Dear Partner,
Thank you for honouring us with your trust this year!
It gives us pleasure that we could contribute to your successful management with the quality of our products and the knowledge of our professionals.
We wish you and your dear family a peaceful, Merry Christmas and a successful, Happy New Year!
Tibor Csitkovics
Managing Director
Steady gains in production in combination with weaker consumption continue to pressure global pork markets and trade. That is a brief summary of the latest quarterly pork report by Rabobank. All in all, the bank stated, lower feed costs, better animal health and improved productivity bolster industry optimism despite challenging returns and uncertain consumption trends. After productivity challenges in 2022 and 2023, several key growing regions appear to be turning a corner, the bank wrote. While disease pressure is still an issue in some regions, overall herd health has improved. In a news release, the bank’s senior animal protein analyst Christine McCracken said: “A renewed focus on cost reduction – given inflationary pressures resulting in the elimination of less productive operations – is also contributing to a rebound in production per sow. Although this improvement is a welcome trend and lowers costs, the additional production is compounding regional oversupplies and weighing on the market.” At the same time, breeding herd reductions in most geographies outside Europe and South Korea are slow, despite ongoing margin pressure and limited optimism for a quick turnaround in global trade, the bank said. Corn and soybean prices moved lower in the third quarter of 2023, after a good North American harvest helped rebuild stocks and expectations for a large South American crop emerged, the bank wrote. Consumers are adjusting to inflationary pressures, yet pork remains a dietary staple and overall consumption trends remain stable. However, pack types and sales channels continue to shift. McCracken concluded, “In the final quarter of 2023, we expect global trade to remain slow given large inventories, relatively high domestic production, and low pork prices in key importing regions. Rising EU pork prices may also limit export volumes.” In Europe, pork production in the 27 EU countries and the UK contracted sharply, Rabobank reported. In the first 7 months of 2023, this would come down to 8.6% year-on-year. In Germany, the sow herd had contracted by 2% in June 2023 when compared to December 2022. One year earlier, the contraction had been 12% in the same period. Contraction in the sow herd will slow down, the bank expects, due to improved producer margins. Exports remain weak on relatively high prices and weaker global economies.
The Russian authorities unofficially prohibit farmers from selling grain to foreign customers at a price below the minimal threshold, though this strategy visibly hurts the industry. Russia blocked the delivery of 480,000 tons of wheat to Egypt in September since the sale price was below the minimal threshold of $270 per ton FOB (“Free on Board”) allowed by the government, Russian newspapers Kommersant and Forbes reported, citing their own sources. Russian publications assumed that by sticking to the minimal export price, Russia targets to use its dominant position in the global market to the advantage of the Russian farmers, who see their financial health worsening, and secure additional income to the federal budget. Russian publication Gorodn disclosed that the Russian strategy has already put pressure on the supply chain. In the southern regions, largely trade companies have already suspended purchasing grain from farmers, citing a lack of available warehouse capacity to store it. Andrey Sizov, director of SovEcon, a Moscow-based consultancy, admitted that the government policy slows down Russian grain exports, and the country could end up with record carryover stocks similar to what happened a year before. One source who wished to remain anonymous told Gorodn that wheat, similar to Russian wheat, is now sold on the global market for a maximum of $240 per ton FOB. “Agricultural Ministry believes that foreign buyers cannot live without Russian grain; they will buy at our price; we just need to wait. But there is a question for how long,” the source said, explaining that Algeria recently purchased the amount needed until the end of the year, Egypt will hold a couple more tenders and will stop purchasing until January. “So, wait until January? But in November, harvesting starts in Argentina, then in Australia, and everyone sells [grain] on the same market. So, it is not guaranteed that prices will rise to the desired level in January, especially given that the market is oversaturated with grain, including Ukrainian, the supply of which has again resumed through Odesa,” the source told Gorodn. A minimal export price is set also for the sunflower oil. As a result, some Russian oil factories suspended the start of work towards the end of September, while usually they open their doors around September 10. On the domestic market, farmers are trying to sell sunflower seed at the level only covering the production costs. Some farmers complain that the new measure puts heavy pressure on the industry, already troubled by export duties. As a result of the duties, the average profitability in the industry plummeted from 17% to 3%, estimated Alexander Yaroshenko, director of grain company Ural-Don. The minimal export price has proved to be another blow for farmers. “I believe that 4 more years of such restrictions and there will be no more grain export from Russia,” said Yaroshenko. “Perhaps we will not roll back to the state when we buy grain in Canada, like in Soviet times, but we will definitely lose an opportunity to export it,” he said.
