Farmscape News

Quick Action by U.S. on Mandatory COOL Unlikely

Dr. Steve Meyer - Paragon Economics — Thu, 17 May 2012 00:00:00 GMT

Farmscape for May 17, 2012 (Episode 4152)

The president of Paragon Economics suggests, in the event a WTO ruling declaring U.S. Mandatory Country of Origin Labelling a violation of the United States' international trade obligations is upheld, legislative changes will probably be needed to bring the law into compliance.

Earlier this month the World Trade Organization Appellate Body heard the United States' appeal of a November 2011 WTO ruling that U.S. Mandatory Country of Origin Labelling affords U.S. produced livestock preferential treatment and violates U.S. trade obligations.

Dr. Steve Meyer, the president of Paragon Economics, says in the event the original ruling is upheld, the U.S. will have about one year to rectify the situation before Canada and Mexico can apply retaliatory tariffs on U.S. products.

Clip-Dr. Steve Meyer-Paragon Economics:
Two possibilities, one of them is that USDA, the administration could change the rules to meet what WTO is demanding but the problem is the law is pretty prescriptive and most of us don't really think there's a lot of wiggle room to change the rule so that it meets WTO demands and still meets the letter of the U.S. law.

For that reason most of us think that it's going to be a legislative fix in that congress is going to have to change the actual law in order to meet the WTO conditions and that's more difficult to do.

There's been talk about tying it to the farm bill.

The way the farm bill is moving now and the lack of attention that this has gotten so far in the U.S. and the fact that we don't have a resolution to this appeal yet makes that less likely and so that's a challenge that we have of trying to get congress to actually act on something as, what they would view as inconsequential as this, what we would view as quite consequential, changing law in order to meet the WTO ruling.

Dr. Meyer says, given there is an appeal and it will be some time before a decision is rendered, he doesn't believe action on Mandatory Country of Origin Labelling is imminent but rather is down the road anywhere from a few months to a year or so.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Country of Origin Labelling: Potential Trade Barrier of Choice

Peter Clark - Grey, Clark, Shih and Associates — Wed, 16 May 2012 00:00:00 GMT

Farmscape for May 16, 2012 (Episode 4151)

A Canadian based international trade consultant suggests Country of Origin Labelling has the potential to become one of the non-tariff barriers to trade of choice in the future.

Earlier this month the World Trade Organization Appellate Body heard the United States' appeal of a November 2011 WTO ruling that U.S. Mandatory Country of Origin Labelling violates U.S. trade obligations.

In its ruling, the panel investigating complaints from Canada and Mexico determined the law affords U.S. produced livestock preferential treatment and fails to meet consumer education and food safety objectives.

Peter Clark, with Grey, Clark, Shih and Associates, observes the case has generated a broad range of interest.

Clip-Peter Clark-Grey, Clark, Shih and Associates:
In terms of the challenge it's been Canada and Mexico and we've worked pretty closely together presenting the issues from our respective viewpoints and frankly there hasn't been too much difference in those approaches other than the Mexicans plead a few other issues because they're a developing country.

There have been eight or nine other countries who have had an interest in the issue and the interests have ranged all over the place from supportive of our position to more or less supportive of the United States to the Europeans trying to keep all of their options open.

The interest is that Country of Origin Labelling, if it were to get through the WTO in some form and, in fact the panel reports indicate how you can do it legally under the WTO, is going to be one of the non-tariff measures of choice in the future.

Clark acknowledges it's difficult to predict how long the issue might be dragged out but Canada's pork producers, who enjoy a good relationship with their U.S. counterparts would dearly love to find a negotiated solution because that would provide quicker relief.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Manitoba Pork Producers Urge U.S. to Amend COOL to Comply with Trade Obligations

Andrew Dickson - Manitoba Pork Council — Tue, 15 May 2012 00:00:00 GMT

Farmscape for May 15, 2012 (Episode 4150)

Manitoba Pork Council is hoping the U.S. will make the changes to Mandatory Country of Origin Labelling needed to bring it into compliance with its international trade obligations.

