Dave Dickson Memorial Golf Classic
Great Plains Processing will be fielding a team again at the 2017 event
.The date for this upcoming year is May 17 at University Ridge Golf Course in Madison, Wisconsin. The scramble format provides a fun environment for all skill levels so please join us and hopefully we can get together this upcoming May.
The Dave Dickson Memorial Golf Classic supports the University of Wisconsin – Madison dairy science department’s undergraduate student scholarship program. All proceeds go directly to the program to develop students growth and learning in the industry.
Number of certified organic farms up 13%
The U.S. Department of Agriculture announced new data indicating that the organic industry continues to expand domestically and globally, with 24,650 certified organic operations in the U.S. and 37,032 around the world.
The 2016 count of U.S. certified organic farms and businesses reflects a 13% increase between the end of 2015 and 2016, continuing the trend of double-digit growth in the organic sector. The number of certified operations has increased since the count began in 2002, and this is the highest growth rate since 2008.
Organic certification is an “opt-in” voluntary standard that is managed through a public/private partnership. USDA accredits and oversees approximately 80 businesses and state governments that directly certify organic farms and businesses. USDA provides a number of educational resources to help organic producers access this growing market. These include interactive videos that help candidate farmers understand how to get and maintain organic certification and fact sheets that explain the value proposition of organic certification and outline the standards in a clear manner.
The complete list of certified organic farms and business is available through the Organic Integrity Database of certified operations maintained by USDA-accredited certifying agents. Launched in 2015, the database discourages fraud by providing more accurate and timely information about operations certified to use the USDA organic seal. The database also supports supply chain connections between buyers and sellers of organic goods.
Laura Batcha, chief executive officer and executive director of the Organic Trade Assn., said the group “is thrilled and not surprised to see the strong growth in the number of certified organic operations in the United States and worldwide.” Organic certifiers reported record numbers of new applicants in 2016, the association added.
“That said, there are still significant gaps in the domestic production of feed grains. Achieving success in closing this gap will require dedicated attention and a long-term strategy,” Batcha said in an email statement to Feedstuffs.
Perdue’s confirmation set for April 24
Several Senate Democrats were reported to have placed a procedural hold on advancing the nomination due to some concerns, including Perdue’s stance on trade with Cuba.
The scheduled vote comes after the Senate Agriculture Committee held a confirmation hearing on his nomination on March 23 and held a vote out of committee on March 30.
A coalition of 16 agricultural organizations, led by the National Association of Wheat Growers (NAWG), sent a letter to Senate leaders urging them to bring up Perdue’s vote as quickly as possible. Despite the push from the agriculture industry to confirm Perdue the first week of April, the Senate will vote after its two-week recess on April 24.
“NAWG is pleased that leader McConnell has taken this important step and has set a firm date for a confirmation vote. The (U.S.) Department of Agriculture has been without a confirmed secretary for over two months,” NAWG said in its April 6 newsletter.
During the week, the Senate has been debating the nomination of Judge Neil Gorsuch to fill the vacant seat on the U.S. Supreme Court, which has consumed most of the floor time for the week. Additionally, the Senate Finance Committee was slated to hold a vote Thursday on the nomination of Robert Lighthizer to serve as the U.S. Trade Representative, but the committee vote was unable to move forward.
In their letter, the agricultural groups noted that USDA “has been without political leadership for over two months, longer than nearly every other Cabinet-level agency. The list of key domestic and international issues that need to be addressed by the secretary and his team is long and growing, particularly given the troubling economic conditions in rural America. In addition, it is important to U.S. farmers and ranchers that USDA be at the table as the Administration considers recommendations on (fiscal year) 2017 appropriations and on the (fiscal year) 2018 budget,” the letter said.
The Senate and House both will have two weeks of recess before they are back in session on April 24. They return with an April 28 deadline looming to pass a funding bill for the remainder of fiscal 2017 before the expiration of the current continuing resolution that’s in place.
U.S. meat exports continue strong pace in February
Mexico pacesetter for February pork exports.
