Martin Rice on what you need to know about pork export markets and trade agreements -Banff 2016

Posted in: Economics, Pork Insight Articles by admin on May 3, 2017 | No Comments

No other pork-producing nation in the world has the kind of dependence on exports that Canada does. Over two thirds of Canadian pork production is exported, excluding live pigs, and almost
half of all production is going to non-U.S. markets. Canada is currently the third largest exporter of chilled pork in the world. As well, pork consumption in Canada has declined during this period. This is an enormous exposure to risk on the export side of things.

“The reason trade matters for the pork industry becomes clear when you take a look at all of the cuts and products that come from one carcass,” says Rice. There are products such as offal or variety meats that may go for pet food in Canada. But in China or Japan, these are highly sought after and are priced accordingly. “There is an enormous contribution to the cutout value of the carcass, to be able to sell these variety meats to markets that value them,” says Rice. This is why trade agreements are so important for the Canadian pork industry.

There are a number of trade agreements Canada has currently signed or is pursuing. The most important of these are the WTO, the Canada-EU agreement and the Trans Pacific Partnership (TPP).

Regarding the TPP Rice says “we are quite confident that within five years of implementation, we will see additional exports to Japan in excess of $300 million per year.” However the Canadian market must be cautious about relying on these trades as estimates from the Japanese ministry show the population declining from the approximately 127 million people today, to around 80 million people in the next 40 years. This will impact demand for export products significantly.

The Canadian Pork Council also want producers’ input on what value they see in some of these practices and programs. Is it worth it to producers to focus on the export markets?

Martin Rice on what you need to know about pork export markets and trade agreements -Banff 2016

Managing feeding to reduce feed wastage in lactation – Dr.Dan Columbus 2017

Posted in: Economics, Nutrition, Pork Insight Articles, Prairie Swine Centre, Production by admin on May 1, 2017 | No Comments

Electronic feeding systems have multiple advantages over manual feed delivery including collection of feed intake data, controlled delivery of fresh feed, reduced feed wastage, and lower labour costs. However, these feed systems can be costly to install and maintain.

A simple feeding system was developed to reduce this cost consisting of a feed drop tube that extends to approximately one inch above the base of the feeder, which required the sow to manipulate the tube to release small quantities of feed.

A total of 45 sows and litters were randomly assigned to one of three feeding systems – manual feeding, a commercially available electronic sow feeder, or the modified system.

The type of feeding system used had no effect on sow body weight, body condition score, or back fat. Sow feed intake was significantly higher with manual feeding when compared to the other two feeding systems in the first two weeks of lactation, no difference was evident in the third week.

It was found that manual feeding of sows during lactation can result in higher feed usage with no corresponding increase in sow or litter productivity. At today’s feed prices, the reduction in feed intake associated with the electronic or modified feeding system would save producers an estimated $8.50 per lactation when compared to manual feeding. Therefore, the electronic and modified feeding systems should be considered to minimize feed wastage and maximize returns.

Managing feeding to reduce feed wastage in lactation – Dr.Dan Columbus 2017

A Fall to Remember (Opinion Piece) -Grier 2017

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Although Canadian hog producers were losing about $20-$30/head this fall with pricing trending down to the $110 range, it was a very positive fall and early winter for the industry. The United States was in danger of marketing hog volumes that were in excess of industry capacity. The concern for this fall if the industry consistently breached capacity with unyielding numbers of hogs would be a complete pricing collapse. Weekly kills of well over 2.5 million head have been common since September, however despite the historic kills and production this fall, packers managed to keep the pork cutout value strong. As of the beginning of December, the cutout value had increased over the fall. Packer marketers were able to maintain and increase the value of the cutout in the face of huge production volumes. This combined with efficient plant operations and  lower hog prices meant that packers had a fantastic fourth quarter in terms of profitability.

Producers staying current and marketing hogs ahead of schedule prevented weights from building and packing backups. These phenomenon coupled with the positive force of pork demand has led to an overall beneficial fall.

Canadian pork consumption increased nearly two per cent in the third quarter this year. Canadian consumer pork prices, as measured by the Statistics Canada Consumer Price Index, increased by about one per cent in the third quarter.

The industry now has so few players that it is necessary for both packer and producer to address all barriers to expansion and growth, including price. Packers and producers must work together now more than ever.

