Friday september 3 2010

We'll give you the facts,
promises BPEX

By Digby Scott

There is insufficient levy-payer support for a supplementary marketing levy. This is the conclusion from a 'soundings' exercise carried out during August for BPEX.

Levy-payers are worried about rising costs and diminishing returns, and they don't know enough about BPEX's marketing activities to be confident the extra money would be a worthwhile investment.

But BPEX is not giving up on the 'Butler Plan' until it has met producers at the next round of NPA regional meetings and explained how the BPEX marketing department works and how it would spend the £5-6m marketing pot created by an extra 80p per pig levy.

"At the meetings I will explain what we do and Jimmy and Alastair Butler will talk about the proposition for a stand-alone television, newspaper and magazine campaign aimed directly at consumers," said marketing manager Chris Lamb today.

The 'Butler Plan' proposes an extra levy be paid to BPEX to build up a marketing pot to promote Red Tractor pork.

The respected East Anglia father-and-son team want to see a well-resourced marketing campaign to improve consumption of British pork and to strengthen the British premium during the more difficult times to come.

If producers decided they wanted to pay an extra levy, the whole £5-6m pot would be devoted to a television, newspaper and magazine campaign to promote Red Tractor pork, bacon and ham.

Currently there is a perception that BPEX devotes all its marketing spend to trade activity. In fact 60 percent goes to consumer marketing in the form of its website Love Pork and public relations exercises such as British Sausage Week and Bacon Connoisseurs' Week, which are integrated with trade activity.

"The one area we can't cover because of our small budget is consumer advertising," said Chris Lamb. "With a budget of under £3m I wouldn't even consider it. In terms of real work to explain what Red Tractor pork, bacon and ham stand for, we have to focus on the Love Pork website."

An NPA survey in May showed 75 percent of producers in favour of an extra levy. But since then a nose-diving DAPP, a euro that continues to weaken against sterling, increased feed costs, and wheat price volatility have rendered the results unreliable.

In taking its own soundings last month, BPEX used a specialist agency to conduct seven focus groups with pig-keepers around the country and six one-hour face-to-face interviews with corporate producers.

Pig-keepers in the focus groups said their 'golden period', driven largely by the strength of the euro against sterling, was coming to an end and they were now worried about commodity volatility, a less favourable euro-sterling exchange rate, and the cost of bureaucratic legislation such as Nitrate Vulnerable Zones.

Reports from the focus groups show few pig-keepers conduct any marketing themselves and therefore its is largely a foreign subject to them. Apparently the term 'marketing' is often confused with 'sales', perhaps because many pig-keepers use 'marketing' groups to sell their pigs.

A matter of some concern for BPEX was the finding from the focus groups that most pig-keepers have very little idea about what the BPEX marketing department does.

"I wouldn't have said there was extremely good knowledge out there about what we do, but the extent of the lack of knowledge came as a surprise," said Chris Lamb. "There wasn't even much awareness of the 2007-2008 'Pigs Are Worth It' campaign.

"If, as they claim, levy-payers really don't know what BPEX marketing does, it is perhaps understandable that they should wonder why they should pay an increased levy to do more of it."

In order to address the apparent lack of awareness about BPEX marketing activities, BPEX is to increase its communications with levy-payers.

"Talking to you today is a start to that process," said Chris Lamb. "We will be producing literature about what we do, for producers to pick up at NPA meetings, and we will probably run it as an insert in November Pig World also.

"We will also look at doing something on an ongoing basis, stepping up our overall level of communications through Pig World. In fact we may end up being criticised for devoting too much of our resources to communications with levy-payers."

So what would a £5-6m television-and-press advertising campaign look like?

Chris Lamb has not attempted to put any creative ideas together yet, and won't unless there is a reasonable prospect of producers agreeing to a supplementary levy.

If that happened work would start with consumer focus groups to determine which messages would have the biggest impact.

One possibility would be to approach a celebrity chef — and if she lives in Jimmy and Alastair Butler's own county so much the better.

Another might be to pick up on Alastair Butler's theme of Red Tractor pork being 'the pork you can trust'.

And a third strand might be 'Red Tractor — high standards from farm to fork'.

In due course focus groups made up of shoppers may be asked to comment on these ideas. But not unless levy-payers have a change of heart about the 'Butler Plan'. If the BPEX board were asked today to make a decision about a supplementary levy, it would have to say No.

Think carefully...

Before expanding their herds, producers should be reminded of the very fine supply/demand balance within the British retail sector to absorb extra supplies of potentially more expensive British pigmeat in the face of cheaper foreign competition. Traffic Lights commentary.

Producers and vets oppose
censorship plan

Neither pig producers nor their vets agree with a proposal by a government agency to censor advertising in Pig World. Both parties will be making their disapproval clear in responses to a consultation by the Veterinary Medicines Directorate.

The Veterinary Medicines Directorate wants to ban advertising of antimicrobials to farmers. It believes the advertisements cause farmers to put pressure on vets to prescribe antimicrobials inappropriately.

The Pig Veterinary Society has confirmed to NPA that it is not aware of any cases of vets being pressurised by pig farmers.

