Saturday, April 20, 2024

Exploring the Ukrainian roots of prairie pork

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By Andrew Heck

The Ukrainian Culture Heritage Village is an open-air museum in east-central Alberta, featuring historical buildings and education opportunities in celebration of the area’s Ukrainian character. Image © Ukrainian Cultural Heritage Village

When Russia invaded Ukraine earlier this year, many people around the world were appalled at the violence and atrocities. In Canada, the prevalence of Ukrainian identity differs from one region of the country to the next, but on some parts of the prairies, it is inescapable – a fundamental part of the cultural fabric.

Mundare is a town of nearly 1,000 people, located about 100 kilometres east of Edmonton – in the heart of ‘Kalyna Country’ – representing a collection of settlements and other heritage sites demonstrating the Ukrainian presence in east-central Alberta.

Among the most recognizable institutions of the area is Stawnichy’s Mundare Sausage – formerly known as ‘Stawnichy’s Meat Processing’ for many years. The company is recognized for offering many delicious meat products and Ukrainian heritage foods, with probably none more famous than the original smoked sausage ring. Served hot or cold, customers can find it at Stawnichy’s deli in Mundare, at their dual deli-and-restaurant space – Uncle Ed’s Restaurant and Mundare Sausage House – in Edmonton and at many grocery locations across the province. You might even come across it being sold for a minor hockey team fundraiser!

Small-town butcher shops are often held in high esteem by those who frequent them – family, friends and neighbours of those business owners. Stawnichy’s takes that a step farther, penetrating urban markets that have little to no association with Mundare, the town. Thanks to years of hard work and dedication to high quality, Stawnichy’s reputation today precedes it.

A little company with a big reach

Like many farm-based families, the Stawnichys have a large family tree, including company founder Ed Stawnichy. This has allowed the company to remain in the family’s hands and original location, while also expanding across the province.

Ed Stawnichy began processing meat products on the family farm, starting in 1959. Since then, four generations of his family have been involved in the operation, including Ed’s grandson, Kyler Zeleny, who plays a key role in directing the business.

“My gido [grandfather] always had core values for our company,” said Zeleny. “My baba [grandmother] still works in the shop six days a week, not because she needs the paycheque, but because she loves it.”

Zeleny grew up on a farm outside of Mundare and spent plenty of time at the shop over the years. Eventually, he left to pursue higher education, including a PhD, but has since returned to his rural roots.

“I started working in the shop as a teenager, but even when I was younger, it was a bit like the local daycare for us. At one point or another, we’ve had probably two dozen family members working in this company.”

For Zeleny, the success of Stawnichy’s is closely tied to Ukrainian identity and mentality.

“Early on, everyone here was Ukrainian. Those pioneers had the same instincts as ‘hustle culture’ today: you keep moving, you never put all your eggs in one basket, and you remain grateful.”

Diversification has always been an important strategy for Stawnichy’s to maintain its business.

“We keep our food simple and authentic, but we’re always trying to modernize where it makes sense. In the end, it’s still hearty, filling, homemade, family-style food. We’re looking at adding additional Ukrainian products to our lineup in addition to new non-Ukrainian products.”

Still, the sausage reigns supreme! Over six decades, millions of sausage rings have been smoked. If straightened, each ring measures about two feet in length, which means Stawnichy’s has smoked enough sausage to stretch all the way between Mundare and Kyiv, and then halfway back again. That would seem true-to-form for Ukrainians, whose idea of hospitality typically includes very generous portions of food.

“We’re privileged to have what we have. We’re truly fortunate.”

Modern times, timeless products

Stawnichy’s products are shown here at a grocery story in downtown Edmonton, prominently positioned in a meat department cooler.

Stawnichy’s does not have its own hog slaughter capacity, but the company does try to source its pork as locally as possible. Often, that means from abattoirs within Alberta but also from other parts of western Canada, when necessary.

“It’s difficult, because there aren’t as many suppliers out there as we would like,” said Zeleny. “I think we need better funding and opportunities for smaller facilities. That provides more options for producers and provides better food security for consumers.”

Stawnichy’s facility in Mundare is the site where virtually all of the company’s products are processed. The facility is part of the provincially inspected system, which means the company is unable to market products outside of Alberta; however, entering the federal system has crossed Zeleny’s mind.

“It’s possible within five or 10 years we would consider it. But I wonder, are we happy with our size? Do we need to get bigger? Growth upon growth isn’t something I believe in. It’s just not who we are.”

As time goes on, Stawnichy’s proliferation of the retail market continues to expand, with more than 190 stores in the province carrying their products. They recently underwent a rebranding of all their packaging, and they are considering the possibility of opening a new deli and restaurant in south Edmonton, to complement their northside location.

“COVID-19 changed things for sure. We had to close our restaurant in accordance with public health restrictions, and our fundraising efforts for local sports teams took a major hit. Like all businesses, we faced higher costs and reduced supplies, which has made it difficult.”

Unmotivated by the prospect of exponential growth and wealth for the family, Stawnichy’s makes a point of hiring local workers, but recently, two refugees from Ukraine were brought on board to work in meat cutting.

“We like to think we’re an integral part of our community and for those who choose to live here. We think small-town life is important. When two Ukrainians approached us not long ago, however, we hired them on the spot. It was a no-brainer.”

In addition to hiring Ukrainians, Stawnichy’s has pledged more than $10,000 directly in support of Ukraine, while also supporting the local community on an ongoing basis through the Edward E. Stawnichy Foundation, which provides scholarships to area high school students, along with funding other charitable initiatives for local residents.

“We’re happy to feed people and offer a product that has a lot of quality. We’ve been doing the same thing for more than 60 years, and we’re not cutting any corners.”

Mundare is monumental

Alberta is sometimes called ‘Canada’s Texas,’ affectionately or otherwise. In the case of monuments, the province certainly lives up to the creed of ‘everything is bigger.’

Just down the road from Mundare is Vegreville – a considerably larger town known for being home to the world’s largest ‘pysanka’ (Ukrainian Easter egg), made from aluminum tiles, constructed in 1975. You may recall seeing it on the front cover of the Spring 2022 edition of the Canadian Hog Journal, published this past May.

