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TheMeatSite Newsletter - 26th June 2013

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Wednesday 26th June 2013.
Chris Harris - TheMeatSite Editor in Chief

Chris Harris
Editor in Chief

Pork and Beef Trade Trends

With Shuanghui International - a Chinese meat company – expressing interest in purchasing Smithfield Foods - a global food company based in the US that is heavily involved in pork production - one industry analyst has compared pork consumption and production in China and the United States between 1975 and 2013.

Overall, Chinese consumption currently is over six times that of the US, observed Gary Schnitkey of the Department of Agricultural and Consumer Economics at the University of Illinois.

In 1975, Chinese consumption was already higher than in the US and it grew at an annual rate of 5.7 per cent, compared to 1.3 per cent in the US. This is not the result of differences in population growth – which are similar – but rather in divergent pork production patterns. Between 1975 and 2013, annual per-capita consumption of pork in China increased by 4.6 per cent while US consumption remained roughly stable. Growth in per-capita pork consumption largely is attributable to increases in Chinese income levels, according to Dr Schnitkey.

Chinese pork production has increased at roughly the same rate as Chinese consumption. In recent years, however, there has been some modest growth in Chinese pork imports. There may be questions of whether the Chinese pork industry can maintain domestic pork production growth.

US production has increased faster than US consumption, resulting in the US becoming a net exporter of pork production.

Chinese growth offers opportunities for both the pork and grain sectors in the US, Dr Schnitkey concludes.

Shuanghui International is reported to have received US$7.9 billion in loans from Bank of China and Morgan Stanley for its acquisition of Smithfield Foods.

Also in pork trade news, Ukraine has lifted an import ban on Brazilian pork. The ban, which has been going on for two months, led to an 18 per cent export drop for Brazil in May. The news has raised private sector hopes as Ukraine had been one of the largest buyers of Brazilian pork.

Turning to the international beef trade, Mexico has long been a major beef industry trading partner with the US in roles that have continually evolved into deeper and more integrated relationships.

According to Derrell S. Peel of Oklahoma State University, for many years, Mexico has been the major source of imported feeder cattle. US beef exports to Mexico developed in the late 1990s and Mexico has been one of the top beef export destinations since then.

Most recently, however, Mexico has emerged as a top source of beef imports into the US.

All of these markets have been rather dynamic in recent years and raise the question of what the nature of US and Mexican cattle and beef trade will be in the future.

Looking ahead, the rate of Mexican cattle exports to the US have dropped so far in 2013 after a sharp decline in late 2012 and seem to be on track to decrease by more than 40 per cent this year – possibly even more.

Mexican herd liquidation in recent years is likely to mean diminished beef production in Mexico and diminished levels of cattle exports to the US for several years, according to Dr Peel.

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This Week's Articles and Analysis

High Pressure Processing and Gel Properties of Salt-soluble Meat Protein
High pressure processing could be used to help develop low-fat and sodium-reduced meat products, according to research from Hefei University of Technology.

Sustainability of Healthy and Unhealthy Diets
Healthier diets are not necessarily more sustainable than unhealthy diets according to a French study.

Food Chain Information to Help Safety in Slaughterhouses
The UK Food Standards Agency is to carry out a risk analysis for each species in the meat sector to account for differing production and marketing systems to help boost food safety.

Consumer Beef Choice Associated with Country of Origin, Finishing Diet and Price
The origin of beef is the most important driver for choice followed by animal feed and price, according to a study from research teams in Spain and Uruguay.

Improving Beef Shoulder Muscle Tenderness in Hanging
Alternative pre-rigor foreshank positioning can improve beef shoulder muscle tenderness according to research from West Texas A&M University.