It says that in addition to the need to treat on animal welfare grounds, vets give due regard to the cost benefit of veterinary medicines. "Unnecessary use of antimicrobials does not occur. All veterinary medicines have a cost and must provide a benefit equal to that cost in terms of disease treated and mortality reduced."

NPA will be including the Pig Veterinary Society's comments in its response to the Veterinary Medicines Directorate's consultation. It will also point out that if the proposed information black-out is introduced:

• Pharmaceutical companies may reduce their research budgets for veterinary products, because achieving an economical return will be more difficult.
  
  
• Restricting the advertising of antimicrobials will significantly impact on the NPA's ability to communicate health and biosecurity issues to its members, as its website and Pig World, which are the two most popular sources of information for the pig industry, are partially funded by advertising, including on occasion advertising for antimicrobials.

"The pig industry takes the issue of antimicrobial resistance very seriously and anything that can be done to reduce the risk is strenuously supported. Restricting the advertising of antimicrobials will significantly impact on the NPA's ability to communicate this message to its members," says Zoe Davies in NPA's consultation response.

In a letter to NPA, Pig Veterinary Society president Nigel Woolfenden (pictured) says, "Obviously any promotion of any product must be believed to maintain or increase sales of that product otherwise the costs of promotion would not be incurred so it would be naïve to believe promotion of antimicrobials is neutral in its effects.

"However, advertising of antimicrobials in the United Kingdom to professional farmers is already covered by legislation that limits any claim that is not in the summary of product characteristics approved already by the Veterinary Medicines Directorate."

He stresses that specialist pig vets are focussed on preventing antimicrobial resistance.

"The Pig Veterinary Society is currently focusing on retaining the effectiveness of our present medicines by avoiding rapid build up of antimicrobial resistance in our pig population by both prudent use of our existing medicines and where possible eliminating bacterial disease either on a farm or regional basis. Both of these aims are helped by ongoing dialogue between veterinary surgeons and their informed and motivated clients."

Go to the NPA Library to read the full NPA consultation response.

Pig Industry Energy Club

As feed costs rise and income starts to nose-dive to loss-making levels, pig-keepers are extremely keen to cut their spiralling energy costs — but they don't know who they can trust to help them.

So Pig World has joined forces with two reputable energy specialists, Farmex and the South Hams Group, to form the Pig Industry Energy Club.

The club will track down the best electricity deals for members and pass on significant savings. It will also advise producers on how to reduce the amount of energy they use. It will even help source the most cost-effective solar panels for pig units. There are big savings to be made, working with people you are comfortable with.

The club is being formed following the industry's powerful reaction to an article in August Pig World about cutting energy costs.

The author, Alex Ward, received numerous calls after telling readers, "If you have an energy bill of over £100,000 a year, with a little effort, some good advice and some investment, you could halve that cost. Simple as that."

The Pig Industry Energy Club will provide members with professional advice they can trust. But there is a catch. The club will run as a pilot for the first year, which means initially it will accept only ten members. And because site visits will be involved, it is likely the first members will be farming in England rather than Scotland.

You will be able to express a no-obligation interest soon, by filling in a simple form on this page. Watch this space.

NPA survey is meaningless

By Digby Scott

NPA's Newbury meeting on Tuesday September 28 will be a litmus test of the industry's level of confidence for the next 12 months.

Jimmy and Alastair Butler will be explaining the 'Butler Plan', which proposes an extra levy be paid to BPEX to build up a marketing pot to promote Red Tractor pork.

The respected East Anglia father-and-son team want to see a well-resourced marketing campaign to improve consumption of British pork and strengthen the British premium.

The Newbury meeting will provide the first opportunity for the industry to give its view since the NPA survey on this website showed 75 percent of producers in favour of an extra levy.

The NPA survey is now meaningless, having been overtaken by a nose-diving DAPP, a euro that continues to weaken against sterling, increased feed costs, and wheat price volatility.

So do the bearish indicators that are causing so much concern to pig-keepers mean they will be keener or less keen to pay a supplementary levy?

The South-Central meeting will provide a clue and members in the area are urged to attend. Feedback from the meeting will be crucial to the success or otherwise of the supplementary levy proposal.

Calls to this website from pig-keepers around the country who have taken part in a recent BPEX 'soundings' exercise suggest levy-payers are sceptical about the plan.

They have been influenced in their judgement by the change in trading conditions but also there is a lack of knowledge about how the existing BPEX marketing budget is spent, and there is therefore some doubt about whether a new marketing pot would be invested productively by BPEX.

Alastair Butler has recently been working with the BPEX marketing team, learning how BPEX operates and how decisions are made and implemented. He will be able to give NPA members some feedback of his experiences.

The NPA South-Central meeting is on Tuesday 28 September at Newbury Rugby Club, starting 6.30pm. The theme will be, "How can we maintain the British premium?".

More on this page soon about the supplementary levy, in the form of an interview with BPEX head of marketing Chris Lamb.

Rising food prices

The BBC may be running an item on rising food prices in its six o-clock bulletin. NPA has asked Essex producer Fergus Howie to speak for the pig industry. He will explain that whilst food prices have risen, the pig price has fallen, because of the length of time it takes retail increases to travel through the chain. He will point out that pork remains excellent value for money.

