Feedstuffs is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Sitemap


Articles from 2015 In August


Industry waits to view FSMA rules

The Food and Drug Administration has submitted the final preventive controls rules for human and animal food to the Federal Register for publication, as required by the court. However, industry stakeholders have not seen a final version and are still waiting to see what the final rule contains.

FDA was to finalize its rule no later than Aug. 30 for preventative controls for human and animal food. FDA said in a statement on its Website that it is “committed to sharing information about the final rules and how food facilities can comply” as soon as they’re able to do so.

Leah Wilkinson, American Feed Industry Association’s director of ingredients, pet food and state affairs, said, “We still have not seen the rules and must continue to wait an undetermined amount of time until the pre-publication is available for viewing.”

One of the major concerns with the animal feed rule was the strong similarities between the human food rule and animal food current good manufacturing practices (CGMP). The National Grain and Feed Assn. said the re-proposal seems to make significant revisions to the CGMPs that tailor requirements to animal feed and pet food processes.

The other major component of the animal feed control is the preventative control portion, which NGFA too said FDA’s changes reflect comments presented by the feed industry. Previously the rule was written which essentially called for an approach similar to what’s required under a HACCP (hazard analysis and critical control points) plan. The revisions made in later 2014 changed the language and provided additional flexibility and clarifies the most significant hazards.

For more information on the most recent proposal, click here.

Majority of rented acres owned by non-farming landlords

Majority of rented acres owned by non-farming landlords

Agricultural producers rented and farmed 353.8 million acres of farmland, according to the results of the 2014 Tenure, Ownership, and Transition of Agricultural Land (TOTAL) survey results released Aug. 31 by the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS). Of these acres, 80% are owned by non-farming landlords.

According to the survey results, rented farmland acres, combined with buildings on this land, are valued at more than $1.1 trillion. TOTAL counted approximately 2.1 million landlords with various ownership arrangements. In 2014, all of the landlords combined received $31.2 billion in rental income while incurring $9.2 billion in total expenses.

A tenth of the 911 million U.S. farmland acres outside of Alaska and Hawaii, or about 91.5 million acres, is slated for ownership transfer in the next five years, not including farmland that is in or is expected to be put into wills. Landlords expect to keep or put nearly 48% of these acres in trusts. Only 21 million acres of land are expected to be sold to a non-relative, while 26 million acres are expected to be sold to a relative or given as a gift. This means that only a small percentage of farmland will be available for new entrants into the farming sector.

“Farmland has always been a valuable resource, but what we see in the most recent TOTAL results is the emergence of farmland as a future investment,” said Joseph T. Reilly, NASS administrator. “More families are creating trust ownerships to make sure land remains in their family for farming or as an investment.”

In addition to looking at farmland, TOTAL also provides a glimpse into demographic information for 1.4 million non-farming individuals and principals in partnerships arrangements, also known as principal landlords. According to the findings, the average age of these landlords is 66.5 years old. This age exceeds that of the average farmer, who is 58.3 years old, according to the most recent Census of Agriculture. Only 18% of all principal landlords were under 55 years old. Nearly 45% of all of the principal landlords have never farmed.

TOTAL, which NASS conducted in cooperation with USDA’s Economic Research Service (ERS), surveyed farmland ownership in 48 contiguous states. It is the only NASS survey that collects agricultural landlord data. The survey is expected to greatly contribute to research and policy analysis. Farmland ownership and decisions stemming from ownership arrangements are key issues for which ERS serves as a primary source of information.

“Access to land is one of the biggest challenges facing agricultural producers, particularly beginning farmers,” said Mary Bohman, Economic Research Service administrator. “TOTAL gives us a chance to demonstrate the extent of the land access issue and provide realistic projections of future land availability for purchase or for rent.”

View the full report.

DuPont Pioneer expands multi-crop research center in Indiana

DuPont Pioneer recently announced the expansion of its Windfall, Ind., research center to better serve local growers and support global breeding and testing programs in corn, soybeans and wheat.

“DuPont Pioneer is growing its network of multi-crop research centers to leverage collaboration between crop researchers, maximize resources and advance our research locally and more quickly than ever before,” said Carlos Hentschke, DuPont Pioneer director for the Heartland business unit. “The expansion at the DuPont Pioneer Windfall research center will directly benefit growers in Indiana, across the eastern United States and areas out west.”

The Windfall multi-crop research center expansion includes 15,000 sq. ft. of indoor work space and 9,600 sq. ft. of equipment and machinery storage. The center added three new breeding programs.

Pioneer hosted local growers, industry representatives, employees and government officials during a facility open house to view the expansion and hear from DuPont leaders.

“The Windfall multi-crop research center will enable the deployment of advanced breeding technologies, such as doubled haploids and molecular breeding for development of high-quality, locally adapted hybrids,” said Paul Stephens, DuPont Pioneer senior director for Soybean Research. “The research that will take place here is an important part of the DuPont strategic focus on agriculture and nutrition against the backdrop of an increasing world population and demand for more food.”

