Swine Grist 2015 - Fall

Page 1

Swine Grist

VOL 2 ISSUE 3 | FALL 2015

A P E R I O D I C N E W S L E T T E R P R O D U C E D B Y G R A N D V A L L E Y F O R T I F I E R S LT D .

Jim Ross, Chairman Dear Friends, Once again we have the opportunity to greet you and provide some information which we trust will be informative and helpful when applied to your swine operation. Fortified Nutrition is sponsoring a series of Technical Swine Seminars, this November, where recent advances in swine nutrition will be presented. We believe by utilizing this information, producers will benefit from improved average daily gains and feed conversions while at the same time reducing feed costs. The locations, time and dates for these exciting seminars are included on the back page of this Swine Grist. Please plan to join us at one of these meetings. We look forward to having you with us. Wishing you good farming this fall. Sincerely, Jim Ross, Founder & Chairman

A PROMISING FUTURE FOR PORK DEMAND

by: IAN ROSS President & CEO, Grand Valley Fortifiers

A

fter decades of North American per capita consumption of red meat consistently decreasing, 2014 consumption leveled and even slightly increased in the face of record setting pork and beef prices in retail grocery stores. Whether this North American consumption pattern continues, remains to be seen. However, 2014 has certainly called into question, economists’ beliefs, that NA meat consumption levels are highly dependent upon the price that consumers have to pay for these proteins. With this North American experience in mind and realizing that Chinese per capita consumption of pork has risen 4.5 kg per person over a period of just four years, we believe that pork demand will continue to grow in the years ahead. Looking at China alone, 4.5 kg x 1.4 billion people equates to 6.35 million tonnes of new pork demand per year even if China per capita consumption doesn’t grow beyond 2014 levels. In 2013, before the PEDv crisis impacted US pork production, the second largest pork producing country “only” produced 10.53 million tonnes of pork. This Chinese consumption increase represents almost two thirds of US annual production. Recently, Rabo Bank released a report that states ”Over the last 18 months, China’s pork industry has experienced one of the largest culls on record—the ramifications of which are just now being felt globally. To put this change into perspective: the decline of nearly 100 million head in China’s hog herd and 10 million in its breeding herd is equivalent to the U.S., Canadian and Mexican pork sectors all disappearing from global supply in a span of less than two years.” Rabo Bank goes on to state that the EU, USA and Canada are well

Alberta 1-866-610-5770 Saskatchewan 1-877-242-8882 Manitoba 1-866-626-3933

positioned to fill this supply vs. demand gap and expects to see pork exports to China increase accordingly in 2016. Back in North America, we are witnessing increasing demand for organic, “raised without”, and/or Certified Humane® pork products. It seems that as the US economy has continued to grow, more people are beginning to realize saturated fats are not “public enemy number one” in relation to human health and heart disease. As a result, wealthy consumers are willing to pay significantly more for red meat than they used to be. Demand for and the lack of supply of organic pork and “raised without antibiotics”/ Certified Humane® pork has resulted in committed retailers offering long term, Cost of Production based contracts plus premiums in order to secure pork for their higher end grocery shelves. Having been part of pork value chains for almost a decade now, our team at Grand Valley Fortifiers has never witnessed this level of commitment from retailers or food service companies previously. Due to the availability of these types of contracts, Grand Valley Fortifiers and our True Foods value chain facilitation and governance team is seeking to recruit enough Ontario producers to source 1000 organic hogs per week and 1000 “raised without” antibiotic Global Animal Partnership Level 1 pigs for US retailers. We continue to search for value chain opportunities like these for our Fortified Nutrition Limited customers in Western Canada to consider for their operations. As large US food companies scurry to address the growing demand for this perceived “better for you” food, opportunities are created for family owned and operated farms that have the desire and ability to produce differentiated, value added pork. Helping producers access and address these market opportunities is fundamental to our business and fits squarely within the GVF group of companies’ core purposes: Profitable Farms, Healthy Food, Improved Lives. If you or someone you know is interested in one of these unique opportunities, please speak with one of our GVF Swine Specialists or contact Heather Ferguson directly at heatherferguson@truefoods.ca. n

Ian Ross, President & CEO | Jim Ross, Chairman Clarke Walker, VP & COO Dr. Martin Clunies, Monogastric Nutritionist David Ross/Patti Bobier, Publishers


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
Swine Grist 2015 - Fall by Fortified Nutrition Ltd - Issuu