Mobile Version   Web Version   Add to Safe Sender List   Renew your Subscription to National Hog Farmer From the editors of National Hog Farmer Magazine
National Hog Farmer Weekly Preview
May 23, 2011
 
In this issue:
  Meat and Poultry Stocks Continue to Pile Up
  Dark Clouds Forming Over Corn Crop
  Scrap Proposed GIPSA Rule and Start Over
  Export Coalition Urges Vital Funding Support

MARKET PREVIEW
Meat and Poultry Stocks Continue to Pile Up
USDA's monthly Cold Storage Report, released on Friday, May 20, indicates that stocks of meat and poultry in U.S. freezers continued to rise in April and reached their highest point since October 2009. There were 2.121 billion pounds of total poultry and meat in freezers on April 30, 9.9% more than one year ago and 2.7% more than at the end of March. Figure 1 shows the complete data for meat and poultry. Figure 2 shows monthly freezer inventory data since 2000.

All major species have more frozen inventories now than one year ago, with beef leading the increase on a percentage basis at 19.8%. Chicken stocks are a close second on a percentage increase basis (+18.4%) and the clear leader in tonnage terms being over 115 million pounds higher on this April 30 than last.

Pork inventories fell by 5% during April, an expected occurrence given the late Easter this year. Ham inventories, as expected, declined by 27% during the month, but are still slightly larger than one year ago at 76.7 million pounds. The only significant increase of pork products in freezers during April was for “other pork” category, which grew by 11.5%.

Exports are still a driver of these freezer stocks. The surge in exports to South Korea and Japan in March has subsided somewhat, but business to those countries has not fallen completely out of bed. A good amount of the pork in freezers prior to April was there in preparation for export and, we think it is still an important factor in this year-on-year growth in storage volume. April or May is almost always the high for pork in cold storage as processors draw supplies down as hog numbers decline in the summer months.

FULL ARTICLE

FINANCIAL PREVIEW
Dark Clouds Forming Over Corn Crop
I pose the question since it is again raining outside my office window. This spring reminds me of 2009, when we had a very late start to planting and we were on pins and needles all summer to see whether we would get a good crop. We actually had great yields that year, but the quality of the corn was a significant problem. We are in need of a record crop, but it’s not off to a good start. Time will tell what will happen with this year’s crop.

Many livestock producers are very concerned about the current supply of feed and they have questions about the best approach going forward. There is very little margin for error and considerable anxiety in trying to figure out the best approach to managing the risk.

We work with many producers across the United States. Many have corn coverage until fall, but after that it drops off significantly. Everyone is hoping for an opportunity to buy corn at a lower price.

It's also a good idea to make sure you have some physical ownership of corn going into this fall. Ideally, you would have too much corn on hand going into the fall. I realize this takes capital. As a lender, it's my opinion that having your feed needs covered going into the fall is a good position because supply could be tight. Think of it as insurance – you hope you don’t need it, but you have it just in case.

FULL ARTICLE

LEGISLATIVE PREVIEW
Scrap Proposed GIPSA Rule and Start Over
Over one-third of the members of the U.S. House of Representatives (147 Congressmen) are calling on Secretary of Agriculture Tom Vilsack to withdraw the proposed Grain Inspection and Packers and Stockyards Administration (GIPSA) rule on livestock marketing and issue a new proposed rule once USDA completes its economic analysis. This would allow producers and industry to comment on the analysis and the changes being considered by USDA. The bipartisan letter organized by Congressman Jim Costa (D-CA) and Reid Ribble (R-WI) says, “Withdrawing the June 22, 2010 proposed rule and reproposing a revised rule once the Department completes its economic analysis would allow stakeholders the opportunity they deserve to comment on what we hope will be substantial changes to the proposal more consistent with the intent of Congress outlined in the 2008 Farm Bill.” The letter also reminded the secretary that the administration’s proposal went far beyond congressional intent. “It is troubling that the department appears to be using the rule-making process to accomplish objectives specifically rejected by Congress, and we are confident any such rule will not be looked upon favorably by Congress.” The National Pork Producers Council (NPPC) praised the congressmen who asked that the proposed rule be with drawn. NPPC said, “In writing the GIPSA rule, USDA went well beyond what Congress asked it to do. And the regulation it came up with will cost the U.S. pork industry nearly $400 million a year, limit farmers’ ability to sell animals, dictate the terms of private contracts, make it harder to get farm financing, raise consumer prices and reduce choices, stifle innovation and lead to more vertical integration in the pork industry.”

