Philippine pork producers protest meat smuggling

Pork producers in the Philippines are threatening a 5-day pork “holiday” unless something is done about what they describe as “rampant smuggling of meat.” The producers say the smuggled meat is usually sold at lower prices and putting local producers out of business. They held production off the market for two days last weekend in protest of the government’s lack of action. The lack of acceptable response from the government is behind the planned five-day holiday and poultry producer say they will join the pork effort.

The Pork Producers Federation of the Philippines says meat imports have increases substantially and thirty percent of those imports are undeclared or under-declared. A number of dummy corporations have been set up to import meat and some importers have been falsifying declarations saying meat is fat or offal and therefore subject to a five-percent tariff instead of a 35 percent tariff.

The heads of the National Meat Inspection Service and Bureau of Animal Industry have been relieved of their duties, the pork producers say changes need to be made at the Bureau of Customs as well.

U.S. likely to adopt Britain’s hog production practices

A pork producer from the U.K. says that U.S. hog farmers should prepare to operate without gestation stalls. Speaking this week at the Animal Agriculture Alliance Stakeholders Summit in Arlington, Virginia.

Mike SheldonIn response to customer demands, the current trend among U.S. hog farms that supply certain restaurants is to shift away from gestation stalls. Animal rights activists have complained that the stalls are too restrictive to the sow’s movement. However, Mike Sheldon, who raises hogs in Great Britain, said that legislation in England sent his gestation stalls to the scrap yard at least a decade ago.

“We became seriously uncompetitive for a short period of time in Europe,” Sheldon told Brownfield, following his address at the summit. “Now the rest of Europe is about to go through that process that we’ve already had to endure and move out of close confinement stalls themselves, and so that’s a very topical issue.”

Sheldon predicts that gestation stalls will become just as rare in the U.S.

“Whether it’s driven by legislation or whether it’s driven by corporate decisions by some of pig producers’ big customers in the U.S., I think that’s going to have to be dealt with here as well,” Sheldon said.

Sheldon is a board member of his country’s pork organization referred to as BPEX.

AUDIO: Mike Sheldon (9 min. MP3)

USGC works with Colombia on FTA details

The U.S. Grains Council says it has a team working with Colombian officials ahead of the implementation of the U.S./Columbia Free Trade Agreement which goes into effect May 15th.

Kurt Shultz, USGC Regional Director for Latin America, says there are still some details that need to be ironed out. While they’re pleased the Colombian government is pressing ahead with the FTA, he says May 15th is “an aggressive deadline.”

Shultz says there needs to be a mechanism for administering the FTA’s tariff rate quotas (TRQ’s) for U.S. corn and grain sorghum. And, he says, Colombia’s biotech labeling requirements for GMOs in raw materials destined for human consumption are not in sync with those of the United States – adding the USGC and Colombian government and industry officials are looking for “a workable solution.”

Opportunties for farming in US/China talks

A delegation of high level U.S. officials is in China for another Strategic and Economic dialogue with Chinese officials.

A group of US lawmakers has written to the U.S. leaders, Secretaries Clinton, Geithner and Bryson, and, trade representative Ron Kirk, to push China to lower barriers on U.S. ag products.

Iowa Senator Chuck Grassley, tells farm broadcasters, “China represents exciting opportunities for many different segments of our agricultural industry, but, China also restricts many U.S. products because of the sanitary and phyto-sanitary issues that are probably more a cover for political decisions to keep our products out.”

For example, he says, China is still closed to U.S. beef despite no scientific support for the ban, “This week’s meeting presents a very important opportunity to move the ball forward for U.S. businesses and farmers.”

The letter to the administration officials was written by Senator Orrin Hatch, ranking member of the Senate Finance Committee. Signing it were committee members Grassley, South Dakota Senator John Thune, Kansas Senator Pat Roberts and other GOP members.

The Senate finance committee has jurisdiction over international trade policy.

Changes to monthly supply and demand numbers

USDA’s May 10 World Agricultural Supply and Demand Estimates Update will have a few changes from previous reports, most of them in soybean products.

Starting with this report, USDA will be replacing the domestic “Methyl Ester and Food, Feed, and Other Industrial Use” breakout with “Domestic Disappearance” citing a lack of reliable data for soybean oil use since the U.S. Census Bureau discontinued its monthly crush report. For soybean meal, “Domestic” will be re-labeled “Domestic Disappearance”.

In the world section for soybeans, Vietnam will now be included as part of Southeast Asia for the Major Importers section. For bean meal, China and Eastern Europe will be removed from Major Importers, Japan will be added, and Vietnam will be added to the Southeast Asia listing. In soybean oil, Pakistan is to be taken off the list of Major Importers, while North Africa, including Algeria, Egypt, Morocco, and Tunisia, will be added to Major Importers.

USDA adds that for the Domestic Milk Supply and Use breakdown, import and export estimates will be adjusted for changes in tariff lines and the conversion codes for milk-equivalent aggregations for milk fats and skim solids.

The numbers are out Thursday, May 10 at 7:30 AM Central.

Quite a week for corn exports

USDA reports the week ending April 26 was a generally strong one for grain and oilseed export sales. Corn, soybean, and soybean oil sales topped pre-report estimates, while soybean meal and wheat sales were within expectations. Physical shipments of soybeans were above what’s needed weekly to meet USDA projections for the 2011/12 marketing year but corn and wheat both fell short of their respective marks.

Wheat came out at 256,700 tons (9.4 million bushels), down 34% from the week ending April 19 and 36% lower than the four week average. Indonesia picked up 65,000 tons and South Korea bought 63,000 tons. With a little more than a month left in the 2011/12 marketing year, wheat sales are 1.002 billion bushels, compared to 1.284 billion late in 2010/11. Sales of 454,800 tons (16.7 million bushels) for 2012/13 delivery were primarily to Mexico (215,400 tons) and Nigeria (90,000 tons).