The investment in Windfall indicates significant support from DuPont and Pioneer to lead in scientific innovation and advanced crop development. Recent global R&D facility investments include plans to build a $35 million soybean research facility at its Stine Haskell Research Center in Newark, Del., and a new research center in Lethbridge, Alberta, aimed at developing ultra-early maturity corn hybrids for western Canada. In November 2014, Pioneer unveiled its multi-crop research center in Hyderabad, India. Windfall serves as multi-crop hub for the eastern United States.

AVMF favorite vet contest halted due to cyber-bullying

The American Veterinary Medical Foundation (AVMF) announced Aug. 26 that it decided, reluctantly, to halt its "America's Favorite Veterinarian Contest" and declare all 20 finalists "America's Favorite Veterinarians" following a vicious cyber-bullying attack that disrupted and contaminated the final election process.

According to AVMF, activists opposed to cat declawing "hijacked" the contest, resorting to cyber-bullying the majority of the contest finalists — those who believe that declawing cats remains a last-resort, but viable, alternative to separating pets from their owners when the animal's behavior cannot be controlled any other way.

AVMF said one contestant, for example, was called "a butcher, a mutilator, a hack, an animal hater, a disgrace to the profession," while other contestants were subjected to the circulation of fraudulent negative advertisements, negative reviews and threatening phone calls.

"Apparently many of the so-called animal activists have no problem practicing cruelty to human beings," AVMF board chair Dr. John Brooks said. "We have always respected the rights of others to have differing opinions, but to do so in a way that is personally destructive and disruptive is inexcusable. We ask all of the activist groups whose members and supporters engaged in such behavior to ask them to stop doing so immediately."

AVMF will be sending the 20 finalists special certificates of recognition.

"We deeply regret that our contestants had to endure this abuse and intend to take proactive steps in the future to prevent this type of interference from impacting our activities," Brooks added.

Ingredient market prices, 8/31/15

Ingredient market prices, 8/31/15

The following prices, which include delivery, were obtained Aug. 26 from feed and grain vendors in the U.S. and Canada. The prices represent current trading values but are not guaranteed. Second column shows the amount of change since the previous week. Prices of certain products can vary depending on the processing method used. N-Nominal. N/A-Price not available.

OILSEED PRODUCTS

 

 

(dollars per ton)

 

 

Soybean meal

 

 

(high-protein)

 

 

Atlanta

455.00

-13.00

Boston

375.00

-

Buffalo

385.00

6.00

Chicago

349.00

-5.00

Delmarva

N/A

-

Fayetteville NC

465.00

-13.00

Ft. Worth

387.00

-4.00

Kansas City

340.00

-

Los Angeles

389.00

4.00

Memphis

N/A

-

Minneapolis

351.00

-

Okeechobee

455.00

-13.00

Portland

386.80

-12.50

San Francisco

389.00

4.00

Twin Falls

402.00

-

Soybean meal

 

 

(low-protein)

 

 

Atlanta

445.00

-13.00

Boston

370.00

-

Buffalo

381.00

6.00

Chicago

337.00

-5.00

Delmarva

N/A

-

Fayetteville NC

455.00

-13.00

Ft. Worth

N/A

-

Kansas City

340.00

-

Los Angeles

368.00

5.00

Memphis

N/A

-

Minneapolis

N/A

-

Okeechobee

445.00

-13.00

Portland

N/A

-

San Francisco

368.00

5.00

Soybean hulls

 

 

Atlanta

190.00

-8.00

Buffalo*

170.00

5.00

Chicago

133.00

-

Fayetteville, NC

210.00

-8.00

Ft. Worth*

175.00

-

Los Angeles

172.00

7.00

Minneapolis

145.00

25.00

Okeechobee

190.00

-8.00

San Francisco

172.00

7.00

Twin Falls

N/A

-

* unpelleted

 

 

Whole cottonseed

 

 

Atlanta

285.00

-15.00

Buffalo

330.00

-10.00

Chicago

320.00

-8.00

Delmarva

N/A

-

Fayetteville NC

285.00

-15.00

Ft. Worth

350.00

-

Los Angeles

399.00

-28.00

Lubbock

320.00

-

Memphis

290.00

-5.00

Okeechobee

322.00

-15.00

Portland

410.00

-22.50

San Francisco

399.00

-28.00

Twin Falls

385.00

-

Cottonseed meal

 

 

Atlanta

305.00

-

Chicago

328.00

-5.00

Delmarva

305.00

-

Fayetteville NC

305.00

-

Ft. Worth

330.00

-5.00

Kansas City

340.00

5.00

Los Angeles

N/A

-

Lubbock

280.00

-5.00

Memphis

290.00

-

Okeechobee

315.00

-

San Francisco

291.00

-12.00

Cottonseed hulls

 

 

