The government has agreed to convene an emergency summit of the entire pig supply chain as the sector’s crisis deepens.

Defra farming minister Victoria Prentis today agreed to the joint National Pig Association (NPA) and NFU request for a roundtable event amid a worsening crisis.

It comes as the pig backlog is now estimated to be well in excess of 170,000 due to a lack of butchers in pork processing plants, as a result of the pandemic and Brexit.

Tens of thousands of healthy pigs have been culled on farms across the country by increasingly desperate producers who have run out of space.

NPA chairman Rob Mutimer and NFU president Minette Batters wrote to Defra last week, calling for it to “arrange a summit of the entire pig supply chain so that we can agree a plan to get these pigs off farms and onto people’s plates”.

Responding, Mrs Prentis agreed that “convening a roundtable bringing together producers, processors, and retailers to discuss the ongoing challenges faced by the sector would be helpful”. The date will be arranged ‘shortly’.

She acknowledged that recruitment of butchers via the temporary visa route, which closed to applications on 31 December, had ‘taken longer than initially expected’.

But she said that processors could still recruit butchers via the UK’s new points-based immigration system, which was introduced last month.

The Defra minister also acknowledged that uptake of both the Private Storage Aid (PSA)and Slaughter Incentive Payment (SIP) schemes had been lower than anticipated.

by Farming UK

New Zealand’s red meat sector exports reached $10 billion in 2021 despite the disruption caused by COVID-19, according to an analysis by the Meat Industry Association (MIA).

The exports represented a nine per cent increase on 2020. The value of red meat and co-products exported in December 2021 was also up 22 per cent year on year, at just over $1 billion.

Sirma Karapeeva, chief executive of MIA, said the sector had worked tirelessly in the face of ongoing global logistical challenges to continue to achieve the best possible results for farmers, the 25,000 people working in the industry and for the New Zealand economy.

“Despite all the disruptions and labour shortages, we were able to make the most of the global demand for red meat and generate record export revenue.

“The sector is continuing to perform for New Zealand in the most difficult conditions. However, supply chain challenges will significantly disrupt exports for some time to come and we do not yet know what impact that will have on the Easter chilled trade.

“This illustrates very clearly how critical it is for the industry to have access to sufficient labour including overseas migrants to capture the greatest market value and support the jobs of thousands of hard-working Kiwis.”

Overall, both sheepmeat and beef exports increased by five per cent and nine per cent year-on-year respectively, with both worth more than $4 billion for the year. Co-products exports also increased by 19 per cent, to almost $2 billion.

Red meat exporters have responded swiftly to adapt to rapidly-changing logistics environments – for instance, by converting chilled product to frozen, when needed, to address risks in the disrupted supply chain, says Ms Karapeeva.

While chilled sheepmeat exports to the UK dropped by 42 per cent in December, to the lowest volume in 25 years, frozen sheepmeat exports to the UK increased by 95 per cent.

Ms Karapeeva said that while there has been some softening in Chinese demand for sheepmeat from the previous high levels, prices in China have remained strong.

Overall sheepmeat export volumes to China dropped by 15 per cent in the fourth quarter. However, the value of sheepmeat exports to China increased by three per cent in the same period.

China remained the largest overall importer for the quarter (41 per cent), followed by the US (20 per cent), the UK (4 per cent) and Japan (4 per cent).

scoop.co.nz

Defra Secretary George Eustice has told a committee of MPs that the Government is ‘limited’ in what it can do to support pig producers during their time of crisis.

Instead, Mr Eustice put the onus very much on pork processors to do more to increase their throughput and reduce the backlog on farms, at one point appearing to suggest this should include paying farmers less to speed up the process of getting pigs through plants.

However, while he offered little prospect of any short-term Government help for the industry, Mr Eustice reiterated that Defra is looking to introduce new legislation in the future to ensure a more functional and fairer pig supply chain.

Mr Eustice was questioned on the pig crisis by Environment, Food and Rural Affairs (EFRA) Committee chairman Neil Parish and other MPs at the end of a long and wide-ranging session on Tuesday covering his and Defra’s work.

‘Sheer waste of food’

Mr Parish quoted a Yorkshire pig farmer, who had told him pigs are being culled on her farm ‘as we speak’, as the impact of pigs being held on farm for longer due to processing delays takes its toll. “There are animal welfare issues of this and it’s a sheer waste of food,” Mr Parish said, before asking the Defra Secretary what more could be done to get pigs ‘properly processed and the animal welfare issues solved’.

Mr Eustice acknowledged that the situation was ‘quite difficult’, but went on to explain how the industry’s ‘asks’ that the Government had delivered in its October support package had not been utilised by processors.

