Thursday, November 7, 2002 - PorkNet's Daily Update
 
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>>> TODAY'S ARTICLES
-------------------------------
1. Florida Gestation Crate Amendment Passes
2. Purcell Ag Commodity Market Report
3. Pork Producers Must Make Transition to 2004
4. Swine Vet Center Weekly Feature
5. Alpharma Announces Q3 2002 Results
6. Low Dose Insemination in the Sow
7. Low Pork Prices Keep Food Price Increase Moderate
8. Computer Model May Help with Ammonia Emissions
 
>>> TODAY'S INTERNATIONAL ARTICLES
-------------------------------
9. Antimicrobial Susceptibility of S. Suis in France
10. Canada Pork Providing Nutrition Table
 

>>> TODAY'S ARTICLES
-------------------------------
1.Florida Gestation Crate Amendment Passes   back to top


The state of Florida now has a constitutional amendment that prohibits producers from using gestations crates for pregnant sows.  The amendment passed 55% to 45%. The process is seen as a test-case for the activists to bring similar amendments before other states.

Frankie Hall of the Florida Farm Bureau Federation said the vote would have minimal impact in the state. “The only thing it does is give the animal-rights movement something to brag about.” Florida does not have any large producers currently, and is not likely to have any due to feed and transportation issues. "Can you imagine the Constitution talking about pregnant pigs?" said Alex Intrator, 79, of suburban Delray Beach. "I'm against cruelty to animals, but it's ridiculous. It should not be on the Constitution."

Wayne Pacelle, spokesman for the Humane Society of the United States, said “The people of Florida have set a standard for the humane treatment of animals and we are delighted with the results. It will prevent large-scale hog operations from moving into Florida and it will protect the small-scale farmers."

Source: Tallahassee Sun-Sentinel/Associated Press, November 6, 2002
Source URL: http://www.sun-sentinel.com/news/local/southflorida/sfl-1105pigs.story

 
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2.Purcell Ag Commodity Market Report   back to top


Cash hog prices have been slightly lower in early week trade with a weighted average carcass-based price around $37. That level, of course, is considerably better than many of us feared we would see as we moved into November where we usually see the highest daily slaughter level of the year. The hog numbers are not quite as bearish on the supply side as had been originally anticipated, and that is bringing some relief to swine and cattle.

The active December lean hog futures have taken out the recent highs at $43.45 and $43.84 and seem to be taking aim on a high going back to April 19 that reaches to just above the $46 level. I didn't expect this type of positive move in this market and think we are overdoing it to the upside given the substantial and growing premium in the nearby December to the cash market. If that December can run up toward the $45.50-$46 level, I would suggest being an aggressive seller. We have trend lines under this market to protect in the event it turns abruptly lower and we don't get sell orders filled up under the highs. Producers who have already placed short hedges around the $43 level probably should just answer the margin calls and hold these positions until we see if this market is going to turn back up against the $46 high. To read the full report, follow the “Click to read more” link below.

Source: Virginia Tech/ Wayne D. Purcell, November 5, 2002
Source URL: http://www.ext.vt.edu/news/periodicals/purcell/

 
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3.Pork Producers Must Make Transition to 2004   back to top


Pork producers are heading into next year with almost euphoric, job-well-done excitement that 2003 will be a good year for the industry, with decreased pork and competitive meat production, higher hog prices and profitability. Current projections support this somewhat, but next year will be more a transition year than the walk in the barnyard the industry now thinks, according to Feedstuffs sources. The brighter, onward and upward year will be 2004 if -- if -- producers don't overload in 2003, sources said. The euphoric stage was set with aggressive liquidation and marketing last summer and then with the hogs and pigs report in September, which led to a feeling of relief that spread throughout the markets. However, sources said the work done set up a transition year and worried that producers may tend to believe they are completely out of the woods and not do enough next year to make the transition and may even undo this year's work.