Atlanta

240.00

-

Chicago

235.00

-

Fayetteville NC

240.00

-

Ft. Worth

180.00

-

Okeechobee

277.00

-

Los Angeles

N/A

-

Lubbock

155.00

-

San Francisco

N/A

-

Canola meal

 

 

Buffalo

281.00

11.00

Minneapolis

279.00

-

Los Angeles

277.00

2.00

Montreal

278.00

-7.00

Portland

272.80

1.50

San Francisco

277.00

2.00

Twin Falls

285.00

-

Vancouver

220.00

-

Sunflower seed meal

 

 

Fargo

220.00

-

Minneapolis

220.00

-

Linseed  meal

 

 

Atlanta

N/A

-

Chicago

305.00

-

Fargo

270.00

-

Fayetteville NC

N/A

-

Ft. Worth

306.00

-

Kansas City

285.00

5.00

Minneapolis

280.00

-

Safflower meal

 

 

Los Angeles

N/A

-

San Francisco

148.00

-2.00

ANIMAL BYPRODUCTS

 

 

(dollars per ton)

 

 

Meat and bone meal

 

 

(ruminant)

 

 

Buffalo

N/A

-

Chicago

400.00

5.00

Delmarva

455.00

-

Fayetteville NC

440.00

-20.00

Ft. Worth

380.00

-10.00

Kansas City

370.00

-10.00

Los Angeles

320.00

-

Memphis

420.00

-20.00

Minneapolis

370.00

-5.00

Portland

315.00

-10.00

San Francisco

320.00

-

Meat and bone meal

 

 

(porcine)

 

 

Fayetteville NC

440.00

-10.00

Los Angeles

362.80

-

Memphis

430.00

-10.00

Minneapolis

400.00

-10.00

Flash-dried blood meal

 

 

(ruminant)

 

 

Fayetteville NC

1175.00

-

Los Angeles

1275.00

-100.00

Memphis

1150.00

-

Minneapolis

1300.00

-50.00

Flash-dried blood meal

 

 

(porcine)

 

 

Fayetteville NC

1225.00

-

Memphis

1200.00

-

Minneapolis

1325.00

-75.00

Poultry byproduct meal

 

 

(feed grade)

 

 

Atlanta

N/A

-

Fayetteville NC

390.00

-10.00

Ft. Worth

325.00

-25.00

Kansas City

N/A

-

Los Angeles

441.00

-

Memphis

390.00

-10.00

Poultry byproduct meal

 

 

(pet food grade)

 

 

Memphis

525.00

-25.00

Fayetteville NC

525.00

-25.00

Hydrolized feather meal

 

 

Atlanta

580.00

120.00

Delmarva

475.00

-

Fayetteville NC

460.00

-

Ft. Worth

555.00

-15.00

Kansas City

600.00

-10.00

Los Angeles

N/A

-

Memphis

460.00

-

Minneapolis

575.00

25.00

Menhaden fish meal

 

 

Atlanta

N/A

-

Buffalo

N/A

-

Chicago

1550.00

-

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

N/A

-

Memphis

1400.00

-

Minneapolis

1550.00

-

Twin Falls

N/A

-

Blended tuna meal

 

 

Los Angeles

N/A

-

San Francisco

N/A

-

Anchovy  meal

 

 

Los Angeles

N/A

-

San Francisco

N/A

-

ANIMAL FAT, GREASE

 

 

(cents per pound)

 

 

Prime Tallow

 

 

Chicago

24.50

-

Ft. Worth

N/A

-

Los Angeles

23.50

-0.50

San Francisco

22.25

-0.25

Yellow grease

 

 

Buffalo

N/A

-

Chicago

25.00

-

Delmarva

N/A

-

Fayetteville NC

22.00

-3.00

Ft. Worth

23.00

-0.50

Kansas City

28.50

-0.25

Los Angeles

22.50

-0.50

Memphis

22.00

-3.00

Minneapolis

20.50

-0.50

San Francisco

21.25

-0.25

Choice white grease

 

 

Chicago

26.00

-

Minneapolis

24.00

-

Bleachable fancy tallow

 

 

Buffalo

N/A

-

Chicago

28.50

-

Ft. Worth

28.00

-2.00

Los Angeles

N/A

-

Minneapolis

29.00

-1.00

San Francisco

N/A

-

Vegetable-animal blend

 

 

Ft. Worth

23.50

-1.00

Los Angeles

22.13

-

Minneapolis

21.50

-1.00

San Francisco

22.13

-

Poultry grease

 

 

(feed grade)

 

 

Delmarva

21.00

-1.00

Fayetteville NC

20.00

-2.00

Memphis

20.00

-2.00

Poultry grease

 

 

(pet food grade)

 

 

Memphis

28.00

-2.00

Fayetteville NC

28.00

-2.00

GLUTEN, HOMINY

 

 

(dollars per ton)

 

 

Corn gluten meal

 

 

Buffalo

623.00

-

Chicago

570.00

2.00

Kansas City

630.00

15.00

Los Angeles

620.00

-

Corn gluten feed

 

