The Pig Guide - Editorial Articles
Strong sales make firm
foundation for industry
to maintain its advance
by Mick Sloyan,
chief executive of the
British Pig Executive
It used to be said the only way to make a small fortune out of the pig industry is to start with a large one!
However, the majority of producers have been in profit this year with lower feed costs and higher pig prices. One of the most important factors affecting the industry as a whole has been the exchange rate with Sterling staying weak against the Euro which
has been encouraging more exports and making the cost of imports higher in Sterling terms. Internationally, British pig meat production has made some impressive performance gains, although it is still lagging behind the European average in some areas, in particular, pigs born/sow.
The weakening in Sterling, together with strong demand for pork and pork products, despite the recession pushed pig prices to record levels in the middle of 2009. Despite the subsequent fall in pig prices with feed prices moving lower, profit margins this autumn have been the highest for more than ten years. But this is not a reason for complacency.
The pig industry does not control world feed prices. The exchange rate
is unpredictable and could move the other way, with negative implications for prices.
The one thing that is within the power of the pig sector is to take action to reduce production costs and improve competitiveness. A detailed knowledge of the costs of production is the first step to reducing them and will help producers cope with potential fluctuations in market prices and input costs.
Cost gap narrows
A BPEX report, Pig Cost of Production in Selected European Countries showed European costs rose by 24 per cent in 2008 while those in Great Britain went up by only 12 per cent. This means production costs in GB were much closer to those of
our main competitors when in previous years we had been one of the highest cost countries.
Looking forward, we are expecting there to be a significant increase in production in the UK and are looking at clean pig slaughterings topping 10 million head which is eight per cent up on last year. This forecast is based on a number of factors. The June agricultural census showed a recovery in pig numbers for the first time in ten years. In addition, sow productivity has also increased and that is partly due to the use of the PCV2 vaccine – a BPEX project which really proved its worth.
Pork appeals in ‘crunch’
Put all this together and we reach the highest clean pig slaughterings since 2002. It is more than a million head higher than the trough of 2004-06.
The overall impact of this on pig prices will depend on the strength of demand. This has been very encouraging in 2009 as pork and pork products have been seen as a good alternative during the credit crunch.
Over the course of the year pork sales were up two per cent compared with a year earlier while sales of bacon (+three per cent) and sausages (+two per cent) were also higher. Importantly the total amount spent by consumers was between six per cent and nine per cent higher.
Overall, prospects for 2010 continue to look positive. We may not hit the heights of 2009 when the DAPP averaged 146p/kg but if the exchange rate remains broadly in line with 2009 values then the market is likely to be historically strong.
Knowledge transfer
plays central role in
technical innovation
by Dr Mike Varley, head of the BPEX KT Team and Research and Development
There have been some very challenging years of late for the British pig industry but over the last 12 months we have seen a period of relative stability with good prices for the producer and a return to business investment for many. For those working in the ancillary industries that supply products, services and consultancy to the primary producers, this has also brought renewed enthusiasm and activity.
The pig industry and especially the British industry can also pride itself on the quality and quantity of innovation and the speed of technical uptake by farmers and consultants alike and this has enabled the survival of the industry in the face of very fierce competition from our European neighbours. The BPEX Knowledge Transfer team has played a central role in this endeavour. The functions of the KT team are diverse and many but include the on-farm delivery of new knowledge from relevant research carried out around the world and also the continued provision of this ‘received wisdom’ to our farming community. This latter process is very important and involves the translation of sometimes complex relationships into down to earth formats in order that the knowledge can be used in farm practice.
The BPEX KT team therefore consists of qualified individuals working throughout the whole of the English industry from Cornwall to Northumberland.
Each of them has sound practical experience of the industry and current farming practice but they are also qualified as animal scientists and can understand the science based research programmes in the various disciplines including genetics, nutrition, management and environmental control. They also need to have a working knowledge of the principles of animal health and welfare and be able to communicate with the local veterinary practitioners in problem solving. Each of the KT Managers also has a speciality of their own such as artificial insemination or finishing pig management and are called upon to work in other regions outside their own areas whenever necessary.
At the very practical end of the knowledge continuum are the necessary and important skills of the working stock people. This has been a very sadly neglected area in recent years and the recently established post of KT Training Manager was set up to redress this issue. Through this post and associates there has been the initiation of a number of skills-based programmes providing Certificates Of Competence programmes for new entrants to the industry and also for more senior staff in the form of supervisory level skills courses.
