Pork Journal July/August 2013 by Primary Media

PJJulyAugust2013:PJJanFeb09 27/08/13 11:27 AM Page 1

Pork Journal

July/August 2013 Volume 35, Number 4

Novus Nutrition – building on a history of innvoation

PEDV outbreak in the US should mean stronger biosecurity guards

Frank Dunshea receives Nonruminant Animal Nutrition Award

APL holds on-line ‘Butchers Battle Plan’ Webinar A retrospective of the Australian pig industry. Part One PrintPost Approved PP243096/00002 ISSN 1032 3759

PJJulyAugust2013:PJJanFeb09 27/08/13 11:27 AM Page 2

DON’T DRIVE SALMONELLA ONTO YOUR FARM!

Virkon S OFTEN IMITATED - NEVER EQUALLED DuPont Virkon®S independently proven highly effective against over 10 Salmonella strains including S. typhimurium, S. enteritidis and Lienert Australia are the sole Australian Distributors of Antec Products. S. hadar For more information contact: Lienert Australia Pty Ltd 1 Gartrel Street, Roseworthy SA 5371 NSW Office: Ph: (08) 8524 8150 Durham Street, Forbes MSW 2871 Fax: (08) 8524 8001 Email: admin@lienerts.com.au Tel: (02) 6851 6200 Web: www.lienerts.com.au Fax: (02) 6851 6233

When feeding Wh enititcomes come s to to fe eding yyour o ur lilivestock, v estoc k, Efficiency Profit Efficien c y = Profit Lienert Australia L ienert Au stralia has has aa team team of of qualified qualified and and experienced experienced Nutritionists Nutritionists delivering delivering an an excellent excellentnutritional nutritionalservice service package designed designedto to help help you, you,look lookafter after this this vitally vitallyimportant important aspect aspect of of production. production. package Ou rNutritionists Nu tr i t i o n i stsbring b r i n ginnovation i n n o vat i o n&& experience exper i en ce to: to : Our FeeFormulation d Formulation • Feed Ingredien t usagbreakdown e breakdown • Ingredient usage Pelletefeed d fee&draw & ramaterial w materpurchasing ial purchasin g advise • Pelleted advise Feedinprograms g programand s anexpected d expectperformance ed performance • Feeding farm consultation • OnOn farm consultation

Li en er tAustralia A u str al i a: Lienert • Delivers Deliveron s ofarm n farm • Provides Providefeed s feeingredients, d ingredientadditives, s,additivesupplements s,supplemen&tsPremixes & Premixes • Offers Of fervaccines s vaccine&s husbandry & husbandproducts ry products

Supporting Su p p o r t in the g t h eLivestock Li v es t o c kIndusustry In d u s t r y f o rfor 40 40 yeayears rs r furtheinformation r informationon onour our Nutritional Nutritional sservices ervvices & & PrProduct oduct InfoInformation rmation ForFo further telephone 11800 800 6649 49 2231 31 telephone Lienert Australia,1 G artrell Street R oseworthy SA 5371 Lienert Australia, 1 Gartrell Street Roseworthy SA 5371

PJJulyAugust2013:PJJanFeb09 27/08/13 11:27 AM Page 3

Contents 6 MAIN FEATURE Novus Nutrition – building on a history of innovation Dan Meagher, President of Global Animal Nutrition Solutions at Novus International Inc was recently in Australia to meet with the Australian Novus team. Peter Bedwell spoke to him and Nick Nettle, Sales Director for Novus in Australia and New Zealand about the company’s future directions. Mr Meagher was enthusiastic about the Australian market and how it had responded to the existing Novus range. Dan Meagher, Novus International Inc

Pork Journal July/August 2013 Volume 35, Number 4 Editorial Enquiries Peter Bedwell or Rosemary Embery 02 4322 0799 or 0419 235 288 Staff: Editor/Ad Sales: Peter Bedwell Ph: (02) 4322 0799 Mob: 0419 235 288 Production: Rosemary Embery Email: rembery@iinet.net.au Mob: 0409 944 472 Journalist: Alex Bedwell Mob: 0478 647 798 Website: www.primarymedia.com.au PORK JOURNAL consists of a bi-monthly management magazine and an annual industry review. Published by C D Supplies Pty Ltd (ACN 091 560 557)

OFFICE ADDRESS: 22 George St, East Gosford NSW 2250 Ph: 02 4322 0799 Mob: 0419235288 SUBSCRIPTIONS: AUSTRALIA One year – $66.00*. Send payment and full details to: Pork Journal, GPO Box 1846, Sydney NSW 2001 Phone (02) 9492 7386 Fax: (02) 9492 7310 NEW ZEALAND One year – $NZ80. OTHER COUNTRIES Asia Pacific including the Subcontinent – One year: Airmail – $A90; Rest of the World – One year: Airmail – $A90. Please send payment in Australian dollars. *Australia subscription rate includes GST.

CHANGE OF ADDRESS: Send details to: GPO Box 1846, Sydney NSW 2001, Fax: (02) 9492 7310 (Subscriptions only). ALL MATERIAL COPYRIGHT (editorial and advertisements) and may not be reproduced without the written consent of the publishers. Whilst every care is taken to ensure the accuracy of the contents of PORK JOURNAL, the publishers do not accept any responsibility or liability for the material herein.

10 HEALTH FEATURE PEDV outbreak in the US should mean stronger biosecurity guards Darryl D’Souza from APL looks at how developments surrounding the PED virus continues to cause consternation in the United States with producers and regulators at a loss to explain and control the outbreak. He says PEDV is just one example of the unknown biosecrity risk confronting our pork industry and more widely other livestock industries in Australia.

18 SPECIAL FEATURE A retrospective of the Australian pig industry. Part One Jim Berting looks back at his more than 50 years involvment in the Australian pig industry. He arrived in Australia in 1966 and saw the local industry from a newcomer’s perspective. From previous experience with the UK and European pig industries over some years, he had seen how, around the world, pig producers and their pigs adapt to local circumstances of climate, food sources and consumer demand.

NEWS 4 Frank Dunshea receives Nonruminant Animal Nutrition Award Frank Dunshea, PhD, an expert on swine nutrition, was recently recognised for his professional achievements by the American Society of Animal Science (ASAS) and the American Feed Industry Association. 14 Porcine Epidemic Diarrhea Virus continues to spread across the United States Porcine epidemic diarrhea virus (PEDV) continues to spread across the US throughout 16 states. Herd loss may affect pork production as countless pigs – most suckling and early-weaned pigs – die from the gastrointestinal disease. 16 APL holds live on-line ‘Butcher’s Battle Plan’ Webinar On August 13 from 7pm to 7.45pm Australian Pork Limited (APL) held a live on-line seminar – the Butcher’s Battle Plan Webinar. The national event covered vital issues including an APL overview, an independent retail channel performance update covering percentage share of trading when compared to supermarkets and consumer research and results to assist with keeping up with the modern day customer. 17 UK retailers edging towards next food scandal National Pig Association (UK) is worried that the foundations for the next food scandal are already being laid by some retailers as they edge away from the shorter supply chains they promised following Horsegate.

PRODUCT NEWS 12 NaturClean bedding conditioner out absorbs leading competitors

PORK JOURNAL, July/August 2013 3

PJJulyAugust2013:PJJanFeb09 27/08/13 11:27 AM Page 4

NEWS Frank Dunshea receives Nonruminant Animal Nutrition Award Frank Dunshea, PhD, an expert on swine nutrition, was recently recognised for his professional achievements by the American Society of Animal Science (ASAS) and the American Feed Industry Association. Dr Dunshea, an animal scientist and professor, serves as Chair of Agriculture for the University of Melbourne, Australia. Dr Dunshea’s research in swine nutrition and metabolism has greatly impacted the industry, with many of his findings having been taken up by the swine industry. He has made important contributions on effects of metabolism modifiers on nutrient requirements, and has led the commercialisation of an immunocastration vaccine and conducted research on the impact of immunocastration on nutrient requirements. He also investigated nutritional means of manipulating growth and pork quality to reduce defects. Dr Dunshea has chaired the University of Melbourne’s agriculture department for six years. He also trained at La Trobe University, Melboure, Australia, and Cornell University, New York, before working as a government scientist (VIC DPI) for 17 years.

