Natural pork provides niche market opportunity

Posted in: Economics, Environment, Meat Quality, Production by admin on July 14, 2011 | No Comments

The economic pressures faced by small-scale pig producers have caused many to quit the business, unable to compete with larger, more cost efficient operations.  The alternative is to look for a niche market opportunity to add value to the pork in order to remain profitable.  Two years ago, George and Shelley Matheson, of Stonewall, Manitoba decided to downsize their 100-sow unit and focus on developing retail sales of “natural” pork.  Being only half an hour from Winnipeg, with 600,000 potential customers, they saw an opportunity to capitalize on the increasing interest in how food is produced. “When you sell direct to the public and people come to the farm, they are very interested in how the pigs are reared, the diets we are using, the ages of the pigs and the breeds,” George explains.

Although there is no official definition of “natural”, the Mathesons believe that it means operating a production system where pigs can fulfil their natural behaviour and are fed simple rations made on the farm from homegrown cereals.  Sows are kept outside all the year round and have small sheds with deep straw to keep warm in the winter.  They go indoors into conventional crates to farrow and, after weaning, the piglets stay inside until they are 50lbs, when they move into biotech barns with deep straw bedding.  Although most of the finished hogs are still sold into the commodity market, eight per month go to Interlake Packers at St. Laurent. There they are custom killed, butchered into retail sized cuts, the hams and bacon smoked and everything vacuum packed.  “We sell quarter, half or whole hog packs with 33, 66 or 132 pounds of pork and each has nine different cuts,” says George. “Good packing ensures the product will last at least a year.”

With many customers coming to the farm to collect the pork, the Mathesons are keen to show them the animals and explain how they are produced. “People are detached from agriculture these days, so they really enjoy seeing what we are doing and are very interested,” George explains. “They see the pigs outside or on deep straw and they like it.”  The Matheson also rear 1000 chickens on pasture each year, during the summer and say they are so popular, they could easily sell 10,000. “People tell us that the taste is very different from mass produced chickens,” says George.

In addition to selling directly from the farm, the Mathesons attend farmers’ markets and produce markets in the area. They recently participated in a seminar on buying food locally, which was attended by 140 people and try to attend as many local food-related events as possible. “Shelley is the marketing guru and has produced a leaflet on our products and is working on a website,” George says. “We want to increase the pork sales and eventually be able to sell all our pigs direct to the public.”  He believes that adding value in this way and producing feed from grain produced on the farm can be profitable. “We can definitely improve our marketing and Shelley has a good way of making our products sound attractive.”

The Matheson’s four children are also involved on the farm on a daily basis. “They all have their chores to do and this gives them an exposure to farming life, says George. “Most kids don’t know that the little pigs grow up so quickly and become pork and bacon!”  The children also help out showing visitors the animals and go to the farmers’ markets.

With the mainstream pork industry in such dire straights, selling direct to the public is an attractive option for some small producers, despite the additional work involved. It has an added benefit for the industry at large through helping the public understand livestock rearing methods and letting them talk directly to the people producing their food.

Photo captions:

Hannah Matheson – The Mathesons’ youngest daughter, Hannah, who helps with chores on the farm

Biotech pigs – George Matheson (right) and his son Austin with pigs in one of the biotech shelters

Manitoba Swine Seminar – Hiring the right staff requires thorough planning

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Making sure you are hiring the right person requires thorough planning, says Shirley Hoult, Director of Human Resources for the Puratone Corporation, speaking at the Manitoba Swine Seminar 2008 on January 31, in Winnipeg.

The first step, she said, is to review the job you are hiring for and study your options.  Are you looking for full time, part time or casual workers?  Did the last person leave because of a problem related to your business?  If so, how can you fix the problem before hiring someone new?

There are many ways to advertise for new workers, Hoult noted.  In addition to the usual means of communication – newspaper ads, websites, job fairs, word of mouth, school presentations and local bulletin boards, Hoult also suggested using cinema ads, flyers in mailboxes, billboard signs, placemat and menu ads, windshield flyers and accessing foreign worker programs. Advertising, she said, should include an introduction to your business, with clear and concise information about the job and the qualifications required, contact information and the deadline for applying.

Once you have the applications in, make sure that the candidate is able to comply with biosecurity requirements and is able to work in a farm environment, for example doesn’t have any allergies or suffer from asthma.

In preparing to interview prospective workers, Hoult urges that you make sure the person(s) conducting the interview is knowledgeable about the job.  “Ask each applicant the same questions,” she said.  “Provide information about the company culture.  Listen rather than talk.  Set a minimum score and identify the top two candidates.”

It is important to ascertain that the new employee is comfortable with the pay range for the position and to check all references, Hoult said. She also recommended that the new hire be tested out with a trial day on the farm to see if he is up to the work and fits in with the farm culture.  She also advised following up with new employees at 30 day intervals to make sure that all is going well and to be able to correct any problems quickly.

Puratone, she said, provides a disciplined on-the-job training program with a 12-week training manual that covers all sections of its farms. Each employee also has his own development plan.  “You should also provide frequent performance feedback for new

employees over the first 90 days and at regular intervals thereafter,” she said.  “Pay should be linked to performance and there should be annual evaluations tied to both team and individual results.”