Company News

Zoetis Becomes Fully Independent
US - Zoetis Inc., the former animal health business of Pfizer Inc., has opened a new chapter in the company’s history this week, marking its separation from Pfizer and establishment as a fully independent company.
Pork Quality Matters – Going Global
GLOBAL - Pork is a global business. Rising demand and production capacity in developing markets such as China means that global trade in pork and pork products has never been higher, writes the Zoetis technical team.
Meyn Delivers 100th Jet Stream Scalder to Wiesenhof Holte
GERMANY - Since its introduction three years ago, the 100th Meyn jet stream scalder has been delivered to German poultry processor Wiesenhof Holte (part of the PHW Gruppe).
Market Reports

USDA Poultry Slaughter - June 2013
USDA GAIN: Russia Fish and Seafood Production and Trade Update
Portland Fish Exchange Prices - 20 June 2013
USDA Livestock Slaughter - June 2013
UK Slaughter Statistics - June 2013
Portland Fish Exchange Prices - 19 June 2013
USDA National Dairy Products Sales Report - 20 June 2013

Global Meat Industry News

   European Union

EU Pig Prices on the Rise Throughout Europe
Europe: Hog Markets
French Sausage Given PGI Status
Clearer Labelling for EU Fish Products


Pork Consumption and Production in China, the US
FAO Meeting Discusses Water and Food Security
FAO Statistical Yearbook Paints Picture of Food, Agriculture
Tough Times for Meat Companies


Govt Says Chinese Market is Open to US Pork
Ministries Move on Dairy Product Safety
Short-Circuit Caused Poultry Plant Fire
Gene-sensing Found to Aid Pathogen Detection
Shuanghui Gets $7.9b Loan for Smithfield Acquisition
Chinese Beef Imports Maintain Pace
Mengniu Announces General Offer for Yashili

   United States

Food Safety Effects of Plant Compounds Studied
CME: Cattle on Feed and Cold Storage Down
Economists: Second US Farm Bill Extension Seems Inevitable
Tougher Action Recommended on Plants Repeating Violations
Allen Foods Outlines Plans for Millsboro Plant
FDA Launches New Initiative on Egg Safety
CME: Livestock Futures Lower Thursday Due to Dollar Surge
Seminar to Highlight Project Management Solutions
House of Representatives Blocks Farm Bill
NFU Priorities for Amendments to Farm Bill
Butterball Expands in Montgomery
FSIS Reports on Salmonella Verification at Selected Plants
Food, Agribusiness Executives Explore Food Security
New Chairman Elected for USAPEEC
Smithfield CEO to Make $46.6m from Shuanghui Deal
Sandridge Foods Acquires RMH Foods
CME: Cattle on Feed Expected to Bring Lower Numbers as Futures Lift, Wednesday

   United Kingdom

Pig Industry Confidence Survey Reveals Mixed Prospects
Report Highlights Possibilities for Plastics from the Meat Industry
UK Government Launches Traffic Light Nutrition Labelling
Supply Chain to Work Together to Secure Future of British Beef
Young's Seafood to Use New Nutrition Label


Genetic Variation Impacts Vitamin B12 in Milk
AgriVision 2013: Creating a Successful Strategy


Study Points to One Health Approach to Salmonella Control
Canadian Beef and Pork Consumption Rise
Lake Erie Multi-species Fishery Enters MSC Assessment


Changes in US-Mexican Cattle and Beef Trade
Mexico Has Global Influence Due to US Ties
Prospects for Mexican Beef Market


Ukraine Opens Doors to Brazilian Pork
Transition Period Widens Fed Cattle Price Range
BRF Announces Final Exchange Offers
BRF Opens Research Centre in São Paulo


European Poultry Meat Producers to Meet in Valencia


Eat More Than Two Fatty Fish Meals Per Week
Pregnant Women and Children Should Eat More Seafood


Irish Poultry Producers Protest over Prices


Westfleisch Sales and Production Rise


Cattle Prices Require More Indonesian Interest


Registration for IPC Conference in Geneva


Global Poultry Trends 2011


Meyn - Poultry Processing Solutions




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