights were switched on (by a timer) from 5am to 5pm - in phase with natural light.

You can see (highlighted in blue) that water activity goes haywire for three or four days and during this time total water intake did not go up in the same way.

After about ten days, activity has returned to what we would call a “normal” pattern – with high highs, low lows, increasing daily intake and a point at the end of the night when all activity ceases.

It’s interesting to note that the general drift in and out took a couple of weeks. This indicates that groups and individuals may vary quite widely in the speed at which they adapt.

However, the pattern was quite disturbed on the very first night after the lighting was changed – though drinking activity (and therefore feed intake) continued in the dark.

Disturbed? – Clearly. Stressed? – Probably. Possible cause of tail-bite? – Hard to rule it out.

Most farms operate lighting manually and – as previous studies of data-logging of lighting circuits have shown – often quite erratically, with many mistakes even when it’s intended to be regular.

More pigs from fewer sows

Despite this year’s 2.4 percent fall in the European sow herd, slightly more pork will be produced in 2010 as a result of a marked jump in productivity in most western European countries.

Free energy audits

The Carbon Trust is offering free energy audits to businesses that can demonstrate a total energy spend of over £30,000 a year. Farms audits are carried out by the Farm Energy Centre and were previously only available to businesses above a £50,000 threshold. Breeder-finishers with more than 600 sows might have consumption above £30,000 a year. Anyone interested in applying should contact charles.baines@bpex.org.uk or phone 07768 558093.

More pigs leave Denmark in search of better prices

Exports of Danish weaners continue to increase and will reach well over 7m this year - an increase of nearly 40 percent. Exports of finishers have continued to grow this year as well - from 700,000 last year to 950,000 in 2009. Germany remains the favourite destination for Danish pig producers seeking an economic return for their pigs. Some go to Italy and Poland.

German producers expand to accommodate Danish weaners

Over a third of European Union pork is now produced in a western hub that embraces Holland, Belgium, north-east Germany and Denmark. Generally, producers in this hub have invested less this year, because of poor returns, but new finishing units and methane plants are still being built in Germany to accommodate the increasing number of piglets arriving in the country from Denmark and Holland.

Danish slaughterhouse plans increased kill

Jutland Meat in Denmark plans to increase pig slaughtering 50 percent to 14,000. It can do this now because its four-year contract with Danish Crown, which capped slaughter at 10,000 pigs a week, has expired. Jutland Meat chief executive Frans Stortelder does not foresee problems getting enough pigs or finding export customers for the extra production.

Increased production will go to home market

Pork production in Brazil is increasing but most of the extra volume will be go to the home market where there is plenty of room for growth, as Brazilians currently eat only 14 kilos of pork a head (compared with Europe where average consumption is over 40 kilos a head). Most exported Brazilian pigmeat goes to Russia.

Brazilian producers get around 62p a kilo. There are now 122 high quality abattoirs in Brazil. About 80 percent of pigs are produced by integrators and another 20 percent by independent producers.

The market leader is Brazil Foods, created by a merger of Sadia and Perdigão with a market share of 25 percent of integrated pigs, followed by Aurora with 9 percent. Smaller players still make 49 percent of the market, so there remains scope for further mergers.

NPA at Christmas

The NPA office will not be manned December 21 to January 4. If you need to contact NPA urgently during this period, call general manager Barney Kay on 07814 448956.

The NPA website will be updated every day except perhaps Christmas day, but not necessarily in a responsible and sober fashion.