Not to be outdone, in 2001, Mundare erected an oversized fibreglass ring of ‘kovbasa’ (the cold-smoked sausage that made Stawnichy’s a household name). A third addition to the visible Ukrainian presence in the region includes a giant fibreglass perogy in the nearby town of Glendon, built in 1993. While these roadside attractions may seem like gimmicks, they are casual reminders that those communities still feel a loving connection to Ukraine.

“This is the mecca of Ukrainian culture outside of Ukraine,” said Zeleny. “The culture is still represented in the local arts, institutions, street signs, businesses, you name it. The cultural complexion has changed somewhat over the years, but the community still remains very Ukrainian.”

On the grounds of the Alberta Legislature in Edmonton, a copper statue commemorates the arrival of Ukrainian settlers in the province, in 1891, and on the grounds of the Saskatchewan Legislature in Regina, another statue serves as a reminder of the Holodomor: the intentional starvation of more than three million Ukrainians in the Soviet Union, between 1932 and 1933.

Clearly, in good times and bad, feast and famine are inevitable defining features of being Ukrainian, and the connection extends from all over Canada all the way back to the homeland.

Food unites us all

Whether eating in or taking out, Uncle Ed’s in Edmonton is home to some of the city’s best Ukrainian fare. Good food is central to many things Ukrainian and Canadian.

In a 2010 interview with Slate magazine, Anthony Bourdain – the late chef, travel writer and TV host – said, “Food is everything we are. It’s an extension of nationalist feeling, ethnic feeling, your personal history, your province, your region, your tribe, your grandma. It’s inseparable from those from the get-go.”

Companies like Stawnichy’s are more than just businesses – they are deeply embedded within their communities and cherished by those they serve. For Ukrainian-Canadians, ‘traditional’ fare like sausage, perogies, cabbage rolls and other staple items not only fill bellies but also cause hearts to swell with pride. When the invasion of Ukraine took place, those hearts – whether in Ukraine or in Canada – began burning with passion.

“With everything that’s happened in our world in the past two years, another catastrophe is not what anyone needs,” said Zeleny. “We just want to help be a part of the solution.”

Summer 2022 – Editorial

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The Summer 2022 edition of the Canadian Hog Journal is here!

Last month, I attended Alberta Pork Congress in Red Deer. It was a blast seeing so many people from across the western Canadian industry back in-person. As we head into the remainder of the year, I am itching to get out to other parts of Alberta and Canada to learn more about where our sector is headed.

Much has been published so far in this magazine about rising feed costs, but what about fertilizer? Your fields can benefit from manure applied with some simple strategies in mind and the right support. Alberta Pork’s Bijon Brown spoke with an agronomist to learn more.

Small-scale producers are an under-served demographic in the hog industry. While these farms represent only a fraction of all hogs on-farm, these producers matter. Find out how they are being increasingly engaged to promote awareness and understanding of key issues that affect the industry.

Antimicrobial use is a hot topic. Both within and outside of agriculture, experts worldwide are becoming concerned that farmers are causing antimicrobial resistance, which has implications for animal and human health. For the past half-decade, Alberta Pork and Precision Veterinary Services have been benchmarking usage in the province, and the results are in!

A novel study by Prairie Swine Centre is providing insight into the welfare of weaners in transport. Like antimicrobial use, animal handling subjects are being met with closer public scrutiny, over time. Veterinarian Lexie Reed provides her report.

The Canadian Meat Council (CMC) is celebrating its centennial! Representing the red meat processing sector, CMC advocates for improved domestic and global access to Canadian product. Just as packers need producers, the entire value chain needs consumers, and buyer confidence is a big part of that.

Growing up in Edmonton, ‘Mundare Sausage’ was practically a household name. With Ukrainian-Canadian roots, the Stawnichy family has been producing deli products in Alberta for six decades. As Russia’s war in Ukraine continues unabated, I wanted to celebrate this respected business, which, to me, embodies the resilient Ukrainian spirit within a Canadian context, and it further demonstrates how the hog industry has a much bigger impact than you might expect.

My older daughter (and first child) just turned four-years-old. She was born mere days after I started working with Alberta Pork, in 2018, so her birthday will forever be a reminder of that work anniversary for me. The photo on this page was taken during her party in our backyard, in suburban Edmonton. Like her dad, she’s a big fan of tacos. Pulled pork ‘carnitas’ were served for the crowd, of course!

Want to see your words on our pages? Give me a shout at andrew.heck@albertapork.com or find the Canadian Hog Journal on Facebook and Twitter (@HogJournal) to like, share and comment on our digital content. The more you engage with our posts, the farther our messages go! The ongoing support of our readers and advertisers means everything, and visibility is the key to that success.

Pork Commentary – July 11th, 2022

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This week we spoke at the National Pork Industry Conference (NPIC) being held in Wisconsin. The talk was on a World Market update.

World Markets

•       Our Premise – The three major hog producing areas in the world USA, China, Europe are all cutting production at the same time. This has never happened before. 

Feed Prices

•       Feed Prices have pushed cost of production to record levels all over the world. Some relief in sight.

Contract HighsNow
CornDecember$7.66$6.07
WheatJuly$12.84$8.31
SoybeansSeptember$16.06$14.16

•       Spain 370 Euros/ton or over $10.40 a bushel, was $11.60 a bushel

•       China 3128 RMB = $12.50 a bushel, was $13.70 a bushel

Europe 

December 1
20202021# downPercentage
Breeding Pigs11,41511,004– 411– 3%
Total Pigs145,877141,516– 4,321– 3%

Europe Pork decline 5% Q1 – was 7% lower in March

Germany

•       1.48 million sows May 2022

•       Germany has declined 6.2% since December 1 (-100,000) down to 1.48 million. Down over 200,000 in the last 18 months.