 

Buffalo

148.00

3.00

Chicago

120.00

-4.00

Fayetteville NC

150.00

-30.00

Kansas City

160.00

-

Okeechobee

170.00

-30.00

Twin Falls

190.00

-

Wahpeton

N/A

-

Hominy feed

 

 

Atlanta

175.00

-

Boston

135.00

-

Buffalo

150.00

-1.00

Chicago

93.00

7.00

Fayetteville NC

N/A

-

Kansas City

110.00

-

Los Angeles

168.00

-4.00

Okeechobee

N/A

-

San Francisco

168.00

-4.00

Twin Falls

181.00

-

BREWERS, DISTILLERS

 

 

(dollars per ton)

 

 

Brewers dried grains

 

 

Chicago

N/A

-

Kansas City

N/A

-

Malt Sprouts

 

 

Chicago

150.00

-

Milwaukee

145.00

-

Winona, Minn

145.00

-

Distillers dried grains

 

 

Atlanta

190.00

-5.00

Boston

170.00

-

Buffalo

165.00

2.00

Chicago

145.00

-5.00

Fayetteville NC

190.00

-5.00

Kansas City

120.00

-

Los Angeles

185.00

-12.00

Minneapolis

125.00

-5.00

Okeechobee

200.00

-5.00

Portland

188.00

-6.00

San Francisco

185.00

-12.00

Twin Falls

200.00

-

Brewers yeast

 

 

(dollars per pound, sacked)

 

 

Chicago

0.75

-

Milwaukee

0.75

-

Minneapolis

0.75

-

ALFALFA

 

 

(dollars per ton)

 

 

Dehydrated pellets

 

 

(17% protein)

 

 

Alfalfa Center

275.00

-

Buffalo

375.00

-

Chicago

340.00

-

Kansas City

275.00

-

Los Angeles

N/A

-

Minneapolis

245.00

-

Toledo

385.00

-

San Francisco

N/A

-

Suncured pellets

 

 

(15% protein)

 

 

Atlanta

N/A

-

Ft. Worth

200.00

-5.00

Kansas City

190.00

-

Los Angeles

N/A

-

Portland

285.00

-

San Francisco

N/A

-

WHEAT MILLFEEDS

 

 

Shorts

 

 

Chicago

135.00

-

Ft. Worth

N/A

-

Los Angeles

132.00

-2.00

Millrun

 

 

Los Angeles

123.00

-2.00

Portland

145.00

-20.00

San Francisco

N/A

-

Twin Falls

140.00

-

Bran

 

 

Buffalo

128.00

-

Chicago

135.00

-

Los Angeles

127.00

-2.00

Minneapolis

N/A

-

Middlings

 

 

Buffalo

98.00

-

Chicago

125.00

-

Fayetteville NC

N/A

-

Ft. Worth

160.00

5.00

Kansas City

95.00

5.00

Los Angeles

130.00

-2.00

Memphis

160.00

5.00

Minneapolis

120.00

-

Okeechobee

N/A

-

DAIRY BYPRODUCTS

 

 

(dollars per hundredweight)

 

 

Dried skim milk

 

 

Ft. Worth

77.50

2.00

Minneapolis

77.50

2.00

Dried buttermilk

 

 

Ft. Worth

80.00

4.75

Minneapolis

80.00

4.75

Whole whey

 

 

Chicago

23.00

-1.00

Ft. Worth

22.50

-0.50

Kansas City

53.00

-

Minneapolis

22.50

-0.50

Whey protein concentrate

 

 

Ft. Worth

59.00

-5.63

Milwaukee

59.00

-5.63

Lactose

 

 

Ft. Worth

19.00

-

Minneapolis

19.00

-

OATS, RICE PRODUCTS

 

 

(dollars per ton)

 

 

Rolled oats

 

 

Chicago

475.00

-

Kansas City

365.00

-5.00

Minneapolis

468.00

-

Crimped oats

 

 

Chicago

425.00

-

Kansas City

300.00

-

Minneapolis

417.00

-

Pulverized oats

 

 

Chicago

140.00

-

Minneapolis

138.00

-

Reground oat feed

 

 

Chicago

75.00

-

Kansas City

55.00

-

Minneapolis

72.00

-

Oats

 

 

(dollars per bushel)

 

 

Buffalo

2.80

-0.15

Minneapolis

2.81

-

Portland*

250.00

-7.50

(*per ton)

 

 

Rice bran

 

 

Atlanta

N/A

-

Ft. Worth

145.00

10.00

Freeport

N/A

-

Kansas City

100.00

-

Memphis

N/A

-

San Francisco

108.00

2.00

Stuttgart, Ark.

N/A

-

Rice millfeeds

 

 

Atlanta

N/A

-

Ft. Worth

90.00

5.00

Freeport

N/A

-

Kansas City

85.00

-

Memphis

N/A

-

Stuttgart, Ark.

