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National Hog Farmer Weekly Preview
October 18, 2010
 
In this issue:
  Pork Exports Trending Toward Second Highest on Record
  Pork Exports, Value Continue Positive Trend
  EPA Approves E15 for Newer Vehicles
  Indiana Senator Objects To GIPSA Marketing Proposal

MARKET PREVIEW
Pork Exports Trending Toward Second Highest on Record
The United States exported 302.2 million pounds carcass weight equivalent of pork in August, 25 million pounds fewer than in July and 0.8% lower than last year (Figure 1). This marks the first back-to-back year-on-year declines since July and August of 2009, but year-to-date pork exports are still up 4.5% from 2009. It now appears very likely that 2010 will be the second-highest export year on record, second only to 2008.

Japan remains the largest customer for U.S. pork, but the gap between Japan and Mexico narrowed significantly in August as exports to Japan have slowed from their record levels of April and June (Figure 2). August shipments to Japan were still 0.7% higher than last year. Year-to-date exports to Japan are 1% higher than last year through August.

Pork exports to Mexico in August were only 5.7% larger than last year, but year-to-date shipments to Mexico are 21.4% larger than last year for the period, primarily due to much better exports in early summer 2010 compared to last year’s H1N1-driven declines. <

FULL ARTICLE

PORK EXPORT PREVIEW
Pork Exports, Value Continue Positive Trend
U.S. pork exports continued an upward trend in August with the volume of total exports (combined muscle cuts and variety meat) increasing 8.6% compared to year-ago levels, while their value jumped 15.7% over August 2009 levels.

For the month, 146,459 metric tons (322.9 million pounds) of American pork valued at $369 million moved into the international markets. This steady trend moved the volume of pork exports for the year up 3% over 2009 to 1,244,338 metric tons (2.7 billion pounds), while the value is up 9% to $3.1 billion.

Mexico and Japan continue to be the leading customers for American pork, with Mexico the volume leader and Japan far and away the top value market.

FULL ARTICLE

LEGISLATIVE PREVIEW
EPA Approves E15 for Newer Vehicles
The Environmental Protection Agency (EPA) announced its approval to use blends of ethanol up to 15% in cars and lightweight trucks for model year 2007 and newer. EPA indicates this represents approximately 65 million cars and about one-third of the domestic fuel used. EPA also indicated that it will make a decision on E15 for model years 2001-2006 later this year, after the Department of Energy completes its testing, which is expected in November. In addition, EPA is proposing E15 pump labeling requirements, including a requirement that the fuel industry specify the ethanol content of gasoline sold to retailers. A quarterly survey of retail stations would be conducted to ensure gas pumps are properly labeled. Secretary of Agriculture Tom Vilsack said, “Today’s announcement from EPA is an important step toward making America more energy independent and creating much-needed jobs in rural America.”

Reaction to the E15 Approval — Reaction by proponents of the higher ethanol blend varied. Growth Energy, which petitioned EPA for E15, called the decision a “historic first step” in cracking the blend wall put in place over 30 years ago. The National Corn Growers Association commented, “We’re disappointed in the very limited scope of this approval, but pleased the EPA has finally taken action to partially approve the waiver request to allow higher blends of ethanol in some motor vehicles. We believe this bifurcation of the approval process, and the labels that are expected to be placed on higher-blend fuel pumps, can lead to general consumer confusion and, therefore, act counter to the original intent.” The American Farm Bureau Federation said, “Ethanol is a clean-burning, home-grown renewable fuel. Increasing the percentage of ethanol in the domestic gasoline supply moves our nation one step closer to greater energy independence. It also promotes job creation in rural America.”

FULL ARTICLE

NEWS FLASH
Indiana Senator Objects To GIPSA Marketing Proposal
Senator Richard Lugar (R-IN) joins a growing chorus of congressional members expressing strong opposition with the U.S. Department of Agriculture (USDA) Grain Inspection, Packers and Stockyards Administration’s (GIPSA) proposed rule dealing with livestock marketing.

Lugar indicates he was recently contacted by agricultural leaders who represent a majority of livestock producers in Indiana who are deeply concerned about the proposed GIPSA rule.

In a letter to USDA Secretary of Agriculture Tom Vilsack last week, Lugar comments:

FULL ARTICLE

PORK INDUSTRY CALENDAR
Oct. 26, 2010: Workforce Development Conference on Socially Responsible Pork Production, Country Inn & Suites, Mankato, MN
for more information contact: Trudy Wastweet, Minnesota Pork Board, (800) 537-7675, trudy@mnpork.com or go to www.mnpork.com/producers.

Nov. 4-5, 2010: : Iowa State University Swine Disease Conference for Swine Practitioners, Scheman Building, Iowa State University, Ames, IA
for more information contact:Julie Kieffer at kiefferj@iastate.edu or(515) 956-3201.



Nov. 11-17, 2010: United States Animal Health Association and American Association of Veterinary Laboratory Diagnosticians Annual Meeting, Minneapolis Hilton Hotel, Minneapolis, MN
for more information contact: www.usaha.org or www.aavld.org.



FULL ARTICLE
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 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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NPPC works diligently to protect and promote the interests of America’s pork producers who in turn provide safe, nutritious pork to domestic and foreign markets, generating thousands of jobs and more than $30 billion of gross national product to the U.S. economy. Click here to see how NPPC is working for you.


 MAGAZINE HIGHLIGHTS

The Sept. 15th edition of National Hog Farmer magazine features a special report, sponsored by Phibro Animal Health, Pork Checkoff and National Hog Farmer, which highlights the 2010 Environmental Stewards award winners. In addition, you will find a special feature explaining oral fluid collection using cotton ropes as a simple, inexpensive disease screening method for various swine diseases. These and additional production-based articles may be found at http://www.nationalhogfarmer.com.

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 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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