UNITED KINGDOM PIG INDUSTRY NEWS PAGE
July 3
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Inactivity
Sorry there has been no activity on this page so far this week. I'm out of the office all week and managed to leave my laptop charger on Mull. We have just been reunited and normal service will resume shortly. — D.S.
June 28
LIPS recipe of the month
The LIPS recipe of the month is Pork and Apricot Burgers.
IPPC Best Available Techniques review
Whether or not IPPC ultimately spells an end to large scale pig production in Britain depends on the Best Available Techniques document which sets the standards to be achieved. This document is now being reviewed and it is essential as many IPPC producers as possible offer their views. More. Download Best Available Techniques here. (Brussels has passworded the document which prevents users deleting pages, copying and pasting etc. If you wish to remove the password, got to Properties>Security, select "Remove password" and when prompted for password, write 'nene'.)
NPA regional meeting
A reminder: NPA's south-central meeting is on Monday. All members invited. There will be a buffet, tea and coffee, and bar.
Andrew Knowles from BPEX will give an update on British Pig Health Scheme, the PCV2 vaccine trial and the new salmonella control programme, with Adrian Cox giving a vet's view of how it is all working on the ground.
Helen Thoday from BPEX will talk about the work of the knowledge transfer team.
There will be a good discussion about the pig price and pig marketing in the current climate. Barney Kay and Zoe Davies will give an update on what the NPA has been doing over the past few months. Venue details.
Growth slows in the United States
At 67.7m head the United States June inventory of all pigs is up 6 percent from June last year and up 1 percent from March this year. The breeding inventory, at 6.07m head, is down 1 percent from last year, and down 1 percent from the previous quarter. Average pigs sold per litter is 9.38 for March-May 2008, compared to 9.20 last year.
United States pig producers are losing money because of high feed costs but some of the loss can be traded off against the fertiliser value of slurry. Despite significant growth in the national herd over the past 24 months, demand remains strong as a result of high export demand driven by the weak dollar.
Producers intend to have 3.07m sows farrow during June-August, down 2 percent from the actual farrowings during the same period in 2007, but up 5 percent from 2006. Intended farrowings for September-November, at 3.05m sows, are down 4 percent from 2007 but up 3 percent from 2006.
Imports of United States pork
Something interesting is happening to imports of United States pork to the United Kingdom. Presumably the increase is a result of the cheap dollar and rising European pig prices. It is thought that much of the imported product goes into foodservice and ready-meals.
European Union tariffs on imported United States pork are c59p for loins and c32p for bellies. The increase in product coming into the United Kingdom is not ringing alarm bells yet, as the States has much more lucrative markets nearer home.
Also there is only one United States abattoir that is European Union-approved for pigmeat. It handles about 4,000 pigs a week suitable for the European Union.
The next decade...
"The United Kingdom may not be a part of the euro area just yet, but we all know that the City of London is the largest market for euro denominated transactions," said Joaquín Almunia, European Commissioner for Economic and Monetary Affairs, in London this week. "Who knows, perhaps the next decade will persuade this country that the benefits of joining the euro are greater than those of staying out."
No MRSA found in British pigs
As reported on this page recently, first quarter results from a Europe-wide probe has not uncovered MRSA in United Kingdom pigs. Nevertheless there is a potential issue of migrant workers bringing it onto pig farms. The Defra antimicrobial resistance committee will therefore ask the Pig Veterinary Society to provide advice to pig producers so they can ensure their biosecurity protocols consider MRSA. The American Society of Microbiology is planning to hold an MRSA conference in Britain next year, which will be followed by a one-day seminar for vet and health practitioners. — Zoe Davies, NPA.
June 27
Buying habits are changing (perhaps)
Retailers have been saying this week that pork prices have gone high enough for the time being — and if they go any higher consumers will start switching to pasta and pizza.
But their claims are not supported by independent data (to date), which shows sales of pork and pork products are higher this year than last, shoppers still consider pork to be good value, and meat sales in general are holding up.
It is likely that what underlies retailer concern are figures showing an increasing number of shoppers moving to the hard discounters Lidl, Aldi and Netto.
If this is the case, pig producers will share the mainstream retailers’ worries. The discounters do sell some British pork and pork products, as the latest Porkwatch survey shows, but they are opportunist buyers, and they are invariably at the bottom of Porkwatch rankings.
Another trend for the industry to watch at present is polarisation of meat buying habits.
Some shoppers - and this would probably include most pig farmers - are taking the view that more expensive food can still represent best value, so they are sticking with premium lines. But others, in seeking to limit the increases they are seeing in their weekly grocery bills, are going downmarket.
