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Name the price by Pig Fair
NAME THE PRICE BY PIG FAIR
Deadline: midnight, Thursday April 10.
If you can guess what the Traffic Lights spot price will be by Pig Fair you could win £300 courtesy of Pig World and BPEX. You need to make your guess by midnight, Thursday April 10, and you can do it using the form below. There is serious intent to this competition: to remind the rest of the chain of why producers need price rises now — to prevent pigs becoming even more scare going forward. April issue of Pig World carries guesses made on Easter Sunday by Sam Walton (137p), Digby Scott (126p) and Andrew Knowles (121p). (Mind you, Mr Knowles — with his mind no doubt on matters more spiritual — comprehensively failed to read his brief, and submitted a figure for DAPP, not spot). Full details in April Pig World. The number of entries so far has been staggering.
Boom-time on British units?
BOOM-TIME ON BRITISH PIG UNITS?
Increasingly producers are reporting dramatically improved productivity (often with the rider "Just at the time when we didn't want it!"). Is this improvement common across the national herd, and if so what are the key drivers? I would like to take a snapshot of the picture across the country. Therefore I would be most grateful if producers, managers, vets etc will complete the very brief questionnaire below. I won't publish your name (or at least not unless I specifically ask your permission first). — Digby Scott.Favourite reason given so far by a contributor to the snapshot: "Hard work and the boss keeping out of the way."
Favourite occupation given so far: "President of football club". (Who could that be, then?)
9/04/08
Dutch producers get the message
The United Kingdom is probably leading the way in sow culling so far this year. Figures are not available yet for all European countries.
The higher rate of attrition in the United Kingdom herd may not be particularly significant when considering European pigmeat supply as a whole.
But it shows that home-produced pork is going to be in shorter supply later this year than, for instance, Danish pork. This state of affairs means honest county-of-origin labelling will become increasingly important as the year progresses.
The industry will also need to be on its guard against a return of tertiary brands (imported pigmeat dressed up to look British).
Unless there is a feed price correction in the next few months, a second wave of culling may take place on the continent — because all pig producers need a sustained period of much higher pigmeat prices if they are to survive.
The bigger cull in the United Kingdom may be attributed to the greater cost of higher-welfare production.
But NPA’s Ian Campbell has made the point on several occasions that it will also be due to the fact that many United Kingdom are able to quit with a clean(ish) pair of heels, whilst those Dutch and Danish producers who have borrowed heavily to build bespoke pig buildings are finding themselves in a less enviable position.
That said, the chart above - from data collected by BPEX— suggests that some of the Dutch producers who were minded last year to tough it out, have now decided to cut their losses and are downsizing or quitting.
At December last year, Denmark, France, Ireland, Germany, Italy, Hungary, Poland and the Czech Republic all reported reductions in their national sow herds, with the biggest reductions being in Hungary, Poland and the Czech Republic.
The Netherlands recorded an increase in its national sow herd, but the latest sow culling data shows its producers are rectifying the situation now (see chart above).
The United Kingdom census for December 2006 to December 2007 showed little change in the national sow herd — but this was due to the poor price for cull sows during foot and mouth (see BPEX chart below).
Slaughtering has remained high in the United Kingdom through this year, averaging 5,000 a week - which is 45 percent higher than usual.
Calls to Pig World indicate it is not only the immediate cost crisis that is to blame. The crisis is causing producers to review whether they wish to remain in pigs going forward, given the uncertainties of the marketplace and the increasing level of regulation.
The result is that even some producers who are comfortable that the price will indeed be 150p in a few months, and will stay there for some time, are now deciding to quit.
For more information about sow culling trends, go to 
8/04/08
European herd will continue shrinking next year
European Union pigmeat production is expected to continue to decrease through the year and by October-December will be 4.1 percent lower than last year.
And as futures markets give no sign of a significant fall in feed costs, the shrinkage will continue as a longer term phenomenon, causing shortages of supply and better prices for producers, according to a price forecasting meeting in Brussels.
The European agriculture directorate is expressing increased interest in the feeding of poultry meat protein to pigs as an alternative feed source. The European Union's soya supply has comes under pressure since growers took to the streets of Buenos Aires to protest at the Argentina president's refusal to renounce a tax hike on soy farmers.
