Wednesday, May 8, 2024

Vaccines show promise for pigs and producers

Andrew Heck
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Vaccines show promise for pigs and producers

By Andrew Heck

The 2022 Banff Pork Seminar welcomed only about one-quarter of the in-person attendance as in 2020 and in years prior. Full vaccination against COVID-19 was a requirement for those present.

To jab or not to jab: be it due to on-farm herd management practices or public health concerns, the world is looking for ways to prevent antimicrobial resistance and also overcome a global pandemic. For hog farmers, immunization of pigs and people is improving health and welfare one shot at a time.

During the 2022 Banff Pork Seminar, two presentations related to vaccines highlighted the important role they play in pig production: one by grad student Alison Jeffery on an encouraging development related to managing Streptococcus suis and one by veterinarian Cordell Young on how to maximize your farm’s vaccine program.

While these presentations were video-recorded for virtual participants, those fully vaccinated against COVID-19 were able to attend in-person. This requirement underscores the significant – however heavily debated – role that vaccines will likely play in all industries going forward.

Strep suis vaccine development moves ahead

Alison Jeffery presented on her award-winning Strep suis vaccine research, during a breakout session at the 2022 Banff Pork Seminar.

Streptococcus suis is found in most jurisdictions with well-established pig industries. These bacteria include 29 serotypes or variants and are zoonotic, meaning they can be transferred to humans. For pigs, infection affects the upper respiratory tract, and controlling its spread is usually done with antibiotics. Both sick and healthy pigs can be carriers, and in piglets, there is a risk of arthritis, meningitis and sudden death.

To date, vaccines against Strep suis have been ineffective, but research from the University of Montreal, led by Alison Jeffery, has found that applying an autogenous sow vaccination program increases maternal antibody levels in piglets up to five-weeks-old, depending on the serotype.

Autogenous vaccines rely on isolating bacteria from an individual herd, rather mass production for use on all herds. Whereas conventional vaccines are strictly used to help prevent community transmission or reduce the severity of infection, autogenous vaccines can also be use therapeutically, which is a major advantage for producers.

The process involves the recognition of Strep suis clinical signs in a herd, followed by collecting infected tissues for sending to a vaccine development lab. Development takes place rather quickly and is fairly cost-effective, relative to potential losses due to spreading illness.

“The vaccine induced a significant increase of antibody levels against all serotypes in gilts, compared to placebos,” said Jeffery. “Post-mortem sampling and bacteriology are very important to correctly identify the cause of death in field trials and herd health management.”

Post-weaning piglets are most at-risk of Strep suis infection, but previous research suggests that injecting piglets directly with two doses of autogenous vaccine did not have any effect on improving antibody levels, which hypothetically would have provided those individuals with a better chance at staving off infection. Previous studies relied on autogenous vaccines produced by a single company, so Jeffery decided to look elsewhere for her trial. The newly developed test vaccine was administered to one group of gilts, while another group remained unvaccinated. Then, piglets born to both groups were compared for immune response.

The study results are impressive but will require a deeper dive to fully characterize the clinical protective effect during the nursery period.

“The strains used for autogenous vaccines are isolated on the farm where the outbreak is occurring, so some strains could be more pathogenic than others, and that could have a big effect on the success of an autogenous vaccine from one farm to the next,” said Jeffery. “The herd history with Strep suis could also contribute.”

Using antibiotics to treat Strep suis may appear effective at dealing with clinical signs of illness, but in addition to concerns over antimicrobial resistance, this approach makes it is difficult to identify which serotype of Strep suis is in a herd or if the clinical signs belong to a Strep suis strain at all.

“It can be uncomfortable to ask farmers to move from antibiotics to a vaccine program, because they can see it right in front of them – you can see if the animal gets better,” said Jeffery. “But I think, over time, vaccination programs are going to save producers time and money, as antibiotics cost a lot each year, and now with different regulations worldwide, antibiotics may not be an option we can use easily in the coming years.”

Moving away from antibiotics presents challenges and opportunities, but thankfully, a separate presentation at Banff provided some helpful advice.

Optimizing your on-farm vaccine program

Cordell Young presented on a range of issues related to the successful integration of a vaccine program for hog herds, during a breakout session at the 2022 Banff Pork Seminar.

Cordell Young is a partner with Precision Livestock Veterinarians. Young recognizes that vaccine programs are not always cheap, but that their value goes well beyond the price tag.

“Vaccines cost money, unfortunately,” said Young. “They cost probably 40 to 50 per cent of the total veterinary costs for a pig producer in a year. If we’re spending that money, we need to make the most of it, and if we’re not, we’re probably making a bad investment.”

Vaccination offers a wide range of benefits over simple treatment, from total cost to duration of protection, versus the possibility of causing zoonotic disease outbreaks or contributing to antimicrobial resistance and further eroding public trust in the hog sector. That is a lot for any individual producer to consider, but it is vital for the industry to recognize.

And while the benefits are extensive, proper handling and administration of vaccines is important for producers to learn. Improper usage can lead to a host of problems related to animal and human health or could simply render vaccines ineffective, which would equal wasted time, money and effort.

“First of all, start with the right needle. If you go with a half-inch needle into a sow, you’re likely going to inject that vaccine into fat, and it won’t absorb,” said Young. “Alternatively, if you go with an inch-and-a-half needle into a piglet, you are more at risk of breaking the needle and putting the entire industry at risk of political and food safety challenges.”

For vaccines that are ingested through feed or water, other considerations should be made as well.

“These are live vaccines which we cannot use with any other medication or water treatments in the path of those vaccines for 72 hours before or after,” said Young. “They’re great products, and it’s great to be able to put a vaccine through water, but we can kill these bugs. They’re pretty weak bugs in general. Watch the time.”

Freezing is another threat to vaccine stability. They should be stored between two and eight degrees-Celsius – ideally in a refrigerator exclusively dedicated to vaccines – and it is useful to periodically verify the temperature using an infrared laser thermometer. Prior to administering the vaccine, Young suggests letting the product come to ambient temperature overnight, but producers should be careful not to overheat vaccines, as this could cause proteins to become denatured, rendering them ineffective.

Not only correct storage of vaccines, but also vaccine equipment, like syringes, matters. Equipment should be cleaned, dried and covered for optimal performance and to prevent the inadvertent injection of residual harmful bacteria into your herd, which is counterintuitive, but a lot more common than some might assume.

“Bacteria are in these syringes, and we’re seeing resistance,” said Young. “Clearly, just by the fact that they’re there, with syringes containing Class 1 antibiotics, and then we’re injecting that into potentially every pig in a group.”

Every farm is different, and every vaccine program should be tailored to your operation. By closely monitoring your own program, through observation and record-keeping, success should follow.

“Unfortunately, it is a reality that no vaccine will work 100 per cent, providing 100 per cent immunity or protection, and for an unlimited duration of time,” said Young. “However, we want to do everything we can to optimize the response to vaccination to get the most out of our investment.”

COVID-19 vaccines are making meetings possible

A less-familiar sight in recent years: producer meetings in some regions are returning in-person, with COVID-19 protocols in place.

