UNITED KINGDOM PIG INDUSTRY NEWS PAGE
• NPA Trade Directory • Diary dates
July 7
NPA Trade Directory
The NPA Trade Directory has been updated today and — such are the times we live in — over a dozen companies have been removed, either because they are no longer trading, or because their NPA membership has lapsed.
Would allied industry members kindly check their details are correct in the directory and let Digby Scott know if any changes are required. Many thanks.
Moonlight and Daisy
By Digby Scott
Moonlight and Daisy were a popular feature in Pig World for a number of years. They certainly attracted the most comment. I had hoped to coax their creator John Richardson into doing one more run of saucy cartoons, but his wife, Pearl, has phoned today to say they are definitely retiring and no amount of flattery from me will persuade her to let John pick up his cartoonist's pen again.
When the industry was at its (then) nadir in 1998/99, and Pig World was struggling to get issues out, John and Pearl offered to drop their fee for Moonlight and Daisy cartoons, such was the affection they had formed for the pig industry through reading the magazine.
Back to the drawing board...
As reported on this page a while back, the European Commission has had to jettison its proposed mandatory organic logo because it looked too much like the — wait for it — Aldi logo. But could you do better? In a few weeks Brussels will launch a competition for a new logo design.
Hungarian herd down 10 percent
Hungary has a seen its pig herd fall 10 percent over the past 12 months, according to its April survey, with smaller producers bearing the brunt of the attrition caused by high feed prices.
Brussels challenges livestock 'long shadow' report
Agriculture commissioner Mariann Fischer Boel has launched a study on the overall impact on climate of livestock farming in Europe.
The study is being seen by many in the agriculture directorate-general in Brussels as Europe's opportunity to refute a controversial United Nations report, “Livestock’s long shadow”, published in 2006.
The United Nations report claimed the livestock sector generates more greenhouse gas emissions, as measured in CO2 equivalent, than transport.
The NFU has welcomed the Brussels challenge to the "Long shadow" report. The new study will be complete by March 2010.
BPEX Pig Health Scheme
Assessment dates July-December 2008.
Pork exports up... Strong demand from Germany has seen exports of chilled pig carcases rise by 46 percent. Exports to the Netherlands have risen 24 percent. And exports to Hong Kong have more than doubled (but only to 4,000 tonnes).
Imports down... In January-April imports were seven percent down on the same period last year — largely as a result of the weakness of sterling against the euro. Imports from Denmark fell two percent and imports from Holland were down over 30 percent. In contrast, imports from Germany rose six percent.
But ham is a problem... Imports of processed hams and shoulders from Europe are up 37 percent. More than 4,000 tonnes came from Poland, whilst imports from Denmark were down 23 percent.
Brussels questions cost effectiveness of geographical protection
Just as NPA was limbering up to seek special protection for products such as Wiltshire-cure, York ham, and perhaps even Norfolk Outdoor Pork... Brussels is asking questions about the future of the geographical indications system, which currently embraces Melton Mowbray pork pies and may in the near future mean Lincolnshire sausages really must come from Lincolnshire.
An early draft of a green paper on Europe’s quality policy challenges the cost effectiveness of the current geographical protection system, which lists around 3,000 products.
There is concern that many of the foods concerned are not exported, and therefore don’t need special protection.
However, applicants for protected geographical status would turn this argument on its head and argue that protection is needed to prevent imported food being passed off as a regional food.
Brussels wonders whether a wider use of trademarks might provide the necessary protection, or whether new criteria should be introduced — for instance, the economic contribution a product makes to its region of origin, its export potential, and sustainability of production.
If new criteria were introduced along these lines it might be easier for NPA to apply for protection for regional outdoor pork, but more difficult to successfully apply for (for example) Wiltshire-cure, which might be considered too generic these days.
The draft suggests one way of reducing the number of specially protected products would be to re-examine them to determine which product descriptions are generic.
Comparing Europe’s special protection system with trademarks, the draft says the main difference is between state control as opposed to the producer’s own defence of trademarks.
The green paper is due for publication in October.
Some background to this story.
Europe to introduce organic rules
Controversially, several temporary derogations for organic products — including a ban on unanaesthetised piglet castration — have been extended to 2012. Other extensions cover livestock housing conditions and stocking densities. The Brussels regulation that covers these and other issues concerning organic production is due to be implemented on January 1. The extended derogations are reported in a detailed rules, which have just been drawn up, on how the regulation should be implemented.