In recent weeks the European producer price has reacted more quickly than United Kingdom prices to the growing shortage of pigs.
Average European Union price this year is expected to be up 11.3 percent on last year but this figure includes a wide range of forecasts from individual countries. Romania, for instance, expects a rise of only 2.4 percent, whilst France expects 22 percent and the Dutch are looking at 12.4 percent.
Processing capacity limits sow cull
The United States pig herd grew 11 percent last year and is now said to be losing £8.5m a day, with producers losing £15-£25 a pig as a result of over-supply and high feed costs.
According to one analyst, a reduction in the national sow herd will be hampered by limited processing capacity. About 65,000 sows have been sent to market in the last few days, but not all got bought because sow processing plants are already full.
Smithfield is cutting back its sow herd. Tyson Foods, which buys pigs from independent producers for its six mid-west pork plants, and also has its own 70,000 sow herd, said it is concerned about rising grain prices and the impact on pig farmers.
But the company has declined to discuss plans, ahead of its April 28 second-quarter earnings statement, for any changes it might make to its pork operation.
According to one commentator, this has been the nation’s largest first-quarter pork production in history. “It will take at least two or three quarters to work through present supplies, keeping pork prices lower for consumers."
Following the shake-out currently taking place in the United States pig industry, it is expected more processors will put their pig farmer suppliers on contract, so that in future they have greater control over supplies and price.
Vion vies for Grampian
Dutch processor Vion has emerged as the preferred bidder for Grampian Country Food Group. Analysts expect it to value Fred Duncan’s company at around £350m. An announcement is expected soon.
Cranswick delights investors
Having disappointed the market with its quarter-three trading update, Cranswick has delighted investors this week by reporting strong quarter-four performance with continuing strong sales. Cranswick chairman Martin Davey says there is always a time lag in passing higher costs on and the company has now managed to do that in its primary processed pork business. Cranswick is at the upper end of the pork market and the company feels this will insulate it from the worst effects of any credit crisis-related downturn. Total sales for the year to the end of March are 21 percent up on the previous year. Total fourth-quarter sales are up 19 percent.
Carcase scoring film to be played at Pig Fair
British Pig and Poultry Fair 2008 has teamed up with BPEX to deliver an interactive workshop on the British Pig Health Scheme. The workshop will run on both days.
Based on the Wholesome Pigs Scheme that has operated in Scotland for the past two years, the British Pig Health Scheme uses specialist pig vets to assess a range of health conditions in pig carcases slaughtered in abattoirs throughout Britain. Members and their vets then receive consignment and quarterly reports on the health status of their pigs with:
• Early warning on emerging disease problems.
• Objective measurement of herd health improvements.
• Feedback on the effectiveness of vaccination.
The interactive pig health workshop, led by pig veterinarian Nigel Woolfendon, of Bishopton Vet Group, will give producers the chance to understand how the British Pig Health Scheme operates and how they can benefit from membership of the scheme.
“Pigs can show signs of sub-clinical disease in the carcase even though they didn’t show any obvious signs of disease whilst in the herd, so the British Pig Health Scheme is one of the useful tools available to help maintain pig health,” said Nigel Woolfendon.
“If sub-clinical diseases are found early in carcases at the abattoir, animals can be treated accordingly to aid prevention of the disease manifesting itself in the herd on farm. The scheme provides an early warning system so that potential problems can be solved more quickly and promptly.
“There are eight key conditions affecting pigs, many of which are respiratory, including enzootic pneumonia, milk spot liver, pleurisy and peritonitis, and they have a major impact on pig growth and carcase value.
“For the Fair workshop, we will play a film of the vet at the abattoir to show how the pig is assessed, what the conditions look like and how they affect the pig - something producers will not have seen before.”
The workshop will be a practical session, supported by pictures showing conditions in the pig ranging from healthy to very unhealthy, and a model of a pig with pull-away sections will be used to explain which part of the pig is which.
There will also be examples of how farmers have used the results to adjust their farming methods and producers will be able to discuss their results during the session. The information delivered by the scheme can help reduce production costs by up to 5p a kilo.