As the industry becomes increasingly eager to move beyond COVID-19 restrictions, the call for re-introducing in-person producer meetings grows louder; however, this has proved challenging, given competing ideas about the situation at hand.

The Government of Alberta’s Restrictions Exemption Program (REP), which was first implemented in September 2021 and removed in February 2022, stipulated three conditions for large-size in-person gatherings: full vaccination status, a privately paid negative test result or a medical exemption. Further to this, some venues chose to uphold stricter measures, as was the case with the Banff Springs Hotel, where the Banff Pork Seminar was held. Only fully vaccinated attendees were permitted, regardless of test results or potential exemptions.

Alberta Pork’s semi-annual meetings, taking place in mid-March, mark the two-year anniversary of the initial introduction of restrictions in the province. This year’s meetings will once again take place in-person across the province, after last year’s semi-annual meetings and the two previous annual general meetings (AGMs) were entirely virtual.

While the COVID-19 pandemic is not over, arriving at an endemic situation – where the virus is still present, but stable in terms of case numbers, and more predictable – is a worthwhile and hopefully achievable goal made possible by eventual widespread immunity. Time will tell, but the longer we live with COVID-19, the greater the push will be to accept vaccination as industry-standard, as everyone – vaccinated or not – loses patience with restrictions.

Vaccines are no miracle cure, but they help

Vaccines are a key component of PigCARE – a pillar of the Canadian Pork Excellence (CPE) program. Thanks to quality assurance, global pork buyers trust that Canadian producers are ‘doing the right thing’ when it comes to animal welfare, biosecurity and food safety.

Whether for pigs or people, vaccines have the ability to save lives. And for producers, money. But they are neither perfect nor magical, which is why biosecurity measures on-farm and safety measures like masking and physical distancing at meetings are still necessary, even if not everyone agrees on their application. Being safe, rather than sorry, is a reasonable approach when minor inconveniences can protect against potentially life-threatening outcomes.

Perhaps nothing else besides vaccines have created more controversy recently, whether that relates to preventing antimicrobial resistance or supporting public health. Regardless of how they are used, or what anyone believes on a personal level, vaccines are likely the future for the Canadian hog industry and the world.

Disease, inflation, climate issues could define 2022

Andrew Heck
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Disease, inflation, climate issues could define 2022

By Bijon Brown

Editor’s note: Bijon Brown is the Production Economist for Alberta Pork. He can be contacted at bijon.brown@albertapork.com.

Brett Stuart’s commodity market commentary was shared live, via video, for in-person and virtual guests at this year’s Banff Pork Seminar.

Human and animal disease, inflation and eco-consciousness all have a role to play when it comes to hog market trends in 2022. Brett Stuart, an analyst with Global AgriTrends, delivered a presentation during the first plenary session of the 2022 Banff Pork Seminar on the hog industry’s economic outlook for this year, highlighting some key challenges and opportunities facing producers.

COVID-19 not going away just yet

COVID-19 continues to be a recurring nightmare. It has brought the global economy to its knees, impeding productivity and the movement of goods and services for more than two years. The latest variant, Omicron, seems to be less lethal but more highly transmissible relative to the other strains of the virus.

“This thing is going to last a lot longer than people think,” said Stuart. “But I expect the severe effects will fade in 2022.”

The lives lost and long-term health complications associated with COVID-19 could have a lingering impact on the domestic labour pool for years and decades to come. Unions have taken advantage of labour shortages to push for higher wages at a time when business revenues have been down. With fewer people showing up to work, the government response in Canada and the U.S. – where Stuart is based – has mostly involved throwing money at the problem.

“It’s the world’s largest macroeconomic experiment. The wildfire is COVID-19, and the fire bomber is the U.S. Congress,” said Stuart. “And it isn’t just the U.S.; economies around the world, and governments, have done the same thing… When does the party end? The party doesn’t end until the money runs out. And there’s a mountain of money.”

Getting low on cash? Print more! It sounds simple, but the COVID-19 financial response is pushing the economy toward inflation, which touches many aspects of the hog industry.

The amount of money circulating in the economy grew significantly during the pandemic. In Canada, money supply grew by almost 30 per cent to roughly $1.3 trillion. This accelerated stimulus was necessary to keep the sputtering economy from stalling in mid-flight. The surge of money supply, combined with low interest rates, generated increased demand, especially in 2020.

What were considered everyday activities pre-pandemic – such as eating out, travelling and attending large-scale events – came to a halt as COVID-19 restrictions were put into place. With consumers looking for ways to keep spending, attention was diverted to home buying, home renovations and other isolated forms of activity. This placed pressure on product and service inventory levels, and with the supply chain on life support, significant bottlenecks were created. Ultimately, high demand and significantly constrained supply had to be resolved by higher prices, generating inflation.

By spring of last year, inflation awoke from its decade-long slumber and has been ballooning ever since. Canadian inflation soared to a 30-year high of 4.8 per cent in December 2021, some 1.8 to 2.3 per cent above the Bank of Canada’s target rate. With inflation this high, many analysts were expecting our central bank to raise interest rates in January 2022.

Instead, rates were kept steady, mainly due to the economic concerns stemming from the spread of Omicron. The Bank of Canada did, however, hint that rates will be increasing in the future, which could be as early as March. For producers with variable interest rates on their debts, it may be a good time to consolidate that debt into a low, fixed rate, as five to seven rate hikes are expected this year alone in Canada and the U.S.

“Interest rate hikes put increased pressure on consumers,” said Stuart. “That’s a BB gun approach to a big problem.”

An interest rate bump is only half of the response to inflation; the other half is getting the economy’s output to increase. This is largely outside of the central bank’s control, but without getting goods moving and people working again, there is a real risk that interest rate increases could trigger another recession, which could result in lower interest rates again.

The general theme of inflation in 2021 held true even for the hog industry, albeit for slightly different reasons. Hog margins eroded toward the second half of the year, due to higher farm input costs. For the livestock sector, much of that is represented by feed costs.

From a global perspective, grain prices could remain somewhat elevated this year, as a drought in Brazil and tensions between Ukraine and Russia intensify. Ukraine, being a significant exporter of corn and wheat, could have grain shipments heavily curtailed as a result of military conflict. This means tighter global supplies and higher grain prices. China’s role in the phenomenon has also become elevated.

“Hog prices in China fell 70 per cent last year. Corn didn’t,” said Stuart. “Until that Chinese corn price breaks, be very careful believing you’re going to get cheap corn this year.”

China has also been stockpiling grain and fertilizer. The country is one of the largest producers of nitrogen and potassium fertilizer but chose to ban exports late last year through to at least June this year. For more than three years, African Swine Fever (ASF) has been stubbornly flaring up and dying down in China, which has caused pig and pork prices and supply to rise and fall out-of-control.

China remains a mystery

With reduced supply but increased demand, curtailing imports does not seem like the logical move. But for China, unique political considerations are always at play.

Internationally, the wild card in the pack is China. China is such a significant player in both the hog and grain markets that its actions can singlehandedly change global prices. Over the past few years, China has used its ability to influence the market by manipulating supply, demand and prices in its favour.