February results for U.S. pork and beef exports were well above year-ago levels, with pork exports posting the strongest February volume on record, according to statistics released by the U.S. Department of Agriculture and compiled by the U.S. Meat Export Federation (USMEF).
Pork exports reached 197,025 metric tons in February, up 15%year over year, with value up 17% to $486.7 million. For the first two months of 2017, exports totaled 399,692 mt, up 18%, with value increasing 22% to $995.3 million.
February exports accounted for 27.6% of total pork production and 22.9% for muscle cuts only, up from 23.8% and 20%, respectively, last year. January-February ratios were also significantly higher at 26.8% and 22.2%, compared to 23.0% and 19.3% in the first two months of 2016. Export value per hog slaughtered averaged $51.94 in February, up 18% year over year, while the January-February average was up 20% to $51.05.
Beef exports totaled 90,417 mt in February, up 9% year over year, with value up 16% to $508.5 million. Through February, beef exports were up 13% in volume to 186,905 mt and up 17% in value to $1.02 billion.
February exports accounted for 12.6% of total beef production and 10.1% for muscle cuts only, which was steady with last year. January-February ratios were also fairly steady at 12.4% and 9.8%, respectively. Export value per head of fed slaughter averaged $276.96 in February, up 13% from a year ago, while the January-February average was up 10% to $266.34 per head.
“With trade deficits being a hot topic of conversation, especially with countries such as Mexico, China and Japan, it’s important to highlight the sectors in which U.S. products are competitive throughout the world and exports are thriving,” USMEF president and chief executive officer Philip Seng said. “The red meat sector is certainly in that category, as exports have helped fuel growth in the U.S. industry, and in turn, larger U.S. production has opened further export opportunities and generated positive returns for the entire supply chain.”
Pork exports strong to Western Hemisphere, North Asian
USMEF reported that Mexico was once again the pacesetter for February pork exports, with volume up 22% to 64,990 mt and value increasing 28% to $116 million. This pushed the two-month totals for Mexico 27% higher to 137,396 mt, with the value up 39% to $244.7 million.
“Mexico’s strong demand is reflected not only in increased buying from the U.S. but also in relatively high domestic hog prices, as per capita consumption of pork continues to grow,” USMEF said. Strong demand from Mexico helped move prices for U.S. heavy bone-in hams higher in 2017 — up an average of 4% year over year.
For Japan, the leading value market for U.S. pork, February exports increased 14% to 32,178 mt, with valued rising 18% to $130.4 million. For January-February, exports to Japan were up 10% in volume to 63,755 mt and rose 14% in value to $256.1 million. Chilled pork exports to Japan increased 7% through February to 34,682 mt.
According to USMEF, other highlights for U.S. pork included:
- China/Hong Kong continued to take large volumes of U.S. pork variety meats in February, offsetting the slowdown in pork muscle cuts and putting the combined February total at 42,881 mt, up 5% year over year, with value at $83.2 million, up 12%. Two-month totals were up 10% in volume to 80,893 mt and rose 15% in value to $159.3 million. China’s hog prices dropped below year-ago levels in February and have continued to drift lower, but China/Hong Kong’s total January-February imports were still up 35% from last year’s record pace at 532,600 mt.
- Pork exports to South Korea, which were slow in the first half of 2016 before gaining momentum later in the year, totaled 14,649 mt in February, up 26%, with value at $38.2 million, up 29%. Through February, volume increased 29% to 30,722 mt, while value improved 39% to $83.3 million. Korea’s hog prices have increased an average of 8% this year, even as production has been growing, which is indicative of strong demand, USMEF said.
- Led by a year-over-year doubling of exports to Colombia and Chile and solid growth in Honduras, exports to Central and South America were up 45% in volume to 27,022 mt through February, while value increased 42% to $61.8 million.
- January-February exports to the Dominican Republic were also well above last year’s pace, rising 28% to 5,279 mt, with value up 34% to $11.8 million.