All producers are invited to go along to the workshop at the Fair - both those who are already involved in the scheme as well as those yet to sign up - to talk to vets about how they can get the best out of the scheme and for guidance on how to interpret British Pig Health Scheme results. The workshop will run at 3pm on both days in the workshop theatre between halls 1 and 2.
The Fair will provide an ideal chance to gain more information about the British Pig Health Scheme and other pig health issues, including the growing need for whole-chain collaboration on health management.
The Fair aims to open up discussion on co-ordinated disease control throughout the food supply chain: from the farm and the abattoir, through processing to the retailers’ shelves.
Plus, PIPR points are available for participants – one for attending the Fair and a second for attending the workshop. Please see the website for details: www.pigandpoultry.org.uk. And, for any further advice on the British Pig Health Scheme scheme, producers can visit the BPEX stand at the Fair or contact their vet.
Minister supports pork campaign
Scotland rural affairs secretary Richard Lochhead has added his voice to Quality Meat Scotland’s 'Get some pork on that fork' campaign. “I would urge shoppers to look for the Specially Selected Pork logo and consider using fresh Scottish pork cuts in every-day meals, alongside the more traditional Sunday roasting joints,” he said. Quality Meat Scotland reports sales up 20 percent year on year.
CAP health check
The government’s response to the CAP “Health Check” proposals is a mixture of the good, the bland and the worrying, the NFU said today.
“There is much the NFU can agree to, including full decoupling, simplification, avoiding payment limits, raising the minimum claim size and the abolition of set aside”, said NFU policy director Martin Haworth.
“However the United Kingdom position on Article 69 (a cut in the Single Farm Payment to fund specific programmes) is more concerning. Some of the conditions the United Kingdom wants are welcome - for example that measures should not be trade-distorting, should not lead to an uneven playing field across the European Union and should be time-limited.
"But it is hard to see how these conditions are compatible with the government’s declared interest in examining ways in which the Article could be used, and their wish that this should be on a regional basis.
“Equally worrying is the position on modulation. The NFU supports the Commission position there should be an increase in European modulation, but this should be offset by an equivalent cut in national modulation, where this exists. The government, on the other hand, wants to see an increase in the funds available for the United Kingdom and wants the ability to use all of any increase on environmental issues.
"The NFU could only support the first proposition if it resulted in no increase in modulation to individual farmers, in other words that the increased money comes from European Union funds, and would only support the second proposition if the “environment” was interpreted more widely than countryside stewardship, on climate change measures for example.
“Regarding set-aside, the NFU supports its abolition but does not support the implication in the paper that there is “clear evidence” that there are environmental benefits that are at risk, or that there need to be additional measures to address this issue.”
Debbie and Andrew woo MPs over fair trade for pig farmers
Yorkshire sausage makers Debbie and Andrew Keeble have been invited to Westminster to discuss their 'fair trade for British pig farmers' policy.
The husband and wife team of the Debbie and Andrew’s brand will meet MPs from all political parties to explain their attempt to help the British pig industry through its current difficulties.
As ex-pig farmers themselves of 20 years, Debbie and Andrew Keeble launched their fair price scheme in January as a response to the industry crisis.
The couple are lobbying MPs to encourage the bigger supermarkets and other producers to back their efforts and introduce similar initiatives.
Thirsk-based Debbie and Andrew’s pays 15 percent more for its pork and passes the difference directly to its farmers and processors. Some meetings with MPs have already taken place and others are scheduled.
7/04/08
Distorted and short-term
Andrew Spencer, chief executive of Australian Pork Limited, says the Oz pig industry is imploding due to cheap imports of frozen pigmeat and high grain prices. He describes the Australian Productivity Commission's conclusion that no import safeguards are necessary as distorted, short-termist, and costly to farmers, rural communities and ultimately consumers. "To continue to ignore the fact that all of Australia’s pork imports come from countries that actively subsidise their pig farmers and their pork industry with tax-payers' funds, laughs in the face of fair trading conditions and a free trade environment,” he said.
Sue Woodall at Driffield Farmers' Market on Saturday.
