December 28, 2006

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Your fast-track guide to reports in this issue:

• Greetings for 2007
• Denmark drops the Hamp
• Pork output beats forecasts
• Dawn of a bigger Europe
• China considers a futures contract
• Doubts over Chinese corn exports
• Integrators and processors
• Russia grows more protein
• Prices predicted to mean more wheat
• Japan’s biggest producers
• Europe tracks zoonoses
• Shows and seminars
• People in the news
• Updates on companies
• Data in brief
• Latest job opportunities
• Send us your news
  

Greetings for 2007
On behalf of everyone at Pig International, we wish you profit and satisfaction from your business activities in 2007. Thank you for your continued interest and support.

Denmark drops the Hamp
Denmark is removing the Hampshire breed from its national pig breeding system after January 2007, the next edition of Pig International reports. The move, reckoned to save €2 million, was taken after deciding that the performance and health aspects of the Danish Hampshire no longer justified its inclusion in what was previously a 4-breed programme also including the Landrace, Large White/Yorkshire and Duroc.

Although the Hampshire once represented up to 10% of the genes of the country’s slaughter pigs, more recently its share has been no more than 4%. Usage in Denmark has decreased especially over the 2 years, linked to a belief among Danish producers that more severe PMWS or circovirus problems have occurred in the progeny of Hampshire-crossbred boars as well as to the greater adoption of artificial insemination so that the Hampshire’s natural mating merits became less important.

Pork output beats forecasts
Global pork production in 2006 has reached 108.1 million metric tons carcase weight, considerably more than the total of under 107 million tons that had been predicted, according to a new report from the FAO food and agriculture agency of the United Nations. Asia gave 63.1 million tons (see Table) rather than the 61.6 million tons first predicted. North + Central America contributed 12.9 million tons instead of 12.7 million tons. South America’s 4.5 million tons last year was only slightly below the forecast rate of 4.53 million tons. Africa went up to 900 000 tons from the 853 000 tons expected. But production in Europe including Russia reached 26.1 million tons and not the 26.3 million tons shown in forecasts.

Among the Asian countries it is China again that has been far out in front on annual output. Its 2006 total of 54.1 million tons meant a 3.7% increase from the amount in 2005 and 9% more than in 2004. Percentage changes in North/Central America ranged from an increase of 2.2% for USA to decreases of 0.8% for Canada and 0.9% for Mexico. South American figures were led by the 17% rise recorded for Chile although both Brazil and Argentina saw virtual standstills in their own yearly total. Nigeria and South Africa continued to be the major African players without greatly changing output, while European results included 1.1% more from the members of the EU-25.

FAO’s meat analysts believe the world pig sector in 2007 will expand production globally by about 4%, raising the total to a new record of 112 million tons (details at website www.fao.org/WAICENT/faoinfo/economic/giews/english/fo/index.htm). They expect continued 5%/year expansion in China as Chinese production becomes more concentrated in the areas growing feed grains. A favourable outlook is predicted for Brazil, Mexico and Vietnam. The USA also is forecast to expand output. The analysts note that the extra supplies of recent years have allowed the USA to increase its share of global pigmeat exports from 16% in 2003 to an estimated 25% in 2007. World pork exports during 2007 are forecast to reach 5 million tons or 4.2% more than 2006, due to strong demand from Asia and from Russia.

Dawn of a bigger Europe
Romania and Bulgaria join the European Union as full members on 1st January 2007. In 2005 Romania contained 6.59 million pigs and there were 930 000 pigs in Bulgaria, on FAO figures. On the basis of Eurostat reports it seems that the new 27-country EU will amount to about 159.2 million pigs.

China considers a futures contract
Significant pig price fluctuations in the Chinese market have made it increasingly likely that China will introduce its own futures contract on live pigs, the deputy general manager of the DCE commodity exchange has told a forum on modernising China’s animal husbandry. DCE, the biggest of China’s 3 futures exchanges and a trading place already for maize and soybeans, is located in the north-eastern Chinese district of Dalian. But he said the live-pig futures contract would be aimed mainly at one of the largest pig-producing provinces of the country, with the launch most probably in a central province such as Hunan, Hubei or Henan. When reporting that national production of 540.77 million pigs in the first 9 months of 2006 meant a 3.5% increase from the previous year, China’s ministry of agriculture identified the Top 5 provinces for pig production as Sichuan, Henan, Hunan, Shandong and Hebei.

