Jim Long Pork Commentary-Corn Ethanol Suffers Set Back, July 12th 2011
By Jim Long, President and CEO Genesus Genetics
Last week the U.S. Senate voted to recall the Volumetric Ethanol Tax Credit at the current level of 45 cents per gallon and a 54 cent tariff on imported ethanol. The intention is for it to end on July 31st.
The Corn Ethanol apologizers appear to realize the ruse is up. They are painting a picture of a mature industry that no longer needs the subsidy or tariff protection.
Good Try Cowboys!! Corn Ethanol has been getting subsidized at $6 billion a year. That’s a big hole to fill.
The corn ethanol apologists complain about alleged subsidies for the oil and gas industry. Too bad as if hog producers have been getting subsidized to compete with $6 billion from the U.S. treasury. Hog producers actually feed people. Oil doesn’t, natural gas doesn’t, solar doesn’t, and windmills don’t. Keep corn for food not SUVs!!
The next step as corn ethanol loses its aura will be eliminating the legal mandates forcing ethanol into fuel. It’s morally, socially, and economically wrong to burn our food. The insanity of corn ethanol has had a setback but the battle is far from over.
Pfizer to sell Animal Health Division
Pfizer, the world’s biggest drug maker and developer of the chemical castration vaccine – Improvac announced last week their intention to sell its animal health and baby food division.
One analyst put a value of $22 billion on the Pfizer two divisions. Probably a good idea for Pfizer to get out, with an animal health division that has invested heavily in the foolish Improvac vaccine for chemical castration. The top management must wonder where the leadership of the animal health division is going. Science with no common sense in regards to consumer acceptance is a gamble for any corporation. Pfizer Animal Health Management betting on the chemical castration vaccine demonstrates an ignorance of hog producers, packers, processers, retails, and consumers. Improvac does nothing for anyone including Pfizer shareholders.
The hog market played defense last week losing ground every day. Weekly marketing’s were 1.730 million. This past week’s holiday was not good for producers as fewer hours for slaughter plants take the edge off the pull for hogs. We expect a full week slaughter schedule will pull hogs higher. Last Friday Iowa – Minnesota was 92.66 lean per pound.
In the coming weeks we expect slaughter weights will continue their decline lowering pork supply. We see continued strength in U.S. – Canada pork exports with global hog market prices in China, Russia, South Korea, Japan, Mexico, etc…at price points significantly stronger than U.S.A. – Canada. The U.S. beef prices are $1.80 carcass per pound reflecting its supply – demand. Pork is half of beefs price which obviously keeps pork competitive for domestic and export markets. The U.S. chicken industry has cut back egg sets and chick placements up to 6% lower than a year ago.
Less beef, less chicken, no more pork and strong export demand will keep lean hog prices high. The downside high feed prices but fortunately the corn ethanol industry got a whack this past week.
Thank goodness we produce the most popular meat in the world and global demand is growing.
Canada’s Ag-Minister Ritz Announces Genesus Breeding Stock Sale to Russia
At the Canada-Russia forum held June 1st in Ottawa, Canada’s Agricultural Minister Gerry Ritz in the presence of Russia’s First Deputy Prime Minister Victor Zubkov announced the largest sale ever of High Health Registered Swine breeding stock to Russia from Canada.
“During the Forum, Ritz announced that the Manitoba firm Genesus Inc. conducted an agreement to ship 4,100 live swine to Russia in a deal worth $5 million” Feedstuff’s Ian Elliot – June 6, 2011.
Jim Long President-CEO Genesus Inc. was a speaker at the Forum on the behalf of Canada’s Swine Industry.
“Genesus has previously sent several thousand breeding swine to Russia. Our co-operation with Kubanskiy Bacon to establish a jointly managed nucleus-multiplication system is a natural development for Genesus’ growth in Russia. Genesus is deeply committed to evolving a genetic program in Russia that mirrors the excellence of Genesus’ North American system” Jim Long – June 1st Ottawa.
Jim Long, President-CEO Genesus Inc., Canada’s Ag-Minister Gerry Ritz, Kubanskiy Bacon’s owner Vasily Tolstopiatov and Mike Van Schepdael Vice-President Genesus Inc.
Kubanskiy Bacon’s new swine barn facilities in Russia