Of course, she noted, it is better to be able to retain existing staff than have to hire someone new.  “The key is to create a positive, respectful workplace where workers receive recognition for a job well done and everyone is treated fairly and consistently.”

Manitoba Swine Seminar – Animal nutritionist touts benefits of auto sort finishing

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With equipment, feed and production costs near record high levels, hog producers have to be pro-active at finding new ways to raise their pigs more efficiently, says Dr. Marvin Wastell.  One solution discussed by the Omaha, Nebraska-based animal nutritionist (he is associated with Gro Master, Inc.) is the use of large group auto sorting systems for managing growing/finishing pigs.  Wastell was in Winnipeg on January 31 to explain the

benefits of the systems to producers attending Manitoba Swine Seminar 2008. In addition to higher production costs, he noted, consumers are demanding consistent quality and many care that the animal products that they buy come from animals that were raised in a friendly environment.

In December 2005, Wastell reported, swine producers from five different countries met with a group of scientists in Le Mars, Iowa, to discuss and evaluate raising hogs in large pens using Auto Sorters.  The producers learned that there is an economic improvement potential of up to $16 US per pig marketed by raising pigs in this way.

He noted that there were rumours at one time that Auto Sorters resulted in some pigs dying. He dispelled that myth by citing results in northwest Illinois where 21,000 Auto Sort spaces have been installed with no fatalities.

He compared the results of using an Auto Sort system versus a small pen on the Blue Marsh Hog Farm near Plum Coulee. Manitoba.  The Auto Sort system resulted in slightly higher average daily weight gain, considerably less man hours involved in marketing (2.7 as compared to 32 for the pigs in the small pens) and more than $1 per pig less in labour costs.

A South Dakota producer found he could sell his Auto Sort-raised hog carcasses for $5.44 more than carcasses from hogs raised in small pens.  His production costs were $1.31 a head less. Wastell added that Hormel, an American packer in attendance at the Le

Mars meeting, reported that pigs marketed by producers with auto sorters have a $5.70 increased value over producers who don’t use auto sorters.

“A second question that is frequently asked is how many pigs can be sorted by a given sorter.” Wastell noted.  “One manufacturer recommends 1000-1400 pigs per sorter, but there are several different systems.”  Food court design can also have an effect on pig gains, he said.  A Saskatchewan producer was able to increase average daily gain by 160 g/day by changing the design of his food court.  Large pen auto sorting is not for everyone though, Wastell noted. “Preplanning is a must,” he said.  “The system must be designed for pig flow and people and training for pigs and people is a must.  There also

has to be changes in management procedure. “To be successful the AutoSort system requires a commitment from the producer, the employees managing the barns, the distributor and the manufacturer.”

Manitoba Swine Seminar – Segregating sows by parity improves performance

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Segregating gilts and sows into sub-populations based on parity and providing different nutritional regimes can increase the number of pigs born per litter and per sow lifetime, says Dr. Dean Boyd, of the Hanor Company, Franklin, Kentucky. This is because the amount and type of nutrients required by young, immature sows (1-2 litters and older females (>5 litters) is very different, he told delegates at the Manitoba Swine Seminar. Furthermore, such an approach compliments health and reproductive considerations, he says.

The fist litter female is especially vulnerable to body protein loss during lactation, explains Boyd. “The foremost consideration is to formulate and feed to conserve body protein loss, since there is a direct effect of this on wean to estrus (WEI) interval and second litter size,” he says. “For example, a 4kg body protein loss during first lactation is sufficient to reduce second litter size by 0.75 pigs, whereas, in contrast, limiting protein loss to less than 2 kg can result in a second litter size 1.0 higher than the first.” WEI increases in proportion to body protein loss and it is not uncommon for it to be extended by up to 10 days for gilts that have raised a large litter, milked well and suffered too much protein loss. “Unfortunately, this is sometimes interpreted as ‘reproductive failure’ and may result in early culling from the herd,” notes Boyd.

Total pigs born and born alive increase until the third litter, are then constant until about litter 5 or 6 and, thereafter, a progressive decline is observed. Boyd says this parity-related decline seems premature from a reproductive perspective. “The lost opportunity is probably in the order of 1.8 to 3.3 pigs per sow lifetime, depending on whether productive life is 8 or 10 litters,” he believes. “We hypothesize that this is due in part to the progressive decline in micro-nutrient profile as the sow ages.”

Micro-nutrient deficiency in older sows

Micro-nutrients consist of Vitamins and Trace Minerals (VTM) and represent 0.12-0.15% of the diet but about 50% of the nutrients. In theory, micro-nutrients are formulated in diets at levels that prevent deficiency and include a margin of safety. However, says Boyd, there is a steady decline in the “safety margin” with increasing reproductive age. The reduction in body mineral levels that has been observed is most likely because pregnancy feed intake is held about constant (once body condition has been restored) across all parities, in order to limit growth.  However, body weight progressively increases with reproductive age, Boyd points out. “This ‘constant’ feed policy is appropriate for protein and energy needs, however, it probably does not work for VTM because the amount that is required to support normal tissue metabolism increases with the increase in tissue mass,” he says. This results in a marked decline in the grams of VTM/kg body weight with increasing parity (Figure 1). “The problem is that this occurs with each pregnancy and, to a lesser extent, in lactation,” Boyd explains. “Thus, the older, heavier sow is placed at increasing nutritional risk, reproductively and immunologically.”