Members area

The Members Area was updated yesterday.

French producers launch sticker campaign

French pig producers have launched a sticker campaign targeting processors that do not label pigmeat products honestly.

In supermarkets producers will put a fluorescent label on products, saying "Unknown origin – ask for Viande de Porc Francaise".

After three years of crisis, the French were hoping for an improvement in 2010, but during the first seven months, the pork price has fallen 4.12 percent on 2009.

A summer boost to prices has not materialised and the extra cost of cereals is hitting hard. The French minister of agriculture will announce a series of measures to help both the cattle and pig sector at the Livestock Fair in Rennes on September 14.

NPA regional meetings

East Anglian – Wednesday 13 October, Athelington Hall, 4pm start. Theme – "A vision for the pig industry in 2020".
 
Northern – Thursday 21 October, Crown Hotel, Boroughbridge, 6:30pm start. Theme – "Is disease eating away your profits?"
 
South Central — Tuesday 28 September, Newbury Rugby Club, 6.30pm. Theme — "How can we maintain the British premium?".

More details on all these soon.

Risk management

BPEX is holding a risk management workshop on September 29 at Cambridge, 9.30am-4.30pm. Details andrew.knowles@bpex.org.uk.

thursday September 2 2010

Brussels funds 'soya plot'

By funding the activities of the lobby group Friends of the Earth, the European Commission may have compromised the viability of the British pig industry.

Friends of the Earth's recently-published report "Pastures New", which has been produced with European Commission money, is being used to underpin a Private Members Bill in the House of Commons.

Labour MP Robert Flello's Sustainable Livestock Bill calls for more sustainable livestock farming in this country.

It claims global livestock and animal feed production is currently "the most significant worldwide cause of biodiversity loss, with the large-scale conversion of forests and other valuable habitats to produce animal feeds a cause of particular concern".

Flello's Private Member's Bill targets British pig producers' Achilles Heel — their reliance on imported soyameal for much of the protein content of pig feed.

"The impact of the United Kingdom's and Europe's demand for soy is staggering," says Friends of the Earth in its report "Pastures New".

"Soy plantations are driving deforestation in South America where vast swathes of land have been converted for large-scale crop production.

"If current trends continue, soy farmers and cattle ranchers will destroy 40 percent of Amazon rainforest by 2050."

These huge changes in land-use are not only a blow for wildlife and natural diversity, they are also stoking climate change, says Friends of the Earth.

"Technically there is no reason why imported soy meal cannot be completely removed from pig diets," it claims.

"From a nutritional perspective United Kingdom-grown soy, oilseed rape meal, lupins, sunflowers, field beans, peas and linseed are all potential alternatives."

Flello's Private Member's Bill gets its second reading in November. It is unlikely to be passed. The Coalition Government will not want its sustainability policy to be dictated by Friends of the Earth.

Nevertheless the Bill does highlight an issue that is not going to go away and is therefore potentially damaging to the pig industry, which relies heavily imported soyameal.

Outdoor pigs and trichinella

By Digby Scott

There is no evidence that trichinella exists in the United Kingdom pig herd. Nevertheless Brussels is demanding all our pigs are tested in future.

That's about eight million pigs a year — and pig-keepers would have to pick up some or even all of the bill, at £1 a pig.

Currently only cull sows are tested and NPA chairman Stewart Houston says this is a sensible compromise as it means that effectively the whole herd is monitored.

Although trichinella has not been found in the United Kingdom pig herd, it may exist, undiscovered, in some wildlife, so some monitoring of pigs is considered necessary.

Trichinosis is an important infection in pigs in some European countries. Humans can become infected from eating undercooked pigmeat containing the trichinella worm.

The disease was last diagnosed in humans in the United Kingdom in 2000 and was linked to eating undercooked imported pigmeat.

Both NPA and the Food Standards Agency are keen to prevent Brussels imposing what NPA considers to be a disproportionate level of regulation.

The United Kingdom has argued with Brussels that there is negligible risk in this country, but this view is not shared by some member countries which point to the risks posed by Britain's large outdoor herd.

As a result, the United Kingdom will attempt to negotiate a compromise, where perhaps 1.6m-2m more pigs a year are tested, including more or all outdoor pigs.

The bill for testing 200,000 cull sows is around £200,000 a year and much of this is paid for by the Food Standards Agency.

Were testing to be extended to an extra 1.6m-2m pigs, the cost would be £1.6m-£2m a year. If all pigs were tested, it would cost around £8m a year.

At a meeting last week between the Food Standards Agency and pig industry representatives, it was agreed the industry should discuss the problem and feed back its thoughts on:

• The need for increased testing.
• Targeting outdoor pigs for trichinella testing.
• Fair cost distribution.

English pig industry
rebrands shoulder pork

By Digby Scott

East Anglia producer Alastair Butler's award-winning idea for marketing shoulder pork as the "hog-roast joint" has come to fruition.

His idea for rebranding shoulder meat and helping balance the carcase won the £1,000 first prize in ABN's Innovation Award held at this year's British Pig and Poultry Fair.

Since then he has been working with BPEX on a campaign to promote "Home-Cook hog-roast".