Dr Frank Dunshea (right) receives his award from Chad Risley.

New appointments at APL APL has announced that Robyn Terry has been appointed as the R&I Manager, Production Innovation. Ms Terry is a CRC PhD scholar (in her final few months) in Animal Sciences at the University of Adelaide, within the School of Animal and Veterinary Sciences. Her area of expertise is pig reproduction. Robyn will be working from Roseworthy until she makes the move to Canberra around the end of August. Following Emalyn Loudon’s departure to return back west to take up a position as Technical Services Manager with Westpork Pty Ltd, APL announced Imogene Gardiner as the R&I Manager, Technology Adoption. Ms Gardiner currently works for Pacific Ocean Enterprises. She has recently completed her Master’s Degree in Politics and Public Policy and Bachelor of Arts (International Communications), Macquarie University. A start date for Ms Gardiner is still to be confirmed.

PORK JOURNAL, July/August 2013

New appointment at APL, Robyn Terry

Dr Dunshea has published more than 500 journals, conference books and technical articles. His notable achievements include being awarded the Daniel McAlpine Outstanding Achievement Award for Innovation in Agricultural Research for his biomedical and functional foods research and being named the 2007 recipient of the Australian Minister of Agriculture’s prize for his role in reducing, replacing and refining the use of animals in research. He is also a Fellow of the Nutrition Society of Australia.The Nonruminant Animal Nutrition Award was presented to Dr Dunshea by Chad Risley, during the annual ASAS meeting in Indianapolis, Indiana. Mr Risley presented the award on behalf of AFIA.

To advertise in Pork Journal Magazine contact Peter Bedwell on 0419 235 288 or (02) 4322 0799. For rates go to www.primarymedia.com.au

PJJulyAugust2013:PJJanFeb09 27/08/13 11:27 AM Page 5

MORE OPTIONS TO BREATHE EASY.

No matter what challenge you face with Mycoplasma pneumonia, RespiSure ® gives you more program options for protection of your herd. RespiSure® One single shot (2 mL)

RespiSure® two shots (2 mL)

1 day old or 1 week old or 3 weeks

1 week old and 3 weeks

PJJulyAugust2013:PJJanFeb09 27/08/13 11:27 AM Page 6

Dan Meagher meets the Novus Australian team (LtoR) Jasmin Floyed, Nick Nettle, Dan Meagher, Kalyan Eda, Gunjan Vora and Heyley Deng.

Novus Nutrition – building on a history of innovation

By PETER BEDWELL “

ovus Nutrition is a great organisation to be a part of,” stated Nick Nettle, Sales Director for Novus in Australia and New Zealand.

PORK JOURNAL, July/August 2013

“Despite the highly competitive nature of animal nutrition product sales in Australia, we have grown and continue to bring new technology solutions to our customers and are confident that we can do even better in the future,” he added. Nick has had long experience supplying the Australian and New Zealand feed industries. He started his career with Cliff Thurley’s Agribusiness Group based in South Australia in the days when feed was a lot less expensive, and the market had not been flooded by imports. Also there were a lot more famers than there are today. When Provimi took over Agribusiness in 2001, Nick went along and worked with that group until Provimi left Australia and Nick joined Novus. “Having the support of a global enterprise like Novus has been a key factor in our success. The company developed

some of the world’s best nutrition products for growing intensive livestock when they were a division of US giant Monsanto. “When they were sold to Mitsui and Nippon Soda the investment in both R&D and marketing development continued with the result that even in competitive markets such as Australia the Novus name, reputation and focus on bringing sustainable technology to our clients, opens doors to farmers and feed suppliers who are almost always interested in what we have to say,” Nick said. “Our ability to develop product solutions and run trials in both the best and toughest markets for animal nutrition, delivers benefits for all regions including Australia and New Zealand. “However having the best products in the world counts for little if you can’t w deliver optimum service. Over the last

PJJulyAugust2013:PJJanFeb09 27/08/13 11:27 AM Page 7

Key Facts About Mycotoxins • There are approximately 500 known mycotoxins. • Interaction between toxins makes diagnosis difficult. • Long term exposure to low levels of mycotoxins in the diet can reduce pig performance.

Soak up mycotoxins

with the #1 mycotoxin sequestering agent Introd Mycosoucing for even rb A+ b protecƟroader on!

gets the job done!

Alltech Australia 64-70 Nissan Drive Dandenong South, VIC 3175 Tel: (03) 9767-2800 AlltechNaturally Alltech.com

@Alltech PJ.V427.08.13.AU

PJJulyAugust2013:PJJanFeb09 27/08/13 11:27 AM Page 8

v couple of years we have built up a team who work closely with our clients and really take their interests and problems to heart. We now have a close knit group of individuals with the varied skill set needed to meaningfully contribute to the sustainability of the farms and businesses who rely on our products,” Nick explained. “Improving grower efficiency is only one aspect of what we have to offer. Consumer expectations now include environmental issues, animal welfare, and, vital for both retailers and consumers, eating quality. “Novus now and into the future is aware of new demands and is working to address them with product solutions and appropriate advice. “Pressures created by animal welfare concerns, the need to continue to improve both meat quality and shelf life while achieving cost reductions are challenges Novus faces in working with producers to find sustainable solutions to their livestock operations,” he said. On August 17, Pork Journal met US based Dan Meagher, President of Global Animal Nutrition Solutions at Novus International Inc. who was visiting Australian to discuss future plans with members of the Sydney-based Novus team. Mr Meagher is responsible for the company’s Livestock Sales and Distribution Business Unit, which includes animal research and development, global sales, technology, marketing logistics and local manufacturing functions. Previously he was Vice President, The Americas for Novus and led the company’s diversification efforts to serve multiple market segments in the agriculture industry. He joined Novus in 2007 as World Area Director, North America.

Mr Meagher has held prominent roles within the agribusiness community for more than 25 years. Originally from St Louis, he holds two bachelor degrees in finance and accounting and serves on a number of boards. He was enthusiastic about the Australian market and how it responded to the existing Novus range as well as prospects for the future as new products become available. “The challenges are always to achieve more with less and be able to respond to commercial realities of livestock production whilst addressing consumer concerns over welfare and environmental issues,” Mr Meagher said. “Mintrex chelated trace minerals, for example, assist in improving sow health and achieving their genetic potential through better utilization. This also reduces the potential of minerals not absorbed by the animal to generate environmental problems”. “We operate in morethan 100 countries and what we learn about getting the best performance from basic feed stocks in one region often has significance for other markets. In the rapidly expanding African market, cassava is a critical resource and what we have learnt about using this crop in livestock feed could apply to other markets, now and into the future,”he said. “Our joint venture with Verenium, a San Diego based leading edge biotechnology company, focused on the development of high performance enzymes, was announced in June 2011 with the aim of commercialising a suite of new products that will result in benefits for our customers globally. It means that the new enzyme technology will only come from Novus.

Dan Meagher, President of Global Animal Nutrition Solutions at Novus International Inc on a recent visit to Sydney to meet the Australian team.

“Data is king when it comes to understanding digestible nutrients. The scale of our operations and long term investment in R&D enables Novus to supply our operations around the world, including Australia and New Zealand, with the information they need to assist growers in each of our markets,” Mr Meagher concluded.