E. coli in Ground Beef Samples Declines – USDA’s Food Safety and Inspection Service (FSIS) 2010 year-end results of microbiological samples of ground beef products show that E. Coli 0157:H7 is found in less than one-quarter of one percent of ground beef samples, a 72% decline since 2000.

FULL ARTICLE

NEWS FLASH
Export Coalition Urges Vital Funding Support
Members of the Coalition to Promote U.S. Agricultural Exports wrote congressional representatives last week urging strong support for USDA’s export initiatives, including the Market Access Program (MAP) and Foreign Market Development (FMD) Program, when the House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration and related agencies considers the Fiscal Year 2012 Agriculture Appropriations bill.

The letter said: “We strongly urge that MAP be funded at no less than $200 million for FY 2012, as authorized in the 2008 Farm Bill. MAP has been funded annually at this level since FY ’06. In addition, we believe that FMD should be funded at no less than $34.5 million, also as provided in the Farm Bill.”

MAP is administered by USDA’s Foreign Agricultural Service and represents a partnership between non-profit U.S. agricultural trade associations, farmer cooperatives, non-profit state-regional trade groups, small businesses and USDA. The diverse groups share the costs of international marketing and promotional activities such as consumer promotions, market research, trade shows and trade servicing.

FULL ARTICLE

PORK INDUSTRY CALENDAR
June 6-7 – PORK 505 Short course: University of Nebraska, Lincoln, NE. For more information, please contact Deidrea Mabry at 1-800-517-AMSA ext. 12 or dmabry@meatscience.org.

June 8-10, 2011: World Pork Expo, Iowa State Fairgrounds, Des Moines, IA. For more information contact: www.nppc.org.



June 14-17, 2011: 2011 Pork Management Conference, Hilton Nashville, TN. For more information, call the Pork Checkoff Service Center at (800) 456-7675 or log onto www.pork.org.



FULL ARTICLE
advertisement
Newport Laboratories offers ParaSail®, the swine industry's first avirulent live, single-dose vaccine for Haemophilus parasuis. ParaSail is backed by more than five years of research and development. The USDA has approved ParaSail as a 1mL IM product in pigs 21 days of age or over. For more information visit www.parasailprotection.com.


 BLUEPRINT

The April 15, 2011 Blueprint edition of National Hog Farmer offers details on creating stable herd health by developing a herd health profile, provides a review of basic immunology and gives details on how to select the right vaccine. The final article looks at efforts by a consortium of swine disease researchers to understand genetic disease resistance. www.nationalhogfarmer.com.

advertisement
“Each year, NPPC hosts World Pork Expo to share industry advancements that help producers improve profitability as they provide safe, nutritious, affordable pork," says Doug Wolf, NPPC president, Lancaster, Wisc. "Proceeds from this event -- which attracts nearly 20,000 people from countries far and wide -- then are used to develop export opportunities, fighting for U.S. pork producers' right to compete in the world market." Register now


 MAGAZINE HIGHLIGHTS

The May 15 issue of National Hog Farmer features seven new “Masters of the Pork Industry” interviews, an updated listing of U.S. and Canadian pork packing plant capacities, and a preview of the pork industry largest trade show, World Pork Expo, which will be held at the Iowa State Fairgrounds on June 8-10 in Des Moines. Go to www.nationalhogfarmer.com to view the issue.

advertisement

 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.

advertisement
advertisement
Porcitec Online is the new Web based swine management system. Run reports online. More than 100 reports including management lists, performance analysis, charts, benchmarking, growing, feed and financial. Standard reports, or design your own. True database analysis. Also available, Porcitec for Desktop and Mobile.
Learn more at www.agritecsoft.com.

 SUBSCRIBER TOOLS

Change E-mail   Unsubscribe
     
Web Version   Archive
     
advertisement
Newport Laboratories offers ParaSail®, the swine industry’s first avirulent live, single-dose vaccine for Haemophilus parasuis. ParaSail is backed by more than five years of research and development. The USDA has approved ParaSail as a 1mL IM product in pigs 21 days of age or over.
For more information visit www.parasailprotection.com.

About This Newsletter