•       High feed prices

•       Loss of exports due to ASF

•       New animal welfare regulations 

•       12% less pork in Q1 vs. a year ago

Spain

•       Largest producer in Europe

•       Business model – contracting unlike rest of Europe it has been the only country in Europe to expand in the past two years

•       Last ten weeks slaughter has declined year over year

•       Has the highest price on record – just over cost of production

Netherlands

•       Livestock industry under huge pressure for nitrogen pollution

•       $27 billion USD budgeted to radically reduce livestock production through farmer buyouts – voluntary to start with

Sow herd (1,000 head)
201420192021
1,1061,047910

•       Huge protests underway – some estimates sow herd will be cut by 30% -300,000 sows. Less hogs coming 

China 

•       Sow liquidation began last July – 10 months later is March-April.

China Average Hog Prices
Price per lb.35 lb. Feeder Pigs
Low was March 1885¢ lb.$59.60
Week of July 7$1.38 lb.$103.29

•       The only reason the price increased is because of less pigs. China just had its 1998.

June 1 USDA Hogs and Pigs Report
 (1,000 head)
 202020212022
Kept for Breeding6,2366,2206,168
Market71,03866,93366,356
Pigs per Litter Dec.-May11.0010.9510.97
Sows Farrowing Actual Dec-May6,3295,9645,904
June-November6,4256,0986,025

Why less Hogs?

•       Financial losses during Covid crisis

•       High feed costs

•       Difficulty to get labor 

•       High building costs – $4,000 sow farrow to wean

•       Breakeven?

•       Generational change 

USA – Demand 

•       Chicken production lower year over year with prices now $1.60 lb. a year ago $1.05 lb.

•       Beef cow liquidation and lack of Heifer retention at record combined levels. USDA projecting almost 2 billion lbs. less Beef in 2023 then 2022 (-7%). Equal to about 4 weeks of hog production.

•       Inflation – we don’t think it will cut U.S. Pork demand – consumers will cut out other items. Beef $2.60 cut-outs – Pork $1.08 cut-outs.

Fake Meat 

Beyond Meat stock (Nasdaq: BYND)

•     234.90 High in 2019

•     27.17 Last week

Market capitalization – down $15 billion from peak 

Down -$1.74 billion since January 1, 2022

Taste does matter

Gene-Edited Foods 

•       Survey by Iowa State of 2,000 U.S. residents 

•       Quote “Around 60% of the women in the survey said they would be unwilling to eat and purposely avoid gene-edited food.

Our Concern – Gene Edited Foods

•       We support technology but we need to have customers for our Pork. 

•       I.E Paylean legal product – one customer China says no. Now no Paylean. What happens when one customer says no to Gene-Edited?

Pork Exports 

•       Challenge of Euro to U.S. dollar

•       A year ago, 1.18 Euros to $1 USD – Now 1.03 Euros to $1

•       This makes U.S. pork less competitive in World Markets at an almost 15% change 

•       Year to date exports down -24%

•       Thank god for Mexico as its up 11% and the leading export country

•       China starts up most U.S. plants approved unlike Spain and Canada

Summary

•       Our premise is China, Europe and the USA the major hog producing areas with 75% of the world’s production all down at same time, probably first time in history.

•       U.S. hog prices in our opinion be at minimum the same as this past 12 months with significant upside as global pork supply craters.

Jim Long President & CEO of Genesus gives a presentation on World Markets
Spencer Long of Genesus gives a presentation on the Genesus Jersey Red Duroc
Genesus hosted reception at the 2022 NPIC
2022 NPIC opening night dinner
2022 NPIC 

USDA June 1 Hogs and Pigs Report – Fewer is Better

The USDA released its June 1 Hogs and Pigs Report last week. Our observations:

June 1
 (1,000 head)
 202020212022
Kept for Breeding6,2366,2206,168
Market71,03866,93366,356
Pigs per Litter Dec.-May11.0010.9510.97
Sows Farrowing Actual Dec-May6,3295,9645,904
June-November6,4256,0986,025

Pretty simple to see. Less sows, less market hogs, no improvement in litter size, less sows farrowing and to farrow. NO increase in production. 

June 1 Market Hogs in inventory down 4.7 million head from 2020 or about 200,000 head less a week to market next 6 months. There will be no challenge to slaughter capacity anytime soon.

With 4.7 million less pigs in inventory no wonder there are so many nurseries and finishers empty or under capacity. This is driving demand for small pigs to meet shackle commitments and help ensure fertilizer needs from manure. Currently hog manure is valued at $15-20 per head as fertilizer. What once was considered a liability is now evolving into a real asset.

Our position is that lean hogs for the next 12 months will track at minimum to last 12 months with upside. Our premise. Less sows in place. There will be no more U.S. hogs. U.S. Beef supply declining up to 2 billion lbs. next year. Pork exports will have a greater pull. Next 12 months both Europe and China will have significantly less pork production. Europe will have less to export. China will import. All factors that at a minimum will keep U.S. hog prices tracking to last 12 months. But! We expect the greater pull of pork will push prices higher than we have had in the last 12 months.

Germany 

Preliminary results from Germany’s Federal Statistics office indicates the sow liquidation in Germany continues on unabated. As of May 3, Germany had decreased from November 3, 2021 (6 months) 6.2% in its sow herd. The sow herd had decreased 9.8% since May 3, a year ago. In the last 18 months Germany’s sow herd had declined from 1.695 million to 1.480 million, a decline of over 200,000. A big number and reflection of the economic pressures of producing pigs under the cost of production triggered by ASF complications, high feed prices and new animal welfare regulations. At this point we believe Germany’s liquidation is still ongoing as pig prices continue under the cost of production.

Germany was once the largest producer in Europe. Now that is Spain. In 2015 Germany had 1.923 million sows. Now 1.480 million and still declining. Germany was once a big exporter has little pork to export in future when you consider their production compared to domestic consumption.

Feed

Stating the obvious grain is in free fall, corn dropped over 60¢ a bushel last week. Wheat declined in the $1.00 bushel range.

·      Corn December contract high $7.66 bushel – last Friday close $6.07 = decline $1.59 bushel.