Last November the World Trade Organization panel investigating complaints by Canada and Mexico over U.S. Mandatory Country of Origin Labelling determined the law affords imported livestock less favorable treatment than like domestic livestock and violates U.S. trade obligations.

Earlier this month the WTO Appellate Body heard the U.S. appeal of that ruling and its decision is expected in July.

Manitoba Pork Council general manager Andrew Dickson estimates the legislation has cost Manitoba pork producers 200 million dollars each year since it took effect.

Clip-Andrew Dickson-Manitoba Pork Council:
Labelling like this over and above the usual type of labels you find like the company name and the price per pound and whether it's been inspected by USDA for quality and food safety, this is an additional label.

In processing plants it creates a real problem because now they have to stream all these different products coming into the slaughtering plant depending on whether the animal was born in Canada or was born in the United States, whether it was raised in Canada or raised in the United States, whether it was slaughtered in Canada or slaughtered in the United States.

So just to make life easy a lot of the big companies essentially said we'll just buy American owned product.

In pork, because imports are relatively small compared to their total market, it was easier for most companies not to bother with importing product and it became a barrier to trade.

It was just more costly to do business that way.

Producers themselves, because they can't get contracts with processing plants, started cutting back on buying for example weanling pigs out of Manitoba because the processors they sent the finished animal to didn't want them.

Dickson says, assuming the Appellate Body upholds the original ruling, the hope is common sense will rule and the Americans will adjust the farm bill currently before congress so it enables the Americans to meet their international trade obligations.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Anticipated Lower Feed Costs Expected to Trigger U.S. Sow Herd Expansion

Dr. Ron Plain - University of Missouri — Mon, 14 May 2012 00:00:00 GMT

Farmscape for May 14, 2012 (Episode 4149)

An agricultural economist with the University of Missouri warns the prospects of lower feed costs could trigger an expansion of the U.S. sow herd that would aggravate the current over-supply of pork.

A combination of lower live hog prices due to sluggish domestic and export demand for pork and continuing high feed costs has pushed most North American pork producers back into the red.

Dr. Ron Plain, an agricultural economics professor with the University of Missouri, observes contrary to seasonal trends hog prices are lower than they were a month ago and feed costs are still high.

Clip-Dr. Ron Plain-University of Missouri:
The outlook is for a lot lower feed costs so USDA is forecasting we're going to plant the most acres to corn here in the United States since 1937 so if the weather cooperates, and we're off to a very good start, spring plantings are well above normal.

It's been fairly warm and dry and if we have a good growing season we're looking easily at a record corn crop so a guy's got to worry about a herd expansion.

We've not had much growth at all in the breeding herd in North America despite record hog prices and a lot of that I attribute to the fact that feed costs have been so high and the feed grain supply so tight.

Once we start looking at much lower corn prices and more adequate feed grain supply I really worry that we're going to start saving gilts and expand the breeding herd.

If so that's going to mean more hogs on the market in 2013 and unless we get some better demand that could be a very tough situation.

Dr. Plain says in the short term managing feed costs will be critical.

He recommends buying hand to mouth and keeping a close watch on the weather.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Negative Spring and Summer Profitability Projected for Pork Producers

Dr. Ron Plain - University of Missouri — Fri, 11 May 2012 00:00:00 GMT

Farmscape for May 11, 2012 (Episode 4148)

An agricultural economist with the University of Missouri blames a combination of milder weather which has resulted in increased pork production and softer domestic and export demand for pork for a dip in hog prices this spring which has pushed profitability back into the red.

Normally in late April and May, as temperatures rise slowing hog growth and consumer demand for pork increases due to barbecue season, we see a very fast run-up in live hog prices but that hasn't happened this year and right now prices are actually lower than they were six weeks ago which is most unusual at this time of year.

