Hog Producers' Risk Management Attitudes and Desire for Additional Risk Management Education

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Hog producers in Indiana and Nebraska were surveyed about sources of risk, effectiveness of risk management strategies, and prior participation in and desire for additional risk management education. Ownership of hogs by the producer, size of operation, and age did have significant effects on ratings of both sources of risk and effectiveness of risk management strategies. Probit analysis found age, prior attendance, knowledge and prior use of the tool, level of integration, and concern about price and performance risk have significant effects on interest in further education about production contracts, futures and options, packer marketing contracts, and financial management.

The value assigned to six different rooting materials by growing pigs

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Several studies have shown that straw provides an outlet for the foraging and explorative motivation of pigs and that the provision of straw reduces abnormal manipulation of pen mates (e.g. Bolhuis et al., 2005). Alternatives to straw have also been investigated, for instance peat (Beattie et al., 2001), which was found to have the same beneficial effect as straw, and which was preferred to straw (Pedersen et al., 2005). Various so-called ‘toys’ have also been suggested as rooting materials. The pig producers may prefer the toys, because they do not interfere with the slurry system, but pigs prefer chewable toys to more ‘durable’ toys (Apple and Craig, 1992). Furthermore, straw bedding (Guy et al., 2002; Van de Weerd et al., 2005, 2006) and mushroom peat (Beattie et al., 2001) are the only rooting materials that have been reported to reduce tail biting. The rooting materials must enable the pigs to perform investigation and manipulation, and the literature suggests that materials that are complex, manipulative and edible (Van deWeerd et al., 2003; Olsen et al., 2000) stimulate the most investigation and manipulation. In a recent study Pedersen et al. (2005) developed a method using concurrent schedules of reinforcement to assess the strength of pigs’ preferences for different rooting materials. When animals work on concurrent schedules of reinforcement for food, or other valued resources, they adjust their efforts according to how difficult it is to get access (the workload) to either of the two resources and the quality (the value) of the two resources in relation to the underlying motivation. Based on the trade-off between workload and value we can calculate how much more they value one resource relative to the other. The aim of the present experiment was to assess the relative value of six rooting materials based on the cross point between demand functions derived using concurrent schedules of reinforcement. Twelve pigs were tested with all six combinations of the reference material (peat) and one of the six test materials in a balanced design. The cost of access to both reference material and test material was varied. For each combination, demand functions for both materials were estimated as a function of the cost of the reference material leading to a cross point of the two demand functions. The cross points revealed the following ranking (the lower values are the most preferred): maize silage with straw (14.2 (9.5–18.5)), spruce chips (18.0 (13.8–21.9)), compost (18.2 (13.8–22.3)), sisal rope (25.5 (21.4–29.6)), seed grass hay (27.1 (22.7–31.8)), chopped straw (28.5 (24.5–32.8)). All the tested materials were valued as much as chopped straw, but maize silage with straw, spruce chips and compost were valued higher. The results confirm that pigs prefer more complex and compound rooting materials.

