NPPC Asks USDA To Help U.S. Pork Producers
Washington, May 5, 2009 -
The National Pork Producers Council in a letter sent today urged the U.S. Department of Agriculture to help the U.S. pork industry deal with the negative effects of what initially was misnamed “swine” influenza and is now known as the H1N1 flu or Influenza A.
Pork producers, who prior to the announcement of the current flu “outbreak” already were losing money, have seen losses accelerate to an average of $17.69 on each hog marketed as of May 1. Total losses reached $7.2 million a day between April 24 and May 1.
“Given those loses and based on May 1 futures prices,” said NPPC President Don Butler, “a bad situation for pork producers has been exacerbated and could get worse unless the industry gets some relief.”
Pork producers, who prior to the announcement of the current flu “outbreak” already were losing money, have seen losses accelerate to an average of $17.69 on each hog marketed as of May 1. Total losses reached $7.2 million a day between April 24 and May 1.
“Given those loses and based on May 1 futures prices,” said NPPC President Don Butler, “a bad situation for pork producers has been exacerbated and could get worse unless the industry gets some relief.”
To help stem the losses U.S. pork producers are incurring, NPPC has asked USDA Secretary Tom Vilsack to:
• Implement a USDA purchase program for $50 million of pork products to help boost cash hog prices. Products can be put into federal emergency food programs, food pantries, senior/elderly feeding programs, hunger programs and other non-commercial food channels.
• Urge President Obama to work with U.S. trading partners to remove all restrictions on exports of U.S. pork and pork products and to maintain U.S. pork export markets around the world.
• Develop a comprehensive surveillance program for swine diseases, which will provide an early warning for emerging diseases that affect human and animal health. Mandatory premises and animal identification would be necessary for an effective surveillance program.
• Work to keep open the border between the United States and Canada – in the wake of a report that pigs on a Canadian pork operation contracted from a worker the H1N1 flu – to allow hog movements.
NPPC told Sec. Vilsack it would identify and bring to his attention other actions USDA could take to assist the U.S. pork industry during the current situation.
NPPC told Sec. Vilsack it would identify and bring to his attention other actions USDA could take to assist the U.S. pork industry during the current situation.
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STOCKS NEWS EUROPE-Fish shares up, pork down on swine flu
Mon Apr 27, 2009 9:49am BST
Shares in Marine Harvest Group (MHG.OL: Quote, Profile, Research), the world's biggest fish farmer, rise more than 10 percent with traders speculating swine flu could lift salmon prices as witnessed during previous outbrakes of bird flu and cow disease.
Smaller salmon farmer and fish feed supplier Austevoll Seafood (AUSS.OL: Quote, Profile, Research) jumps 14 percent. In Spain, frozen fish company Pescanova (PVA.MC: Quote, Profile, Research) is up 4.5 percent, while sausage casings company Viscofan (VIS.MC: Quote, Profile, Research) is down 9.5 percent. British sausage skin maker Devro (DVO.L: Quote, Profile, Research) falls 4.6 percent and pork supplier Cranswick (CWK.L: Quote, Profile, Research) falls 4.7 percent.
"Historically, the effects have been temporary, but right then and there the effect can be substantial (on prices)", says fish farming analyst Dag Sletmo at ABG Sundal Collier.
"Consumers can become nervous, and substitute swine with other sources of protein," Sletmo says, adding supply of swine would not be affected unless there were import restrictions or slaughter of infected animals.
Mon Apr 27, 2009 9:49am BST
Shares in Marine Harvest Group (MHG.OL: Quote, Profile, Research), the world's biggest fish farmer, rise more than 10 percent with traders speculating swine flu could lift salmon prices as witnessed during previous outbrakes of bird flu and cow disease.
Smaller salmon farmer and fish feed supplier Austevoll Seafood (AUSS.OL: Quote, Profile, Research) jumps 14 percent. In Spain, frozen fish company Pescanova (PVA.MC: Quote, Profile, Research) is up 4.5 percent, while sausage casings company Viscofan (VIS.MC: Quote, Profile, Research) is down 9.5 percent. British sausage skin maker Devro (DVO.L: Quote, Profile, Research) falls 4.6 percent and pork supplier Cranswick (CWK.L: Quote, Profile, Research) falls 4.7 percent.
"Historically, the effects have been temporary, but right then and there the effect can be substantial (on prices)", says fish farming analyst Dag Sletmo at ABG Sundal Collier.
"Consumers can become nervous, and substitute swine with other sources of protein," Sletmo says, adding supply of swine would not be affected unless there were import restrictions or slaughter of infected animals.