Above: Alastair Butler's plan to rebrand shoulder pork was revealed in June Pig World.

Initially the rebranding of British shoulder pork is being targeted at caterers and butchers, but the idea may also be taken up by supermarkets as well.

When he presented his idea at British Pig and Poultry Fair, Alastair Butler said promoting pork shoulder as hog-roast pork would help producers capitalse on the Jamie Oliver "Save Our Bacon" programme screened in January last year.

"The shoulder is a quarter of the carcase and if we rebrand it as the hog-roast joint, it will have a significant affect on carcase balance," he said.

A just-launched BPEX campaign aimed at caterers and butchers will explain how shoulder pork can be used to produce an oven-cooked hog-roast meal.

A BPEX press release will tell caterers, "The Home-Cook Hog Roast is a great alternative to the traditional hog-roast which isn't always feasible for caterers to do unless serving a large number of customers, and consumers will only hire a hog-roast for a special occasion.

"A pork shoulder joint or a number of pork shoulder joints on the other hand is a practical and profitable alternative for smaller numbers and still delivers on that exceptional taste of traditional hog roasted pork."

The Home-Cook Hog Roast pork shoulder joint can be cooked in an oven or on a barbecue in around four and a half hours.

"The result is deliciously tender 'pulled' pork which is similar to the consistency that a traditional hog-roast delivers," says BPEX butchery development manager Keith Fisher.

Soyameal market remains nervous

(Source: Home Grown Cereals Authority)

Soyameal prices saw gains last week as strong export demand from China and supportive crude oil markets lifted the soyabean price.

Bean prices in Chicago gained 4.70 dollars over the week to 375 dollars a tonne and in response meal prices followed higher gaining 7 dollars a tonne to 307.60 dollars a tonne.

In the United Kingdom the latest Home Grown Cereals Auuthority feed ingredient price survey put Femas soyameal, ex-mill Liverpool, for spot delivery at £316 a tonne, some £5 tonnes above a week previous.

External influences have been supporting the soyabean and meal markets despite expectations of a record United States crop potentially weighing on the market.

The latest United States agricultural department crop progress report suggests 8 percent of the soyabean crop is dropping leaves as maturity nears; harvesting has already begun in the far south.

The soyabean crop is seen to be in a good condition; however, some market participants are being kept on edge as the condition is not as good as a year ago.

At August 29, 64 percent of the United States soyabean crop was seen in a good or excellent condition compared to 69 percent a year ago.

The United States soyabean crop will take greater prominence in Europe this year as European crushers may switch to crushing soyabeans as the availability of rapeseed diminishes after a poorer than expected harvest in Germany.

The soyabean, and consequently soyameal, market will remain nervous until the harvest begins in the United States and yield figures are available.

LATEST CEREALS FORECAST
World cereals use will exceed production

The forecast for world cereal production in 2010 has been lowered by 41m tonnes to 2,238m tonnes from 2,279m tonnes reported in June.

However, even at this lower level, world cereal output in 2010 will be the third highest on record and above the five-year average.

WORLD CEREALS PRODUCTION

Among the major cereals, wheat accounts for most of the cut, reflecting mainly smaller crops in Russia and the Black Sea countries due to adverse weather, reports the Food and Agriculture Organisation of the United Nations

Under the present forecast world cereal use will now slightly exceed production in 2010-11.

This is expected to trigger a two percent contraction in world ending stocks from their eight-year-high opening levels and a small decline in world cereal stocks-to-use ratio.

At 23 percent, however, the ratio would still remain well above the 19.5 percent low witnessed in the 2007-08 food crisis period.

WHEAT PRODUCTION

A further cut in the forecast for 2010 world wheat production since the Food and Agriculture Organisation's last update on August 4 puts this year's wheat crop at 646m tonnes, down five percent from 2009 but still the third highest ever.

The latest revision reflects a further cut in the estimate of this year's harvest in the Russian Federation to 43m tonnes (from 48m tonnes in August) more than offsetting higher forecasts for crops in a number of other countries including the United States and China.

The forecast for world wheat ending stocks in 2011 was also lowered, to 181m tonnes, down nine percent from their eight-year high opening level.

The stock-to-use ratio for wheat in 2010-11 was projected at 27 percent, down three percent from the previous season but still five percent higher than the 30-year low in 2007-08.

We have enough, claims Russia

Russian agriculture minister Yelena Skrynnik has refuted claims that Russia will need to import grains this year. Analysts estimate Moscow will require an additional 3-6m tonnes, on top of this year's grain harvest of 60-65m tonnes.

Scots embrace new technology

The enthusiasm of those involved in the Scottish red meat chain to embrace new technology augurs well for the future of the industry, according to Donald Biggar, chairman of Quality Meat Scotland.

Mr Biggar said there were many examples of the technology developed in recent projects being readily adopted by the industry.

"The good news is this is making a real difference to both the bottom line and sustainability at a time when our industry's green credentials are under intense scrutiny."

Mr Biggar said the level of commitment to tackling important diseases from Scottish cattle, sheep and pig producers also sends out a positive signal about the future of the industry.

Food prices up on wheat price rise

Surging wheat prices drove international food prices up five percent last month in the biggest month-on-month increase since November 2009, the Food and Agriculture Organisation of the United Nations announced yesterday.