How Pigs are Raised

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Farmers know that responsible and humane care is important to the well-being of pigs. They know from experience that a content and healthy pig also makes good economic sense. After all, raising pigs is a farmer’s livelihood, one that will support him and his family for years to come. Farmers follow recommended codes of practice, complete how-to manuals that help them provide all the important elements of proper animal care. Manitoba’s pig industry has been a leader in promoting welfare practices and researching new and better ways of doing things. Manitoba’s Animal Care Act requires farm animals and pets to be treated humanely. Regulations under the Act draw upon various codes of practice to protect livestock. Today, pigs are raised through their growth stages indoors in various kinds of specialized barns. A barn housing pregnant sows is called a gestation barn. A pregnant sow delivers her piglets in a farrowing room, which has supplemental heat and an appropriate floor surface for the sow and piglet. The piglets are raised in a nursery barn. Again, supplemental heat is provided. There are specialized feeders and drinkers for the small piglets. Once the piglets grow to be 27 kgs (60 lbs), they are moved to a feeder barn. They will stay there for up to 18 weeks or until they reach a market weight of 113 kgs (248 lbs). Some farmers raise hogs through the entire process in a “farrow to finish” operation; others simply buy weanlings or piglets and feed them to market weight. Most pigs today are raised with fewer diseases than years ago. In the past, when pigs lived outside, they had parasites and trichinosis. Now, pigs live in facilities that have biosecurity programs such as a shower-in policy. Barns are sheltered, the environment is computer controlled, and water is treated and tested. This means that minimal medications are needed to keep pigs healthy. These “high-health” farms have restricted access and employees in these facilities shower in and change clothes daily to maintain high herd health. It is in the farmer’s best interest, both economically and from a swine welfare standpoint, to keep animals healthy. Each sow is identified with a numbered ear tag. Health, reproduction, and breeding records are kept for each animal. Sow health is checked at least twice a day. Fresh water is available at all times; some pens are fed automatically, others by hand. When sows are brought to group pens, there may be some fighting as they establish a pecking order. Sows should not be further mixed with other groups during breeding. It’s important to keep the sows as stress free as possible to prevent litter loss. Producers keep floors clean by washing them down regularly with high-pressure hoses. Clean, dry, non-slip flooring minimizes injuries and helps keep the air fresh. Animals are moved in an orderly fashion through aisles with gates opened and closed to direct them. Individual dry sow stalls reduce competition for food and prevent fighting or tail and vulva biting. They also help in reducing stress to the sow during the early critical stages of pregnancy. In stalls, sows can easily be examined individually for health and treated if necessary. Pregnancy tests are conducted by ultrasound and, if found negative, sows return to the breeding area. The ability to pregnancy test greatly increases farm productivity. Cleanliness helps keep pigs healthy and thriving. Most hog barns collect manure in holding pits beneath the barn. Floors are slatted so liquids and solids fall through to the pit. Barn workers regularly sweep and shovel pens and stalls to push the manure into pits. Floors, pens and walls are pressure washed and disinfected between each group of pigs. The pits are emptied routinely to an outside storage facility. The liquid manure is held in storage and applied to fields to feed crops. Hog manure is a valuable organic fertilizer and soil conditioner. Farmers follow provincial regulations to ensure manure is handled in an environmentally acceptable manner. Western Canada’s hog industry looks to the future as both a challenge and an opportunity. Our producers have been leaders in responsible environmental stewardship and animal care initiatives. Farmers are innovators. They always find better ways of doing things. Current swine housing systems are continuously evolving to improve efficiency, herd health, and productivity. Farmers are committed to developing new alternatives and providing for increased welfare and comfort for their pigs.

COCCIDIOSIS: Effective treatment remains in limbo

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Studies are currently underway to determine the level of coccidial activity in swine herds in Canada, which in turn could form the basis for obtaining approval for a suitable anti-coccidial drug, hopefully Baycox, for pigs. Preliminary results from these studies by Dr. Andrew Peregrine and his research team at the Ontario Veterinary College, University of Guelph, show that cocci is present and active in about 70 per cent of herds in Ontario, a level consistent with reported infection levels in many European and other countries around the world.
This level of cocci activity would also indicate that considerably more than the paltry two to four per cent of the pigs reportedly being treated with Baycox prior to its removal could benefit from treatment for cocci, a debilitating disease even at the subclinical level. So what can the producer do? Is there a suitable alternative drug for use against cocci? The first thing is to develop a plan of action. The plan can be laid out in a simple, straightforward, four-step format:
• Observe and recognize the clinical signs of cocci.
• Get a definitive diagnosis.
• Establish disinfection, hygiene and management procedures.
• Use an alternative treatment, if available.

Enhancing Sow Reproductive Performance By Organic Tracemineral (Bioplex and Sel-Plex) Dietary Inclusion

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Mineral nutrition is perhaps the most complex area of animal nutrition. Sows today are capable of a very high production level, much higher than naturally occurs. Because of this we think that minerals must be supplemented to a higher dietary level than is solely available in grains in order to meet the modern sow’s reproductive demands. Research has demonstrated that pigs fed inorganic minerals from an organic source increases the number of live born pigs, reduces days to puberty, gives heavier litter weights, and reduces wean-to-estrus interval. However, too much inorganic mineral can lead to poor reproductive performance. Researchers Mahan and Peters fed sows one of four diets and followed them through 6 parities. The sows that were fed organic minerals (such as Bioplex and Sel-Plex) in gestation and lactation diets resulted in one additional pig per litter when both NRC and Industry requirements were met. When inorganic minerals were fed, the Industry requirements resulted in poor reproductive performance, but the NRC requirements resulted in higher reproductive performance. Conclusively, feeding organic minerals above the NRC requirement will increase reproductive performance. Feeding inorganic minerals in excess may result in detrimental effects on the sow’s reproductive performance.