“A Chinese shortage of 18 million tonnes of pork drove them to import a whopping only five million tonnes of pork,” said Stuart. “They could’ve imported much more. In fact, if you watched our markets in 2020, it was like China bought just enough pork off the U.S. and Canadian markets that it did not affect the price. They’re fine going without.”

Throughout 2021, Chinese hog prices were at or below the cost of production, after having been the equivalent of $300 per hog in 2020. Given that plummet in price, rapid liquidation of domestic hogs followed. To help create a bit of breathing room, the Chinese government cut pork import permits, restricting supply and providing some level of price support.

China’s ‘hog hotels’ – ironically, constructed in response to ASF – could well be ideal disease breeding grounds.

“The ASF story in China is far from over,” said Stuart. “I question whether the mega-farm concept really works. I think they’re going to prove that may have been a bad idea. It isn’t just ASF in China; it’s a raft of every swine disease known.”

As China struggles mightily with ASF, the disease continues its march west in Europe as well, infecting more barns in Germany and, most recently, Italy. These outbreaks have effectively taken Germany and Italy out of the export market. As the economic impact of this disease continues to escalate in Europe, Stuart believes government financial support may be required to get the European Union (E.U.) out of this crisis.

“I think the E.U. swine sector is headed for contraction in 2022,” said Stuart. “I think there’s going to be some talk and lobbying for a bailout – there’s going to have to be some government money.”

But when it comes to using cash as a bandage solution for ASF, it begs the question as to how much the industry and governments have learned from this approach to COVID-19. For at least two months prior to the pandemic, we in North America watched the COVID-19 devastation rip through Asia and Europe, but we did nothing proactively to stop it from coming to here. Will this happen with ASF, even if slower?

With ASF now on the doorstep of mainland North America – with cases popping up in the Caribbean – prevention efforts must be increased in an attempt to keep ASF out of Canada and the U.S., specifically. Whether prevention succeeds or fails, the world needs a cure.

ASF preparedness is top priority

VIDO-InterVac has been awarded funding to develop an ASF vaccine, which remains elusive worldwide. For all of the planning to mitigate and manage ASF, vaccine development could be the winning ticket.

A great deal of work has been done on crisis response and the emergency protocols that must be in place if ASF is found in Canada. This includes establishing zoning agreements with trading partners, drafting biocontainment measures to isolate potentially affected farms and developing protocols for the destruction and disposal of pigs. These are all very important, but rather than waiting for the disease to arrive, novel solutions should be sought to address the virus itself.

Many countries around the world have been working on ASF vaccines, but to date, none have been proven effective or safe. In January 2022, the Vaccine and Infectious Disease Organization (VIDO-InterVac) at the University of Saskatchewan received $140,000 in funding for preliminary work related to the development of an ASF vaccine. This is a good start, but it is clear that not enough resources have been dedicated toward staving off this impending crisis that would wipe out the Canadian hog industry.

In August 2021, the Government of Canada established a partnership with Moderna – a leading COVID-19 vaccine developer – to build a state-of-the-art vaccine production facility in Canada. Perhaps a when a suitable ASF vaccine is found, such a facility could be used to quickly ramp up production.

If ASF enters the U.S. wild boar population, it could cost around USD $50 billion to rectify. Even though the Canadian industry is much smaller than the U.S., spending millions to prevent ASF would be way more practical than spending billions to in response to its arrival in our countries. As such, it may be worthwhile for the industry and governments to invest more heavily in vaccine development and treatment option research, rather than risk being stuck with the cost of ASF clean-up.

Methane joins carbon as climate evils

Methane is the latest climate change menace for agriculture, joining carbon dioxide. This year, Alberta and Saskatchewan hog farmers will be punished even more for it, with no other options.

At the beginning of January 2022, the Canadian price on carbon dioxide emissions increased to $50 per tonne, placing further strain on cost of production, as hog barn heating fuels are not exempt from the levy.

A study by Alberta Pork and Sask Pork, conducted nearly a year ago, assessed the carbon tax impact for farmers to be between $1.06 and $1.32 per hog in 2021, growing to between $1.32 and $1.65 per hog in 2022. That is no small amount, considering everything else hammering away at profitability.

The Governments of Alberta and Saskatchewan issued a constitutional challenge to the carbon tax before the Supreme Court of Canada in March 2021, which ultimately failed. In October, the Trudeau government doubled down and confirmed its support for the United Nations’ (UN) ‘Global Methane Pledge,’ which is poised to have significant implications for global agriculture. The plan is to cut methane emissions by 30 per cent below 2020 levels by 2030. This means that producers may be motivated to rethink strategies related to manure management and barn heating, to remain viable.

“The new war on global warming is a war on methane,” said Stuart. “If you go after methane, look who you get to go after: livestock.”

Stuart pointed to the work of researcher and professor Frank Mitloehner of the University of California-Davis as an example of how the story of methane has been distorted or misrepresented when it comes to the impact of livestock on the environment. Mitloehner – a prolific presenter and social media influencer within animal agriculture – published a lengthy podcast in December 2021 covering the issue.

“Globally, there are 560 teragrams of methane produced and 550 teragrams of methane reduced. In other words, there is a significant atmospheric removal of it. What that means is that there’s a process that kills methane. And why nobody reports about it, I don’t know,” said Mitloehner. “This whole climate discussion around livestock is more of an opportunity than a liability.”

The opportunity, according to Mitloehner, is for animal agriculture in the developed world to curb methane output, which could have a significant effect on reducing global temperatures. As an example, in California, dairy farmers can increase their revenue by around 50 per cent by covering their manure lagoons and capturing the renewable biofuel produced, which can be used to power farm machinery and trucks. Here in Canada, it might make sense to encourage the adoption of similarly innovative strategies.

Unfortunately, despite attempts to clarify the narrative, we have seen limitations placed on hog barn expansions in Europe for this very reason. The UN’s pledge is a clear signal that the hog industry needs to be proactive in measuring and reducing methane emissions to remain competitive.

Stuart estimates that, by 2040, the world will be short 23 million tonnes of pork. For producers who are able to withstand the war on methane, victory could mean higher hog prices and more profits spread across fewer global players. It may be an opportunity to get ahead of the pack and be an industry leader.

The horizon is hazy with signs of hope

Although Stuart sees a few short-run challenges to the hog industry, he also sees the light at the end of the tunnel. Business diversification and continued innovation are keys to a robust business model. The aim should be to develop new international markets while satisfying existing international customers and working to grow domestic pork consumption.

For the Canadian and U.S. hog industries, COVID-19, ASF and climate concerns reign supreme as threats this year, but threats are only as powerful as they are allowed to be. By getting ahead of these issues as much as possible, producers and packers can still find signs of hope on the hazy horizon.

Banff 2022 – Editorial

Andrew Heck
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Banff 2022 – Editorial

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

This year’s Banff Pork Seminar was truly like none other, employing an in-person and virtual hybrid model. With the rise of the COVID-19 Omicron variant, a sense of anxiety prompted the seminar’s advisory committee to take a closer look at the logistics of returning to a completely virtual format, weighed against the risks associated with reneging on certain financial commitments.