The ‘bespoke’ temporary visa scheme for pigs that was delivered despite being a departure from Government policy ‘hasn’t been used as much as we’d hoped’, he said. “There was a provision for about 800, but I think it will be in the low hundreds for the numbers that they actually bring in under that scheme.

“Some of the processors have used the skilled route to bring some butchers in from some areas, but they’ve not they’ve not been recruiting in the way we thought they might, given the labour shortage was one of the key issues they kept highlighting.

Alistair Driver / Pig World

Meat specialist Cranswick is talking to the government about special waivers to get more butchers and slaughterhouse workers into Britain to deal with the problem.

CEO Adam Couch estimated that between 300 and 400 workers are needed to ease pressure in the industry. The “backlog” of pigs is put in the thousands, though Couch said it was tough to put precise numbers on it.

The meat industry has had a tough few years due to the loss of skilled labourers post-Brexit and the temporary shutdown of many processing plants due to Covid outbreaks.

Evening Standard

Defra Secretary George Eustice has claimed lamb exports to the EU will return to pre-Brexit levels in future.

British sheepmeat exports to the bloc have fallen by 25 per cent since the UK left the EU, with industry leaders blaming the sharp drop on non-tariff barriers such as paperwork and checks.

Last year, the British Meat Processors Association (BMPA) warned UK meat exporters were having to spend an extra £1,000 to send a lorry through a port.

Smaller exporters, in particular, have struggled to handle the 29 different processes required to send meat to the continent.

Giving evidence to the Environment, Food and Rural Affairs Select Committee this week (February 1), Mr Eustice said he expected the trade to bounce back over the coming years.

“Things like salmon have actually seen an increase in their exports since we have left the European Union, driven by high demand for premium product,” he told the MPs.

“I think we will see a similar situation on our other major agricultural exports like lamb. There will be some impact because of the additional export processes which are required and the costs associated with that, but the big exports we rely on will resume just as Scottish salmon already has.”

But National Sheep Association (NSA) chief executive Phil Stocker questioned whether this would be the case.

“[Trade] will never return to the way it used to be, and seeing the effect border control posts and export health certificate controls are having on exporters, I do not see our volumes to the EU returning to where they were,” he said.

By Abi Kay  / Farmers Guardian

Reduced throughputs at UK abattoirs will have a knock-on impact on future trading patterns, industry chiefs have warned. 

It comes as tight supplies of cattle and sheep have supported the continuing trend of above-average market prices into the first month of 2022.

But last year saw cattle throughputs reach their lowest level since 2015 at 2.7 million head, a 5.7 per cent drop on 2020 and 4.3 per cent below the five year average, according to Defra figures.

Glesni Phillips, data analyst at Hybu Cig Cymru – Meat Promotion Wales (HCC), said the decrease in cattle throughput at UK abattoirs last year was not unexpected.

“Increased numbers were processed during 2020 and this led to fewer cattle on the ground,” she said.

“This was especially true for adult cattle which saw throughput fall by almost 6 per cent on the year.”

Hannah Binns / Farmers Guardian

Ireland exported a record high of 215 million euros (US$239 million) worth of pork to China in 2021, a year-on-year rise of 8 percent. That represented 40 percent of its pork exports.

Conor O’Sullivan, China manager of Bord Bia, the Irish Food Board, said 2021 was of great significance to the Irish meat industry at a recent Irish meat seminar in Shanghai. He added that thanks to the positive bilateral trade relationship between China and Ireland, Irish meat is recognized by more Chinese consumers, and the demand for safe, high-quality food from the Chinese market is increasing every year.

A new trade deal between China and Ireland was struck last September, and Irish lamb is expected to enter the Chinese market this year.

According to O’Sullivan, the value of Ireland’s food, drink and horticulture exports increased by 4 percent to a record of 13.5 billion euros last year in spite of COVID-19 and Brexit’s effect on trading.

About 34 percent of Ireland’s food and drink exports went to international markets outside the EU and the UK, 33 percent went to the EU and 32 percent to the UK. Its exports to Asia exceeded 500 million euros for the first time.

With strong demand and higher prices in the UK and EU markets, Ireland’s beef exports increased by 9 percent in 2021, totaling 2.1 billion euros. Meanwhile, Ireland’s poultry exports decreased by 15 percent.

By Li Anlan / Shine.cn

China, Japan, Taiwan, and Kuwait have all announced bans on pig meat imported from Italy after several cases of African Swine Fever (ASF) were reported in wild boar in the Piemonte region in Northern Italy.

