Friday December 27 Hogs & Pigs Report + Ag News

NEBRASKA HOG INVENTORY UP 3 PERCENT

Nebraska inventory of all hogs and pigs on December 1, 2013, was 3.1 million head, according to the USDA’s National Agricultural Statistics Service.  This was up 3 percent from December 1, 2012, but unchanged from September 1, 2013.  

Breeding hog inventory, at 390,000 head, was up 3 percent from December 1, 2012, but down 3 percent from last quarter.  Market hog inventory, at 2.71 million head, was up 3 percent from last year, and up slightly from last quarter.  

The September-November 2013 Nebraska pig crop, at 1.83 million head, was up 2 percent from 2012.  Sows farrowed during the period totaled 170,000 head, unchanged from last year.  The average pigs saved per litter was 10.75 for the September-November period, compared to 10.50 last year.

Nebraska hog producers intend to farrow 170,000 sows during the December 2013-February 2014 quarter, up 3 percent from the actual farrowings during the same period a year ago.  Intended farrowings for March-May 2014 are 175,000 sows, up 9 percent from the actual farrowings during the same period the previous year.  



Iowa Hog Inventory Down 1% from a Year Ago

On December  1,  2013  there were  20.5 million  hogs  and  pigs  on  Iowa  farms  according  to  the  latest USDA National Agricultural  Statistics  Service  Hogs  and  Pigs  report.  The  December  1  inventory  was  down  2  percent  from September 2013 and less than 1 percent from a year ago. 

The September 2013-November 2013 pig crop was 5.09 million head. A total of 480,000 sows farrowed with an average litter size of 10.6 pigs per sow. 

As of December 1, producers planned  to  farrow  460,000 head of  sows and gilts  in  the December 2013-February 2014 quarter. Farrowing intentions for the March-May 2014 period were estimated at 465,000 as of December 1, 2013.



United States Hog Inventory Down 1 Percent

United States inventory of all hogs and pigs on December 1, 2013 was 65.9 million head. This was down 1 percent from December 1, 2012, and down 2 percent from September 1, 2013.  Breeding inventory, at 5.76 million head, was down 1 percent from last year, and down 1 percent from the previous quarter.  Market hog inventory, at 60.2 million head, was down 1 percent from last year, and down 2 percent from last quarter.

The September-November 2013 pig crop, at 29.3 million head, was down slightly from 2012. Sows farrowing during this period totaled 2.88 million head, down slightly from 2012. The sows farrowed during this quarter represented 50 percent of the breeding herd. The average pigs saved per litter was a record high 10.16 for the September-November period, compared to 10.15 last year. Pigs saved per litter by size of operation ranged from 8.00 for operations with 1-99 hogs and pigs to 10.20 for operations with more than 5,000 hogs and pigs.

United States hog producers intend to have 2.83 million sows farrow during the December 2013-February 2014 quarter, up 1 percent from the actual farrowings during the same period in 2013, and up slightly from 2012. Intended farrowings for March-May 2014, at 2.86 million sows, are up 1 percent from 2013, but down 3 percent from 2012.

The total number of hogs under contract owned by operations with over 5,000 head, but raised by contractees, accounted for 48 percent of the total United States hog inventory, up from 47 percent last year.



INTERPRETING RFV OF GRASS HAY
Bruce Anderson UNL Extension Forage Specialist

Have you ever tested the quality of your grass hay and been disappointed at the low relative feed value?  Well, maybe your worry was unnecessary.

Farmers and ranchers often tell me their prairie hay or cane hay or other grass hay looks really good but when a lab tested it the relative feed value, also called RFV, was surprisingly low, maybe in the 70s or 80s.  So what’s wrong with the hay?

Well actually, nothing may be wrong.  We need to understand how RFV is calculated and how it should be used.

First, relative feed value is calculated using only fiber values.  While protein certainly affects the value of hay, it has absolutely no affect on the calculation of relative feed value.

You see, relative feed value was initially developed for the dairy industry.  It was designed to help rank the potential energy intake of different hays by lactating dairy cows.  And it does this quite well, especially for legumes like alfalfa.

Grass hay, though, is a bit different.  Grass has more fiber than alfalfa, which lowers its calculated RFV.  But, that fiber often is quite digestible.  So grass hay frequently is ranked lower than it should be using relative feed value.

Also, RFV doesn’t predict performance by other types of animals, like beef cows, as well because potential energy intake does not have as much influence on their performance.

Basically, this means that when you feed grass hay to animals other than dairy cows, focus on crude protein and TDN.  If protein and TDN meet their needs, the animals probably will do just fine.

The RFV is much less important and could cause you to worry more than its worth.

THE PROTEIN-FIBER CONNECTION
Most winter feeding programs for dry cows rely on less expensive, lower quality forages that have low amounts of crude protein, and most of their energy value comes from fiber.  How does this work?

Cattle get energy from this fiber because microbes in their rumen can digest fiber, releasing volatile fatty acids for energy and producing microbial protein.

