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New CPEPC Egg Sector Manager - André Patry G-20 Reconfirms Commitment to an Open Global Economy Projected US Fourth-Quarter Broiler Slaughter Down 5% New Insurance Policy For Salmonella - UK Russia Plans To Cut 2009 Poultry Import Quotas Tyson CEO, Poultry Export Market 'Difficult' In 4Q Slow Down Of Organic Market - USA Notice to Importers - Turkey - 2009 Prime Equipment Group Named Distributor for FoodCraft Conferences, Courses and Workshops
New CPEPC Egg Sector Manager - André Patry André Patry joined the CPEPC staff on November 17th as our Egg Sector Manager. André comes to Council from an agricultural background, most recently working with Agricorp, an agency of the government of Ontario that delivers government business risk management programs, partnering with industry and government to help producers manage financial, food safety, market security and environmental risks. André had worked with Agricorp and OMAFRA for the past 6 years, assuming increasingly senior roles – the most recent as Manager of Product Design & Policy. As such André was Agricorp’s inter-government policy lead tasked with building on their working relationship with OMAFRA, AAFC and other provincial governments across Canada. André will work with Brian Dahms in our Mississauga office for the next month or two, learning all the intricacies of the egg grading and processing businesses from someone who knows it as well as anyone in Canada. As Brian moves toward retirement in the new year, our plan will be to close the Mississauga office and André and his family will move to Ottawa. André had an opportunity to meet some of our Egg Sector members a few weeks ago at their sector meeting in Ottawa and is looking forward to meeting more members over the course of the upcoming weeks and months. You can contact André at the Mississauga office or at his e-mail address: andrepatry@cpepc.ca.
The Canadian Hatching Egg Producers (CHEP) held their Board of Directors meetings in Ottawa from November 18th through to November 20th. The meeting was held at their new office location at 21 Florence Street – a very impressive complex that also houses the Canadian Federation of Agriculture (CFA), Egg Farmers of Canada (EFC) and the Dairy Farmers of Canada (DFC). Although there are presently 4 member provinces (British Columbia, Manitoba, Ontario and Quebec), Saskatchewan has signed a service agreement with CHEP earlier in the year. Alberta also agreed to sign a service agreement that was finalized, approved by the CHEP Board and signed at the meetings held this week. CHEP’s plan is to have both provinces included in their FPA as soon as all the provincial and federal regulations will allow. CHEP’s Advisory Committee recognized and agreed that the market conditions needed improvement and increased costs will have to be recouped by all sectors of the industry in 2009. As a result, the majority of the committee agreed on a 2009 allocation recommendation of 1,019 million kilograms for the chicken market, which was approved unanimously by the CHEP Board of Directors the following day. During the open session, there were presentations from UPA of Quebec on their Food Sovereignty Coalition initiative, as well as, from AAFC on Business Risk Management / Agri Recovery. The provincial representatives along with National Farm Products Council (NFPC), CPEPC, CHF, AAFC and DFAIT provided updates on the issues that were taking place within their offices. DFAIT also presented their new Deputy Director, Jay Allen, who will be involved in the broiler hatching egg TRQ issues as well as chicken, turkey and table eggs TRQ’s. G-20 Reconfirms Commitment to an Open Global Economy As a result of the G-20 Summit on Financial Markets and the World Economy, a declaration was released that spoke to, among other things, root causes of the crisis, common principles, actions to be taken and a commitment to an open global economy. The declaration contains 16 numbered paragraphs as well as a dozen others that list medium and long term actions, and can be found at this link. Of importance to WTO negotiators is paragraph 13 within the Commitment to an Open Global Economy section, which reads: We underscore the critical importance of rejecting protectionism and not turning inward in times of financial uncertainty. In this regard, within the next 12 months, we will refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organization (WTO) inconsistent measures to stimulate exports. Further, we shall strive to reach agreement this year on modalities that leads to a successful conclusion to the WTO's Doha Development Agenda with an ambitious and balanced outcome. We instruct our Trade Ministers to achieve this objective and stand ready to assist directly, as necessary. We also agree that our countries have the largest stake in the global trading system and therefore each must make the positive contributions necessary. In order to "reach an agreement on modalities this year", a Ministerial meeting would need to be called soon. If that happens it could take place during either the weeks of December 8th or 15th. CPEPC will keep members apprised of any developments.