A Fall to Remember (Opinion Piece) -Grier 2017

Optimizing Market Weights

Posted in: Economics, Pork Insight Articles by admin on July 23, 2015 | No Comments

Optimizing market weights means essentially maximize the profit in your production system. Pre-requisite for optimizing the market weight is the understanding of the production costs and parameters, knowing the target market weight of your pigs for your packer buying matrix. Also components as herd health, availability and cost of feed ingredients, barn space, time availability, market prices, packer buying programs and animal welfare are important. Having a complete plan includes solid production practices, a clear understanding of the economic factors in production and marketing, using those to determine the optimum market weight for your system, and delivering a pig in good condition to your abattoir will contribute to an overall profitability of the system. Knowing all your systems capabilities, strengths and weaknesses, and working together with experts from the industry can improve the profit of your production.

Building a Solid Farm Team

Posted in: Economics, Pork Insight Articles by admin on July 22, 2015 | No Comments

People don’t leave jobs they leave managers

Motivation, Leadership style and Accountability – The three Pillars

Given the immense importance of strong leadership, it is why businesses need to think strategically about whom they put in leadership roles and devote the time and expense toward developing strong leaders for the operation.

Great leaders are people who handle changing circumstances with poise and consistency. They know how to motivate and engage their workforce and understand how to convey appreciation for their team’s effort. They also know how to get the most out of people, while creating an atmosphere for motivation and a sense of accountability. Motivation works as a key component of success.

Managing people takes a dedicated effort, but the rewards of helping employees grow can be one of the most rewarding aspects of a manager’s job. Effective leadership has a direct influence on building a solid farm and the bottom line.

Economic Costs of PEDv

Posted in: Economics, Pork Insight Articles by admin on April 28, 2014 | No Comments

PEDv has been a growing concern in the last year, and can have negative effects on reproduction and growth performance. However, there is also a major economic impact in PEDv management and the loss of production. Comparing a best case scenario vs. worst case scenario the best case scenario took 6 weeks to return to baseline productivity, and had 4 weeks of piglet loss. The worse case scenario took 10 weeks to return to baseline productivity, and had 7 weeks of piglet  loss. Pre-weaning mortality also increase to 46% for the best case, and 66% for the worst case scenarios. By also taking into account the impact of PEDv on pre-weaning mortality, farrowing rate, born alive and finisher performance it can be estimated the best case scenario would have a cost of $216 per sow place, but the worst case scenario would have a $338 cost per sow case.

Profitability Indicators

Posted in: Economics, Pork Insight Articles by admin on March 27, 2014 | No Comments

Profitability indicators can be used to monitor production, financial, or business relationship performance. The Ontario Data Analysis Project (ODAP) is an ongoing benchmarking project. It compares financial and production performance, and often uses the top 50% of producers as a comparison point. Although the ODAP is a large-scale project, benchmarking can be done on a smaller scale using only a few producers and several variables. When starting with benchmarking, consistency and simplicity are important.

International Trade – Barriers and Opportunities for Canada’s Pork Sector

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While the domestic market is important, Canada’s pork industry relies heavily on exporting its products. Canada exports 2/3 of its pork, and is the 3^rd largest pork exporter in the world. Global pork consumption is expected to increase, so opening additional markets and increasing sales in the current buying markets are priorities. However, other countries are also highly competitive in securing trade agreements, so Canada should focus on gaining trade advantages and catering to market access requirements. Five trade priorities should be finalizing CETA to export duty-free pork to the EU, finalizing a free trade agreement with South Korea, negotiating trade deals with Japan to maintain competitiveness, resolving COOL issues with the US, and managing trade restrictions with feed additives like ractopamine.

Real Factors Affecting Profitability

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Murphy Brown LLC produces 17 million pigs per year, and one of the challenges is the amount of production information that  is collected. Some of their strategies to manage information are to consider components other than feed for cost/cwt, do a profit factor analysis ranking, use models for decision making, use stretch targets, and monitor lead indices.

Retrofitting for Group Housing

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Group housing will soon be required in barns, but many Quebec producers have not made plans to invest in the transition. Many producers plan to sell or close due mostly to the expense, but the producers that have transitioned and generally happy with their new system. Agri-Marché is one company that has decided to transition all of the sites connected to their network over to group housing. They have already transition two sites: one to a floor feeding system, and the other to an ESF system. The first site was a multiplication unit that raised only gilts, and is over 30 years old. It was transitioned over to a farrowing unit, and the number of sows was increased from 250 to 640, and cost per head was $640. The second site was newer (1999), and was transitioned to a batch farrowing unit. The use of panels allowed the original flooring to be kept (1/3 solid, 2/3 slatted), and the ESF to be used despite the different dimensions of the pens. The sow herd increased from 250 to 850 sows, and the cost per head was $380. Both projects had their advantages and disadvantages, but can both be an example of modifying existing barns to fit the new regulations.