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National Hog Farmer Weekly Preview
March 21, 2011
 
In this issue:
  Japanese Market Jitters Subside for Now
  FMD Outbreak in South Korea Will Be Felt for Years
  Pork Wins CAFO Victory Over EPA
  USDA Clarifies Statements On Antibiotic Use in Livestock

MARKET PREVIEW
Japanese Market Jitters Subside for Now
Each month, Kiplinger’s Personal Finance Senior Editor Robert Frick writes a column entitled, “Your Mind and Your Money,” in which he delves into the psychology of traders, investors, common schmucks like me, the market, etc. It is almost always an enlightening read in that it usually deals with some aspect of economic behavior that is either mildly or decidedly irrational.

Throwing the word “irrational” into most discussions of economics makes many of us trained in the dismal science begin to wring our hands, break out in cold sweats, and, perhaps, start wondering if Karl Marx could have been correct. It sort of shakes our foundations, if you know what I mean.

Frick’s column this last month begins by citing Ben Graham’s frequent and fond reference to “Mr. Market” in explaining movements of stock prices. In Graham’s example, Mr. Market is your partner who shows up every day and offers to buy your interest in your business or to sell you his. He is the guy who provides opportunity for entry or exit.

FULL ARTICLE

PORK EXPORT PREVIEW
FMD Outbreak in South Korea Will Be Felt for Years
South Korea’s devastating foot-and-mouth disease (FMD) epidemic now shows signs of abating, but the impact of the outbreak on pork supply and demand is expected to be felt for years. With an estimated one-third of the country’s 9.9 million-head swine herd culled and a sharp drop in local pork supplies, the marketplace is struggling to find a new equilibrium.

Imports look to fill a large portion of the supply gap, but sharply higher prices may cause noticeable consumption shifts. In addition, Korean farmers are trying to evaluate longer-term industry competitiveness in the face of new free-trade agreements that will lower the cost of new imports from the United States and Europe. Despite the uncertainty, U.S. pork trade prospects look very favorable throughout the year.

As of mid-March, widespread vaccinations were slowing the FMD outbreak, while hog operators – aided by a number of government subsidies and new tax and investment incentives – are in the process of restocking farms with breeding stock.

The rapid destruction of so much of Korea’s herd is causing worldwide pork market ripples as the full implications of the epidemic become more apparent. In 2010, domestic pork accounted for almost 81% of total Korean consumption. Last year, imports of 290,000 metric tons (319,000 tons) of pork meat – excluding offal and fats – ranked Korea as the fifth-largest pork importer in the world.

FULL ARTICLE

LEGISLATIVE PREVIEW
Pork Wins CAFO Victory Over EPA
In a unanimous decision, the U.S. Court of Appeals for the 5th Circuit in New Orleans ruled that the Environmental Protection Agency (EPA) cannot require livestock operations to obtain Clean Water Act (CWA) permits unless and until they have a discharge of manure into a waterway of the United States. The court said EPA exceeded its authority in requiring Concentrated Animal Feeding Operations (CAFOs) that propose to or might discharge to apply for CWA permits. The National Pork Producers Council (NPPC), American Farm Bureau, National Chicken Council, and other agricultural organizations brought the lawsuit against EPA regarding regulations that were promulgated in 2003 and 2008. NPPC said, “The court recognized a clear limit on EPA’s authority and required the agency to comply with the clean water law.”

FULL ARTICLE

NEWS FLASH
USDA Clarifies Statements On Antibiotic Use in Livestock
The United States Department of Agriculture (USDA) has issued a clarification to a newspaper report regarding recent statements an official made about livestock producers overusing antibiotics leading to antibiotic resistance in humans.

USDA Agricultural Research Service Administrator Edward Knipling testified last week before the House Appropriations Committee’s agriculture subcommittee. In a response to a question, Knipling said his department is conducting research on antibiotic use in livestock and antibiotic resistance. His statements were wrongly interpreted in a March 17 story in the Wall Street Journal. Knipling said while data suggest “in some cases, there are problems and concerns,” they also show “this is not as severe an issue as it might be otherwise portrayed.”

Despite those statements, the Wall Street Journal reported that “hog farmers are overusing antibiotics on their herds and that may be creating antibiotic-resistant bacteria that pose a threat to human health.” The headline on the story said government data support that contention.

FULL ARTICLE

PORK INDUSTRY CALENDAR
March 30 & 31, 2011: London Swine Conference, London Convention Centre, London, Ontario, Canada. Please check our official website www.boarsemen2011.com for further information and don't hesitate to contact us if you should have further questions.

April 11-14, 2011: The 2011 Annual Conference of the National Institute for Animal Agriculture (NIAA) will be held at the Omni San Antonio Hotel in San Antonio, TX. The conference will explore the growing necessity of involving consumers as stakeholders in food production. Topics include the food supply; food security; food safety; animal agriculture’s importance in the ecosystem; and effective ways to communicate with consumer stakeholders. A schedule of events, registration and hotel information is available at the NIAA website: www.animalagriculture.org, or call NIAA at (719) 538-8843 for additional information.



May 22-25, 2011: Alltech’s International Animal Health and Nutrition Industry Symposium, Lexington Convention Center, Lexington, KY. For more information contact: www.alltech.com/symposium.



FULL ARTICLE
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U.S. pork producers must be able to compete in foreign markets without restrictive tariffs or sanitary barriers to trade. NPPC’s mission of gaining and expanding access to markets through free trade agreements is paramount to the continued success of the U.S. pork industry — Click here to learn more.

 BLUEPRINT

The October 15 Blueprint edition of National Hog Farmer provides guidelines for building a sound replacement gilt program, including nutritional considerations to maximize genetic potential and the importance of an effective herd health management program. In addition, the issue offers a special section on screening replacement gilt candidates for skeletal and reproductive soundness. www.nationalhogfarmer.com.

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 MAGAZINE HIGHLIGHTS

"Fine-Tuning Grow-Finish" is the focus of the February 15 edition of National Hog Farmer. Pork producers are ever mindful of the choices between an “optimum” diet vs. “maximum performance” diet. This edition takes a hard look at alternative feed ingredients, least-cost diet formulation, fineness of grind, and various strategies to address high feed costs. Go to www.nationalhogfarmer.com to view the issue.

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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.

 SUBSCRIBER TOOLS

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LEADR — 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.
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