Fortunately, the organizers were able to stick with their original plan, and the in-person portion was conducted with the health and safety of participants in mind, thanks to the seminar facilitators and Banff Springs staff who did a superb job of ensuring everything was conducted according to protocol.

Pig and pork market outlooks for the coming year are always popular presentations at Banff. This year, Alberta Pork’s Bijon Brown provided his analysis of Brett Stuart’s insights, which cover a broad base of topics like global finance, African Swine Fever (ASF) and climate concerns.

I took it upon myself to cover two less-than-comfortable subjects: public trust and vaccines. They are both massive and complicated in nature, and producers will definitely have competing opinions on the topics – all of which are valid, in my opinion. I respect that and encourage your feedback. Dialogue is the cornerstone of the Banff Pork Seminar, which celebrated its 50th anniversary this year, and I have included a historical look back at the event, the Canadian pork industry and Banff itself.

Vincent ter Beek, editor of Pig Progress, made the long trek from the Netherlands to attend the seminar and deliver the closing plenary session, covering his foray into agriculture. For me, it was an exciting opportunity to meet someone so accomplished and recognized within the industry. I even managed to have a quick chat with him and capture a selfie of us, which is shown on this page. Ter Beek’s presentation is also covered in the public trust piece that I penned.

Treena Hein, one of the Canadian Hog Journal’s long-time dedicated freelance writers, dug into a presentation on Canada’s ASF Executive Management Board (EMB) to ascertain producers’ place within the bigger picture. She also covered a presentation on using alternative feed ingredients and strategies for keeping costs low.

On the side of herd health and management, our partners at Fast Genetics and PIC provided their advice on the best ways to incorporate breeding technologies into your operation and tips on how to use performance variation data to your advantage.

Stewart Skinner, a hog farmer and mental health advocate, provided his response to a presentation on farmer stress, from his own perspective as someone who struggles with depression and anxiety. Healthy coping strategies and looking out for each other remain the most important thing for producers to keep in mind, even beyond farming considerations. Everything else stems from there. The Canadian hog industry is better with you in it, and Skinner proposes that more needs to be done to move past basic awareness of mental health in society toward a more concrete approach to offering – and funding  –specific support mechanisms for farmers across the country.

Share your thoughts on this year’s seminar and this edition of the magazine with me by email at andrew.heck@albertapork.com, and you could see your words appearing in our Spring 2022 edition, in May! Your comments, suggestions and ideas for topics to cover are always appreciated.

U.S. Lean Hog Price – Up, Up, Up

wildfieldadmin
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U.S. Lean Hog Price – Up, Up, Up

Pork Commentary, February 21st, 2022
Jim Long, President-CEO, Genesus Inc.

The reality of the market tells the story.

Iowa – Southern Minnesota Lean Hog Prices
February 16, 202169.71
February 21, 202297.61

Lean hog prices up 28 from a year ago or over $60 per head.

Every lean hog contract from April 22 – April 23 reached new contract highs last Friday as the sharp money in Chicago and beyond catch-up to reality of a hog supply that is significantly lower than the USDA and Chicken Little Economists expected. June leads the way with Friday close 118.675. On November 1st, June was 91.50 – a gain of $60 per head.

Supply of hogs will continue to be cut by what appears to be significant PRRS and PED breaks. We hear it every other day, producers deciding to quit farrowing for a myriad of different reasons: disease, labor shortage, older tired facilities, tired owners, price of corn (for some they have to buy, for others, they can sell), generational turnover. We see nothing happening to increase pig numbers going forward.

Prices week ending Feb 19th, 2022
U.S. Pork Carcass Cut-out$1.15 lb.
U.S. Choice Beef Cut-out$2.67 lb.
U.S. Composite Whole Chicken$1.25 lb.
U.S. Turkey$1.21 – $1.36 lb

We read where Chicken Littles were worried about Pork Cut-outs getting uncompetitive price-wise. Looks like Pork is still very competitive relative to other competitors. Beef is almost 2.5 times Pork. It’s our only Red Meat competitor.

The ones who worry about Pork Cut-out competitiveness should go to the mirror. Maybe if they produced Pork that had a better eating experience they would recognize that consumers vote with their money. Why is Beef 2.5 times the price of Pork? Simple answer. Taste – consumers pay more for that eating experience.

Other Observations

In the United Kingdom, producers continue to have a massive struggle to get hogs slaughtered. There is a huge backlog of pigs. A combination of Brexit and Covid issues has created a huge shortage of labor for packing plants. The UK government has committed to fast track foreign workers, so far the program hasn’t been overly successful.

The combination of lack of slaughter, high feed costs, and lower hog prices has put most producers below cost of production for several months. Reports from the UK indicate that up to 10% of the sow herd is liquidated or in the process. It is a terrible situation for producers, with no short-term solution in sight.

China – New Hope is a major Hog Producer, Feed and Food Company

New Hope has reported 2021 annual swine division results separate from whole company. New Hope is a Public Company with annual 2021 results below.

New Hope 2021 Results

  • 1 million sows
  • 12.930 million pigs marketed
  • Pigs marketed divided by number of sows = 12.93 PSY
  • Financial loss New Hope Swine Division 2021: 10.3 billion RMB ($1.6 billion U.S. Dollars)
  • Loss per sow: $1600
  • Loss per pig marketed: $126.44

We expect not much joy in Mudville. Let’s assume New Hope swine division is indicative of the whole China industry. 42 million sows total reported. Over $60 billion loss total for the year? Loss of over $1 billion per week? Losses continue at this clip, no way there is no major liquidation ongoing.

China’s average market hog price last week 12.37 RMB/kg, significantly below estimated cost of production. We believe China sow herd began liquidating last July, it has continued unabated since then. We expect to see China’s hog marketings begin declining sometime in the 2nd quarter. At that point, there should be a price recovery. The liquidation level will create need for imported Pork in the second half of 2022.

Summary

U.S. lean hog prices continue to increase. How high will they go? We expect them to set record prices. They will get so high to a certain extent it won’t matter. The Chicken Littles have been wrong, they totally missed the devastation of the Covid crisis that has led to large sow liquidation and labor-affected productivity losses. Now high feed prices and huge increases in construction costs are limiting production further. Throw in disease, abracadabra – Less Hogs = High Prices.

We will be at the Illinois Pork Expo this week at the Genesus Booth #528. We will report on the show next week.

Helping piglets survive and thrive

Andrew Heck
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Helping piglets survive and thrive

By Chantal Farmer

Editor’s note: Chantal Farmer is a research scientist at Agriculture and Agri-Food Canada’s Sherbrooke Research and Development Centre. She can be contacted at chantal.farmer@agr.gc.ca.

Modern piglet problems for modern sows

Figure 1: Typical dolphin-like head shape of intra-uterine growth-restricted piglets.

Intra-uterine growth-restricted piglets occur more frequently when litter sizes are large, making piglets more susceptible to death due to overcrowding in utero.

Low birth weights, lack of energy reserves and poor immune protection also leave piglets vulnerable, and this situation has become worse with the current use of hyperprolific sow lines. Assisting newborn and suckling piglets to maximize their survival and growth is essential, given the trend of increasingly larger litters.