There are reasons to be optimistic. Analysts are estimating that both beef and pork production will be down 2% next year, and sources said demand for pork is good and holding with the economy expected to grow modestly and exports expected to increase. Sources added that while Canadian production continues to expand, its growth rate is slowing, and the Canadian component of U.S. slaughter should be less of a factor next year. As production decreases, users will begin pulling stocks out of storage, which will also be positive to pricing, sources said. However, there are reasons to be cautious, including the fact that pork production still will be the third largest on record, the industry is so productive that it can get far more pork from far fewer sows than in past years and futures have large premiums that could encourage producers to use productivity to expand production. Corn costs will also be higher next year, sources added, and should anything make them even higher -- a late spring or a dry summer --

Source: Feedstuffs Daily Update, November 5, 2002
Source URL: http://www.feedstuffs.com

 
Click to read more.
 


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4.Swine Vet Center Weekly Feature   back to top


The study had an objective to investigate management, housing, and nutrition factors and potential viral infections that might be associated with postweaning Escherichia coli diarrhea in southern Ontario.  Identifying risk factors could help to curb the effects of the disease.

50 farms were used and given a questionnaire asking about management, feed, other diseases, etc.  Rectal swabs and sera were collected from ten weaned pigs in each herd were tested for F4+ (K88+) E. coli and antibodies to two viral pathogens.  Hemolytic E. coli-like colonies were tested for agglutination in specific anti-F4 antiserum.

26 herds were used as cases and 22 as controls.  F4 was isolated in 15 case herds and 3 of the controls.  Diarrhea did not occur in the control pigs.  In case herds, there were more feeder spaces per pen, the first rations offered in the nursery were more likely to be pelleted fed, and nursery pigs and gestating sows were more likely to be vaccinated against PRRSV than in control farms.

The implications were weaning age, weaning weight, and commingling of pigs from multiple sources were not risk factors for PWECD in this study.  Vaccination for PRRS (or being PRRS positive and vaccinating vs. PRRS negative herds) appeared to be associated with an increased risk of PWECD.  Pelleted feed and larger numbers of feeder spaces were associated with an increased risk.  PWECD occurred on a variety of farm types and sizes.

SVC Comments:

  • Weaning age and weight don’t seem to affect the mortality and morbidity in herds showing E. coli.  However, young small pigs do not seem to be able to fight off diseases as well and have a higher morbidity and in the end mortality.
  • E. coli has been observed in all environment types
  • The three main factors that seem to be important regarding toxigenic E. coli include:
    a. Farm or barn having a history or being positive for E. coli and associated toxins and how well the barn is cleaned following an outbreak.
    b. Pelleted feed.
    c. Stress (ventilation drafts, PRRS)
    d. Amount of zinc in early diets. It has been shown that zinc at 1000-3000ppm helps to control E. coli
    e. Amount of SBM in early diets. Pigs can have a sensitivity to SBM and too much too fast sets up the gut for looseness problems including E. coli.  Need to try to get the gut used to SBM gradually.
  • PRRS, like with any disease, makes E. coli worse and seems to allow it to be expressed.  E. coli may be one of the first things you see in a nursery if weaning PRRS infected pigs so it can be a red flag.  Remember that association doesn’t mean cause.  Herds vaccinating PRRS probably have more active PRRS.
  • E. coli is multifactorial and we need to continue to discover additional risk factors for this disease.

Source: Journal of Swine Health and Production, Vol. 10 number 6 p. 245, “A case-control study investigating risk factors associated with postweaning Escherichia coli diarrhea in southern Ontario”  Amezcua R. et al. / Swine Vet Center Staff

 
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5.Alpharma Announces Q3 2002 Results   back to top


Alpharma Inc. has announced third quarter 2002 net income of $18.2 million. Results exceeded earlier guidance. Third quarter 2002 net revenues of $321.4 million were approximately 40% higher than 2001. Operating margins increased three points to 14.1% in the third quarter of 2002 compared to 11.1% a year ago, excluding goodwill. Improved margins were driven by increased profitability in U.S. Generics and in Animal Health. Excluding the impact of foreign exchange, operating margins would have been 14.8%.

Third quarter revenues were $84.6 million compared to $67.9 million in 2001. Operating margins increased to 11.9% compared to 4.1% in last year’s third quarter. Year-to-year comparisons in the third quarter for both revenues and operating margins showed significant improvement due to higher sales in all segments and a strong focus on expense reduction. Demand from swine producers remained soft in the quarter due to market conditions and competitive activity. Animal Health revenues, operating income, and operating margins have improved sequentially each quarter in 2002, reflecting a successful transition of its business practices as well as seasonal demand for certain products.