·      Wheat July contract high $12.84 bushel – last Friday close $8.31 = decline $4.53 bushel.

·      Soybeans September contract high – last Friday close $14.16 = decline $1.90 bushel.

Lower feed costs are needed to have sustainable hog profitability. Not there yet but trendline is leading to “surest cure to high prices is high prices.”

China 

We have been writing since last fall that China was liquidating at massive level due to industry losses of over a $1 billion a week. We also wrote the only truth will be hog price as other data is quite suspect. Since mid-March China’s average hog price has gone up every week.

 RMB/kgU.S. Dollar lb./liveweight
March 1811.9885¢
June 2417.96$1.21
July 720.52$1.38

A huge jump in price last week of 17¢ lb. on a 270 lb. hog is $46 per head. Since mid-March an increase of $143 per head (270 lb. hog). The industry has gone from losses of about $100 per head to profits of about $50. The hogs going to market now are from September breeding’s. China’s sow herd has gotten smaller every month since then. China hog price will continue to increase. In the not-too-distant future China will be stepping into world markets for importing pork.

Summary 

U.S. has less hogs year over year. Europe has fewer hogs. China has fewer hogs. We are in unprecedented territory as the three major hog producing areas in the world are cutting production all at the same time for the first time in history. Prices have significant upside to where they are today in all areas in the coming months.

Woodlands Farm Tour

Recently Jordan Craig Service and Sales Representative for Genesus in Manitoba did a walk-through Woodlands video farm tour. Woodlands has been a Genesus commercial customer for 20+ years and uses Genesus Jersey Red Duroc sire bred to Genesus F1 dam. Woodlands was the first herd in North America to get 30+ PMSY. The video takes you through all of the Woodlands unit and shows pigs from start to finish. The presentation also highlights the data and results in Woodlands has as a Genesus customer.

Genesus – Woodlands Farm Tour link:

Pork Commentary – June 27, 2022 

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Jim Long President-CEO Genesus Inc.
Random Observations 

Last week the U.S. Federal government filed a brief to the U.S. Supreme Court against California’s Proposition 12 a law to ban Pork from pigs that don’t meet California’s production standards. This is good news for Pork producers in our opinion. The Solicitor General of the U.S. now stands with Pork producers against California legislation. Our bet is now Prop 12 has better chance to lose in a conservative Supreme Court.

Harvest has begun in Southern Ukraine, currently wheat-barley $80 a tonne = approximately $2.60 a bushel. We expect there will be great effort to move grain to higher price markets.

U.S. Beef Cow and Heifer Slaughter
 January-May
 20212022
Heifers4,059.644,171.7
Cows1,394.911,611.2
Total5,454.555,782.9

Year to date 328,000 more Cows and Heifers to slaughter compared to a year ago. The U.S. is projecting 1.9 billion lbs. less Beef to be produced in 2023 then 2022. Certainly, would be supportive to Beef and Pork prices.

There certainly seems to be price pressure on grains and oilseeds.

 Contract HighLast Friday closeDecrease
Corn bushel – December$7.66$6.74-92¢ 
Soybean meal – October$440$389-$51
Wheat bushel – September$12.85$9.36-$3.49
Canola bushel – November$11.21$8.70-$2.51

No doubt there has been a decrease from contract highs. Lower feed prices certainly would help hog profits. We believe in most areas of the world hog production is decreasing. This will certainly cut need for ingredients in feed.

U.S. Sow Slaughter
Year to date January-May
20212022
1,333.611,261.7

A decrease year to date 72,000.

Sow herd according to USDA on March 1 was 6.098 million, a year before 6.215 million. A difference of 117,000. With a lower sow inventory, you would expect less sows being slaughtered. Let’s assume 50% animal replacement = 117,000 x 50% = 60,000 or expect 5,000 less sows slaughtered per month. January-May 5 months x 5,000 = 25,000. Our thoughts are the U.S. breeding herd is not moving significantly either up or down when we look at current sow slaughter, relative to breeding herd size and record sow mortality. Dead sows don’t get to sow slaughter.

Last week Spain the largest swine producing country in Europe reached record hog prices for this century. 1.63 Euros/kg up from a low of 1.02 Euros/kg in January (77.97¢ lb. – 52.70¢ lb. liveweight). One of the reasons prices are stronger is lower hog numbers. Prior to Easter weekly hog numbers exceeded year before. Since Easter most weeks have been lower year over year. Financial losses always end up cutting hog production. Ongoing sow liquidation throughout Europe driven by losses from record feed prices continue to cut hog numbers and push ho prices ever higher.

We have been writing for months that China was having a massive sow liquidation due to unprecedented financial losses. We also have written the truth will be in the price of pigs.

The Market Low was Week of March 18th
 National Hogs AverageFeeder 15 kg
 RMB/kgU.S./lb.RMBU.S.
March 18th11.9885¢377$59.60
June 24th17.96$1.21675$101.1

Certainly, price of hogs and feeders have increased. Market hogs up 36¢ lb. (270 lbs. x 36¢ = $97 per head). Feeder pigs up $41 per head. No one pays more than they have to. Price is up because of fewer hogs.

We expect China’s hog price will continue to increase as fewer and fewer hogs come to market due to sow herd liquidation. In the not-too-distant future we expect the higher China hog price will lead to increase pork imports supporting EU and U.S. hog prices further.

Summary

Less hogs in North America, Europe and China will continue to push hog prices. It’s unprecedented that the three major hog producing areas of the world (75% of world’s production) all have decreased output at the same time.

Confused? With this Market

Confused?
With this Market

We have to admit we are confused by the hog market. Cash hogs Iowa-Minnesota last Friday averaged $121.17 per lb. A reflection of what packers will pay for hogs not on contract. For lack of a better way to sum it, the National Average Lean Hog, made up of mostly contract hogs, was $1.08 lb. A big difference.