Chilled beef to Japan, Korea and Taiwan drives growth
USMEF reported that Japan continued to solidify its position as the leading volume and value market for U.S. beef, with February exports to Japan climbing 48% from a year ago in volume to 23,789 mt and 55% in value to $134.3 million. Through February, exports to Japan were up 41% in volume to 46,276 mt and rose 44% in value to $259.6 million. This included a 60% increase in chilled beef volume to 19,404 mt.
Japanese import data showed that U.S. beef overtook Australian beef in the first two months of the year, with U.S. market share climbing to 45.6% while Australia’s dropped to 44%.
Strong momentum continued for U.S. beef in Korea, where February exports increased 11% to 13,093 mt and value rose 26% to $86 million. This pushed the two-month totals up 23% in volume to 28,287 mt and up 31% in value to $177.6 million. Chilled exports through February were up 95% to 5,384 mt.
In Taiwan, February exports jumped 33% from a year ago to 2,886 mt, while value increased 26% to $25.3 million. Through February, exports were up 28% in volume to 6,477 mt and up 25% in value to $55.1 million. U.S. beef holds 70% of the chilled beef market in Taiwan, the most of any Asian market. Through February, chilled exports to Taiwan increased 12% to 2,479 mt.
USMEF noted that other highlights for U.S. beef included:
- Exports within North America are off to a solid start in 2017, with January-February exports to Mexico increasing 14% from a year ago in volume to 36,235 mt and rising 3% in value to $147.4 million. Exports to Canada are showing signs of a rebound, with volume up 11% to 19,446 mt and value up 18% to $123.5 million.
- Beef exports to two key South American markets increased significantly in value through February, with exports to Chile up 22% year over year to $8.9 million and exports to Peru up 68% to $4.3 million. The increase in Chile was achieved despite a 16% decline in volume to 1,417 mt, while volume to Peru was up 16% to 1,130 mt.
- A rebound in the Philippines and continued growth in Vietnam pushed January-February beef exports to the Association of Southeast Asian Nations region up 33% in volume to 4,774 mt and up 19% in value to $27.3 million. Exports to Indonesia, which set a value record of $39.4 million last year, are off to a slow start in 2017, with value through February down 48% to $3.5 million.
Strong growth in beef exports to most Asian markets helped offset a slowdown to Hong Kong, where January-February volume was down 21% to 16,131 mt and value was down 12% to $104.7 million.
Losses continued in the April fed cattle futures market, but the markets appeared to find support as the week progressed. Nearby contracts closed lower Monday at $119.425/cwt. but finished higher Wednesday and again into Thursday’s close of $118.80/cwt.
April feeder cattle futures were mostly lower this week. Nearby contracts closed higher Thursday at $131.95/cwt. after closing lower Tuesday at $132.025/cwt. and Wednesday at $130.525/cwt.
For the beef cutouts this week, Choice and Select closed lower at $207.90/cwt. and $200.28/cwt., respectively.
April lean hog futures were mostly lower but climbed as the week progressed. Nearby contracts closed lower Tuesday at $63.625/cwt. but finished higher Thursday at $63.925/cwt.
Pork cutout values were mixed on Thursday. The wholesale pork cutout was lower at $74.18/cwt. Loins and hams closed higher at $73.86/cwt. and $55.95/cwt., respectively, while bellies closed lower at $122.07/cwt.
Hogs delivered to the western Corn Belt were lower this week, closing at $60.72/cwt. on Thursday.
The U.S. Department of Agriculture reported the Eastern Region whole broiler/fryer weighted average price at 95.83 cents/lb. on March 31.
According to USDA, egg prices were steady, with a steady to weak undertone. Offerings were mostly moderate, although moderate to heavy in California. Demand has been in a full range of light to good. Supplies have been moderate to heavy in the Midwest and California and moderate elsewhere.
Large eggs delivered to the Northeast were unchanged at 85-89 cents/doz. Prices in the Southeast and Midwest were also unchanged at 85-88 cents/doz. and 78-81 cents/doz., respectively. Large eggs delivered to California were unchanged at $1.36/doz.