Hard discounters
Hard discounters are increasing their market share at the moment, as shoppers attempt to contain rising grocery bills. But that isn’t the whole story. Aldi has increased its number of stores by 14 percent this year, and Lidl by 7 percent — so they would be showing growth anyway. The discounters are not having everything their own way: for many shoppers they are “top up” shops rather than “destination" shops. Their challenge is to convert consumers to the latter.
No answer in sight to soaring soya dilemma
A “technical solution” being suggested in Brussels will not solve the pig industry’s GM soya problem, which threatens to send prices spiraling.
According to an internal Brussels working paper, introducing a 0.1 percent “level of detection” is the best way to address the problem of traces of GM varieties in imported food and feeds.
And depending on the GMs in question, and the type of food and feed tested, member countries might allow a further margin for uncertainty of two or three times this amount.
But these levels will probably be exceeded in soya imports by autumn 2009. And a higher level of detection - say 5 percent - would require a major overhaul of existing legislation.
The “technical solution” being considered by Brussels would apply only for those GMs for which there is a validated detection method. The internal Brussels paper warns this would be nothing but a short-term solution to the problem of asynchronous approvals.
The paper is clear that the status quo — zero tolerance — would have a negative impact on feed availability given Europe’s need to import 77 percent of its soya requirements.
BACKGROUND. It is feared the presence in the United States soya crop of GMs not yet authorised in Europe will cause disruption before the end of the year. Crushers will be hit first. Shipments of soya from the United States containing traces of the variety Round-Up Ready 2 will be refused. North American suppliers will turn away from the European market, forcing crushers to look for alternative sources, probably from Argentina and Brazil. They may also have to look for other sources of oil, such as rapeseed oil, which would add £120m to their raw material costs.
Euro-food label to be introduced
Brussels is considering a “European Union Origin” label for food, with a logo to indicate compliance with European Union requirements. It is also considering a label to denote high animal welfare production.
It continues to have difficulty with labelling of organic produce though because the European market for organic food is fragmented. The challenge Brussels has set itself is to create a functioning internal market for organically produced food without diluting the reputation and credibility of organic food.
Travelling times and space allowances — a chance to influence future legislation
Brussels has launched an internet consultation on welfare of animals during transit. The results will impact on livestock hauliers and pig producers in Britain.
Individuals as well as organisations may take part in the consultation. Producers and hauliers are urged to look at the questions and to consider whether they wish to add their views.
The objective of the consultation is to gather information from as many sources as possible, says Brussels. The responses collected will be used to help shape future legislation on travelling times and space allowances.
The consultation takes the form of a questionnaire, which is divided into two parts.
• Part one is addressed only to transport companies, to obtain information on the economic aspects concerning transport of animals.
• Part two is addressed to the general public, stakeholders and national authorities. It seeks views from every possible angle on the potential impacts of revising the law - welfare, economic, environmental, social, administrative.
Check out the consultation here.
Cull sow prices stay strong
The Great Britain cull sow price rose tuppence in the week ending June 28, to average 105p — this is approaching two-thirds more than for the corresponding week last year. The weakness of sterling against the euro is helping but the main driver now seems to be tighening cull sow supplies compared with earlier in the year.
Pigs Are Worth It to tackle MPs
The industry's Pigs Are Worth It campaign will have an information stand at Agriculture and Horticulture Development Board's Westminster barbecue this week (it used to be the MLC Westminster barbecue before levy board reorganisation).
Pig industry people who have been invited to attend might want to position themselves near the stand and bend the ears of ministers, senior civil servants, MPs, peers and other luminaries.
Higher prices send consumers to cheaper cuts
Shoppers bought one percent less pork in the 12-weeks ending June 15, compared to a year earlier.
Higher prices are causing them to change their shopping habits — sales of chops and leg roasts fell 12 and 17 percent respectively, but shoulder roasting joints were 15 percent up.
The proportion of households that bought pork has fallen, and those that did buy, did so less freqently and bought less on each shopping trip. The Pigs Are Worth It campaign is watching these trends closely.
Bacon prices in the Big Four increased six percent in June, compared to May — and that is almost 20 percent higher than prices in January. Bacon sales are down three percent year-on-year.
British Pig Health Scheme
The new British Pig Health Scheme has just started. It provides members, their vets, abattoirs and funding partners with regular, objective and detailed post-mortem health assessments from pigs submitted to 14 pig abattoirs in England. To date the team of specialist pig vets has reported on more than 12,000 consignments of pigs.