N/A

-

Rice hulls

 

 

Ft. Worth

55.00

5.00

Kansas City

50.00

-

DRIED PULP

 

 

(dollars per ton)

 

 

Citrus pulp pellets

 

 

Atlanta

195.00

-

Fayetteville NC

205.00

-

Okeechobee

170.00

-

Los Angeles*

N/A

-

*(sold wet)

 

 

Beet pulp pellets

 

 

Atlanta

N/A

-

Boise

N/A

-

Chicago

220.00

-

Fayetteville NC

N/A

-

Kansas City

450.00

-

Minneapolis

160.00

-

Portland

170.00

-5.00

Saginaw

175.00

-

Beet pulp shreds

 

 

Mpls (sacked)

340.00

-

Los Angeles*

145.00

-20.00

San Francisco

N/A

-

Twin Falls

N/A

-

*bulk, wet

 

 

GRAINS

 

 

Barley feed

 

 

Kansas City (bu.)

4.60

-0.10

Los Angeles (cwt)

9.85

0.45

Portland (ton)

177.50

-1.50

San Francisco (cwt)

9.85

0.45

Feed wheat

 

 

Atlanta (bu.)

N/A

-

Fayetteville NC (bu.)

N/A

-

Kansas City (bu)

5.07

-0.18

Los Angeles (cwt)

N/A

-

San Francisco (cwt)

N/A

-

Corn

 

 

(dollars per bushel)

 

 

Atlanta

5.38

0.06

Boston

3.85

-

Buffalo (per ton)

163.00

-3.00

Chicago

3.72

-0.05

Delmarva

3.74

-0.05

Fayetteville NC

5.38

1.87

Ft. Worth

N/A

-

Kansas City

6.71

3.02

Los Angeles*

9.23

-0.04

San Fran (rail)*

9.23

-0.04

San Fran (truck)*

N/A

-

Memphis

3.57

0.06

Minneapolis

3.69

-

Okeechobee

5.61

0.06

Portland (per ton)

173.38

0.13

(*per cwt)

 

 

Milo

 

 

(dollars per bushel)

 

 

Atlanta

N/A

-

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

3.71

-0.02

Los Angeles*

10.71

-0.37

Memphis

3.68

-0.12

*(per cwt.)

 

 

Ground grain screenings

 

 

(dollars per ton)

 

 

Ft.  Worth

440.00

-

Kansas City

60.00

-

OTHER

 

 

(dollars per ton)

 

 

Almond hulls

 

 

Los Angeles

144.00

14.00

San Francisco

100.00

-10.00

Bakery feed

 

 

Atlanta

165.00

-

Buffalo

160.00

-

Fayetteville NC

170.00

-

Memphis

160.00

-

Minneapolis

162.00

-3.00

Feed urea

 

 

Buffalo

N/A

-

Ft. Worth

N/A

-

Los Angeles

N/A

-

Minneapolis

N/A

-

Salt

 

 

Kansas City

58.00

-

Los Angeles

50.00

-

Cane molasses

 

 

Ft. Worth

N/A

-

Houston

150.00

-

Kansas City

195.00

-

Los Angeles

N/A

-

Memphis

N/A

-

Minneapolis

195.00

-

New Orleans

150.00

-

San Francisco

N/A

-

 

Volume:87 Issue:d3

Promotion efforts bolster ethanol exports

Promotion efforts bolster ethanol exports

Promotion efforts bolster ethanol exports
ETHANOL exports this marketing year are expected to be the second largest on record as ethanol export promotion efforts ramp up by the U.S. Grains Council (USGC) and its partners Growth Energy, the Renewable Fuels Assn. and the U.S. Department of Agriculture's Foreign Agricultural Service.

"Efforts to promote increased exports of U.S. ethanol are showing progress, with global ethanol exports during the first 10 months of the current marketing year posting an 11% gain over last year's numbers," USGC chief economist Mike Dwyer said. "The council now expects full-year 2014-15 ethanol exports to reach 850 million gal. and to be valued at $1.9 billion, up from 768 million gal. just last year."

While U.S. exports of ethanol to Canada -- the top international customer -- are down 26% on a volume basis this year, USGC reported that all other major markets have shown increases due to strong demand and competitively priced U.S. ethanol supplies (Figure).

The second- and third-largest importers, Brazil and the Philippines, have grown 71% and 44%, respectively, to import 135 million gal. and 71.2 million gal. of U.S. ethanol. India and the United Arab Emirates round out the top five export markets for U.S. ethanol.

Other markets with significant growth during the first 10 months of 2014-15 include South Korea, Mexico, the European Union and Tunisia, USGC said.

Korea, which imports ethanol primarily for industrial purposes, has increased imports of U.S. ethanol by 94% to 42.3 million gal., and Mexico's imports have grown by 17% to 26.1 million gal. Tunisia's ethanol imports have increased 224% over 2014 tallies to a total of 30.7 million gal.