Other Observations

U.S. Pork Cut-outs closed Friday at $114.61 lb., a big jump. In the past week, almost 10¢ lb. We were with a packer last week that called the market “inverted.” They were paying in the $1.20 lb. range for Cash Hogs and Pork Cut-outs that day were $1.08. Don’t need a calculator to know that they were losing money on each cash hog they bought. This story for us is packers are still ready to pay up to get hogs in order to keep employees busy and meet sales order requirements. Hogs are short.

In the past few years having a packer contract based on percentage of the Pork Cut-out was considered excellent if it was in the 90%+ range. The last while, this formula has lagged, i.e., Pork Cut-outs mid-last week $1.08 lb. x 92% = 99¢ lb. Cash Hogs were $1.20 lb. $40 per head difference. Now Cut-outs Friday at $114.61 lb. x 92% = $1.05 lb., still below most of other market formulas. Our observation; Cut-out contracts recently have helped packers keep average cost of daily kills lower.

July Lean Hog Futures have ranged in the last three months from a high of 126.150 to a low of 97.375. A range of over $60 per head. They closed Friday at $1.11 lb. in the middle of the range. We find it hard to fathom any fundamental reason there should be such volatile gyrations. We think increasingly that Lean Hog Futures driven by hedge funds and algorithms is disconnected from the commercial hog market. When Lean Hog Futures were diving in May, the hog price held steady. We are wondering if the lean hog futures connection to the real hog market has about the same connection as show pigs to the commercial production industry. Answer of latter – not much, if any.

Most of the world’s hog production doesn’t have access to Lean Hog Futures. We aren’t sure if we are better off with the way it seems to be driven today by players with no plan or intention to produce or own pigs. As my late friend Doug Maus called Chicago, “Las Vegas with no rules.” On the flip side, lots of people like in Las Vegas, think they can beat the house.

Before and after the World Pork Expo my son Spencer and I did some traveling. In the course of our trip, we went through Michigan, Indiana, Iowa, Missouri, Kansas, Nebraska, South Dakota, Minnesota, and Wisconsin. We saw lots of corn-soybean fields. Observation: crop is in, looks good, moisture almost everywhere with heat. Current crop with moisture-heat is in good shape so far. Our industry is getting crushed with high feed costs. A big crop could certainly be helpful.

Prices last Friday

  • Beef Cut-outs Choice $2.66 lb.
  • Pork Cut-outs $1.14 lb.

Beef Cut-outs 2.3x higher than pork cut-outs. Why? Consumers will pay more for beef, obviously. It has demand. Consumers (our customers) prefer the taste of the red meat from beef, obviously. If we could move to half at $1.33 lb. it would add $40 to a carcass.

Our position has been for many years that the push to produce “The Other White Meat” was a terrible marketing plan. Beef always sold for more money and it’s red. We mistakenly as an industry chased the cheaper chicken (white meat). We then made pork too lean destroying the taste experience and once where loins and hams (half the carcass) led cut-out values they now languish, a true sign of consumers’ sentiments on these products. Also, in the quest to produce ever leaner hogs we all can see the increase and record sow mortality and wean to finish mortality as ever leaner low appetite pigs lose their robustness.

Cut-out – Friday 
Carcass Cut-out value114.61
Primal Rib192.92
Primal Belly173.11
Primal Butt145.63
Primal Loin102.86
Primal Ham98.76

Ribs, Belly, and Butt all have marbling and taste. Consumers are voting with their money what they want. Loins and Hams are obviously not meeting consumer wants and languish in price (50% of carcass). If we could produce loins and hams that could get the price of Butts, an increase of 40¢ lb. x 100 lbs. of a carcass = $40 per head increase in carcass value. Real Money. To us, it makes sense to start with consumer demand, and its obvious they will pay more for a better eating experience (ribs, bellies, butts). To us, as an industry, we should be producing what the consumer is looking for. It’s what all good marketing companies do. Produce to demand.

Summary 

The U.S. Hog Price and Pork Cut-outs showing further strength. U.S. hogs are trading over $1.20 lb. We expect the sow liquidation in Europe and China will lead to the three major pork-producing blocks in the world having less production in the coming months. This will lead to higher hog prices than future markets indicate.

Exploring genetic selection for feed efficiency

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By Argenis Rodas-Gonzalez

Editor’s note: Argenis Rodas-Gonzalez is an associate professor in the Department of Animal Science at the University of Manitoba. He can be contacted at argenis.rodasgonzalez@umanitoba.ca.

Topigs Norsvin Canada boars at a Manitoba facility being prepared for manure sampling to measure feed efficiency.

Profitable, cost-effective swine production requires healthy animals, higher performance, increased feed efficiency and making the best use of available nutrients.

Feed efficiency can be described as the biological basis of how pigs consume and metabolize feed to grow and produce an edible product. This is a complex trait based on a pig’s ability to store and use nutrients from feed, such as fats, carbohydrates, and proteins. Skeletal muscle plays a significant role in using and storing those nutrients. Most of the efforts to improve feed efficiency have been focused on formulating balanced diets through investigating nutrient composition and genetic selection for carcass leanness.

Feed efficiency can be expressed as a feed conversion ratio (FCR), which is defined as feed intake over body weight gain. A low-FCR value means animals consume less feed per unit of gained body weight, making them highly efficient; in contrast, a high-FCR value means animals consume more feed per unit of gained body weight, making them less efficient. There are other expressions of feed efficiency, such as residual feed intake and lean feed conversion, but these will depend on additional knowledge required for informed decision-making.

Feed efficiency factors vary

Manure samples were analyzed to determine nutrient digestibility.

A common approach to improve feed efficiency is to supply appropriate nutrient requirements for animals; however, the improvement could be limited and depends on the ingredient composition of the feed, which can vary in nutrient digestibility.

On the other hand, purebred pigs are selected for feed efficiency at the nucleus level, and genetic selection to improve feed uptake continues to be a challenge. At Topigs Norsvin, selecting genetics based on the estimated breeding values for a given feed conversion ratio (EBV-FCR) has proven to be an effective strategy to maximize feed efficiency and improve growth performance and carcass composition. However, it is not clear if nutrient digestibility in pigs could be altered by genetic selection for feed efficiency.