The countries have reportedly blocked purchases of pork from Italy, whilst Switzerland has also introduced trade restrictions with Italy.

The news was announced on Wednesday by Confagricoltura, the confederation of Italian agriculture. Confagricoltura president Massimiliano Giansanti called for the “quick and effective” implementation of “surveillance and biosecurity measures for the protection of farms” as part of efforts to “limit the damage as much as possible.”

Italy has also announced a ban on hunting and several other outdoor activities in two northern regions affected by the outbreak.

by Iain Hoey / Pig World

CALGARY – A cattle industry group says it is hopeful a newly imposed import ban on Canadian beef by China and two other Asian countries will be temporary.

The Canadian Cattlemen’s Association confirmed Tuesday that China – which imports approximately $170 million of Canadian beef annually, making it the industry’s third-largest global market – has halted imports of beef from Canada following the discovery of an atypical case of BSE, or mad cow disease, on an Alberta farm last month.

South Korea, which is worth about $90 million per year to Canada’s beef industry, as well as the Philippines – which imports about $13 million in Canadian beef annually – have also suspended imports.

“I wouldn’t say it’s surprising, though we were hoping this wouldn’t happen,” said Dennis Laycraft, executive director of the Canadian Cattlemen’s Association. “We’re hopeful that these will be very short in duration, but it’s a foreign regulator that you’re dealing with, in different time zones and different languages.”

The detection of the atypical case, which was announced in December, is Canada’s first case of bovine spongiform encephalopathy in six years.

Atypical BSE develops spontaneously in about one in every one million cattle. It has been reported six times in the U.S., most recently in 2018, as well as a number of other countries.

Unlike the classic BSE strain, which has been linked to the fatal neurological disorder Creutzfeldt-Jakob disease, atypical BSE poses no health risk to humans and is not transmissible.

The Alberta government stated in December when it announced the discovery of the case that it was “not expected to have market impacts.”

by Amanda Stephenson, The Canadian Press

Just 108 companies now control a fourth of China’s swine production capacity, according to a list prepared for a recent swine industry forum. Unpredictable gyrations in China’s hog market continue with the influx of big pig farmers, contrary to the expectations of agricultural officials.

Pigs have historically been scattered across millions of backyard pens, sheds, and living rooms in Chinese villages. At the peak of backyard pig-farming, China’s 1997 agricultural census counted over 130 million rural households raising pigs–usually one or two at a time–and those small family holdings accounted for 95 percent of the swine inventory.

In recent years a handful of companies have been on a hog-farm construction binge. Their expansion accelerated during a 2014-17 environmental regulatory push that shut down hundreds of thousands of small farms. Then the African swine fever epidemic wiped out millions more of small farms, biosecurity requirements and a new round of subsidies favoured big companies, and “pig concept” stocks became fashionable, attracting billions of dollars of capital investment.

A list of 108 companies with at least 10,000 sows was compiled for the 7th China swine industry summit based on company financial reports, industry news, and unpublished sources. The combined sow inventory of the 108 companies as of October-November 2021 was 11.79 million head. That’s about a fourth of the 44.79-million-head national sow inventory reported by the China National Bureau of Statistics’ as of the end of September.

Muyuan Foods Group was the clear number-one company, with 2.7 million sows. Three other companies–Wens Foodstuff, New Hope-Liuhe, and Zhengbang Technology–were listed with 1 million or more sows. These top four companies had a combined 5.9 million sows. Another 15 companies had 100,000-400,000 sows each (3.2 million sows combined), 22 companies had 50,000-90,000 sows (1.4 million combined), and 67 companies had 10,000-40,000 sows (1.2 million combined).

Muyuan pulled ahead of the competition during the African swine fever crisis. A ranking from 2016 showed Wens produced more than 5 times as many hogs as Muyuan and Zhengbang, and a 2019 ranking still showed Wens in the top spot. Muyuan now has 2.7 million sows, more than double Wens’ 1.2 million.

For years Chinese agricultural officials have blamed small farmers for constant booms and busts in the hog industry–“blindly” expanding when prices are high and then killing off sows when prices drop. However, the influx of gigantic farms has perpetuated industry gyrations.

The report estimated that the current population of sows could produce 235.8 million finished hogs if each produced 20 marketed hogs per year. Hogs raised from a sow bred now would be ready for market in September 2022.

The report estimates that 150 companies had 10,000 sows at the beginning of the year, but the number dropped to 108 due to culling of unprofitable sows. The report estimates that the top 108 farms are operating at just two-thirds of their capacity–a third of barns and stalls are empty due to the crash in prices this year.

by Dim Sums