Despite stiff antidumping duties imposed on U.S. ethanol entering the EU, USGC said U.S. exports to the region are up 27% in the first 10 months compared to 2013-14 volumes, totaling 41.5 million gal.

"While this success is a good starting point, there is still much work to be done to keep ethanol exports growing," USGC noted. "The council and its partners have plans for ongoing work to promote U.S. ethanol as a clean-burning source of fuel to buyers and end users around the globe, including assessments in potential new markets, buyer team visits to the U.S. and a series of workshops focusing on the environmental and economic benefits of ethanol use."

Volume:87 Issue:d3

National equine vet industry economic report released

National equine vet industry economic report released

RESULTS of the "National Equine Veterinary Economic Study" provide an in-depth assessment of the equine veterinary industry, including the current status and economic trends of veterinary practices and attitudes of veterinarians.

Results of the study are being released in a series of six monthly topics, and the first release provides a financial review of the equine veterinary industry for 2007-12.

Data from the study reflect, among other things, a significant downturn in key economic indicators for equine practices from 2008 to 2010, including revenues, invoices and the number of active patients and clients. This was followed by a rebound in 2011 and 2012, but not a complete recovery.

Sponsored by Merck Animal Health and Henry Schein Animal Health, in partnership with the American Association of Equine Practitioners (AAEP), the study was led by equine veterinary market research specialist and practice management consultant Dr. Edward L. Blach, with assistance from Dr. Andrew R. Clark, a leading equine practice management consultant.

The study also included an evaluation of current management practices to help identify ways equine practices can operate in a more profitable manner.

"For example, more work is being concentrated on fewer clients and fewer horses, which is a significant change to the business landscape -- impacting business practices, revenue streams and client management," Blach said.

"Until now, little equine veterinary economic (information) has been available to help veterinarians develop improved strategies to grow their practices," noted Brett Whitehead, Merck Animal Health director of equine business. "This study puts better, more practical information in the hands of equine veterinarians, which, in turn, gives them greater confidence to invest in efforts that will support growth of their business."

Indeed, Henry Schein national director of equine sales Jeannie Jeffery added, "The equine industry has weathered a tough economic environment since 2007, and it has certainly taken its toll on equine veterinary practices. Despite these challenges, equine veterinarians are cautious but seem to be committed to the profession."

Equine veterinarians interested in learning more and receiving updates on the study results, as well as access to valuable economic and practice management tools and information, may visit IsMyPracticeHealthy.com to register and be added to the mailing list.

Data were collected from nearly 500 AAEP member-veterinarian survey respondents, including practice owners, veterinary associates, academic veterinarians, industry veterinarians, students and retired veterinarians.

 

Horse ownership

On the horse ownership side, on the other hand, the equine industry has found stability and shows positive signs of growth, especially among young adult horse owners and event participants, according to results of a survey by American Horse Publications (AHP) that was sponsored by Zoetis.

Among the highlights, the third online nationwide equine industry survey found:

* For 2016, 88.6% of respondents expect to own or manage the same number of horses or more horses.

* This year, 93% of respondents plan to enter the same or more competitions than last year, and 95.1% expect to compete in the same or more events in 2016.

* A high number of respondents (84.7%) rely on their veterinarians for vaccination advice, and respondents are increasingly relying on veterinarians for deworming advice.

"It appears the industry is beginning to recover from the Great Recession of 2008, as indicated by the percentage of respondents participating in the industry either through owning/managing horses or competing with them at the same or greater levels than three years ago," said University of Kentucky associate professor of agricultural economics Jill Stowe, who analyzed the data and consulted on the results.

The survey was conducted from Jan. 6 through April 1 and included responses from more than 10,600 horse owners. It sought to gauge participation trends and management practices in the U.S. equine industry, to identify critical issues facing the equine industry as perceived by those who own or manage horses and to better understand issues pertaining to horse health and nutrition.

AHP conducted similar surveys in 2012 and 2010.

The 2015 survey results show that 70.6% of respondents own or manage the same number of horses as they did last year, suggesting a continued increase in overall industry stability. In addition, 20.7% of respondents expect to own or manage more horses in 2016, while 11.4% expect to own fewer horses. In the 2012 survey, only 18.7% said they expected to own or manage more horses the following year, and 14.7% expected to have fewer.

Looking at horse ownership by age, 22.1% of respondents ages 18-24 reported that they own or manage more horses this year than they did in 2014, while only 7.6% of respondents age 65 or older reported owning or managing more horses. This pattern is consistent with expectations of horse ownership in 2016, as 36.2% of respondents ages 18-24 said they expect to own or manage more horses than in 2015.

 

Complex relationships

National equine vet industry economic report released
Based on a new question this year, the survey results reflect the complex relationship between people and horses (Figure). Respondents were most likely to view their horses as family members (67.4%), companion animals (62.7%), performance partners (57.6%) and/or best friends (55.9%). A smaller percentage of respondents viewed their horses as an investment (22.4%), livestock animal (21.1%) or employee (7.8%).