LIPS Recipe of the Month for April is HERE
Premier Nutrition
Vitamin and mineral premix manufacturer Premier Nutrition has been bought by AB Agri Ltd, the agriculture business of Associated British Foods plc. Premier Nutrition will continue to operate as a stand-alone business, under the leadership of Robert Rae. ABF says that strategically this acquisition enables it to be a significant player in overseas markets, including premix supply to the pet food and aqua food sectors which, with the financial backing of ABF, will be areas for growth for Premier Nutrition. All 83 staff, including all the directors and shareholders will remain with the business.
6/04/08
Pigs — a British success story
Pig meat is the most world’s favourite meat and is 184 percent more efficient to produce than beef and 221 percent more efficient than lamb. Pig production in Britain makes a positive contribution to the environment with low methane emissions and by recycling co-products from the manufacture of human food and drink.
The increase in productivity from British pigs has been spectacular over the last forty years, say Dr Rex Walters, of Livestock Genetics Ltd and Dr Julian Wiseman, of University of Nottingham, in their paper “Science delivery and cost benefit – the success story of the British pig industry”.
The number of pigs produced per sow per year has increased 50 percent, while pigs eat some 33 percent less feed and produce some 33 percent more lean meat.
Overall, per tonne of feed, there has been a doubling of the amount of lean produced and a 50 percent reduction in the amount of manure produced per kilogram of lean produced. British pig genetics have led the world through innovative and practical exploitation of quantitative and molecular genetics.
In Britain, the value of pigs going for slaughter in 2006 was £687m. Retail sale of pork and bacon totalled £7.4 billion.
Exported pork, bacon and processed pigmeat was worth £98.4m, £24.6m and £29.7m respectively, totaling more than £150 million. The value of live pig exports was £14.1m and £7.6 million came from the sale of breeding stock across the globe.
The authors argue that Britain has benefited annually from pig sector research by £2.85 a pig. Over 20 years, return on investment in research and development ranges 1.5:1 to 4.8:1.
But we live in a highly competitive global market, not just for food resources but also for technical services, they warn, and other countries are developing long term-strategies to maintain and raise their profile on the global food stage.
For example, the United States awarded over £8m to meat and genetics exports in the 2007 fiscal year. However, despite this high levels of government support, United Kingdom pig genotypes consistently outperform their United States counterparts.
The United Kingdom pig industry has the expertise and collective will to succeed at a fraction of the cost the United States taxpayer is paying, they say. “It is to be hoped funds will be found to support United Kingdom pig research and development and overseas promotion so that this United Kingdom success story will be maintained far into the future.”
Pig poster is informative and thought-provoking
The pig industry's poster campaign currently running on the London Underground has been singled out for praise in the ad industry's weekly magazine Campaign. It catches your eye as you wait for the tube and the writing keeps you engaged, says Francesca Fisher. "However what I love most about this ad is that the pork people have turned to advertising to fight their corner. They're explaining the impact of the rising cost of grain on farms and meat quality in a thought-provoking, not self-pitying manner."
The advert was devised for BPEX by ad agency DDB London. It was written by Will Lowe and art directed by Victor Monclus. It hasn't been well received by everyone. It attracted the ire of Compassion in World Farming for its use of the words "very high welfare standards".
The industry's ad campaign for higher prices for producers has been well received by producers. Richard Longthorp said today that the whole campaign has "just has the right feel to it". BPEX and NPA chairman Stewart Houston agrees. "I believe it is an HONEST campaign which our colleagues believed in and once we started to get results (ie. the wider world believed us) it fuelled ideas and enthusiasm." BPEX chief executive Mick Sloyan has made special mention of Jon Easey's contribution. "I would say the Rally and this award are built on solid foundations laid last August when the likes of Jon Easey drove the agenda for BPEX. A fine example of a large team effort."
Free conversion to PigCom
ACMC has offered free conversion to its PigCom pig recording system to those producers using the Easicare programme following the withdrawal of technical support by Agrosoft for Easicare and H. M. Boot DOS-based systems. Since Easicare was originally developed by the Curtis family, ACMC can import data and convert all sow records into an updated windows-based format. “Apart from the obvious differences in data entry between DOS and windows, users should experience a degree of familiarity with reports, albeit with improved graphing and consolidated reporting,” said Ed Sutcliffe, ACMC’s technical director. Other systems may incur a charge. PigCom software can be used as an aid to weekly routines and to help with business management systems through identifying key performance indicators. Multiple herds can be recorded on the one system and, where required, these can be consolidated for an overall view.