Dutch producers will be higher-welfare challengers

British retailers and consumers have not considered the Dutch to be particularly high-welfare pig producers, compared to Britain.

But that changes in January 2013 when the European partial stalls ban is fully implemented.

The rest of the continent will introduce the minimum requirements of European law, which means sows can still spend almost a quarter of their productive lives in stalls.

In the Netherlands, however, producers will be subject to more demanding welfare restrictions.

They must loose-house gilts and sows except for one week before farrowing and for only four days after service, whereas European law will allow up to four weeks in stalls after service.

The new Netherlands model will bring it almost into line with Sweden (sows must always be loose-housed except for the week before farrowing) and the United Kingdom (stalls outlawed altogether).

Some British retailers may claim the new Netherlands welfare model is as near to Britain's as makes no difference, which would give an unwelcome edge to Vion's marketing in this country.

As a major exporter of weaners across the continent, the Netherland's higher welfare stance will be transmitted through the continental supply chain.

It has been suggested a third of Dutch producers could cease production in 2013 in response to unilateral environmental and welfare legislation in Holland. It is a fair bet the survivors will be seeking a premium.

Stop the speculators, says France

France wants the European Union to act to curb speculation in agricultural and oil products, because of the way it distorts price.

Three French ministers have written to the European Commission's agriculture, internal market and energy departments.

They have called on the Commission to define common principles for the regulation of derivatives of all raw materials and assimilated products.

The ministers suggest better cooperation between regulators to ensure better supervision of the derivatives markets.

The Commission's internal market department is expected to publish proposals on derivatives markets by the end of the month, with more emphasis on transparency and discipline.

Department head, Commissioner Michel Barnier, has acknowledged a need for a rigorous framework for exchanges and transactions.

The letter from three French ministers to the Commission follows a statement by Nicolas Sarkozy that France intends to make this matter a priority during its chairmanship of the G-20 from November.

Introduction day

BPEX is holding an introduction-to-the-industry day on November 4, for the post-graduate students it will be funding. The aim is to give the students an indication of what is expected of them during their three years and to give them a positive overview of the pig sector in general.

Funding for health plans

Producers in the South of England can receive funding from the South East England Development Agency to pay for veterinary health plans on their units. Go here for details.

Falling income triggered levy rise

A year ago Quality Meat Scotland was at a "financial crossroads", said chairman Donald Biggar.

"A year ago we were facing a situation where our levy income, after eight years of levy rate going unchanged, had eroded to such an extent our ability to deliver effectively for the red meat sector in Scotland was under threat.

"I'm pleased to say that the increase in levy rates – approved by the Cabinet Secretary and effective from April this year – has resulted in the organisation being more robustly placed to deliver its workload on behalf of the industry."

Quality Meat Scotland chief executive Uel Morton said the organisation's income during the year ended 31 March 2010, before the levy rate increase, had continued to erode as predicted.

During the year Quality Meat Scotland received £3.85m of statutory red meat levy, continuing the downward trend of recent years (£3.9m in 2008/09 and £4.2m in 2007/08).

During 2009 Quality Meat Scotland undertook a series of meetings around the country as part of an engagement process to discuss the work of the organisation as well as the proposal to increase levy rates, subsequently approved.

"Feedback from levy-payers during the engagement process was very encouraging but it emerged some were unaware of the wide range of activities we undertake on behalf of the Scottish red meat industry.

"While most were aware of our marketing activities, too many did not realise we have around 50 industry development projects underway and a full-time health and education co-ordinator. We are taking steps to increase levy-payer awareness of this side of our work."

Grains update

(Source: Home Grown Cereals Authority)

The latest world supply and demand estimates released by the International Grains Council put world wheat production down 7m tonnes at 644m tonnes (677m tonnes 09-10) due to drought in the Black Sea region (Russia down 6m tonnes).

World wheat demand is up 2m tonnes on the July report at 657m tonnes (648m tonnes 09-10) due to increasing livestock numbers in Russia.

The effect of the higher demand and lower production is to lower world wheat ending stocks by 8m tonnes on the July estimate to 184m tonnes (197m tonnes 09-10), giving a stocks-to-use ratio of 28 percent (30 percent 09-10).

Export demand previously met by the Black Sea region continues to switch to the European Union and North America.

Latest data estimates United States 10-11 exports at their highest level since 07-08. Egypt's state buyer last week reported buying 180,000 tonnes of wheat from France and a further 60,000 tonnes from Canada for October delivery.

International futures markets were supported by the tighter global supply and demand balance and also found support from external crude oil and equity markets.

In Europe, Matif wheat gained 10.75 euros a tonne over the week to close at 220.50 euros. Liffe wheat followed higher gaining £2.4 a tonne to £152 a tonne.

The discount of Matif to Liffe wheat now stands at over £30 a tonne (historically £10-£15 a tonne) which makes United Kingdom origin exports competitive in relation to French origins.

The physical market in the United Kingdom has been reacting to harvest supply pressure, with spot delivery for East Anglia feed wheat falling £2.50 a tonne to £146.50 a tonne, and November delivered feed wheat prices falling £3 a tonne to £149 a tonne.