A survey of members found all farmers surveyed discussed the scheme reports with their vets when reviewing pig health and performance. More than 60 percent of them and 80 percent of vets have been taking action on farms to tackle health issues using information from the reports.
You can find out more about the scheme by calling 01463 233184. There is a DVD available explaining how the scheme works, which you can get by calling 01908 844734.
July 6
It helps us keep good staff
"Good staff development is helping us improve morale on the unit and more importantly to retain staff. It's a way to motivate people, especially if there is some recognition in terms of a qualification at the end and possibly a financial reward,” says Adam Whitrow, who manages a 600 indoor sow unit near Cullompton, Devon.
"Being a stockman is not one of the most exciting jobs in the world, neither is it particularly well paid. However, there are things managers/owners can do to get the best out of their staff and make work more enjoyable."
Attendance of workshops set up in Cornwall and Devon by BPEX’s Helen Thoday can contribute towards a qualification, he says.
"Equally, workshops aimed at managers and owners are important in helping us manage our staff effectively. It has taught me the importance of setting good standards of practice, setting realistic targets, creating action plans, coaching and encouragement and holding one to one meetings with staff to monitor their performance."
He has three members of staff. Between them they split responsibility for different parts of production. He and one staff member work in the farrowing houses, another concentrates on the weaners and another on AI.
This gives individual members of staff ownership of their particular area, which he is sure helps motivate them as they want to make sure they have done the job properly. All members of staff know how to work each other's areas so during holidays or if anyone is off sick they can cover for each other.
For more information about training for stockmen call or email Tess Howe 07779 321078.
Drought and floods
A drought in one of the main dairying areas of New Zealand is affecting this year’s milk production and could have knock on effects in 2009 as animal health is affected in the country’s spring calving season. Poor weather is affecting corn and soya production in parts of the United States. Around 4 million acres of Ohio have been flooded (this is about 30 percent of United Kingdom arable land). This has already pushed grain futures to 52 percent more than in 2007.
Book charts 100 year history of NFU and agriculture
A new book, “From Campbell to Kendall: A history of the NFU” celebrates the NFU’s centenary.
The lavishly illustrated 208-page hardback charts one hundred years of history by focusing on the 33 men who have occupied the presidency of the NFU.
The presidents were all great characters whose backgrounds were as diverse as the NFU itself. There was the bluff Lincolnshire pioneer, Colin Campbell, who provided the spark for the NFU in 1908.
In the 1930s, the Union was led by suave Colonel Sir Reginald Dorman-Smith, a Surrey cattle farmer who went on to become minister of agriculture and initiated the plough campaign in the Second World War.
Latterly there was Lord Plumb, respected by prime ministers as “the farmers' man” and affectionately known by farmers as “our ’Enry”.
The book has been written by Essex farmer and NFU member Guy Smith who said: “When writing the book I was struck by how many current issues seem to be echoes from the past.”
"From Campbell to Kendall: A history of the NFU" is £14.99 for members and £19.99 for non-members. You can buy it here.
Banned from keeping animals
David Rooke pleaded guilty at Didcot Magistrates Court to charges of failing to dispose of sheep carcasses, causing unnecessary suffering to a sheep and a herd of pigs, and failing to provide suitable accommodation for pigs. He was charged following an inspection by animal health officers from Oxfordshire County Council’s Trading Standards Service and a veterinary officer from Defra. He was fined £4,500 for eight counts of failing to look after farm animals in his care. He was also banned from keeping animals for five years and ordered to pay costs of £995.
July 5
Processors compete for dwindling supplies
Tightening pig supplies at home and on the continent over the past two months have had a dramatic effect on the relationship between DAPP and retail prices, as the chart above shows.
But although the DAPP will rise again next week, as it continues to close the gap with spot, producers will need to be on their guard against a bid by buyers to prevent the pig price reaching the pivotal 150p.
It is worth repeating that pig producers in Britain and on the continent need circa 150p for as long as inputs are at current levels, if a second wave of departures from the industry is to be prevented.
Chart supplied by Pigs Are Worth It campaign.
Tighter grain stocks mean faster reaction to changes in demand
The reduction in grain stocks has one thing going for it, says agriculture commissioner Mariann Fischer Boel: it has reduced the buffer against changes in production or demand.
She says current stock levels are not, in any case, particularly low when compared with the early 1980s — “more that the situation of very abundant stocks has come to an end”.