NEWS UK: Sainsbury’s to use only British fresh pork All fresh pork in Sainsbury’s stores will be British from now on, the supermarket has said. The retailer will be sourcing 70% more pigs from Britain to guarantee all its fresh pork comes from British farms. Zoe Davies from the National Pig Association welcomed the announcement but called on Sainsbury’s to extend its commitment to bacon, and other large volume lines. “The National Pig Association is of course pleased by this important move, which strengthens Sainsbury’s commitment to buying British and shortening supply

PORK JOURNAL, July/August 2013

chains while giving their pork suppliers much needed confidence to invest in their businesses and secure future supply,” said Ms Davies. “Now all their fresh pork, ham and sausages are British, we look forward to working with Sainsbury’s to focus on large volume lines such as bacon.” The NFU also encouraged Sainsbury’s to extend the 100% British commitment to other lines. “This latest step to source 100% British pork across its fresh lines comes at a critical time,” said NFU Head of Food

Chain Deborah Cawood. “The move to strengthen partnerships with UK pig farmers is also a step in the right direction in securing longer term sustainability of UK produced food. “We hope that Sainsbury’s development in the poultry sector to roll out their UK commitment to processed foods including ready meals, pies and other products is matched across food ranges.” Sainsbury’s confirmed its commitment to British sourcing as part of its promise to double the amount of British food it sells by 2020.

PJJulyAugust2013:PJJanFeb09 27/08/13 11:28 AM Page 9

From BEC Feed solutions

Leave Nothing

Want more full value pigs? Want Many pigs fail to achieve their economic potential due to poor growth growth rates, rates, sickness or Many premature death. death. Elanco Animal Health’s Health’s range of quality feed additives help to produce premature by preventing disease and maximising performance performance throughout the more full value pigs by nursery, growing growing and finishing phases. For more information information about about how a customised nursery, program can maximise the profitability profitability of your herd, contact your veterinarian, health program www.elanco.com.au feedmill or Elanco on 1800 226 324 or visit www.elanco.com.au gonal colour bar are trademarks of Eli Lill y.EAH12007 Elanco® and the dia diagonal Lillyy and Compan Company.EAH12007

To Chance

PJJulyAugust2013:PJJanFeb09 27/08/13 11:28 AM Page 10

HEALTH FEATURE

PEDV outbreak in the US should mean stronger biosecurity guards By DARRYL D’SOUZA, PhD, GM Research & Innovation

n a previous article, I provided a summary of ‘issues’ around global developments in relation to Porcine Reproductive and Respiratory Syndrome (PRRS), Porcine Epidemic Diarrhea Virus (PEDV) and African Swine Fever (ASF). Since that article, development around PED continues to cause consternation in the United States (US), with producers and regulators at a loss to explain and control the outbreaks. As reported recently, PED is caused by a coronavirus. PED virus (PEDv) is a Transmissible Gastro-Enteritis (TGE) like virus affecting most age groups of pigs in susceptible herds. While the virus does not tend to kill older pigs, mortality among very young pigs infected can vary considerably, with 100% mortalities observed in some herds. When the disease is endemic, then diarrhoea is observed with lower morbidity in predominantly suckling and recently weaned pigs. The United States Department of Agriculture (USDA) first confirmed the PED virus (PEDV) on May 13, 2013 with four confirmed cases in sow herds (three in Iowa, one in Indiana). Based on findings reported on American Association of Swine Veterinarians (AASV) website (July 29, 2013), PED has now been confirmed in 14 states across the US (Colorado, Iowa, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, North Carolina, New York, Ohio, Oklahoma, Pennsylvania and South Dakota). PED was first diagnosed in Great Britain in 1971, with sporadic outbreaks in Europe but nothing major. PED has become an endemic pig disease in Asia since 1982. For the most part PED in Europe is seen as a minor impost to pig production, while in China PED is still regarded as a major pig disease.

PORK JOURNAL, July/August 2013

From a public health view point, PED only infects pigs. There are no other known hosts for this virus. Interestingly, PED is not a World Organization for Animal Health (OIE) reportable disease and the US National Pork Producers Council (NPPC), as expected, has been very vocal in stating that PED should not affect its export markets. However, following the first few outbreaks, Mexico announced restrictions on imports of live swine from the US. The Canadian swine industry is also on high alert and has called for diligence of all swine industry stakeholders. The hunt is well and truly on to find the origins of this PED outbreak in the US and and American Association of Swine Veterinarians (AASV), in collaboration with Pork Board, NPPC and USDA, have developed a survey to examine the epidemiology of the recent introduction of PEDV. The objective of the survey is to determine how the virus entered the US swine herd. While I am the first to admit that I have little knowledge of how the OIE classifies diseases as exotic/reportable, it would appear that PED is exotic to the US. In fact the first few sentences from the AASV website states that “The Porcine epidemic diarrhea virus (PEDV) didn’t just spontaneously evolve in Midwest swine herds. It was introduced into the US from somewhere. So, where did it come from?” So how did PED get into the US? As usual, the internet is full of suggestions and I hasten to add none of which have been substantiated. I will not try to document the various theories because quite frankly most have no substantiative basis and I would rather not have lawyers knock on my door. I am sure it is just a matter of time before the US authorities find the source and take

Darryl D’Souza from APL

measures to rectify the PED issue but in many ways the horse has already bolted. In hindsight, it’s easy for the NPPC to make statements like those reported in an article in the Meat New Daily website (10 April 2013) stating that “NPPC is urging US trade negotiators to ask New Zealand and Australia, which also imposes unscientific restrictions on US pork because of Porcine Reproductive and Respiratory Syndrome (PRRS), to remove all PRRSrelated restrictions and allow full and open access for US pork and pork products as a part of the Trans-Pacific Partnership negotiations”. I am not stating that the PED virus can enter Australia, via imported pork products, however PED is just one example of the unknown biosecurity risk confronting our pork industry and more widely other livestock industries in Australia. This outbreak of PED in the US strengthens the absolute need to maintain, and some would argue heighten, our biosecurity guard even with our current sanitary and phytosanitary standards. A quick note on ASF and that appears to be making news in Eastern Europe and has Western Europe on high alert. The French Directorate General of Food (DGAL) is the latest to come out and state that “the current situation is critical” referring to the number of continued ASF outbreaks in Eastern Europe.

PJJulyAugust2013:PJJanFeb09 27/08/13 11:28 AM Page 11

Feed costs too high?

This is just one of the challenges that Danisco Animal Nutrition can help you solve. When the pressure's on, turn to us. As leaders in delivering the greatest value from Axtra XB, Avizyme, Porzyme and Phyzyme XP feed enzymes and Betafin feed betaine, we are able to offer both the ingredients and expert knowledge to help keep your feed costs to a minimum.

