Grain Prices
Grain: CBOT, 15 Dec 2009, 0656:45 hr CST, USD/bu Corn: Mar 10- 4.054; May 10- 4.16; Jl 10- 4.252 Soybeans: Jan 10- 10.52; Mar 10- 10.58; May 10- 10.63; Jl 10- 10.666 Wheat: Mar 10- 5.382; May 10- 5.516; Jl 10- 5.61 Soybean meal (USD/short ton): Jan 10- 314.90; Mar 10- 311.00; May 10- 308.80; Jl 10- 309.40
NOTE:
It is estimated that because of the bad weather in the US Midwest, some
0.5 billion bushels of grain will remain unharvested until Spring 2010.
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WTO Panels

The WTO has in the past four weeks agreed to set up two panels under the Dispute Settlement Body in accord with Article 9.1 of the Dispute Settlement Understanding:
i)
To rule on whether the US COOL (Country of Origin Labeling) violates internatonal trade agreements.
This was in response to allegations by Canada that COOL legislation in the USA has caused damage to Canadian meat exporters since US processors have refused to handle Canadian meats because of the label requirements. Canadian beef exports to the USA for the first six months of 2009 have fallen by 34% compared to the same period for 2008 and have led to gluts and falling prices in Canada.
ii) To investigate the EU decades long ban on US poultry carcasses treated with pathogen reduction treatments (PRT) containing chlorides, phosphates and peroxy-acids. The USA have argued that this EU action violates the provisions of the SPS Agreement, the Agriculture Agreement, GATT 1994 and the TBT Agreement.
The rulings are expected in mid-2010. These rulings are not legally binding but they do pave the way for affected economies to take appropriate countervailing measures.
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Equipment
 Meyn Equipment have introduced a new whole leg deboner (WLD) that semi-automatically processes right and left whole legs with or without skin at 3000 legs per hour.
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Poultry HealthTaiwan: Taiwanese authorities have culled 9000 ducks after tests showed dioxin levels 5X allowable levels (2-5 picograms per gram). The dioxin came from water in a pond contaminated with slag and tailings from a nearby steel furnace.
European Commission: The EC has adopted a 275 million pounds Sterling package (Prevention is Better than Cure) to support programmes to eradicate, control and monitor animal diseases in 2010. Included in the package will be programms to deal in poultry with Salmonella, LPAI and HPAI
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Human Health
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There has been much controversy regarding the use of nitrates and nitrites in processed meat products. These are normally added to retard rancidity and to inhibit the growth of Clostridium botulinum.
Michaud et al. (Imperial College, London & Harvard University)have published a recent study that shows that increased intakes of nitrates and nitrites from meats, fruits and vegetables do not increase the incidence of brain tumours called gliomas. Earlier studies by the National Health and Nutritional Examination Survey (NHANES, USA) had suggested that increased consumption of nitrites could increase the risk of lung disease. The new study by Michaud et al. did not support this.
D.S. Michaud et al. (2009). Prospective Study of Meat Intake and Dietary Nitrates, Nitrites, and Nitrosamines and the Risk of Adult Glioma. Am. J. of Clinical Nutrition 90 (3) pp. 570-577.
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Sustainability Round Table
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A Sustainability Round Table held in London, England in September 2009
involving leaders from agriculture, industry, government and the financial
sector has concluded that even without climate change, by 2050, the
agricultural and agro-industrial sectors will have to double food production
with less water, less fuel and less land. Inputs will have to be minimised,
waste reduced while simultaneously maintaining or increasing outputs.
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From the Executive Director:
As this edition of 'Things to Crow About' goes to Press, COP 15 is taking place in Copenhagen, Denmark.
This meeting otherwise known as the Conference of the Parties (COP) or the UN Climate Change Conference 2009 is the 15th meeting of the 192 nations of the world on the subject. The COP 15 takes place over a period of two weeks in an attempt to find possible agreement amongst all nations on slowing global warming and reducing Green House Gas (GHG) emissions. Nations face the invidious dilemma at this and similar meetings of the dual challenge of balancing environmental issues with economic growth and social well-being.While there is general agreement on
the scientific evidence that supports global warming, there is no
consensus on the role of Man in the process. Is it that we are in the
midst of a normal planetary cycle or is the warming attributable
primarily to Man's activities?Whatever the answers, there is evidence to support the view that agriculture is a significant contributor to GHG emissions. The carbon footprint of agriculture is felt to be high with livestock being particularly significant. In a November 2009 study entitled The Health Benefits of Tackling Climate Change, the Lancet (UK) stated:
"Agriculture and food production contributes 10-12% to GHG emissions livestock farming accounts for 80% of this eating less meat and dairy products could reduce effects of climate change and have great benefits to cardio-vascular health."The widely-cited 2006 FAO Report Livestock's Long Shadow had earlier stated that, livestock-related activities contribute 18% 0f GHG emissions. A World Watch November 2009 report Livestock and Climate Change by Goodland & Anhang proposed much higher emissions.In recognising that there are synergies and tensions in the food supply chain between the Public Health, nutritional well-being, the environment, economic stability and social equality, the CPA takes the position that agriculture and related industries in our region and in the world contribute significantly to the nutritional, social and economic well-being of the communities they serve.
