POULTRY PLUIMVEE BULLETIN
INCUBATION AT HIGH ALTITUDES 54 RABOBANK’S POULTRY REPORT 49 FEBRUARY 2015 VOL 4 ISSUE 2 THE CHALLENGE OF FREE-RANGE The offi cial mouthpiece of the South African Poultry Association DUCKS 29 Die amptelike mondstuk van die Suide-Afrikaanse Pluimveevereniging Founded 1904 | Gestig 1904 LANDBOU SORG 38 ROSS Credits
Poultry Bulletin | Pluimvee Bulletin Published by: Subscription rates: Free to members; non-members Suid-Afr ikaanse Pluimveevereniging. R465.00 p.a. South Afr ican Poultry Association. Intekengeld: Gratis aan lede; Nie-lede R465 p.j. Printed by: Colorpress (Pty) Ltd, 6 Prop Street, Selby, Jhb. Editor: Cameron Mackenzie - [email protected] Offi cial mouthpiece of the South Afr ican Poultry CEO: Kevin Lovell - [email protected] Association. For private circulation only. Advertising: Louisa Nel - advertising@ sapoultry.co.za Design and Layout: Jelliweb - [email protected] Amptelike mondstuk van die Suid-Afr ikaanse Subscriptions: Cynthia Ncube - [email protected] Pluimveevereniging. Alleenlik vir private verspreiding. Letters to / Briewe aan: [email protected]
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February Issue 3 ROSS contents
05 Editors note 06 From the Desk 13 Broiler industry report 20 Industry well placed to survive recession Cheap oil to fuel demand 21 Nigeria feels the flu China says no to US poultry 22 Superbowl sees wings fly More bird flu outbreaks in China Elanco acquires Novartis Bullish outlook for US poultry 24 Forging ahead with the PDMA 29 The challenge of free range ducks 32 A new look 34 Don contributes to Clostridial enterotoxemia 36 Six years of power problems ahead 37 ‘n Kommerwekkende begin vir 2015 Capital for poultry bedding company 38 Landbou sorg 39 Record installations of breast cap filleting systems Grondplafonne ‘n politieke dagdroom 41 Taking production to another level 44 Getting ready for a working future 48 Vacancies 49 Today in the USA 52 Northern views 54 Incubation at high levels 56 AVI Africa official notice 59 A Page in Time 62 It’s your birthday 65 Aspiring Chef 66 Take a break
4 Poultry Pluimvee Bulletin Editors NOTE
necessary to serve you better pages, and its global snapshot can’t be under-estimated. of the problem, its footprint Similarly, the ground-breaking and the eff ects on worldwide studies on diseases and updates production and trade make for on their progress are well easy yet informative reading. worth a read, especially in It’s easy to forget that light of the scourge of Avian poultry is more than chicken, Infl uenza that’s breaking out eggs or a fl ock of ostriches. worldwide. There’s some Ducks are part of our industry valuable information in her too, so this month we’re column that’s aimed at us in pleased to shine the light South Afr ica, so don’t miss it. on the production of fr ee- Chris Mason’s column range ducks – an important, highlights the importance of nutritious and very tasty training in an industry where addition to our regular menu. knowledge really can make the Kevin’s From the Desk diff erence between success and highlights the trade matters failure, so have a look what’s as well as developments Cameron Mackenzie on off er – and how little it can within the SAPA member actually cost to get those skills organisations, so to keep up up to scratch. There’s also a with the thinking, simply turn ith a focus on great piece on the workplace of this page. the year ahead, the future that could help you Lastly, take a look at our the work of Dr get ready for it. regular news features, local Charlotte Nkuna, In addition to the latest and international. Even if you Wdirector of the SAPA funded production statistics fr om the never switch on a television, Poultry Disease Management US, our regular correspondent, open a newspaper or listen to Agency, continues to infl uence Professor Simon Shane, the radio, we hope that the and shape the local poultry analyses the Rabobank Poultry short stories here will give you industry and its future. If Report in some detail. It seems a good idea what’s going on there’s nothing else you read as if a resurgent Brazil has in our industry at home and on the technical side of our taken up the market in Russia abroad. publication, I urge you to take left vacant by EU and US Enjoy the read, and as a look at her regular column. imposed sanctions. Not to be always, feel fr ee to send me The work that’s done in left out, it’s understandable that your contributions, letters, equipping state vets with the Avian Infl uenza also features comments, brickbats and information and knowledge prominently in the report’s bouquets – all well received.
