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TheMeatSite Newsletter - 27 June 2012

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Wednesday 27th June 2012
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Welcome to this week's newsletter

EDITORIAL: Will Integrated Supply Chain Bring Home the Bacon?

A new report into the British pig meat industry calls for an integrated pig meat supply chain.

The report says that at present pig producers and processors struggle to sell their products at a profit and utilise their production capacity.

This discourages productive investment and entrenches the UK pig industry's disadvantage compared to foreign competitors, the report says.

It also encourages a worsening of pay and conditions for the workforce, and undermines job security.

The report Bringing Home the Bacon from researchers from the University of Manchester Centre for Research on Socio-Cultural Change says the system is economically unnecessary because there is a better way, which delivers on broader economic and social objectives.

The more integrated and consolidated national models of the Danish and Dutch pig industry or the profitable in-house UK processing operations of Morrisons represent the alternative, which uses a higher proportion of British meat compared to the other major supermarkets.

The Morrisons model aligns the interests of firm, supply chain and society. Morrisons runs its vertically integrated processing plants at full capacity and proves the benefits of plant loading with demand stabilised. The firm increases margins, reduces transaction costs and controls quality. Society gains through reduced import dependence, stable employment and the capacity to address animal welfare and climate change.

The big three supermarkets cannot choose a better way as long as they are locked into their present business model through the demands of the stock market and their own mentality and practices. Therefore, much depends on whether government can and will play a constructive role in persuading firms to change their business models.

The report suggests that there should be tax incentives from the government to form integrated supply chains.

However, the researchers appear to bring their whole argument down to a cash and profit basis and overlook other inherent motivation for producing pigs.

Many pig producers might not wish to tie themselves lock, stock and barrel to a regime where they are beholden to one outlet. Many prefer the flexibility of the market and also do not wish to become involved in the chain after the farm although many will also welcome and benefit from a relationship with both processors and retailers.

Producers will also only invest if they can see they are going to get a good reward so any partnership or relationship will have to be beneficial to all parties.

The report believes that with full backing an integrated chain will improve profits, welfare and conditions, but many producers and processors will have to be persuaded.

Chris Harris



* This Week's Feature Articles

We have 5 new features this week:

Dynamic and Positive Climate for Beef
In the long term demand for beef globally is expected to be good, writes Chris Harris.
Robotic Deboning of Poultry Products
Researchers at the Georgia Tech Research Institute (GTRI) have developed a prototype system that uses advanced imaging technology and a robotic cutting arm to automatically debone chicken and other poultry products.
Antimicrobial Resistance of Campylobacter in Retail Chicken Livers
Campylobacter was found in 67 per cent of the 202 chicken livers and gizzards tested sampled. A high level of resistance among C. jejuni and C. coli isolates recovered was found against some of the 16 antimicrobials tested.
Quinolone Resistance Genes and Antibiotic Residues in Wastewater and Soil
Research from Beijing indicates that wastewater from pig farms may be a source of genes that could facilitate the spread of antibiotic resistance after examining wastewater from the farms and soil nearby.
Waveform and Voltage Settings in Electrical Waterbath Stunning
The waveforms required different amounts of current to achieve 90 per cent stunning, according to new research from Germany and the Netherlands. Results with alternating current indicating stun to kill and there was more wing–flapping, and female broilers obtained a significantly lower stunning current than the males.
* Market Reports

 » UK Slaughter Statistics - June 2012
 » May 2012 Catfish Feed Deliveries Up 27 Percent from Last Year
 » Catfish Processing Up 1 Percent from Last Year
 » Irish CSO Livestock Slaughterings - May 2012
 » USDA International Meat Review - 21 June 2012
 » BPEX Export Bulletin – Week 25
 » AHDB European Market Survey - 22 June 2012
 » AHDB UK Market Survey - 22 June 2012
 » Irish CSO - Output, Input and Income in Agriculture
 » USDA Poultry Slaughter: Ready-to-Cook Weight Up 1 Percent
 » USDA International Egg and Poultry: US Egg and Egg Product Exports

