Tight pork supply and a lingering uncertainty

   China's African swine fever outbreak continues into its second year, and the disease's impact - felt across most of the country's administrative regions - could result in a 40% year-on-year loss of its 348 million strong swine inventory, a recent Rabobank report pointed out.

    Worse, this loss could expand to 50% by year-end. Rabobank also foresees that another "10 to 15 percent" drop in "both herd and pork production in 2020."

    Adding to the less optimistic outlook of the Chinese pork sector, the South China Morning Post reported a 26.7% loss of breeding sows in mainland China by the end of June from a year earlier based on a tally provided by China's Ministry of Agriculture and Rural Affairs.

    Consequentially, the massive pig deaths left a huge dent in Chinese meat supply, prompting Beijing to seek imports from Europe, Brazil and even the United States, which it remains locking horns with in an ongoing trade war. In fact, the US Meat Export Federation revealed that US exports to China in the second quarter 2019 doubled year-on-year to 60,898 tonnes.

    Referring to government statistics, the South China Morning Post reported that "A 6.2% year-on-year fall in domestic hog supply in the first half meant the slaughtering and meat processing industry   imported 818,702 tonnes of pork - 26.3% higher year on year – to meet demand."

    However, the import of pork from the US was complicated by the US-China trade war. One such company affected by this dispute is WH Group which is also dealing with impact of ASF on the availability of raw meat at its Chinese facilities.

    Increasing the import of pork from WH Group's US unit, Smithfield Foods, would be hampered by the tariffs the US and China had imposed on each other. The company, which imports around 100,000 tonnes of pork a year into China from the US, is now seeking to buy the meat from potential markets outside the US, namely, Europe, South America and Canada.

    This shift in Chinese pork sourcing led to a 52% year-on-year increase (to 432,293 tonnes) of pork exports from the European Union (headed by Germany, Spain and Denmark) in the first five months of 2019. The souring of relations between Canada, a key pork exporter, and China over the arrest of a top executive from Chinese telecom company Huawei also contributed to the European uptrend. In addition, exports from Brazil increased 28.9% to 92,188 tonnes in the first half of this year, said an analyst from commodities brokerage INTL FCStone.

    Still, as highlighted by eFeedLink's Eric J. Brooks in a July report: "...the entire world economy cannot supply sufficient meat – let alone pork – to make up for an ongoing 125 million head decline in Chinese hog inventories. This equals the combined hog inventories of America, Canada and Brazil."

    As such, China is also exploring other alternatives, specifically beef, poultry and fish. According to Brooks, local chicken and farmed seafood production could rise by up to a million tonnes each.

    Meanwhile, the tightening of China's swine numbers have caused hog price to rise 80% in August from February this year. This development presents an opportunity for both WH Group and Muyuan Foodstuff to boost their profits - hence, the latter plans to expand production this year despite the ASF outbreak.

     Whether this action will position Muyuan's profits for a satisfying uptrend remains to be seen. Already, the company - which is China's second-biggest pig producer - has reported an increase in first-half losses from last year due to declining pig prices in the first quarter of 2019 and rising costs in keeping its farms free from ASF.

    Based on a Reuters report, Muyuan has suffered a net loss a net loss of ¥155.7 million (US$21.95 million) compared with a loss of ¥78.7 million (US$11 million) a year earlier, in the first six months of this year.

    The company joins other Chinese firms also affected by ASF-linked losses, including COFCO, which witnessed a ¥276 million (US$38.9 million) loss of first-half profits from 2018.

    Inevitably, the pressures faced by the Chinese swine sector has a far-reaching impact on local feed production as well.

    "Complete feed accounts for 42% of hog feed consumption," eFeedLink's Eric Brooks noted.

    Another eFeedLink analyst, Shi Tao, stated that, "In June 2019, nine (out of 22) provinces slashed the output of complete hog feed by more than 50% compared with June 2018. The output of another nine provinces decreased by more than 20%. Total complete hog feed output fell by 32.4% year-on-year."

    Brooks said that the sharp drops in hog feed production is in line with eFeedLink's July 2019 Livestock Tracker, which stated: "Since peaking at 492 million head in January, African swine fever mortality and culling slashed inventories by 7.1%. Expect an additional ASF-induced inventory fall of 20% to 25% from current levels before they stabilise."

    This downtrend in feed production could explain the recent losses of Chinese feed maker Beijing Dabeinong Technology Grup Co. Ltd, which produced 4.6 million tonnes of feed - mostly for pigs - last year. On August 21, the company reported a 67.67% drop in first-half net profit due to affected feed demand as well as weaker earnings from its pig farms.

    Overall, experts and analysts saw a long road ahead for the Chinese swine sector's recovery and suggested that the country's livestock production system is in need of some reformation.

    "It would be a miracle if African swine fever can be controlled, let alone eradicated, within the next five to 10 years," Dirk Pfeiffer, a professor at City University's Jockey Club College of Veterinary Medicine and Life Sciences in Hong Kong, told the South China Morning Post. He identified the density of Chinese farms and weak biosecurity in the entire production hain as the industry's main challenges.

    "ASF is merely the most severe symptom of a much larger problem: China's chronic, decade long agribusiness crisis is not so much due to unfortunate microbial outbreaks, illegal farm animal farming methods or government policies but an entire livestock farming paradigm," Brooks said.

    "The fact no other developed or developing country faces comparable non-stop disease-and-scandal driven constraints on its meat output implies that this problem is rooted in China's approach to livestock farming."


Ref : https://postman.clickrmedia.com/t/ViewEmail/r/D53D77EF736D7EA92540EF23F30FEDED


ASF Philippines: Outbreaks in Pangasinan and Manila

   The Philippines reported an official update on the African Swine Fever (ASF) progress to the OIE. The virus is now officially reported from Pangasinan province as well as Manila, both on Luzon Island.