She has ruled out a return to the days when intervention stocks sucked up billions of euros of public money. “This would damage our farmers' long-term interests and the public would not be prepared to pay the bill.”
And she does not agree that there should be a U-turn on biofuels. “We currently use less than one percent of our cereal production to make bioethanol.
"We use two-thirds of our rapeseed crop to make biodiesel, but in fact European rapeseed production accounts for about two percent of global oilseed demand. So this is not something to shake the markets, and freeing this up for the food market will make little difference to prices.”
She does not see export restrictions as a sensible way for nations to safeguard their feed stocks.
“They may bring short-term pain relief in one particular country, but they make the underlying problem worse – both in that country and elsewhere – by adding to nervousness on the world market and by cutting incentives for farmers to raise production.”
Porkwatch
A new round of the Porkwatch survey is under way. Volunteers are asked to visit stores between Monday July 7 and Sunday July 20, and to return their forms by Friday July 25.
IPPC will cost some units £20,000 a year
How much does IPPC really cost? Implementation costs vary according to unit size, the number of slurry stores and whether there is a requirement to reduce ammonia emissions, says BPEX’s Nigel Penlington, “but perhaps a reasonable average cost is going to be somewhere between £10,000 to £20,000 a year”.
Top tips on IPPC
By Nigel Penlington, BPEX
• Portable tanks do not need to be bunded.
• Keeping records can make life easier - many of the records required by IPPC already exist - don't duplicate them, but do make sure they are available.
• The Pollution Inventory looks daunting - BPEX has templates to help you fill in the paperwork.
• Keep waste transfer notes on file and keep a running tally.
• Oils, plastics, scrap metal and batteries are all regarded as waste. However redundant farm machinery is not.
• A tidy yard and an obviously diligent biosecurity system will make a good first impression when the Environment Agency visits.
• If you're proactive it may save you time having to do unnecessary work.
• Water-metering is an easy and inexpensive way to measure usage.
• Work instructions are helpful for staff to understand IPPC conditions.
• 50 percent of slurry is often wasted water.
• Mark up drains - red for slurry, yellow for less harmful and blue for clean.
Natural England warns on GMs
Natural England has warned the United Kingdom government against a new-found enthusiasm for genetically-modified crops and food. In a letter to The Independent, Sir Martin Doughty, chairman of Natural England, cautions against "rushing headlong to embrace GM crops as the solution to rising food prices". He claims they can cause harm to wildlife, and there is little evidence that the present generation of biotechnology crops will help in reconciling surging global food demand with protecting the environment. European pig farmers face a soya shortfall, driven by an unwillingness of some member countries to fast-track approval of new GM soya varieties.
How IPPC can trip you up
Many pig producers are bewildered by what they consider to be the inconsistent advice they receive from the Environment Agency.
Nevertheless, the majority are reporting that initial contact with local Environment Agency officers has been less of a trial than they had feared - although some report having received impractical and even ridiculous advice.
For instance one pig farmer, who has had lorries delivering feed in the night for over 30 years and has never had a burst bin, was told by Agency he should install steel posts to protect the bins.
In his view these would be more hazardous, and likely to burst the delivery tanks. The alternative was to put kerbstones down, which he has done. The staff are constantly tripping over them. A sensible risk assessment would likely have found both measures not viable.
Sometimes a more pragmatic approach to issues such as small amounts of dust under a feed bin or the need for guttering on all buildings would go a long way and make sure attention was focused on the more significant issues.
"Some of the key issues to consider are understanding permit conditions, the pollution inventory, improvement plans and best available techniques to comply with the conditions. Also a little bit of lateral thinking can help make conforming to IPPC less arduous,” says BPEX’s Nigel Penlington.
“Within six months of applying for a permit, applicants should receive a visit from environment officers for a site inspection, to discuss aspects of the permit and improvement conditions. The environment officer should also provide guidance on how to comply with the permit conditions."
From visits already carried out, the most common issues to arise for producers are site identification boards, bunding, records and reporting.
We can't ignore GMs, says Brussels
Any serious discussion about technology and agriculture can’t afford to sweep genetically modified organisms under the carpet, says agriculture commissioner Mariann Fischer Boel.
"At a global level as well as in Europe, agricultural productivity growth has slowed down significantly for some key food grains. In Europe, we have to try to reverse that trend, while being respectful of the environment.
"Continuing to improve yields means using existing technologies more widely; it also means developing and harnessing new technologies. So we must give research the resources it needs."