Figure 1:  Example calculation of declining Vitamin – Trace mineral intake

                  with advancing reproductive age, g VTM / kg body weight 

                 (Calculated by Boyd and Hedges, 2004, using PIC USA 2002 ADFI x

                  sow weight by parity, assuming 0.149% dietary VTM )

The hypothesis that an age-related decline in litter size might be nutrition related was tested in the mature sow (parities 3-10) sections of two Hanor farms. In each farm, parity segregation is practiced by designating one section for sows of parity 3 or more. In the trial, control sows received 0.15% VTM as usual, whereas the test diets for older sows were designed to provide the same VTM per kg bodyweight for a P-7 female as would be provided to a P-3 sow. The annual cost of this increase was approximately $1.69 per sow, compared to the control diets. Evaluation of herd data showed that the diets equalized for VTM did, in fact, improve performance. “Litter size weaned was improved for sows in parities 4 to 10 by an average of 0.6 pigs per litter of 1.44 pigs/sow/year,” notes Boyd. “However, sow viability was not significantly improved during the term of this study”.

The concept of organizing the sow farm in order to nutritionally manage younger and older females differently, was originally demonstrated in the Hanor system by dividing the herd into three sub-populations, however, this has now been reduced to two. This nutrition-specific approach has been shown to lead to increased lifetime pig output and reduced risk to sow viability with no increase in feed cost per weaned pig. “For young females, the expected outcome is to improve lifetime pig output by producing a large first litter and then to manage her in a way that does not compromise second litter size,” say Boyd. “Once P-1 females are successfully re-bred and managed to 30 days of gestation, then the need for specialized ‘young sow’ nutrition probably ends.” However, he notes, there may be health-based reasons for also keeping younger sows in this sub-population.

Manitoba Swine Seminar – British researcher suggests high fibre feeds for sows

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With the cost of feed ingredients continuing to increase, hog producers may want to consider some non-conventional and less costly sources of animal nutrition, suggests Professor Peter Brooks of the University of Plymouth. Sources include silage materials (grass, maize, corn cobs), food industry by-products (from the production of bio-ethanol,

for example) and root crops (fodder beets and potatoes).

Peter Brooks, head of the School of Biological Sciences at the British university and a professor of animal production, was in Winnipeg on January 30, to speak to Manitoba hog producers attending Manitoba Swine Seminar 2008 about the importance of fibre in sow diets.  He noted that researchers over the past 20-25 years have come to recognize that recommended feed intake levels for gestating sows are considerably less than the amount of feed they actually require.

“The stereotypical behaviour often observed in confined gilts was generally put down to boredom and frustration,” he noted. “But a study in 1987 (by Appleby and Lawrence) demonstrated that an increase in a sow’s feed intake from 1.25 to 4 kg a day almost completely eliminated the behaviour.”  He added that incorporating fibre in diets to increase bulk, without changing the dietary energy supply, resulted in at least a doubling of eating time, a 20% reduction in feeding rate and a decrease in restlessness and aggression. “It would appear that foraging behaviour is an intrinsic drive in pigs and that bulkier diets that take longer to consume help to satisfy this need,” he said.

Brooks reported that other studies show that providing sows with straw bedding also reduces the stereotypical behaviour. Although the use of straw is widespread in the UK, he noted, elsewhere in Europe producers use slatted floors, which are geared for liquid manure systems rather than solid manure. In Northern Ireland, Brooks reported, producers have tried putting straw in racks for the sows to eat.  That hasn’t been that successful because too many of the sows spend time exploring the racks instead of

eating the straw.

Offering grass rather than straw in the racks seems to be more appealing to the sows. Brooks cited studies that show that sows will consume an average 2kg of grass silage a day and that the grass is easily digestible. He reported that some commercial units have successfully tried grass and maize silage and corn cob mix in conjunction with electronic sow feeders.

Other potential fibre sources for sows that Brooks identified were wheat and rice bran, malt culms, oat husks, soya bran hulls, sugar beet pulp and citrus pulp.  There have been some experiments in Europe with chicory pulp, too.  Studies indicate that feeding sows sugar beet pulp and citrus pulp produce the best results.

Brooks added that in Europe as many as 30% of sows are being fed liquid diets which makes the animals more restful.  That is because the solid fraction of the diet becomes hydrated more quickly, altering the viscosity and rate of gut transit of the diet. High fibre diets, in particular those that include sugar beet pulp, reduced water consumption by sows with an accompanying reduction in urinary output.

In concluding, Brooks observed that higher prices for traditional feed ingredients combined with a greater understanding of the nutritional needs of sows and the growing public demand for more humane housing solutions means that producers have to rethink how they house, feed and manage sows.

Manitoba Swine Seminar – PRRS continues to be major health challenge, says Minnesota vet.

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Despite good success in controlling and reducing PRRS in North America, the virus continues to be a leading cause of illness among sows, says Dr. Tim Loula. “PRRS has been the major health challenge in the industry since the 1980s,” said Loula, a veterinarian working out in the Swine Vet Center in St. Peter, Minnesota.