Doubts over Chinese corn exports
China today is a net exporter of maize, but Beijing officials say it will become a net importer within just a few years because of its rapidly expanding corn processing industries producing biofuels and foods. In 2006, Chinese growers have produced 142 million tons of maize, up by 2.6 million tons from 2005 and 17.8 million tons above the 5-year national average. Uptake by local processors has already started to limit the quantity available for export, however. Exports in the first 9 months of 2006 were down by more than 68% at only 2.3 million tons, compared with the 8.61 million tons of maize exported in 2005.

Integrators and processors
China’s biggest pork company, Shineway (Shuanghui) from Henan province, has passed into foreign ownership after its purchase for US$328 million by an offshoot of US-based investment group Goldman Sachs was approved by the Chinese government. Shineway was previously a state-owned enterprise, but had been offered for sale under its formal name of Henan Shuanghui Group through the assets management commission of the provincial government of Henan. The successful purchaser (against competition from US investment house JP Morgan) is a Hong Kong-based consortium known as Rotary Vortex in which Goldman Sachs is the 51% majority shareholder with CDH China Fund as the other main investor. Goldman and CDH together also hold about 13% of the shares in another Chinese processor, Nanjing-based Yurun Food Group.

Yurun itself has paid about US$24.5 million through subsidiaries Nanjing Yurun Food Co and Anhui Yurun Meat Processing, to buy factory land assets formerly held by its chairman and his wife. The land, which Yurun had rented, now will be used to build more slaughtering facilities. Local reports say Yurun has a target of extending its slaughter capacity to16 million pigs/year by the end of 2007.

One of Canada’s largest producers, 57 000-sow Hytek from Manitoba, has signed an agreement to purchase equity in Tianson Foods of Chongqing, China. More correctly called Chongqing Tianson Food Holdings Co, the Chinese company is an integration that runs its own feedmill, produces the pigs for its slaughter/processing activity and has retail outlets. Tianson also has undertaken a licensing arrangement to stock its nucleus with animals from Hytek’s Saskatchewan breeding subsidiary Fast Genetics and to become a distributor in China for the stock.

In north-east China, pork producer/processor Chuming Group has officially opened a US$2.9 million feedmill that it says will support its expansion of contract pig production in the peninsula of Dalian. Before building the 200 000 tons/year feedmill at Wafangdian, Chuming outsourced all feed for its own farms and contract units from third-party mills. Currently the group slaughters around 400 000 pigs per year.

American meat processor Hormel Foods has paid US$20.48 million for 49% of a pig-producing agribusiness operation in Vietnam in which the majority shareholder is Philippines-based brewing giant San Miguel Corporation (SMC). Owner of the largest pig producer in the Philippines (Monterey Foods) and of meat processing business Purefoods, San Miguel began in Vietnamese pork production in 2003 with the US$35.5 million acquisition of a facility at Binh Duong in the southern province of Dong Nai from Taiwan Tea Corp Vietnam Investment Company.

Canadian group Maple Leaf Foods has indicated January 2007 as the start date for seeking prospective purchasers of its Maple Leaf Animal Nutrition offshoot, which is being divested as part of a group decision to re-organise its protein value chain operations away from fresh pork and towards a focus on value-added meats and meals. The restructuring will include downsizing Maple Leaf’s pig production and primary meat processing arms as well as the nutrition activity, which includes Shur-Gain in Eastern Canada and Landmark Feeds in Western Canada. Excluding assets to be retained to service the group’s own pig production operations in the west of the country, the business was reported to have sales of approximately C$650 million (US$568 million).