For turkeys, USDA said the market was steady to barely steady. Offerings and demand have both been light to moderate. Prices for hens were lower on the upper range at 97 cents to $1.03/lb., while prices for toms were unchanged at 97 cents to $1.03/lb.
We hope to see you there in a few short weeks! If you plan on attending please give us a call or send an email and we can schedule a time to meet.
-The team at GPP
For more information visit IPPExpo.com
JAN. 31 – FEB. 2, 2017
Georgia World Congress Center
285 Andrew Young International Blvd NW
Atlanta, Georgia USA
Various factors will determine where 2017 prices settle.
The most recent U.S. Department of Agriculture (USDA) “Hogs and Pigs” report indicated pork supplies in 2017 would likely be larger than pre-report expectations.
Purdue University livestock economist Chris Hurt said slaughter numbers have run high all fall and USDA revised upward the size of the spring 2016 pig crop by 2.5% to account for the heavier runs. In a similar fashion, the December survey also found more market hogs. The number of pigs that weighed less than 180 pounds was 4% percent larger than the inventory of a year ago and 2% percent larger than pre-report trade estimates. These will be the market hogs arriving at processing plants from January to May 2017, Hurt noted.
A similar story unfolded for the breeding herd, which was 1.5% higher and 1% more than pre-report estimates. Farrowing intentions were also above expectations. Winter farrowing intentions were 1.4% higher and spring farrowing intentions were 1% higher. Hurt said the expansion of the breeding herd has tended to follow the record corn yields, with the Illinois, Missouri, and North Dakota breeding herds up 10% and the South Dakota up 9%.
According to Hurt, the number of pigs per litter continued to march higher in 2016 with new records in each quarter. The last quarter of 2016 attained the highest level ever at 10.63 pigs per litter. For 2016, the new annual record was 10.5 pigs. Hurt said the average rate of annual increase over the past ten years has been 1.5%.
Given these numbers, Hurt said the industry will increase pork output by about 3% in 2017 to 25.7 billion pounds, a 12% increase since 2014 when PED reduced production and contributed to record high hog prices. He forecasted pork production will rise by 2% the first-half of 2017 and by about 4% in the last-half.
“Hog prices were extremely depressed in the final quarter of 2016 when live prices averaged about $37/cwt. That was the lowest quarterly price since 2003,” said Hurt, adding that the lowest prices were in mid-November, touching the extremely low $30s. “Recovery came quickly with prices rising to the lower $40s by the end of the year. For all of 2016 live hog prices averaged about $46.”
As for prices in 2017, Hurt said 3% higher production might mean annual prices will be lower. However, he said there are additional items to consider.
First, retail prices did drop in 2016, but there is opportunity for those prices to come down more. “Lower retail prices will stimulate the quantity of pork that consumers purchase.”
Second, Hurt said USDA expects exports to expand by 5%, which will move more of the increased production to foreign customers.
Third, with the addition of new processing capacity, the farm-to-wholesale margins are expected to drop, Hurt said. “Lower margins at the processing stage may contribute to stronger bids to hog producers.”
Live hog prices are expected to be about $48/cwt. in 2017, a $2 increase from 2016. Prices by quarter are expected to average $45/cwt. in the first quarter, the very-low $50s in the second and the third quarters, and then $43 in the final quarter of 2017. A range of $2 higher or lower would be reasonable for price projections, Hurt added.
Costs of production are expected to be around $50 on a live weight basis in both 2016 and 2017 based on current feed price expectations. Hurt pointed out that this means the industry operated at an estimated loss of about $12 per head in 2016 and is expected to have losses that average about $6 per head in 2017.
“Losses in the first quarter of 2017 are expected to be about $13 dollars per head. Modest profits may return in the second and third quarters, with a return to the largest losses of the year in the final quarter.”
Because the 2017 outlook is for weak returns, Hurt said it is important to keep further expansion to a minimum. “This will be difficult with new processing capacity coming in 2017 as those plants will want to stimulate some added production to fill their lines.”
