Tuesday, April 16, 2024

Global Market Round-up

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Pork Commentary, September 6th, 2021
Jim Long, President-CEO, Genesus Inc.

China

The hog price in China is 96¢ U.S. lb. (14.2 RMB/kg). Losses continue for China’s pork producers. The Financial Times estimates that publicly owned swine companies have lost over $70 billion U.S. in stock value since February. That’s a massive revaluation.


This past week USDA came out with an estimate that China’s hog production will decline 14% in 2022 caused by ASF, other health issues, and contraction in China’s hog production due to financial losses. 14% is a decrease of about 1.8 million heads a week.


According to China’s Ministry of Agriculture and Rural Affairs (MARA) the cost of raising pigs this March to June was 2800 RMB per kg ($1.58 U.S. liveweight a lb.). The average current selling price is 14.2 RMB kg (96¢ lb.). The loss is 1.32 RMB kg (-64¢ U.S liveweight a lb.). Simple arithmetic; average current loss per head is $160 (250 lb. hog). In the first 6 months of the year, China averaged just under 13 million hogs marketed per week. Farmer Arithmetic; $160 per head loss average, times 13 million head = just over $2 billion U.S. a week loss?


This type of loss will be leading to huge liquidation and obviously ending most if not all construction. The loss level is unprecedented; no wonder reports of pigs dying without feed, bills unpaid, biosecurity being cut, disease increasing. We expect China will be cutting production at levels we can’t comprehend. The USDA projected decrease of 14% is probably not high enough.
China imports from the USA just under 5,000 tonnes of pork in the latest week. One thing this confirms, China is not bringing in much pork.

Europe

We understand the EU/Netherlands governments have a program to pay hog producers to close their farms. We understand the budget is about $500 million. This will lead to fewer hogs in the EU.

30 kg (66 lb.) feeder pigs from Denmark are selling for 200 DKK ($30 U.S). The 52-week average is 326 DKK ($52 U.S.). These current prices are well under the cost of production.

In Germany, the carcass price of hogs is 1.25 Euro/kg or 67¢/lb. U.S. Germany buys millions of feeder pigs from Denmark per year, the current feeder pig price reflects the poor market conditions in Germany. China’s pork imports slow down and ASF in Germany is increasing pork supply in all of the EU and pushing down prices.

USA


U.S. September corn closed Friday at $5.08 a bushel, down for September, being at $6.56 in early May. The $5.08 is the lowest price since early April. We expect to see some areas in the USA to be below $5.00 a bushel very soon. China hasn’t bought significant corn amounts since May. If major liquidation in swine is ongoing in China they won’t need as much corn. USDA projection of 14% decrease in China hog inventory would be about 90 million fewer hogs and a lot less corn needed.

Another Interesting Week 
In the World of Hog Production

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Pork Commentary, August 30th, 2021
Jim Long, President-CEO, Genesus Inc.

Our Observations:

U.S. hog slaughter last week 2,444,000 – a year ago 2,653,000. Down 8% year-over-year. USDA projected 2% year-over-year decline in June 1st USDA Hogs and Pigs Report. U.S. slaughter since the first of July down over 8%.


U.S. hog slaughter down year-over-year as well as slaughter weights; i.e. Iowa – S Minnesota averaging 276.9 lbs. – a year ago 279 lbs. Certainly appears hogs are not backed up. We don’t believe anyone is hanging onto hogs going into the fall with traditionally lower prices.


USDA carcass cut-out closed Friday at $116.59 reflecting continued strong pork demand. Lean Hog Prices National Base Lean Hogs 53-54% $103.47.


Appears to us slaughter hog numbers will continue to be significantly below 2020 for the rest of the year. Even lean hog futures traders have got October hogs over 90¢. The combination of the crush financial debacle of 2020 and PRRS 144 is cutting hog numbers.


We also are wondering if hog numbers are being affected significantly by sow mortality of 17% plus in many large production systems. With mortality at that level, we see a decreased voluntary culling of sows. Sows that in the past would have been culled are kept in production in an attempt to maintain sow inventory. We also expect high sow mortality and involuntary culling is leading to sow herd inventories lower than the target, leading to fewer pigs being produced than you would expect from many sow units.


The lower numbers of slaughter are also being caused by labor issues. Many farms are understaffed which affects productivity. Some farms are half staffed. No way that leads to more hogs. It also discourages expansion. We expect labor issues in sow units are cutting production by 2-5%.

China

Below, from a reader in China (we took out company names but all with several 100,000 sows)

  • Company X is in very dire financial and legal status and not expected to survive.
  • Company Y cannot pay its bills and borrowing from its suppliers. The suppliers tells us that they themselves can’t stand much more of it.
  • Some large outfits have recently changed leadership as the CEO and CFO etc. are resigning.

China’s Hog Industry currently is losing big money with prices below cost of production and continued issues with African Swine Fever. The price of corn last week was $9.75 U.S. bushel, the lowest this year. China has forward bought little corn from USA since May. We expect China’s swine industry losing minimum $400-500 million U.S. a week at current price levels is causing significant liquidation. Don’t need corn to feed pigs that don’t exist.

CFAP 1 Top-Up

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Pork Commentary, August 23rd, 2021
Jim Long, President-CEO, Genesus Inc.

As of August 15, 2021, USDA website shows payments of CFAP 1 Total Disbursed.

Cattle$4.37 billion
Milk$1.79 billion
Corn$1.78 billion
Hogs$ 624 million

Cattle, Milk, Corn, have all been paid the USDA promised CFAP 1 top-up. The hog industry languishes as a second-class citizen having not been paid top-up. The CFAP 1 top-up program was put in place to compensate, re USDA CFAP 1 website, “for producers of agricultural commodities marketed in 2020 who faced market disruptions due to Covid-19.” The CFAP 1 top-up was promised in January. As you see huge payments have been paid to Cattle. Milk and Corn as promised.

The CFAP 1 top-up was to match first CFAP 1 payments. It appears to us $624 million is the government USDA payment owing to producers. A lot of money that this industry could use to backfill the hole created by Covid crisis and market collapse in 2020 just as Cattle, Milk, and Corn received. You know what you got CFAP 1, best you fight for it.

We continue to wonder why NPPC Bureaucrats are not fully engaged to get the $624 million promised and owed. Obviously, the Cattle, Milk, and Corn groups have done their job to look after their industry. What can be more important than getting $624 million for your industry? Time to clean house at NPPC, the leadership is not getting the results of other industry groups. Hopefully, NPPC directors will take charge and stop the inmates from running the asylum. New energy, new direction, new ideas, and tangible results are the only option if we are going to have a body that represents, defends, and grows or industry.