* Company News

KEE Group Installs High Pressure Pasteurisation
TAIWAN - The opening of Taiwan's KEE Fresh & Safe Foodtech Co., Ltd. (KFS), gives food processors in the Asia-Pacific region convenient access to a technology that enhances product shelf-life and safety while responding to consumer demands for fresh and healthful foods.
* Global Meat Industry News

   Ireland

 » Govt Urged to Speed Up Aquaculture Licensing
 » Producing Quality Beef from the Suckler Herd
 » Sustainability Development Programme for Irish Food
 » Value of Irish Agriculture Rises TheMeatSite.com Online Book Shop
   United States

 » ConAgra Hits Back at Kosher Law Suit
 » National Beef Fined $32,500 for GIPSA Breeches
 » Animal Organisations Applaud Egg Bill Rejection
 » WPX Sets Records for Junior National Show
 » CME: Increase in Number of Cattle Placed on Feed
 » Increased Trade with Russia will Benefit US Farmers
 » Meat Without Drugs Campaign Launched
 » Energy Efficient Lighting for Cargill Plant
 » Pension Changes Hit Conagra's Accounts
 » Senate Passes Farm Bill
 » CME: A Glimpse into Livestock Slaughter Stats
 » Legislation to Prohibit Extreme Confinement Crates
 » US Meat Production on the Rise
 » US Dairy Prices Up
 » Antimicrobials Destroy Bacteria to Solve Resistance
 » Hog Count Falls Short; Plenty of Pork in Cold Storage
 » Weekly Roberts Market Report

   Brazil

 » BRF and Marfrig Asset Swap Completed
 » JBS Vigor Deal Goes Through
 » UBABEF Applauds Govt Decision at WTO
 » Brazilian Meat Production Ready for Decade of Growth
 » Drop in April Pork Export Volume and Value

   European Union

 » VION Reorganises Food Activities
 » EC Steps Up Action to Enforce Cage Ban
 » Risk Assessment of GM Animals
 » Fish Processors Welcome Market Vote
 » Call for Urgent Action for Europe’s Farmed Pigs
 » EU Pig Prices: Steady Price Levels throughout Europe
 » Auditors Organic Report - a Model for EU Regulation?

   United Kingdom

 » Sustainable Intensification to Weather Perfect Storm
 » Call for Priorities to be Supported in CAP Negotiations
 » British Pig Meat Goes to China
 » New Direction for Zoonoses Control Programme
 » NFUS Board Set for Supermarket Sweep
 » Bright Future for Scottish Red Meat Industry
 » NPA: EU Must Stand Together on Pig Welfare
 » Cattle Slaughterings Fall
 » Report Calls for Integrated Pig Meat Supply Chain
 » Signet to Take Ultrasound to New Level

   Global

 » Canada-South Korea End Beef Trade Row
 » Commissioner Calls for Sustainable Agriculture
 » Chile-China Trade Agreements Signed

   China

 » China Spots 15,000 Illegal Food Cases
 » Tianli Agritech Announces New Retail Strategy
 » Pig Prices Rebound After Govt Increases Reserves
 » China Farm Produce Prices Still Rising

   Australia

 » Workers Strike at Meat JBS Plant
 » Cattle Slaughter to Rise Over Next Two Years
 » Pay Talks Continue at JBS Queensland Plant
 » Free Range Egg Production in South Australia

   Germany

 » New Dioxin Contamination in Eggs in Germany
 » Dioxins Discovered in More German Eggs

   Canada

 » Processors Welcome Trans-Pacific Partnership
 » Billions to Economy from Pork Production, Exports

   Korea, South

 » Celebrity Treatment for US Chilled Pork in Korea

   New Zealand

 » NZ Grass-fed Beef on Menu for Japan and Korea
 » No Decision Yet on Larger Chicken Cages
 » New Welfare Code for Poultry Expected Soon

   Guyana

 » Guyana Lifts Duty on Imported Chicken

   India

 » Africa Presents Business Opportunities for Indian Poultry
 » Prices of Poultry Products Likely to Rise Again

   France

 » Doux Family Fights to Save the Company
 » Farm Unions Backing Doux Farmers

   Viet Nam

 » More People Contract Pig Virus in North Viet Nam



That's all for this week!

Ed.
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