Dr. Ron Plain, an agricultural economics professor with the University of Missouri, says weather is the big driver of the seasonal change in hog prices.

Clip-Dr. Ron Plain-University of Missouri:
Normally hot in the summer, cold in the winter and pigs respond to temperatures.

We had a very mild winter this past winter.

Hogs grew better than average so we got heavier slaughter weights and pigs probably going to slaughter a few days early because of the rapid growth. That put more pork on the market in late winter, early spring than expected.

We have not continued to see those high temperatures thus far here in May.

Temperatures have been pretty typical for this time of year and as a result we're not seeing the run-up in temperatures that tends to slow gains down so that's part of the problem.

The other part of the problem on the weak hog prices looks like a softening in both domestic and export demand for pork.

Dr. Plain says, with hog prices lower than a month ago and feed costs remaining high due to the very tight supplies off of the 2011 harvest, profitability is back in the red.

He says, while feed supplies are expected to increase in the second half of the year reducing prices, for this summer it looks like feed is going to be awfully pricey.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Swine Health Intelligence Network Expected to Improve Response to Emerging Disease Threats

Dr. Daniel Hurnik - Canadian Swine Health Board — Thu, 10 May 2012 00:00:00 GMT

Farmscape for May 10, 2012 (Episode 4147)

The Canadian Swine Health Board is confident improved communications among swine veterinarians across Canada will improve their ability to detect and respond to emerging diseases.

To address gaps identified within the Canadian swine industry's national surveillance system the Canadian Swine Health Board is spearheading the creation of a new national Swine Health Intelligence Network.

Dr. Dan Hurnik, the chair of the Canadian Swine Health Board's Long Term Disease Risk Management Committee and a member of the faculty of the Atlantic Veterinary College at the University of Prince Edward Island, explains project planners are creating an internet based social network that will allow swine health professionals to share information and thereby respond more quickly.

Clip-Dr. Dan Hurnik-Canadian Swine Health Board:
At this point we still have to manage the details of how the information will flow because we will need to get permission in each case that if information is used that the people supplying it are comfortable with what it's going to be used for.

In a nutshell it's going to be veterinarians who have a relationship with farmers and the participating farms are comfortable about sharing their health information, not their personal information, not specifically where the farms are but a general sense of what's happening on farms in terms of new diseases.

Veterinarians will then share amongst each other without farm names some of the trends that are happening providing again the veterinarians want to participate and then the multiple herd level data that's not identified will be analyzed by epidemiologists statistically to see if the trends are real or whether it's just a random activity out on farms.

Dr. Hurnik says the Swine Health Intelligence Network will be a set of eyes that will pick up new trends early.

He says by recognizing problems and initiating action sooner the response time will hopefully be much shorter and the industry will be better served.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Pork Producers Encouraged to Be Aware of the Signs of Brachyspira

Dr. Alan Theede - Canadian Association of Swine Veterinarians — Wed, 09 May 2012 00:00:00 GMT

Farmscape for May 9, 2012 (Episode 4146)

The Canadian Swine Health Board is encouraging pork producers to make themselves aware of the signs of brachyspira and what they can do to keep their operations free of the infection.

Brachyspira is the name of the family of bacteria that causes swine dysentery.

To familiarize pork producers with the signs of brachyspira the Canadian Swine Health Board has issued a Swine Health Awareness Bulletin which outlines the infection and what to look for.

Dr. Al Theede, the Canadian Swine Health Board's research coordinator, says the infection isn't all that common but it is easily transmitted and can cost seven to eight dollars per finished pig in medications costs, reduced growth rates, poor feed conversions and so on.

Clip-Dr. Al Theede-Canadian Swine Health Board:
Producers and veterinarians etcetera are familiar I think with swine dysentery which is an old disease that's been around in the pig population globally for many many years and probably was described in some detail back in the 60s and 70s.