Loula was in Winnipeg on January 30 to address producers attending Manitoba Swine Seminar 2008.  This past winter, he reported, a large percentage of the American

Midwest was infected with PRRS and there was an outbreak in China in January.  He noted that outbreaks are worse in winter. Among the effects of the disease, Loula listed lower litter size, lower farrowing rate, lower average daily gain, increased feed conversion, increased cost of medications and vaccinations, increased variation, decreased number of full value market hogs and higher mortality rates.

Loula described the creation of a North American PRRS Eradication Task Force that was initiated at the AASV board of directors meeting in Kansas City in 2006.  The Task Force’s goal is the complete eradication of PRRS.  Members, Loula said, have been starting local task forces in their regions bringing together producers, production systems, vets, industry partners and researchers to eliminate the disease region by region.  He reported that such task forces have already been established in Ontario, North Carolina and Minnesota. Three counties in Minnesota have eradicated PRRS in their area.

“The first step is to map out where the pigs and the viruses are so that we can track where they are going,” Loula said. He discussed some current methods of eliminating the disease in specific herds.  One way is to depopulate and then repopulate the site.  By moving the entire herd out of the barn, the producer is able to clean and disinfect the entire site. The herd is brought back in after everything has dried and the process takes about a week.  Follow-up studies, Loula reported, show that 49% of farms are still clear after 120 weeks and 39% after 150 weeks.

Herd closure is another method of controlling or eliminating PRRS by stopping the introduction of replacement animals to the sow herd for an extended period of time.  Those farms that have kept out replacement sows for more than 200 days have generally been successful.  This method allows the herd to develop a strong immunity to the virus.  New sows can be brought in 30 days after the last clinical signs of the disease.

Producers can also try a direct virus exposure using serum. Of more than 150,000 sows thus treated, Loula said, there were only two bad experiences.  A test and removal approach, Loula noted, is not in common use and works best alongside a second type of stabilization program.

Loula spoke of biosecurity measures intended to keep PRRS at bay in the first place.  He suggested filters to keep insects out of the barns and having visitors remove their shoes.

He also noted that vaccines are also available for some strains.  “Hog producers need to become knowledgeable about epidemiology, sanitation and biosecurity,” Loula said.  “That will benefit you long after the herd is free of the disease.”

International Roundup – First GM “Phytase” corn licensed

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China-based supplier of crop seeds and agri-biotech research, Origin Agritech, says it has licensed a new genetically modified corn variety that includes the beneficial enzyme Phytase.
This transgenic corn is believed to be one of the first of its kind to be approved and sold commercially into the domestic marketplace, says a report for Fox Business. It is expected to be commercially available in 2009.

The Phytase enzyme increases phosphorus absorption in animals by 60 per cent and is used as a mandatory additive for animal feed in Europe, Southeast Asia, South Korea, Japan and Taiwan to reduce the environmental impact of livestock manure.

”Phytic acid, the main form of phosphorous in plant-origin animal feeds, is poorly available to monogastric animals as they lack the enzyme capable of hydrolyzing phytic acid to release phosphate. Genetic modification is the world class standard and that is where China is moving,” explained Dr. Yun-Liu Fan, a scientist at the Chinese Academy of Agricultural Science and member of the development team.

The development of this phytase – containing cereal means that feed producers will not have to purchase phytase and corn separately. This will reduce production costs and improve manufacturing efficiency. The Phytase transgenic corn has taken seven years to produce

Industry Crisis

Posted in: Economics, Production by admin on July 12, 2011 | No Comments

Surprise at January census data 

With anecdotal evidence of a significant number of producers quitting production, especially in Alberta and Saskatchewan, there was surprise at the December pig census data released by Statistics Canada in January, which showed only a 1.9% drop in breeding stock numbers.  Total pig numbers, down 6%, perhaps better reflected the liquidation that is taking place, although a significant proportion of this is likely due to the increased numbers of pigs being shipped to the USA for finishing or slaughter.

Alberta showed the biggest drop in number of breeding pigs, at 4.9%, while total pig numbers fell 10.6%. However, a survey carried out by Alberta Pork in late 2007 suggested that about 15% of producers intended to quit and that there were possibly another 15% that had already started the process of running down their operations and therefore did not respond to the survey. Saskatchewan had the next biggest drop in breeding pig numbers, at 3%, while numbers in Manitoba fell by only 0.6%. Ontario and Quebec also showed modest reductions of 1.6% and 1.3% respectively.

Table 1:  Percentage change in pig numbers – December 2006 to December 2007

                                             CAN                          AB                 SK                     MB

Total pigs                                  -6                         -10.6               -10.3                    -2.0

Breeding stock                       -1.9                           -4.9                 -3.0                    -0.6

Other pigs                              -6.5                           -5.0               -11.1                    -2.2

< 20kg                                      -1                         -11.3                 -5.1                 +13.4

20-60kg                              -11.4                         -11.3               -18.0                  -12.3

> 60kg                                   -7.3                         -10.7               -10.4                  -11.4

It seems likely that the unexpectedly low reduction in breeding pig numbers reflects the time taken to dispose of inventory and the difficulty in getting sows slaughtered at the end of 2007 and into 2008 was probably also a factor. Many producers seem to have taken their decision in the late fall and the reduced numbers will be shown more clearly in the April census data.

Numbers of pigs in the weight classes from weaning to slaughter were significantly down, indicative of the large increase in numbers being shipped to the USA. For Alberta, numbers in the <20kg, 20-60kg and >60g categories were all down about 11%, and similarly in Manitoba, where numbers fell by around 12%. In Saskatchewan, pigs in the 20-60kg category fell by a massive 18%, as the province’s two largest production companies continued to increase the number of pigs finished in the USA. 