Everyone else is doing fine
The retail price of pork in the big four supermarkets has increased by an average 60p since July. DAPP has increased only 5p during the same period. Notwithstanding the effects of foot and mouth last autumn, this shows that although an increasing number of pig producers are cutting back sow numbers, or quitting altogether, the links further up the chain are continuing to make a living from the loss-making activities of pig producers. The chart above on the left plots retail price rises against an index of 100 in July. It shows early increases by Asda, followed by increases at the end of March. But the chart on the right presents the same data in a different light. Looking at price-per-kilo on the shelves, it shows Asda has failed to increase prices to the levels found in the remainder of the big four. However Asda's March increases show up on this chart also, and chief executive Andy Bond's recent expression of support for pig producers may indicate that further increases are on the way. But writing on the NPA Forum page today, producer Robert Mills makes a pertinent point: consumers are facing a financial squeeze on several fronts — mortgage, council tax, fuel — "so we cannot assume that prices will rise as fast as we hope". Charts supplied by
House of Lords supports a rare breed — British pig farmers
If supermarkets want to see the end of English pork production, they are going exactly the right way about it, food and farming minister Lord Rooker told the House of Lords. “We fully support the claims of the industry that it should get a fairer share of the price.”
He went on to highlight misleading labelling. “Labelling for food shows where the product underwent its last significant process as opposed to where the food was grown or reared. This is something we are dealing with through the European Union, and the Food Standards Agency is undertaking consultation on better labelling proposals.”
There was a need, he said, to get the message across to British consumers that extra costs on farmers are reflected in the price. “That has got to be genuine information. So it is no good when we have what happened a week ago in the other place. The Leader of the Opposition chided the Prime Minister over the increase in the price of milk, but for the past 18 months Tory MPs have been queuing up at my office and demanding that I get more money to our dairy farmers. Doing that has had an effect on the price of milk, and the same argument applies to the price of meat.”
THE FULL DEBATE
Lord Hoyle asked what steps government is taking to counter the difficulties facing the British pig industry following the steep rise in the costs of feedstock.
Lord Rooker: My Lords, we have supported the measures taken by the European Commission to increase feed grain supply to the European Union market in respect of the current high prices. Various factors have been used for that, such as zero set-aside and the selling of intervention stocks. We have frequently made the point that it is in the supermarkets' and processors' own long-term interests to establish fair and sustainable arrangements for dealing with their suppliers. However, ultimately, the market will set the price.
Lord Hoyle: My Lords, I thank my noble friend for that very helpful reply. From what he has said, I am sure he is aware that, while feedstock prices have gone up by 50 percent, the British pig producer is losing roughly £26 per finished pig. If that continues, there will not be a British industry to talk about. I noted that pork was on the luncheon menu in the Peers' Dining Room, which I hope came from a British source. I should like to ask my noble friend for help in two ways. First, he mentioned the supermarkets. Will he join the campaign to get better prices for United Kingdom pig producers and ensure that it is passed down and does not get stuck in the supply chain to the farmers? Secondly, with the highest animal welfare standards in the world, will the Minister do something about the unfair competition from importers who have nothing near our animal welfare standards?
Lord Rooker: My Lords, on the first part of my noble friend's question, he is absolutely right. If the supermarkets want to see the end of English pork production, they are going exactly the right way about it. We fully support the claims of the industry that it should get a fairer share of the price, but we cannot interfere on that. It is true that we have the highest welfare standards in the world. Some other countries in Europe - Sweden, the Netherlands and Germany - certainly have high standards. However, the real issue is that World Trade Organisation rules do not allow welfare standards to be raised as part of the deals, which we are pressing in the European Union to get on to the World Trade Organisation agenda.
Lord Redesdale: My Lords, the Minister said that the Government can do nothing with the supermarkets because it is up to the market to bear the cost. However, as most of the pork sold comes through a very small number of supermarkets which have almost a monopoly on the sale of pork, is it not an issue that could be referred to the competition authorities? These supermarkets are keeping the price artificially low, which is affecting the industry. As the noble Lord, Lord Hoyle, pointed out, pork is on the menu in the Peers' Dining Room. It is from a rare breed, which will be the case for the whole of the British pig industry in the next three or four years.