February Issue 5 From the DESK xamining the morality of fair trade, research is under the microscope, Eand strategy matters Dear Reader SAPA strategy that the necessary Committee engagement can take place over he lower oil price the next few months so we can he SAPA strategic is an unexpected bring the process to fi nality. change process went to bonus for all South This also means that any talk sleep over the holiday Afr icans and will of using a levy as an equitable period, partly because Thopefully have a positive funding mechanism will need Tof uncertainty as to where eff ect on disposable incomes to wait for a greater sense of the egg farmers were going to and consumer demand. One unanimity among members of fi nd their home. It seems as should be slightly cautious all persuasions. if the answer to this question though as the drop in the oil As much as possible, is a smaller egg organisation price is, at least partly, due to a expenses for 2015 will be with a reduced budget as well slowing economy in China and delayed while we go through as a restructuring of SAPA Europe, both of which could this realignment process. itself to give more specifi c limit demand for our various It doesn’t help to stop with attention to the egg industry raw material exports. Have fun everything though, so all as a whole. We’re hopeful while you can. members are going to need →
6 Poultry Pluimvee Bulletin to make their feelings known if for products unwanted in here. Fairness and equal we’re to succeed in delivering their home countries, often at treatment must prevail. services and reducing costs very low prices. I think our I think many of you will trade disputes are going to have been following the claims Trade continue for quite some time. by the USA that it is our The EU seems to have found poultry anti-dumping (AD) us a very nice destination for duties which are threatening here was no real their products with almost all the renewal of the AGOA holiday for the the bone-in portion imports agreement. Funny that in 14 various trade activities coming from the EU. If we years the Americans never that are underway. don’t deal with the EU, then thought to take our position to TThe provisional measures we’ve little hope of establishing the WTO for review as it is the against the EU have lapsed, a fairer trading environment. WTO who is the appropriate as expected, and a final As a rule of thumb, every forum to determine which decision by ITAC that can go 10,000 tons of imports equals actions are permissible. The to the Minister of Trade and around 1,000 direct and Americans seem fearful to Industry as a recommendation indirect jobs lost in South have their policies put under should be made in February. Africa. scrutiny. These same people The key point is that ITAC The HPAI outbreaks in say that the WTO has ruled still maintains that the the UK, the Netherlands and against China in a similar Europeans are dumping and Germany as well as in the USA matter. Codswallop. The WTO that we’re therefore within and Canada continue, with actually bemoaned the fact that our rights to make an anti- the one in the UK probably the WTO panel did not debate dumping application. One closest to being resolved. This the merits of the constructed expects another tirade of means that imports from these cost model which we use and half-truths, distortions and countries are still prohibited only focussed on a procedural miscommunications from the for health reasons and the loss failure by the Chinese importers and their supporters. of the provisional measures authorities where they failed In fact, the importers are is not a disaster. We need to to make out a detailed case now in the process of a court support DAFF in that their action to restrain the Minister treatment of these countries of Trade and Industry from should be no different to the authorising any such duties. way those same countries have We’re listed as a respondent treated us after the various and are quite obviously going ostrich outbreaks. We realise to defend the right of the this creates problems for the Minister in this regard. Until import of breeding material. such time as the application The only way around this is reaches court, we can’t disclose to establish compartments the details of their action, save that are recognised by the to say that we think that we’ll veterinary authorities of the be able to actively support the exporting country and by Minister. DAFF. This has been done by At the time of writing one based in the UK. It can this letter, the final import also be done for meat, so the figures for December aren’t yet main reason for the restriction available. Using November as a on meat exports is the failure guide, it appears total imports of the exporting countries to for 2014 will be slightly more follow the guidelines given by than in 2013, and a little less the OIE on facilitating trade than in 2012 (the highest in times of disease outbreaks. figure ever). What this means Their problems are as a result is that we still have a way to go of their lack of foresight and to deal with the use of South planning. We must not falter Africa as a disposal ground