Pfizer Trainee of the Year
Entries for the Pfizer Trainee of the Year award have now closed. There are eight entries, which is an excellent response, particularly in the current climate.
The organisers are currently fixing a judging date in October. The winner will receive prizes worth over £2,000.
The Pfizer Trainee of the Year Award was founded by Agskills. It became a national award last year. It is run in association with Pig World, and with the support of NPA.
Troubled Smithfield will recover
Shares in Smithfield Foods Inc have fallen to their lowest in five years as the company grapples with high grain and fuel prices. Analysts say there is too much debt on the company's balance sheet.
Smithfield stock has lost more than 40 percent of its value this year. Money-raising moves include selling a 5 percent stake to Cofco Ltd (China's largest agricultural trading and processing company) and a planned merging of European operations with Spanish meat producer Campofrio Alimentacion.
Analysts say Smithfield will recover from its difficulties, but not until mid-2009 or spring 2010.
40 percent of corn will go for biofuel
By next year, 40 percent of the American corn crop will be mandated to the biofuel market, according to Dr Dean Boyd of the Hanor Family of Companies in the United States.
He warned of the grave impact the world biofuels policy, along with climate change, is having on the global pork industry. "Feed costs are doubling and it is costing $122 (£61) to feed a single pig," he said. “The demand for crops to be used as fuel is driving up feed costs for pork producers and pushing the smaller operators out of the industry.”
The Hanor Family of Companies is one of the United States’ leading pork producers with operations in seven states and over 500 employees.
Northern Ireland producers hope Vion will invest in Cookstown
The Pork and Bacon Forum in Northern Ireland is hopeful Vion will have the wherewithal to invest in its Northern Ireland operation. The Forum’s chief executive, Keith Smyton, says a deputation will be seeking a meeting with the management at Cookstown in the very near future.
Keith Smyton is reasonably confident that despite a slight slow down over recent days in the rate at which producer prices have strengthened since the beginning of May, prices will continue to strengthen as a result of the fundamental drivers of supply and demand.
Disastrous year for Dutch pig farmers
Although it may not be apparent from recent reports to the pigmeat management committee in Brussels, Dutch pig farmers are having a disastrous year - just like pig farmers everywhere.
Weaner prices fell 25 percent in the Netherlands last year and breeder units saw income drop by over 190 percent. Higher producer prices remain insufficient to cover the industry's higher production costs, says the Dutch Agricultural Economics Institute.
Since the feed cost crisis hit the world's pig producers last summer, the sang froid displayed by Denmark, the Netherlands, and some other European countries, has been viewed (correctly, as it turns out) with scepticism by British producers.
The slower the drop, the bigger the fall
It doesn't look like North American pig slaughter levels will slow down in the next four to six months, according to Tyler Fulton, director of risk management for Manitoba Pork Marketing. He notes the general rule that the longer an industry suffers, the greater the reduction when it does happen.
Polish herd plummets
Pundits in Poland reckon up to 150,000 of the country’s 580,000 pig producers will quit as a result of the cost:price crisis. By March sow numbers were down 20 percent on the same time last year, and the downward slide is continuing. Poland has many small pig farms. The current fallout suggests a major restructuring of the national herd is taking place.
World prices on the move
The pig price in Europe and Brazil has risen but in the States, where supplies have yet to shorten, it went the other way last month. A buoyant export demand is helping United States pig farmers sell their product, but they continue to lose money as a result of high feed costs. The day of reckoning is being delayed because arable farmers continue to put up new pig housing — they value yield-boosting pig slurry on their extensive acres. Some forecasters predict the United States pig price will plummet later this year. Overall the chart above suggests the global pig price is improving. But how many pig farmers are back in profit?
Vets lift Bulgaria pig ban
Following a visit last month by European Commission vets, Brussels has lifted its ban on exports of Bulgarian pigmeat. The ban was imposed in 2006 as a result of classical swine fever outbreaks. Bulgaria may now export live pigs to European Union countries, and third countries.
LIPS recipe of the month
The LIPS recipe of the month is Pork and Apricot Burgers.
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.
Slaughterings down 12 percent
Around 139,000 clean pigs are estimated
to have been slaughtered in the week ended 21 June,
around 12 percent less than in the same week
last year.
France in the chair
France has taken on the presidency of the European Union for the next six months. The French government has highlighted food policy and the future of the CAP as one of its priorities.
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.
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
Pig World , PO Box 100, Benniworth, Market Rasen LN8 6LE, United Kingdom