Pork exports to China will particularly bear watching in 2017, Hurt said. Last year, exports to China nearly doubled growing to near 16% of total exports.
Trade positions of the Trump administration will also be of deep interest to the pork industry in 2017. Mexico became the number one destination for U.S. pork in 2015 and 2016, which Hurt said means trade relations with Mexico will need to be watched carefully for potential impacts on the hog market.
“Remember that a breeding herd that stays the same size will still enable a 1-2% expansion of pork production due to more pigs per litter and higher market weights. A 2% production growth rate is probably close to what is sustainable with modest U.S. population growth and some growth in exports.”
The December fed cattle future market was mostly lower this week after a long holiday weekend. Nearby contracts closed lower Tuesday at $114.875/cwt., posted gains Wednesday, but closed lower again Thursday at $115.075/cwt.
January feeder cattle futures were lower this week. Nearby contracts closed lower Tuesday and Thursday at $130.20/cwt. and $128.25/cwt.
For the beef cutouts this week, Choice and Select were lower at $201.52/cwt. and $193.39/cwt., respectively.
February lean hog futures started the week lower but climbed through the week. Nearby contracts closed lower Tuesday at $63.50/cwt. but closed higher Thursday at $64.875/cwt.
Pork cutout values were higher this week. The wholesale pork cutout was higher at $79.57/cwt. Loins were higher at $80.75/cwt. Hams and bellies were also higher at $62.02/cwt. and $118.16/cwt.
Hogs delivered to the western Corn Belt were higher this week, closing at $54.08/cwt. on Thursday.
The U.S. Department of Agriculture reported the Eastern Region whole broiler/fryer weighted average price at 85.54 cents/lb. on Dec. 30.
According to USDA, egg prices have been steady, with a lower to sharply lower undertone. Offerings and supplies have been moderate to heavy. Demand has been mostly light to moderate.
Large eggs delivered to the Northeast were unchanged at $1.10-1.14/doz. Prices in the Southeast and Midwest were higher at $1.21-1.24/doz. and $1.10-1.13/doz., respectively. Large eggs delivered to California were unchanged at $1.66/doz.
For turkeys, USDA said the market was steady to weak, with light to moderate offerings. Demand has been light. Prices were lower, at $1.00-1.02/lb. for both hens and toms.
Source URL: http://www.feedstuffs.com/markets/livestock-markets-more-pork-higher-hog-prices-ahead
Procedure developed for organizations interested in having their standards and programs verified.
The U.S. Department of Agriculture’s Agricultural Marketing Service (AMS) has developed a program under which it will offer assessments of independent animal welfare standards and programs to determine if they conform to the International Organization for Standardization (ISO) Technical Specification (TS) 34700 – Animal Welfare Management/General Requirements and Guidance for Organizations in the Food Supply Chain.
The ISO TS applies to terrestrial animals bred or kept for the production of food or feed and was developed to ensure that food-producing animals are raised, transported and processed humanely. The TS also establishes a strong framework for industry animal welfare standards and programs to verify that they are rooted in science and can be widely accepted.
AMS has developed a procedure for organizations interested in having their standards and programs verified against ISO TS 34700. AMS invites organizations interested in this service to review the procedure, “USDA ISO TS 34700 Animal Welfare Assessment.” AMS will work with interested organizations to develop additional program materials, including objective, transparent audit checklists. Programs will be verified through routine independent and on-site audits by AMS to ensure that they meet the requirements of ISO TS 34700.
Sustainability: Beyond the Buzzword
For more information on AFIA’s sustainability efforts, please contact the AFIA manager of communications, Miranda McDaniel at (703) 558-3579.
“Sustainability in the Feed Industry.” AFIA.org. American Feed Industry Association, October 30th, 2014. Accessed December 5th, 2016.
The AFIA (American Feed Industry Association) has compiled some information about what we (as AFIA members) do and how it relates to feed, food, and your family. Take a look at the link below.