Last week we highlighted a letter the Senators of Iowa and Minnesota sent asking USDA Secretary Vilsack where is the CFAP 1 top-up for Swine. If we want to get the money, we all need to engage continually Senators, Congressmen, and Secretary Vilsack. Call/ email over and over. They all need to see a concentrated effort of our industry saying “Where is the promised money you paid Cattle, Milk, and Corn, why not Hogs?” We are on our own, NPPC is MIA. It’s $624 million. Let’s get at it. Covid-19 smashed us as much if not more than the other commodities. The CFAP 1 top-up promise made should be a promise kept.

Other Observations 

Marketed Hogs 

July U.S. total commercial hog slaughter was 9.790 million, down from last year 11.224 million. The 13% decline compares to the year-over-year decrease of 2% that USDA projected. Last week the U.S. marketed 2.452 million, a year ago 2.625 million (-6.5%). The USDA June 1st inventory report was wrong. This overestimation of inventory hurts producers as it drives down lean hog futures by creating the perception of more supply than in reality.

Olymel Plant (Quebec) Strike

The strike at Olymel plant in Quebec continues as a Union vote rejected the company offer last week. The Valley–Junction plant which handles 37,000 market hogs a week has been on strike since April. The closure of the plant has put huge stress on Quebec and Ontario producers who have contracts to supply hogs, as they are forced to find other homes for their hogs. The Union wants a raise of 50% over three years.

The Olymel plant closing is leading to more small pigs and market hogs being sent to USA. Market hogs to USA the latest week data shows plus 14,000 year over year. Small pig exports the latest week plus 20,000 (+24%) year over year. The strike is not only a dilemma for producers but for Olymel as the sudden drop of pork supply creates issues with customers in retail, foodservice, and exports. Some of these customers will be supplied by U.S. packers grabbing customers with the Canadian pigs. When you lose a customer always a challenge to get back.

Total Federal inspected hog slaughter in Canada was -14% in the latest week year over year (-58,000). A real sign of the crisis the Olymel strike is putting on the Canadian hog industry.

China’s Pork Industry in Red

China hog slaughter price continues to run around 15.56 RMB kg ($1,09 U.S. liveweight a lb). A price below China’s average cost of production ($11.00 bushel corn). The current China cash weaned pig price is 260 RMB ($40 U.S.), cost of production is $60 plus. 15 kg (33 lbs feeders) 350 RMB ($53 U.S.). In January 15 kg feeders were near $300. A huge difference.

China’s pork industry is currently in red, losing lots. One of their largest publicly traded owned swine companies lost $500 million U.S. in the first half of 2021. Most estimates of loss per head of industry are at $35-$50 per head. 10-12 million heads per week marketed, a range of $350-$600 million a week loss in the industry. Not exactly conducive to continued expansion. We believe China is net liquidating now due to financial losses and continued ASF challenges. This liquidation continues to put more pork on the market and driving down prices. Just a matter of time when the dog hits the end of the chain and China hog prices jump. The billion-dollar question “When is that?”

Sow Value

A year ago, U.S. heavy sows were in the 25¢-30¢ lb. Last week sows over 500 lbs. we’re averaging 92¢ lb. with some bringing a $1.00 lb. Nice ring to it, 500 lbs. x $1.00 lb. = $500, $300 plus more than a year ago. Certainly, time to get rid of old sows and replace with gilts. As good as a sow revenue – gilt cost spread ever.

It also highlights the dilemma of dead sows. Every sow that dies costs you big money. Average industry sow mortality on databases is 14%, which means half industry is over 14% with many 17%-20%. It’s amazing our industry tolerates the failure of the Genetics that give these results. Prolapses, lames, fighting, feet structure, milked down in lactation, all factors eroding not only the loss sow value but dead sows don’t produce pigs. If you got sow mortality over 14% it’s your genetics, not your management. Time for a change.

Research in a frenzy over feeding

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By Geoff Geddes

Editor’s note: The following piece was written for Swine Innovation Porc (SIP). For more information, contact Leslie Walsh at lwalsh@swineinnovationporc.ca.

Research supported by Canadian pork producer organizations, directed by Swine Innovation Porc (SIP), continues to investigate ways to lower feed costs. Photo submitted by Christopher Gross.

If you think that feed costs are overrated, you’re not the one paying the bill.

As piglet feeding and its impact weigh heavily on producers’ minds, science is seeking ways to make your feed dollar go further. Part of that effort involves highly relevant projects such as, ‘Towards a new feeding approach of neonatal and weanling piglets for optimizing nutritional status, immunity and microbiota, and minimizing the use of antibiotics.’

“A major focus of the project is exploring a range of approaches for maximizing the growth and health of piglets during lactation and in the pre-weaning and post-weaning periods,” said Martin Lessard, former Research Scientist, Sherbrooke Research and Development Centre (SRDC), Agriculture and Agri-Food Canada (AAFC). Lessard was a co-leader of the project with Dr. Frédéric Guay, Professor, Department of Animal Science, Laval University. After Lessard’s retirement, the project was handed over to Dominic Poulin-Laprade, a newly hired Research Scientist at SRDC-AAFC who works on pig gut microbiomes and immune systems, along with developing solutions to antimicrobial resistance in the agricultural sector.  

As part of this particular project, researchers will also evaluate the potential of various feeding strategies. Specifically, they will examine bovine colostrum, naked oat, medium-chain fatty acids and yeast extracts capable of optimizing gut health through their complementary influences on microbiota and immunity.

Ideas to chew on

Improving robustness and disease resistance equals healthier pigs and fewer expenses

Lessard, and now Poulin-Laprade, and Guay hope to develop feeding strategies that will improve piglets’ robustness and resistance to infections while limiting antibiotic use – something that is now a top industry priority. If all goes as planned, they will eventually transfer ready-to-adopt practices to commercial swine producers based on scientific foundations and scaled-up demonstrations.

“The first thing we are doing for the project is testing the different feeding approaches side-by-side,” said Lessard. “We will look at colostrum alone, medium-chain fatty acids alone, a control group with neither product, one group using both products and a final group employing antibiotics.”

That final group is especially critical for industry, as the limiting of antibiotics in weaning feed means producers must find ways to compensate for the loss of that option and devise other ways of achieving those beneficial effects.

“We have just finished an experiment for testing the potential of medium-chain fatty acids, yeast extract and bovine colostrum to improve gut health by modulating host-microbiome interactions and gut immune response,” said Lessard. “Dr. Guay is now doing some other work to determine whether naked oats can improve feed intake before and after weaning, and thus intestinal physiology, including the integrity of the intestinal mucosa. He is also studying the possible role of a colostrum supplement in early lactation on post-weaning feed intake and intestinal health.”