The region's poultry industry has worked assiduously over the last forty years to reach the present position of being technologically progressive, providing more than 95% self sufficiency in poultry meats, evolving to become the largest agro-industrial enterprise in the region, contributing in a major way to our regional economies, supplying >60% of the protein requirements of our people and providing an increasing range of competitively-priced nutritional products.We have already stated in our first edition of this Newsletter Vol 1 (1), the results of the Cranfield Study done in England which showed that of all livestock industries, poultry has the smallest carbon footprint. Whether there is an agreement or not in Copenhagen, whether numerical targets on reducing GHG emissions are achieved or not, it is clear that all Man's activities will in the future be influenced by the ongoing debates and discussions. The high levels of public awareness will influence public policy. In developing such policy, we urge policy makers to be aware of the balance between maintaining the present high levels of food security which the poultry industry provides and an environmentally-effective regulatory framework.In the meantime, the CPA will continue to invest in cutting edge technology which reduces the carbon footprint of our industry and improves our competitive position. Witness, for instance, our huge investments in tunnel-ventilated housing which inter alia have reduced feed conversion ratios from >2.0 to below 1.75. In addition, our many investments in waste rendering have considerably reduced our waste emissions and added to protein recovery. Tunnel-Ventilated Housing In the future, the Caribbean Poultry industry will have to continue increasing production to meet the many nutritional demands of our Caribbean peoples and the needs of our growing populations. The industry has in the past shown its ability and capacity to rise to the challenge. We are confident of our ability to continue to satisfy the needs of our people with safe, satisfying and competitively-priced meats and protein products while simultaneously meeting our commitments to sustainability and corporate and social responsibility.The Caribbean poultry industry reiterates its commitment to work with our Governments and our communities in designing and developing the necessary and appropriate fiscal and regulatory instruments to improve sustainability and a climate-resilient future.
We also urge our negotiators on the world stage to take the robust position that in recognising the need for an internationally-coordinated strategy, we as latecomers to industrialisation must not be placed at a technological and competitive disadvantage to the developed economies.
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Climate Change and Food Production:
In a recently-released (30 September 2009) report done for the World Bank and the Asian Development Bank, the International Food Policy Research Institute (IFPRI) claims that food prices could triple by 2050 as the climate changes. Even with no climate change but with increasing demands for food and changing dietary habits, food prices will show increases of 40% for wheat and 60% for rice and maize . With expected climate changes, prices could rise by 170-194% for wheat, by 113-121% for rice and 148-153% for maize. Per capita calorie availability in developing countries will decline with a 20% increase in child malnutrition. All figures use the year 2000 as the baseline.
Climate Change : Impact on Agriculture and Costs
of Adaptation:
www.ifpri.org/publication/climate-change-impact-agriculture-nd-costs-adaptation
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World Wildlife Fund
The World Wildlife Fund has released a report calling on the UK Government to take an active role in reducing meat consumption to enable the UK to meet international emissions targets.
The suggested interventions include: Campaign directly to promote lower impact diets by encouraging people to consume less but better meat products
Encourage people to substitute lower impact livestock products
Introduce a maximum standard for the green house gases (GHG) intensity of all foods.
These measures could lead to greater consumption of poultry products (See Things to Crow About Vol 1 No. 1).
Livestock Consumption and Climate Change - A Framework for Dialogue. www.WWF.org. One Planet Food Programme.
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US National Academy of Science
In a 2009 report done for the US National Academy of Science, W. Schlenker & M. Roberts suggested that there will be non-linear effects of climate change on crop yields in the USA. Overall, there will be severe damage to US crop yields. Extreme heat during the growing season is critical to the outcomes. The threshold temperature for corn is 29ºC and for soybeans, it is 30ºC. Below the threshold, warmer temperatures are beneficial, above the threshold, damage can be huge. Predicted declines can begin as early as 2020 using even the slowest warming scenario. With the slowest warming scenario, declines of 30-46% can be expected by 2070-2099 and 63-82% with the fastest warming scenario. www.nationalacademies.org/publications/PNAS |
Waste Treatment
United Kingdom:The
UK's largest anaerobic digestion plant (total cost £20 million) has
been set up at the Selby Renewable Park with Government funding of £1.7
million to treat 165,000 tons of food waste per annum. The waste is
collected from a 50 mile radius from supermarkets, food processing
plants, caterers and local authorities. The plant will generate 8MW of
electricity, enough to power 10,800 homes and will save 20,000 tons of
carbon dioxide per annum. USA:
Researchers at the Univ. Georgia USA have started a project to recover
waste fat, oils and grease (FOG) from poultry processing waste streams
to make energy-dense fuels. This will upgrade FOG from USD0.30/gal to
USD2.00/gal. The poultry industry is increasingly looking
towards creating renewable products like adhesives, fuels, fertilisers
and plastics from poultry by-products. |
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