Two of Finland’s big names in the international meat business have mounted rival bids for the Swedish Meats company in Sweden. Owned by a farmer co-operative with 22 500 livestock-producing members, Swedish Meats is the largest single operator in Sweden’s pigmeat sector with around 65% of slaughtering and 40% of meat processing nationally. Its turnover in the first 9 months of 2006 was €788 million. First bid came from HK Ruokatalo, Finnish owned and with meat and food operations in Finland, Estonia, Latvia, Lithuania, Russia and Poland. It offered €60 million in cash plus the transfer of some 4.8 million of its shares while also taking on the liability for Swedish Meats debts amounting to about €185 million in June 2006. An assembly of Swedish Meats co-op members has voted in favour of selling to HK Ruokatalo rather than to rival Finland-based meat processor Atria. Cash-plus-shares bid from Atria worth about €143.5 million would not have involved assuming the Swedish company’s debts and was to buy only the processed meat operations (brand names include Scan, SLP Pärsons, Esca and Skånekött) for merging with its own processing arm of Atria Sweden/Lidells/ Sibylla.

Russia grows more protein
Russian government officials indicate that protein meal supplies to pig and poultry producers in Russia will increase rapidly. They have revealed an immediate target to double the area of land cultivated for rapeseed to convert into biodiesel, which will also yield large quantities of rapeseed meal to include in animal feeds. The area growing rapeseed in Russia has already increased from 250 000 hectares to 500 000 hectares in recent years. Now the government wants to see one million hectares planted for the next harvest. Negotiations have started with European companies to obtain the seed and to arrange up-to-date oil processing facilities.

Prices predicted to mean more wheat
High world prices for feed grains will persuade crop growers to devote considerably more land to producing wheat over the coming year, say grain market observers. This could compensate for a standstill in yields and so help the annual wheat crop keep pace with rising demand. International Grains Council figures for 2006 show 585 million tons of wheat produced globally and 606 million tons consumed. Meanwhile, the rise in cereal prices internationally is being forecast to reduce the inclusion of grain in animal feeds around the world by about 1% in the 2006/07 harvest year. Feed manufacturers are expected to use less wheat at 94 million metric tons, but more maize (470 million tons) and barley (102 million tons).

Japan’s biggest producers
A Japanese survey reported by Pig International has identified a new leader among the biggest pig producers in Japan. Shinmei Chikusan had been shown at Number 2 on a list from 5 years ago, with 20 000 sows, but is indicated to have started 2006 with an expansion to 32 000 sows. Second-placed on the latest list from weekly newspaper Shokuniku Tsushin was Inter Farm, the new name of former Nippon Swine Noujou from Aomori Prefecture. In the previous analysis it had been shown in first place with 30 000 sows, but is suggested to have cut back more recently to about 28 000 sows. Third place went to Higata Meat from Chiba, with 24 500 sows. It was shown before at just under 15 000 sows.

Europe tracks zoonoses
Campylobacter infection from consuming poultry products caused more human illness in European countries in 2005 than Salmonella contamination of eggs, poultrymeat or pigmeat, on indications from a report by the European Food Safety Authority. Analysing zoonosis data supplied by the European Centre for Disease Prevention and Control and relating to 24 EU member states plus Switzerland, Norway and Iceland, it identified Campylobacteriosis as the most reported example of animal-to-human infection. A total of 197 363 recorded cases of Campylobacter affecting humans gave an incidence rate of 51.6 per 100 000 compared with 176 395 Salmonella cases giving 38.2 per 100 000. These bacteria were the main causes of food-borne illness leading to hospitalisation. Most of the Campylobacter infections were linked to fresh poultry. Salmonella outbreaks were caused most often by eating eggs and bakery products although the infection was detected in fresh poultrymeat and pork.

Shows and seminars
Agriflanders exhibition in Ghent, Belgium, 11th-14th January 2007 is set to include a competition and sale of Belgian breeding pigs on 12th January.

April 2007 will see the 3rd Asian Pig Veterinary Society Congress take place in a Yangtze setting, when it is held 22nd-25th April in the Chinese city of Wuhan. Capital city of Hubei province in central China, Wuhan stands on the banks of the Yangtze river.