Once they arrive at the ideal feeding conditions, researchers will repeat the experiment with medium-chain fatty acids and bovine colostrum to determine which is more effective in preventing infections. As well, they will compare results when piglets are exposed to creep feeding versus when such feeding is absent. They also plan to further scrutinize the microbiome of the animals in their study and its impact on digestibility and performance.

As is often the case with research, this project is guided in part by findings in previous studies and partly by the gaps in past research that need to be filled.

“Based on work in prior projects, it is clear that different ingredients can act on intestinal immunity, physiology and microbiota,” said Lessard. “However, few studies have investigated the combined effect of different ingredients that can act in a complementary fashion on the intestinal health of weaned piglets.”

In addition, few studies have been aimed at evaluating the effect of the composition of creep feed on pig health during the pre-and post-weaning periods.

“In the particular context of hyperprolificity, the study of pre-weaning feeding to optimize immune response, intestinal microbiota colonization and the growth of the piglets – mainly low weight – is relevant. Specifically, we want to examine this feeding under the current conditions of reduced antibiotic use and high zinc concentrations in post-weaning diets.”

According to Lessard, it is also clear that new feeding approaches with the potential to modulate gut health and piglet robustness from birth to post-weaning need to be developed and warrant closer inspection.

Clearly, the multi-pronged nature of this project promises a range of benefits for producers, with the implications for antibiotic use being one of the most notable.

Reducing antimicrobial use has wide-reaching benefits

Aside from keeping costs under control, reducing antimicrobial use is an important part of maintaining public trust in the Canadian hog industry.

“Through this study, we will continue to reduce the amount of antibiotics in feed, which will have a direct impact on the development of antibiotic-resistant bacteria,” said Lessard. “Using the products we are looking at here is more expensive than antibiotics, but the earlier you start with them, the better your chances of promoting long-term effects that will boost your bottom line. If pigs do well during those first six weeks of life, the benefits may be much greater than we realize right now.”

Cost is clearly a consideration for producers, and while the researchers do not yet have all the answers, they are exploring options for minimizing expenses. With bovine colostrum currently the costliest option for piglets, can the amount used be reduced from five per cent of the diet to two per cent or even one per cent by using other products that spark similar effects? Are prebiotics, nutraceuticals (pharmaceutical alternatives which claim physiological benefits) and other functional feeds a viable alternative? On their own, prebiotics and nutraceuticals may not be the most effective additive during the weaning period, but perhaps they could be added to bovine colostrum to increase the beneficial effects.

If the road to results is paved by asking the right questions, these researchers are well on their way.

Ontario Pork: 75 years of progress and resilience

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By Stacey Ash

Editor’s note: Stacey Ash is Manager of Communications and Consumer Marketing at Ontario Pork. She can be contacted at stacey.ash@ontariopork.on.ca.

To mark the occasion of Ontario Pork’s 75th anniversary, a special logo was created to be used as a prominent visual reminder this year.

In 2021, Ontario Pork celebrates 75 years of serving and representing pork producers in the province. Celebrating such an important milestone has some challenges, with pandemic restrictions still limiting social gatherings, but the organization continues to mark the occasion in various ways, with plans for a more formal celebration when we can safely gather again.

A special anniversary section was incorporated into Ontario Pork’s Corporate Profile, including interviews with multi-generational farm families, insights provided by international workers growing their career in the Canadian pork industry and forward-looking insights from new members of the industry. A 75th-anniversary logo brings the celebration to Ontario Pork’s websites and producer-facing social media accounts.

Photos from the archives are being shared online at ontariopork.on.ca/history, as well as on social media, using the hashtag #OntarioPork75. Producers and industry partners are encouraged to join this trip down memory lane with contributions from their own photo albums or pork memorabilia collections.

There’s more to come, with planned contests, giveaways and celebrations in the months ahead.

Ontario Pork – looking back

Even in the early days, Ontario Pork positioned itself to proudly showcase the work of producers (and hosted free ham draws) to reinforce consumer confidence.

On April 21, 1946, the offices of the Ontario Hog Producers’ Board opened in Toronto.

Farmers looked forward from the scarcity of the Second World War to a collaborative model where elected members would represent their best interests. Charles McInnis was a driving force behind the formation of the marketing board and served as president until 1961, alongside Norman McLeod, the board’s first chair.

At the time, close to 120,000 farms in Ontario reported having hogs, with an average of about 16 hogs per farm, and producers agreed to pay $0.02 per hog for the support of a central marketing organization.

It was not always easy. The 1950s saw the beginnings of central selling, first with United Livestock Sales, and later through the Ontario Hog Producers’ Cooperative, with 28 assembly yards operating across the province. The decade also saw escalating tensions between producers, processors and transporters, who did not all agree on the central approach to selling hogs.

A worker records hog marketing information by region on a chalkboard at the Ontario Pork head office.

The 1960s began with a swell of optimism around plans for the Farmers Allied Meat Enterprises (FAME) processing co-operative. At the Ontario Hog Marketing Board, advances were being made in hog selling. A new teletype machine at the head office listed lots of animals to be sold at assembly yards, and a new index grading system came into effect.

Efforts to promote pork to the public – and grow domestic sales – picked up steam in the 1970s, as the Ontario Hog Producers’ Marketing Board was renamed the Ontario Pork Producers’ Marketing Board. Ontario Pork opened two Toronto restaurants – ‘The Pork Place’ on King Street West, and the ‘Pork Pickins’ fast food outlet. The popular, and still quoted, ‘Put Pork on Your Fork’ campaign was in full swing by the end of the decade.

The 1980s were a time of political turmoil, as trade disputes with the U.S. saw heavy countervail duties imposed on fresh, frozen and chilled pork from Canada. Strong political advocacy on the provincial and national fronts helped see those duties eliminated in 1991. The focus at Ontario Pork turned to organizational review, beginning with the privatization of all Ontario Pork assembly yards. Debates and studies related to organizational review lasted well into the new millennium, leading to the end of single-desk selling in 2010.

A worker trims fat from a loin at the producer-owned Conestoga plant in Breslau – just outside of Kitchener.

Those years also saw significant change on the processing front, with Conestoga Meat Packers beginning operations near Breslau in 1982. In 1994, 120 farms came together to create Progressive Pork Producers: a farmer-led co-operative to run Conestoga Meats.

Swine research became a cornerstone of Ontario Pork’s mandate, with one project in particular garnering a great deal of attention in the early 2000s: Enviropig. Genetically engineered to reduce phosphate excretion, the pig developed at the University of Guelph showed great promise to address environmental concerns but ultimately could not overcome public distaste for genetic modifications.

Community outreach has long been a fixture of Ontario Pork’s consumer marketing strategy.

In 2014, Ontario Pork helped the industry navigate two major crises: with the collapse of Quality Meats in Toronto, and export disruptions following the arrival of porcine epidemic diarrhea (PED) in Canada. Working with government, Ontario Pork secured funding to help restore consumer confidence and boost sales through the creation of a retail branding program.