Russia builds new pig units

The Cherkizovo Group, one of Russia's leading integrated meat producers, has started work on two green-field pig farms. Total cost will be around £70m of which about 20 percent will be funded by Cherkizovo and the remainder by bank loans. The sites will house 4,800 sows, using DanBred genetics.

tuesday august 31 2010

Chains not good enough

The French government has been rapped across the knuckles for claiming chains on their own are a suitable manipulable material and are in line with European pig welfare legislation.

"Chains cannot be considered in compliance with the requirements of Directive, as they are not suitable material for investigation," say European Commission inspectors.

Higher wheat prices will stifle demand

World wheat crops are sufficient to meet projected demand but continued uncertainty about the size of the Black Sea harvest will stifle world consumption.

The recent spike in wheat prices has caused projected use of wheat for animal feed to be revised downwards for the European Union and Asia.

But this downturn will be outweighed by increased demand from Russia, which has limited supplies of alternative feed ingredients for its livestock herds.

Overall, steep increases in world wheat export prices have lowered prospects for global trade by 3.4m tonnes.

The sharp fall in Black Sea region exports will see a marked shift in trade flows, with United States exports in particular placed much higher than before, reports the International Grains Council.

But even though bad weather in parts of the European Union, Kazakhstan, Russia, Ukraine and Australia mean world wheat production will be lower than forecast earlier in the year, this will still be the third highest world crop on record.

Top achiever prize

"I am a proud member of PIPR because …"

Completing the sentence above in no more than 20 words is going to win someone a night for two in a London hotel — courtesy of NPA — and the chance to visit the House of Commons for this year's Pfizer Trainee of the Year awards ceremony.

The odds are excellent because only the ten Pig Industry Professional Register members who have collected the most PIPR points over the past three years will be invited to compete.

PIPR has over 400 members already and this top-ten competition is part of a drive to attract more. New members who sign up will receive a year's free subscription to Pig World. Details will be announced here soon.

Bank holiday

The bank holiday passed with very few problems as demand remained fair with some larger processors working five days. Both Tulip and Woodheads kept their contract prices the same. Thames Valley Cambac summary.

How do you compare on key performance indicators?

How do your pigs perform? You can do an instant check by visiting the revamped key performance indicators page on the BPEX website.

Using Agrosoft data, figures are available for indoor breeding herds, outdoor breeding herds, rearing herds 7-35kg, finishing herds 35-110kg and combined rearer-finisher herds 7-110kg.

"Producers have the opportunity to insert their own data alongside the recorded information which can then be downloaded as an Excel file for further analysis and recording," says Agriculture and Horticulture Development Board senior analyst James Park.

"Graphs can be manipulated to choose the preferred key performance indicator and check boxes allow comparisons between the sample average, top third and top 10 percent of producers.

The data will be updated every three months and will show figures covering the latest rolling 12 month period.

Funding for pig health projects

Four pig producer groups will put in pilot applications next month for support for farm projects to improve pig health.

If the applications are successful, it expected all producer clusters in the Yorkshire and Humberside Health and Eastern Pig Health schemes will soon be able to submit funding applications.

Applications must come from local groups of producers who are collaborating to improve pig health, rather than from individuals. Funding is not guaranteed and each application will be assessed separately.

Any items accepted for funding will need to have an expected lifespan of more than five years.
Helen Clarke and Ross Lake at BPEX are available to help producer clusters with their applications.

'Safe And Local Supplier Scheme'

More than 750 buyers from supermarkets, foodservice companies and catering suppliers have now signed up to the "Safe And Local Supplier Scheme", including Waitrose, Asda and Sainsbury.

This gives them access to a database of 341 approved businesses that have met the scheme's standards. This number is expected to grow to around 500 in the next 12 months.

"The Safe And Local Supplier Scheme represents a quick and cost-efficient way for small and micro producers of quality British food to get access to bigger markets in their area, according to Lee Woodger, NFU.

It is a joint venture between the four main trade associations representing the United Kingdom food chain – the NFU, Food and Drink Federation, British Hospitality Association and British Retail Consortium.

It is free for buyers to register and search the directory of suppliers. Producer annual membership is £50 and the first year audit fee is £450.

saturday august 28 2010

European cereals in surplus

European Union cereal production will be 275-277m tonnes this year, according to Brussels.

Once imports and public and private stocks are taken into account, total availability should reach 340m tonnes. This comfortably exceeds the 280m tonnes required for total use.

The European Commission has promised to monitor the market closely, but has no plans to release cereal stocks from public intervention.

Although there have been sharp falls in Black Sea production, it is now clear that United States and European growers have filled the gap.

United States weekly export sales recently hit a 16-year high, according to the London-based intergovernmental organisation, the International Grains Council.

The European Union has also been exporting, with over 720,000 tonnes of wheat going to Egypt this month, along with 200,000 tonnes of wheat and 150,000 tonnes of barley to Jordan.

The European Commission department of agriculture says a clearer picture of the overall market situation will emerge once maize is harvested in October.

Export quotas

Ukrainian exports could be down to 15m tonnes in 2010-11 compared to 21.5m tonnes last year from a total harvest of 46m tonnes.