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Food sector, except pork-related businesses, on a rise, backed by windfall from swine flu Share prices of food companies, except those related to pork products have made sizable gains since the opening bell on hopes that consumers will switch to other meats as the whole world is in the grip of swine flu.So far, more than a hundred people have been killed by the virus in Mexico while infection was reported in some states of the U.S. and also suspected in New Zealand.Companies that have reaped the windfall from this health threat include Charoen Pokphand Foods, GFPT, Seafresh Industry and Thai Union Frozen Products.At the end of the day, CPF prices, however, lost more than 0.5% while CFRESH surged 30 % and TUF closed up 13 %. GFPT also gained 7%.
http://www.moneychannel.co.th/Menu8/SETToday/tabid/120/newsid624/86953/Default.aspx
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U.S. pork industry hurt by swine flu label
Last update: 5:26 p.m. EDT May 6, 2009
SMITHFIELD, Va., May 6, 2009 (UPI via COMTEX) -- The head of Smithfield Foods says the swine flu outbreak has cut into sales of pork in the United States.
Smithfield Chief Executive Officer C. Larry Pope told The (Newport News, Va.) Daily Press his company has been cutting back on the hours of packing plant workers as consumers avoid pork, even though the flu virus isn't passed through meat.
"They just see the name 'swine,' and virtually every television media has shown pictures of pigs," Pope said. "People just don't know. They're unsure."
Pope said Smithfield, the leading pork packer in the country, has been testing its products for swine flu even though the chances of the virus showing up are virtually nil.
"We want to assure the public that we have the highest standards and we're going to do the testing even when no one requires it," he told The Daily Press.
Swine flu is officially the H1N1 virus, but Pope is out on the road doing media interviews across the United States to clear up any misconceptions about the safety of pork.
http://www.marketwatch.com/news/story/us-pork-industry-hurt-swine/story.aspx?guid=%7B523F78CD-950D-446F-AADE-2904D25A5A7E%7D
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SWINE FLU IS FISHERMAN & COLONEL SANDER'S FRIEND
EU Fish stock rise hints Marketing Opportunities for Seafood and Chicken as terrified consumers from Swine Flu seek for other source of nutrients.
As the Swine Flu (H1N1) Pandemic continues there have been a serious downturn in the global pork industry. America, the third largest pork trader have suffer a "total loss of $72 million or $17.69 per day".
Consequently, US trading partner Europe is also facing the same problems. Their sausage campany Viscofan stock price dropped 9.5% and Sausage skin maker company Devro stock also fell by 4.6%, Similarily, in other parts of the world such as Thailand our 70 billion baht pork industry is also badly affected. "Chareon Pokphand Food stock prices fell more than 0.5%" while firms in other consumption industry rather than the pork industry; their stocks have rised drammatically.
Currently, as the bad situation persist the merchants had to struggle to find a solution; therefore, they entitled the National Pork Producer Council to sent a letter to the U.S. Department of Agriculture to help the U.S. pork industry. At the moment, there have been two plans implemented; for instance, Strategic Investment Programs and the Pork Alliance.
http://www.nppc.org/Programs/JoinNPPC.htm
Also they have asked the USDA to help them in areas of,
• "Implement a USDA purchase program for $50 million of pork products to help boost cash hog prices. Products can be put into federal emergency food programs, food pantries, senior/elderly feeding programs, hunger programs and other non-commercial food channels."
• "Urge President Obama to work with U.S. trading partners to remove all restrictions on exports of U.S. pork and pork products and to maintain U.S. pork export markets around the world."
• "Develop a comprehensive surveillance program for swine diseases, which will provide an early warning for emerging diseases that affect human and animal health. Mandatory premises and animal identification would be necessary for an effective surveillance program."
• "Work to keep open the border between the United States and Canada – in the wake of a report that pigs on a Canadian pork operation contracted from a worker the H1N1 flu – to allow hog movements."
Even though there have been help from the government but it seems as if it has no impact. Restaurant owners and franchise like White Castle had to privately subsidise an advertising campaign to persuade consumers to eat pork.
Still, as lines of advertisements and PR campaigns are being pushed out to the public again it still had no effect at all. When consumers "see the name swine, and virtually every television media has shown pictures of pig. People just don't know. They're unsure."
"Shares in Marine Harvest Group, the world's biggest fish farmer, rise more than 10%. It could also lift the salmon prices. Consumers can become nervous and substitute swine with other sources of protein." Meaning presently consumers are changing to eat fish and chicken to avoid the Swine Flu.
Companies in the food consumption industry in different parts of the world had start to shift their marketing strategy to the Fish and Chicken sector since they have seen the opportunity. They can sale and maximize profit with this two items; plus, recover from their lost. On the contrary, we wouldn't be able to experience this change in marketing strategy in Thailand since Swine Flu has only some effect on our market.
Indeed, one thing that we can infer from this side effect that, for Fish and Chicken producers or firms involving food consumption they should shift their marketing strategy to concentrate only on any thing other than Pork and invest in them heavily. This is the golden opportunity which comes with a time frame since Swine Flu doesn't last forever.
In brief, whatever product we choose to market we must not forget that in the past there have been out break of Avian Flu and Mad Cow disease. In addition, we never know when it'll return; as a result, the supplies that we have left are what we receive from god. Fishes, Fruits and Vegetables.
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