The result is that sales of (for instance) premium and value sausages are holding up, but standard lines are coming under pressure.
This information will be of particular interest to those producers who sell regional brand sausages directly into supermarkets. They will need to keep an eye on their positioning and perhaps consider increasing the amount of in-store promotion they do.
If pork really is coming under significant pressure, as some retailers have suggested to processors, the British Pigs Are Worth It campaign is clear that the supply chain has the answer in its own hands.
Both retailers and processors are continuing to make excellent profits, whilst pig producers are continuing to make big losses, forcing some — but we don’t yet know how many — to quit the industry.
"Supermarkers can hold their retail prices at current values if they feel that is the right thing to do — but if they want to ensure they have supplies of British pork in the future, they should ensure they, and the processors they buy from, pass a fairer share of the price back to producers," said a campaign spokesman.
Not so wild about feeding
Swedish scientists wondered what would happen if intensively kept pigs were fed nine meals a day, to mimic the foraging activity of pigs in the wild. The result was a drop in growth.
They conducted the trial having noted that foraging pigs eat 10-12 meals a day, compared to typically three meals for indoor pigs. By replicating the 'natural' pattern, researchers had hoped indoor pigs would perform better than those fed the traditional three meals.
All 360 pigs in the study received the same amount of liquid feed, divided into either three or nine daily meals. The pigs fed three times daily gained over a 100 grams a day more than the pigs fed nine times daily.
June 26
German pig producers face castration campaign
Dutch animal welfare organisation Wakker Dier has won a prestigious award for its campaign against castration of piglets without anesthetic.
But despite the campaign’s success at getting castration high on the political and consumer agenda in Holland, millions of piglets are still exported live, mostly to Germany, where the males will be castrated without anesthetic.
In Holland leading retailers have agreed to sell meat only from pigs castrated while anesthetised, but the same stores have yet to make a similar promise in Germany. In a new campaign Provieh (a German animal welfare organisation) and Wakker Dier, will point this out to German consumers and companies. "When Germany follows, the rest of Europe cannot stay behind," they say.
Just for the slurry...
“I heard a comment today that the manure in the pit was more valuable than the pigs above it,” said Larry Liepold, a pig producer in the States, and a member of the National Pork Producers Council board of directors.
Producers have been losing around £15 a pig and although the pig price has rebounded it still isn’t enough to put them back into profit. The value of pig slurry is one of the reasons many are willing to put up with losses caused by high feed prices.
Meanwhile an interesting development is putting a new twist into the traditional pig cycle: some arable farmers are putting up pig houses with the main aim of getting themselves some cheaper fertiliser.
Defra tells pig-keepers how to be greener
The public may love them and animal welfarists may prefer them, but a review by Defra raises doubts about the environmental credentials of outdoor pigs.
• They can cause soil compaction and erosion.
• They may cause more heavy metal and drug contamination.
• By destroying vegetation they may adversely affect wildlife.
• And they may create harmful N and P hotspots.
Defra has reviewed research and literature in a bid to quantify the environmental impact of pigs. It doesn’t let indoor pig farming off the hook, highlighting ammonia emissions, dust, smell, noise and nitrate leaching.
But it does outline the environmental benefits that pig farmers deliver. Pig producers would argue that these outweigh the negatives. It does not mention food production as a benefit.
• Rural and semi-rural employment on pig farms.
• Rural and urban employment in abattoirs, meat processing plants, animal feed factories and associated suppliers.
• Pig production uses a large range of co- and by-products from food and allied industries, helping to reduce food waste.
• Pig manure and slurry can increase soil organic matter levels, improving soil fertility and reducing the need for chemical fertilisers.
• Extensive free range pigs can keep down rough pasture and control unwanted plants such as bracken.
• Outdoor pig production contributes significantly to soil nutrient reserves, reducing the need for fertiliser inputs for subsequent crops.
Defra says the pig industry can improve its environmental credentials by improving its handling and management of slurry and manure; improving its management of outdoor pigs to reduce soil damage, impacts on soil erosion; and improving nutrient efficiency by, for example, greater use of phase feeding and increasing the use of dietary phytase (to increase grain P availability to pigs).
It wants to see an assessment of the wider environmental impact of outdoor pigs.
Looking at the negative impacts of pig production, it says ammonia losses from pig houses make up 9 percent of total United Kingdom ammonia emissions and nitrous oxide emissions from pig manure are much higher than from poultry or cattle manure. Ammonia emissions are reduced by a third when pigs are kept on slats rather than on straw.