Danisco Animal Nutrition - more profit from lower feed costs

To find out more please contact your local distributor Feedworks, Australia mal.mottram@feedworks.com.au Tel: 03 5429 2411 david.cadogan@feedworks.com.au www.feedworks.com.au

Danisco Animal Nutrition www.danisco.com/animalnutrition

Design s Engineering s Fabrication

SHELTERS 8, 10, 12, 13 & 15M Clearspan Configured to suit your requirements

FEEDERS 2 â&#x20AC;&#x201C; 8 tonne storage capcity Ideal for non-powered sites

LOAD OUT FACILITIES Ramps, round yards, shelters, yards

SILOS 4 â&#x20AC;&#x201C; 70 tonne

STRUCTURAL ENGINEERING

* %*%$ !* ** ) * %*%$ !* !!**!%$* " )(* #'&&# * '') * ' &* $ $

) *() &( ) (" () (#') ) " *** & ( #& * ) (" () (#') ) "

PORKâ&#x20AC;&#x2C6;JOURNAL,â&#x20AC;&#x2C6;July/Augustâ&#x20AC;&#x2C6;2013â&#x20AC;&#x2C6;â&#x20AC;&#x2C6;â&#x20AC;&#x2C6;â&#x20AC;&#x2C6;â&#x20AC;&#x2C6;â&#x20AC;&#x2C6;11

PJJulyAugust2013:PJJanFeb09 27/08/13 11:28 AM Page 12

PRODUCT NEWS NaturClean bedding conditioner out absorbs leading competitors NaturClean Ultra-absorbent bedding conditioner is manufactured from natural ingredients including dehydrated crystalised seaweed and essential oils. “NaturClean is vastly superior in absorbency to many competing products and can absorb up to 5 mls of liquid for every 10 grams of NaturClean,” said Michael Pritchard from Lienerts, Australian distributor for the product. “In tests NaturClean out absorbs all the competitors leading to longer drying, less product used and less frequent applications. This means lowering the cost in use of NaturClean to even below that of its least cost of competitors,” he said. “NaturClean has further benefits in that it reduces the levels of ammonia in the animal housing making it a better environment for both animals and personnel having to work in the same environment. “It can even be mixed with slurry to reduce the levels of ammonia quickly. In trials ammonia levels were reduced 95% in two hours. “Unlike mineral based products bedding products, NaturClean will not block up pipes and drains as it is soluble in manure and assists in breaking manure down. “NaturClean readily absorbs moisture. New born animals are wet from neonatal fluids and they can get cold very quickly, and a layer of NaturClean absorbs those fluids keeping young animals dry and warm and can prevent navels becoming infected by preventing contact with pen floors, feaces and dirt in bedding. “After microbiological trials carried out to meet the specific requirements of the APVMA here in Australia, NaturClean can now also claim to reduce bacteria levels whereever it is used thereby reducing pathogen challenges for animals and particularly young animals making NaturClean an essential management tool to get young animals off to a healthy start. “Safe for use with animals present and safe for the staff and environment, NaturClean is the ideal management aid for busy operations,” Mr Pritchard said. “With an application rate of 50 grams per sq meter two or three times per week, the benefits will be seen in the results almost straight away,” He concluded. Fiona Young and Tom Braun who own Myora Farm have said that NaturClean is an excellent management aid. It is available from all quality rural stores. The APVMA Approval Number is 65704 / 51633. For more information contact Lienert on 1800 629 231 for your nearest stockist.

PORK JOURNAL, July/August 2013

al ric Ag

* ize Al

s F n Plu lea o an s C r m lo tu Am Sta Na

ed ab e S

Above: Test results showing that Naturclean can absorb up to 5 mls of liquid for every 10 grams of NaturClean. *formerly Mistal. Below left: NaturClean helps keep new born piglets dry and free from infection. Below: The bedding conditioner is made from natural ingredients including dehydrated cystalised seaweed.

PJJulyAugust2013:PJJanFeb09 27/08/13 11:29 AM Page 13

NEWS Charoen Pokphand Foods buys major stake in RBPI Thai company Charoen Pokphand Foods Plc (CPF) will pay € 76.8 million for a 83% stake in Russia Baltic Pork Invest ASA (RBPI), a large-scale grain and pork producer in the European part of Russia, according to RBPI. Under the deal, CPF Investment Limited (CPFI), a subsidiary of CPF, will purchase the shares from Capman Russian Fund LP in the third quarter of this year. “The deal is part of CPF’s food expansion plans into Russia, where it already operates a feed mill and integrated swine businesses,” said President and CEO Adirek Sripratak. “The investment aims to serve a huge demand for meat in the country, at 2.75 million tonnes a year, while local production capacity remains low, leading to imports of some 750,000 tonnes of pork every year.” Adirek said the management team of RBPI is competent and he is confident the cooperation would help increase supply to meet the rising demand. The company projects that its new capacities in Russia will help it to improve operational performance. CPF projects sales this year to increase by 10-15%. Operations in 12 countries including Russia are expected to contribute 55% to revenue in 2013 thanks to aggressive investment expansion in recent years.

Jess Naylor joins Auspac Philip Lambeth has announced that Jess Naylor has joined the Auspac Ingredients team. Jess graduated from the University of New England in 2008 with a Bachelor of Rural Science (Hons). On completion of her degree, Jess began working for JBS Swift as a graduate based at Beef City Feedlot, Toowoomba. Through this program she gained exposure to many aspects of feedlot operations including feed milling, animal husbandry, animal health and nutrition. She also gained valuable experience working across several Swift feedlots, abattoirs and at the Brisbane head office. Jess has spent the past three years working for Suncorp Bank in both Agribusiness and Treasury departments, servicing clients from Regional NSW and QLD. Jess joins the AusPac Ingredients team as Regional Sales Manager – Northern Region. She can be contacted on 0439 195 993 or email: jess@auspacingredients.com.au

PORK JOURNAL, July/August 2013 13

PJJulyAugust2013:PJJanFeb09 27/08/13 11:29 AM Page 14

NEWS Porcine Epidemic Diarrhea Virus continues to spread across the United States Porcine epidemic diarrhea virus (PEDV) continues to spread across the US throughout 16 states. Herd loss may affect pork production as countless pigs – most suckling and early-weaned pigs – die from the gastrointestinal disease. Since the identification of the virus was confirmed in the United States May 17, more than 400 cases have been reported. A report prepared by the US Department of Agriculture Animal and Plant Health Inspection Service (USDAAPHIS), National Veterinary Service

Laboratories and the National Animal Health Laboratories Network indicates a jump in positive tests between the week of May 13 – with 10 cases contained to Iowa, Minnesota and Colorado – to 44 cases the week of May 20. The virus seemed to spread significantly in Iowa, increasing from four cases to 25. The virus also spread to Missouri and Oklahoma. Cases in suckling and nursery pigs became prevalent the week of June 16 with a high mortality rate of 30% to 100% in

We also supply complete feed mills designed for the small or large farmer so why not start milling your own grain today and benefit from the savings Need a new pencil or centreless auger we stock a large range of grain augering equipment at great prices

PORK JOURNAL, July/August 2013

early-weaned pigs in naï ve herds. “Nursery pigs, grow/finish pigs and adult animals experience a high rate of morbidity but low mortality with the virus,” says Harry Snelson, Director of Communications for the American Association of Swine Veterinarians. “Therefore, any potential impact on pork supply will be a number of months down the road.” The Iowa Pork Industry Center said PEDV is a coronavirus related to transmissible gastroenteritis virus (TGEV). The primary clinical sign in outbreaks that occur in previously naï ve herds is severe diarrhea in pigs of all ages. Clinical signs are essentially identical to those expected with acute TGEV infection. The Pork Industry Center says after the initial epidemic, PEDV usually becomes endemic. It is spread via the fecal-oral route with a short incubation period of 12 to 24 hours. The virus is shed for 7 to 10 days. “Once the virus is present in a naï ve herd it spreads very easily and you probably want it to spread quickly so all the animals get exposed and begin developing immunity,” Snelson says. Officials believe herd closure followed by 100% feedback exposure will be a successful herd elimination protocol. The virus is easily spread by trucks, boots and on clothing contaminated with fecal material from shedding pigs, but officials believe biosecurity measures found effective in containing TGEV will also be effective with PEDV. “Several virucidal disinfectants have been demonstrated to be effective to inactivate PEDV, such as formalin (1%), sodium carbonate (4% anhydrous), lipid solvents and strong iodophors (1%) in phosphoric acid,” says the Iowa Pork Industry Center on its PEDV factsheet. “Examples of disinfectants effective against PEDV include Clorox, Virkon S, Stroke Environ and Tek-Tol.” The organisation says sanitising and drying or heating pig trailers is also effective against PEDV. Temperatures above 150 degrees F for more than 10 minutes will inactivate the virus. Snelson says sanitation and biosecurity measures are essential to prevent the spread of the virus by people – specifically transport vehicle personnel. “PEDV does not affect people – pigs are the only known host. It is not a foodsafety concern. The virus is not a traderestrictive disease and has been present in many countries such as Great Britain and Asia for decades.”