Intra-uterine growth-restricted piglets are characterized by their dolphin-like head shape (Figure 1) and their reduced growth rate, resulting ina poorer capacity for ingestion and use of colostrum – a sow’s nutrient-dense milk that is available to piglets only immediately after birth. This is most important considering that the early intake of 250 grams of colostrum is crucial for the survival and growth of piglets.

Various nutritional strategies can be used in gestation and prior to farrowing to help suckling piglets, including supplementary feeding of arginine – an amino acid – in gestation, which may improve nutrient supply to the placenta and increase birthweight. Additionally, feeding a source of n-3 polyunsaturated fatty acids in late gestation – such as fish oils – to stimulate fetal brain development and vigor can decrease the interval between birth and first suckling.

Sow backfat thickness matters

Table 1: Mammary gland composition on day 110 of gestation for gilts fed various amounts of a gestation diet to achieve ‘low’ (12 to 15 millimetres), ‘medium’ (17 to 19 millimetres) or ‘high’ (21 to 26 millimetres) backfat at the end of gestation.

Recent findings have shown that body condition of gilts at the end of gestation must be considered to achieve optimal sow lactation performance (Table 1). A gilt that is too thin (with 12 to 15 millimetres of backfat at the P2 site of the last rib) on day 110 of gestation has less milk-secreting tissue in her udder than a gilt with 17 to 26 millimetres of backfat. This difference was achieved by offering varying amounts of feed throughout gestation (1.30, 1.58 or 1.83 times the maintenance requirements). Body condition is also important for colostrum yield. Sows with moderate body conditions (17 to 23 millimetres of backfat) produced more colostrum (4.0 kilograms versus 3.2 kilograms) compared with fatter sows (more than 23 millimetres of backfat).

Feeding during the transition period – starting on day 108 of gestation – has received quite a bit of attention recently. The amount of energy reserves of sows at the time of farrowing has a great effect on farrowing duration and on the incidence of piglet stillbirths and hypoxia – a state caused by insufficient oxygen levels in body tissues.

Lessons for hog farmers

Sow diet control and managing piglets during farrowing can help reduce mortality.

Maximizing the energy intake of sows prior to farrowing is important. This can be achieved in various ways, such as increasing energy intake (to 33.8 megajoules versus 28.2 megajoules of net energy per day), feeding a readily available energy source, feeding a high-fibre diet to prolong energy uptake via hind-gut fermentation, or feeding sows three times a day. Farrowing duration and stillbirths have been shown to increase if a sow has not eaten in the 3.1 hours prior to farrowing.

Management strategies during farrowing and lactation are also needed to maximize piglet performance. Farrowing supervision and piglet assistance at birth – such as drying, placing close to a teat, providing an extra source of energy to low-birthweight piglets, split-suckling and cross-fostering – will help decrease piglet mortality.

Sows do not produce enough milk to sustain maximal growth of their piglets. A teat that is not suckled in first lactation will produce less milk in second lactation. First-parity sows should have all their teats suckled for the first 48 hours after farrowing to maximize milk yield in the next parity.

There must also be enough teats for all piglets in a litter, but if that is not the case, the use of nurse sows or providing artificial milk can help. Artificial rearing of a whole litter should be used only when piglets cannot be reared normally, since artificially reared piglets will grow slower than sow-fed piglets, taking five more days to reach market weight.

U.S. Hog Market Races Higher

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U.S. Hog Market Races Higher

Pork Commentary, February 14th, 2022
Jim Long, President-CEO, Genesus Inc.

Go figure, less hogs leads to higher prices! For months we suggested lean hog prices would surpass 2021, seems we are on track.

Observations

  • U.S. Pork Cut-outs closed $1.0996 on Friday.
  • Year to date U.S. hog slaughter 10% less. 
    • 2022 =14,846,000 vs
    • 2021=16,494,000.
    • We believe the USDA estimate of 4% less is overestimated. We won’t be surprised to see 8% less ongoing.
  • Iowa – S. Minnesota weight 
    • February 6, 2021 = 288.3 lbs
    • January 29, 2022 = 290.3 lbs
    • February 5, 2022 = 289.1 lbs
    • Current weight at levels that don’t denote back up of hogs.
  • June lean hog futures closed Friday at 112.20, end of October they were 88¢ – a gain of $50 per hog.
  • A real reflection of lack of supply to demand. USDA cash early weans averaged last week $83.47 while 40 lb. feeder pigs $112.10. Kind of what happens when there were four months of under $20 for 40 lb. feeder pigs in 2020. Surest cure to low prices is low prices.
  • Iowa – S Minnesota lean hog price averaged Friday at $90.38. If pork cut-outs can stay near $110.00, as they were Friday, $1.00 lean hogs will be soon.

Less hogs, strong demand, all small pigs and market prices racing higher. No sign of expansion. The latest weekly sow slaughter is 62,000 which doesn’t indicate expansion. Cattle and Poultry prices strong. Pork is good value. 2022 is shaping up for a very good year. An industry damaged by Covid issues and abandoned by the USDA and NPPC on CFAP-1 top-up deserves a good run. It is here.

Other Observations

2021 was not a good year for many large producers in China. Their financial results are a combination of lower hog prices, higher feed costs, and productivity challenges from disease. Below are reported 2021 financial returns of Chinese Public Companies and the number of sows they report.

2021
CompanyYuan/RMBU.S. DollarsNumber of Sows
Tianbang Group-3.75 billion-$590 million380,000
New Hope-9.1 billion-$1.43 billion1.0 million
Wens Group-13.4 billion-$2.11 billion1.1 million
DBN-340 million-$53 million230,000
Tecon-680 million-$107 million120,000
TRS-1.07 billion-$168 million120,000
AoNong-1.18 billion-$185 million360,000
Zhengbang Group-18.9 billion-$2.97 billion1.0 million
 Total$7.613 billion4.2 million

The list of Chinese Public Companies with about 4.2 million sows appears to have had losses in 2021 of $7.613 billion U.S. dollars. Our Farmer Arithmetic equates this to an average loss of $1,812 per sow. Let’s assume this is about 10% of China’s sow herd (inventory reported to be 42 million). Could country-wide this equate to $70 billion? You think there isn’t liquidation of the sow inventory?

Of note, China hog prices still are low and losses continue at this pace. Our premise, financial losses in hog production leads to less hogs. Big financial losses in hog production leads to even fewer hogs. We believe China has been liquidating sows since last July. We expect in quarter 2 to see China hog slaughter numbers begin to drop year over year and prices rise.

Tough Markets Not Only in China

Genus PLC is the owner of PIC. PIC is a major part of Genus plc. PIC is currently the world’s largest Swine Genetic Company. Since September, or over about the last 6 months Genus PLC, which is a listed public company (GNS) on the London Stock Exchange, has seen its shares decline from 6070 GBP ($8230) to 3490 GBP ($4730) last week wiping out 100’s of millions of dollars in market value. It appears the institutional shareholders who have owned a large percentage of shares have decided to cash out.