    In what is the 2nd round of updates to the World Organization for Animal Health (OIE), the report contains 9 new outbreak locations, spread out over Pangasinan province and Manila.

   ASF outbreaks in Manila

In Manila, the Philippines confirmed 7 different outbreaks from Quezon City, which is in Manila’s 2nd District. In all cases, this was about backyard farms in smaller village units. The total amount of animals that had to be culled was 4,919, according to these figures.

   ASF outbreaks in Pangasinan province

In addition, the Philippines confirmed 2 outbreaks to the OIE in the northern province of Pangasinan, in the locations Apalen and Baloling. Here in total 212 pigs had to be culled.

   It looks like more reports will follow in the near future. On the news channel of the Philippine authorities, for instance, also outbreaks have already been reported from Bulacan and Cavite provinces. The FAO website also reports that the provinces Nueva Ecija and Pampanga are infected. Exact data about what is going on in those provinces, however, are not available yet from the OIE.

   At the first update round at the OIE, the Philippines reported that their first outbreak occurred on July 25, in Rodríguez and Antípolo, in Rizal province, east of Manila. That report included 7 outbreaks in backyard facilities. In total, according to the website of the UN’s Food & Agriculture Organization (FAO), 62,000 animals have died or have been culled in relation to ASF.

   ASF situation in South Korea

In the meantime, also South Korea continues to report outbreaks of ASF, mostly in wild boar, along the border with North Korea. The South Korean government now reported 30 cases to the OIE, which is a mixture of cases affecting an entire commercial farm as well as individual wild boar cases in the forest. On the basis of the OIE figures, in South Korea so far 26,893 animals died as a consequence (virus or culling). That included 16 wild boar.

   Several outbreaks in China

Also in China a few outbreaks were reported. On the website of the OIE, a report was confirmed in Yunnan province. Earlier this month, cases were reported (only on the website of the Ministry of Agriculture and Rural Affairs) of outbreaks in Guangxi and Gansu province.

   Pork prices in China have been rising steeply in recent weeks. According to press agency Reuters, pork prices have now gone beyond RMB50 (US$ 7.07) per kg. Figures of 40-60% are being mentioned to quantify the reduction of the Chinese pig herd due to African Swine Fever.

  Credit : https://www.pigprogress.net/Health/Articles/2019/10/ASF-Philippines-Outbreaks-in-Pangasinan-and-Manila-492432E/?cmpid=NLC%7Cpigprogress_f%E2%80%A6

The efficient fat utilization by using emulsifying agents

     As the intensive animal production industry requires the animal to grow fast and efficiently. They have to grow as fast as possible with the minimize amount of feed. So, they need the rich energy's diets for consumption, which is usually supplied by the addition of fats and oils.
     By the way, before these fats can be digested, the emulsification by emulsifying agents such as bile acids is needed. This process is necessary because of the digestive tract is an aqueous environment, although fats and oils are lipophilic substances.
     In the first stage of fat digestion, fat have to emulsified by bile salts and phospholipids. Because of the fat is insoluble in water, the fat droplets will accumulate into the fat globules in the aqueous environment of the small intestine. To avoid this, fat emulsification by bile salt is needed due to emulsified the large lipid globules into the small lipid droplets.
     The reducing in fat globule size is the result in increase the contact surface with lipase for hydrolysis. The fat molecule, Triglyceride, is broken down by lipase into 2 fatty acids and 1 monoglyceride.
     After fat hydrolysis, fatty acids and monoglyceride have to mixed with the bile salts and other phospholipids to form the micelle for transport the lipophilic substances in the intestinal lumen and through the unstirred water layer of the enterocytes for nutrient absorption.
     However, the young animal cannot produce sufficient amounts of bile acids for efficient emulsification and micelle formation. So, the supplementation of emulsifying agents such as Lysolecithin can be beneficial for nutrient digestion and absorption of young animals.
     Credit: Technical report, FRAmelco Research and Development department, The Netherlands

CPF also switched to group housing for sows

     Thailand's largest swine producer Charoen Pokphand Foods (CPF) has confirmed that it will convert all new farms to group housing for gestating sows in the years to come.
     Charoen Pokphand Foods' vice president of the pig business, Mr. Soontorn Imboonta, confirmed that news to Pig Progress.
     At the moment, 24% of CPF's sow farms in Thailand have already switched to group gestation pens, Mr.Soontorn said. The transition will also apply to all new-to-build pig houses.
     Gradually, during maintenance, also the existing buildings will be converted as well, Mr. Soontorn told. For farms in Thailand, the total transition is intended to be completed by 2025.
     Keeping sows in groups of 8
     It is intended to keep the sows in groups of 8, using free access stalls, he said. This conversion is estimated to require a 10% additional surface. Either this will mean that buildings have to be expanded or about 10% fewer sows can be held in the similar buildings.
     The main reason for the conversion to group housing is welfare, said Mr. Soontorn, although in Thailand currently there is not a strong movement yet demanding more animal welfare for pigs and sows. It pays off to be ahead of the game, he indicated.
     Mr. Soontorn said that one of the reasons to convert is because in many trials sows have been observed to be better prepared for farrowing.
     Late last year, Betagro, Thailand's number 2 in terms of swine production, also announced to convert to group housing for sows. In addition, Qinglian Food in China made the step towards conversion to group housing. In the European Union, group housing for gestation sows has been mandatory since 2013.
     Credit:Vincent ter Beek. (2018, May). CPF also switched to group housing for sows, Retrieved from https://www.pigprogress.net/Sows/Articles/2018/5/CPF-also-switches-to-group-housing-for-sows-279908E/