These microbes, however, also need specific nutrients to function optimally. Extra vitamins or minerals rarely, if ever, are needed.  They can be deficient in protein, however, especially when the cow’s diet has low amounts of protein in lower quality forages.

Not just any protein will do, however.  Non-protein nitrogen sources like urea are not used well by rumen microbes when most of their dietary energy comes from fiber.  Rumen microbes trying to grow and thrive in a high fiber/low energy environment perform better when provided true protein and amino acids rather than non-protein nitrogen.  In addition, most of this protein should be ruminally degradable so the microbes can use it rather than in the form of undegradable intake protein, which often  referred to as escape or bypass protein.  Protein from natural plant sources, like alfalfa, soybeans, and cottonseeds, often can provide the needed types of protein most economically.

When fed properly, rumen microbes break down and digest the fiber in the forage more completely and do it more rapidly.  Forage passes out of the rumen quicker, providing space for more forage.  Thus, it also increases forage intake by the cow.

Lower quality forages usually are among the least expensive feedstuffs available for the cow herd.  When they are supplemented with the proper type and amount of crude protein, they can provide adequate nutrition to maintain healthy, productive animals.



2014 Iowa Pork Congress to be held Jan. 22-23 in Des Moines

The Iowa Pork Producers Association (IPPA) will hold the 2014 Iowa Pork Congress on Jan. 22 and 23 at the Iowa Events Center in Des Moines.

The nation’s largest winter swine trade show and conference will be held in Hy-Vee Hall with show hours from 9 a.m. to 5 p.m. on Jan. 22 and 9 a.m. to 4 p.m. on Jan. 23.

“The Iowa Pork Congress has established a tradition of excellence over the years and it attracts several thousand producers and others involved in the pork industry, as well as most of the top companies who serve the pork industry,” said IPPA President Greg Lear, a Spencer area producer. “We offer timely and informative seminars facilitated by some of the industry’s leading experts, great social functions and attendees have an array of networking opportunities. It really is a show for anyone who is involved in pork production, including our young swine enthusiasts.”

Interest in Pork Congress remains very strong among pork industry vendors and nearly 300 Iowa, U.S. and international companies will fill the Hy-Vee Hall trade show floor. Products ranging from equipment and nutrition to genetics and pharmaceuticals will be on display. Several exhibitors are rolling out new or enhanced products during Pork Congress.

IPPA will welcome attendees to the Pork Information Plaza on the north trade show floor where guests can visit with producer leaders and representatives from the National Pork Board, National Pork Producers Council and other affiliated organizations.

Attendees will again have a wide range of seminars to choose from. An update on what’s happening in Washington, the latest on PEDV, an economic outlook, the Affordable Care Act and opportunities for new farmers are among the scheduled sessions. The Iowa Nutrient Reduction Strategy also will be discussed.

Sixth generation farmer and agriculture advocate Trent Loos brings his passion and wit to the 2014 Iowa Pork Congress as the keynote speaker. In “Tell that to the Crunchy Momma,” Loos will address the need to re-educate consumers on modern food production. The “Loos Tales” star will address attendees at 2 p.m. on Jan. 22.

Hog farmers also will be able to obtain or renew their PQA Plus and TQA certifications, and a certification session for confinement site manure applicators is again being offered.

“We try to provide the best of everything at Pork Congress, from the tradeshow to the social events,” Lear added. “This is our 42nd show and with all of the activities we have scheduled, Pork Congress should be another great event for the pork industry.”

Producers can pre-register to attend Pork Congress through Jan. 9, 2014. IPPA members can attend the tradeshow and conference at no cost by registering by the deadline. Register at iowaporkcongress.org or by using the form in the November issue of the Iowa Pork Producer magazine.

Non-IPPA members can save $5 off of the normal $10 admission cost by registering online by the deadline. Registrations will be accepted after the deadline through each day of the show, but the cost will be $10.

Pork Congress week will start on Jan. 20 with the annual IPPA Taste of Elegance contest and reception. The IPPA Annual Meeting will be held Jan. 21 and the annual Iowa Pork Foundation Kickoff Reception and Auction will take place that evening. The Pork Congress Banquet is on Jan. 22. The IPPA Youth Swine Judging Contest will be held in the Pioneer Livestock Pavilion at the Iowa State Fairgrounds on Jan. 23.

For more information, contact IPPA at (800) 372-7675 or visit www.iowaporkcongress.org.



Premium U.S. Pork Promotion Makes Waves in Taiwan
The people of Taiwan love home-grown pork, but high-quality American pork is becoming the media darling in this meat-loving island nation of 23 million.

U.S. pork typically goes into processing in Taiwan, but a crowd of gourmet bloggers and reporters from newspapers, television and magazines showed that Taiwanese are hungry for news about premium consumer-ready U.S. pork by covering a U.S. Meat Export Federation (USMEF) event produced with support from the Pork Checkoff.