We won’t surmise why investors are leaving. There is little public news other than some reports of a weak China market and insiders selling shares. Must be tough times for management to explain collapse in value of 100’s of millions of dollars in market cap. Genus Chief Executive compensation 2,075,000 GBP ($2.7 million), shareholders, we expect, want their share value to stop bleeding.

Lean Hog Futures Reach $1.10/lb

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Lean Hog Futures Reach $1.10/lb
Pork Commentary, February 7th, 2022
Jim Long, President-CEO, Genesus Inc.

Last week lean hog futures reached $1.10 lb. Friday, June – July months closed over $1.09 lb. It’s been inevitable that the lean hog price would go higher up 20¢ lb. from the end of October ($42 per head). Reason is fewer hogs than even a year ago.

Our Observations:

Since the 1st of January year to date, U.S. hog slaughter is 11.1% lower. Just over 1.5 million head less.

Iowa – S. Minnesota hog weights

 DateAverage Weight
Week ago1/29/2022290.3 lbs.
Two weeks ago1/22/2022291.5 lbs.
Year ago1/30/2021289.7 lbs.

Year over year hog weights 0.6 lb. heavier. Next to no change. In our opinion, indicates lower hog numbers, not due to hogs being backed up.

Last week the “who’s calling whom” scenario came more into play. Packers were looking for hogs. As hog numbers continue to decline the calling will become more frequent.

Reflection of supply-demand: USDA cash 40 lb. feeder pigs last week $105.00 a year ago $68. No one pays more than they have to. Lots of empty barns chasing pigs to fill them. What do you expect re supply when there are at least 300,000 less sows than peak sow herd? A decrease of 7.5 million pigs of weaned production.

PRRS – PED is rearing its ugly head knocking down supply and increasing demand to fill finishers.

After the Iowa Pork Congress, we traveled through the Midwest. What we observed is not only labor shortages in slaughter plants but the ongoing struggle for labor in swine farms and the implication of this reality. Not enough labor in many sow units is cutting productivity. Too many farms are short labor and this leads to normal productivity functions not getting completed. In nurseries – finishers we observe the same. We expect lack of labor could be cutting production by 2-3% coming from higher mortality in all phases of production and lower farrowing rates. We have knowledge of 5,000 sow units with only 7 employees working. A production disaster.

This lack of labor is also contributing to the lack of new sow units getting built or older ones getting started again.

Let’s compare 3rd quarter PigCHAMP Data from 2010-2019 (prior to Covid) and 2021

PigCHAMP Mean on 280 Farms

 201020192021
Born/Alive/Litter11.6213.1013.41
Farrowing Rate %83.9583.1882.39
Pre-weaning mortality %13.3114.5516.22
Pigs weaned per litter weaned10.2211.3411.65
Sow Death Rate %9.4811.8313.67
Pigs/Weaned/Female year22.9124.5624.51

Our data doesn’t necessarily confirm our belief of lower productivity due to labor. It certainly shows a lack of productivity increase that had been a hallmark of 2010 to 2019. We believe the lack of productivity increase from 2019 to 2021 is the lack of overall labor. Born Alive litter size increased from 2019 to 2021 in line with Genetic progress. Lower farrowing rate and higher pre-weaning mortality are a function of husbandry (labor). Higher sow mortality leads to fewer sows farrowing, cutting farrowing rate. A consequence of Prolapses Is Coming.

Europe 

Prices continue to be terrible for producers. Losses have ranged from $30 – $50 per head the last four months. Cull sow prices have been at record lows for 18 consecutive weeks. Sow liquidation is ongoing. Some Euro regions project a 10% decline of the sow herd. When the dust settles, less pork and price increases like the U.S. is experiencing.

China

We believe one of the consequences of large sow herd liquidation in China will be less corn imports. Last week China canceled 380,000 metric tonnes of corn (14.96 million bushels). China has bought 490 million bushels (this crop year), 137 million has been shipped. The U.S. Corn market expects China to buy the corn, this is propping up current corn prices. Seems China, if they need the corn, not in a hurry to take it, and obvious from last week’s actions, they can cancel. One thing for sure, don’t need corn to feed hogs that don’t exist.

Summary 

U.S. hog price continues to move higher with less hogs coming to market. European and China sow liquidation means at some point in 2022 over 75% of the world’s hog production will be down at the same time – the first time in history for all three major world production zones.

Less hogs always lead to higher prices.

Streptococcus virus threatens Canadian swine

Andrew Heck
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Streptococcus virus threatens Canadian swine

By Jessica Colby

Editor’s note: Jessica Colby is a University of Regina journalism student. She previously worked at the University of Saskatchewan’s Western College of Veterinary Medicine (WCVM). This article is printed with permission from WCVM Today.

University of Saskatchewan scientists are working to discover how to prevent Streptococcus equi subsp. zooepidemicus from establishing itself in swine barns.

Several years ago, no-one in the Canadian pork industry would have been concerned about the potential risk of Streptococcus equi subsp. Zooepidemicus – bacteria that can cause infection in virtually every species, explained Matheus Costa, a swine medicine specialist at the University of Saskatchewan’s Western College of Veterinary Medicine (WCVM).

“Before 2019, if anyone investigating clinical cases found this bacteria in a pig, they would suggest this is just part of its normal biota,” said Costa. “We find it in healthy pigs all the time, so we never worried about it.”

However, that perception shifted in 2019 when S. zooepidemicus began posing a serious health threat to hog herds across Canada and around the world. During that same year, researchers were alerted to S. zooepidemicus outbreaks among pigs in New Zealand and the Netherlands.

“The problem is that it looks like it flares up over and over again,” said Costa. “It just doesn’t go away. Antibiotics will suppress it, but if we take antibiotics out, it comes back again.”

As with other illnesses, some pigs can also carry S. zooepidemicus without displaying clinical signs – a finding that was recently reported by Costa and his research team.

The WCVM research group is now aiming to discover how Canadian hog farmers can prevent this disease from establishing itself in their barns. Costa is also investigating the development of non-antibiotic therapies and prevention strategies to reduce the disease’s severity. 

“Because it’s bacteria, antibiotics are usually the first thing we do. We can suppress disease by treating pigs aggressively,” said Costa.

However, veterinarians need to ensure that they are using the right antibiotic drugs to combat the infection, so they do not induce antimicrobial resistance. Costa said the main challenge is that researchers and veterinarians do not understand enough about the disease, “so we don’t know how to control it beyond antibiotics.”

Costa’s team is trying to determine what will slow the spread of S. zooepidemicus in barns, whether that includes workers washing their boots, testing every animal or depopulating a barn – a drastic option that is costly in terms of time and money.

“Depopulation means all the pigs go through the barn flow, then we empty the barn physically. Pigs are removed, and the entire barn is disinfected. Then we start repopulating,” said Costa. “We’ve done that before, and it doesn’t get rid of the bug, likely because of carrier pigs.”

As with any virus response, judicious use of antimicrobials is important. S. zooepidemicus presents clinical signs indistinguishable from African Swine Fever (ASF), making testing critical to being able to tell the difference.

Another problem with S. zooepidemicus is that its clinical signs are similar to the dangerous and extremely infectious African Swine Fever (ASF) virus that causes high mortality rates. Due to the similarities in presentation, it is impossible to distinguish between S. zooepidemicus and ASF without extensive testing.

