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June 26
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. You could download it now from the Pig World Library but it is a big document - over 300 pages. If you wait until tomorrow night a slimmed down version will be available here.
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.
DAPP-versus-Retail
When we look at the latest DAPP-v-Retail chart commissioned by the Pigs Are Worth It campaign, we see an interesting development. The relationship between the two prices has been restored to pre feed crisis levels in July. This suggests retailers and/or processors, or both, are pocketing less of the increases that have been seen on supermarket shelves over the past ten months. If this is the case, it is a further indicator of how tight pig supplies have become, and a reminder that pig producers are at last in a sellers' market.
The Traffic Lights spot price has been superimposed, to show where DAPP should be soon.
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
Consumer resistance to price rises?
Spot values will remain firm this Friday. Nevertheless there is concern on the continent that recent surges in pig prices have slowed down, perhaps due to consumer resistance. Consumers have taken big hits in the wallet in recent months and may need reminding pork is still excellent value, even if it does cost a bit more than a cheap pasta meal, or beans on toast. Denmark's prices, are unchanged — still trailing behind everyone else — but quotes in Belgium, Germany and Holland have all dropped slightly this week. — D.S.
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."
Nestlé asks Europe to soften its line on GMs
Nestlé, the world's biggest food company, has called on European policymakers to reconsider their opposition to genetically modified crops.
"You cannot today feed the world without genetically modified organisms," Peter Brabeck, chairman of Nestlé, told the Financial Times. "We have the means to make agriculture sustainable in the long term. What we don't see for the time being is the political will."
Mr Brabeck said Europe's opposition to such biotechnology had encouraged African policymakers to reject GM crops. South Africa is the only country on the African continent to commercialise them, growing GM maize, cotton and soyabeans.
"The European Union used political pressure in Africa to prevent some of those countries using genetically modified organisms," said Mr Brabeck. I don't think that was necessarily helpful for the agriculture of those countries nor for their supplies."
Peter Mandelson, the European Union trade commissioner, rejected any allegation of bullying. "Africa is free to grow whatever crops it wishes, but as the vast majority of its agricultural exports are destined for the European Union, it is clearly in its interests to try to meet the needs of that market."
European Commission officials are frustrated that national governments often block their recommendations for GM approval. "Their resistance stems from how Europe feels about GMOs," said a spokesman. Only 21 percent of Europeans will eat genetically engineered food, according to a Commission survey. Few GM strains of crops have been licensed by the European Union.
In Britain, farmers are finding it difficult to source non-GM soyabeans because Brazil, the leading exporter of non-GM soya, has been planting more GM crops.
Mr Brabeck said European concerns over the the health risks of GM were unfounded, given that such foods had been eaten safely by Americans for decades. "It is one of the safest technologies that we have ever seen - much safer than bio or organic or whatever else is fashionable in Europe," he said.
Source: Financial Times.
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.
Good meat from happy pigs
No wonder the LIPS stand was such a success at Lincolnshire Show... the meat was provided by Meryl Ward's farm shop, Uncle Henry's. More pictures, and report, on the LIPS page.
Trainee of the Year — outstanding response
Despite contraction in the industry, interest in the Pfizer Trainee of the Year Award (which is now a national competiton, run in association with Pig World) has been outstanding. The organisers are delighted to report that so far there have been seven entries — which is more than they expected. Judges will be Gerry Brent, David Roberts and Stewart Houston. Deadline for entries is next Monday.
Firm prices for outdoor pig equipment.
Peter Crichton reports a good attendance of over 100 buyers at his dispersal sale of outdoor pig equipment from a 750-sow herd held on behalf of Philip Southgate at East Harling, Norfolk.
Leading prices included Booth farrowing arks selling at £180-£205, fenders £40 to £52, Harvey Jumbo dry sow arks to a top of £1,220 with the remainder between £820 and £1,100, 4-ring Harvey dry sow arks to £280, a large selection of wallows and troughs to £60, sow ad lib hoppers to £100, GHL pig scales £210, electric fencing units to £130, stakes and fencing materials also in ready demand, AI tent £720, sets of 8 hurdles selling at up to £900 per set.
Peter Allen 4-tonne Rotafeeder £2,500, Peter Allen 3-tonne Rotafeeder £2,050, Tyler 8ft wide hydralift pig movement trailer £5,100 and a 5ft 6in wide model £2,200, stainless steel water bowser £650, Ford 4558 loader tractor £1,000, John Deere 1994 6400 4WD tractor £10,600, Collinson 20 tonne bulk bins to £4,200.
Go here for: Sales, Wants, Jobs.
LIPS Cookbook
The new LIPS Cookbook, with over 155 pork recipes in it, is now on sale for £5 and proving very popular. To buy a copy email Jane Conder at LIPS central office, or visit the LIPS stand at the summer shows.
June 22
Sow slaughterings up nearly 30 percent this year
Sow slaughterings in the United Kingdom for the five months of this year have risen 29 percent compared to the same period last year. This is a result of foot and mouth movement restrictions last autumn, producers quitting or scaling back as a result of high input costs and, perhaps, good cull sow prices, caused by buoyant export demand, tempting producers to carry out a destock-repop.
Cold stores will soon be empty
It is expected all the pigmeat that went into private storage last year, on the back of European subsidies, will be out of storage and sold by the end of August.
Scottish pig kill down 15 percent
Scotland clean pig slaughter numbers fell 15 percent last month compared with May 2007. England and Wales fell six percent. Taken over the first five months of this year, United Kingdom clean pig slaughterings have increased one percent as a result of improved productivity, but supplies have tightened considerably in recent week as a result of producers quitting the industry.