While the January figures do not truly reflect the situation on the ground, they do show a trend towards a steady reduction in the national herd, which seems likely to continue for some time. With or without the federal Cull Breeding Swine Program, we are likely to see a further 10% reduction in sow numbers during 2008.

New government support includes cull sow program

Federal Minister of Agriculture and Agri-Food, Gerry Ritz, announced changes to the Agricultural Marketing Products Act (AMPA) at the end of February that will provide producers with better access to cash advances. He also announced a new sow cull program designed to assist producers who are either reducing their herds or exiting the industry altogether. Both the Canadian pork and beef sectors are now considered by the government to be facing “severe economic hardship” and therefore can qualify for emergency advances under the amended Act.

The requirement for livestock producers to use business risk management programs as security for cash advances has been removed and inventory values will be used instead.  This provision means that producers will not be limited by the value of their CAIS/Agri-Stability reference margin for the advance. Producers will also not have to use payments from these programs (such as interims, targeted advances or final CAIS/AgriStability payments) to repay the loans, unless they are in a default position.

The amendment has added “severe economic hardship” as a trigger for an emergency advance. When the “severe economic hardship” condition is declared, the requirement that the security for the advance be in first position is removed and the maximum amount of the advance raised to $400,000. The advance will be based on 50% of expected market price times the number of animals in inventory.

“Producers will have quicker and easier access to cash advances,” says Minister Ritz. “And, if all producers take advantage of the improved program, an estimated $3.3 billion in advance payments will be available.” 

“This is much needed help,” says Canadian Pork Council (CPC) president Clare Schlegel.

He notes, while this isn’t new money, the proposed changes to the APP will provide the breathing room livestock producers have been asking for. However he admits, “It doesn’t get us out of the woods by any stretch of the imagination but it is much needed help.”

In addition to these measures, a new $50 million Cull Breeding Program will provide support for hog producers taking steps to exit the industry or who permanently down size their operations. The objective is to reduce the national breeding herd by an additional ten percent over and above normal annual liquidations to more accurately reflect market conditions. Producers will be eligible for a per head payment for animals slaughtered and reimbursement for slaughter and disposal costs based on several conditions including that they depopulate at least one barn and not restock for three years.

 Sows and boars marketed from November 1, 2007 until the date when program applications become available will be eligible for a $225 payment per animal less the selling price received. The marketing of these animals is not subject to the restrictions for animals marketed after the applications become available, when slaughtered sows and boars must not enter the human food chain.  For the latest information, go to the CPC website, www.cpc-ccp.com

Provinces announce more help for livestock producers

 Western provincial governments have responded positively to requests for assistance from livestock producer organizations as the high price of feed and low market prices continue. In February, producers in Alberta received an additional payment under the Alberta Farm Recovery Plan (AFRP), which was designed to compensate all farmers, not just those with livestock, for the high feed, fuel and fertilizer costs.  Re-appointed Agriculture Minister George Groeneveld delighted pork producers attending the Alberta Pork Congress in March when he hinted that the AFRP would likely be extended for another year. 

 Manitoba’s Agriculture, Food and Rural Initiatives Minister Rosann Wowchuk also announced support for cattle and hog producers.  The province, through the Manitoba Agricultural Services Corporation (MASC), is making $60 million in loan support available to hog producers at attractive interest rates, which will assist producers facing significant cash flow challenges. Producers will be able to borrow $35 per slaughter hog and $10 per weanling sold between October 1, 2007, and May 31, 2008. Loans will be termed over eight years with the maximum amount being $2.5 million.

Principal payments on these loans will be deferred for the first three years. The first year interest rate will be 2.25 per cent on borrowed amounts of up to $1.5 million with 4.5 per cent charged on any remaining loan amount. All loans will have an interest rate of 4.5 per cent for years two and three and six per cent for the last five years. An additional interest rate reduction of one per cent will be available for young farmers for the first three years.

 “The livestock industry in Manitoba and across Canada has been under significant pressure,” said Wowchuk. “Producers in Manitoba need assistance and our government is committed to ensuring our farmers in this important sector receive support to maintain their farm businesses today and position the sector for future profitability.”

Saskatchewan’s pig producers are being offered early access to their expected 2008 AgriStability payout under a Targeted Advance Payment (TAP) program.  The 2008 program announcement came two months after Saskatchewan pig farmers went public with notices received from the agriculture income stabilization (CAIS) office, saying the farmers’ TAPs from the 2007 AgriStability program were going to be much less than what the office had originally informed them they would receive or, in some cases, zero.

Little comfort from Hogs and Pigs Report

 The USDA Quarterly Hogs and Pigs Report, released on March 28, provided little hope for pork producers in the USA and Canada, suggesting that there is going to be a lot more pork on the market than expected. Virtually all the inventory numbers set new records for March. All hogs and pigs came in at 65.909 million head, which is 6.5% more than last year and nearly 3% above pre-report estimates.  The breeding herd inventory was slightly larger than last year and the market herd saw a jump of 7.2% from last year to 59.77 million head, a much bigger jump than estimates had predicted. USDA also revised its 2008 pork production forecast by adding 90 million pounds to the first-quarter estimate to reflect higher-than-expected hog slaughter in February.