“S. zooepidemicus looking like ASF adds another layer of complexity to this, because we’re not just dealing with a new disease,” said Costa. “We need to make sure we don’t have ASF as well, so we’re both trying to rule it out from clinical cases and making sure we understand this new disease.”

S. zooepidemicus usually affects older pigs, and its initial clinical signs include a lack of appetite and lethargy.

“There is an invasion of the whole body – it goes everywhere. Once it has access to the blood, it can essentially attack any organ, and that’s what we see: septicemia,” said Costa. “We see lesions in multiple organs, and that’s where it becomes challenging to differentiate it from ASF, because that’s what the ASF virus does.”

Unless the pigs have what Costa calls “nose-to-nose contact,” there is little chance the disease will be transmitted between the animals. A recent WCVM trial concluded that the bacteria spreads through physical contact.

“We’ve learned that if we have sentinel pigs in the room together with pigs that have S. zooepidemicus, the sentinel pigs never become infected if they don’t have nose-to-nose contact,” said Costa. “They could be close – at one-and-a-half metres apart – but they don’t get it. We’re going to facilitate dealing with the disease as we progress and learn more about it.”

Saskatchewan’s Agriculture Development Fund, Alberta’s Results Driven Agriculture Research (RDAR) and Canada’s Natural Sciences and Engineering Research Council (NSERC) provided funding for this study.

Comparing Polish and Canadian culinary characteristics

Andrew Heck
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Comparing Polish and Canadian culinary characteristics

By Andrew Heck

Warsaw’s modern skyline shows remnants of several periods of development and political control. Like Poland, Canada’s battle for culinary identity and foodservice survival in the COVID-19 crisis has caused some forced adaption to occur.

From kielbasa to perogies, borscht to pickles, many Canadians are familiar with the cursory aspects of Polish cuisine. In fact, a lot of it has become woven into the fabric of quintessentially Canadian cuisine, as a country primarily composed of immigrants and settlers. Many of those immigrants and settlers, over time, brought with them an enduring and endearing passion for pork that persists to this day – in Canada and still in Poland, especially.

Not only the aspects of hardy, cold-weather cooking, but other cultural components come into play, too, when looking at the culinary scenes in Canada and Poland. Beyond the food itself, both industries have also been saddled with challenges related to COVID-19. And, despite the odds, chefs in Canada and Poland alike continue to triumph when it comes to showcasing their countries’ finest dishes.

Polish cuisine’s meaty side

The golonka served at chef Adam Gessler’s Wódka Gessler Na Widelcu, in Warsaw, with a side of boiled potatoes and onion jam.
Dry kabanosy manufactured by Mościbrody Meat Processing Plant

What makes Polish food Polish? A legacy of hardship, combined with curiosity, has shaped traditional Polish dishes, along with adopted ideas and ingredients from abroad.

Some of the more popular Polish meat-based specialties include:

  • Golonka: Pork hocks boiled and then roasted or braised in stock, beer or animal fats – like duck or goose. It is typically served whole – bone in, skin on – but some modern interpretations discard the bone and skin, leaving behind a leaner portion of meat. ‘Golonka’ means ‘knuckle,’ which is another name for the pig’s hock or shin, located beneath the leg and above the foot.
  • Zimne nogi: Chunks of pork and vegetables in an aspic, prepared similar to head cheese, using pigs’ feet. The feet are simmered with carrot, celery and onion until tender, including bay leaf and allspice berries for flavour, diced, then allowed to set in the strained stock from the same pot, relying on the natural gelatin found in the feet to hold everything together. Served cool, as the dish disintegrates when it becomes warm.
  • Kabanosy: Thin, smoked pork sausages seasoned with salt and pepper. Some require refrigeration, while drier varieties may be stored safely at room temperature. They closely resemble and taste like what most Canadians know as ‘pepperoni sticks.’ They are often served cold, as a snack or appetizer, but they can be sliced and mixed into soups and pastas, served warm.
  • Tatarski: Minced beef seasoned with simple herbs and spices, served raw, sometimes with egg or other garnishes. In Canada, the French word ‘tartare’ is more commonly used.
  • Carpaccio: Thinly sliced beef, served raw, often garnished with greens, slivers of cheese, capers and herbs. The name is borrowed directly from Italian. The product is not widely consumed in Canada, but it would be known by the same name.
  • Gęś pieczona: Roasted whole goose, a traditional main course for St. Martin’s Day on November 11. The dish is popular across central Europe, for the same reason. The date also coincides with Poland’s independence day, celebrating the end of occupation by German, Austro-Hungarian and Russian monarchies, as declared in 1918.
  • Pasztet: Known as ‘pâté’ in Canada, borrowed from French. This paste of minced meat, liver and seasonings is a popular sandwich topping, when sliced from a firm loaf. It also appears on its own, served as a soft mousse, in a manner similar to foie gras. Turkey – a bird native to North America – is often used, on account of widespread availability today in Poland.

These and many other forms of farmed and hunted red meat, poultry and seafood can be found in the broad repertoire of Polish protein consumption. For Poles, animal products really are cherished, given the country’s legacy of going without during different periods in its history.

Poland grapples with culinary identity

Chef Robert Sowa spent more than two hours eating and chatting with Canadian and American journalists attending the ‘Meat with European Quality’ study tour, in November 2021, explaining his menu and sharing entertaining stories.

Chef Robert Sowa owns several restaurants in Poland’s capital, Warsaw. He is a cookbook author, former international culinary competitor, former cook for Poland’s men’s national soccer team and current host of a cooking demonstration TV show. In addition to being a mentor for many up-and-coming Polish chefs, he believes in continuous improvement and evolving his menus, which consist of traditional Polish meals with an international touch, served in a unique way.

“I have gone to some famous restaurants abroad, and they give very small portions of food,” said Sowa. “If I am going to a restaurant, I do not want to leave hungry, no matter what.”

Poles are no strangers to large portions of food, which, at one point in time, were a lot harder to come by. When Poland emerged as an independent democracy following the fall of communism, society was turned upside-down in many ways. It is a legacy that some chefs, including Jurek Sobieniak – another kitchen extraordinaire turned TV host – speaks eloquently about.

Trends in other parts of the world – such as transitioning toward ‘flexitarian,’ vegetarian or vegan diets – are generally not looked upon with much enthusiasm in Poland.

Chef Jurek Sobieniak’s over-the-top persona took the form of Polish traditional dress on this particular TV broadcast. He was preparing parsnips, not to form them in the shape of a burger or sausage, but to enjoy as… parsnips.

“I don’t see plant-based alternatives being an issue in Poland,” said Sobieniak. “I like meat and vegetables, but if I am going to have vegetables, I just cook vegetables. No need to copy meat.”

But Poles do also pride themselves on produce, including stone fruits, durable vegetables and foraged fungi. It is a legacy of necessity and geography that exists to this day.

“Poland is an agricultural country, and people know that,” said Sobieniak. “But it has taken us a long time to adjust to the world we live in now, which is one of many choices.”