On dates of 26th-28th April, the 3rd agriChina agricultural exhibition returns to Beijing. It is organised by DLG. The German agricultural society has also announced AgroFarm 2007 for Moscow in Russia 19th-21st June 2007 and farm machinery show Agritechnia for Hannover in Germany on 13th-17th November.

Challenges facing the meat industry, including climate change, emerging consumer trends and changes in European Union regulations, will be highlighted at the UK’s 2007 Meat and Livestock Commission Outlook conference announced for 30th January in London. Each year the event draws around 200 business leaders, bankers and industry representatives.

Next edition of the annual China Animal Husbandry Expo is set for Ningbo, Zhejiang province, 19th-21st May 2007. Last year the expo took place in Dalian, north-east China, where more than 500 companies exhibited. It has been organised annually since 2003 by the China Animal Agriculture Association.

World Pork Congress of 2007 will coincide with the 4th world conference of the International Meat Secretariat when it takes place 15th-17th September in Nanjing, China. Also at the same venue at that time will be the 5th China International Meat Industry Exhibition and the 2nd China Meat Foodstuff Festival.

People in the news
MIK International AG has reported the death of company founder Johann Heinrich Michel. He established Heinrich Michel Agrarbautechnik in 1968 and MIK Michel Kunststoffe in 1979, with MIK International AG starting in 2001. The pig flooring systems company recently completed its move to the new address of Berggarten 1, 56427 Siershahn, Germany, telephone +49 2623 600 800 and fax +49 2623 600 840.

Dr Min-Yu (M.Y.) Huang has been named new livestock technical director for American Soybean Association’s international marketing arm in China. He is based at the Beijing office of ASA.

Osborne Industries, USA, has appointed Robert Walbeek as sales and marketing director for China at Osborne’s office in Shanghai.

Geert Rutten has been appointed by Hypor as general manager China for the joint ventures Sichuan Hypor New Hope Pig Breeding Farm and Shandong Hypor Liuhe Pig Breeding Farm, currently completing construction of units to receive the first pigs from the breeder in January 2007.

Carlos Lora has joined PSI Heating Systems in the USA as sales manager. Reporting to the director of sales, Carlos will assume responsibility for leading all PSI sales activities worldwide for the manufacturer’s series of forced-air and radiant heating systems for agricultural confinement facilities.

Genesus (Keystone Pig Advancement Inc.) in Canada has appointed Jim Long as president and Mike Van Schepdael as executive vice-president, following the purchase by the breeding company’s directors of all shares held by Pat and Susan O’Meara until their retirement. Dr Robert Kemp remains as senior geneticist at Genesus, which reckons to have the world’s largest registered purebred herd.

Updates on companies
DSM Nutritional Products reports the official authorisation in the European Union for use of its benzoic acid product VevoVitall in piglet feeds. This marks the second EU approval for the product, already in use in feeds for grow-finish pigs to decrease the emission of ammonia into the environment. DSM also notes studies demonstrating a financial gain of €1-3/pig from the product’s addition to the feed.

Agil Ltd in the UK has been acquired by British biotechnology company Kiotech International plc, in a move described as providing additional resources to further extend the company’s marketing network and increase its range of feed additives. The management team at Agil remains unchanged. Richard Edwards becomes chief executive officer of Kiotech International.

Hermitage Pedigree Pigs has started to restock a 5600-sow operation in the Belgorod region of Russia with purebred and hybrid gilts and boars from the breeding company’s high-health multiplication units in Ireland. First shipment comprised 852 gilts flown to Moscow for onward transportation by road to Belgorod. The next batch of gilts is in quarantine and due to depart Ireland in the middle of January.

Dosmatic USA/International Inc has opened an office at Buenos Aires in Argentina to support the Latin American distribution network for its non-electric injector proportioners. General manager of Dosmatic Latin America is Gustavo Padín.

Kanters Special Products bv has moved to a new office and manufacturing facility in the Netherlands. Its address becomes: De Stater 32, 5737 RV Lieshout, Netherlands, telephone +31 499 425 600 and fax +31 499 425 610.