Banks get jitters over Danish pig farms
Danish banks have increased their ‘supervision’ of Danish pig farmers. According to domestic Press reports they fear the Danish pig industry’s losses will trigger bankruptcies. However, the banks are said to expect the losses will come to an end “very soon”.
Europe pig herd stable (says Brussels committee)
The Brussels pigmeat management committee's view of the European pig market continues to surprise the British pig industry. Last week the committee determined the European market is “stable”, but that prices could rise further.
June 20
Pig price hits 145p
Most spot bacon quotes tended to be in the 140–142p range for heavy bacon today - with light bacon and cutters traded at up to 145p.
June 19
France calls for an end to lower quality imports
In a memorandum to the European Union Farm Council, France is calling for an end to the distortion of competition that takes place when imports are allowed into Europe from countries with lower standards.
France wants to see stricter import controls to ensure imports from third countries meet Europe’s animal welfare and animal feed standards. It wants these issues to be covered off in bilateral trade agreements to ensure such restrictions are recognised as being a legitimate facet of international trade.
NPA meeting and BBQ
The invite to the NPA East Anglia meeting on July 2 is here — and to the barbecue, here.
IPPC update
IPPC ammonia reduction letters have not been mailed out to producers yet by the Environment Agency, although they are in the pipeline. Some units will find, when they get their letter, that they no longer need to produce an ammonia emissions reduction plan. The advice from Nigel Penlington at BPEX is to hold off producing your reduction plan until you have received your letter confirming the revised situation.
Is this the best pork recipe ever?
Is Fruity Pork Curry from the Ladies in Pigs the best pork recipe ever? Or do you know a better one?
Stew Houston was asked by a magazine what meal he would take to his desert island. "It would have to be Fruity Pork Curry from the Ladies in Pigs cookery book," he said. "I'm not normally a curry fan but the flavours and textures in this hit the spot."
• Fry off the pork with onions (shoulder is better than leg in SH's view).
• Add the curry then stir in mango chutney and sultanas.
• Add a sprinkle of flour.
• Cook a bit longer then simmer in chicken stock until tender.
• Add apple and grapes towards the end to keep the texture right.
Enjoy with two bottles of Black Sheep Bitter (which is brewed in North Yorkshire tha knows.)
More LIPS recipes here.
June 18
Minister applauds British pig industry
"We must support the pig industry’s campaign. I am sure that all Honourable Members will do so, because it produces a fine product and its animal welfare is good." — Jonathan Shaw, Defra minister.
Agriculture and the environment
Meeting the world’s growing demand for food and protecting the United Kingdom’s environment must go hand in hand, according to the NFU’s submission to the Environment Audit Committee. The committee, which is assessing the government’s target to halt the loss of United Kingdom biodiversity by 2010, heard the NFU make the case for a new balance between productive agriculture and wildlife protection, as well as farmers’ concern about climate change and invasive non-native species.
One of Britain's finest farming industries
"British pig farmers produce some of the world's best pork – and they need our support now more than ever before," says Natalie Mitchell, senior meat buyer at Waitrose.
"It would be an absolute travesty if Britain were to lose one of its finest farming industries at a time when Britain is sourcing large quantities of bacon from abroad."
Waitrose has been backing the industry's survival campaign and announced this week it plans to ban all foreign pork and bacon by the end of the year.
June 17
Cattle up, pigs down
Cattle futures rose to their highest in over two decades in the States yesterday, as the surging cost of corn renewed concern that feedlots will reduce the number of animals available for beef production.
Pigs fell back slightly but are still 30 percent higher this year. The price was expected to fall because of increasing production costs and over-supply, but high exports and rising consumer demand for pork, which is cheaper than beef, have so far confounded the predictions of economists.
June 16
NFU calls for beef and lamb increases
NFU is calling for further increases in farmgate prices for beef and lamb to safeguard long term sustainability of the sectors. This follows the release of the latest Eblex business pointers report which shows that beef finisher units faced a 17 percent rise in costs in the year ending March 2008. In the same period sheep breeding flocks saw sales drop by 12-13 percent.
Cash for training
BPEX Ltd has just secured funding from Yorkshire Forward to help with staff development in the Yorkshire and Humber pig industry. The funding will provide support to the industry whilst they continue to build on existing skills and knowledge.
With pig production still withstanding heavy losses, investing in staff development is not on the top of producers' lists, but BPEX hopes this funding will help to continue to support this important area business.
According to Tess Howe, BPEX skills development manager: "Stockmen who have attended some of the training workshops we have run across the country have really benefited and appreciated the fact that attending them contributes to a recognised qualification. Equally, the number of companies engaging in management level training is encouraging, as they realise this is an area that will help raise unit productivity whilst improving staff motivation and retention."
If you are interested in staff development, need support in ongoing programmes or provide to training events, BPEX may be able to help. Call or email Tess Howe, 07779 321078.
Denmark’s loss is Germany’s gain
Trade in live pigs to Germany dropped 12 percent in the first quarter of this year, compared with a year ago, mainly because fewer slaughter pigs pigs are being sent from Holland. However imports of live weaners from Denmark have increased, partially offsetting the drop. The live pig trade with Holland could recover later this year; Germany’s processing costs are cheaper than Holland’s. Many of the three million slaughter pigs imported from the Netherlands each year are shipped back as meat.
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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