Global poultry market growth in 2023 is expected to be slow, reaching only 1%, according to a recent report from Rabobank. Global poultry markets are well positioned to gradually improve in Q4 2023 and early 2024, although the level will depend on how well-balanced they are.
After a period of slow poultry consumption growth due to a weak global economy and rising prices resulting from cost increases, global demand has room for some recovery, driven mainly by lower feed costs and, therefore, lower chicken prices. Markets will stay highly price-driven, but poultry should be able to benefit from its relatively competitive pricing in many markets compared to other proteins like beef, pork, and alternative proteins.
Rabobank sees improving market conditions in the US, Mexico, Japan, South Africa, Indonesia, and China. However, the situation in Indonesia and China will be fragile. The EU market has been strong, but high levels of fresh chicken imports are creating pressure. Brazil and Thailand face more challenging conditions and will need more supply growth discipline in oversupplied domestic markets.
Global trade is expected to stay strong in 2H 2023 after reaching a record-high 7.2 million tonnes in the first half of the year, driven entirely by increased trade of raw poultry meat, while trade in processed poultry meat dropped sharply. Amid more price-driven markets, consumers’ product preferences are changing, and this trend is expected to continue in 2H 2023 and into 2024.
Brazil is expected to benefit the most as a cost-price leader in raw chicken meat, while Thailand and China need to refocus on raw chicken trade, which will challenge these exporters’ value position.
Government interventions driven by food security, geopolitics, and sustainability will continue to impact markets and create volatility in global trade. Avian influenza will remain an important factor that could suddenly impact global markets, from both a local supply perspective and a trade perspective, especially if Brazil’s southern states are hit.
Producers should maintain focus on the operational side. Although we believe feed prices will drop slightly, operational costs are still at historic highs, and risks of further volatility exist in grain prices (due to El Niño) and in energy prices and availability. Ongoing leadership in terms of costs and procurement will remain key. Additionally, producers should fine-tune supply to changes in poultry demand related to products, distribution, and market development.
Coccidiosis is an intestinal disease caused by unicellular parasites that usually occurs in young dairy or beef calves between 3 weeks and 6 months of age. Although it is rarely fatal, it can cause extensive gut damage and ill-thrift and is commonly seen under intensive management conditions with high stocking rates.
Autumn-born calves are at greater risk, with Cocci requiring warmth and moisture. A wet September and October increases infection risk as the environment becomes more favourable for the occysts to spread from calf to calf.
Veterinary specialists Murray Direct said calves become infected by consuming coccidiosis eggs from pasture, feed, waste and bedding, or by licking contaminated calves. The parasite can exist for months in their surroundings and failure to control the disease can influence future productivity levels, including growth rates, as well as delaying the onset of puberty, leading to milk loss production in dairy calves.
Third-generation dairy farmer, Darren Coombes, who farms with his son Tim on 890 acres near Bridgwater, Somerset in the UK, believes feeding a coccidiostat to his dairy calves can help control the disease. He recently had an outbreak affecting a fifth of his calves.
Coombes milks 425 cows – year-round calving Holsteins – supplying Muller and Sainsbury’s. Animals are milked twice daily, producing 10,500 litres at 4.3% fat and 3.25% protein.
“We didn’t lose any calves, but we lost a lot of growth and it took the calves a long time to recover,” he said.