Corn was reported at 1,331,900 tons (52.4 million bushels), up sharply from the week before and 87% higher than the four week average. Unknown destinations bought 509,500 tons, Japan purchased 357,500 tons, and China purchased 214,000 tons. So far this marketing year, corn sales are 1.469 billion bushels, compared to 1.614 billion this time last year. Sales of 2,140,300 tons (84.3 million bushels) for 2012/13 delivery were mostly to unknown destinations (1,920,000 tons) and China (172,500 tons).

Soybeans were pegged at 598,000 tons (22.0 million bushels), 35% less than the previous week but 14% more than the four week average. Unknown destinations purchased 147,500 tons and Mexico bought 126,100 tons. For the marketing year to date, soybean sales are 1.250 billion bushels, compared to 1.510 billion a year ago. Sales of 1,134,000 tons (41.7 million bushels) for 2012/13 delivery were mainly to China (675,000 tons) and unknown destinations (394,000 tons).

Soybean meal came out at 59,000 tons with sales ranging from 7,300 to 51,200 tons partially offset by cancellations ranging from 4,500 to 33,000 tons. Cumulative soybean meal sales for the current marketing year are 6,346,400 tons, compared to 6,779,900 last year. Sales of 92,700 tons for 2012/13 delivery were to Ireland (33,000 tons), Mexico (32,000 tons), unknown destinations (25,000 tons), and Jamaica (2,700 tons).

Soybean oil was reported at 14,900 tons. The listed purchasers were Morocco (15,000 tons) and Mexico (100 tons) while Canada canceled on 300 tons. 2011/12 soybean oil sales are 372,900 tons, compared to 1,172,600 tons in 2010/11.

Net beef sales totaled 16,800 tons, 9% above the prior week but 8% below the four week average. Sales were to Mexico (4,000 tons), Japan (2,500 tons), Egypt (2,400 tons), Canada (2,100 tons), and South Korea (2,100 tons).

South Korean meat buyers were in the U.S. last week

The U.S. Meat Export Federation (USMEF) hosted 14 meat buyers from a major South Korean retailer and importer last week. They visited packing plants and feedlots and while there was some speculation about the visit in light of the recent BSE-positive cow in California, USMEF president and CEO Philip Seng says the timing was pure coincidence…but opportune. “Of course they visited feedlots and they also visited packing plants and the idea was to give them the total review, the total exposure to our programs. This is something we do with checkoff dollars because it’s very important that we keep reinforcing our safety commitment and the message.”

And while South Korea is a big customer,Seng says Japan is the pace-setter for U.S. beef in Asia. “So when they came out and said we are not going to close the market, we’re going to let things go on as normal and we are also going to continue the process for moving forward beyond 20 months, I think this was the kind of reassurance that these governments need.”

Seng says under most of our trade agreements; the only way a market could be closed is if the U.S. BSE status is downgraded by the World Animal Health Organization.

BSE…a week later

One week after the announcement that a BSE-positive cow was found in California, the U.S. Meat Export Federation says our foreign customers are pretty-much staying put. Indonesia did halt some U.S. beef imports although USMEF president and CEO Philip Seng says that is more a case of Indonesia seeking to boost their domestic production rather than actual concerns about BSE. Thailand had announced it was going to cut-off imports but recanted, the country only imports boneless cuts from animals under 30 months of age so no change is expected.

Seng says USMEF staff have been actively engaged “with industry partners, media contacts and other influential sources in an effort to maintain consumer confidence and dispel any misinformation about the safety or quality of U.S. beef.” Activities he sees as critical to maintaining consumer confidence in U.S. beef.

Good week for soybean, wheat inspections

USDA reports soybean and wheat export inspections for the week ending April 26 were above what’s needed weekly to meet USDA projections for the 2011/12 marketing year while corn fell short of its’ mark.

Wheat came out at 19.831 million bushels, down 5.330 million from the week ending April 19 and 16.920 million lower than the week ending April 28, 2011. With a little more than a month left in the 2011/12 marketing year, wheat inspections are 916.278 million bushels, compared to 1.130 billion in 2010/11.

Corn was reported at 24.921 million bushels, 6.166 million less than the previous week and a decrease of 12.797 million from a year ago. For the marketing year to date, corn inspections are 1.080 billion bushels, compared to 1.161 billion this time last year.

Soybeans were pegged at 15.450 million bushels, up 2.740 million from the week before and 7.060 million higher than last year. So far this marketing year, soybean inspections are 1.089 billion bushels, compared to 1.359 billion a year ago.

Sorghum inspections totaled 641,000 bushels. That’s 241,000 bushels below the prior week and a drop of 1.929 million from a year ago. 2011/12 sorghum inspections are 41.169 million bushels, compared to 101.750 million in 2010/11.

Big day for corn exports

May corn prices jumped 29 cents on the Chicago Board of Trade on Friday on news of one of the largest export sales ever for corn. USDA announced private exporters had sold 1.44 million metric tons for delivery in the 2012-13 marketing year. While the destination is listed as “unknown” most believe the buyer is China. The ag department also reported another sale of 120,000 metric tons with China confirmed as the buyer. For the week, a total of 2.84 million metric tons of corn have been sold for export to China or unknown buyers.

Last month the China Grain Reserves Corporation said it was going to continue to buy corn as they are using more corn for livestock and for food and sweeteners as the country’s middle class is expanding. The International Grains Council projects China will import 4 million metric tons of corn this marketing year and jump to 6 million metric tons for the next marketing year which begins July 1.