Friday 27th January 2012

Dairy at PROAN

The fifth stop on the The United Soybean Board See for Yourself Program’s visit to PROAN, an enormous agricultural enterprise located in the northeastern part of the state of Jalisco, Mexico, was at the group’s dairy operation.

Genetics and selection, according to management at PROAN’s dairy farm, are key to success. Every effort is made to keep the 5,000 head dairy operation as sanitary as possible. The cows are artificially inseminated and calve at two years of age and from then on, one calf every year.

There are 2,307 cows for milking purposes. Cows are milked three times per day, twenty-four hours per day, with production of 75,000 liters of milk per day. The milking process is automated, with a fifty-rour stall rotary parlor for milking the Holstein cows. All the milkers wear gloves. The cows are dipped before and after milking and wiped with cloth towels.

The milk is pasteurized and shipped to both Dannon and Alpura processing plants.

Cows at PROAN are milked for 7 years.

Cows are fed corn sileage and alfalfa.

The size, efficiencies, biosecurity practices and composting practices at PROAN are impressive.

There simply weren’t enough hours in the day to see the entire PROAN operation. We saw a presentation on the swine operation but did not visit it. We were told that PROAN’s swine operation consists of 45,000 sows, with an average of 22 pigs per sow per year. One unit, according to our hosts, had a 26-pig average.

It is interesting the extra steps PROAN is taking to be sanitary and biosecure although in Mexico, many are not legally necessary. To say PROAN is an impressive operation would be an understatement. Many of the participants in the USB See for Yourself Program marveled at the attention to detail and sheer size and scope of the operation.

PROAN is distinguished for its efficient transportation system, which is known as “JUST-IN-TIME.” Close attention is paid to logistics and specialized equipment to ensure prompt delivery of products. PROAN’s central location makes marketing products in 26 states of Mexico with delivery time of only 24 hours doable.

Our final stop on the PROAN visit was at a beautiful hacienda where our hosts fed and entertained us well.

The main course?  Your choice of pigeon, chicken or lamb taco.  Most tried some of each.   Our hosts treated us to some traditional Mexican candies to end the meal – and day – on a high note!

The mariachi band played lovely music while we enjoyed our meal and conversation.

PROAN stop 4: Railroad terminal

The fourth stop on the USB See for Yourself Program visit to Proteina Animal (PROAN), one of the largest ag enterprises in Mexico, was the group’s railroad terminal. Our hosts said they receive 3 to 4 trains per week, bringing soybean meal, DDGs and other feedgrains.

The PROAN terminal is efficient, with the ability to unload 100 cars in 10 hours. At the time we were visiting, they were expecting a train with 80 cars of DDGs from the United States and 20 cars of Mexican-grown sorghum from Guadalajara.

On site are 6 bins with 60,000 metric ton holding capacity.

PROAN stop 4: box factory

Four years ago, PROAN decided to add a box factory. Participants in the United Soybean Board’s See for Yourself Program toured the plant that manufactures the cardboard boxes in which PROAN eggs are shipped.

The facility can produce 19,000 boxes per hour. Only 5% of the cardboard boxes made in this plant are sold to other companies.

While touring the box factory, we learned that PROAN ships 3 to 4 containers of eggs to Africa each week. Each container has 1,092 cases and each case contains 366 eggs. Between 1,199,106 and 1,598,688 eggs per week are shipped to tropical Africa and the The United Arab Emirates. In the next year, PROAN plans to beging dehydrating eggs to export to other countries.

1,080 workers are employed here with the average wage at $95.50 per week.

PROAN also has a facility that manufacturers all of the plastic containers used for packaging eggs.

PROAN feed production

The United Soybean Board See for Yourself program’s second tour spot at PROAN near San Juan de los Lagos in the state of Jalisco, Mexico, was one of the group’s two feed processing facilities.

The high-tech computerized plant we visited together with the second plant produces 220 metric tons of feed per hour. One of the plants is used exclusively for poultry feed. 78% of the feed produced by PROAN is used for the poultry operations while 20% is for swine and 1.5% for dairy cows.

Each type of animal feed is manufactured in separate production lines, thus preventing cross-contamination.

The manager of the feed processing facilities told us corn and sorghum is stored in silos that hold 8,500 metric tons each. He also told us they use an entire silo in just 4 days.

Soybean meal and DDGs are stored in the warehouse as are other feed additives such as synthetic amino acids lysine and methanine. All raw materials have specific storage locations where they remain until converted into animal feeds.

100% of the soybean meal PROAN uses comes from the United States. SOme is imported directly as SBM, while some comes into Mexico as whole soybeans and is crushed in a plant in Guadalajara, Monterrey or Matamoros.

PROAN requests 47% protein content soybean meal and are overall very happy with the quality of U.S. soybean meal they purchase.

PROAN buys more than 80% of its corn and sorghum from the United States. They purchase DDGs from POET in South Dakota. PROAN is also a distributor for DDGs in Mexico.