Visible pathway for managers
More recently we have seen the development of full blown management training programmes for unit managers and senior stock people aspiring towards management posts. This has all provided a visible career pathway within the industry that hopefully will provide a platform to attract more new young entrants into the industry but will also help in the retention of existing staff.
The mode of delivery of our knowledge base to the industry occupies the BPEX Communications Team and the individuals involved in this work on our web-based platforms and also our hard copy elements including a number of technical publications that are constantly produced and accessible to all who work in the industry. This provides independent assessment of an on-farm problem and provides farmers with options to improve their businesses.
What is obvious from the foregone discussion is that unless there is a supply of new knowledge at the front end of this continuum, there is nothing at the back end to deliver to translate into new farm practice.
It is also evident that although much new knowledge is generated in other European countries and notably in the Netherlands, France and Denmark, we also need to have UK research to constantly re-populate our knowledge base. BPEX therefore still has a strong commitment to research that is relevant to both the primary pig producer but also to the processor involved in final product manufacture.
The funding of many on-going programmes currently in animal health, environmental issues and product quality is still a very significant part of our activities. Moreover the pursuit of ‘cost of production’ research is also still high on our priority listing. This involves basic research seeking improvements in those important KPI’s (Key Performance Indicators) that determine profit or loss for the producer.
The overall process of Knowledge Management from Innovation to Application is at the heart of BPEX’s work and commitment. We have a dedicated team of Research Managers working in the various fields and collaborating with universities and research institutes but it is our KT Managers who are charged with the task of making sure this knowledge gets quickly into farm practice. BPEX projects currently have a major focus on animal health and animal welfare plus a variety of ‘cost of production’ projects to improve farm efficiency. All told there are around 70 projects running including:
Yorkshire & Humberside Health Scheme
East of England Health Scheme
British Pig Health Scheme
ZNCP Programme
Acute Phase Protein – health index project
Tail Biting Project
Welfare Outcomes
PigSafe Project
Isotope Fingerprinting - source of origin of meat samples
Genotype – Performance and Meat Quality
Low Protein Pig Feeds
DDGS in pig nutrition
Seasonality & Production
Pleurisy and production
Energy saving and pig production
Efficacy of disinfectant products
Reducing skatole in growing / finishing pigs
Life Cycle Assessment and Pig Production
Vaccination against salmonella
Bioreduction of fallen stock.
Industry training schemes are gathering pace
by Tess Howe, skills development manager at BPEX
As the roll out of the pig industry’s unique skills strategy enters its fourth year, momentum is gathering. The opportunities on offer are widening and as more people participate the status of such activities is rapidly moving away from ‘if I must’ to routine events valued by all levels of staff. So what is available?
Certificates of Competence: Developed by the industry, the three levels (basic stockmanship and welfare, pig husbandry and pig unit supervision and operation) provide staff with recognition for existing skills. For new entrants they provide practical qualifications relevant to their specific job.
Certificates of Competence Manuals (trainees and trainers). These are a useful resource for staff working towards the qualifications but also a good reference document for the unit staff.
Seasonal Workshops – Run by the KT team, free evening workshops covering key practical issues on farm.
Pig Industry Professional Register (PIPR) – Recently re-launched, the scheme offers a simple, cost effective way of recording and demonstrating professionalism in the industry. Open to all on a voluntary basis, there are two categories, new entrant and member. The scheme records and recognises all personal development activity including, but not limited to, formal training courses, technical meetings, veterinary visits, trade fairs and in-house training.
Trainee of the Year Award – The national award, sponsored by Pfizer and Pig World, recognises an individual’s development and contribution to the businesses as well as acknowledging the commitment of their employers to skills development.
The awards are always a closely fought contest and the winner walks away with an award worth more than £2500. This year they were presented by Jim Fitzpatrick, Minister for Farming and the Environment in a ceremony at the House of Commons.
Nuffield Award – BPEX in conjunction with Merial, sponsors a prestigious Nuffield Scholarship. This annual award encourages overseas study to investigate various aspects of pig production around the world with the intention of improving the scholar’s own business and the industry as a whole. The award is open to all people involved in the industry.
Professional Managers Development Scheme. Aimed at existing managers this scheme runs over 18 months and combines structured management training with presentations from industry leaders. The course is delivered by Cedar Associates and independently accredited by the Institute of Leadership and Management.
Leadership Development Scheme – Designed, developed and run by JSR Farms, this course provides people new to supervision and management with an excellent foundation. Delivered over a year and including outdoor activities the group runs annually.
