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National Hog Farmer Weekly Preview
April 18, 2011
 
In this issue:
  Pork Demand Expected to Remain Strong
  Pork Exports Jump Amid Domestic Supply Issues
  Agriculture Cuts in the Budget Deal
  Pork Producers Participate In Annual Legislative Fly-In

MARKET PREVIEW
Pork Demand Expected to Remain Strong
“When will consumers start pushing back against higher retail prices?” This has been a common question in recent months as pork producers see higher hog, cutout and retail prices. “Just how much will consumers pay for a pound of pork before looking for alternatives?” they ask.

It’s a good question, but I don’t think we have seen the limit – yet. Last week’s retail price data support my position. First, we must think about what is driving higher consumer prices. If it is a significant tightening of supplies, then consumer pushback in the form of lower quantities is simply the flip side of the higher prices. In other words, which came first – lower output, thus lower consumption, or higher prices, thus lower consumption?

However, if higher prices are being driven by an increase in consumer-level demand, then it is quite possible that both price and consumption could increase or, at least, that high prices could be accompanied by constant consumption levels. In that case, the consumer is driving the price increase, not the producer. A consumer more willing to pay for a product is the essence of higher demand.

FULL ARTICLE

PORK EXPORT PREVIEW
Pork Exports Jump Amid Domestic Supply Issues
As South Korea, Japan and Russia cope with challenges to their domestic pork supply, U.S. pork exports have risen sharply in 2011.

In Korea, the massive slaughter of livestock caused by the foot-and-mouth disease (FMD) epidemic has dramatically reduced the meat supply across the country and resulted in higher prices. Japan is, of course, dealing with its own supply problems in the aftermath of the March 11 earthquake and tsunami, but growth in the market was already well underway in the January-February pre-crisis period. Meanwhile, in Russia, the spread of African swine fever and high prices for feedstock are keeping pork production flat despite major investments in the industry.

FULL ARTICLE

LEGISLATIVE PREVIEW
Agriculture Cuts in the Budget Deal
The fiscal year (FY) 2011 budget deal cuts $38.5 billion from FY ’10 spending levels, of which $20 billion is from discretionary programs and $17.8 billion is from mandatory programs. Agriculture is funded at $20 billion, $3 billion less than FY ’10 spending levels and $3.2 billion below the administration’s 2011 proposed budget. Cuts for USDA compared to FY ’10 include:

FULL ARTICLE

NEWS FLASH
Pork Producers Participate In Annual Legislative Fly-In
More than 120 pork producers and nine swine veterinarians flew to Washington, DC, for two days last week to attend the National Pork Producers Council’s Legislative Action Conference and to lobby U.S. congressmen on issues of importance to U.S. pork producers.

Pork producers heard from Rep. Mike Conaway (R-TX), who chairs the House Agriculture Committee’s General Farm Commodities and Risk Management Subcommittee; Jim Miller, senior policy adviser for the Senate Budget Committee majority staff; Jose Luis Paz, head of Mexico’s Trade and North American Free Trade Agreement Office and representative of its secretary of the economy in Washington, DC; and Ambassador Ron Kirk with the Office of the U.S. Trade Representative.

Kirk praised the U.S. pork industry for ensuring that the U.S.-Korea Free Trade Agreement was finalized. “We couldn’t have gotten Korea done without you,” he said.

FULL ARTICLE

PORK INDUSTRY CALENDAR
May 5-6, 2011: Animal Agriculture Alliance’s 10th Annual Stakeholders Summit, “United We Eat: Securing Animal Agriculture’s Future,” The Westin Arlington Gateway hotel, Arlington, VA. For more information contact: www.animalagalliance.org/register or (703) 562-5160 or summit@animalagalliance.org.

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.



May 24-26, 2011: Pork 101, hosted by the American Meat Science Association in cooperation with the National Pork Board, Texas A&M University, College Station, TX. For more information contact: Deidrea Mabry, program director, American Meat Science Association, 800-517-2672, ext. 12, dmabry@meatscience.org or www.meatscience.org.



FULL ARTICLE
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 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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Join thousands of your peers for three days of learning, networking, training and fun at the 2011 World Pork Expo. From the world’s largest pork-specific trade show and America’s Best Genetics Alley, to lunch at the Big Grill, it’s all at the Iowa State Fairgrounds, June 8-10. Click here to register.


 MAGAZINE HIGHLIGHTS

"Weight Watchers" is the focus of the March 15 edition of National Hog Farmer. In this issue, pork producers learn that by doing a better job of picking the right market weight, they can add $3-5/pig in revenue. This issue also outlines eight factors to consider when making marketing decisions and how auto-sort systems challenge pigs' eating behavior. Go to www.nationalhogfarmer.com to view the issue.

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