8 Poultry Pluimvee Bulletin for the use of the constructed not criminal actions, or else it, we can prosper, improve cost model (there were a few there would be a good chance our competitiveness and other procedural failings, all that the political leaders of the create employment. Food is of which the Chinese have developed world might have to a local thing for most people rectified and AD duties against conduct their leadership from wherever you are around the USA are still in force). inside a prison cell. Financial the world. It is identity, it is Ultimately these actions criminals are treated this way; security, it is the basis of life. need to face up to the morality a pity we can’t have trade Thankfully, our government of trade. Can it ever be free criminals. is aware of these issues and if it isn’t fair? For those old Every time you import is trying to defend us from enough to remember the something you could make the rapacious actions of the flower power generation who locally, you take away the developed world. The struggle enjoyed the fruits of ‘free love’ incentive to make that product continues. (and often the consequences) here. The broiler industry still Our export drive for eggs would ‘free love’ have been so survives because it’s quite big and meat continues. DAFF called if both parties were not and is able to defend itself. have dedicated a person to help equally willing to participate? New industries don’t have open up markets and the dti We cannot change the dietary that luxury. Size is also no and DIRCO are also working habits of the developed world guarantee – witness the textile hard at this task. Charlotte - and we have no right to do and clothing industries. Ditto Nkuna is also progressing with so in any event - but should the automotive industry. The phytosanitary work to help 13% of the world’s population last car manufacturing plant make sure that we can comply be able to impose the effects in Australia is about to close with the requirements of the of their dietary habits on the down because the Australian importing countries. remaining 87% of the world’s government didn’t want to population? Hopefully, all clear continue subsidising local Research Matters headed people will say no. production as we do. Without Trade law infringements government support, many he committee that are, unfortunately I believe, industries are doomed; with monitors the work of the SAPA funded research Chair in TPoultry Health and Production met last month. Professor Abolnik will report on her own work, but I’d like to highlight her success in identifying a new strain of Mycoplasma not thought to exist previously. This could have a marked impact on our current control strategies. She’s also done good work to type the IB field strains to help make sure that the newly approved vaccines are still effective. Perhaps a number of readers get a glazed look when they see all the flashing lights and test tubes in a modern laboratory, but we’re fortunate to have a person of her calibre doing research on our behalf (with her team of about 8 students). As we want this work to continue for the
February Issue 9 medium to long term, we’ve between conventional cage economic climate doesn’t approached DST for assistance production and enriched cage allow for major production in funding. The response has production, so if any producer growth (by whosoever) and been very positive. The more wants to go into enriched cage that the industry derives its well-qualified poultry scientists production, they can market competiveness from scale. We we can produce, the better the the eggs as such, perhaps need to find specific markets general health of the industry creating a new niche market. where development projects is likely to be. We’ll try to meet with DAFF can succeed. Transformation In a similar vein, DAFF soon in order to understand of the current egg and broiler have approved their share of the perceived difficulties and industries will only give us a the funding of the new Chair see what solutions are possible. few hundred transformation in Risk Management. We are We’ll be meeting with opportunities. Creating specific part of the team that’ll advise senior DAFF officials and markets for smaller new on the appointment of this leaders in February to see if we entrants might give us a few person. You might ask what can progress the brining issue. thousand opportunities. This is this has to do with you? The It doesn’t help anyone for this probably not enough, as these answer is straightforward. to continue dragging on. It smaller farmers need space to Much of regulatory decision also doesn’t help to introduce grow so they can realise their work is now based on a regulations that are anti-poor. personal ambitions over time - measured assessment of risk We believe a decent solution and after a lot of hard work. – whether this be for local is in the offing. The consumer consumer food safety or for attitudinal research should General export requirements. There be underway by the time you is very little skill in this field read this letter and I hope that e are still fine- in South Africa, and if animal this will give new insights into tuning the industries want to be more consumers’ needs and wants. programme for effective exporters as well Avi Africa. A draft as more reliable suppliers Transformation Wversion will be placed on the of safe food, understanding website during February. The risk in a structured way is an he much heralded exhibition area is almost fully essential business skill. This Transformation sold out, and we think we’ve new position will help in this Committee has yet some good speakers lined up. A journey. to