Stockman Development Scheme. This scheme is aimed at stockmen who wants to further their careers in the industry. Workshops based around the Certificates of Competence are run every two months and in between these sessions, allied industry visits and visits to other farms are organised.
Training Groups – Groups specifically for training are developing around the country providing regular sessions. While some larger companies run in-house courses, these training groups provide a valuable opportunity for staff from smaller businesses to engage in cost-effective local training.
Study Tours – Visiting other countries and learning about their production techniques can be very beneficial for producers, who often quote these activities as the most worthwhile events they have participated in.
Pig Clubs and discussion groups – These clubs and groups complete the skills offer. Over 20 groups and clubs are now in operation across the country. Practical advice is discussed and producers learn from each other’s experiences – good and bad. They also provide the opportunity to find out what is happening on other units. This information is vital for people to have confidence in altering and improving their own units/activities.
As with any business investment, money needs to be spent before the benefits are seen. In order to help pig businesses invest in skills, BPEX has negotiated contracts with a number of Regional Development agents to provide funding for skills development. Funding is now available in the majority of regions and can provide anything between 65% and 80% support for all of the activities listed above, so what are you waiting for?
For more information contact:
Tess Howe: Tel 07779 321078
Email tess.howe@bpex.org.uk
or National Pig Association
www.npa-uk.org.uk
Welfare focus on life worth living
by Paul Smith
co-editor of the Weekly Tribune
A recent report entitled Farm Animal Welfare in Great Britain: Past, Present and Future strikes the right balance between the well being of animals and the wishes of consumers and responsibilities of retailers. It has been compiled by the Farm Animal Welfare Council and considers whether the vision implicit in the Brambell Report of 1965 has been realised for animals farmed either intensively or extensively. Professor Brambell’s report was a watershed for those involved in livestock farming. The latest FAWC report looks at Brambell’s influence on both Government and commercial animal welfare policies and looks forward over the next 20 years.
The Brambell Report kick-started a new way of thinking about animals
that live and die for the benefit of society. It led to a raft of legislation on farm animal welfare and inspired the Codes of Recommendation for the Welfare of Livestock.
It changed attitudes to animal welfare encouraging scientists to focus on its key elements. Based on this knowledge, it provided opportunities to inform agricultural students and veterinary students and also had an impact on farming practices and consumer attitudes.
The Brambell Report did not only just get people thinking about animal welfare but it resulted in society doing something about it. FAWC’s new report reviews the extent of change in Government thinking, the effectiveness of legislation and its enforcement along with the radical development of the grocery trade; it also considers private sector initiatives which reflected changing consumer attitudes towards farm animal welfare. The report appraises the ethical principles supporting animal welfare and sets strategic goals for the future.
Detached and difficult to please
Since the 1950s farmers and the food supply chains have responded well to Government requests for the supply of cheap food. The changes have been unimaginable. However, it is generally difficult to please all of the people all of the time and particularly difficult when many of those people have become detached from the countryside and live in sterile urban environments. Some consumers genuinely feel that existing animal welfare regulations and practices do not go far enough for a modern caring society. Inevitably, pig people will focus on the fact that the report flags-up the decline in the home production of pork while home production of milk, beef, lamb and chicken has increased significantly.
One reason why the UK is dependent on imports is that the demand for certain cuts of meat is such that it outstrips the current available home supply. Many UK pig farmers feel commercially disadvantaged because they have had to bear the higher costs of better welfare while successive governments have allowed well disguised importations of meat from systems deemed to be illegal in the UK. This view point is morally unjustified and the practice is abhorrent.
UK is one among many
We now live in an era of globalisation in which the grocery trade is a major player. The United Kingdom is just one country within a borderless EU. It is part of a political amalgam of 27 countries with different cultures and different expectations and its citizens live with a diverse hierarchy of needs. The goal posts have moved and it is right that difficult questions should be addressed regarding farm animal welfare.
As yet, trade within Europe is not to any great extent differentiated according to systems of production. Maybe the UK does not quite fit the European mould, bearing in mind that over 40 per cent of UK sows live outdoors and many indoor systems are straw based. Particularly with respect to pig production, sharp practices regarding product labelling have tended to mask both the positive and negative aspects of animal welfare. Some consumers feel betrayed since they are unable to make an informed choice based on the welfare provenance of animal products. Consumers are demanding clearer messages about the welfare aspects of the products they are being sold. They do not like being conned.
Undoubtedly, there has been much progress since the Brambell Report of 1965. However, in the 21st century it is reasonable for British citizens to be given assurance that every farm animal had had a life worth living.