Thijs Hendrix Beheer bv, majority owner of breeding and lifesciences company Hendrix Genetics based in the Netherlands, has announced an agreement for its purchase of the 20% shareholding in the hands of French private equity group Natexis Industrie. Hendrix Genetics owns pig management software developer Pigs-Online besides being a poultry breeder under brand names including Shaver, Isa and Babcock.

Marketing/logistics company Diethelm Keller SiberHegner (DKSH) in Vietnam has become distributor of the Power-Protexion range of products from Impextraco, Belgium.

US biotechnology company MariCal has announced an expansion into the worldwide animal health and nutrition industries, where it sees its patented calcium receptor technology for aquatic species also having applications in providing dietary formulations for livestock. Joining its board of directors are former Alpharma animal health president Bruce Andrews and Edward McMillan, formerly chief executive of Purina Mills.

Meat and Livestock Commission in Britain has reported exports of 4000 breeding gilts to Russia by British breeders after they exhibited at the EuroTier show in Germany.

Data in brief
Japan’s imports of pigmeat fell by 20% to 600 500 tons during the first 10 months of 2006, reflecting high Japanese stocks at the start of the year. The impact was especially on frozen pork, the volume imported dropping by nearly one-third to 416 700 tons. Imports of chilled, boneless cuts were 10% higher at 182 250 tons because they were unaffected by the high storage volumes. Danish supplies to Japanese customers were down by 30%, those from Canadian suppliers lower by 27%. First indications for 2007 have been that purchases by Japan could stay down as more beef is consumed.

Ukraine’s state statistics committee reports an on-farm total of 8.11 million pigs nationally in November 2006, up by 10.3% from the level 12 months earlier.

Poland’s pig production in Poland in 2006 was negatively affected by drought which resulted in grain shortages, according to the Polish deputy agriculture minister quoted by Baltic Business News.

Latest job opportunities

Our help wanted listings aim to inform pig professionals about employment opportunities worldwide. Contact our sales staff at gstadel@wattnet.net for more information on placing a listing in upcoming issues.

Big Dutchman

The Big Dutchman group develops and sells housing equipment and computer-controlled feeding systems for modern pig and poultry management. For more than 60 years now, the name Big Dutchman has been a trademark for long-lasting quality and unsurpassed know-how.
As recognized market leader of the entire industry and to put our future plans into practice, we rely on the commitment and initiative of our staff members. Because of this we are always looking for enthusiastic and interested personalities to add to our dynamic team of approximately 1150 employees worldwide.

We would like to further strengthen our sales area Pig and are currently seeking a highly motivated (m/f)

• Sales Manager Asia

who will guide, advise and support the distributors in this sales area responsibly and who will also expand our distribution network.

For this position we are seeking for a sales personality who ideally already has experience in the sale of agricultural investment goods and also a sound knowledge and experience in pig production. Initiative and organizational skills are further important requirements for this challenging position.

You will be active in the sales area, analyze the market situation, develop sales strategies and furthermore you will be contact person for our customers. We guarantee a sufficient period of vocational adjustment and an intensive training program. For this position excellent communication skills in English are mandatory and the Sales Manager will be based in our office in Bangkok. The position requires frequent travelling.

Are you interested in this versatile task in our dynamic and sales-driven team? If so, please send us your application, including CV and indicate your salary expectations. Your application will, of course, be treated in strict confidence!

Do not hesitate to call us if you have any questions regarding this position!

Big Dutchman AG • Mr Dirk Grave • P.O. Box 1163 • 49360 Vechta • Germany
phone: +49 (0) 4447/801-304 - fax: +49 (0) 4447/801-5304
E-mail: humanresources@bigdutchman.com • Internet: www.bigdutchman.de

Calendar

The dates shown are given in good faith, but please check with the organisers in each case. Details of new events for possible listing should be sent to: Calendar, PIG INTERNATIONAL, 3AQ Lavant House, Lavant Street, Petersfield, Hampshire GU32 3EL, England. e-mail: best@watt-4.demon.co.uk

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Your free copy of the Pig International Electronic Newsletter is sponsored by M+PAC - a mycoplasma vaccine. Manufactured by Schering Plough International, M+PAC is faster acting and longer lasting protection. Visit our website at www.spah.com for more information.