begin its work. decision on whether to hold a TThere are good reasons why banquet or not is pending, so if Broiler and Egg this Committee is delayed you’ve any views on the matter, matters in its work, but the urgency please let us know soonest. We to transform remains. We hope to see you there from 23 believe we’ve made one to 25 June at Emperors Palace. think most egg producers huge breakthrough with the Our new website will be up acknowledge that Gauteng government, who’ve and running by the time you regulations around partnered with us to establish read this letter. Please go to terms such as grain-fed, a viable developmental project site and give us your feedback Iomega -3 enriched, etc. are within Gauteng. This isn’t so that we can continue to a bit limited. Where they mere words as they’ve given us improve our services to you exist, they’re rather vague. quite a few million Rands to as members. The intranet DAFF are at one with us on get the project underway. The section, which is restricted this matter, and we’ve been key shift is that government to members, will have more working with them for some is prepared to partner with information on it which time to get better definitions us beforehand and not only we hope will make it more in place. For reasons we still come to us for support after worthwhile for you to visit. need to understand, they seem structures are on the ground. reticent to deal with all of the In all our transformative work, Regards until next month, changes we’d like. This is an we deal with two primary Kevin Lovell opportunity to distinguish constraints: that the current CEO
10 Poultry Pluimvee Bulletin
12 Poultry Pluimvee Bulletin Broiler Industry REPORT
LEASE NOTE: As a result of SAPA re-addressing the industry broiler breeder standards as mentioned in earlier reports, the following was found: P• Monthly returns by day-old broiler chick producers indicate that at hatchery level the potential forecasted chick production, based on the number of day-old parent pullets placed, is not realised although the gap has closed considerably. • Broiler industry results from 2009 to 2013 have been revised. Hatchery returns of actual day-old broiler chicks placed and the projected broiler production based on these figures will be regarded as a true reflection of the industry performance.
isclaimer: information in this report reflects assumptions and also actual data. The projections presented in the report are based upon specific production standards and Dindicate historic and forecasted trends only.
February Issue 13 Executive Overview: Broiler breeder ock million broiler chicks per week was 1 650 less (-0,01%) than in Broiler Industry – breeder flock of 6 611 September 2014 and 978 100 October 2014 200 hens is forecasted more (+5,3%) than in October for February 2015. 2013. This will be 23 400 1.1 Broiler Breeders Aless (-0,4%) than the January 1.3 Broiler Production 2015 flock but 69 500 more Day-old parent pullets placed (+1,1%) than February 2014. Actual production: n average of 191 200 8,6 million broilers were day-old parent pullets 1.2 Broiler Chick produced per week in was placed per week Placements October 2014. This was in October 2014. 451 600 (-2,4%) less than AThis is an increase of 13 600 Actual placement: 1in October 2013. pullets (+7,7%) compared to In total 82,3 million broilers the number of pullets placed roiler hatcheries were produced during October in September 2014 and 7700 produced 88,2 million 2014; 1 999 700 (-2,4%) less more (+4,2%) than the number day-old chicks in than October 2013. placed in October 2013. October 2014. The Baverage placement of 19,6
Table 1: Comparison Of Broiler Production Standards Since 2003
2003 2006 2008 2011 2013 Introduced: Aug 1997 Aug 2005 Jan 2007 Oct 2011 Jan 2013 Fully implemented: Aug 2001 Jun 2006 Nov 2007 Sep 2012 Nov 2013 Broiler Breeder Flock: Mortality to 20 weeks of age: 3,5% 6% 6% 5,6% 5,6% Laying Cycle: 20 weeks to 63 weeks 63 weeks 61 weeks 61 weeks 61 weeks Mortality during the laying 12,4% 12,4% 11,5% 8,5% 8,5% cycle: Broiler Breeder Performance Hatching eggs per hen housed: 151,1 152,5 148,4 151,6 153,7 Broiler chicks produced per 126,2 124,7 119,5 124,2 128,9 hen housed:
14 Poultry Pluimvee Bulletin Table 2: A comparison of the same broiler production standards at week 60:
2003 2006 2008 2011 2013 Introduced: Aug 1997 Aug 2005 Jan 2007 Oct 2011 Jan 2013 Fully implemented: Aug 2001 Jun 2006 Nov 2007 Sep 2012 Nov 2013 Broiler Breeder Flock: Mortality during the laying 11,8% 11,8% 11,3% 8,45% 8,45% cycle: Broiler Breeder Performance Hatching eggs per hen 144,6 145,8 146,1 149,2 150,8 housed: Broiler chicks produced 121,3 119,6 117,8 122,4 126,9 per hen housed:
2. Broiler Production WEEKLY BROILER PRODUCTION PER MONTH Graph 1
20,0
19,8
Graph 1: Average number of 19,5 broilers slaughtered per week. 19,3 19,0 Graph 2: Actual broilers B R 18,8 O produced - average/week. 18,5 I Graph 3: The monthly year L 18,3 E 18,0 R on year movement in actual 17,8 S weekly production 17,5 P 17,3 E In October 2014 actual 17,0 R broiler production decreased in 16,8 W 16,5 comparison to the same month E 16,3 E of 2013. K 16,0 Graph 4: The total number 15,8 15,5 of broilers slaughtered per Jan.2010 Apr.2010 Jul.2010 Oct.2010 Jan.2011 Apr.2011 Jul.2011 Oct.2011 Jan.2012 Apr.2012 Jul.2012 Oct.2012 Jan.2013 Apr.2013 Jul.2013 Oct.2013 Jan.2014 Apr.2014 Jul.2014 Oct.2014 Jan.2015 Apr.2015 annum.