Studies have shown that diverse feed efficiency groups resulted in lines of pigs showing both differences in growth performance and digestibility of nutrients, which happens in the gut.

For example, in Yorkshire breeding lines fed with high-energy diets, the digestibility of dry matter, total energy, absorption of nitrogen and other nutrients like fibre are similar in both high- and low-efficiency groups, based on residual feed intake (RFI) values. But when these groups are fed with low-energy diets, the high-efficiency group has greater digestibility of dry matter, total energy, nitrogen and fibre compared to the low-efficiency group; however, low-energy diets reduce growth performance of both efficiency groups.

In contrast, other studies have reported no differences in digestibility among divergent feed efficiency pigs, despite high-efficiency pigs presenting a faster growth and leaner carcasses. Thus, based on some contradictory results, uncertainty exists with selection for feed efficiency and its effect on growth performance, nutrient digestibility and carcass characteristics, especially within Large White lines.

Overcoming the feed efficiency dilemma

CT scanning was used to determine in-vivo carcass traits.

My team at the University of Manitoba includes researchers Ethendhar Rajendiran, Gustavo Mejicanos, Laura Beens and Ankita Saikia from the Department of Animal Science. We are working in collaboration with Topigs Norsvin Canada to respond to certain feed efficiency questions that have stumped breeders.

Our project is funded by Topigs Norsvin Canada, the Canadian Agricultural Partnership and the Ag Action Manitoba Research and Innovation program. The investigation is planning to evaluate 2,000 genotyped boars from two Large White dam and sire lines separated into low- and high-feed-efficiency groups based on EBV-FCR values within the breeding line.

This study investigates the variation in growth performance, apparent total tract nutrient digestibility (ATTD) and in-vivo carcass traits in finisher boars selected for low or high feed efficiency. Digestibility is determined by testing manure nutrient levels using an indigestible marker, while in-vivo carcass traits refer to the lean yield of the whole pig, determined using Computer Tomography (CT) scanning. Boars are selected at 23 weeks of age based on their feed efficiency value and fed a mixed corn-soybean meal-based diet using feeding stations that record individual feed intake and body weights.

Preliminary findings indicate that the sire line was heavier, with a final weight of more than 9.69 kilograms, growing more rapidly and more efficiently than the dam line, gaining more than 130.69 grams per day with a feed conversion ratio of less than 190 grams of feed consumed to gain one kilogram of body weight.

In addition, sire line presented greater loin depth, at more than 6.92 millimetres, and thinner fat depth, at less than 2.60 millimetres. However, there was no significant difference in nutrient digestibility between lines. On the other hand, regardless of the genetic line, and compared to the low-efficiency pigs, the high-efficiency pigs consumed less feed, at less than 284.97 grams per day, were more efficient, with a feed conversion ratio of less than 260 grams of feed consumed to gain one kilogram of carcass weight, had thinner fat depth at less than 3.05 millimetres, along with greater loin depth more than 6.92 millimetres compared to low-efficiency pigs.

The high-efficiency pigs were better able to digest crude protein and tended to show higher phosphorus and calcium digestibility compared to low-efficiency pigs. Based on the estimated protein deposition and the average feed intake one week before sampling, the amount of digestible lysine content met the requirements for the average pig. Nevertheless, high-efficiency pigs had a reduced feed intake, implying that they might have experienced a shortage of lysine in the diet. Thus, high-efficiency pigs offer favourable growth performance, heavier and leaner carcasses. However, it is still unclear whether the improved digestibility of crude protein was due to a lysine shortage or differences in genetic merit for feed efficiency.

Forward thinking for progressing efficiency

The University of Manitoba and Topigs Norsvin are also exploring the pig gut microbiome to identify the favorable microorganisms that contribute to feed digestibility, along with determining feed digestibility by using near infrared spectroscopy, and in-vivo leanness by CT scan. The findings may allow us to better understand the relationship between the gut microbiome, nutrient digestibility and genetics, leading to the improved and more effective selection of pigs for breeding programs.

World Pork Expo Report

Last week we attended the World Pork Expo held at the Iowa State Fairgrounds in Des Moines, Iowa. Our observations:

The World Pork Expo this year appeared to us to have more visitors than the year before. Main reason, less Covid related issues including the ability of people from other countries i.e., Canada, Mexico, South America, Europe, and parts of Asia able to travel again. We would observe less people than prior to canceled World Pork Expo’s one year for African Swine Fever fears and another year due to Covid. One other reason for less people is the show pigs are not at World Pork Expo anymore. The removal of thousands of show pigs from the premises is an obvious benefit to limiting the chance of swine disease exposure.

The attitude of producers we talked to was continuous optimism. Hog price is good but feed price is driving cost of production to levels that limit current and future profitability.

Driving through Iowa – Illinois before and after the Expo, it appears to us corn – soybeans look good, with most areas having lots of moisture and warm temperatures. Good scenario for corn-soybean development.

One producer spoke to us about a feeder pig broker saying that the number of empty finishers was because producers won’t buy pigs because of feed costs. Our reply is all pigs are in barns, none are being put in fields. If barns are empty, it means not enough pigs around to fill them. No one has barns to sit empty as a business model.

Most of any new sow barn construction discussion is being driven by Vet – Management clinics looking to manage and sell products to sow barn ownership. Very few new sow barns are being built or contemplated by other type of production models. New sow barns (farrow to wean) now at $4,000 per sow. Our observation is that the U.S. sow herd is not moving higher.

For every new sow unit there is someone exiting with the same number of sows. We also do not believe there has ever been expansion where there have been high feed prices.

To reiterate, high feed prices are hanging over the industry. This cannot be explained enough.

At World Pork Expo, Genesus announced the new World Mega ProducerTM list. There were interesting conversations, mostly centered on the huge drop of over 1 million sows of three major China World Mega ProducersTM. Producers historically don’t decrease swine production capacity when they are making money. China has been losing big money.