The company’s full year outlook remains at $.90 DEPS, in part due to softer demand for Animal Health products in the swine segment as well as other factors.

Source: Alpharma, October 28, 2002
Source URL: http://www.alpharma.com/

 
Click to read more.
 


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6.Low Dose Insemination in the Sow   back to top


Artificial insemination (AI) in pigs has been established for about four decades but ejaculates are still used insufficiently. Higher demand of semen for AI and new techniques that involve low sperm concentration require the optimization of insemination protocols. Based on the knowledge of the physiology of sperm transportation and events in the female genital tract prior to fertilization, new strategies are under development to minimize sperm losses.

One goal is to deposit the semen into the uterine horn rather than into the proximal cervix. Using similar sperm concentrations as for surgical AI, non-surgical uterine insemination did not differ significantly from control inseminations in terms of pregnancy rate and litter size.

With respect to the fertilizing capacities of their ejaculates, boars have to be selected more strictly for sperm quality parameters as most of the compensatory effects of sperm cells disappear in maximally extended semen samples.

Source: Reproduction in Domestic Animals 37 (4): 201-205, 2002, “Low dose insemination in the sow - A review,” Rath, D.

 
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7.Low Pork Prices Keep Food Price Increase Moderate   back to top


Food price inflation is projected to continue moderate in 2003, in line with inflation in 2002, as inflationary pressures that will be the consequence of decreased beef production and increased demand for fish and seafood will be largely offset by lower prices for pork and poultry, according to the U.S. Economic Research Service (ERS). Indeed, the change in the consumer price index (CPI) for pork is projected to actually be down 1.5% in 2003 from this year after being down 0.6% this year from 2001, giving consumers a second straight year of lower pork prices. The CPI for poultry is expected to be up just 1.5% next year after an increase of 1.7% this year from 2001. Lower meat and poultry prices for consumers in restaurants and retail stores will cap prices for cattle, hogs and poultry for producers in the countryside, according to ERS. Hog, chicken, turkey and egg prices will be flat to a little higher.

Food, livestock and poultry prices will also be contained by continued economic softness in the U.S. and world, as consumers domestically trade down for lower priced foodstuffs and as exports increase only slightly, except for chicken, which should experience an important rebound and increase about 12%, ERS said. Still, consumers will eat a near-record amount of meat and poultry next year. Competition will also keep food prices restrained, according to Feedstuffs sources, who noted that the competition is not only within the grocery and restaurant sectors but between them to capture the food-prepared-away-from-home and take-out markets. Altogether, consumers will spend $875 billion for food this year and $926 billion next year, according to ERS.

Source: Feedstuffs Daily Update, November 4, 2002
Source URL: http://www.feedstuffs.com

 
Click to read more.
 
8.Computer Model May Help with Ammonia Emissions   back to top


Hog producers will have better control of grower-finisher room ammonia emissions if a computer model being developed by the Prairie Swine Centre is successful. Too much ammonia becomes a health issue in swine buildings and can irritate the respiratory system. The goal of the computer model is to understand how the ammonia is produced, through many variables, and how to reduce that production. Researchers hope that the model will be ready for simulations in about a year.

“Once the model is developed we should be able to predict what would be the ammonia concentration and emissions from the room based on the pig diets, on the temperature profile we may have, on the pH of the manure or on some of the parameters that will affect the emission process to understand how we can reduce the ammonia emissions from the grower finisher rooms,” said Dr. Stephane Lemay, Research Scientist in Engineering at the Prairie Swine Centre.

Source: SaskPork Farmscape Episode 1104, October 31, 2002
Source URL: http://www3.saskpork.com/farmscape-saskpork-showarchive.asp?id=1446

 
Click to read more.
 