In Canada, where we have no shortage of choices, the struggle for culinary recognition still exists, and like the Polish food scene, we are sticking to our guns while remaining open-minded about who we are and how to represent ourselves by tapping into our gastronomic instincts.

Poland comes to Canada on the plate

Chef Paul Rogalski’s restaurant in Calgary, Rouge, was named one of the world’s 100 best in 2010.

Chef Paul Rogalski is co-owner of Rouge Restaurant in Calgary, where he was born and raised, but his surname belongs to the village of Rogal in Kalisz County, Poland, from where he has some ancestry. His establishment partners with local food growers and utilizes an on-site garden to create exceptional, handcrafted dishes for customers.

Rogalski’s grandparents were Polish and Ukrainian immigrants to Canada in the 1920s, and it was his grandmother’s cooking that left the greatest impression on his career.

“My grandmother cooked everything from scratch. They had a large farm and used to grow a lot of things themselves,” he said. “When I would visit there, she would harvest the garden and preserve everything for winter for family gatherings. I didn’t understand the influence she had on me until a few years into my career. I had an epiphany, ‘Holy cow! This all because of my grandmother!’”

Rogalski draws on his heritage and Calgary’s increasingly cosmopolitan flair to remain contemporary but also grounded in the classics. His current menu includes starters like wild mushrooms and toast, along with a solid lineup of proteins that would rival any flesh-loving Polish chef’s selection.

“For us at Rouge, it’s important that we use local products,” said Rogalski. “Market fluctuations and COVID-19 disruptions have made that more difficult. We like to purchase directly from farms, but we’ve found ourselves looking at ‘commodity’ product more often now.”

COVID-19’s impact is international

Chef Marcin Sasin has experienced significant impacts to the demands of his hotel kitchen in Warsaw, on account of COVID-19.

Catering for hundreds or thousands of guests in one sitting is no easy task, even when the food is simple, but for chef Marcin Sasin of the Sheraton Grand Warsaw, COVID-19 has made it just that much more difficult.

“Food price inflation and a lack of workers has hurt us,” said Sasin. “We are still catering large events in the hotel, but we are doing it with a much smaller crew, and we are starting to rely more on ‘ghost’ kitchen delivery orders to sustain us.”

Back in Calgary, Chef Rogalski claims not to have raised menu prices in about a decade, but the compositions he creates – especially when it comes to choosing cuts of meat – have become more variable and dependent on input pricing.

“If you can’t charge more, and your margins are slim, you need to lower your supply cost,” he explained.

However, many other Canadian restaurants have not been able to successfully navigate COVID-19’s on-again, off-again restrictions. To that end, industry group Restaurants Canada has been pushing for increased support.

“The fate of Canada’s more than 90,000 restaurants is still uncertain,” said Todd Barclay, President & CEO, Restaurants Canada. “Most have been losing money or barely breaking even since coming out of initial lockdown last year, and at least 10,000 establishments have already closed.”

COVID-19 aside, in Rogalski’s Alberta, other factors have left their mark on foodservice as well.

“The reality for anyone in restaurants in Alberta is this: oil and gas is number one, agriculture is number two and tourism is number three,” said Rogalski. “Numbers two and three need to fortify themselves and work together, since we depend on each other.”

Nowhere to go but up

Pork croquette and clarified borscht, one of seven courses on chef Sowa’s current menu at N31 Restaurant & Bar in Warsaw, where diners will not leave with an empty stomach.

Eating out is still seen, in both Canada and Poland, as a luxury that many would prefer not to do without. COVID-19 has complicated the situation, but there are plenty of talented, motivated and creative cooks chomping at the bit to fulfill this social need, as tastes and business models evolve.

Even as the nature of foodservice changes – favouring new options like online, app-based delivery ordering – there will always be a place for white linens, cellared wines and exquisite meats with a story to tell from farm-to-fork.

COVID-19 is a story unto itself, and in the coming years, the connections between livestock farmers, meat packers, chefs and consumers will continue to change, but what will stay the same is an appreciation for how food has the power to enhance our everyday lives beyond mere sustenance. No historical legacy, pandemic or supply chain roadblock can stop that.

Iowa Pork Congress Report

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Iowa Pork Congress Report

Pork Commentary, January 31st, 2022
Jim Long, President-CEO, Genesus Inc.

Last week was the Iowa Pork Congress in Des Moines, Iowa. This Congress is the largest of the state winter events befitting the state with the most swine in the USA.

Our Observations

As usual, well-organized event, a reflection of the professionalism of the organizers.

We observed fewer attendees than in past years. Probably a reflection of Covid issues and maybe biosecurity concerns related to PRRS and PED. The weather was not a deterrent to travel.

The mood of attendees was optimistic with the hog market having jumped from low 60’s to 80’s since first of January and summer lean hog futures over $1.00.


The current high feed price levels were a major point of discussion. Seems like general attitude is they are expected to stay high for a while.


Not much, if any, discussion about new sow or finisher barns. A builder told us no need for finishers when so many were empty. Construction costs continue to increase building/equipment. For a 5,000 sow farrow to wean unit cost is $3,000 per sow; cost for finishers $400 per head for a 2,400 head barn with no land cost included. We were also told the current value of manure production in a 2,400 head finisher as fertilizer is $50,000 ($6-7 per head value).


Talking to some Packers, they believe the Omicron issue was mostly past through their labor force. Daily slaughter increasing last week as it did confirms this.

Packers we spoke to aren’t seeing any indication of hogs backed up. Iowa / S. Minnesota weights of January 22, 2022, of 291.5 lbs; compared to a year ago of 291.6 lbs., would reflect the same.


There was much discussion of the coming decrease of hogs. Lots of empty finishers, small pig prices of over $70 for an early wean, $100 for a 40 lb. feeder. Much discussion of PED and PRRS knocking down production. Fact is no one knows what hog numbers will be the next few months but certainly all indicating less than a year ago.


Producers told us Packers were calling them looking for hogs. My father used to say “Who’s calling whom.” is a reflection of supply-demand.


Several producers commented they’re, thanks to us, about our push on NPPC to fight for CFAP 1 top-up. We all hope the new leadership at NPPC will begin to fight with more earnestness for the 60,000 producers, they represent.


Some discussion on pork quality, as producers recognize the loss of Pork’s market share, the price of Beef three times Pork, Chicken Breast selling for more than Pork Loin. We understand the National Pork Board is starting some Pork Quality initiatives. We support all producers’ ways to bring more value to Pork. Better tasting Pork is certainly a good place to go.


Seems to be chatter that one of the larger genetic companies is blaming ear-biting, tail biting, slow growth on the Duroc breed. We would suggest they go to a mirror, it’s not the Duroc breed with the issue. Improving has to be more than just a slogan. At Genesus we have the largest registered Duroc herd in the world. We see none of the issues that are being blamed on Durocs.

Summary

Producers optimistic, prices next few months look strong. We see little sign of expansion. Our perspective, lean hog futures currently at range of $1.05 is lower than what hogs will sell for at market time. We expect to see $1.20 plus.

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Canadian Hog Journal

Contact

Andrew Heck
andrew.heck@albertapork.com
(780) 491-3527

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