BPEX Weekly - 6 June 2008

In this weeks weekly... Alex James Hits the Heights, Recipe Requests Flood In, More Backing for Campaign, Lovepork Latest, Cheap Sausages, Waitrose Opens Smaller Stores, Tip of the week – Temperature, Pig Herd Health Plans, Diffuse Water Pollution, Technical Annual Report, BMPA on Animal Feed, Don’t Leave Data Gathering Dust, Pfizer Pig Trainee of the Year, Export News, Canada Exports to Russia, US Market Picks Up, Smithfield Foods Income Plummets, Meat Consumption Doubles
China Tax on Soyoil, International Prices

Marketing News

 

Alex James Hits the Heights

Former Blur guitarist Alex James promoted the campaign on TV and radio to much acclaim during the week. The musician has become a well-known  'foodie' celebrity, an award winning cheesemaker, small time pig farmer, TV presenter and a broadsheet columnist! Alex conducted a series of half-day radio interviews, followed by regional and national press interviews these included Channel 5 news, BBC1 Breakfast and This is Derbyshire online.

 

Recipe Requests Flood In

The SBYH thank-you email, was sent to nearly 4,000 people and offered them the opportunity to receive the latest recipe book.  Over 300 requests have come in during the week including requests from many foreign countries as far afield as Australia, USA, Africa, Italy, Belgium, Austria, Slovenia & Spain.

 

More Backing for Campaign

In the June issue of Eat-Out – the magazine aimed at the pub trade and branded restaurants – they carried the Pork Cuts ad and a page of editorial about the support of HRH Prince Charles supporting the campaign.  Also the article highlights the campaign of head chef Alan Paton, from Southwold who raised £250 in 5 weeks by adding £1 to the menu price of each pork dish on the menu.  He presented his cheque to his local butcher for forwarding on to the PAWit campaign.

 

Cost Sector Catering magazine - aimed at cost sector industries such as schools, the NHS & MOD etc – ran an editorial feature about the campaign in their June issue.  It highlighted the support that The UK Foodhall - one of the biggest school meal suppliers in the UK – was giving to the campaign by insisting on using QSM pork only.

 

Lovepork Latest

OK magazine will be featuring a recipe lead advertorial in 11 June issue.

 

Cheap Sausages

There was much press coverage of the 16p Asda brand of sausages. It varied from offering value food to those with less income in the light of the ‘credit crunch’ to the outrage at cheapening the value of food. Wogan knocked it a few times during his show and GMTV compared two breakfasts, one normal brand versus Asda’s, which didn’t compare very favourably. Tesco has since price-matched. The PR message was aimed at highlighting the value that Asda offer its customers not necessarily about sausages, but what it can mean is that often other supermarkets will follow suit. BPEX Consumer Marketing Manager Chris Lamb was none too impressed saying this was bad for the industry because it would upset carcase balance and depress manufacturing meat prices which was the last thing the industry needed.

 

Waitrose Opens Smaller Stores

As a ready supporter of the UK agriculture, selling British and local produce Waitrose is now opening smaller supermarkets designed to support trade from local businesses.  The first of these are to open in Buckingham and Brackley this week. There is a feeling that these could be a serious threat to other local deli’s and farm shops in the area. 

 

Knowledge Transfer

 

Tip of the week – Temperature Awareness

Remember increasing temperatures may result in reduced appetites and slower growth rates. Check and record daily min/max temperatures of buildings.

 

Pig Herd Health Plans

Unlike current systems, this Internet-based pig herd health plan (PHHP) reduces administration and office time by overcoming multiple data collection and duplication as after initial population, only those fields that require change need to be completed with no more rewriting of basic information. In addition, data created during routine management and veterinary visits can, if desired, be captured using digital pens and paper and transferred to a unique, password protected, single location using Bluetooth technology. The PHHP provides a single location for all your unit’s health information, including a record of recommended dosage details and a record of vaccinations. Records are automatically archived and dated, creating a permanent health history and by accumulating information and showing trends over time, aids decision-making.

 

Limited funding until the end of the month is available to producers interested in using these PHHPs, for more information contact the KT Team. The initial phase of this work was supported by the NPA and the pilot was funded by Defra within project R25 ‘Risk factors for pig disease’.

 

Diffuse Water Pollution Consultation

Defra has decided that its future policy for tackling diffuse water pollution from agriculture should be based on a combination of three measures; advice, schemes e.g. ELS and regulation in the form of Water Protection Zones (WPZs). The intension is that WPZs will be a last resort in catchments where a voluntary approach is failing to deliver the necessary improvements in water quality. It has been announced that a further 10 catchments will be included within the Catchment Sensitive Farming Scheme bringing the total to 50.  Grant aid to help farmers make improvements is available in the existing areas, the closing date for applications being 30 June 2008

 

Technical Annual Report

This is now available as a download from the BPEX website, in sections. For more information, click here.

 

National News:

 

BMPA on Animal Feed

The British Meat Processors Association (BMPA) has welcomed the fact that Prof Wall has put the ban on the feeding of non ruminant processed animal protein (PAP) on the current food regulation agenda.