Through massive demographic shifts, operational changes, political battles, trade issues, disease outbreaks and evolving public expectations, one thing has remained constant: Ontario Pork’s steadfast commitment to serving and supporting its members.

Ontario Pork today – and tomorrow

Times change, but Ontario Pork’s commitment to the industry’s evolving needs remains the same.

Today, 75 years after the organization first opened its doors, a global pandemic, which brought shortages and supply chain disruptions, appears to be nearing its end. Support from our provincial government partners is strong, including the creation of new legislation to better protect farms targeted by those who would seek to end the industry. 

What do the next 75 years look like? Pork producers in Ontario have earned a reputation for resilience and perseverance. This comes from the hard work and commitment demonstrated by producers, Ontario Pork board members and staff, and industry stakeholders. Those up-and-coming in the industry are continuing their commitment to environmental stewardship, along with increased collaboration and partnership within industry and government to ensure the further growth of the sector for future generations, so that they can carry on the legacy of providing a high-quality product for consumers.

While the number of producers is only a fraction of what it was in the beginning, appetite for Ontario-raised pork now continues to grow at home and overseas, and Ontario Pork ensures the voice of producers is heard as loudly today as it was in 1946. Ontario Pork, and the producers it represents, can look forward with confidence to the next 75 years.

Pork Demand

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Pork Commentary, August 16th, 2021
Jim Long, President-CEO, Genesus Inc.

The last few days we have read commentaries from pundits and future trading houses of big concern on pork demand. This is of course due to some of their vested interest to drive down lean hog futures. Doubt anyone of them has ever owned a hog or ever will.

We are glad to point out that last Friday, U.S. Pork cut-outs closed at $125.68. To us, the cut-outs reflect Pork demand here and now. If a year ago we wrote that Pork cut-outs would be $125.68 a year later it would have been called delusional (a year ago August lean hog futures 74.10). To us, Pork demand is currently solid and we see it continuing. Pox on the house of the vested interest’s intent on destroying better pricing for producers. 

Hog slaughter continues to run well below USDA June 1 projections of 2% fewer hogs. Last week 6% less year over year, since first part of July slaughter close to -10%. Doubt anyone not shipping any market-ready hogs as we move into lower fall price market. We aren’t raising pets. 

Hog Market in Europe

The hog market in Europe has its issues. High feed costs coupled with large volumes of Pork due to slow down in China Exports have decreased hog price in Spain, from a historic high in June of 1.55 Euro/kg liveweight (90¢ U.S. lb.) to 1.26 Euro/kg (68¢ U.S. lb.) last week. The Netherlands, in the same time frame, has gone from 1.21 Euro/kg liveweight (66¢ U.S. lb.) to 1.02 Euro/kg (55¢ U.S. lb.) last week. Danish 30 kg (66 lbs.) feeder pigs are 35 Euros ($42.64 U.S.) 

Many producers will be losing money, with corn at 221 Euro a ton ($7.57 U.S. bushel) and imported soy meal 413 Euro a ton ($495 U.S. ton).

Currently, the Dutch government is paying for swine producers to leave the industry. We expect significant liquidation over the coming months in the Netherlands and Germany.

August Crop Report

USDA came out with its August Crop Report last week with big Corn acreage states of Iowa, Illinois, and Nebraska showing projected yield increases year over year. Of the top 10 producing, all are up in Corn and Soybean yields year over year other than Minnesota and South Dakota. Not sure why report was considered bullish when national projected average yield is second highest in history.

Cost of Sow Mortality

Last week we wrote about the cost estimation by Ron Ketchum, a founder of Swine Management Services, that a dead sow was $996 – $1275. Huge number and it’s a challenge for our industry. Quarter 2 2021 Meta Farms Database has average sow mortality 14.2%. We believe there is difference in swine genetics. Genesus average sow mortality in 2020 of all North American producers we have data was 4.36%. Big difference. As one competitor said, that isn’t a fair comparison because Genesus has better producers. Now that’s a comeback? Probably a certain Genetics Company should be less focused on going down the rabbit hole of GMO – Gene Editing and realize structure – temperament is a huge part of sow liveability. Dead sows cost big money as Mr. Ketchum calculates.

CFAP 1 Top-Up

Last week the Senators of Iowa and Minnesota sent a letter to Secretary of Agriculture Vilsack asking why CFAP 1 payments promised to swine producers had not been paid. This is good, we need to keep pressure on Senators, Congressmen, and Secretary Vilsack. The CFAP 1 top-up payments promised by Government have been paid to Dairy, Crop, and Cattle producers ($ billions). Why hasn’t the $17 per head promised been paid to swine producers? Are we second-class citizens, a second-class industry?

The CFAP payments were to compensate for damages producers of the food chain had incurred due to Covid. We kept producing as an industry, we had billions in losses. It is our right to be treated fairly as promised. Keep the pressure on, it works, do you think the Senators would have got engaged if weren’t reaching out? Keep contacting, it works.

Some have asked where is NPPC in all this. They are ones paid to represent our industry in Washington. Unfortunately, the Executives leadership of NPPC is wanting. It’s time for NPPC Directors to drain the swamp in Washington. We need new leadership that can get something done.

Below are some comments from our readers regarding CFAP 1 payments:


“I think the first question you should be asking yourselves is if the program said it was going to give out $11 or $13 per pig to the guys that actually own the pigs first, why didn’t we all get that? The people that actually pay you. If you look at the money allocated in that bill for swine was the lowest percentage-wise paid out of any other commodity.”


“Jim, thank you again for all you do, as an independent producer please stay on the CFAP trail. I too have been wondering what happened to it, grain guys have 6.50 corn and got 20.00 per acre.”


“Great write up Jim! Very refreshing to see someone preaching the truth to our producers, especially when it comes to the NPPC. Thanks for sending this out!”


“Jim, Thank you for keeping us informed on this. That top-off payment can most definitely help out! Appreciate your direction on this.”


“Appreciate your bringing this up. Don’t let it go. I’ve contacted my reps but no response so far. Don’t expect NPPC to step up – the CFAP payment cap penalizes their strongest supporters – mega-producers. NPPC has no incentive to go to bat for small/medium-sized producers which is who would benefit most from the additional CFAP 1 payment.”


“U speak the truth. Yes, beef and dairy both got well over a billion a piece in the last round and had their money 4 months ago. We had as good of a downtrodden scenario as anyone in Dec and Jan when this was put together. We should of gotten 1 billion-plus of the euthanization money we get now. What a wasted opportunity!!!!!!!”


Had one negative comment from an NPPC apologist and part of their bureaucracy:

“Why don’t you pick up the phone and call Neil instead of bashing him and NPPC? Complainers don’t accomplish very much. Why don’t you be a team player?”