 First-quarter pork production is expected to be 5.96 billion pounds, a massive 10.5 percent above the same period last year.  Total commercial pork production in 2008 is expected to be 23.1 billion pounds, 5.4 percent above 2007.  First-quarter liveweight prices for 51-52 percent lean hogs are predicted to range between $40 and $41 per hundredweight, 12 percent below the same period a year ago.  Worse still, stocks of frozen pork on January 31, 2008 were 563.6 million pounds, 16 percent above year-earlier levels.  Continued build-up of cold stocks may signal a slowdown in pork demand.

 The one bright spot is that January 2008 pork exports were more than 353 million pounds, almost 27 percent above January 2007. 

 Kevin Greer, Senior Analyst at the George Morris Centre, says in his Alberta Pork Hog Market Report that, based on US forecasts and a par dollar, producers are in for a very difficult year. He predicts 110-index prices of $1.15-$1.20 per kilo in the second quarter, “over $1.30” in the third and a drift down to $1.15 to $1.20 in the last quarter of the year.

Smithfield to reduce sow herd by five percent

 Smithfield Foods announced in February that it will cut its US sow herd by 4-5% or 40,000 to 50,000 sows – a move that will ultimately result in production of 800,000 to 1 million fewer market hogs annually.  The company raises 18 million market hogs annually at present and said that it was introducing the changes immediately, although the effects on the number of pigs marketed will not be seen until early 2009.

 “Given the economics for raising hogs today, we cannot continue on the current path; something has to change,” said C. Larry Pope, president and chief executive officer. “Grain costs continue at record levels, with the potential of escalating, given the current US government policy favouring corn for ethanol. Today the economics are very challenging, and we believe that these increased costs will translate eventually into still higher food costs for the American consumer. In the meantime, Smithfield is taking immediate action to improve the efficiencies of our live production operations.”

 Murphy-Brown, Smithfield’s production division, announced last year that it was moving towards group sow housing, which for existing farms, will likely result in fewer sow places, especially in those locations where the opportunity to construct additional space is limited. Also, in North Carolina, changes to environmental regulations may lead to the need to reduce animal numbers. Therefore, although Smithfield cites economic conditions as the reason for the cutbacks, it seems likely that these factors played a major role in their decision.

 “Other hog producers will likely follow Smithfield’s lead and trim production,” believes Ron Plain, agricultural economist at the University of Missouri.  Also, he suggests, more cutbacks will be needed to push hog prices high enough to cover production costs. “This is not enough of a cutback to turn things around,” he said of Smithfield’s action.

European prices on the turn as pig numbers plummet

 The European average pig price increased by about 10% in the first quarter of 2008 and industry commentators expect further rises to continue as pig numbers throughout the region fall. There is hope that this signals a return to profitability for producers, whose costs have soared due to increases in feed prices. Census figures published so far this year show reductions of up to 10% in pig numbers. In Hungary, the Czech Republic and Poland the sow herd fell by 10-11%, between December 2006 and December 2007. Data from Northern Ireland show an 8% reduction in sow and gilt numbers, while reports from Europe’s largest pig producing nations – Spain, Germany and Denmark – also suggest significant herd reductions.

 Despite the promise of better times to come, half of Denmark’s pig producers are at risk of going out of business in the next two years, according to Henrik Jeppesen of the country’s Fionia Bank.  Producers are concerned that his view by could be an expression of no faith in the ability of producers to survive the current shakeout in the European pig industry.  They fear that, if the bank starts a credit squeeze, producers will not be able to invest in new housing and equipment and that could signal Danish production grinding to a standstill.  A Danish Bacon and Meat Council spokesman is quoted as saying that during second half of this year there will again be enough profit for Danish pig farmers to “cover their expenses”.

 Meanwhile British producer organization, the National Pig Association, continues its creative campaign to persuade the country’s retailers to pay producers more for their pigs, while increasing public awareness of the situation the industry is in. In February, a group of producers took to the recording studio to record the song “Stand by your ham”, which received massive publicity around the world. Then, in early March, this was followed up with a rally in London, when around 1000 producers and supporters lobbied MPs and received a high profile in the media (see Stuart Lumb’s article in The View from Europe in this issue)

Incorporation of oats into swine diets

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Introduction

The high fibre content of oats, which are widely grown in Western Canada, has historically limited their use as an energy source in swine rations. In fact, oats have been shown to have approximately 10% less digestible energy (DE) than barley and 17% and 19% less DE than wheat and corn respectively. However, a recent seminar given at the Western Nutrition Conference in Saskatoon (September, 2007) showed that grower and finisher pigs can be fed diets containing up to 25% oats without compromising growth performance. 

This article will review the nutritional profile of oats and will provide recommendations for how oats can be used in swine diets to reduce feeding costs while maintaining performance.

An overview of oats

Canada is the second largest producer of oats (3.3mt) after Russia (4.6mt), but before the USA (1.7mt), Poland (1.2mt) and Finland (1.2mt). Oats are a common crop in Canada and conditions in Manitoba are thought to be ideal. Oats were the third most important crop in the US but are currently in decline.