Ukraine agriculture minister Mykola Prysyazhnyuk says he is "indefinitely" delaying introducing export quotas — but checks on export shipments out of Ukrainian ports in the Black Sea and Avov Sea have been stepped up and some loads have been turned back, so in reality export restrictions are in place.

friday august 27 2010

Traffic Lights

What bank holiday? That was the question being asked in the pig market today. With a number of the major abattoirs slaughtering on Monday the problems encountered on August bank holiday last year were largely avoided when contract and spot pigs kept being rolled and the backlog was not cleared until the end of September with prices suffering as a consequence. Traffic Lights comentary.

Beware the 'Nocton effect'

If you are seeking planning permission for a new pig unit, be aware of the 'Nocton effect'.

It has become apparent that when they see an application for even a modest-size livestock house, local people are worried about the scale of the development, in case it is 'another Nocton'.

The problem is that most of us have no point of reference. We don't know, for example, whether a broiler house for 10,000 birds is small, average or king-size.

In the same way, over 99 percent of the population do not know whether to be worried or relaxed about having a finishing house for 1,000 pigs in their parish.

It is worthwhile therefore giving an indication of scale, in layman's terms, when making an application. This will give comfort to local parish councils when they are sent the details by the district planning authority.

In the case of a 1,000-finisher house, for example, it is worth including in the application that such a development is standard size for a finishing unit and represents no more than a part-time venture for a family farm.

An example of how an understandable lack of knowledge about scale can cause unnecessary concern hit the local media in Lincolnshire this week when South Kelsey parish council voiced concern about an application by Frank Tobin for two finishing houses, each for 980 pigs.

Journalists picked up on the issue because — like South Kelsey parish council — they did not realise the proposed development is modest and won't give rise to much smell or noise, or a huge volume of extra traffic.

There is a lesson here for other applicants. Giving a clue to the scale of a new development maygo some way to reducing local concerns.

Slim pickings

Bank holidays are rarely welcomed within our sector, even though a number of forward-looking processors continue to operate on these days and organise staff holidays differently to compensate.

There was still a clear concern that a consumer dip in demand is expected to coincide with the holiday and buyers were very cautious for numbers. After a battling type of day, we were able to keep the decks cleared – just!

However, there was an underlying feeling that we can expect pressure on our market for some time. The main high street retailers continue to wage war on one another, with talk of even harder-hitting price promotions and set against the threat of higher United Kingdom pigmeat prices, we could see a marked reversal in the recent import/export situation for fresh and frozen pork.

Over Jan–June 2010, our exports for fresh and frozen pork were up 29 percent over the same period in 2009. (This is mainly cull sow meat, not prime fresh pork).

Meanwhile imports of fresh and frozen pork were down 12 percent overall, with Danish imports down 34 percent, but UP by a similar amount from Holland. Can it be pure coincidence that a certain Danish-owned facility over here in the United Kingdom has been keen to expand its United Kingdom supply base, whilst a certain Dutch owned facility hasn't?

With United Kingdom fresh-meat pigs selling themselves on audited provenance and quality, do keep an eye on pig gradings. We are entering the period when back-fats begin climbing to their peak in late October and with the DAPP sample again showing a higher reading than has been recorded for some time, do take nutritional advice.

Improved pig health will add to fat levels, but it is important to maintain our quality differential to European Union pigs, or it takes away one compelling reason to buy British. — Greg Mowbray, Meadow Quality.

Summertime news

BPEX has chosen Christine Hamilton to champion a pork campaign promoting Mediterranean recipes. She has conducted some 15 regional radio interviews to be aired around the bank holiday weekend.

The aim of the campaign is to give consumers recipes that remind them of their recent summer holidays.

A BPEX survey shows many people feel more relaxed when they eat outside partly because it reminds them of being on holiday.

So the BPEX campaign will persuade people to get out in the garden this bank holiday, to make the feeling of summer last a little longer.

Finrone

The Northern Ireland company that makes Finrone buildings has collapsed. Pig farming businesses that were associated with the buildings company, continue to trade.

Vion pioneers healthier mince

Following a successful trial in Netto stores in Germany, Vion is preparing for the nationwide launch of a new mince concept called "Mince+".

The product is minced meat with wheat protein. It contains 30 percent less fat and cholesterol than normal minced meat, but has a similar texture.

Available as both beef and pork mince in 400g packs, 'Mince+' should appeal to Germany's many healthy eaters. The concept is also being pursued by Vion in Holland and Britain.

As one door opens, another closes

Exports of United States pigmeat to Russia have resumed following a concerted effort by producers to reduce antibiotic levels in line with more stringent Russian demands.

It has taken the United States over a year to achieve the standards required by the Russians and during this time it has lost some of its Russian markets to Canadian, German and Dutch exporters.

In reopening its doors to United States pigmeat, Russia will be seeking to ensure stable pork prices as its own producers grapple with higher feed costs.

But as one door opens another closes. Some Brazilian companies may be not be allowed to supply meat to Russia in future following unsatisfactory inspections of Brazilian plants by Russian officials.

Fifth-quarter conference

TV presenter and author T has been confirmed as one of the speakers at the EBLEX, BPEX and FABRA Fifth Quarter conference next month.

