TheMeatSite Newsletter - 16 May 2012

Welcome to this week's newsletter

Editorial: Hopes for Economic Improvement

There are some signs of improvement in the UK economy, according to an agricultural economics specialist speaking at the recent UK Outlook Conference for the red meat and dairy sectors.

Head of Agriculture at HSBC, Allan Wilkinson said that 2011 was the year it all went wrong for the UK economy.

While GDP grew each quarter last year in the US and was negative only in the last quarter in the Euro-zone, GDP has contracted in three of the last five quarters in the UK. The last two periods of negative growth put the UK officially into a technical recession.

However, surveys point to a stabilisation in the economy as an indicator points to a greater willingness for businesses in the UK to invest, he said, which is inconsistent with the normal pattern for a recession.

Annual GDP growth is forecast to be positive this year and next in the US, Japan and especially in Asia, where it is expected to reach around seven per cent.

An HSBC forecast puts India to become the leading economy by 2050, overtaking both China and the US. A contraction is expected in the Euro-zone this year with a marginal improvement in 2013.

In Denmark, the Danish Agriculture and Food Council's Pig Research Centre has indicated that there is a war of attrition is taking place between the pig producers and the bankers.

Writing in the Pig Research Centre's annual report, the chairman Lindhardt B. Nielsen and director Nicolaj Norgaard said that the European industry has rarely been looking so hard for reductions in production, while prices have been rising so high.

However, they have hit out at the banking sector for propping up unprofitable farms in the hope that better days will be around the corner.

Instead, they say, it would have been better for the industry - and even the bankers - if the non-profitable farms had been shut down earlier.

In the US, pork exports during March reached 486.6 million pounds, up 6.9 per cent from February, but 0.8 per cent lower than in March 2011.

According to agricultural economist, Ron Plain, there is a lot of concern that exports to China will drop sharply this year. They have declined each month since November. However, March shipments to China were 22.9 million pounds more than a year ago.

In the beef sector, US exports during March were up 7.1 per cent from February, but down 20.7 per cent compared to March 2011.

During the first quarter of 2012, beef exports are down 11.8 per cent and beef imports are up 26.2 per cent.

Chris Harris

This Week's Feature Articles

We have 6 new features this week:

Adding Value through Packaging
Convenience, shelf presence, food safety, cost, functionality and sustainability are all the main driving forces for innovative food packaging, writes Chris Harris.

Clean Animals Result in Fewer E. coli
Following the E. coli case in Norway in 2006, when 17 people fell ill and one child died after eating mutton sausages, the meat industry introduced a number of measures in order to reduce the risk of food poisoning from meat.

The Bumpy Road of the Beef Market
Uncertainty is something the beef industry continuously faces and lately there have been some sudden dips and turns in the road, writes Chane Ellis from teh Iowa State University Department of Economics in the Iowa Farm Outlook.

Food Outlook – Meat and Meat Products
Global meat markets in 2012 are expected to see a recovery of supplies in traditionally importing countries and strong competition for markets, according to the latest Food Outlook report from FAO. Near record prices are constraining consumption growth.

A World of Decreasing Resources and Increasing Regulation
A White Paper based on information from the 2012 Annual Conference of the National Institute for Animal Agriculture (NIAA) on 26 to 29 March 2012 shows that a survey of America's young farmers and ranchers revealed that 97.2 per cent planned to farm and ranch for life; and 90 per cent said they would like their children to follow in their footsteps¹.

Rapid Testing of Food Quality
Whether fruit, meat or cheese – the quality of food is not always as consumers would like it to be. But, in future, a spectrometer will allow them to gage the quality of food before they buy it.

Market Reports

» World Agricultural Supply and Demand Estimates - May 2012
» USDA International Meat Review - 10th May 2012
» BPEX Export Bulletin – Week 19
» AHDB European Market Survey - 11 May 2012
» AHDB UK Market Survey - 11 May 2012
» Utilisation of Milk by Dairies in England and Wales - February 2012

Company News

Waterjet Cutting of Fish Under X-Ray Guidance
ICELAND - Trimming and portioning of fish fillets is much faster, the yield higher and the value of the prepared fish greater using a new, X-ray guided cutting machine called RapidPinbone from Icelandic firm, Valka.

Improved Airflow System Increases Yield
UK - Global food processing equipment manufacturer, JBT FoodTech, has improved the airflow system on its Double D Revoband Continuous Protein Oven to reduce cook times and improve yield.

Paris Hosts 19th IMS World Meat Congress
FRANCE - About 1000 delegates from around the world are expected to gather in Paris at the beginning of June for the 19th International Meat Secretariat World Meat Congress.

Global Meat Industry News