The National AI surveillance program continues to move along without incident. By the end of last week over 500 farms had been selected and sampled with results available from more than 450 samples. All results thus far are negative. Sampling and testing will need to continue into December to meet the proposed sample size and compensate for the later than anticipated start in August. The CFIA has released the first issue of a bilingual CanNAISS newsletter specifically for CFIA personnel, veterinarians and the poultry industry as a means to communicate updates. The newsletter is somewhat technical in content and therefore not intended for the general public. The first issue, available through the CPEPC website, describes how CanNAISS was designed. Link to the November 2008 CanNAISS Newsletter here. CanNAISS Newsletter English CanNAISS Newsletter French Projected US Fourth-Quarter Broiler Slaughter Down 5% The U.S. broiler industry has responded to high feed costs and relatively low chicken meat prices by making significant cutbacks in chick placements, according to Stacey Edwards, manager, feed center of excellence, Agri Stats Inc. The total live weight of broilers slaughtered in the fourth quarter of 2008 is expected to be 5% below the same quarter in 2007. Slaughter volume is expected to be down 4%, 3% and 3% in the first, second and third quarters, respectively, in 2009, before increasing by 2% in the fourth quarter. Edwards presented these Express Markets Inc. estimates at the Grain Forecast and Economic Outlook in Atlanta. She said that industry losses are expected to bottom out in the third quarter of 2008 and that profitability should return by the middle of 2009. Current losses are the result of increases in energy, feed and freight costs as well as ample meat supplies and poor overall economic conditions. She said that grain and energy costs have moderated over the last few weeks to help on the cost side. Also, the industry is taking steps to reduce supply of chicken meat, and this will improve poultry meat prices, according to Edwards. “The cuts are real, but are they deep enough to restore profitability?” she said. Watt Poultry
New Insurance Policy For Salmonella - UK A new insurance service has been launched by UK farmer co-op EggSell. This policy allows egg producers protection from AI and Salmonella being detected in their flocks. Salmonella rules in the UK change in January 2009, which could have financial consequences for egg producers. If Salmonella enteritidis or Salmonella typhimurium is detected in flocks, eggs may not go for human consumption unless they have been heat-treated to guarantee the elimination of the strains of salmonella. The financial impact of this restriction of the sale of fresh shell eggs from infected flocks is a cause for concern to the co-op, particularly for new producers. It is reported that this prompted the co-op to launch what it believes to be the first industry-wide policy against loss of income from salmonella and avian influenza. For salmonella, policies are priced from 5.5p/bird, and for avian flu at 4.5p/bird. These are underwritten within the Lloyds insurance market and covers loss of income for up to 52 weeks coupled with a percentage of DEFRA testing costs up to an aggregate limit per farm. EggSell founder Stewart Elliott: "We've invested a lot of time researching the market and trying to find a policy that benefits the egg industry as a whole and we're extremely pleased that leading farm insurance brokers Thompson and Richardson shared our vision and helped us to realise our goal of delivering a comprehensive policy for less than the cost of an egg per bird." www.worldpoultry.net Russia Plans To Cut 2009 Poultry Import Quotas Russia plans to cut 2009 import quotas on poultry by 300,000 tonnes and pork by 200,000 tonnes, the agriculture minister said on Monday, as Prime Minister Vladimir Putin urged the government to speed up reform. "We can replace these quantities with our own production," Agriculture Minister Alexei Gordeyev said at a government meeting in response to a question from Putin. The long-awaited quota reduction is designed to help domestic producers and could hit suppliers in the United States, who last year exported nearly $1 billion worth of poultry, mainly frozen chicken legs, and other meat products to Russia. Russia, under an agreement that runs from 2005 until 2009, limits meat imports through a system of tariff quotas that increase every year. Putin urged the government on Monday to speed up the process of revising the quotas. Economy Minister Elvia Nabiullina told the same meeting that a decision on the import quota cuts should be taken by Dec. 1. This year, Russia permitted 1.21 million tonnes of tariff-free poultry imports, of which the United States can supply 901,400 tonnes. In August, Moscow banned imports from 19 U.S. producers, citing health and safety grounds. www.reuters.com
Tyson CEO, Poultry Export Market 'Difficult' In 4Q The top executive at Tyson Inc. (TSN) said pricing and export conditions in the U.S. poultry market have deteriorated in the fourth quarter. Oversupply and high feed prices have weighed on the domestic poultry sector, driving some producers such as Pilgrim' Pride Inc. (PPC) to the brink of bankruptcy. Dick Bond, chairman and chief executive of the second-largest U.S. poultry producer by revenue, said on a conference call that poultry customers have expressed concern about the financial health of some suppliers. Tyson's fiscal fourth-quarter earnings were hit by losses in its own poultry segment, tempering strength in beef and pork. Bond cited the role of the dollar's rise and lingering trade disputes for hampering export sales, with the Russian market experiencing particular difficulties. money.cnn.com Slow Down Of Organic Market - USA Market growth rates for organic food and drink will drop as the economy battles. This statement has been made due to new research from Mintel International. Americans are spending less on organic: "Rising food and gas prices, the credit crunch and economic uncertainty have deeply affected people’s shopping habits. Across the board, Americans are spending less and ‘organic versus traditional’ is a decision many people are thinking about carefully," said Marcia Mogelonsky, senior analyst at Mintel. Mintel announced that the market for organic foods and beverages will reach $7.2 billion in 2008, which is a rise of more than 14% from $3 billion in 2003. However, year-over-year, Mintel has seen sales growth slowing down. Increased food prices and private label brands are major cost-related challenges for organic manufacturers. The price of all food at home increased more than 7% over the last year, Mintel further stated. Economic struggles will undoubtedly change the way organic food and drink is sold. But we don’t expect people to completely stop buying organics. We anticipate more subtle changes such as the formerly all-organic shopper who returns to traditional cookie brands while sticking with organic produce. These small changes will slow market growth," Mogelonsky stated. www.worldpoultry.net
Notice to Importers - Turkey - 2009 The Notice to Importers of Turkey and Turkey Products has been released. The only major change from last year is the requirement for federal HACCP. Deadline is December 19th. Prime Equipment Group Named Distributor for FoodCraft Prime Equipment Group, Inc. has been named as the exclusive Canadian equipment distributor for FoodCraft, Inc. Based in Topeka, Kansas, FoodCraft manufactures practical and dependable processing equipment for the chicken and turkey industries. Please contact sales@primeequipmentgroup.com; Buzz Samuelson Tel: (614) 592-0629 or Ken Van Dyk Tel: (519) 472-2846 for more information.
Conferences, Courses and Workshops
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