2022 World Mega Producer TM List 

We have discussed many times our observations that our industry has record sow and wean to finish mortality. In discussions with producers at the Expo, frustrations with this reality were evident. We believe the increase in mortality is caused by genetic companies ignoring the benefit of high appetite and structurally selection as they continue to minimize robustness. We see few other reasons for average sow mortalities almost doubling and wean to finish spiking.

The mortality increases have created opportunities for companies to deal with deadstock. Below is a picture of the massive Biovator Pig Composter. It has been said one person’s adversity is another’s opportunity. We believe best to have pigs that live.

Talking to Packers at the Expo, they are not having a good time. It’s not hard to calculate issue. Hog Price average $1.07, Pork cut-outs $1.09 lb. The Hog Price this close to Pork Price isn’t good positive packer gross margins.

Inflation discussion was not only centered on feed costs but also on fuel costs, labor costs, and interest rates, all factors increasing costs for producers and packers. We need to have more money for our hogs and pork.

We want to thank all those that visited the Genesus exhibit and the producers that stopped to chat and enjoyed the Genesus pork sired by our Jersey Red Duroc. Also, it was nice to hear the thanks for our fight for the CFAP 1 top-up. The millions and millions of dollars promised but not delivered to a contracting swine industry is sad. The same promise re CFAP 1 top-up was made to corn producers and paid in billions. Corn got it paid, and we know what the corn price is. Hog industry contracted in production is a reflection of the economic damage from Covid. It wasn’t fair. Unfortunately, we believe NPPC didn’t fight for producers to get the promised CFAP 1 top-up to producers. That’s their job, and they failed us in our opinion and also the opinion of producers that visited us last week.

The good news is that NPPC executives had a retirement party in Des Moines last week (I wasn’t invited). They leave with a legacy of failing to fight for the millions promised by the government. The even better news is a new NPPC team is being put in place. I do not know Mr. Humphreys, the new CEO of NPPC, but I have been told he has the energy and ability to put NPPC on a path to be a fierce advocate for producers once again. Not one focused on bureaucracy sustainability. Hope spring’s eternal as hog producers. We hope for the NPPC to once again remember their job is to fight for producers each and every day.

Genesus team present at the 2022 World Pork Expo
Inside the Genesus tent at the 2022 World Pork Expo

Pigs fed E. coli antibodies could lead to safer pork

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By Lexie Reed

Editor’s note: Lexie Reed holds a Doctor of Veterinary Medicine from Ontario Veterinary College. She can be contacted at lexiereedvm@gmail.com.

Proper cooking of all meat, including pork, helps prevent foodborne illness. Now, scientists are finding ways to address the problem well before the consumer ever takes a bite.

Pork-associated human illnesses have drawn unfavourable media attention to the swine industry over the years. In 2018, a pork recall was issued by the Canadian Food Inspection Agency (CFIA) in response to an outbreak linked to an Alberta restaurant. The pathogen responsible for the death of one individual and more than 40 cases of illness was Escherichia coli (E. coli) O157:H7.

As few serious E. coli illnesses have been associated with pork products, there was skepticism that contamination from cattle in the abattoir was truly to blame for the outbreak. However, a 2020 study found that O157:H7 bacteria reside within the intestinal tract of pigs, and though risk of E. coli illness from pork products is low, it can have serious consequences.

Fecal contamination of hog carcasses is a serious risk factor for foodborne illness from pork. For these reasons, cooking pork thoroughly is recommended to kill any bacteria that may be present on the meat. Hygienic removal of the intestines post-slaughter, to prevent the spillage of intestinal contents onto the saleable carcass, is another important step.

But what if there was another layer to the pork safety net?

The need for E. coli antibodies

E. coli O157:H7 is known to exist in cattle, often transmitted at feedlots. But for a long time, no-one suspected pigs, too, could be affected.

A 2017 study of provincially licensed abattoirs in Alberta found that 1.8 per cent of carcasses sampled were contaminated with O157:H7, several of which were subtypes of O157:H7 that are of importance to human health. Samples were taken from abattoirs that slaughtered both pigs and cattle and from abattoirs that slaughtered pigs only. No difference in the prevalence of O157:H7 carcass contamination was observed between abattoirs that slaughtered just pigs or pigs and cattle, indicating that O157:H7 contamination of hog carcasses is a result of the pathogen occurring within the pigs themselves.

O157:H7 antibody technology was originally proposed for development in cattle, as O157:H7 contamination is predominantly associated with ruminants. However, the efficacy and safety studies in mice are more applicable to monogastric species, and thus the development in pigs was pursued. Success in monogastric studies may still lead to the development of direct-fed O157:H7 antibodies to cattle.

Developing an E. coli antibody to feed pigs

Nicotiana benthamiana, the plants in which the O157:H7 antibodies are produced, are shown here in a research greenhouse.

Agriculture and Agri-Food Canada (AAFC) research scientists have recently isolated an E. coli antibody that could neutralize O157:H7. The antibody is synthesized within the plant Nicotiana benthamiana and could be delivered as an edible feed material. Once ingested, the antibodies would bind and neutralize O157:H7 present in the gastrointestinal tract.

Rima Menassa is a genomics and biotechnology research scientist at AAFC’s London Research and Development Centre. She conducted the study that found the antibodies to be effective at neutralizing O157:H7 in cell cultures. Presently, Patti Kiser of Western University is conducting a study to determine if the direct-fed antibody can neutralize O157:H7 in mice, which would bring the technology one step closer to proof of concept in livestock.

“If feeding the antibody to mice who already have O157:H7 established in their intestines prevents shedding of the pathogen, then antibody feeding short-term prior to slaughter could be an option in pigs,” said Menassa. “If, however, the antibodies only prevent O157:H7 from colonizing the intestinal tract when it is introduced to naïve mice, then it is more likely that the antibodies would need to be fed from an early age, before significant O157:H7 exposure.”

If successful, the outcome of the study could lead to commercialization of the technology. Preventing E. coli from colonizing the gastrointestinal tract or reducing shedding of the pathogen would reduce the risk of O157:H7 contaminating the carcass at time of processing. Further, this technology could reduce the risk of contaminated manure, which may be spread on crop fields as fertilizer.

