Archive for May, 2013

Reposted from ONagbusinessDirect Farm Marketing Calculators Now Available
by John Molenhuis

The following three Excel based margin calculators are now available as free downloads which allow producers to compare and calculate their margins for selling directly to consumers:
• The Performance Analysis by Marketing Channel spreadsheet allows users to calculate or compare
margins across six distinct market channels:
• Roadside stand
• On-farm market
• Pick your own/U-pick
• Farmers’ market
• Community Supported Agriculture
• Online store/delivery service
• The On-Farm Processing Recipe Based Costing Tool allows users to analyze the impact of changes in recipe, ingredient costs or packaging size on product margin for value added products such as baked goods, preserves etc.
• The Cost of Meat Processing Tool allows users to calculate the cost of meat processing per meat product by summarizing the costs of animal transport, slaughter, further processing into cuts transport cost for meat pickup.

The Business Management Unit of the Agriculture Development Branch has worked with University of Guelph staff to develop this information resource.

This project was funded through Growing Forward, a federal-provincial-territorial initiative.
Contact: Carl Fletcher, carl.fletcher@ontario.ca Strategic Business Planning Program Lead

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Reposted from ONagbusiness.
USDA Crop Progress Report – May 26, 2013
• Corn planting was 86% complete which is up 15% from last week. This compares to 99% last year and 92% complete on 10 year average. The market expectation was near 85%.
• Soybean planting was 44% complete which is up 20% from last week. This compares to 87% last year and 65% complete on 10 year average. The market expectation was near 40%.
• Spring wheat was 79% complete which is up 12% from last week. This compares to 100% last year and 89% complete on 10 year average.
• Winter wheat condition was 31% good/excellent which is the same as last week

Crop Graph:
• To get your local corn spot price, simply add your local basis
• i.e. new crop future $5.51 + local basis of -$0.75 = $4.76/bu or$187.39/tonne

Weekly Average Corn Futures

• US released the final rules to modify Mandatory Country of Origin Labelling (COOL) last week on May 23rd. The two major changes from the initial rule are the required labels are to include information about where each of the production steps occurred and it removed allowances for commingling of muscle cuts. The new labeling requirements go into effect on May 23, 2013 but there is a 6 month education and outreach program which means 100% compliance requirements will be delayed for six months. Both Canada and Mexico have stated they believe the amended rules still violate the World Trade Organization agreements and are prepared to take addition actions.
• Smithfield Foods Inc. (SFD) has confirmed that it has agreed to be acquired by Chinese meat producer Shuanghui Group for about $4.8 billion.

Disclaimer: This commentary is provided for information only and is not intended as advice.

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HISGRAIIN Commodities Inc., together with John Bancroft, OMAF and MRA, Kevin Simpson, Bert Caputo, and Mike Tregunna of RBC Dominion Securities Inc. and other industry partners are offering a Gross Margin Management (GMM) workshop for Swine Industry producers. The objective of the workshop is to provide greater detail about the process and mechanism for using Hog Futures, Corn Futures and Soybean Meal Futures to lock in a Gross Margin for hogs going to market in the future i.e. as much as 1-2 years ahead of actual marketing. The workshop will use actual prices during the past 5 years to illustrate the actual process and mechanisms. We will also highlight the opportunities that do present themselves and how we as an industry can take advantage of such opportunities.

The workshop will be held on June 25, 2013 at the Festival Inn in Stratford, Ontario from 9 a.m. to 2 p.m. The registration fee is $56.50 ($50 + $6.50 HST) per person that includes workshop material, refreshments and lunch. Please make cheque payable and send to: HISGRAIIN Commodities Inc., 56 Richmeadow Crescent, London, Ontario N6H 5E5

Complete details and a registration form is available at http://www.ontariopork.on.ca/communications/eventscalendar/tabid/246/ctl/viewdetail/mid/687/itemid/293/d/20130625/HISGRAIIN-Swine-Industry-Gross-Margin-Workshop.aspx

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USDA Cold Storage Report

US Pork Exports,  Imports and Cold Storage

The USDA Cold Storage report yesterday indicated that total red meat in storage at the end of April was up 3% from last year and up 5% from March 2013. Total beef in storage was down 2% from 2012 and down slightly from March 2013. On the other hand, pork in storage was up 6% from April 2012 and up 8% from March 2013 mainly due to a 12.5% increase in ham stocks. The pork in storage was a record level for the month of April, bearish news for the hog market. The good news from the report was the stocks of bellies in storage was down 25% from April 2012 stocks. As depicited in the graph,  pork cold storage stocks should start declining over the summer months as production decreases and demand responds to the BBQ season.

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New Fertilizer Container Recycling Program for Farmers Launched
A popular recycling program for farmers is being expanded to include new products. In addition to accepting empty, clean pesticide containers, CleanFARMS will now accept plastic fertilizer jugs and pails (less than 23 litres) as part of its annual recycling program.

Every year, approximately 4.5 million empty, triple-rinsed plastic pesticide containers are safely recycled into items that can be used back on the farm, for example farm drainage tile.

CleanFARMS encourages farmers to follow three easy steps in order to ensure the containers they’re returning, including fertilizer containers, can be properly recycled. Farmers are asked to triple or pressure rinse containers to remove all product, remove the cap and label, and return the containers to the nearest collection sites. For more information, including a full list of collection sites visit www.cleanfarms.ca or contact: Nadine Sisk at 613-218-6063

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Canadian livestock producers are fortunate to have Codes of Practice to guide them in best practices for livestock housing, handling, and care. Revisions of these codes are being coordinated by the National Farm Animal Care Council, which is a collaborative partnership of very diverse stakeholders who work together on farm animal care and welfare. The Codes for several species are being updated.

The last Pig Code of Practice was published in 1994, so an update is needed in order to reflect new practices, producer needs, and market expectations.  The National Farm Animal Care Council has announced that a draft will be released on June 1st for a 60 day comment period.

It is very important that Ontario pork producers review the content of the proposed Pig Code of Practice and provide feedback directly through the National Farm Animal Care Council website or through their producer association.  This is the opportunity to comment on a document that will become the expected Canadian standard for pork production practices.  The key areas of focus for this review have been sow housing, space, and pain management.

This is your opportunity to provide input on this important document – don’t pass it up.  The National Farm Animal Care Council website is http://www.nfacc.ca.

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The complete proceedings of the 13th annual London Swine Conference “Managing for Production” (March 27-28) are available on the conference website.

Production topics range from sows to nursery to weaning/finishing, and from nutrition to health to management to marketing, presented by local and international speakers.



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Canadian Hog Slaughter

Canadian Hog Slaughter

The above graph shows the average weekly number of hogs by province of origin (raised in) and by province of slaughter for the first 17 weeks this year. The average weekly Canadian hog slaughter was 404,703 which is down 1.2% from 2012. For Ontario it indicates 96,228 hogs per week were slaughtered in Canada that originated from Ontario (82,038 hogs per week were slaughtered in Ontario and 14,190 hogs per week from Ontario were slaughtered in Quebec). Total hogs slaughtered in Canada from Ontario are up 1%; slaughtered within Ontario down 6%: slaughtered in Quebec from Ontario up 72%. The average number of hogs per week from Ontario being slaughtered in Quebec during the first 4 months last year was 8,231.

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The April Swine Budgets are now available on the OMAF and MRA website.  April 2013 Budgets

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What do sows and army tanks have in common? Listen to the podcast Sow Lameness presented by Mark Wilson, Zinpro at the London Swine Conference to find out as well as practical ideas for preventing sow lameness.

Complete Presentation (75.6 MB) Questions (28.5 MB)

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