Celebrity chef Chen of ShenYen Teppenyaki entertained the assembled reporters while serving samples of French-cut bone-in loin, Boston butt and spareribs combined with local ingredients in six delicious dishes. Interviews with the chef discussing the attributes of U.S. pork and his distinctive recipes were carried in the many media outlets attending including the China Post, Taiwan News, China Times, Commercial Times and SET-TV.

“Using high-quality ingredients is a delightful experience,” said Chef Chen. “You know that they are special and different from other ingredients.”

The goal of the promotion was to help U.S. pork gain a larger share of the food service sector by capitalizing on demand for branded, premium pork dishes at high-end restaurants and hotels.

“The finest hotels and restaurants want to distinguish themselves from their competition by serving distinctive dishes such as dry-aged pork steaks and branded pork,” said Davis Wu, USMEF-Taiwan director. “Raising the awareness of high-quality U.S. pork with this audience is a good step toward building consumer demand.”

The event with Chef Chen was one part of a broader campaign that includes retail promotions and a distinctive rolling U.S. pork billboard – images of healthy young piglets wrapping a bus that commutes hourly through the capital Taipei and neighboring Ilan County.

While efforts to promote U.S. pork to processors is challenged by Taiwan’s zero tolerance for growth promotant residues, USMEF is encouraged by the positive reception to its market development program for U.S. chilled and processed pork.

“Many consumers are unaware of the quality of U.S. pork and where it can be purchased.” said Wu. “Seeing Chef Chen demonstrate easy-to-cook pork recipes while discussing the positive attributes of U.S. pork for high-end foodservice sends a strong message to those chefs searching for unique food ingredients.

“Developing consumer-oriented activities for the Taiwan market enables us to better control the messages and communicate directly to the end consumer,” added Wu. “That helps create a new atmosphere for U.S. pork and elevate it to a higher-quality status.”

While Taiwan is 94 percent self-sufficient in pork, consumers here enjoy significantly more red meat than their Japanese and South Korean counterparts and slightly more than mainland China, and pork is by far the local favorite.

Despite the growth promotant residue issue, USMEF has made inroads in expanding the market for U.S. pork beyond the processing sector, including at the retail level, with growth supported by a younger generation that shops more in supermarkets and hypermarkets than traditional wet markets. There are growing opportunities for U.S. pork niche items such as natural pork and unique processed and branded items.

Through September, Taiwan has purchased 15,431 metric tons (34 million pounds) of U.S. pork valued at nearly $34 million, increases of 17 percent and 14 percent respectively over last year.



Oil Closes Above $100

(AP) -- Oil prices closed above $100 a barrel Friday, the first time it crossed that threshold since October.

Benchmark U.S. oil for February delivery rose 77 cents to close at $100.32 in trading on the New York Mercantile Exchange.

The price of oil got a boost from a drop in applications for unemployment benefits, the latest sign of recovery in the U.S. job market, and expectations of a decline in U.S. crude stockpiles. Optimism about the U.S. economic recovery lifted expectations for the country's energy demand.

The last time oil traded above $100 a barrel was Oct. 21. The last day it closed above $100 a barrel was Oct. 18. During the abridged holiday trading week, oil gained $1.

A report from the Energy Department's Energy Information Administration released Friday showed that U.S. crude stockpiles fell 4.7 million barrels last week to 367.6 million barrels. The supply fell in the last week from 23.4 days' worth of oil to 22.8 days.

At the gas pump, the average price of a gallon of gasoline is $3.28. That's up 6 cents from a week ago, and up 2 cents from this time last year.



Ethanol Stocks, Demand Up; Output Down

Total U.S. fuel ethanol inventories edged slightly higher for the fourth straight week last week, adding 35,000 barrels (bbl) of supply to lift domestic stocks to a three-month high at 15.66 million bbl despite another decline in domestic production and higher implied demand, according to new data released Friday, Dec. 27, by Energy Information Administration.

Total supplies are 4.7 million bbl, or 12.9%, below a year ago, according to the data for the week-ended Dec. 20.

The EIA data also showed ethanol production at U.S. plants eased last week for the second straight week, falling 2,000 barrels per day (bpd) to 926,000 bpd during the week profiled, while up 92,000 bbl, or 11%, from a year ago.

This the ninth consecutive week domestic production has stayed above 900,000 bpd. Four-week average production at 928,000 bpd was up 12% from a year earlier.

No ethanol imports came into the country for the 12th straight week during the week-ended Dec. 20, the data showed. Refiner and blender inputs, a proxy for demand, rose 49,000 bpd, or 5.9%, to 876,000 bpd for the week profiled, while up 26,000 bpd or 3.2% from a year earlier. Four-week average implied demand was up 2.7% year-over-year.

EIA also reported motor gasoline product supplied, a proxy for gasoline demand, increased 160,000 bpd to 9.176 million bpd last week. Over the last four weeks, motor gasoline product supplied averaged 8.9 million bpd, up 3.9% from the same period last year.