China: EXPORT MARKET PROSPECTS AND ALBERTA’S AGRICULTURAL SECTOR

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The emergence of China as one of the world’s largest potential markets has led to this nation becoming the focus of increasing attention for economists, marketers and politicians. Reflecting anticipations of China’s expected role as the world’s future largest market for food, this paper focuses on the identification of opportunities and constraints to Alberta’s expansion of agricultural-based exports to China. The analysis is based on: collection and assessment of data relating to China’s importation of these agri-food products during the five year period from 2001 to 2005; analysis based on export values and market shares of Alberta and major competitors; overviews of some relevant literature; and insights from interviews with a small number of selected, knowledgeable North American exporters.
Despite volatility in the values of individual products exported from Alberta to China, Alberta’s total agriculture exports to China reached $291.71 million in 2005, representing an increase of 198.75% in the five year period from 2001. (All values are US current dollars unless otherwise stated.) During this period, China’s aggregate imports of these products increased by 49.81% to $4,196.946 million and Alberta’s market share in the aggregate of agricultural and food products it exports to China grew from 3.49% to 6.95%. Thus Alberta’s agricultural export performance can be broadly assessed to have improved during the five-year period under consideration.
Alberta’s (average) market shares of China’s imports approached or exceeded 5% for cereals in aggregate (6.7% market share on average for 2001-2005) and all hides and skins (4.0% during this study period). Despite longstanding dominance of these traditional commodities in Alberta’s exports to China, Alberta’s market shares of major commodity exports tended to be very variable (wheat) or have declined (hides). However, export values and market shares for canola seed (intended for processing) and barley have tended to increase and this is also the case for several semi-processed agricultural products (malt; canola oil) and processed food exports (frozen prepared potatoes). Exports of these particular semi-processed products are growing appreciably, although from small bases, and had achieved appreciable market shares by 2005. Successful market access, growth in market share, and potential for increased exports also applies for pork, some bovine products and related animal byproducts. Natural health products, like antler velvet, have varied but appear to have considerable potential.
A number of potential ’import gaps’ are identified. These are products for which China’s imports have grown significantly, but appreciable Alberta exports have not been achieved, although growth appears to be feasible. Identified import gaps include bovine tongues which, together with other bovine products, are currently adversely affected by incidents of BSE in Alberta/Canada. Other products for which there are potential ’import gaps’ that should be accessible to Alberta exporters are potato starch, fescue seed, live swine for breeding, and animal fats.
Upon China’s accession to membership in the World Trade Organization (WTO) there were considerable changes in the levels and structure of tariffs for many agricultural imports. Tariff levels were considerably reduced and the practice of staggered (i.e. increased) levels of tariffs along value chains, which had appreciably increased the effective rate of protection of China’s domestic food processing industries to the considerable disadvantage of exporters, was reduced. Nonetheless there are several concerns about China’s tariffs for agricultural products of interest to Alberta/Canada. China’s 2006 tariffs are observed to be as high as 65% for an important category of commodity exports from Alberta (wheat); to be appreciably higher for the processed forms, rather than the commodity form, for another significant commodity export (malt with a tariff rate of 10%, relative to barley at 3%); and to be higher for an important Alberta export than for substitute products from competitors (canola imported for processing at 9% compared to soybeans, which is a major oil seed competitor, at 3%). A potential disadvantage to Alberta exporters arises from the slow pace and discouraging results of WTO trade negotiations for agricultural products. This has, moreover, encouraged a number of competing exporting nations (including Australia, Brazil, Argentina and New Zealand) to seek trade alliances with China, raising concern regarding potential trade displacement for others, including Alberta/Canada. Other disadvantages to Alberta exports arise from the ways in which food standards are applied in China and a lack of protection of product identity that is associated with fraudulent claims of branded high quality product in instances where lower quality or domestic product has been fraudulently substituted. Encouragement of China’s effective participation in the Codex Alimentarius system of food standards could assist with some issues of standards anomalies. Exporters’ efforts to develop and maintain close associations in supply value chains are also necessary in the China market if quality maintenance and accurate identification of products and their origins are to be achieved and defended.
While appreciating the contributions of government facilitators and the commodity trade associations to promote exports to China, industry spokesmen indicate that the sheer size of the resources applied to these activities by the United States in particular provides American exporters with a relative advantage. This suggests that export promotion assistance may well be an issue that should be raised in multilateral trade negotiations. Industry informants should be helpful in future delineation of the scope of this issue.
Overall, trends in consumption and the tendency for westernization of Chinese diets suggest a potential in the China import market in processed and convenience-focused food and beverage products, health foods and snacks, organic foods, and meat, fish and seafood. As indicated by the rapid increase in Alberta’s exports of frozen processed potatoes, this potential can be achieved by Alberta producers and exporters.

