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U.S.-Canadian Pork Producers Welcome Some Stability
By Steve Meyer, Paragon Economics, Inc., Des Moines, IA
Canada's Oct. 1 quarterly Hog Statistics report revealed a swine breeding herd that was larger than one year earlier for the first time since April 2005. Canada's herd of 1.3083 million head was 0.1% larger than last year on Oct.1. When combined with the U.S. Sept.1 herd of 5.806 million head, the Canadian figure puts the U.S.-Canada herd at 7.114 million, 0.5% larger than one year ago.
This is the second quarter this year (the other being the March1-April 1 inventories) that the combined herd has been larger than one year ago. The U.S.-Canada herd had been smaller than one year earlier in every quarter since December 2007-January 2008 (Figure 1).
Is this the end of this round of consolidation/reduction for the U.S.-Canada pork industry? We think it is for a couple of reasons. First and foremost, it appears the reductions have, along with increased exports and relatively strong domestic demand, pushed pork and hog prices high enough to generally cover new cost levels. With U.S. lean hogs futures above $85/cwt., carcass, through next October, producers on both sides of the border are looking at profits. We don't think those profits are large enough to get much expansion but, after over six years of herd reduction, Canadian producers are no doubt happy with some stability. U.S. reductions lasted only four years, but stability is welcome here as well.
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South Korean Pork Market Holds Great Potential
By Jim Herlihy, U.S. Meat Export Federation, Denver, CO
While Japan is recognized as the highest value market for U.S. pork and Mexico continues to be the largest volume market, there is no denying the growing importance of South Korea as a destination for our pork exports.
As the U.S. Meat Export Federation (USMEF) prepares to celebrate its 20th anniversary in South Korea on Dec. 1, a look back at exports to this key market shows the progress the U.S. industry has realized over two decades.
Through the first nine months of 2011, the United States captured more than one-third of the imported pork market in Korea in terms of volume and value – more than double that of nearest competitor, Canada. The U.S. share amounted to 153,330 metric tons (338 million pounds) valued at $395.1 million.
The recently passed U.S.-Korea Free Trade Agreement (still pending approval in Korea) is expected to further expand U.S. exports by removing duties on pork – ranging from 22% to 25% on most products – by 2016.
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Supreme Court Hears Non-Ambulatory Livestock Case
By P. Scott Shearer, Bockorny Group, Washington DC
The U.S. Supreme Court heard oral arguments in the case (National Meat Association vs. Harris), which challenges California's 2008 law that requires euthanizing "downed" livestock (cattle, swine, sheep, goats) at federally inspected facilities to keep the meat out of commerce. California's law bars the purchase, sale and butchering of animals that cannot walk and requires slaughterhouses under the threat of fines and jail time to immediately euthanize non-ambulatory animals. The National Meat Association's lawyer and the U.S. Solicitor General on behalf of the USDA argued that California was pre-empting federal law. The Federal Meat Inspection Act says a state can't impose slaughterhouse protections "in addition to or different" from federal requirements.
Record Agriculture Exports in FY '11 — U.S. agricultural exports reached a record high of $137.4 billion for fiscal year 2011, exceeding the previous high by $22.5 billion. The agricultural trade surplus was a record $42.7 billion. China was the largest export market for U.S. agriculture with nearly $20 billion in purchases of soybeans, cotton, tree nuts and hides. Secretary of Agriculture Tom Vilsack said, "Strong export performance means higher incomes for farmers and ranchers, more opportunities for small businesses owners and jobs for folks who package, ship and market agricultural products. Thank you to all of America's farmers, ranchers and producers who continue to make U.S. agriculture a bright spot in our nation's economy."
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NPPC Urges Japan to Join Trans-Pacific Trade Partnership
By Joe Vansickle, Senior Editor
The National Pork Producers Council (NPPC) is encouraged by Japan's announcement Friday that it would like to join the Trans-Pacific Partnership (TPP) multi-lateral trade talks.
The TPP would be a regional trade bloc composed of Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, the United States and Vietnam.
"The U.S. pork industry strongly supports Japan's entry into the TPP, and NPPC urges the United States and the other TPP countries to accede to Japan’s request," says NPPC President Doug Wolf, a Lancaster, WI, pork producer. "Pork producers would gain tremendous market opportunities with Japan as part of the TPP."
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Nov. 15-16: 34th Annual Pork Industry Symposium, Saskatoon Inn, Saskatoon, SK, Canada. For more information contact: www.saskpork.com.
Nov. 17, 2011: Kansas State University Swine Day, KSU Alumni Center, Manhattan, KS. For more information contact: (785) 532-1267 or www.KSUswine.org.
Nov. 17-18, 2011: Employee Management Conference, Sheraton West Des Moines Hotel, West Des Moines, IA. For more information contact: call (800) 456-PORK for registration information or go to www.pork.org.
Dec. 1-2, 2011: National Swine Improvement Federation Annual Meeting, Lincoln, NE. For information contact Jim Schneider at jim.schneider@ars.usda.gov
Dec. 2-3, 2011: International PRRS Symposium, Chicago Marriott Downtown, Chicago, Il. Contact: http://www.prrssymposium.org.
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