PJJulyAugust2013:PJJanFeb09 27/08/13 11:29 AM Page 15

NEWS Zoetis combats PED virus Zoetis has affirmed its commitment to finding a solution to help control the recent outbreak of Porcine Epidemic Diarrhea virus (PED virus). The devastating, costly virus has been positively identified in 17 states since April. “As a veterinarian, I am committed to finding a solution, including quick-yielding diagnostic tools and efficacious vaccines, that can control this devastating virus,” said Michael Senn, DVM, MS, manager, Pork Technical Services, Zoetis. “We are drawing upon our global research and development resources as well as working with health authorities and veterinary centers of excellence worldwide to identify effective solutions and help the pork industry achieve results.” Zoetis is supporting University of Minnesota researchers to develop a rapid PED virus diagnostic test. “Helping fund the development of the rapid diagnostic tool is just one way we are investing in and finding a solution against this virus,” said Gloria Basse, Vice President, US Pork Business Unit, Zoetis. “We believe that diagnostic tools and vaccines are part of the solution equation. Our research and development teams will continue to collaborate with our university and industry partners until this disease is controlled.” PED virus, similar to transmissible gastroenteritis (TGE), can cause devastating losses up to 100% in infected piglets up to 3 weeks of age. Weaned pigs and adult pigs are at less severe risk, but they can suffer reduced growth rates. The virus spreads rapidly through a herd via fecaloral contamination and infects pigs within 12 to 36 hours. “While we continue our efforts to determine the best solution to PED virus, it’s important that producers remain vigilant to their herd’s health and contact their veterinarian if they suspect abnormalities,” Dr Senn said. “Producers should heighten their biosecurity awareness. This outbreak serves as a good reminder to review biosecurity practices with your employees, truckers and consultants who have regular contact with your farm. “Dr Senn suggests these biosecurity practices shared by the American Association of Swine Veterinarians: • Label and use chutes for loading and unloading. Use the loading chute only for animals that are leaving your farm. Healthy animals unloaded using the loading chute could be exposed to the virus. • Wash and disinfect all unloading chutes and driver areas as often as possible. Use a 2% phenol-based disinfectant in the areas where drivers walk to enter the chute, from point of entry to the top and all areas where the chute contacts the truck. • Require that all trailers used to pick up animals be cleaned and disinfected before arrival. Be sure to allow enough time for the disinfectant to dry before use. • Provide coveralls and boots for employees to wear while on the farm. These materials should stay on-site and be washed routinely. • If your farm allows guests, provide clear direction for where they should report upon arrival. Also, provide them with coveralls and boots before they enter any facilities.

LR POSITIONAL

Bounce back better with

- Unique liquid electrolyte and energy boost for weaner pigs - Rehydrates stressed pigs, acidifies drinking water, provides critical nutrients Ð- Required for only 1-2 days Ð- Administered directly via doser - no mixing!

For more information freecall 1800 426 142 PORK JOURNAL, July/August 2013 15

PJJulyAugust2013:PJJanFeb09 27/08/13 11:29 AM Page 16

NEWS APL holds live on-line ‘Butcher’s Battle Plan’ Webinar sales to Woolies, Coles and Aldi and that consumers had purchased slightly less than last year but were shopping more frequently and putting less meat in the freezer. “Why are butchers loosing sales?” he asked. “Fewer people are coming through their doors. Butchers have lost 1 in 6 of their customers as the supermarkets continue to step up their gain. “This is a retailer problem, not a promotional issue,” Mr Haydon stated. “People still love butchers, the quality they offer along with personalised advice, but the enemy for butchers is the convenience the supermarkets offer. “A strategy to lessen this trend could be better communications with customers through phone, text, emails and delivery service,” he suggested. “Other options that mimicked supermarket strategy included ‘pick and go’ for stable items and ‘vac pac’ to extend shelf life. “Seven out of 10 Coles and Woolies shoppers own and use a loyalty card. If coffee shops can run loyalty schemes how hard would it be for butchers to do the same,” he commented. “Many customers shop for five days meat supply, consider offering significant

X I N RI

MYCOFI X

NAG EM

More protective. Mycotoxins decrease performance and interfere with the health status of your animals. Ï¹ÅŰÎ is the solution for mycotoxin risk management. ®

BIOMIN Australia Pty Ltd, PO Box 2344, Carlingford NSW 2118, Tel: 02-9872 6324, Ã·¿ÂƓ Åů¹»Ɣ·ËÉÊÈ·Â¿·ʤ¸¿ÅÃ¿ÄƔÄ»Ê

ÃÏ¹ÅŰÎƔ¸¿ÅÃ¿ÄƔÄ»Ê

Naturally ahead

16 PORK JOURNAL, July/August 2013

discounts for the final day’s meal. “Packaging meat for consumer appeal and convenience has been a strength of supermarkets meat sale strategy. Retail butchers can help customers with packaging that helps them store meat in the freezer so they can easily identify it by species and number of serves,” he suggested. Terry Edgar returned to present some practical ideas derived from a small research group and their ideas which had produced some very significant results including the following. “The first case study introduced by Terry was Robbie Bertram from Swan Valley WA who introduced a range of ready made pizzas into his shop that are supplied by a manufacture ready for sale. “The six varieties, sold in two sizes, delivers a profit of $4 to $5 a sale and the volume has reached 100 items a week. “Not only does this add a handy figure to the shop’s bottom line, it introduces new customers to the business,” Terry reported. Butchers and their businesses are a vital component of the overall pork sector. Not only are they a valuable channel to supply consumers with both product and advice, their survival and success in a fiercely competitive retail environment ensures a more competitive market for suppliers. Everyone in the business should invest 45 minutes to take in the webinar – a novel way of communicating in a very traditional industry.

Mycofix

MYCO

On August 13 from 7pm to 7.45pm Australian Pork Limited (APL) held a live on-line seminar – the Butcher’s Battle Plan Webinar. The national event covered vital issues including an APL overview, an independent retail channel performance update covering percentage share of trading when compared to supermarkets and consumer research and results to assist with keeping up with the modern day customer. Though registered to participate, Pork Journal, thanks to problems with our NBN connection (if you’ve statistically got NBN you can’t have ADSL, so we have neither!) and our wireless modem was not up to the task of maintaining a link. Fortunately for both Pork Journal and those interested in butchers’ relationship with pork there is a 45 minute You-Tube of the event at youtu.be/F71muW5ruz4 Terry Edgar, who runs the Butcher’s Battle Plan initiative for APL, introduced the Webinar by stating that the on-line approach of the Webinar recognised the pressures on retail butchers time and availability. Peter Haydon, APL’s Marketing Manager started his presentation with the sobering fact that, “independent retail butchers had lost 2% share of fresh meat

Selko Feed Additives takes on new MD Nutreco’s Business Unit Selko, a global leader in feed additives, announced that Martijn Adorf recently joined as their new Managing Director. In his new role Martijn will be leading the growth of the global Nutreco feed additives business as part of the strategic objectives of Nutreco to have a higher added value portfolio of nutritional specialties and solutions. This is part of the Nutreco Ambition 2016 and is based on the global developments in agriculture and aquaculture in combination with Nutreco’s position and capabilities.