Lord Rooker: My Lords, I regret that I have to hide behind the fact that the Competition Commission has an ongoing investigation, so it is inappropriate for me to comment. But the issues are very relevant.
Baroness Trumpington: My Lords, as the whole of the Danish economy is based on the sale of bacon, it seems to me, and as Denmark, too, has supermarkets, have we anything to learn from the Danes?
Lord Rooker: My Lords, we import an enormous amount of bacon, but about 55 percent of our consumption is home produced. On the totality of pork, ham and bacon, as much of that is consumed as lamb and beef in this country, so consumption is large. But the Danes have also suffered from the high feed prices-they represent 60 percent of production costs. As my noble friend Lord Hoyle said, everyone knows that they have gone up far more in the past year. These prices will work their way through to everyone.
Lord Soulsby of Swaffham Prior: My Lords, does the Minister agree that this is a problem not only for the pig industry, but also for the dairy and beef industry? It is in part due to the trend to move away from growing wheat and soya for animal feed to growing these crops for biofuels-especially in South American countries, such as Brazil - which is much more profitable. Have the Government any suggestions for what should be done about this in order to safeguard European Union producers?
Lord Rooker: My Lords, the growing of biofuels in the United Kingdom and the European Union is so tiny that it is not the cause of the high grain prices. We have had two poor summers which led to bad harvests, while the problems in Australia and the growth in consumption across Asia and China have been major factors. However, the noble Lord has raised another issue. We must make sure that biofuels do not replace food crops, which would result in the price of food going up.
Lord Brookman: My Lords, I share in the concerns about the pig industry, but what about me and other noble Lords who have been told not to eat our sausages in the morning?
Lord Rooker: My Lords, I am told that you are quite safe if you eat a basically healthy and balanced diet.
Lord Taylor of Holbeach: My Lords, does the Minister agree that it would help if consumers were encouraged to buy more British pig meat? The key to this is informing the consumer of the country of origin by ensuring that food labels demonstrate clearly that the products, processed or not, are made from British pigs, while meat from overseas sources and processed here cannot be labelled as British. When are the Government going to do something about country of origin labelling to this end?
Lord Rooker: My Lords, the fact is that the current position is very unsatisfactory. Labelling for food shows where the product underwent its last significant process as opposed to where the food was grown or reared. This is something we are dealing with through the European Union, and the Food Standards Agency is undertaking consultation on better labelling proposals. But what underlies the noble Lord's question is the need to get the message across to British consumers. We need to make it clear that extra costs on farmers are reflected in the price. That has got to be genuine information. So it is no good when we have what happened a week ago in the other place. The Leader of the Opposition chided the Prime Minister over the increase in the price of milk, but for the past 18 months Tory MPs have been queuing up at my office and demanding that I get more money to our dairy farmers. Doing that has had an effect on the price of milk, and the same argument applies to the price of meat.
Lord Livsey of Talgarth: My Lords, will the Minister consider the fact that, before the hike in grain feed prices, which has seen them double, the variable costs in the production of pig meat were working out at 80 percent for feed? Is it not time that a ban was put in place on supermarkets selling product at less than the cost of production?
Lord Rooker: My Lords, it is a very unsatisfactory situation, but, as I have said, at the end of the day the market will decide. The Competition Commission is looking at these issues, and the Government have given as much support as they can to the industry in trying to get a fair deal. As I made clear in an earlier response, if the supermarkets want to see the end of English pork production, at the moment they are going the right way about it.
4/04.08
Assured British Pigs Newsletter
To save cost, the Assured British Pigs spring 2008 newsletter is not being mailed to members, but it is available to download here.
New Product Award
Pig Fair New Product Award entry forms are here.
Pig Discussion Groups
It is useful for the industry to have a topical list of pig discussion group contacts. Please help by making sure your group is represented on the database that will appear on this site well before the next round of meetings. Complete the form HERE (or ask the appropriate person to complete it). Email addresses will be secured in the database so they cannot be robotically harvested for spam.
l NPA Trade Directory l Mechanical data l National Pig Association l Defra l BBC weather l
l Environment Agency l Food Standards Agency l Quality Meat Scotland l Scottish Executive l
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