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ThePoultrySite Newsletter - 8 March 2012

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The Poultry Site

Thursday 8th March 2012.

Jackie Linden - ThePoultrySite Senior Editor

Jackie Linden
Senior Editor

Editorial – Industry Prospects are Looking up

Following a long period of volatile commodity prices, financial restraints, tight money markets in the banking sector and a consumer reluctance to spend, the green shoots of recovery for the meat processing sector could be gradually emerging.

A recent Fitch Ratings’ quarterly update on the US protein industry did not paint a particularly rosy picture showing pressure was still on the processors. Processing margins are compressing because wholesale pricing is not always keeping pace with changes in livestock costs.

However, companies outside the US, and perhaps not surprisingly, in the BRIC countries of Brazil, Russia, India and China, have announced new investments.

For example, Brasil Foods S.A. (BRF) of Brazil recently established a joint venture with Dah Chong Hong in China aimed at gaining access to the Chinese distribution market, engaging in local processing, developing the Sadia brand in China, and reaching retail and food service channels in continental China, Hong Kong and Macau.

These positive and optimistic trends can also be seen in the latest results from some of the leading meat and poultry processing companies. For example, Tyson Foods reported a rise in first quarter sales of 9.4 per cent compared to last year up to $8.3 billion and Sanderson Farms reported net sales for the first quarter of 2012 at $517.8 million compared with $427.7 million for the same period a year ago.

In Brazil, meat processing giant, JBS, posted consolidated net revenue of 15,567.8 million real (BRR) in the third quarter of the year, 10.6 per cent higher than in the third quarter of 2010. In its quarterly report, Marfrig posted record net revenues of BRR5.52 billion in the third quarter of 2011, and a 180 per cent increase in operating cash flow from the previous quarter.

The prospect of better times ahead for the US poultry industry in 2013 and 2014 was highlighted in a new report from the Food and Agricultural Policy Research Institute (FAPRI).

Despite struggling for the past three years due to increasing costs of production, the industry could see expansion from 2013 onwards, it says.

The chicken industry is struggling, as output prices have failed to keep up with recent feed cost increases. Production is expected to decline in 2012 for the second time in four years. Prior to 2009, the industry had not seen contraction in any year since 1973.

However, high beef and pork prices due to overall meat supply tightness will allow poultry producers to profitably expand in 2013 and 2014.

In 2011, the spread between wholesale turkey and chicken prices was at its widest level since 1985. Despite production growth in the last two years, the nine per cent contraction in 2009 turkey production has kept supplies relatively tight compared to chicken, according to the FAPRI report.

Chicken prices strengthen in 2012 and 2013 as the 2012 production decline and tight overall domestic meat supplies force consumers to pay more.

Unlike the beef and pork industries, chicken export growth has weakened considerably in recent years. FAPRI says that many nations are striving to control food inflation and reduce their dependence on meat imports by developing their own chicken industries. The US chicken industry will be increasingly dependent upon domestic demand growth if it is to continue to expand in the next decade.

Still in the US, Agriculture Secretary Tom Vilsack made it clear in his speech to a standing-room-only crowd of US farmers and ranchers at Commodity Classic last week that the most important item on the US agriculture agenda is passing the Farm Bill and getting it done soon.

US Trade Representative, Ron Kirk, has said that the US will initiate dispute settlement proceedings against India before the World Trade Organization (WTO) to challenge its longstanding prohibition on the import of US poultry.

Salmonella cases in humans in the EU fell by almost nine per cent in 2010, marking a decrease for the sixth consecutive year, according to the European Food Safety Authority (EFSA) and the European Centre for Disease Prevention and Control (ECDC) annual report on zoonoses and food-borne outbreaks in the EU for 2010.

And finally, turning to bird flu news, reports of new outbreaks in poultry have come from Viet Nam and Nepal. There has been an unofficial report of another human victim of H5N1 flu in Indonesia, and WHO reports new cases in Bangladesh and Viet Nam in the last week.

Jackie Linden

New Look at Disease Prevention
Disease prevention was a theme of one of the sessions at the International Poultry Scientific Forum (IPSF) this year, writes ThePoultrySite senior editor, Jackie Linden - a session that illustrated a number of different approaches to maintaining poultry in good health.

Americas Produce 20 Per Cent of the World’s Eggs
While the Americas region still accounts for one in five of the world's eggs, the annual rate of increase there has slowed to less than one per cent, according to Terry Evans in his new series examining the trends on egg production across the globe. More than 40 per cent of the region's eggs are produced in the US but continued rapid expansion in output is forecast for Argentina, Brazil, Colombia and Peru.

Predicting the Environmental Impacts of Chicken Production Systems
Feed accounted for the majority of the overall environmental impact of both broiler and egg production in typical UK systems, according to researchers based at Newcastle University, and less intensive systems were associated with greater overall environmental burden as a result.

Urolithiasis in Male Broiler Breeders
Broiler breeder males fed a commercial breeder diet developed kidney asymmetry and urolithiasis, according to researchers at the University of Arkansas. They attributed these effects to the high calcium level in the diet and suggested this may increase mortality levels in breeder males.

Supplementating Broiler Diets with Guanidinoacetic Acid
Guanidinoacetic acid (GAA) included in diets without animal protein significantly improved broiler performance, increased breast meat yield and affected some meat quality parameters, according to new research from Belgium.

Organic Acid-Based Products - Market Evaluation and Technical Comment
An overview of some acidifiers currently available on the market by Angela Riemensperger (Product Manager for Biomin), demonstrating the growing importance of this group of products.