Results also show that an estimated one of every three horses owned or managed by respondents is idle, retired or otherwise not working.

Respondents continue to identity veterinarians as integral to their decisions on horse health, including vaccinations and deworming.

Veterinarians continue to have a strong influence over vaccination decisions, with 84.7% of respondents saying they discuss with their veterinarian which vaccinations their horse should receive.

It appears that the influence of veterinarians on deworming approaches is increasing: Compared with previous surveys, there was a slight increase in the percentage of respondents who had a fecal egg count (FEC) conducted and who said their veterinarian is involved in developing their deworming schedule.

Rotational deworming is the most common approach used (55.3%), despite recent recommendations from AAEP to conduct an FEC and deworm based on the results. The latter approach came in second (38.2%), according to the survey. Less than half of respondents (47.5%) indicated that their veterinarian recommended an FEC. Nearly half (46%) of horse owners deworm their horses four to six times per year. Almost 80% of respondents said parasite drug resistance is an issue of concern, similar to 2012.

Overwhelmingly, 88.6% of respondents deworm their own horses, which was nearly identical to the 2012 survey results. However, about half of respondents (48%) indicated that their veterinarian is involved in developing their horses' deworming schedules. This trend has continued to increase, rising from 15.7% in 2010 to 44.3% in 2012.

Volume:87 Issue:32

Farm income continues descent

Farm income continues descent

Farm income continues descent
BOTH net cash income and net farm income are forecasted to decline for the second consecutive year after reaching recent historic highs in 2013, according to farm sector profitability forecasts published last Tuesday by the U.S. Department of Agriculture.

Net cash income is expected to fall 21% in 2015, while the projected 36% drop in net farm income (Figure) would be the largest since 1983 (in both nominal and inflation-adjusted terms).

Livestock receipts could decline by more than 9% ($19.4 billion) in 2015 due to reductions of 29% and 27% in dairy and hog receipts, respectively.

Mitch Morehart, senior agricultural economist at USDA's Economic Research Service, said cattle receipts are down only slightly and still remain strong relative to recent history.

After reaching a record high of $49.3 billion in 2014, milk receipts are expected to drop 29% in 2015 as declining prices more than offset a small expected increase in milk production.

Hog production is expected to expand in 2015 as the industry recovers from porcine epidemic diarrhea virus. However, hog prices are expected to drop sharply.

Poultry and egg receipts are expected to be broadly affected by this year's highly pathogenic avian influenza (HPAI) outbreak, although the effects will be mixed. Since it was first detected in December 2014, HPAI has claimed 48 million birds, with turkeys and egg-laying chickens most vulnerable. The decline in the number of both turkeys and egg-laying chickens is expected to reduce production and place upward pressure on prices, leading to a forecasted 5.2% increase in poultry/egg receipts in 2015.

Relatively few broilers have been infected by HPAI, and U.S. broiler production is expected to increase in 2015. Still, U.S. broiler prices and cash receipts are expected to fall as HPAI-related export bans increase U.S. inventories and take prices lower.

Crop receipts are expected to decrease by more than 6% ($12.9 billion) in 2015, led by a projected $7.1 billion decline in corn receipts, a $3.4 billion drop in soybean receipts and a $1.6 billion drop in wheat receipts.

Since hitting a record high in 2012, corn receipts have fallen 35%. Corn prices are expected to fall further in 2015, while production is also expected to drop slightly relative to 2014. Cash receipts for soybeans and wheat are also expected to decline from 2014 on quantity and price forecasts that are down 8.5% and 13.8%, respectively.

Total production expenses are forecasted to fall for the first time since 2009 — although by less than 0.5% — and would represent only the third year since 2000 that the farm sector spent less than the previous year. The largest declines are expected for energy inputs and feed.

Expenses are projected to increase for labor, interest and property taxes. Morehart said production costs have seen five consecutive years of increases for a cumulative 42% rise since 2009, but they are estimated to decrease $1.5 billion this year.

Morehart noted that for animal and product farm businesses, the average income — especially for dairy and hog farms — will be dramatically lower as a direct result of lower projected cash receipts. Many of the higher expense categories, such as interest and labor, are prominent for dairy and hog producers.

Production expenses are expected to decline less than gross farm income in percentage terms, leading to tighter margins. The forecasted decline in expenses will be driven primarily by reduced spending on feed, fuel and fertilizer, which should outweigh the expected increases in spending on labor, interest and property taxes/fees.

The largest forecasted increase in farm production expenses is for interest outlays, which are up significantly due to expanded farm debt and higher interest rates. Interest paid on debt secured by real estate is expected to increase by almost 23% to just under $12 billion in 2015. Interest payments for non-real estate debt are also expected to increase substantially to $7.5 billion, a 25% increase from 2014.

USDA revised net farm income for 2015 downward from the agency's February forecast to the lowest level since 2006. The changed outlook for net farm income is largely the result of a downward revision in the value of inventory change for crops and a significant increase in capital consumption. These more than offset an upward revision in crop receipts relative to the February projections, USDA explained.