PJJulyAugust2013:PJJanFeb09 27/08/13 11:29 AM Page 17

NEWS UK retailers edging towards next food scandal National Pig Association (UK) is worried that the foundations for the next food scandal are already being laid by some retailers as they edge away from the shorter supply chains they promised following Horsegate. NPA has noted a number of pork, bacon and gammon lines being switched back to imported product, because it is marginally cheaper. It is not naming the retailers concerned until it has had meetings with them to find out their reasons for retreating from their post-Horsegate

promises to introduce short supply chains. Since the heat has come off the horsemeat scandal we’ve started to see retailers sliding back from the strong British position they publicly adopted, and import more European product,” said NPA general manager Dr Zoe Davies. “Consumers expect supermarkets to deliver on their post-Horsegate commitments to shorten their supply chains by buying safe food produced in Britain.

If they think they can return to their old habits as soon as our backs are turned they had better think again, because we won’t let this matter drop and nor will our friends in the National Farmers Union.” Britain imports around 60 percent of its pork and pork products and NPA believes this could be reduced if all retailers were genuinely committed to building shorter supply chain agreements with British producers.

Meriden announces Scientific Symposium Meriden Animal Health, in association with Cranfield University, is planning a scientific symposium for July 23-25, 2014. The title of the symposium is ‘Healthy Animals, Healthy People - Natural intervention strategies to enhance food safety through healthy animals’. The symposium will investigate and discuss the current concerns around food safety and the available means for natural prevention. International speakers are being carefully selected and will be announced in the coming months. Key customers of a scientific nature from around the world will be invited to join in and contribute to the high level discussions around the subject. The three day event will be held at Cranfield University and will be followed by a Gala dinner at the historic Woburn Abbey.

™

KEMZYME MAKES EVERYTHING FIT. For years, animal nutritionists have trusted Kemzyme to maximize the digestion of a wide variety of substrates. That’s even more critical today when high and volatile feed costs make flexibility critical to maintaining a costeffective feed formulation. When you use Kemzyme, you know you have chosen a complete solution for complex substrates that ensures cost and performance fit together.

To learn more about our complete solutions for complex substrates, contact your local sales representative or visit www.kemin.com.

PORK JOURNAL, July/August 2013 17

PJJulyAugust2013:PJJanFeb09 27/08/13 11:29 AM Page 18

SPECIAL FEATURE A retrospective of the Australian pig industry. Part One By JIM BERTING BSc (Agric) Arriving in Australia in 1966 I saw the local industry from a newcomer’s perspective. From previous experience with the UK and European pig industries over some years, I had seen how, around the world, pig producers and their pigs adapt to local circumstances of climate, food sources and consumer demand. In the UK, pig-raising was changing rapidly into planned operations following the recent publication of the book Profitable Pig Production by RF Johnson. He observed that timed breeding and regular production was possible by weaning litters on a Thursday and joining the sows the following week, with supervised matings. That was the beginning of the routine that is followed today. Hitherto, sows had been weaned when the piglets reached a certain age, generally eight weeks, and the timing of re-mating was left to the sows. Production was quite haphazard. The pigs ran the producer rather than the reverse. At the same time, growing out (fattening) pigs to market in so-

MANURE SPREADERS

SPREADER SIZES: 6-40 TONNES • HEAVY DUTY DESIGN AND CONSTRUCTION • IDEAL FOR ALL TYPES OF MANURE & COMPOST • WILL ALSO SPREAD LIME & GYPSUM • EMPTY LESS THAN 4 MINS • AN EVEN SPREAD WIDTH UP TO 24 METRES

AXON

Mobile.......0428 637 717 Phone.....(02) 9974 2704 Fax..........(02) 9974 2705

www.axonmachinery.com.au

PORK JOURNAL, July/August 2013

called Danish type sheds was becoming popular. The Danish layout was originally designed for keeping the pigs warm in winter and cool in summer, by housing them indoors with winter hay or straw storage overhead – insulation. To achieve this, pens were arranged in two rows either side of a central access and feeding passage with watering and dunging encouraged in passages on either side of the shed. The principle was hugely misunderstood in the UK and later also in Australia. The key was the hay/straw-loft, but many piggeries were built in the belief that, for ease of operation, the central and side passages were what mattered. Consequently many quite unsuitable examples were built, draughty structures of unlined corrugated iron housing poorly-performing, chilled and uncomfortable pigs. In the early 1960s this grower shed design was also widely adopted for the adaptation of insulated poultry sheds into piggeries following the collapse of the UK broiler chicken industry. Those newcomers to pig production soon found that littering the side passage with straw made daily cleaning very laborious. The next step was omitting the straw and removing the waste as slurry, with a squeegee. Soon new piggeries were built with slatted dung passages, allowing waste removal from beneath with a pump. As an advisory officer with the London-based feed company I worked for, I was involved with supplying designs for changing boiler sheds over to pig production, an innovation that led to complete modular constructed piggeries becoming available. (I visited northern Italy where the company also traded. Their pig industry too was progressing, albeit based not on the bacon trade but on prosciutto and salami production and cheese whey from the dairy factories.) Rationalisation of production to Johnson’s organised plan made possible increased, regular output with minimal labour. Allied with indoor farrowing pens, these modern constructions could be stocked with a regular supply of pigs, with regular output, all year. What was later called factory farming had arrived. It was at that time that I came to Australia and joined Les Downey in the Victorian Deptartment of Agriculture. I also established a small outdoor/indoor piggery that provided on-going hands-on experience, while enabling me to qualify as a ‘Primary Producer’ to take advantage of the favourable regulations applying. Pig production here was in transition from using skim milk to feeding dry grain and meat meal. Many dairy farmers were quite happy to sell whole milk in place of cream and quit the pig scene. Despite the construction of one or two piggeries with totally indoor production by dairy factories now taking whole milk, that trend had led to such a shortage of pigs for slaughter that the bacon factories had had to ration product supplies to their retail customers. Quarantine regulations requiring any imported pigmeat to be cooked and packed and in cans of not more that 11/2 lbs (approx 650g) made rectifying the supply situation problematical. In response, the Mayfair Hams & Bacon Co. at Bendigo,

PJJulyAugust2013:PJJanFeb09 27/08/13 11:29 AM Page 19

SPECIAL FEATURE Victoria, engaged a pig specialist, Dr. Dudley Smith, to oversee the development of a large-scale pig production unit to secure their own supply of pigs for slaughter. On a site just out of Bendigo they planned a unit based on 500 breeding sows producing about 9,000 slaughter pigs p.a. When that was running successfully, Mayfair planed to add another three such units, to a total of 2,000 sows on the site. Pig raising on this scale, requiring operation by specially trained staff, was unheard of. It was the first example of vertical integration in the pig industry in Australia. Such a departure from the traditional 10-30 sow herds was something really remarkable. John Craven, a reporter with The Weekly Times, saw the potential impact of this development and suggested a conference to highlight the achievement and explain its advantages. In early 1967, the Victorian Dept. of Agriculture and the Weekly Times mounted the Conference in Melbourne, attracting wide attention and acclaim. At the conclusion it was remarked that “the pig industry has now come of age”. Subsequent Australia-wide developments attest to the success of the conference, the boldness of Mayfair and Dr. Smith and the vision of all concerned. Fundamental to Dr. Smith’s success at Bendigo was the cooperation of the Vic., Dept. of Agric. in setting up facilities at Dookie Agricultural College for the production of Hysterectormy-Produced Artificially Reared, Specific Pathogen Free, piglets to stock the new unit with the healthiest pigs possible; the first SPF pigs in Australia. This was necessary to avoid stock infected with what was then known as VPP (virus pneumonia of pigs), swine dysentery, atrophic rhinitis and various strains of salmonella etc. which were commonly found in the existing pig population. (The pneumonia I’d known in the U.K. did not kill pigs, whereas in Victoria the pneumonia affecting pigs was often lethal.) Dr. Smith included in his HYPARdelivered stock examples of all the pig

breeds then available in Australia, so as to have as large a gene pool as possible. The herd was then closed to stock imports, to maintain strict health quarantine for the operation. Which brings me to pig quality. My clear impression on arrival from UK was that the Australian pigs, mainly Yorkshire LW and Landrace, were generally meatier and better developed, with larger “eye”

muscle and meatier streak, than I was used to. They were extremely good and yielded top quality carcases when correctly managed and fed. Incorporation of these qualities in Dr Smith’s gene pool was most promising. I shall return to this aspect later. Due largely to the Weekly Times conference and John Craven, the example w set by Mayfair and Dr Smith was soon