Land Application of Livestock and Poultry Manure
Factors affecting the fertiliser value of manure and recommendations for application are covered by Mark Risse, Extension Engineer at the University of Georgia's Department of Biological and Agricultural Engineering, as well as practical aspects on how much manure can be applied and handling solids in liquid manure.

New Large Animal Territory Manager for Ceva
UK - Ceva Animal Health has appointed Charlotte Hobby as the new Large Animal Territory Manager for North Wales and the West Midlands.
Indbro Research & Breeding Farms Conducts Broiler Trials
INDIA - According to a report by Dr T. Kotaiah from Indbro Research and Breeding Farms, when the ranking of two genetic groups change under different environments, it is called Genotype Environment interaction.
Petersime Presents New Distributor for Japan
JAPAN - From 2 March 2012 onwards, the Japanese company Hytem Co. Ltd., established in Kakamigahara, Gifu, will be distributing Petersime's products and services in the Japanese market.
Maximise Flexibility & Profit with Enzyme Combinations
GLOBAL - High energy prices and the volatility of grain, fat, and oilseed meal markets have placed pressure on nutritionists to apply dietary strategies that reduce the impact of increasing raw material prices on the cost/kg of broiler produced, according to Danisco.
Ceva Continues Rapid Growth in 2011
FRANCE - During 2011 Ceva Santé Animale achieved 13.3 per cent growth through €530 in net annual sales, the first time the company reached the half billion euro mark. The company also invested record levels in research and development to fund future growth investing over €50m close to 10 per cent of sales. All of Ceva's geographic zones achieved an increase in operating profit.
Systems Integration Set to Exhibit at Foodex
UK - Food software specialists, Systems Integration, are set to exhibit at Foodex. The bi-annual event is due to be held at the NEC in Birmingham on the 25 - 27 March.
Tracking IB as the Crow Flies
Serology and polymerase chain reaction testing might be effective ways to track the prevalence and scope of infectious bronchitis (IB) variants, but sometimes circumstantial evidence and even old-fashioned farmer intuition can pick up patterns as well.


2012 Seminar on Poultry Reproduction Organized by IMV Technologies
IFA Meets French, Italian & Spanish on CAP 2013
Life Technologies Acquires LSI


Scientists Improve Health & Welfare of Organic Laying Hens


HPAI Reported in Chhukha
Bhutan Reports More HPAI at Chhukha District


PAAFR Bans Poultry, Eggs from Sri Lanka, Australia

   United Kingdom

Flavour Key to Repeat Christmas Business
Protect Your Pet Pigs and Backyard Chickens
Free–Range Markets Must See Price Increase
Clear Labelling Needed for Non-Stunned Animals
Turkey Leads Increase in UK Poultry Meat Output


Meat Demand Firm in Uruguay
Uruguayan Meat Consumption Rises


Spanish Chicken, Egg Prices Surge


US Likely to Drag India to WTO
Green Shoots of Recovery Emerging?
BIRD FLU: HPAI in Bhutan, Viet Nam & Hong Kong; Taiwan Culls Chickens
Kuwait Lifts Ban on All US Poultry Products

   United States

Cargill Offers Re-usable Egg Carton with Poultry Feed Purchase
Corn Used More for Ethanol than Feed in US
Key Nutrition Info for Popular Meat & Poultry Products
Pilgrim's Pride's Completion of Rights Offering
Meat Demand High Despite Consumption Trend
Vilsack: Passing US Farm Bill is Critical
Anticipating the 1 March Corn Stocks Estimate
Over-regulation Threatens Domestic Livestock Production
NCC Supports Generic Label Approval Rule
NCC Praises Passage of Bill to Stop Man-Made California Drought
NFU Outlines Farm Bill, COOL Priorities
PSA Supports Modernisation to Poultry Inspection System
Tennessee Board Supports Poultry Plant
US Announces WTO Action Against India
Pilgrim's Pride Raises $200m in Rights Offering
Expert Discussions on Antibiotic Use in Animals Agriculture
CME: Varying Future for US Poultry and Meat Exports
Despite Challenging Times, Expansion Ahead for Industry


ICA Penalises Farms for Non-Compliance of Biosecurity


HKScan Sees Sales Rise

   Dominican Republic

Major Losses for Poultry and Hog Sectors


New Standards for Egg Food Safety
New Fees for Exporters of Poultry Feet
ABARE Outlook: Strong Performance Forecast
2012 Prospects Look Strong
Biosecurity Underpins Export Trade


Researchers Find SE Persists on Layer Farms
Egg Processors Suffer as Prices Rise

   Hong Kong

Hong Kong Reports More HPAI in Wild Birds

   Viet Nam

More HPAI Reported in Quang Ninh


Chickens Culled in Taiwan After H5N2 Detection


India Contests US Charge of Denying Poultry Market Access

   Palestinian Territory

Prices to Rise Due to Bad Weather


RJ Feeds Acquires Tanzania Poultry Firm


Indonesian Bird Flu Suspect Dies


Newcastle Disease Breaks Out in Tuscany


Ag Minister Moves to Investigate Egg Price Hike

   European Union

CAP: European Farmers React to Proposals
Salmonella Cases Fall, Campylobacter Increasing

   Russian Federation

Cherkizovo Transfers Shares to A1 List on MICEX

   Korea, South

Seoul Bans Poultry Imports from Taiwan Following AI Outbreak


Protocol on Handling of Avian Flu Suspected Birds Issued


New Technology Offers Barley Digestible Energy Analysis


Producers Target 70 Million Day-old Chicks


Liberals Call for ‘Antibiotic–Free’ Label


OIE: Further Newcastle Disease in Israel


Gov't to Combat FMD and High Poultry Prices


Chicken Industry About to Hatch

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