 

BMPA President Mark Adams said: “It is vital that all controls and safeguards are based on real science and the number one priority is, and must also be food safety. We note that the EFSA opinion on this subject states that the risk would be negligible if some non ruminants PAP were reintroduced into feed for poultry and pigs. However in discussing how to take forward any change to the current rules it is vital that any relevant safeguard and additional controls are robustly applied by all involved to ensure that food safety and consumer confidence is maintained”.

 

Don’t Leave Data Gathering Dust

A wealth of data is available to pig producers to help improve production and herd health which will, in turn, help improve cost of production.

 

All this information is available in the Pig Yearbook 2008 which also tells producers how the BPEX Knowledge Transfer (KT) team can keep them right up-to-date with what’s available.

 

The Pig Yearbook 2008 gives practical advice on how to get the most from the KT team and how the team has been helping put pig producers on the Road to Recovery.

 

It is a one-stop shop with all the information that anyone involved in the pig industry needs, with a comprehensive round-up of industry performance. 

 

It is available to BPEX Ltd levy payers for £18, or for a standard rate of £22.  To order, email jayne.dines@ahdbms.org.uk, or phone 01908 844396.  For further details, see www.mlceconomics.org.uk/publications.htm.

 

Pfizer Pig Trainee of the Year

This award is open to all pig unit personnel in the United Kingdom who can demonstrate they are embracing training opportunities to further their career and improve performance on their pig unit. Neither age nor experience (or lack of it) are barriers to winning. The judges will be looking for people who are using training to forge a rewarding professional career in a professional industry. This year’s winner will receive prizes worth over £2,500, including an engraved trophy, a cash prize, a tailor-made training programme of his or her choice, and a day and night in London to attend a high-profile presentation ceremony in Whitehall. Newcomers have as good a chance of winning as more experienced employees. For more information click here

 

Export News

For the latest export report click here.

 

International News:

 

Canada Exports to Russia

Russia has agreed to allow Canadian pork exports to resume after shutting its borders on April 1, 2008 over export document fraud concerns, the Canadian government announced.

Canada addressed Russia's concerns by having the Canadian Food Inspection Agency increase the security features on certificates, Canadian Agriculture and Agri-Food Minister Gerry Ritz said in a news release. Russia is Canada's third largest market for pork. Canadian pork exports to Russia in 2007 were valued at $144.8 million

 

US Market Picks Up

Strong domestic and export demand continues to gobble up large supplies while processors manage to maintain their margins. Concern about producers slaughtering enough sows to rationalise supply have even diminished, as sow culling seems back on track after it slowed the first week in May.

 

Even aggressive hog futures pricing considered out of touch with reality several weeks ago might now be attainable if — and it's a big if — feed grain prices stay put say livestock analysts.

"If demand stays where it is, the futures just might be right," said Iowa State University Extension Economist Shane Ellis. The Chicago Mercantile Exchange has been pricing lean hog futures at around $76 per hundredweight for June delivery and up to around $83 by April, 2009.

 

Smithfield Foods Income Plummets

Smithfield Foods Inc.'s net income plummeted 93.5 percent in the company's fiscal fourth quarter, compared with results a year earlier, as higher raising costs and lower hog prices took their toll on the bottom line. Smithfield reported net income of just $2.4 million for the quarter, or 2 cents a share, on sales of $2.87 billion, up 20 percent over the year-earlier results mostly due to acquisitions. Not including discontinued operations, earnings were just 1 cent per share. On average, analysts had expected results of 7 cents per share.

 

Meat Consumption Doubles

According to a French study, between 1990 and 2007, world-wide meat consumption almost doubled (from 143 to 271 million tons). For beef, the increase is such that beef meat consumption is now reaching the level forecast for 2015 by the FAO. Such a progression is mainly due to developing countries and more specifically to China (140 % increase between 1990 and 2004)and India. In Europe, the situation has not really changed since 1990. However a slight decrease in beef consumption has been observed with a shift to poultry meat where consumption has risen from 22% in 1990 to 26% in 2007. 

 

Pigmeat represents half of European meat consumption. The study foresees a continuous increase of the world-wide meat consumption up to 5% per annum.

 

China Tax on Soyoil

China, the world’s biggest buyer of edible oils, is considering reducing the import tax on soyoil in a bid to boost supplies at a time of rising domestic demand and record international prices, according to industry analysts. “We don’t have any confirmation yet, but its likely the government may choose to further boost vegetable oil imports by reducing the import duty as domestic demand seems to outstrip supply,” Chen Lina, an analyst at Beijing Orient Agribusiness Consultant told Bloomberg News. There has been speculation that China would reduce its import tariff on vegetable oils for a number of months in order to secure supplies ahead of the Beijing Olympics later this year.

 

Currently a levy of 9 percent is imposed on imports of almost all edible oils except palm oil in solid form and the government reduced the soybean import tariff to just 1 percent, from 3 percent previously, until the end of September this year. China’s National Grain and Oils Information Centre said in a report on May 26 that soyoil imports into the country jumped 28.3 percent in the opening four months of 2008 and total imports for the oil year, ending September, could rise 16 percent to 2.8 million tonnes, up from 2.41 million tonnes last year.

 

International Prices
Click here for the latest international prices


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