The plant used to produce the antibody, Nicotiana benthamiana, is a plant related to tobacco, native to Australia. It is commonly used for molecular biology studies and has been used to produce vaccines and other pharmaceutical products, thanks to its natural ability to express foreign gene sequences.

Although the dose regime has not yet been established, it is unlikely that the amount fed of the plant material would contribute any appreciable nutritional or fibre content. The current study in mice will explore both efficacy and safety of the plant-encapsulated antibodies. The results of this study will also help to establish a timeline for feeding pigs pre-slaughter. This study is a collaboration between AAFC and PlantForm Corp., a start-up plant biotechnology company based in Guelph, Ontario.

Direct-fed antibodies have a future

The development of oral antibody technology for E. coli may have implications for the prevention of other pork-associated infections as time goes on.

Though still in its infancy, direct-fed antibody technology is on the horizon. The commercialization of this technology for O157:H7 could expand to other significant zoonotic pathogenic bacteria in pigs, providing abattoirs with another mechanism to reduce foodborne illness from pork that starts before the pigs even reach the packing plant.

Even beyond a food safety application, this pharmaceutical delivery system could create a new avenue for vaccine and antibody delivery through feed, particularly at a time when barn labour is a significant challenge for many producers.

Whether or not an E. coli O157:H7 antibody for pigs is embraced as a method for preventing foodborne illness from pork, the development of a novel delivery method for antibodies could be a breakthrough product for the swine industry.

Study reveals more about PED in manure

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By Andrew Heck

Newborn piglets are especially vulnerable to PED. The virus can be detected in manure using polymerase chain reaction (PCR) testing, but other transmission risks still exist even when manure is not the culprit for the disease.

When porcine epidemic diarrhea (PED) broke for the first time ever in Alberta, in 2019, the province’s fears of its inevitable spread were confirmed. What was not clear – as in many disease outbreak investigations – is the source of how it arrived on-farm.

“Our disease surveillance program regularly tests for PED, among other viruses of concern,” said Javier Bahamon, Quality Assurance and Production Manager, Alberta Pork. “Before the outbreaks, and since, thousands upon thousands of tests have come back negative, which is a positive sign for our industry.”

Despite surveillance, and despite a lengthy investigation, Alberta’s four PED cases from 2019 remain a minor mystery. Could it have been a contaminated feed ingredient? Poor truck washing? An unintentional lapse in biosecurity? We may never know for sure, but we do know the virus can be present in manure. Is that manure capable of causing the virus to shed in piglets?

With PED flaring up in other parts of Canada, and as farmers turn to spreading manure on their crop fields as a way to offset high fertilizer prices, this question has become important to answer. Thanks to support from Swine Innovation Porc (SIP), Results Driven Agriculture Research (RDAR) and provincial funding partners, researchers at the University of Saskatchewan’s Vaccine and Infectious Disease Organization (VIDO) – led by Qiang Liu and supported by Colette Wheler, Trina Racine and Mingmin Liao – began looking for clues last year, and their findings are now helping to better inform Canada’s PED response.

Simulating barn conditions, for testing

Fecal and clinical scores for the piglets involved in the trial

The concern over manure stems from the idea that piglets are highly exposed to manure in the barn, and some of that is ingested. Additionally, when it comes to applying manure to fields, equipment used in the process can be considered fomites – transmission pathways – for the virus.

To find out if it is possible for piglets to shed PED virus after ingesting contaminated manure, three groups of newborn piglets were fed highly concentrated lagoon materials containing RNA of PED virus – a simplified genetic component – which was collected from infected lagoons by representatives from Alberta Pork and Alberta Agriculture, Forestry and Rural Economic Development. For this specific case study, the lagoon materials were necessarily gathered six-and-a-half months following the initial PED outbreaks in Alberta, which may have impacted results.

Using three commercially available pregnant sows from Prairie Swine Centre in Saskatoon, piglets were farrowed and immediately brought into the study. After being fed the lagoon materials, the piglets were observed for diarrhea and mortality over the course of a week, which could potentially indicate PED infection. For a deeper dive, fecal swabs were collected for daily analysis.

Following the trial, none of the piglets showed any abnormal clinical signs, though there was mild diarrhea observed in a few piglets. Diarrhea consistency trended toward the lower end of fecal scoring – toward “soft, pasty like toothpaste, sticks to swabs” – which would not be the case in the event of PED infection, where diarrhea should be seen at the higher, more severe end.

The mild diarrhea was gone after a couple of days, and the piglets completely recovered. Body weight gains were similar among piglets having diarrhea and piglets without diarrhea, further indicating that the diarrhea was not the result of PED but some other factor. Fecal swabs failed to yield any of the virus RNA at a detectable level as well.

In this specific case study, under the conditions in which the lagoon materials were gathered, the researchers concluded that the exposure of these animals to the infected material failed to produce infectivity or clinical signs of PED in the animals themselves. Other factors, it seems, are likely responsible for Alberta’s cases of PED in 2019.

Study results are positive, with caution

While the study’s supporters are pleased to have gained further insight into PED’s lack of infectivity in manure, with consideration given to the time period in which the study took place after the initial outbreaks, the important take-home message for producers is not to rest on their laurels when it comes to proper practices.

“We are happy with what the study’s findings, as this study provides a reference when dealing with contaminated manure,” said Bahamon. “However, producers are always advised to be vigilant when it comes to using manure from their operations, since there are still so many more unknowns out there, and we do not want to give anyone a false sense of security, especially in places where PED is an active problem.”

Given the limitations of the study, it cannot be absolutely confirmed that PED virus shedding in piglets is impossible when exposed to contaminated manure. Key factors include the length of time following an outbreak and the number of outbreaks in any given geographic area. These must be taken into account when it comes to evaluating the risk of spreading the disease, and a different level of risk may be observed when dealing with certain cases when other concerns come into play.

As the industry’s understanding of PED continues to improve, mitigating risks, the threat posed by PED remains ever-present. With time and further investigation, the hope is that the industry can further adapt to the realities of this virus, for the benefit of healthy hog production.