His vet recommended the calves be fed the coccidiostat Deccox and, alongside improved cleanliness, it has helped get on top of the outbreaks.
Coombes said newborn calves receive colostrum for the first 3 days. Calves are kept in pens for the first week and at day 4 they transition onto a milk replacer with 3 litres fed in a bottle twice a day. From birth, calves are given clean water and free access to fresh straw and Mole Valley Farmers’ NSP NPP Calf Rearer 18+ Deccox, which is an 18% protein rearer nut with an added coccidiostat to help treat and manage coccidiosis.
“It is a very consistent, palatable product and calves love it. After 7 days, calves move onto one of the 2 Forster-Technik automatic milk feeders where they are kept in groups of 30. Calves get fed 4 feeds a day and can have a maximum of 8 litres in 24 hours. At day 49, the milk is gradually reduced and calves are weaned at day 56.”
Calves stay in the same group until they are 6 months old. After 5 months they are introduced to 1kg of homegrown rolled barley and ad-lib grass silage with the rearer nut cut back to 1kg. Deccox is removed at 9-10 months. Coombes notes: “It has completed kept coccidiosis at bay. We tried different things and we could never really get to the bottom of it until we introduced the Deccox.”
But hygiene is key, too. Calf sheds are disinfected and steam-cleaned between batches and straw bedding is also replenished liberally to keep calves dry.
Andy Adler of Molecare Farm Vets said preventing faecal contamination of water and feed troughs is crucial in controlling coccidiosis. “Raising feed and water troughs alongside regular cleaning is very important to prevent faecal-to-oral transmission. Straw bedding should be replenished often so calves are only eating fresh, clean straw.”
The largest feeding symposium in Eastern and Central Europe was organized in mid-November,
where Agrofeed Kft. hosted more than 600 participants from 40 countries.
The organizer sought answers to the challenges of modern livestock breeding and feeding, expected
trends and effective solutions. At the two-day conference he presented all of this with sixty lectures,
which represented a high standard at the international level as well. At this year’s conference
separate animal species sections were also created for pig, poultry and ruminants.
The soon-to-be-25-year-old Agrofeed is the leading premix producer in Central and Eastern Europe
with two production bases and a distribution network covering nearly 40 countries. 370 million
broilers, 7,5 million turkeys, 2,6 million breeding poultry, 2,6 million waterfowl, 135 thousand cattle,
160 thousand sows and 5 million fattening pigs are fed.
In the past sixty years, food production has kept pace with population growth and even a welfare
revolution has taken place, said Tibor Csitkovics, the founding owner and managing director of
Agrofeed in his opening speech. The production volume of poultry meat increased by 15,3 times,
pork by almost 5 times, eggs by 6 times and beef by 2,6 times. Thanks to the parallel scientific
revolution, new hybrids and technologies were created, and animal feeding became more modern.
While in 1960, an average of 3,75 kg of feed was needed to produce one kilogram of meat, this has
now decreased to 2,65 kg, and compared to 540 kg of meat sold per sow, it is now 2,2 tons.
“Climate protectionists and animal welfare activists are not aware of how much we have done for
these goals,” emphasized the managing director. While in 1960 0,8 million sows were needed to
produce 1 million tons of meat, currently a third is enough using 30 percent less feed. 60 years ago
645 million chickens produced 1 million tons of meat for which currently 339 million are enough.
The food demand of the Earth’s constantly growing population cannot be met. While 10 percent of
humanity is starving, climate change will make it increasingly challenging to produce the necessary
amount and quality of food. It is necessary to further increase efficiency and improve the type of
feed. This way you can avoid disaster.
How does science contribute to these goals? Dr. Károly Dublecz, head of the department of the
Hungarian University of Agriculture and Life Sciences gave a lecture on the current challenges and
opportunities of feeding livestock. Among other things he emphasized that it is inevitable to
integrate social and environmental protection aspects into production, but he also added: he does
not believe that in any other industry it has been possible to reduce the carbon footprint to the same
extent as in animal husbandry. At the same time food chains will demand that the amount be marked
on the products within the foreseeable future.