Letter written to the USDA by a reader:

“USDA -VILSACK: As a small family hog farmers we are asking why the TOP-UP payments have been paid to cattle and grain farmers BUT not to hog farmers. Covid, plus the slow down of chain speeds which has not be challenged by the USDA has seen our contract with Hormel terminated next month. We have been with them in good standings for 12 years but the slowdown will affect 500,000 hogs they won’t buy. They also said their accident records have gone down NOT up like has been written.

Equality?Equity? Payment being held with no valid reasons. You’ve had 7 months now, step-up and support family hog producers!!! It is not playing well out here in the country. Period!”

Where are the Market Hogs?

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Pork Commentary, August 9th, 2021
Jim Long, President-CEO, Genesus Inc.

Last week the U.S. marketed 2,327,000 market hogs, a year ago same week 2,559,000. That’s close to 10% less! In the last five weeks numbers have been close to 10% lower. Anyone keeping hogs because they think the price will go higher? We don’t think so, and weights holding at 277 – 278 lbs. over that time tells us we are keeping hogs moving.

Year to date U.S. total marketing’s 1.1% less than a year ago. Remember the Chicken Little Economists and followers who campaigned to tell us the U.S. was going to have more hogs in 2021 and the lean hog prices would not be profitable. These wise guys of course never owned hogs and never will. They had no clue how bad 2020 was for producers financially. As if losing $50 a head makes more hogs. The same “experts” work hand and hand with the NPPC executives that don’t seem to care why producers are not getting CFAP 1 top-ups promised by the government. Cattle and Grain producers got billions in the CFAP 1 top-ups. As if they were the only ones damaged by Covid debacle. The Washington-based NPPC crowd kept getting their big paycheques while accomplishing next to nothing for producers.

This past week NPPC big accomplishment, they applauded new measures on imported dogs that USDA put in place. How about CFAP 1 top-up? Let’s hope the swamp gets drained in Washington and NPPC directors can find new dynamic leadership.

Every producer needs to contact their Congressman and Senators. Ask where CFAP 1 top-up promised to hog producers is? Why haven’t we got it? Pork is an important part of America’s Food Chain and we need to be treated fairly.

Other Observations

US Pork Export to China

China bought 18,000 tonnes of Pork from USA last week. A significant purchase. Why does China need to buy Pork if they have lots?

Fewer Hogs Year Over Year

The 10% decrease in Market Hogs in the last few weeks, we believe, is a combination of liquidation, disease, and high temperatures. Financial losses last year devastated the industry, sow herds inventories were not maintained, we believe PRRS issues are hurting the industry big time.

Talked to a producer last week hit with PRRS. Expects 30% decline in weaned pigs over the next 12 months from previous year and a 20% increase in wean to finish mortality. That’s a 50% decline in market hogs.

Weights have held at 278 lbs. over the last few weeks, there is chance hogs backed up some due to the fact that weight didn’t drop lower.

We expect fewer hogs’ year over year for the next several months.

Cost of Sow Mortality 

We have written about ever-increasing sow mortality in our industry, jumping 6% over the last few years to last year’s 13.9% average on PigCHAMP data system. Ron Ketchum, with Swine Management System, a well-known expert and founding partner of the database, recently spoke to the value of a dead sow. Mr. Ketchum estimates a range of $996 – $1275

At calculation midpoint, big economic difference, with our farmer’s math estimating every 1% change is 45¢ a pig. A 5% sow mortality change makes $2.25 a pig. We have talked to producers that used to have 7-8% sow mortality they now are pushing 20%. We have asked what changed? Barn? Penning? Density? Health? Answer was, nothing but sows don’t hold up and have prolapses that didn’t have before. Ask yourself same questions.

Huge economic cost to sow mortality. 5% change on a 2,500 sow unit is $135,000 a year, using a $40 sew price you need to produce an extra 3,375 pigs per year to cover the loss of 5% sows in a 2,500 sow unit.

If your sows prolapse, cripple, need toe clipping, poor sow salvage value, maybe you need different genetics. It’s your money.

Exports soar when pigs fly

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By Andrew Heck

When pigs fly: It is an expression used to cast doubt on unlikely circumstances, but with the help of Canadian airports, exports of agricultural commodities – including pork and live swine – are taking flight.

While most pork moves through the supply chain via truck and container ship, air freight is becoming an increasingly popular option for processors and exporters who can justify the cost, especially when it comes to delivering the highest-quality products to markets that are willing to pay.

Sky-high consumer demand drives profits

Using air freight means fresh Canadian pork reaches Chinese supermarket shelves within a day or two of passing through the Sunterra Meats plant in Trochu, Alberta.

Sunterra Meats of Trochu, Alberta – approximately 150 kilometres northeast of Calgary – has been sending fresh pork to select Asian destinations for several years, in addition to selling much of its product through Sunterra Markets locations in Alberta’s largest cities. Savvy overseas consumers are more than willing to pay a higher price for fresh Canadian pork loin, side ribs and belly, even compared to cheaper products more widely available in their home countries. As a prime example, in 2017, Costco Japan replaced its U.S. chilled pork products with Canadian pork, resulting in a 300-tonne monthly increase in sales. Associating Canadian pork with high quality has long been an important focus for the entire sector.

In 1986, Canada became one of the first countries to implement a national hog carcass classification system, employing electronic grading probe technology, which values carcasses based on objective measurements of both fat and muscle content. Sunterra regularly ships slice-ready primals with four-out-of-five muscle colour, fat colour and marbling criteria to high-end retailers in China and Japan, where finishing cuts are performed before the products is packaged using Sunterra-branded materials and labelled with the local retailer’s price tag.

Sunterra’s consumer-facing export products feature the Verified Canadian Pork (VCP) branding – a mark of distinction in Asian markets, as established in the Canadian Pork Council’s (CPC) independently developed Made-in-Canada Hog Price Report, which evaluated Canadian pork’s place in global markets. In Japan, pork of Canadian origin commands an observable premium over and above similar products of U.S. origin. The VCP program is backed by farmers’ quality assurance commitments through the Canadian Pork Excellence (CPE) program.

“A major difference between here and Asia is that they are more brand-conscious than us,” said Tony Martinez, former Vice President, Sales and Marketing, Sunterra Meats. “The brand represents the story, and they want to know that story. That’s important for our company.”

In June 2019, following a diplomatic dispute and consequent ban on Canadian pork exports to China, Sunterra’s shipments to the country came to a temporary halt.

“Pre-ban, we were sending three to four metric tonnes of product to China every week,” said Martinez. “Post-ban, we’ve been faced with some new challenges related to regulations and seal requirements.”