Looking at ways to reduce the negative impacts of pigs, the review lists a range of good practice measures for outdoor husbandry (some covered by cross-compliance).
For indoor pigs it recommends producers should line slurry stores to comply with IPPC. They should cover slurry stores (another IPPC requirement) or add chopped straw to reduce emissions.
The review encourages part-slatted rather than fully-slatted floors as the non-slatted area acts as a physical barrier between the air below the slats and air circulating in the house.
It notes that improved manure handling techniques could provide significant potential for reducing ammonia emissions. Broadcast spreading causes the largest ammonia loss.
The review wants to see more research on dietary issues and a national survey of feeding practices.
It also notes that pig producers must in future be much more careful with their water management.
“The substantial dilution of pig slurry in the United Kingdom industry is not consistent with known drinking water requirements of pig production, current understanding on sensible washdown water requirements and likely leakages from drinkers.
“This implies significant added costs for pig producers for water charges and additional handling and storage costs.”
Defra proposes a systematic water audit on a range of pig producers, to establish the cause of the high dilution and identify ways of economising on water use and reducing associated risks of water pollution.
The Defra review illustrates the ongoing tension between environmental and welfare constraints in pig production.
BPEX environment specialist Nigel Penlington has suggested the IPPC Best Available Techniques document should be ammended to embrace welfare issues required by government, consumers, and society in general.
“The existing document concentrates solely on environmental outcomes and fails to consider health, welfare and general interaction of production components, remembering that pigs are living animals and not machines," he said.
Confidence survey indicates producers are being squeezed more than processors
Confidence levels in the British pig industry have, unsurprisingly, fallen according to the results of the latest survey by BPEX Ltd.
It showed although 70 percent of producers had maintained or improved their competitiveness, their optimism had been significantly eroded.
There is a similar picture from the processing sector. However, half anticipated increasing investment over the next 12 months which is at odds with producers who said they were investing 75pc less.
There is also a contrast shown where processors are looking to invest to increase efficiency when producers are mainly having to spend money to cope with changing environmental rules and repairing buildings and facilities.
The question about factors limiting output has seen a major shift with producers citing raw material costs and finance whereas last year it was simply the physical capacity of buildings.
"While we have seen some price rises in recent weeks, confidence among producers remains extremely fragile," said BPEX strategy co-ordinator Andrew Knowles.
"The survey is still a valid and valuable snapshot of the British industry and the ability to compare it with the previous year makes it even more important.
"It was interesting to note that vets and members of the allied industry were looking to increase capacity and improve competitiveness. This is something they choose to do which shows they are looking at the future with renewed confidence."
SOME KEY POINTS
• Compared with 2007, producers show a decline in confidence of 56pc while confidence in other parts of the pig industry falls 35pc.
• Lack of optimism in the pig industry is having a profound impact on investment in buildings: 65pc of respondents expect to make less capital investment over the next 12 months, with just 14pc planning to spend more. However there is wide variation between sectors.
• As in 2007, processors and retail/foodservice are the most confident sectors in terms of spending plans, with 50pc of processors and 33pc of retail/foodservice respondents predicting increased investment.
• Producers are the least confident sector, with 75pc
predicting reduced capital expenditure and 12pc increased expenditure. This indicates the long-running problem of lack of investment in new buildings on pig
farms will get worse.
June 25
IPPC Best Available Techniques review
Whether or not IPPC ultimately spells an end to large scale pig production in Britain depends on the Best Available Techniques document which sets the standards to be achieved.
This document is now being reviewed and it is essential that as many IPPC producers as possible offer their views.
It is also important that non-IPPC producers study the document, as Best Available Techniques will increasingly be required of non-IPPC producers.
STEP ONE
Download the Best Available Techniques Reference (BREF) document now from the Pig World Library.
(It is a big document. An abridged version will be available here this evening.)
STEP TWO
Please study the document, which seeks to embody proven best practice in intensive pig-keeping.
• Are there any errors or short-comings?
• Are any of the requirements impracticable in Britain, or not commercially viable?
• Do any of the requirements understate what you consider to be best practice?
STEP THREE
Nigel Penlington, of BPEX, has offered to be the clearing house for pig industry views on how the Best Available Techniques Reference document should be revised. Please phone or email your thoughts to him, no later than JULY 21.
SOME IDEAS
"It is important that good technical solutions are offered, and that we highlight some of the shortcomings of the existing document and suggest how these can be overcome," said Nigel Penlington today.
“For example, the existing document concentrates solely on environmental outcomes and fails to consider health, welfare and general interaction of production components, remembering that pigs are living animals and not machines."
The current document considers good management to be as important to Best Available Technique as building design and layout.
