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National Hog Farmer Weekly Preview
August 9, 2010
 
In this issue:
  Fewer Hogs Prop Up August Prices
  More Thoughts on How Weaning Age Affects Sow Productivity
  Wholesale Pork Added to Mandatory Price Reporting
  USDA Adds Three Meetings On Animal Disease Traceability

MARKET PREVIEW
Fewer Hogs Prop Up August Prices
The July-August hog price rally was even larger than history suggested it might be – and it may have come to a screeching halt last week. As you can see in Figure 1, USDA’s estimated pork cutout value rose to near record highs. In fact, the weekly average will be the third-highest ever, falling just short of the weeks of Aug. 15 and Aug. 22 in 2008. The cutout value weakened in late-week trading, but it still held at $90.05 on Friday.

This cutout value rally and continued strength in the by-product and variety meat markets have resulted in very good packer margins this summer (see Figure 2). This makes for a pretty good situation when producers and packers can make money at the same time. The drop value as computed by the Livestock Marketing Information Center in Denver has been $18/head or more since last November.

Those margins, combined with continued low slaughter runs, will likely result in cash hog prices remaining relatively strong through August. Last week marked the seventh non-holiday week this year and the fifth of the past eight non-holiday weeks with less than two million head.

FULL ARTICLE

PRODUCTION PREVIEW
More Thoughts on How Weaning Age Affects Sow Productivity
As we continue to analyze the effect of weaning age on sow herd performance, we have three more areas for discussion and review: total born/mated female, born live/mated female and pigs weaned/mated female.

As we review the research literature, the effect of adding one day to weaning age on total pigs born/litter varies. The range is 0.08 to 0.14 pigs/day added. So if you increase weaning age by four days, you could expect to increase total pigs born by 0.32 to 0.56 pigs/litter.

Table 1 features data from the 686 farms representing 1,211,000 females in our data set. We have summarized the data in Table 1 in three areas – total pigs born, pigs born alive, and pigs weaned/litter in the following categories: Top 10%, Top 25%, Top 50%, All Farms, Bottom 50%, and Bottom 25%, based on pigs weaned/mated female/year. All farms in this data are weaning, on average, 20+ pigs/mated female/year.

FULL ARTICLE

LEGISLATIVE PREVIEW
Wholesale Pork Added to Mandatory Price Reporting
The Senate Agriculture Committee unanimously passed legislation to renew mandatory price reporting. The legislation is identical to that passed by the House Agriculture Committee, which renews mandatory price reporting for beef, pork, lamb, and adds dairy products, for five years. The legislation modifies existing law by requiring Mandatory Reporting of Wholesale Pork (MRWP) cuts in order to expand transparency in the pork industry. It also requires USDA to establish within one year an electronic price reporting system for dairy products. The legislation is supported by American Farm Bureau Federation, American Meat Institute, American Sheep Industry Association, National Cattlemen’s Beef Association, National Farmers Union, National Pork Producers Council, National Meat Association and the United States Cattleman’s Association.

Livestock Workshop Plans Updated — The Department of Justice and USDA announced additional details regarding the Aug. 27 workshop at Colorado State University, Ft. Collins, CO, which will focus on competition in the livestock industry. U.S. Attorney General Eric Holder and Secretary of Agriculture Tom Vilsack will address the opening session. There will be public testimony from those attending the workshop. Panels will feature producers, academics, processors, and other industry representatives. This is the fourth in a series of five workshops regarding agricultural competition issues. Anyone interested in attending the workshop is encouraged to pre-register at: www.conferences.colostate.edu/LiveStockWorkshop.

FULL ARTICLE

NEWS FLASH
USDA Adds Three Meetings On Animal Disease Traceability
The U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service plans to hold three additional public meetings on the animal disease traceability framework approach this month, in order to prepare for a USDA regulation to track animals moving interstate.

The sessions follow a Feb. 5, 2010 announcement by Agriculture Secretary Tom Vilsack that USDA will develop a new framework for animal disease traceability requiring states and tribal nations to establish the ability to trace back animals moving interstate to their state of origin.

USDA held an animal disease traceability forum in March 2010 in Kansas City to discuss how to develop the framework and ways to achieve traceability.

FULL ARTICLE

PORK INDUSTRY CALENDAR
Aug. 24, 2010: “Doing Things Right: Farming for the Future,” sponsored by the Coalition to Support Iowa’s Farmers (CSIF), Best Western Starlite Village, Fort Dodge, IA
For more information contact: CSIF at (515) 225-5515 or rcook@supportfarmers.com .

August 30-31, 2010: Joint Strategy Forum on Animal Disease Traceability, Renaissance Denver Hotel, Denver, CO
For more information go to: www.animalagriculture.org or www.usaha.org..

August 31, 2010: 20th Annual Carthage Veterinary Service, Ltd. Swine Conference, Western Illinois University, Macomb, IL
For more information contact: (217) 357-2811 or go to www.hogvet.com.



FULL ARTICLE
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NPPC’s grassroots organization —trains industry stakeholders to tell the story of U.S. pork. As a LEADR you will help lawmakers understand how their decisions affect your business, your family, your community and your ability to provide consumers with safe, affordable and healthy pork. Click here to learn more.


 BLUEPRINT

As positive margins return to pork producers’ ledgers, owners and managers are recounting the hard lessons learned as they redouble efforts to improve risk management skills, measure and manage production variance with greater precision, and produce quality pork in a safe and sustainable manner. At the heart of the 50th edition in the Blueprint series, published April 15th, 2010, is a focus on new and improved pathways to profitability.

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 MAGAZINE HIGHLIGHTS

The July 15 edition of National Hog Farmer features 10 “practical, common sense” new products that found favor with our independent review panel. Four industry experts – a pork producer, a swine veterinarian, a swine nutritionist and an Extension agricultural engineer – reviewed 19 new products nominated and introduced at the 2010 World Pork Expo in Des Moines. To read the full story, go to: http://nationalhogfarmer.com/mag/wpx2010-new-product-tour-0715/.

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According to a head-to-head trial1, LINCOMIX® (lincomycin) is equally as efficacious for ileitis control at 40 g/T as Tylan® is at 100 g/T. That means you’ll spend a whopping 40% less for comparable results. Contact your veterinarian or your Pfizer Animal Health representative to learn more.
1. Data on file, Study Report No. 768-9690-0-CPC-97-002, Pfizer Inc.

 POSTERS

FREE SELECTION GUIDES AND MANAGEMENT POSTERS
National Hog Farmer offers 10 posters targeting key production areas, offering guidance in critical areas such as feet and leg soundness and reproduction traits soundness in replacement gilts. Others include pig anatomy, heat detection, sow condition, etc. All posters are in English. Select posters are translated to Spanish, Chinese and Japanese.

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