The challenge is related to the location where Canadian Food Inspection Agency (CFIA) seals are applied to the product. Previously, Sunterra was able to truck unsealed pallets to Edmonton International Airport (EIA), where they were then sealed and loaded onto an airplane. Now, per the CFIA’s Safe Food for Canadians Regulations, introduced in January 2019, each pallet must be sealed at a federally inspected processing facility by a CFIA inspector. The problem is the distance between the CFIA inspectors at EIA and Sunterra’s plant 200 kilometres southeast of the airport.

“It has become a bit impractical for larger loads,” said Martinez. “If we’re trying to send the same volume as we did before the change in regulations, now we need to individually seal and provide documentation for each pallet, which amounts to a lot of paperwork.”

And while paperwork is an administrative hassle at best, at worst, it can be the source of controversy. When China stopped imports of Canadian pork, it was under the pretext of inaccurate inspection certificates. This climate of concern leaves Martinez wondering if something similar could happen again.

“It makes us a bit paranoid, since it’s the kind of thing that could cause trouble. We already saw it happen once,” said Martinez.

As of July 2021, all food for export being transported on passenger or cargo flights must go through an enhanced security check, per Transport Canada requirements. This means products will need to be unloaded at the originating airport, X-rayed, physically opened up for inspection by CFIA, resealed, then reloaded before departure.

In June 2020, CFIA launched a pilot project to address the problem of sealing, working with stakeholders such as the Canadian Pork Council (CPC) and Canadian Meat Council (CMC). At that time, CFIA inspectors headed to EIA to oversee and re-apply the seal to 20 tonnes of chilled pork to China, as part of the test. The shipment, originating from Sunterra, arrived in China within days and was released to the importer in good condition. EIA provided support for the project and assisted Sunterra in obtaining and implementing the sealing equipment.

Despite regulatory concerns, Sunterra is confident that shipment volumes will eventually recover as they work with CFIA to smooth out any wrinkles in the system. For the markets served by the company, a steady stream of Canadian products not only satisfies a purchasing trend but also helps relieve a domestic industry that has been decimated by the effects of African Swine Fever (ASF) since August 2018, along with changes in consumer behaviour that have been spurred by the spread of COVID-19 since early 2020.

Breeding stock is uploaded to the cloud

For Fast Genetics, China is a popular destination for live swine. Animals are loaded onto crates and then lifted into cargo aircraft for efficient delivery to overseas clients.

From premium pork to breeding stock, companies far and wide across the value chain are making using of air travel when the margins make sense. Saskatoon-based Fast Genetics has moved animals by plane to locations like China in the past, mostly via airports in the U.S.

“For us, it’s about recognizing a need in a place like China, where the government is attempting rapid re-population,” said Sarah Heppner, Marketing Manager, Fast Genetics. “ASF has driven a shortage, and the government is trying desperately to rebuild production models; however, tensions between China and Canada have made exporting difficult at certain times.”

For Alliance Genetics Canada, a 15-year partnership with South Korea has resulted in pig movements to that country annually for several years. While COVID-19 delayed the company’s most recent shipment – which usually takes place early in the year – it was delivered, albeit later than desired, in November 2020. According to the company, the quality of its breeding stock is the main reason why business continues to flourish in spite of hurdles to global trade.

Meanwhile, for companies like PIC, destinations in Europe and South America are locations where pigs are desired. The company relies heavily on air transport to meet its business needs beyond North America. PIC raises its genetic improvement stock on nucleus farms in Saskatchewan and South Dakota, which are the source of live animals for export, especially boars and gilts, in addition to semen.

“Air shipments ensure our supply remains protected against the incurrence of disease,” said Tom Riek, North America Health Assurance Veterinarian, PIC. “The airplane offers a controlled environment, and the speed of transport helps mitigate health risks.”

One of PIC’s recent endeavours is a project that ships one or two full Boeing 747s every six to eight weeks out of EIA to a commercial producer in eastern Europe. Veterinary certificates and regulatory processes vary from one jurisdiction to another, and the relationships between Canada or the U.S. and those jurisdictions can impact decisions. It is also one of the reasons why PIC operates nucleus farms on both sides of the border.

“Export requirements for some countries are simple, while others are complex,” said Riek. “Our export coordination team is based in Tennessee, and they are responsible for scheduling the shipments.”

Navigating the intricacies of protocols is part of what Riek does alongside CFIA. Through CFIA, Riek and PIC are able to make the necessary arrangements to see the uninterrupted flow of products to foreign clients.

The reliability and quality of products delivered by air builds client confidence and keeps the venture profitable for PIC. The company ships ‘grandparent’ animals for clients to produce ‘parent’ stock, which will then be used to breed the first generation of animals sent to slaughter. The multiplication process amplifies the value of the grandparent animals, making them highly coveted.

Edmonton International’s reputation reaches for the stars

Airports like Edmonton International are increasingly looking to diversify their own portfolios and stimulate economic growth in the regions they serve.

While it was only Canada’s fifth-busiest airport in terms of annual passenger traffic prior to COVID-19, EIA is the country’s largest by physical area – a significant advantage over other major metropolitan airports when it comes to developing facilities to service cargo shipments.

“It’s part of our development strategy,” said Alex Lowe, Manager, Global Network Development (Cargo) Air Service and Business Development, EIA. “We know that air freight is not always number-one for exporters, but we are working on building strategic relationships to help Canadian businesses reach their full potential.”

EIA’s focus on moving products more than people is contrasted by some other Canadian international airports, including Calgary, but it comes down to what each location offers in terms of transportation logistics and priorities.

“Speed is the main advantage of air freight,” said Lowe. “It allows our clients to deliver products much quicker than other methods, and that speaks to a perceived value of freshness from farm to fork.”

With market-based struggles hampering Alberta’s oil and gas industry in recent years, moving agri-food products in particular has been a target for EIA. The disruption to passenger traffic, as a result of COVID-19, has also played into this consideration. Perhaps surprisingly, the airport handles not only commodities from western Canada but also items like cherries from Washington state – one of EIA’s proudest crowning achievements.

During peak cherry harvest, which is only a few weeks long in the summer, airports in Seattle and Vancouver quickly reach capacity, and fruit growers are left looking at the next best options: Los Angeles and Edmonton. While the distances between interior Washington and Los Angeles or Edmonton are comparable, factors such as traffic congestion and weather make the difference for exporters. Navigating the busy labyrinth of southern California can be a headache, and the state’s hot temperatures – while ideal for growing a wide variety of crops – create challenges for keeping product cool. For those reasons, the route from Washington to Alberta just makes more sense.

All major airports in Canada are publicly owned through the federal government. A lesser-known mandate for airports, aside from the obvious, is supporting economic development in the communities they serve. All told, while air freight is not usually the first thing that comes to mind when the transportation of pigs and pork is concerned, it can and does play an important role in facilitating movements and stimulating growth for the industry.

