World Pork Trade: Outlook and Challenges

Posted in: Economics, Pork Insight Articles by admin on June 6, 2017 | No Comments

SUMMARY:

• Heavy current supplies and capacity issues
– Capacity issues will be resolved next year
• China pork import bubble is bursting
– Cheaper EU pork in key export markets
• Abundant pork supplies globally and in N. America in 2017
• Price pressure in 2017

Brett Stuart – World Pork Trade-Outlook & Challenges-Nov 2016

Return on Investment Analysis

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Conclusions

Finisher:
• Profitable
• Due in part to manure revenue
• Investment size fits an economic unit
• Management
• Lower death loss

Finisher Contract:
• Stable
• Demand for finishing space
• Fixed term
• Debt services
• No marketing risk, with the exception of packer closure

Eric Olson-MNP-Return on Investment Analysis-Nov 2016

Economics and Challenges for the North American Pork Industry

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Key factors in impacting 2015 and the forecast . . .
? U.S. corn and soybean crops
? HPAI
? PEDv
? Beef herd rebuilding – pace and length
? Sow herd expansion – equity, incentive
? Broiler expansion – flock, productivity
? Domestic demand – economy, consumers
? Exports – World economy, U.S. dollar

Economics & Challenges for N_ American Pork Industry – Steve Meyer, Express Markets Inc_ Analytics

Total System Profitability

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As our industry moves forward, there will be less emphasis on productivity and performance indicators and more emphasis on financial indicators, this presentation outlines the key production factors that affect profitability.

• Farrow to Finish
  ‐ W‐F Mortality
  ‐ FVP
  • % Market Culls
  ‐ Pre‐Wean Mortality
  ‐ Finishing Cost
  • System mortality
  • Feed $/MT
  • Market weight & age
  ‐ Weaned pig cost &
  production

• Farrow to Wean
  ‐ Cost per pig (lb or kg)
  • Facility cost
  • Labour
  ‐ Productivity is important
  • >12 born alive
  ‐ Pre‐Wean Mortality
  • Huge variation
  ‐ Litters/Sow/Year
  • NPD

Total System Profitability – Greg Simpson, Hypor

Assessing Our Competitive Advantage

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•  Current industry demographics, age of facilities.
• How does Saskatchewan and Canada stack up against the competition in terms of costs and profitability?
  • 2014 InterPIG
  • 2014 North American Comparison
•  Future model for growth
• How do we overcome any disadvantages, and leverage our advantages to grow the industry?

Assessing our Competitive Advantage – Mark Ferguson, Sask Pork

Economics and Challenges for the North American Pork Industry

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Discussed in this presentation:

• Current North American economic outlook
• Exports and the Global picture
• Database
• Cost of production
• Issues facing the industry

Economics-Challenges-N-A- Pork-Industry-Justin-Roelofs

The Global Market: How Does Canada “Stay In The Game”?

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This powerpoint outlines Canada’s place as a producer and exporter of pork and how through international agreements we can maintain and increase trade.

-Global-Market-How-Does-Canada-Stay-in-Game-Ron-Davidson

Increasing Market Weights Impacts on Profitability

Posted in: Economics, Pork Insight Articles by admin on June 5, 2017 | No Comments

This powerpoint outlines the economics related to increasing market weight variation and average market weight.

Increasing-Market-Weights-Impat-Profitability-BrandonFields-PIC

Feeding for carcass value: Considerations of genetics

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Nutritional and genetic strategies individually and in combination offer tools to influence carcass value in many ways. as our knowledge and technologies develop, these tools are becoming more powerful. However, a bigger challenge is to determine the attributes of the carcass where changes or specific targeted levels can add more value. The additional value could come anywhere in the pork production chain, but there is a need  to motivate changes at one point in the chain when the increased value takes place somewhere else in the chain. For example, if genetic suppliers worked to provide sires with higher genetic potential for marbling, this could give producers to tools to produce more pork that meets the requirements of high value fresh pork markets such as in Japan and in new premium branded markets here in Canada. Feeding strategies can also affect attributes such as firmness of the pork and marbling. However such decisions still need to consider costs related to changing specific attributes of the carcass. In the case of nutritional changes, the producer is directly affected and a change could could have a large effect on the cost of feeding. A change in feeding program can also adversely affect important traits other than the ones being targeted. The benefit needs to be at least as large as the cost and there needs to be a way for producers to cover the costs.  The costs of genetic changes, in contrast, do not affect the commercial producer directly, since the breeding stock suppliers are doing the work, and the cost per commercial hog would be very small. There is potential for large benefits from genetics with relatively little cost, but there needs to be a way for breeding stock suppliers to cover these costs. Feeding to genetic potential and selection of genetics for lean yield are examples that have provided opportunities for large increases in net carcass value in the past and continue to provide more opportunities today. Much of the benefit relates to lowering costs for production, slaughter and processing, but there is also increased market hog value for both the producer and the pack. There is potential today to start work on targeting other traits related to pork quality that can further increase carcass value.

Feeding for carcass value: Grading system implications

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The grading system is back on the pork industry agenda. With renewed interest in developing a national grading system, it is important to understand the attributes that could be included in the grading system and how it could influence carcass value. There are two main pillars to describe the carcass in all grading systems, Quantity being total lean or salable yield and quality. Carcass leanness is one of the outcomes considered in selection of energy and amino acid densities in diets. The Canadian Pork industry is already using some technologies to in efforts to improve carcass leanness and yield. In contrast, there has been less focus on methods to improve other aspects of pork quality. However, with ta new grading system on the horizon, introduction of new technologies may bring financial rewards for improving pork quality attributes. The pork industry already has the tools to improve quality through nutritional changes that have a direct financial cost. Besides providing appropriate levels of dietary levels of energy and amino acids to improve leanness, targeted supplementation of other nutrients can be used to improve pork quality. The adoption of nutrition strategies is however waiting for economic incentive. Focusing on individual animal needs, and when nutritional intervention would be cost effective will, however be a key to improving the bottom line in the pig barn.