Swine Grist - Winter 2019

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Swine Grist

A PERIODIC NEWSLETTER PRODUCED BY GRAND VALLEY FORTIFIERS LTD. VOLUME 6, ISSUE 4 | WINTER 2019

Dear Friends, This summer and fall proved to be very beautiful seasons but didn’t come without some challenges. While the months of September and October thankfully provided additional heat to help finish the corn crop, the moisture also persisted and caused delays in harvesting soy beans and now corn. Thankfully the corn crop, although high in moisture, is proving much cleaner than last year, with low to non-existent mold and mycotoxin levels. We pray that producers who still have crops to bring in, are able to do so successfully, during the month of December. Ian has written a timely update on the pork market and the factors effecting pricing going into 2020. The conditions look promising and hopefully we’ll see producers enjoy some strong prices for their pork in 2020. We’re also excited to welcome Cheryl Lehman to the team and Victoria shares some interesting results around iron supplementation and production improvement research. Don’t miss Martin’s article on the last page highlighting the importance of sow cards. Knowing your sow productivity details is key for great production. Wishing you and your family a wonderful Christmas as you celebrate the birth of Jesus our Saviour. God bless from the management and staff of Grand Valley Fortifiers. Sincerely, Jim Ross, Founder & Chairman

WHERE ARE PORK PRICES GOING IN 2020?

by: IAN ROSS President & CEO, Grand Valley Fortifiers

A

s we approach the end of 2019, many Canadian pork producers will be looking forward to saying “good bye” to 2019 and “hello” to 2020, with the hopes of a much more positive and profitable year ahead. Recognizing that hog price volatility has been extreme throughout the year and knowing that many Ontario pork producers struggled with the productivity and growth impacts of poor corn quality from last fall’s harvest, 2019 has been described as a slow strangulation of profitability that was reminiscent of 1998. Although late, difficult to get off the muddy fields and challenging to dry with the propane shortage, this year’s corn crop looks to be of good quality and will likely result in better intake, growth rates and sow productivity in swine farms this year. All of the new corn mycotoxin tests that we at Grand Valley Fortifiers have received to date have shown very low levels of DON, Zearalenone and T2. This is certainly encouraging. So what about hog prices for 2020 and beyond? It is extremely difficult to understand how Canadian pork producers could experience many months of sub-cost of production pricing levels in 2019, with prices as low as $1.10/kg with the realities of global demand and global supply of pork. Even prior to the ASF spread across China, most of Asia and a growing percentage of Europe, the emerging middle class in Asia was going to demand a great deal more meat to be produced than the world has ever seen. Marry this reality with the impact on pork supply by ASF and you have a “perfect storm” that should have resulted in very high North American pork prices through most of 2019.

Dr. Samuel Waititu, Monogastric Nutritionist AB / SK: 1-866-610-5770 MB: 1-866-626-3933 www.fortifiednutritionltd.com

In the last number of months, most global market analysts have reached a consensus that China will lose 50% of their sow herd by early 2020. Assuming that this results in a decrease of 50% of pork production, this equates to 26 million tonnes of pork – the total production of the European Union, Canada and Japan combined. Vietnam is also in extreme danger of losing a very high percentage of its herd to ASF. We don’t often consider Vietnam to be a very large pork producer. The reality is that prior to ASF, Vietnam had 3 million sows compared to Canada’s 1 million sow herd. Gira (Girag & Associates Sarl, France) forecasts in their China Market Assessment, October 25th, 2019, that Chinese pork imports from all countries will expand from about 1.2 million metric tonnes in 2018 to 2.2 million metric tonnes in 2019 and over 3 million metric tonnes by 2023. Who have been the biggest pork exporters to China in the first eight months of 2019? RaboResearch indicates that Spain, Germany, Canada, Brazil, USA are the top five, all with substantive growth in volumes compared to first eight months 2018, notwithstanding the pork export ban Canada experienced and the trade war tariffs imposed on US pork.

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


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