Keep your eye on the sky and feet on the ground

It is no longer the stuff of fantasy: pigs really do fly! And the entire pork value chain is better for it.

Success stories in the pork industry seem to be few and far between these days, but the use of air freight to move pork and live swine is a win for the modern Canadian pork value chain. More than providing a novel alternative to conventional transport, it signifies that the industry is stepping up to the plate to meet the needs of elite, emerging and evolving markets, where high quality wins over satisfied, paying customers. And that should sound good to just about anyone.

Next time you find yourself glancing up at a jetliner, consider that tens of thousands of feet overheard might be a shipment of premium meat raised on your farm or the genetics sector’s best and brightest candidates for populating foreign herds. Canada’s $24-billion annual swine industry depends on global partnerships, which are enhanced when trade routes are open and abundant.

Agri-food events adapt during COVID-19

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By Carrie Selin

Editor’s note: Carrie Selin is Manager of Taste Alberta, representing organizations within Alberta that have come together to encourage loyalty to local foods. She can be contacted at carrie.selin@tastealberta.ca.

By now, almost everyone in the Canadian agri-food industry has experienced some form of minor or major disruption to a meeting, conference or event that had been previously scheduled to take place in-person, prior to COVID-19.

With the easing of public health restrictions across the country, many people are breathing a little easier these days and looking forward to the continued interpersonal interactions that were missed in the past year or longer. Getting back to regularly planned activities, as before the pandemic, has become a priority for enhancing industry effectiveness and improving workplace pride and satisfaction.

Producer get-togethers stifled

Nearly 100 producers packed the main hall at the Coast Lethbridge Hotel & Conference Centre in southern Alberta during Alberta Pork’s semi-annual meeting, in March 2020. The next day, the province implemented COVID-19 gathering restrictions.

The Canadian agri-food value chain begins with producers, and COVID-19 has had a range of unexpected impacts on how business has been conducted. Sometimes, the impact was relatively minor, such as a few more phone calls or an exchange of emails instead of meeting for coffee. For others, the impact was a little more painful, forcing a change in habit from normal gathering settings to a completely virtual arrangement – something that even the most tech-savvy among us can struggle with. 

“When COVID-19 restrictions were originally put into place in Alberta last year, it was the very day after our last face-to-face meeting with producers,” said Brent Moen, Chair, Alberta Pork. “Little did we know then it would take this long, but we are excited to get back to in-person meetings, hopefully within the coming months.”

The meeting referenced by Moen – one of four hosted by Alberta Pork across the province – touched on many hot-button issues that were burning then and are still smouldering today. Often, when it comes to addressing important business, something is lost when that process moves out of the hotel conference room and into the Zoom meeting room.

However, feedback from producers on subsequent virtual meetings – such as Alberta Pork’s annual general meeting (AGM) in November 2020 and following the round of semi-annual meetings in March 2021 – suggests that, while producers almost unanimously prefer in-person get-togethers, the virtual platform can be useful when needed. In lieu of an ability to gather in-person, remote meetings have been an adequate replacement and have even offered some benefit when it comes to limiting unnecessary travel and making those meetings more easily accessible to producers who struggle to balance their farm workload with taking time to attend a meeting in town.

The annual Banff Pork Seminar attracted nearly 800 guests in-person in 2020 and a similar number virtually in 2021.

More broadly, larger, internationally recognized events like the half-century-old Banff Pork Seminar were hit by restrictions in more ways than one. The Banff Pork Seminar is known as a premier event within the North American and global swine industry, attracting hundreds of attendees every year. However, in addition to the excellent programming offered, there is simply no way to digitally replicate the splendor of the Canadian Rockies. In 2020, the Banff Pork Seminar attracted upwards of 800 guests, which was matched in 2021, albeit with much less fanfare.

“We look forward to hopefully seeing everyone in-person in beautiful Banff for our delayed 50th anniversary celebration,” said Ashley Steeple, Conference Coordinator, Banff Pork Seminar. “The 2021 edition of the Seminar presented many challenges, and while we were able to climb over that hurdle in the end, we would much prefer a return to what everyone knows and loves!”

Originally, the Banff Pork Seminar organizing committee had considered extended opportunities as part of a 50th anniversary celebration, including a banquet, with a meal served by the legendary kitchen at the Fairmont Banff Springs Hotel. This celebration was wisely though grudgingly postponed, as attempting a virtual equivalent would have been a major injustice to fully appreciating the quality of the food at the Banff Springs, in addition to the life-long memories that are forged in that kind of intimate setting.

While the virtual world has presented us with many unique solutions to COVID-related problems, some things, such as celebrations, are too substantial to re-create.

Public engagement efforts transitioned

Edmonton’s ‘Bacon Day’ features the best food and beverage creations of Workshop Eatery’s Paul Shufelt, who loves to highlight local ingredients. In 2018, the event included a pig roast.

COVID-19’s impacts on food processing have been well-documented, but further down the value chain, the successful execution of food-related marketing activities has continued to bolster farming communities by encouraging support for Canadian-grown and -raised food.

In the past, consumer engagement opportunities have focused on extoling the virtues of high-quality Canadian food, with opportunities to meet a farmer or taste a local dish prepared by a talented chef. Events and festivals are an effective way to showcase where food comes from beyond the grocery store, but gathering limits have smothered some of the momentum like a wet blanket.

With that in mind, COVID-19 restrictions have meant that we need to find new ways for consumers to take in memorable experiences without being in direct contact with those offering the experiences, and this has taken shape in different ways.

“Like many other businesses in the province, we have been experimenting with solutions to continue serving our customers safely, creating the best possible experience in spite of conditions,” said Paul Shufelt, Chef & Proprietor, Workshop Eatery. “Some of those concepts have done better than others, and going forward, we are looking to leverage our lessons learned in a world that is embracing new ways of appreciating great food, during a pandemic or otherwise.”

Shufelt is a proud partner of Alberta Pork, having been involved in multiple events over the years celebrating all things piggy. In addition to his flagship restaurant, he operates two Woodshed Burgers locations in Edmonton, acts as an ambassador for the local culinary scene and has appeared on Food Network Canada’s “Fire Masters” as a contestant. Being on the cutting edge is in his nature, and like many other innovative food industry players, COVID-19 has allowed him to flex his creative muscles.

Rather than offering dining room service or hosting private functions, restaurants across the country have made the move to high-end takeout options, including full gourmet meals, along with newer concepts, such as cocktail packages. Cooking classes and demonstrations, usually reserved for public spots, have moved online, giving viewers a glimpse into processional kitchens without the hassles of finding physical space or needing to consider aspects of food safety in the service environment.

Porkapalooza welcomes BBQ competition teams from across western Canada and is the country’s largest certified BBQ event.