While COVID has claimed nearly 5 million victims globally in a few years, antimicrobial resistance
(AMR) may soon be responsible for the premature death of 10 million people in a year emphasized
Dr. Ákos Jerzsele, head of the department of the University of Veterinary Medicine. In addition to
presenting the latest research results, he underlined that this can only be done with global
cooperation and the “one health” principle, that is professionals must work together for the sake of
human, animal and environmental health, since each area affects the other.
Dr. Gábor Kardos, SOTE employee, presented research on the appearance of multiresistant
pathogens in natural waters and wild animals, emphasizing how these extremely dangerous
pathogens are able to pass from one living organism to another thanks to their genetic properties.
If animal husbandry wants to meet the requirements of environmental sustainability, but consumers
are not willing to pay the costs then there is nothing left but to increase efficiency, which must be
accompanied by communication, information and education at the societal level. Among other
things, Dr. Zoltán Pachinger, agricultural consultant, drew attention to this, and he gave a lecture
entitled “Green and sustainable revolution versus economical food production”.
Alpár Botond, head of research and development, presented tests related to the feed products of
Agrofeed, which were developed using domestically available raw materials and fermented with an
innovative process. Among other things he emphasized that the process can be applied to any feed
plant and the result is a product that contributes cost-effectively to better digestion and nutrient
absorption.
Based on the feedback, it can be stated: there is a need for professional conferences of this kind, so
Agrofeed is already planning the organization of the next AIMS/AIRS symposium!
Researchers at the Technical University of Munich have synthesised the amino acid L-alanine using enzymes, according to a report in the journal Chem Catalysis. Although the technology needs more work before it is ready for commercialisation, it could one day allow feed manufacturers to produce amino acids directly from carbon dioxide and renewable hydrogen and ammonia. Producers typically rely on fossil fuels or microorganisms to make amino acids, says Volker Sieber, a professor at the Technical University of Munich and one of the authors of the Chem Catalysis report. While single-cell protein synthesis is generally considered more sustainable than conventional amino acids derived from fossil fuels, it still requires glucose to feed the microbes. And the production of this glucose biomass still requires acres of land that could otherwise support greater biodiversity, Sieber said. If you really want to be sustainable in what you do … it’s more important to use renewable energy and carbon dioxide,” Sieber said, arguing that a windmill takes up less land than acres of crops. But if you try to synthesise single-cell proteins using carbon dioxide as a raw material, the process triggers intermediate chemicals that are toxic to the microorganisms themselves, Sieber said. To get around this barrier, the Technical University of Munich laboratory removed key enzymes responsible for amino acid synthesis from the microbes to replicate the cellular process outside a living organism. Using carbon dioxide, hydrogen and ammonia – all preferably from renewable resources, Sieber said – the lab was able to achieve a conversion efficiency of nearly 100%. They started with L-alanine because of its relative simplicity, he said, but have since synthesised other amino acids as well. Other processes – including microbial synthesis and the extraction of L-alanine from fossil fuels – are still cheaper than the enzymatic process developed in the lab, Sieber said. But the team at the Technical University of Munich is now working to refine the process and reduce costs. Sieber believes that if they can speed up the action of the enzymes, they will be able to achieve cost parity with other sources of amino acids.