Graph 5: Year on year % Forecast based on parents placed Based on actual broiler chicks hatched change in supply and price. A % change > 0 indicates AVERAGE BROILER PRODUCTION PER WEEK growth in the current month (BASED ON ACTUAL BROILER CHICKS PLACED) Graph 2 compared to the same month Millions 18,500 of the previous year. A 18,265 % change < 0 indicates a B 18,140 R decline in the current month O 18,036 I 18,000 compared to the same month L E of the previous year. R 17,753 S
P R 17,500 2.1 Depopulation of O D U Layers C 17,189 E D
17,000 Graph 6: Monthly depopulation of broiler parent hens at 61 weeks of age.
16,500 2010 2011 2012 2013 To Oct 2014 YEAR
February Issue 15 YEAR ON YEAR CHANGE IN ACTUAL WEEKLY ←Graph 3 BROILER PRODUCTION TO OCT 2014 2 500 000
2 000 000
1 500 000
C H 1 000 000 A N 500 000 G E 0 I N -500 000
N U -1 000 000 M B -1 500 000 E R -2 000 000
-2 500 000 Jan.2010 Apr.2010 Jul.2010 Oct.2010 Jan.2011 Apr.2011 Jul.2011 Oct.2011 Jan.2012 Apr.2012 Jul.2012 Oct.2012 Jan.2013 Apr.2013 Jul.2013 Oct.2013 Jan.2014 Apr.2014 Jul.2014 Oct.2014
↓Graph 4
ANNUAL BROILER PRODUCTION (BASED ON ACTUAL BROILER CHICKS PLACED)
Millions 1000
948,4 950 940,4 T 925,7 O T 896,3 A 900 L
B R 850 O I L E 793,2 800 R S
750
700 2010 2011 2012 2013 To Oct 2014 YEAR
% CHANGE IN ACTUAL BROILER PRODUCTION AND BROILER ←Graph 5 PRICE (VARIATION ON SAME MONTH OF PREVIOUS YEAR) 25
20
15
10
% 5
C H 0 A N -5 G E -10
-15
-20
-25 Jan.2010 Apr.2010 Jul.2010 Oct.2010 Jan.2011 Apr.2011 Jul.2011 Oct.2011 Jan.2012 Apr.2012 Jul.2012 Oct.2012 Jan.2013 Apr.2013 Jul.2013 Oct.2013 Jan.2014 Apr.2014 Jul.2014 Oct.2014
% CHANGE IN VOLUME % CHANGE IN PRODUCER PRICE (INCLUDING OFFAL) % Change in PPI Deflated Price
16 Poultry Pluimvee Bulletin Graph 6 TOTAL BROILER PARENT HENS DEPOPULATED PER MONTH (4 OR 5 WEEKS PER MONTH
725000 721 075 720 366
700000 H 689 750 E 677 899 N 673 696 675000 S
P 647 101 647 482 648 072 650000 646 082 E R 628 741 625000 M 617 502 O 603 953 N 600000 T H
575000
550000
525000 Nov 14 Dec 14 Jan Feb 14 Mar 15 Apr May 15 Jun 15 Jul 15/5wk Aug 15 Sep 15 Oct 15/5wk 15/5wk 15/5wk
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