Despite legislation and the efforts of farmers and stockmen, the delivery of appropriate animal welfare is undermined. Modern consumers feel powerless, since in simple terms, they do not know what they are being sold. The latest FAWC report suggests that there should be a new independent mechanism whereby consumers would be provided with authoritative, accurate and impartial information about farm welfare information. Surely no-one within the EU pig industry, with a genuine commitment to supplying the diverse needs of consumers, would be against such a proposal?
Current farm animal welfare legislation embraces the Five Freedoms but the focus is very much about the avoidance of suffering and the provision of needs. This mindset tends to portray a somewhat negative image of farming and food production.
FAWC now proposes that minimum welfare standards should be expressed in terms of the animal’s quality of life. This would not only apply at the farm but also during transport, at gatherings and at the abattoir, it would also have concerns for the manner of the animal’s death.
The proposal is for a greater emphasis on providing a farm animal with a life worth living. Any marketing claims about welfare enhancement regarding both British and imported food products would be subject to independent audit.
Support for report expected
Many within the pig industry feel short-changed by the current labelling ethics. They are therefore likely to give FAWC’s long overdue recommendations a high degree
of support. Undoubtedly Professor Brambell would welcome these changes and consider them very necessary in view of the largely unpredictable social attitudes within Europe since 1965.
Tribune believes that FAWC has the right credentials for modernising both the realities and the perceptions of modern farming and will act for the common good.
More details are available by visiting www.fawc.org.uk/reports.htm
Group faces up
to IT challenge
The UK pig industry is renowned for its ‘self-help’ and ‘can-do’ mindset.
A group of 23 movers and shakers within the pig industry has made the first move in focusing on the new opportunities arising from increased availability of production data because of breakthroughs in information technology.
Pig improvement via information technology (PIVIT) is the objective of this go-ahead group and has been made possible because of the widespread access to the internet on modern pig farms.
Within agriculture, the pig industry was at the forefront of computerised recording because of the need to store and interpret masses of data. Consequently, the link-up to the global information highway has been a painless transition for those in the pig industry for the long term. State of the art production monitoring software is now available and this facilitates real-time recording of production data relating to temperature, feed, water, energy, growth rate and pig flow. If this information could be shared within a central knowledge resource - such as a ‘PIVIT Bureau’ - it could be used as a spring-board for further improving the efficiency of pig production.
Those supplying the global market place are very much aware of the traceability needs and production and welfare standards of European consumers.
It has already happened in the poultry industry and it seems increasingly likely that high quality pork products destined for the UK market will be produced and processed in ‘less developed’ countries.
IT knows no international or cultural boundaries. Those committed to the global pig market are likely to set up shop featuring highly efficient pig production and processing facilities in distant countries where land is cheap and plentiful, planning constraints less stringent and labour costs lower. In effect, complacency and inertia could result in the UK pig industry being technologically leap-frogged.
The PIVIT initiative is a pro-active strategy which aims to keep the UK pig industry up with, or ideally, ahead of play. It could do this by making the very best of its production data and the new-found scope to electronically share it for the mutual benefit of others. It’s still early days but the ‘gang of 23’ has representatives from pig production, the feed industry, pig building companies, environment control and feed equipment specialists and those who will provide the pig genes of the future. If the industry can rise to the PIVIT challenge, the benefits would be widespread. Best practice would be shared, pig production efficiency would increase and staff would be better informed and fired-up as they embraced technology.
Pig health would benefit since any dips in production efficiency would be identified at an early stage. Furthermore, better understanding of ‘pig flow’ would ensure more appropriate stocking regimes and throughput strategies. There would also be an environmental benefit in that energy would be used more efficiently and there would be less wastage of water.
As yet PIVIT is but a talking shop but those doing the talking have a good track-record for delivery and know what they are about. Those at the forefront are exploring sources of funding and it is crucial that the pig industry gets itself geared-up for the future. In particular, manufacturing industries outside agriculture are already reaping the benefits offered by IT. These days a call-out for the repair of a domestic washing machine usually results in a visit from a laptop carrying technician. Given this reality of modern life, it is not before time that the technical leaders of the pig industry are trying to exploit the benefits of the IT challenge.
For further information about PIVIT contact Hugh Crabtree - 0118 988 9093 or email hugh@farmex.co.uk
Tribune Extra
TribuneEXTRA provides a unique editorial opportunity to companies and organisations seeking to set out the detail behind new products, the progress of aims and objectives or offer reasoned views on issues of interest to the UK pig industry and food chain.