Behaviour of pigs with viral and bacterial pneumonia

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In the United States, 99% of the swine herds are infected with Mycoplasma hyopneumoniae (Mh) and the prevalence of porcine reproductive and respiratory syndrome virus (PRRSV) in U.S. swine herds is estimated at 60–80% (Zimmerman et al., 1997). These microorganisms are the two most common pathogens isolated from pigs with porcine respiratory disease complex (Thacker, 2001), and infectious disease is arguably the single most important factor affecting the performance and welfare of growing pigs. Although the growth performance and welfare of pigs with an acute infection is diminished, they can be improved by (1) reducing the severity of infection; (2) treating the symptoms of infection with, e.g., nonsteroidal anti-inflammatory drugs; and/or (3) facilitating recovery to shorten the duration of time spent clinically ill. One strategy to achieve the third aforementioned goal is to facilitate convalescence. It has been suggested that sickness behaviours including inappetence, increased sleep, and lethargy, and are part of an organized host defense strategy (Hart, 1988; Johnson, 2002). The decreased activity may better enable animals to redirect nutrient resources to support immunological defenses; it also facilitates heat conservation, which is critical for producing the beneficial febrile response. Determining how infection alters behavioural patterns is a prerequisite to assessing how current swine management practices influence convalescence. Rest is presumed to be an important part of the recovery process, but resting behaviour of pigs with an acute respiratory infection has not been assessed. Therefore, the present study reports the behaviour of pigs inoculated with Mh and PRRSV, alone or in combination. This study was part of a larger one that also determined the effects of Mh and PRRSV on growth performance, whole-body composition, and circulating inflammatory cytokines (Escobar et al., 2004). Sixty-four pigs were subjected to one of four treatment combinations (2 X 2 factorial) of Mh (inoculated at 4 weeks of age) and PRRSV (inoculated at 6 weeks of age). The four treatments were (1) control, (2) inoculation with Mh, (3) inoculation with PRRSV, and (4) inoculation with both Mh and PRRSV. Pigs that were included were video recorded during the 18 h light phase for 13 days beginning the day of PRRSV inoculation. Food intake and time spent feeding, active (standing, including walking, sitting, or feeding) and lying were determined. When pigs were lying a determination was made as to whether they were lying ventrally or laterally, and in contact with a penmate. Body temperature was measured 7 and 14 days after PRRSV inoculation. After inoculation with PRRSV, there was no significant main effect of Mh or interaction between Mh and PRRSV for food intake, body temperature, or any behaviour measured. Thus, the four treatments were pooled to form two treatments designated PRRSV negative (control and Mh; PRRSV-) and PRRSV positive (PRRSV and Mh with PRRSV; PRRSV+) and analyzed. Each day after PRRSV inoculation, PRRSV+ pigs spent less time (P = 0.005) feeding compared to PRRSV- pigs, and the decrease in feeding time was associated with a decrease in food intake (P < 0.001). PRRSV+ pigs decreased (P < 0.001) activity after inoculation with PRRSV compared to PRRSV- pigs and the amount of time spent lying was greater (P < 0.001) in PRRSV+ pigs compared to PRRSV- pigs. Furthermore, PRRSV+ pigs spent more of their total lying time in a ventral position (P = 0.06) and in contact with a penmate (P < 0.001) compared to PRRSV- pigs. Body temperature was increased (P < 0.001) in PRRSV+ pigs 7 days after PRRSV inoculation. Since sickness behaviour and fever are adaptive responses to infection, these data indicate that pigs with an acute PRRSV infection evoke a behavioural strategy that may support recovery.