A mannanoligosaccharide rich product

Inactivated dry yeast

Inactivated dry yeast with higher solubility

broad activity toxin binder

Nucleotide rich source of protein DISTRIBUTED BY AusPac Ingredients Pty.Ltd UNIT 1, 84–92 BARNES STREET TAMWORTH NSW 2340 T) 02 6762 7708 F) 02 6762 7709

PORK JOURNAL, July/August 2013 19

PJJulyAugust2013:PJJanFeb09 27/08/13 11:29 AM Page 20

SPECIAL FEATURE v followed at several locations in Australia. Also, for a limited period the Victorian Department of Agriculture opened to the industry at large the opportunity to purchase healthy stock from the Dookie HYPAR facility. The rate of progress through the industry was greatly helped by the taxation rules (since repealed) then in effect that provided for accelerated write down of new agricultural building costs. Coupled with a very low valuation for tax purposes of ‘natural issue’ pigs born in the unit and favourable pig prices, this made the financing of building and stocking a new piggery an attractive proposition. The sale value of the pigs from the first stage built under these rules yielded a significant margin over the tax valuation. That margin could be used, by deferring the tax liability, to offset some of the establishment cost of subsequent stages, with the in-house selection of additional breeders also being much cheaper than sourcing elsewhere. Home production of future breeders paved the way for selection on observed performance of a large number of pigs and the employment of a populationgenetics based breeding programme. Taxation of the output remained at a minimum so long as the expansion continued. Competition for slaughter pigs kept farm prices at profitable levels. Producer payment was according to a visual appraisal of carcases by the bacon factory grader, using term such as ‘prime’ or even ‘super prime’. In those days a ‘Super Prime’ bacon pig as assessed by the top bacon factories was one with no more than 23 mm backfat at the mid line! Meanwhile researchers had shown that measurement of fat depth at two sites (C & K) over the eye muscle showed strong correlation with the meat content of carcases, later finding little loss of accuracy if a single measurement (P2) were made over the thickest part of the muscle. Enter the Introscope and other similar devices, followed later by ultra-sound for measuring live animals. The value of adopting probe measurements was shown in a test by the Victorian Department of Agriculture at a well-known bacon factory. A sample of carcases was assessed by the factory’s visual grader, introscope probed and then a full rasher taken from each cured carcase at the probe point.

PORK JOURNAL, July/August 2013

A comparative display of these rashers was then further assessed by the sales manager. The result showed that the visual grader correctly identified the most saleable carcases significantly less well than the probe, although probing was not 100% successful either. That information was soon adopted throughout the industry as bacon manufacturers saw the advantages of the method for their quality control. A majority of pigs still went through saleyards, although consignment direct to a bacon factory was increasing. With the possibility of more accurate grading of carcases it was suggested that the saleyard be replaced with a sight-unseen, live auction. This would work with buyers in a room, as with wool auctions, bidding on batches of pigs submitted for sale while still on the farm. The offerings were listed on a computer screen, and the scheme became known as ‘Computer Aided Livestock Marketing’, CALM. The owner had only to say how many pigs were offered with a description of their expected carcase grading, according to a matrix of weight and fat

measurements. The buyer would price such pigs and register his intention to purchase. After the sale, the producer would be notified of the price bid for his pigs, by whom and where to deliver the pigs.

However, to cover the possibility that the producer’s description was not accurate, whether by accident or otherwise, if when the carcase was measured it was found not to match the producer’s description, an alternative, lower, price would apply, again according to the matrix. That way the buyer was not disadvantaged by having bid on pigs that turned out not to suit his requirements. So entered the industry-wide concept of a ‘Penalty’ for mis-description, possibly one of the most unfortunate developments to blight the industry. I’ll tell you why. With an increase in over-the-hooks direct sales and factory grading becoming more popular, CALM became redundant. Whereas the principle of discounting the price actually paid on account of the pigs sold through CALM not meeting the expectation of the buyer is inherently fair it fostered the notion that producers might be untrustworthy, even devious. The notion of the penalty thus became a stick to beat them with even for pigs consigned direct to the factory. One buyer was heard to say “they’ll have to give us good pigs now”, as though sub standard pigs were produced deliberately. It has stuck in the minds of buyers ever since, unfortunately perpetuating an adversarial mistrust between producer and processor. That was a pity because the basic idea had the potential to encourage improvement of pork quality with an improved price paid for better carcases. That didn’t happen, because of the way pork is traded. It is a comforting notion to believe that the type of pork consumers prefer might command a better price that flowed down to reward the producer – that the price paid to the producer will be a reflection of the retail price of pork or bacon. But it doesn’t work that way. When I entered the Melbourne market in the 1970s, as manager of the newly constructed 550-sow Romahil piggery, later to be expanded to 1,300 sows, I asked around all the potential buyers for a definition of the type of pig required, so as to have a guide on how to produce what they really wanted. I got no answer beyond “good pigs, not too fat”. “How fat? I asked. They couldn’t say. It was not a defined aspect of what they were to buy. At Romahill my background in population genetics and animal nutrition combined to achieve rapid improvement in

PJJulyAugust2013:PJJanFeb09 27/08/13 11:29 AM Page 21

SPECIAL FEATURE pig growth rate and carcase conformation. Our pigs gained a reputation for being really meaty, especially in the ‘streak’, with small heads and very little caul fat. Buyers all liked the high carcase yield. It was a tough game then, too. One factory we supplied had kill sheets with many pigs tagged ‘CFT’. On enquiry I found that it denoted ‘condemned front trotters’. Someone at the service abattoir had a market for trotters. I also noted a marked rise in hind leg condemnations just before Christmas! The boldest ruse of all was with another factory that asked for his pigs to be branded on the left shoulder with his own brand, to be sure it was our pigs he received. One day he complained about the pigs delivered from the abattoir so we investigated. The carcases were delivered split, hanging on gambrels. And indeed they looked shocking – until I saw that the left sides were correct. Someone had unhooked 74 right sides from the gambrels and substituted with 74 scrub pig sides! After that we branded BOTH sides and had no more trouble. And the ‘head on/head off ’ practice was perhaps the final straw (see later) after which Ausmeat decreed that all pigs be priced on HSCW, to ensure a fair go for producers. This was all grist for my columns in the Pig Farmer, and when from time to time I lectured the Melbourne University Veterinary students on the economics of pig production. They must have wondered if all this was real! Sadly Romahill is now no more, but when I moved, to purchase a 220 sow piggery in Northern NSW, I bought a truckload of Romahill stock to refresh and update the breeding herd. That proved interesting as the traditional pig in the area was extra-long, lean and narrow. When our improved pigs came along the bacon factory manager exclaimed “we can’t handle these pigs, they have too much meat in them”! It was just an excuse for not paying a good price to the newcomer in the Area. Pork is a traded ‘commodity’ priced by supply and wholesale demand day by day. (viz. the traditional Pork Bellies as sold through the Chicago exchange). Except for those producers selling direct to a local butcher, in the wholesale market there is no such notion as an ‘improved’ pig. They are just pigs. The value of a pig is in its availability, not its description. That was a very valuable lesson. It was well illustrated by Gary Griffith when working at University of New England, Armidale. He spent hours of his own and his computer time looking for a correlation between the wholesale price charged to retailers and the price paid to the producer. He found that there was none. That is the nature of a ‘commodity’ market. Within a range, it varies according to other factors than ‘quality’. The matrix and its penalty was subsequently invoked by buyers, not to attract “better” pigs but in attempts to gain buying