Tristram Stuart, who is presenting a television series on minimising food waste next month, will join a line-up of nine other industry experts to speak at a "fifth quarter" conference at the Ramada Warwick Hotel, on 8 September.

"This conference will encompass the whole meat supply chain from farm to fork," said Jean-Pierre Garnier, head of exports for EBLEX and BPEX.

"The use of offal and fifth quarter products is a highly topical issue and of great economic relevance to the United Kingdom meat sector."

Attendance is free for meat industry representatives. For further details and to register email helen.strider@ahdbms.org.uk.

Danes expect stable prices next year

Danish pigmeat prices are expected to be relatively stable next year, according to Danish Agriculture and Food Council chief analyst Karsten Flemin, who predicts only limited fluctuations in international production.

Longer term he expects high cereal prices to cause a fall in pig production. But he does not envisage the introduction of the 2013 partial stalls ban will influence the market significantly.

While production in the United States will fall slightly next year, it will be balanced by a slight rise in production in the European Union as Eastern Europe recovers from last year's decline, he said.

Danish exports to non-European Union would continue to be good, due to favourable exchange rates. Globally he predicted a slight rise in slaughter numbers due solely to a production increase in China.

Farrowing checks made easy

Monitoring sows' progress at farrowing has been made easier with a free tool from BPEX.

The Two-Tonne Sow Farrowing Disc, which goes beside sow pens during farrowing, has three coloured circles, one to mark the time over the course of 12 hours, the second to record how many piglets were born alive at the time they were last checked and the third to mark how many piglets were born dead. Three movable arrows are used to show the sow's latest progress.

"Each time the farrowing sow is checked, the arrows can be quickly adjusted on the disc so that all staff can see exactly how the farrowing is going and decide if or when to intervene," said Lis Ravn, of BPEX.

There is space at the bottom of the disc to write notes, such as use and timing of inducement, interventions or treatments.

The disc can be hung above the farrowing pen on a string with a bulldog clip or attached to the pen side somewhere visible and easily accessible.

• To get a BPEX Farrowing Disc, contact Clancy Smith at kt@bpex.org.uk.

Light up for fertility

As day length shortens, many producers notice a fall in sow productivity, with increased returns to service. It is important, where possible, to provide a 16-hours-light/8-hours-dark pattern and this is best achieved through time clocks rather than relying on stockmen to manually turn lights on and off, says Paul Thompson, veterinary consultant to ACMC Ltd.

Lights need to be of at least 200 lux intensity. Pig producers should ensure that all lights are appropriately placed and that fluorescent tubes and covers are clean for maximum output.

Paul Thompson advises reviewing the previous year's records for patterns of decreased performance so that the number of services can be increased to compensate. This may involve planning additional gilts.

How to make expensive straw go further

With straw prices escalating, Quality Meat Scotland has produced a booklet to help farmers optimise bedding use and consider the range of alternative products available to Scottish livestock producers.

"Some of the tips in the booklet may seem like commonsense but too often simple steps which can produce big benefits are overlooked. For example a lot of straw is wasted because of lack of attention to clearing drain-pipes before stacking straw in the shed," said Ian Pritchard, of Scottish Agricultural College.

"Outside storage is also an issue as square bales have a tendency to absorb more rain water than round bales. The overall effect is that when bales are left outside and open to the elements the absorptive capacity is severely reduced. Wet straw is only 10 percent as effective as a bedding for livestock as dry straw - a lot of wasted money."

The booklet flags up the number of alternative bedding products available in different areas of Scotland, including oilseed rape straw, sawdust and woodchips.

Copies of the booklet can be downloaded from www.qmscotland.co.uk or hard copies are available free of charge by contacting Quality Meat Scotland on 01314 724040.

Mexican tarrif hits United States producers

The United States National Pork Producers Council is lamenting that one of its top export destinations had imposed a 5 percent tariff on most pork sent there.

"Certainly it's going to have some negative effect on producers because we are now going in with that 5 percent tariff, whereas Canadian pork producers and Chilean pork producers, who are competitors in that market, are going in at a zero tariff rate," said council spokesman Dave Warner.

Mexico imposed the tarrif in response to the States suspending a pilot programme that allowed Mexican trucks to travel on United States highways.

For the chop

Vion plans to close its bacon factory in Halifax, transferring the work to Scunthorpe.

Record crop in prospect

Weather conditions are expected to be favorable for maturation of the United States mid-west corn crop over the coming weeks. "If the pattern holds as expected, we could be looking a near-record crop," according to agricultural meteorologist Dale Mohler Mohler.

Starring role for pork

Two short films are in production which will be available on the BPEX Lovepork website, one covering sausage production and the other a pork cutting demonstration.

The overview of sausage production has been done and will be posted in the next few weeks while filming has just finished on the other.

"The first doesn't give recipes but explains the processes behind making a traditional butchers pork sausage," said BPEX butchery development manager Keith Fisher.

"The cutting demonstration starts with a whole side of pork which is taken down to primal, or wholesale, cuts and then finally to cuts consumers would buy from the butcher or supermarket.

"It is highly skilled and ends up with lovely looking cuts of pork which will tempt the consumer."