The Porkapalooza BBQ Festival is a world-class cooking competition, sanctioned by the Kansas City Barbeque Society (KCBS) – the world’s largest organization of barbeque and grilling enthusiasts. Historically, Porkapalooza has afforded groups like Taste Alberta and Alberta Pork the opportunity to collaborate and bring agri-food education to the masses. Since 2014, Porkapalooza has taken place annually in Edmonton, with the exception of 2020, when the event was stayed until May 2021, and then further moved to August 2021. In the early days of COVID-19, when it was uncertain whether restrictions would last two weeks, two months or two years, Porkapalooza’s path forward was unclear but ever-optimistic.

“We are incredibly eager to get back to hosting our competition for all the BBQ teams that invest their own time and money to take part,” said Mark Bosworth, Chair, Porkapalooza BBQ Festival Society. “Our event showcases some of the best food around, from some of the best cooks and pit masters you’ll find, which is a testament to the great work of everyone in the value chain – all the way back to the farmers who raise the products we are privileged to use.”

In 2021, Porkapalooza will look a little different, as this year’s competition is closed to the public – a difficult decision made earlier in the year, prior to the first postponement, out of an abundance of caution. In previous years, Porkapalooza came with a well-attended public festival component, including interactive tours of the cooking area, food stage demonstrations from local pros, plus plenty of family-friendly entertainment to ensure an enjoyable experience for everyone. While the festival’s valued guests will not be able to attend in-person this year, there are still plenty of opportunities to participate online, including prize contests and other event-related content shared through social media.

In years past, team attendance has pushed upwards of 50 cooking crews, mostly from Alberta and Saskatchewan, but also from as far away as British Columbia, Manitoba and Ontario. Given restrictions that were in place when the festival was first being organized, and on account of event logistics, Porkapalooza this year will host close to 30 BBQ teams to build excitement heading toward the 2022 event, which will hopefully inspire even more teams to participate, with public guests welcomed back. 

Arriving at the ‘new normal’

During ‘National Takeout Day’ in mid-April, organized by Restaurants Canada, social media users posted pictures of their food from local establishments, including these pork and beef taco boxes from La Patrona in Sherwood Park – a suburb of Edmonton.

When it comes to telling the story of the Canadian agri-food value chain, the most authentic and resonating way to accomplish that goal is to place consumers directly into conversations with producers. And for producers, being aware and informed of industry issues around them is a necessary condition of being able to tell that story in a compelling and accurate way.

Natural opportunities to facilitate conversations between producers and consumers are presented with in-person events, generating widespread return-on-investment for the entire industry. Now more than ever, digital platforms have become critical to transmitting information, by using blogs and social media to promote content like photos and videos that try to capture a larger total experience and story.

With lockdowns and other restrictions in place to keep us safe, creating meaningful engagement has proven difficult. People have gradually become ‘Zoomed out’ with ‘COVID fatigue’ – the cultural symptom of a public health emergency, whether one falls ill or not. Most people today spend at least some of their working day behind a computer, and spending leisure time staring at a screen has become less appealing as time goes on.

If you were wary of the ‘new normal’ just as COVID-19 was starting to ramp up, the good news is that the bitter pill of change is getting somewhat easier to swallow, with the end of restrictions coming into view. As we all anticipate bigger and better things coming in the Canadian agri-food industry, COVID-19 has shown us new ways of flourishing under less-than-ideal circumstances.

U.S. Slaughter Numbers Keep Low

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Pork Commentary, August 3rd, 2021
Jim Long, President-CEO, Genesus Inc.

This past week U.S. slaughter numbers came in 210,000 head less than a year ago. The fourth week in a row that U.S. slaughter has been considerably lower year over year. This past week, down 9% year over year, in the month of July down close to the 9%.

The U.S.D.A. projected in the Hogs and Pigs Report an increase of 2% year over year in the 180 lb. plus and 120 lb. plus categories. Hog weights have not increased in July staying in the 278 lb. liveweight range. Appears to us U.S.D.A. June 1 Hogs and Pigs Report has overstated inventory which of course has hurt prices for producers.

What’s the saying about most fearful words in the English language?
“We are here from the Government to help you.”

Other Observations

Packer-owned hogs which are significant numbers (Thursday, 163,000 per day) have dropped big time in weight the last few weeks; in May running in the 290s, last Thursday averaged 277.19 lbs. Tells us Packers need to pull their own hogs to keep plants running and meet commitments to supply retail, foodservice, and export agreements. We are heading into the fall with a market hog inventory very current.

Mexico

U.S. Pork Export Sales last week were 38,500 metric tonnes. A good number with Mexico leading the way up 28% year to date.
Mexico last week bought 24,000 tonnes higher than any week ever bought by China.

Europe

Europe is expecting the economic effects of recent decreased pork exports to China. Feeder pigs of 30 kg. (66 lbs.) are currently selling for average price of about 250 DKK ($40 U.S.), well below cost of production.

In Spain, hog price has declined from a record 1.55 Eur/kg. (84ȼ lb.) on June 10 to 1.29 Eur/kg. (70ȼ lb.) July 29. Much of the decline is related to the decrease in China imports and lots of pork throughout Europe.


We expect to see sow herd liquidation to continue in parts of Europe as hog prices relative to feed prices are putting many producers below cost of production.

Why bellies are nearly double the price of loins?

You ever ask the question why bellies are nearly double the price of loins? Consumers vote with their money. Last Friday U.S. Pork Cut-out Bellies $2.22 lb., Loins $1.13 lb. Our bet, the reason Bellies (Bacon) has a better taste. It’s not because it’s leaner.


If Loins brought the same price as bellies, the overall carcass value would go up by about $50. Seems like real money and a good reason to figure out how to make better tasting loins. We need to stop chasing pennies on the alter of costs when there are dollars in the upside of better-tasting product. We need to stop thinking like farmers and more like marketers.

Consumers paying way more for Beef. Why? Taste! The money can be got in the market with a better product. It is already.


Good news for producers waiting to get rid of some old sows.

Big Sows 90ȼ lb. Never been a better time to sell old sows and buy some gilts and have money left over.

NPPC still missing in action on CFAP 1 top-up.

Grains and cattle got their top-up in billions of dollars. Where is NPPC? Executives too busy cashing their big fat paycheques. Why do they care it’s just the farmers?

Need new dynamic blood to drive NPPC forward, having twenty years of flat line per capita pork consumption is no sign of success. Any other group would have been gone long ago with such mediocre results. The worst of it, they spend the NPPC dollars to tell us how good they do. It’s a Washington elite mindset. Sometimes you must drain the swamp.

Last week readers contacted us about what to do on CFAP 1. We answered – Call your Senators and Congressman and demand the commitment of CFAP 1 top-up be honored.