In comparison to other cereals, oats have a high fibre content as the hull comprises about 23% of the whole grain. Thus, they are lower in energy value than other cereals, making them a popular cereal for ruminants and horses, but traditionally less so for poultry and pigs. Additionally, the nutritional composition varies widely with variety, climate and fertilization. 

Oats have a high oil level and relatively good protein quality compared with other cereals. The fibre fraction is highly lignified, resulting in reduced digestibility. The soluble fibre in oats is largely due to non-digestible b-glucans located primarily in the endosperm cell wall. In general, oat fibre has a low water holding capacity and is therefore not particularly good at reducing constipation in monogastric animals.

Table 1: Nutritional composition of oats in comparison to barley

                                         Nutrient                                  Barley                Oats

                          Dry matter (%)                      87                    87

                          Crude protein (%)                  9.5                  10.5

                          Crude Fibre (%)                    4.7                  11.6

                          NDF (%)                              17.5                 38.4

                          Oil (%)                                 1.7                   5.2

                          Ash (%)                                2.2                   2.5

                          DE (MJ/kg)                           13                  11.0

                          NE (MJ/kg)                            9.6                   8.2

        Source: Atlas & INRA, 2002

The feeding value of oats

As with other high fibre ingredients, the feeding value of oats is best determined by assessing how inclusion affects the overall diet’s fibre level. This is because, as fibre increases, the transit rate of digesta through the gut of pigs decreases, resulting in a reduction in performance through reduced digestibility and increased mucus production. As a result of this, oats must be limit fed depending on the animal’s stage of development.

Table 2: Potential savings when including oats into various hog rations

Stage of                  No oats           Oats at % limit           Savings           Recommended

animal                    ($/MT)                   ($/MT)                 ($/MT)           maximum oat limit

                                                                                                                        (% of diet)

Grower pigs                $235                         $228                         $7                             25

Finisher pigs                $229                         $222                         $7                             25

Dry sows                    $222                         $217                         $5                             20

Diets assume the following prices/MT: Wheat $215; Barley $205; Soya $300; Oats $170.

Table 2 shows that there is a potential to save on feeding costs but that the highest savings can be realized with growing and finishing pigs. Due to limited research examining the nutritional value of oats within sow diets, a conservative limit of 20% is recommended.  Assuming a herd size of 250 sows, farrow to finish, this could equate to a feed savings of approximately $660 per month or $8000 per year.

Oats and Net Energy

An important point to remember is that higher oat inclusion only works when diets are formulated to net energy (NE) and digestible amino acids. Again, this is because of the high fibre percentage, because diets formulated to ME or DE will decrease in NE as oat levels increase. Reducing NE through inclusion of high fibre ingredients has been shown time and again to reduce performance. 

Table 3: Effect of dietary level of oats on grower and finisher pig growth performance^{1, 2}

                                                                                Level of oats (%)

                                                0                            25                          50                 P-value

Grower (27.5 – 67.5kg)    

      Daily gain (kg)                   0.83                       0.83                       0.85                 0.67

      Daily intake (kg)                1.88                       1.87                       1.89                 0.85

      FCR                                  2.27                       2.26                       2.25                 0.78

      NE                                    2027                      2025                      2041

      NE w/out tallow                 n/a                         1991                      1955

Finisher (67.5 – 80kg)

      Daily gain (kg)                   1.16                       1.16                       1.17                 0.78

      Daily intake (kg)                2.89^a                      2.84^a                      3.08^b                0.01

      FCR                                  2.51                       2.49                       2.70                 0.06

      NE                                    2033                      2058                      2075

      NE w/out tallow                 n/a                         1997                      1960

¹ Source: Zalinko et al., 2007 Proc. W. Nutr. Conf. pp 253

² Values within a row not sharing similar superscripts differ significantly

 One should note that in the study outlined in Table 3, NE levels were balanced by inclusion of tallow. If this had been ignored the amount of energy each pig consumed per kg of gain would have been sub-optimal and growth would have deteriorated. However, if tallow or vegetable oil cannot be handled in a given on-farm mixing system, adequate levels of dietary energy can be obtained by using wheat or corn with similar financial savings being realized.

Some points to consider 

What are the nutrient levels?

 It is generally a good idea to send a sample of your oats for nutrient analysis. This will allow for more accurate formulation and will prevent the feeding of rations containing excess amounts of NDF (Neutral Detergent Fibre).

Will you be pelleting your feed?  

Oats tend to give a poorer pellet quality than other cereals because the fibrous husk tends to give pellets fracture lines. Thus, one should consider limiting oats to 7.5% of the diet and apply a fine grind if pellets are manufactured.

Should you include an enzyme?

 In Europe, where high fibre ingredients such as mill run are commonly used in pig rations, so too are enzymes. However, inclusion costs of enzymes in North America are much higher than in Europe, which typically limits their addition into starter rations.

 So does it make financial sense to use an enzyme? A recent article published by researchers at the University of Saskatchewan examined the effect of supplementing grower and finisher diets containing 40% oats with a mixed β-glucanase / xylanase enzyme product. The study showed that crude protein, dry matter and gross energy digestibilities all increased by 3% as a result of enzyme supplementation. If enzyme inclusion costs approximately $3/tonne, nutrient digestibility would have to improve by around 2% to break even. Based on this study, and many other enzyme focused studies, it would seem likely that enzyme inclusion would make economic sense when diets are formulated to contain high levels of oats. 