In recent years swine dysentery has all but disappeared and it wasn't on anyone's radar as a concern or a big issue in the past 10 or 15 years at least but recently a few more cases are starting to show up almost around the world, including here in western Canada, in the mid-west U.S. and also in Europe and other parts of the world.

We're talking just a handful of farms, eight or ten farm sites in western Canada and when I say the eight or ten farms that's over the last two or three years so it's not a huge issue but the potential is there and, as I said earlier, if you're looking at something like eight dollars added cost or poorer performance per market pig that can be a lot of money fairly quickly.

For more information on brachyspira Dr. Theede recommends producers contact their local swine health veterinarian or visit the Canadian Swine Health Board web site at swinehealth.ca.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Declining Live Hog Prices Buck Seasonal Trends

Mark Ferguson - Sask Pork — Tue, 08 May 2012 00:00:00 GMT

Farmscape for May 8, 2012 (Episode 4145)

The Manager of Industry and Policy Analysis with the Saskatchewan Pork Development Board blames increased U.S. pork production and a decline in the value of pork for lower live hog prices this spring.

In most years live hog prices rally in March, April and May as growth rates slow due to warmer temperatures approaching summer and demand for pork increases due to barbecue season.

Mark Ferguson, the Manager of Industry and Policy Analysis with Sask Pork, observes hog prices have been in a holding pattern since last November averaging about 155 dollars per hundred kilograms before falling to an average of 147 dollars last month.

Clip-Mark Ferguson-Saskatchewan Pork Development Board:
Canadian hog prices are based on United States markets and we basically have a formula that determines it and the exchange rate is in there.

This time it's not the exchange rate that's the problem, it's been relatively stable around par.

The problem is that U.S. lean hog futures markets and cash markets have been declining since February and cash prices as a result have been declining since the beginning of April.

The main reason seems to be just a general decline in pork meat prices.

The U.S. carcass cut-out which measures the wholesale value of meat, it's been in decline and it's actually 17 percent lower than what it was a year ago so meat prices are probably the main reason.

Another reason could be that U.S. pork production is actually up 3.6 percent from last year and the stocks of pork in cold storage as of March 31st, they're also up 6.7 percent so there's just an increased supply of pork out there and that's definitely contributing to some lower pricing.

There's also rumors there's a bit of a slow-down in U.S. pork exports right now to countries such as China.

Ferguson notes there were some great opportunities to lock in solid prices for most contract months up until about March of this year so hopefully producers were able to take advantage of those opportunities and don't have to ride the cash market right now.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Swine Health Intelligence Network Expected to Improve Response to New Swine Disease Threats

Dr. Chris Byra - Greenbelt Swine Veterinary Service — Mon, 07 May 2012 00:00:00 GMT

Farmscape for May 7, 2012 (Episode 4144)

A national communications network being created on behalf of the Canadian swine industry is expected to improve the ability of swine veterinarians to respond to new disease threats.

To address gaps identified in the national surveillance needs within the Canadian swine industry the Canadian Swine Health Board has initiated the development of the Canadian Swine Health Intelligence Network.

Project Manager Dr. Chris Byra, with Greenbelt Swine Veterinary Services, one of a group of companies involved in the initiative, explains the Canadian Swine Health Intelligence Network is a social network supported by data collected from swine practices which will allow veterinarians to discuss problems from across the country.

Clip-Dr. Chris Byra-Greenbelt Swine Veterinary Services:
The Swine Health Intelligence Network will be made up of veterinary practitioners that deal with swine only or primarily swine, some epidemiologists that are involved with provincial government labs, universities, etcetera that have an interest in this and the Canadian Swine Health Board itself will be a part of this.

Producers of course are indirectly part of this in that their practitioner represents them.

Practitioners, it will very rapidly improve their learning curve when a new disease occurs but it'll also give them a better understanding of what disease control methods are working because now all veterinarians across the country working with swine will have the ability to communicate on a very regular basis and have some data to support what they are suggesting.