"Some of the management issues such as monitoring energy and water use are proving a bigger challenge to producers than detailed decisions about building technicalities," says Nigel Penlington.
“We need to think about both issues - items such as real-time monitoring are not currently included in the document. I feel this is a serious omission.
“With regard to buildings, the document talks about frequent flushing of slurry pits, but is short on detail. How is this achieved on a commercial unit? Can we use our experience to bridge the gap between researchers and practitioners?"
FINAL THOUGHT
Remember, what the Best Available Techniques document outlines today... the Environment Agency will demand as a matter of law tomorrow.
Inputs price monitor
NFU members are being urged to take advantage of a new service that provides information on input costs such as fuel and fertiliser.
Figures gathered from a monthly members survey will be fed into an Inputs Price Monitor which will compare and publish common expenses such as fuel, fertilisers and pesticides, region by region.
Members will then receive a monthly email report showing the range of results and looking at average figures region by region.
“The Inputs Price Monitor will be available to all members to use for assessing and comparing their own costs and could assist with business forecasting. Members will also be able to use these figures when negotiating and dealing with suppliers," said NFU’s transport and inputs adviser Hannah Moule.
“It is so important that our members are getting the best deals they can especially at a time when rising input costs are having such an impact on farm businesses. Although all input costs have risen, red diesel and fertiliser, which have increased by 71 percent and 116 percent respectively in the past 12 months, have been especially volatile.”
June 24
Too distressed to choose which pigs
Three times a year members of Rural Business Research, a consortium of leading agricultural universities and colleges, undertakes its Farm Business Survey in England for Defra.
The survey seeks to provide up-to-the-minute information from the regions on what is happening on farms and in local markets, together with a summary of current attitudes and concerns. The latest Intelligence Report from Rural Business Research includes the following:
"PIGS: This sector is badly hit by rising feed prices and this will be reflected in the Farm Business Survey sample as businesses close down. Two recent potential recruits come to mind – both pig farms. One farm had half of its pigs slaughtered by the vet (farmer was too distressed to choose which pigs); another had sold the pigs and opened a farm shop. These decisions had been taken after initially agreeing to help in the survey – needless to say both farms did not come into the survey."
Cut corn ethanol target, say pig producers
In a bid to bring down high feed costs, the National Pork Producers Council is to ask for the United States national target for corn-based ethanol production be halved.
'Canadian Pork' label praised by retailer
Retailer Canada Safeway says it applauds the introduction of a new "Canadian Pork" label which is designed to make it easier for consumers to identify and buy pork produced in Canada.
Blueberries
Canadian researchers have discovered that supplementing a pig’s diet with blueberries may reduce cholesterol levels by over ten percent.
Cookstown stays
Dutch processor Vion, which will buy Grampian if the competition authorities allow, has confirmed Grampian's Cookstown plant in Northern Ireland will remain an integral part of its business.
Russia's pig boom is slowing down
Russia’s booming pig industry is forecast to move into a lower gear this year, as high feed prices drive smaller producers out of business. Growth was around 10pc last year. It is expected to fall to circa 5pc this year.
So big it can control prices
The European Commission made a big mistake in approving a merger in 2004 of the two Dutch slaughterhouses Sovion and Hendrix according to producer associations, which are suing the Commission for allowing the creation of a business that is so big it can control producer prices.The merged companies became the largest pig slaughterhouse group in the Netherlands. However, experts say it is unlikely the European Court will tell Brussels to split the company.
Oilseeds production up
Oilseeds production in the European Union will be up nearly ten percent this year, according to new trade association figures - this is due in large measure to a near doubling of sunflower output in Bulgaria and Romania (whereas oilseeds production in the EU-15 will be slightly down). Overall oilseeds area is up 2.7pc despite a drop in rapeseed area, perhaps due to a shift to sugar production following sugar reform. The trade association Coceral estimates European Union total cereals harvest will be 13.6pc higher than last year. This is broadly in line with figures released recently by the European Commission.
Allegations were unfounded
Following allegations of cruelty made by an animal rights group against ten English pig farms, independent auditing of the farms in question was triggered as a routine measure by the farm assurance schemes.
The results of the audits show the allegations made were unfounded. There was no evidence of cruelty or malpractice on any of the units. A number of the farms have also been inspected by the government agency Animal Health and no problems have been reported.
It has been confirmed that the RSPCA responded on the same day to a compliant from Animal Aid about what it described as “the worst farm out of the ten we visited”. The RSPCA inspector who visited the farm on 9 April reported that there was no cause for concern about the pigs on the farm.
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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