EU production of compound feed for farmed animals in the 27 Member States is estimated at 148.9 million tonnes – a fall of 3.8% compared to 2021 figures, according to data published by the European Feed Manufacturers’ Association (FEFAC). Production fell for all feed sectors, but most significantly for pigs (-6.7%) and poultry (-3.2%) due to the spread of African Swine Fever (ASF) and Avian Influenza. Pig feed production fell by 3 million tonnes compared to 2021, with many Member States, including Denmark, Spain, France, Hungary, Portugal and Romania, recording a decrease of more than 5%. Smaller farms closed down due to the deteriorating economic situation and farm profitability. Pork exporting countries increased their production as China continued to recover from ASF and reduced its pork import volumes. ASF continued to play a role in Germany and Romania, affecting economic efficiency. Poultry feed production fell by 2 million tonnes, with several countries, including Bulgaria, France, Hungary, Italy and Portugal, severely affected by avian influenza. Some farms skipped cycles due to escalating costs, further impacting feed demand. FEFAC reported that cattle feed production fell by 0.5 million tonnes compared to the previous year. This was partly due to the amount of additional feed purchased in 2021 due to the severe drought. The Russian invasion of Ukraine and the resulting energy crisis in the EU had a significant impact on the EU economy and inflation, leading to reduced demand for animal products and therefore compound feed. Only 5 Member States, including Poland, Slovakia and Austria, managed to slightly increase or stabilise their feed production. Looking ahead, the European Commission’s forecasts suggest that compound feed production is expected to fall for all species except poultry this year. Uncertainty over feed and fertiliser prices and inflation will continue to affect the feed market. FEFAC market experts estimate that compound feed production will continue to decline by 1.5% to a level of 146.8 million tonnes.
In a recent press release, USPOULTRY and the USPOULTRY Foundation announced the completion of a funded research project at the University of Arkansas in which researchers evaluated the effects of variable light intensity programs on broiler welfare. David Caldwell, head of the Department of Poultry Science and director of the Center of Excellence for Poultry Science at the University of Arkansas, and his team recently completed the project. The aim of the project was to determine the effects of variable intensity lighting and natural lighting programmes on behaviour, gait score and stress hormone (corticosterone) compared to constant light intensity programmes in commercial broiler farms. Other objectives of the study were to investigate the effect of enrichment hut on broiler behaviour, gait score and stress in the different lighting programmes. The results showed that the variable light intensity lighting programme stimulated dust bathing behaviour and voluntary movement of the birds. In addition, litter moisture content and footpad lesions were lowest in the variable light programme house.
Scientists have collaborated to produce the first gene-edited calf with resistance to bovine viral diarrhoea virus (BVDV). The study, published recently in PNAS Nexus, is the result of a collaboration between several universities and industry players. BVDV is one of the most important viruses affecting the health and well-being of cattle worldwide and has been studied by researchers since the 1940s when it was first identified. The virus does not affect humans, but is highly contagious among cattle and can cause severe respiratory and intestinal disease. BVDV can be devastating to pregnant cows, as it can infect developing calves, causing spontaneous abortions and low birth rates. Some infected calves survive to birth and remain infected for life, shedding massive amounts of virus to other cattle. Over the past 20 years, the scientific community has discovered the key cellular receptor (CD46) and the site where the virus binds to this receptor and causes infection in cows. In this latest study, scientists have modified the virus binding site to block infection. Aspen Workman, lead author and researcher at ARS’ US Meat Animal Research Center (USMARC) in Clay Center, Nebraska, said, “Our goal was to use gene-editing technology to slightly modify CD46 so that it doesn’t bind the virus but still retains all its normal functions in cattle. The scientists first tested this idea in cell culture. After seeing promising results in the lab, Acceligen edited cattle skin cells to develop embryos carrying the modified gene. These embryos were transplanted into surrogate cows to test whether this approach could also reduce viral infection in live animals. It worked, and the first CD46 gene-edited calf, named Ginger, was born healthy on 19 July 2021. The calf was followed for several months and then challenged with the virus to see if it could become infected. She was housed for a week with a BVDV-infected dairy calf that was born shedding virus. Ginger’s cells showed significantly reduced susceptibility to BVDV, resulting in no observed adverse health effects. Scientists will continue to monitor Ginger’s health and ability to produce and rear her own calves. This promising trait is still in the research phase and no associated cattle are currently entering the US food supply.