The swine industry will gain primarily through improved disease control but also potentially have the ability to respond to new health issues that do come up and more rapidly develop control methods and have a better understanding of what's going on.

Dr. Byra says data will be collected from farm medical records with farm identification stripped out so there will be no way to identify which farms are included.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

National Biosecurity Training Program Participation Exceeds Expectations

Dr. Brad Chappell - Swine Health Professionals — Fri, 04 May 2012 00:00:00 GMT

Farmscape for May 4, 2012 (Episode 4143)

The Canadian Swine Health Board's biosecurity coordinator for Manitoba reports participation among the province's pork producers in the National Biosecurity Training Program has exceeded all expectations.

The National Biosecurity Training Program is based on the Canadian Swine Health Board's National Biosecurity Standard and was developed to familiarize Canada's pork producers with the principles that will help protect their operations from the introduction of disease and offer advice for improving biosecurity.

Dr. Brad Chappell, a swine veterinarian with Swine Health Professionals in Steinbach and the provincial coordinator for the Canadian Swine Health Board, says the training covers all aspects of biosecurity on the farm.

Clip-Dr. Brad Chappell-Canadian Swine Health Board:
The level of interest in this program has been very impressive.

The uptake by the producers in the province has exceeded our expectations.

As you already know the hog industry in Manitoba is very progressive.

At this time we've had 453 producers go through the training program, which represents approximately 65 to 70 percent of our industry.

A part of the program is the veterinarians visiting the farms and at this time we have 380 veterinary visits.

The veterinary visits themselves are a key component where the veterinarian is able to spend time on the farm discussing different aspects of biosecurity with the entire staff of the farm and also having a thorough walk through the farm identifying the benefits of the biosecurity or the potential enhancements that could help in reduction of disease entrance into the farm.

Dr. Chappell says uptake of the program in Manitoba has been impressive which shows the industry is very keen in protecting the health status of our herd.

For more information on the National Biosecurity Training Program contact your local swine veterinarian, your provincial pork organization or visit the Canadian Swine Health Board web site at swinehealth.ca.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Canadian Swine Health Board Issues Swine Health Awareness Bulletin

Dr. Alan Theede - Canadian Association of Swine Veterinarians — Thu, 03 May 2012 00:00:00 GMT

Farmscape for May 3, 2012 (Episode 4142)

The Canadian Swine Health Board has issued a Swine Health Awareness Bulletin aimed at familiarizing pork producers with the symptoms of brachyspira.

Brachyspira is a family of bacteria that causes swine dysentery.

In recent years swine dysentery had all but disappeared but a few cases have started to show up around the world.

Dr. Al Theede, the Canadian Swine Health Board's research coordinator, explains the one page swine health bulletin, English on one side and French on the other, is intended to make producers aware of what to look for.

Clip-Dr. Al Theede-Canadian Swine Health Board:
Being something that we really aren't too familiar with we thought it would be valuable to get this awareness bulletin out to producers, veterinarians and to the industry really just to make them aware of it because it is an important disease in that it's easy to transmit.

Its really transmitted by contaminated manure and transmits place to place or animal to animal through manure and feces.

It can cause a fair bit of economic loss.

Some of the old estimates talk about seven or eight dollars per finished pig in medication costs, slower growth rate, poor feed conversion and so on and so it can be a significant disease.

It isn't very common but we want people to be aware of it so that if they see something untoward which is going to be diarrhea in grow and finishing pigs.

We're talking about pigs that are probably more than 10 or 12 weeks old in the grow finish area, they have diarrhea that you really can't explain, there may or may not be some blood, sort of bright red blood in that diarrhea and often there's a lot of mucus, sort of slimy stuff associated with it so, when you see something like that, it's just to make people aware of it and they should talk to their veterinarians and get it dealt with as quickly as possible.

For more information on brachyspira Dr. Theede recommends producers contact their local swine health veterinarian or visit the Canadian Swine Health Board web site at swinehealth.ca.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council