How to Get the Support of Your Banker

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The world market for pork meat has been more difficult for the Canadian industry in 2005 and 2006. The world exports of pork meat that had an annual growth exceeding 10% since 1993 have now plateaued. Canadian production represents only 2% of the production worldwide; however, Canada is a very large exporter with 21.8% of the world exports in 2004. We are extremely dependent on the export market. 50% of the Canadian pork production is exported; since Canadian consumption of pork is relatively stable, most of the increases in production are directed toward the export market. As a result of the decrease of the US dollar relative to international currencies, Canada becomes less competitive on the American and Japanese markets. Canadian exporters had to turn to other markets (Australia, Mexico, Taiwan, Russia, etc). We have also been the arrival of new international competitors (e.g. Chile). In addition, our traditional opponents (e.g. United States) seem to do better and the markets are always more demanding. The number of producers and pork production itself has diminished, thus producers are in financial crisis. The implementation of strategies to control disease is essential. The producers and meat processors will have to lower their production costs to improve their competitiveness, to better coordinate different aspects of the industry and to better serve specialty markets (which are less sensitive to market prices). Even with all the unfavourable events affecting the swine producer’s earnings and although the risk rating of this portfolio is deteriorating slightly for the last 2 years, the National Bank of Canada remains confident that the majority of our best clients will overcome the current crisis. Historically, our swine producers, processors and exporters have overcome the challenge of that competitive market. What is a good business plan in today’s pork market? A good business plan explains to your partners why the company will succeed in the context of the actual swine industry market. This written document must describe the future orientation of your company and demonstrate your strategies to minimize the risk associated with your industry. Agricultural bankers expect regular business plan updates from the biggest borrowers. However, small farm owners generally prepare a brief business plan at startup, when transferring the company or when a major change occurs within the business (very often when a new investment or an additional loan is required). Your banker’s evaluation of your business is a mix of objective factors (financial ratios) and subjective factors (your integrity, your entrepreneurship and your management qualities). In difficult periods your integrity, your management aptitudes and your previous accomplishments will make all the difference for your banker’s confidence. Make sure that your account director knows your company and your team well. Be transparent and require the same transparency from your banker. Have a good analysis of the situation and an accurate estimate of your financial needs. At the beginning of a low cycle, be certain to have the liquid assets to survive the crisis: A cash flow budget to the best of your knowledge according to your production costs and the anticipated prices (for pigs and grains) by the analyst remains the best tool. The pork market continues to have price cycles. A good business plan is necessary in all parts of the cycle. It will help your business thrive during good times, prepare for poor times and help keep your banker and investors confident throughout.

Global Growth in Pork Production

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The global pork industry is evolving at a rapid pace. It is characterised by increased levels of global competition, expansion of industrialized production, vertically integrated supply chains and production of differentiated products to meet the needs of increasingly demanding consumers. For Canadian hog producers, gaining an appreciation of the global operating environment, especially the emergence of new hog production regions, is important in assessing the future direction and profitability of the industry and their own enterprises. This knowledge becomes even more acute when considering the current operating environment in Canada; an appreciating currency, high feed costs, labor shortages, processing sector restructuring and ever-increasing government regulation. World pork production has increased more than 37% since 1997, from 74.4 million tonnes to 101.9 million tonnes in 2007. China continues to completely dominate global pork production, whereas the European Union’s (EU) share of total production has fallen from close to 25% in 1997 to 21% in 2007. At a cursory level the profitability of hog production is dependent on six fundamental pillars: access to feed grain; accommodation and other infrastructure costs; regulatory requirements (e.g. environmental legislation); access to, and cost of, capital; labor costs and availability; and management expertise and practices. Likewise, pork processing is dependent on access to raw materials (hogs), labor and capital, management expertise, regulatory requirements, infrastructure, technology adoption and access to end-users. China was undoubtedly the most interesting market for meat in 2007 and it provides a fascinating insight into how the dynamics of production and trade competitiveness can change over a very short period of time. In the Chinese pork market in 2007, the influences of all six drivers of profitability mentioned above were evident. The explosion in meat prices in China attracted widespread media and political attention. In June 2007, China’s consumer price index (CPI) rose to 4% while pork prices jumped a staggering 101%. In the later half of 2007, there was some downward adjustment in pork prices but prices remained well above 2006 levels. What the locals refer to as blue ear disease, thought to be PRRS along with high feed costs and persisting FMD have had a fairly dramatic impact on the world’s largest domestic pork industry. There have been varying reports on the number of hogs that have been culled and what other measures have been put in place to curb the spread of PRRS but it is clear that domestic production in China has fallen. The Chinese government will be investing heavily to revitalize the domestic pork sector. From a political and social perspective, it cannot afford to displace the farmer population at a faster speed than is already occurring, and food security remains a key government initiative. It will likely take a number of breeding cycles for domestic production to show signs of recovery. Look for China to play a bigger role in world grain markets as an importer as it attempts to rebuild domestic production. In the pork industry of next decade, successful industry participants will need to be more efficient and cost conscious to maintain and enhance their competitive position. How and where the handful of animal protein multinationals choose to make investments and subsequently, how these companies choose to utilize their geographically diversified productive capacity, will ultimately determine what new pork production regions emerge and challenge the traditional exporting countries, such as Canada. Continued awareness and analysis of the global pork operating environment will be necessary in determining the future directions of national and regional pork industries.

Effect of cooking and fermentation of a pig diet on gut environment and digestibility in growing pigs

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