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>>> INTERNATIONAL NEWS

------------------------------
9.Antimicrobial Susceptibility of S. Suis in France   back to top


The susceptibility of 135 Streptococcus suis strains isolated from pigs and from humans to 13 antimicrobial agents was studied by microdilution and disc diffusion methods using Mueller-Hinton Agar II (MH) supplemented with either defibrinated sheep blood (MHSB) or horse serum (MHHS). Results were similar for both methods used except for penicillin G whose zone diameters were reduced with MHSB compared with MHHS.

The results of antibiotic susceptibility testing presented in this study indicate that beta-lactams can be used in empirical treatment of human and pig S. Suis infections in France.

Source: Journal of Antimicrobial Chemotherapy 50 (2): 201-209, 2002, “Antimicrobial susceptibility of Streptococcus suis isolated from swine in France and from humans in different countries between 1996 and 2000,” Marie, J.; Morvan, H.; BerthelotHerault, F.; Sanders, P.; Kempf, I.; GautierBouchardon, A.V.; Jouy, E.; Kobisch, M.

 
Click to read more.
 
10.Canada Pork Providing Nutrition Table   back to top


Canada Pork is preparing for new nutritional labeling regulations by developing a nutrition reference table for retail distribution.

”The proposal is such that ground pork will require a mandatory nutrition label, however the other whole muscle cuts, the single ingredient muscle cuts will be exempt. Nonetheless, we are working on providing the information in a table so that Canadians can still get information about pork's nutrition profile because it won't be mandated but we still want to showcase the nutrients in pork,” said Mary Ann Binney, Canada Pork Manager.

“Consumers indicate a high interest in nutrition information and that's why providing the nutrition information in our recipes is very important,” said registered dietician Andrea Smith. “Pork is on the 'Health Check' program which was developed by Heart and Stroke.  What that program does is it recognizes that all of our cuts of pork today qualify as lean or extra lean except for our ribs so there's lots of choices to get some good quality protein in your diet through incorporating pork into your recipes.”

Source: SaskPork Farmscape Episode 1100, October 25, 2002 and Farmscape Episode 1107, November 4, 2002
Source URL: http://www3.saskpork.com/farmscape-saskpork-showarchive.asp?id=1435 and http://www3.saskpork.com/farmscape-saskpork-showarchive.asp?id=1449

 
Click to read more.
 

 

****** MARKETS & PRICES ******

National Daily Base Lean Hog Carcass Slaughter Cost
www.ams.usda.gov/mnreports/lm_hg213.txt

National Daily Direct Prior Day Hog Report - Purchased Swine
www.ams.usda.gov/mnreports/lm_hg200.txt

National Daily Direct Prior Day - Slaughtered Swine
www.ams.usda.gov/mnreports/lm_hg201.txt

Monthly Hogs and Pigs Report
http://usda.mannlib.cornell.edu/reports/nassr/livestock/php-bb/2001/hgpg0101.txt

Quarterly Hogs and Pigs Report
http://usda.mannlib.cornell.edu/reports/nassr/livestock/php-bb/

Daily Market Summary
http://agebb.missouri.edu/mkt/bull7c.htm

185-lb Carcass Cutout Report (updated daily)
http://www.ams.usda.gov/mnreports/NW_LS500.TXT

National Base Lean Hog Carcass Slaughter Cost Report (updated daily)
http://www.ams.usda.gov/mnreports/NW_LS295.txt

Iowa-Southern Minnesota Direct Hogs (updated daily)
http://www.ams.usda.gov/lsg/mncs/LS_MPR.htm

Western Cornbelt Lean Value Direct Hogs (updated daily)
http://www.ams.usda.gov/lsg/mncs/LS_MPR.htm

Estimated Daily Livestock Slaughter (updated daily)
http://www.ams.usda.gov/mnreports/SJ_LS710.txt

Actual Weekly Livestock Slaughter (every Thursday)
http://www.ams.usda.gov/mnreports/WA_LS711.txt

Estimated Weekly Meat Production (every Friday)
http://www.ams.usda.gov/mnreports/SJ_LS712.txt

Monthly Livestock Slaughter Report
http://usda.mannlib.cornell.edu/reports/nassr/livestock/pls-bb/

CBS MarketWatch - Daily Financial Outlook
http://cbs.marketwatch.com/news

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