Agriculture Secretary Tom Vilsack said the forecast, although down from record levels, shows that rural America "remains stable and resilient in the face of the worst animal disease outbreak in our nation's history and while the western United States remains gripped by drought."

Vilsack added that the agriculture industry remains fundamentally sound, "supporting and creating good-paying American jobs for millions," with two-thirds of all rural counties gaining jobs over the past year.

Volume:87 Issue:d3

Livestock & poultry cash market comparisons, 8/31/15

Livestock & poultry cash market comparisons, 8/31/15

Livestock and meat ($)

Aug. 26

Aug. 19

6 months ago

Year ago

Steers, Choice, carcass, 550-700 lb., cwt., Omaha

244.24

246.78

246.49

247.41

Steers, Choice, 1,050-1,200 lb., cwt. Southern Plains

147.50A

149.00A

160.00

152.00

Feeder Steers, 600-700 lb., cwt., Oklahoma City

217.75A

232.00A

205.00A

237.25A

Lean Hogs, Carcass, Iowa-Minn. 167-187 lb.(1)

74.49

76.65

63.60

95.68

Feeder Pigs, 40 lb. National Direct Delivered(2)

34.56

32.54

72.66

81.00

SEW Pigs, 10 lb., National direct delivered (per head)

19.04

21.06

47.60

51.77

Choice Beef, cutout, cwt.

244.21

246.46

247.03

246.89

Pork Loin, 185 lb. 51-52% lean, cutout, cwt.(3)

79.68

83.17

80.00

112.68

Hog Corn Ratio

18.78

19.41

17.59

41.80

Steer Corn Ratio

37.79

38.56

42.50

24.73

Poultry and eggs (cents)

 

 

 

 

Chickens, Grade A, Fresh lb. Chicago

78.44a

78.99a

89.14a

96.75a

Hen Turkeys, Grade A, Frozen, lb., Chicago

129.50Aa

127.50Aa

99.50Aa

110.50Aa

Young Tom Turkeys, Grade A. Frozen lb. Chicago

129.50Aa

129.00Aa

99.50Aa

110.50Aa

Eggs, Grade A, Large, doz., Chicago

342.50

271.50

126.50

111.50

N/A: not available

A: average

 

 

 

(1) Replaces live hogs; live hogs are 0.755 of quote.
(2) Replaces Sioux Falls, 50-60 lbs. (2/26/07)
(3) National FOB plant, replaces national daily carlot.
Livestock, meat, poultry and egg prices from USDA.

 

Volume:87 Issue:D3

Grain & ingredient cash market comparisons, 8/31/15

Grain & ingredient cash market comparisons, 8/31/15

Major feed ingredients

Aug. 26

Aug. 19

6 months ago

Year ago

Corn No. 2, Chicago, bu.

 

 

 

 

Processor bid*

3.71A

3.73A

3.75A

3.81A

Terminal bid*

3.56A

3.61A

3.69A

3.40A

Milo, Kansas City, cwt.

6.62

6.66

6.48

5.80

Soybeans, Chicago, bu., processor bid

8.77A

10.29A

10.04A

10.94A

Soybean Meal, 48% Decatur Bid

349.40A

349.00A

381.00A

12.64A

Cottonseed Meal, Memphis, ton

290.00

290.00

310.00

340.00

Canola meal, Minneapolis, ton

279.00

279.00

270.00

244.80

Linseed Meal, Solvent, Minneapolis

280.00

280.00

230.00

290.00

Meat and Bone Meal, Chicago, ton

400.00

395.00

390.00

485.00

Fish Meal, Menhaden, Atlanta, ton

N/A

N/A

N/A

1,125.00

Corn Gluten Meal, 60%, Chicago, ton

570.00

568.00

655.00

655.00

Distillers Dried Grains, Chicago, ton

145.00

150.00

182.00

125.00

17% Dehy. Alfalfa Pellets, KC, ton

275.00

275.00

295.00

325.00

Millfeeds, Midds, Minneapolis, ton

120.00

120.00

112.00

132.00

Molasses, Cane, Houston, ton

150.00

150.00

152.50

152.50

Dried Citrus Pulp, Atlanta, ton

195.00

195.00

205.00

240.00

Whey, Whole, Chicago, cwt.

23.00

24.00

46.50

65.75

Rolled Oats, Minneapolis, ton

468.00

468.00

497.00

517.00

Barley, Los Angeles , cwt.

9.85

9.40

9.05

10.45

Feeding Wheat, Kansas City, bu.

5.07

5.25

4.90

5.33

* Chicago corn and soybean prices for latest and previous week are the middle of the range of to-arrive bids; soybean meal prices are midrange of processor quotes. Chicago corn and soybean prices provided by USDA Market News. Six months, year ago comparisons are all spot cash. Based on prices reported by Feedstuffs' market reporters.

A: average

N/A: not available

 

Volume:87 Issue:D3