Conclusions

 Inclusion of oats at the levels recommended in this article is nutritionally and economically viable. However, in order to reap these benefits, one must be mindful of the method of formulation being applied to their rations. The NE system combined with digestible amino acids currently used by Nutrition Partners is a good way of ensuring the risk of reduced nutrient digestibility and animal performance is minimized.

Back to the basics – Key learnings from Walking the Pens

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 Key learnings from Walking the Pens

If you are a regular reader of Western Hog Journal, you likely saw the Fall 2007 and Winter 2008 articles based on Pfizer Animal Health’s producer education program, Walking the Pens.  Launched in 2007, the program is designed to help producers identify and treat individual pigs.  It is one way that Pfizer supports the Canadian hog industry. As a reminder, in the first article we looked at how to start pigs properly.  In the second, we reviewed common illnesses and their treatments and how to identify sick pigs quickly and efficiently.

However, having knowledge is not enough to ensure that your pigs are healthy. Successful operation of any nursery or grow-finish operation depends on a myriad of factors – quality and health of the stock, quality of the rations, facilities, weather, staff – the list seems endless.  Critical to many of these is one overriding factor: the performance of the people responsible for day-to-day operations.  Every member of your team must be clear about their responsibilities and learn to recognize or, even better, anticipate problems.    

In this article we will examine successful methods for sharing hog health knowledge with employees and how Walking the Pens has helped Canadian farmers in their operations. We have held over 100 training sessions over the past year.  Attendees have had the opportunity to strengthen their operation by sharing the information they have gained through the sessions with others working in their barn.

Barn walk-through 

Whether introducing new employees to the barn, or reviewing the basics with your peers, consider the walk-through as the basic tool and start with a review of the barn records. Accuracy, timeliness and good record keeping are very important, and tying the records’ use to specific decisions reinforces their importance.

Reviewing the recent diagnostic history of the sow herd or herds and any other related pig flows at the barn gives employees context for current illnesses.  Previous group closeouts and current mortality or morbidity records are also helpful.  When reviewing these records look for consistent patterns.  Death loss and sickness occurring in the first two weeks post entry into grow-finish is usually due to either high infection pressure from the sow herd, such as with PRRS, or an inability to start pigs well.  Death loss and sickness reoccurring three to eight weeks post entry is typically due to disease.

The next step is the walk-through itself. Think about and talk to employees about the basic equipment they should carry on each visit:

• a marker to identify pigs needing treatment or evaluation
• medicines that are regularly administered
• a notebook or clipboard to record treatments, observations or needed repairs

 Once the barn walk-through is complete, review all of the teachable moments.  For new employees, consider creating a pocket-sized, laminated reference card to outline the goals for each turn.

Hog health maintenance

 Professionals such as engineers, nutritionists, veterinarians, and animal handlers can all add to the successful education of employees. For example, an engineer has the equipment and experience to troubleshoot the ventilation within a barn and to develop standard operating procedures to properly manage the barn environment.  A nutritionist will focus on diet budgeting, diet quality, growth performance, feed particle size and feed wastage.

If you have concerns about the health of your herd, don’t hesitate to get your veterinarian involved: he or she can help you troubleshoot problems and involve other consultants if necessary.

Exposing employees to these experts and giving them a chance to be part of the discussion can help them anticipate issues and know when and who to ask for advice.

Barn management

 Each barn should have a sheet that records key events and information such as entry date, weight, source, lot number, mortality, treatments, removals, feed budgeting, temperatures and other comments. Comments should include information such as quality of the pigs at entry, response to treatment or environmental challenges such as fans not being operational. This information can be kept as individual records by topic or consolidated on one form.

Similarly, environmental data and financial information should also be recorded and actively managed.  These records can help to identify the early onset of a health challenge, and can be reviewed with your veterinarian in troubleshooting problems.

Remember, the initial education phase is only the first part of developing better husbandry skills.

Proper husbandry skills need to be developed/taught/reinforced throughout the 22 to 26 weeks it takes for pigs to get to market.  By the time new employees have loaded 260 pound pigs onto a truck, they may have forgotten the skills it takes to get a 10 pound pig started on concrete slats.  To be successful, the system has to have regular, ongoing education.

As one Walking the Pens participant noted, the program’s goal “is to perfect what you’re doing, and improve on what you aren’t paying attention to…A lot of the materials, you have done before, but this program brought it all back to reality.”

Conclusion

 It is important for all of us all to recognize that the learning process never ends. The commitment to ongoing education is essential to the success of your operation.

You are the people that see the pigs day in, day out. This is why it is important for all employees to be well versed in, and focused on, sick pig identification. At the same time, concern about the overuse of antibiotics and maximum residue limits or tissue tolerances in food animals has increased the need to be selective in the administration of treatments, placing more importance on individual, rather than blanket treatment. 

The industry is shifting emphasis from group to individual pig treatment, and Pfizer stands ready with health protocols and products to aid in this transition. Our hope is that the practices and procedures outlined in Walking the Pens will assist you to produce healthy, high-quality pigs and contribute to your success and profitability. And, if you are interested in participating in a Walking the Pens session but haven’t had a chance yet, please contact your veterinarian for more information.

Dr. Don McDermid is Manager of Veterinary Services in the Swine Group at Pfizer Animal Health.