advantage and secure their requirements at a lower mean cost than their competitor – the market at work. It was thought that by offering a very good price for the pigs with an unrealistically low backfat reading, to excite the interest of the producer, only a small proportion of carcases would conform and the penalty applied to the others would average down the value of the total batch. If Prime price were offered for carcases with, say, 16 mm backfat when only a few might be that lean, they believed that a cost advantage might be obtained. But soon producers supplied pigs with most of them fitting into in that new prime range, in the belief that that was what was wanted and to chase the higher price. That would not do for the buyer, as the batch was then out of line in overall cost. So the Prime standard was then lowered to 14 mm. Again it was not long before a high proportion of the pigs met that standard, frustrating the commodity trade pricing required. And so on, for lower and lower backfat measurement for prime price. w

For all your livestock needs Vegetable Protein Meals, Animal Protein Meals, Vitamins and Mineral Premixes, Feed additives and Supplements, Custom and Standard Millpacks, Animal Health and Husbandry.

Ph: (02) 9609 7922 Fax: (02) 9609 7923 Kym: 0439066054 Luke: 0439066006 kym@nationalfeedsolutions.com.au luke@nationalfeedsolutions.com.au

Suppliers of Elite nutrition and solutions &&&( )'* !%* )'* %( * (

PORK JOURNAL, July/August 2013 21

PJJulyAugust2013:PJJanFeb09 28/08/13 12:47 PM Page 22

SPECIAL FEATURE v

Note here that the consumer was not even consulted, it was just an exercise in market manipulation. It was the result of applying the penalty mindset, not to attract better pigs but to gain a buying advantage, that in practice turned out to be illusory. The going price for pigs was, in their minds, the average of all grades not their top price, which they had no intention of paying for all, or even most, of the pigs. A comparison I conducted with a routine batch of pigs in which I priced them according to a range of buyers’ weight/fat grids, each with different prices for the leanest pigs and different fat penalties, showed the value per kg. of the batch to be effectively the same everywhere, to within less than 1c. (except when one buyer offered a much higher price per kg. but for “head-off ” carcases, when the payment per pig dropped by $4.00!) It was about this time that such developments, and the increasing, regular output from various newcomers to pig production, gave rise to a new approach to industry organisation, marketing and promotion. Gay Woltmann from Kingaroy and others successfully lobbied the Federal Government to legislate for every pig

slaughtered to pay a small promotion levy. Together with the already collected research levy it was to be used for the benefit of the whole industry. Administration of the fund was by the Pigmeat Promotion Committee, which later evolved to become the Australian Pork Corporation and then the APL we have now. That was a major advance for all producers as the stud breeders, traditional piggery owners and the more industrially oriented IPPA (Intensive Pig Producers of Australia) were all joined informally under one organisation. The adoption of probe measurement of fat depth coincided with a trend towards reducing consumer dietary fat consumption, promoted by dietician advisers and the Heart Foundation. Over-consumption of fat, especially saturated fat, was considered to be a contributing cause of heart disease and obesity, stigmatising fat consumption as though all fat is bad for you. There followed increasing enthusiasm for the adoption of pricing based on absence of fat that led to rapid changes in the type of pig coming forward for slaughter. A general consumer notion that pork is

over-fat, combined with the penalty approach to carcase pricing, produced a rather perverse outcome, as we shall see. Buyers scaling their prices with a strong bias to less and less fat led to the notion that the lean meat content was all that mattered. With the adoption of muscle depth measurement with improved probes, perhaps carcase lean meat yield could be deduced and better pricing adopted. Much research followed, fostering the notion that buyers would pay producers more for the meatier carcases – ELMY (estimated lean meat yield trading) was born. Two weaknesses showed up in this approach. Firstly, that the ELMY lean content calculation could only be made by applying a formula to the fat and muscle depth measurements already taken, with no apparent increased improvement in predicting carcase suitability for trade purposes, and secondly, that according to the practicalities of meat trading outlined above, the price for lean pigs became the pig trading price norm and all others had a ‘penalty’ applied. It all became too hard and the push for ELMY pricing fell out of favour. TO BE CONTINUED

APL/Pork CRC Roadshow and 2015–2020 Strategic Plan Industry Consultation Australia’s representative body for Australian pork producers, Australian Pork Limited (APL) is about to launch its Strategic Plan 2015–2020 Consultation and the APL/Pork CRC Roadshow. All producers are encouraged to participate DQG ÀQG RXW ZKHUH WKHLU UHVHDUFK OHYLHV DUH EHLQJ VSHQW DQG WR KDYH LQSXW LQWR WKH ² 6WUDWHJLF 3ODQ New South Wales – Young Tuesday 10 September Young Golf Club 3.00pm–6.00pm, followed by dinner RSVP to NSW Farmers Members Services on 1300 794 000 or goughj@nswfarmers.org.au Victoria – Shepparton Thursday 19 September Aussie Hotel 3.00pm–6.00pm, followed by dinner RSVP to Ann-Maree Hastings on 02 6270 8806 or annmaree.hastings@australianpork.com.au Queensland – Toowoomba Wednesday 2 October The Burke and Wills Motel, 554 Ruthven Street 3.00pm–6.00pm, followed by dinner RSVP to Ann-Maree Hastings on 02 6270 8806 or annmaree.hastings@australianpork.com.au

PORK JOURNAL, July/August 2013

Western Australia – Perth (in association with WAPPA) Friday 18 October South of Perth Yacht Club Coffee Point, Duncraig Rd, Applecross WAPPA meeting commences 10.30am APL/Pork CRC Roadshow/Consultation from 2.00pm–5.00pm Annual Industry Dinner, Rowing WA Club HQ from 6.30pm RSVP to Russell Cox on 08 9479 7315, 0428 293 095 or russell@wappa.com.au Tasmania – Longford Wednesday 30 October 9HQXH WR EH FRQÀUPHG For further information contact Ann-Maree Hastings on 02 6270 8806 or annmaree.hastings@australianpork.com.au Further information can be found at www.australianpork.com.au

PJJulyAugust2013:PJJanFeb09 27/08/13 11:29 AM Page 23

PJJulyAugust2013:PJJanFeb09 27/08/13 11:29 AM Page 24

Meat & Carcass

Environment Sustainability

Higher Bioavailable Chelated Trace Minerals Enhanced immunity Reduced oxidative stress Improved progeny bone development

Improved bone development strength Improved tissue integrity Reduced mineral excretion

O C

2 HMTBa to 1 metal coordinate covalent bonds

C C

O C S

O O

C Only MINTREX can supply producers with a source of organic trace minerals and methionine activity in one package. After delivering its trace mineral to the point of absorption, the HMTBa ligand contained within MINTREX becomes available for conversion to L-Methionine, representing an important added value.

ÂŽMINTREX and are trademarks of Novus International, Inc., and are registered in the United States and other countries. ÂŠ2010 Novus International, Inc. All rights reserved. 2001-10-14057 EI Novus Nutrition Pty Ltd Top Floor, 103 Victoria Rd, Drummoyne, NSW 2047 Tel: 02 9719 1466 t Fax: 02 9719 1463 t www.novusint.com t infoasia@novusint.com