With such an expansive livestock operation, they are processing and hauling a lot of feed every day. We were told they have 90 trucks and can load a truck with feed in 3 to 5 minutes and load 100 to 110 trucks per day. We were told that PROAN also provides services of transportation and storage of raw materials to other companies in the area.

In the laboratory we met Mario Alba Gallegas, Chemical Engineer who oversees testing of the raw materials/feed ingredients. He told us they take 20 samples from every train (100- 120 car train) and they keep those samples for 3 months.

The PROAN laboratory samples every load of sorghum.

It was explained to participants in the USB See for Yourself program that PROAN designs and formulates feed rations which are programmed into the computer in the feed mill a week in advance for each of their farms. However those formulations are monitored and can be easily altered if the need arises.

The plant runs 16 hours per day – 2 eight-hour shifts – with 12 workers inside the plant. The plant operates 6 days per week. In total,Corporation Manager and Chief Veterinarian Alfredo Biecerra told me there are 35 to 40 workers at the plant if you include the “outside” workers such as gardeners.

This facility is modern, very clean, and appears to have a worker-friendly environment.

Federation directors seek ‘more independence’

Directors of the Federation of State Beef Councils have sent a message to their leadership—they want to continue their close relationship with NCBA, but also want the Federation to be “more independent.”

In a “straw poll” vote on Friday, the Federation directors overwhelmingly passed (59-3) a resolution that reads as follows:

“…the Federation should operate in a more independent structure while maintaining the synergies and efficiencies of the current relationship with the National Cattlemen’s Beef Association—and strongly opposes the recent actions of the Cattlemen’s Beef Board Executive Committee, including the separation recommendation.”

The directors then passed a separate “straw poll” resolution calling on the chairman and vice-chairman of the Federation to form a committee to develop recommendations on how to build “a more independent structure” for the Federation.  Both suggestions will be considered by Federation directors at their business meeting on Saturday.

In a Saturday morning interview, we asked Scott George, chair of the Federation of State Beef Councils, for his thoughts on the what has transpired at the conference so far.

AUDIO: Scott George (6 min MP3)

GIPSA proposal concerns seedstock producer

North Platte, Nebraska seedstock producer Bill Rishel has put pencil to paper on the proposed GIPSA rule on marketing contracts—and he doesn’t like what he sees.  Rishel figures, if enacted, the rule would have a very negative financial impact on both him and his customers.

AUDIO: Bill Rishel (5 min MP3)

CBB members reject ‘separation’ recommendation

At the Cattle Industry Summer Conference in Denver, members of the Cattlemen’s Beef Board have voted 62-30 to disapprove of the recommendation from the Cattlemen’s Beef Board Executive Committee that the Federation of State Beef Councils be separated from the National Cattlemen’s Beef Association.

That decision followed earlier action by directors of the Federation of State Beef Councils, who overwhelmingly passed (59-3) a “straw poll” resolution that reads as follows:

“…the Federation should operate in a more independent structure while maintaining the synergies and efficiencies of the current relationship with the National Cattlemen’s Beef Association—and strongly opposes the recent actions of the Cattlemen’s Beef Board Executive Committee, including the separation recommendation.”

The directors then passed a separate resolution calling on the chairman and vice-chairman of the Federation to form a committee to develop recommendations on how to build “a more independent structure” for the Federation. Both resolutions will be officially considered by Federation directors at their Saturday business meeting.

In a Saturday morning interview, we asked Scott George, chair of the Federation of State Beef Councils, for his thoughts on what has transpired at the conference events so far.

AUDIO: Scott George (6 min MP3)

Link to official CBB meeting blog

Beef exports are a bright spot

Somewhat lost in the all of the discussions about the beef checkoff is the fact that cattlemen are having one their best summers in some time.  Prices are at profitable levels and ample rainfall across much of the U.S. has been great for pastures.  Another bright spot has been beef exports.  We discussed that topic with the new sr. vice president of marketing and communications for the U.S. Meat Export Federation, Dan Halstrom.

AUDIO: Dan Halstrom (4 min MP3)

NCBA watching Congress, FDA on antibiotics

It doesn’t appear that legislation in Congress to limit antibiotics use is going anywhere in 2010. But NCBA chief veterinarian Dr. Elizabeth Parker says proponents of the measure aren’t going away.  And Parker says she is just as concerned with recent moves by the FDA to get more involved in the antibiotics issue.  She tells Brownfield the impact of tougher restrictions on the cattle industry would be huge.

AUDIO: Dr. Elizabeth Parker (4 min MP3)

NCBA CEO delivers emotional speech

Addressing the forum of the Federation of State Beef Councils on Friday, the CEO of the National Cattlemen’s Beef Association, Forrest Roberts, talked about the current acrimony in the cattle industry and urged attendees to pull together.  He also assured the cattlemen that all concerns arising from the compliance review of NCBA’s checkoff spending will be addressed and, if necessary, corrected.  As he finished, Roberts received a standing ovation from those assembled.

AUDIO: Forrest Roberts speech (10 min MP3)