FARMINGUK OCTOBER 2012

In this edition:

BACK ISSUES • Europes pork and bacon stocks declining scan the code • Calls to scrap EU biofuel plans • Hundreds march to Brussles • Plus much, much more!

NEWS MARKET REPORTS PROPERTIES CLASSIFIEDS JOBS RURAL ACCOMMODATION

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L K R A R S A N P S 3 CONTENTS Very high (-.50 to -0.65)

High (-.45 to -0.50)

Medium (-.40 to -0.45)

Mode rate (-.25 to -0.40)

Low (-.25 to -0.35)

No in formation av ailable RABOBANK REPORT: AGFLATION TO HIT ANIMAL PROTEIN AND DAIRY INDUSTRIES

Skyrocketing agricultural and wheat. These commodities are so the current period of agflation commodity prices are causing the currently 30% cheaper than their should not lead to the unrest world to re-enter a period of 2008 peaks. Nonetheless, price rises witnessed in response to the "agflation", with food prices are likely to stall the long-term trend shortage in 2008. forecast to reach record highs in towards higher protein diets in Asia, 2013 and to continue to rise well the Middle East and North Africa. In Rabobank estimates that the Food into Q3 2013. Unlike the staple developed economies - especially and Agricultural Organisation (FAO) grain shortage of 2008, this year's the US and Europe - where meat Food Price Index will rise by 15% by scarcity will affect feed intensive and corn price elasticity is low, the the end of June 2013. In order for crops with serious repercussions for knock-on effect of high grain prices demand rationing to take place, in the animal protein and dairy will be felt for some time to come.” turn encouraging a supply response, industries. prices will need to stay high. As such Due to the long production cycles of Rabobank expects prices - Luke Chandler Global Head of Agri the animal protein and dairy particularly for grains and oilseeds - Commodity Markets Research at industries, the affects of grains to remain at elevated levels for at Rabobank commented, “The impact shortages will be more sustained as least the next 12 months. on the poorest consumers should be herds (especially cattle) take longer reduced this time around, as to rebuild, maintaining upward Government intervention purchasers are able to switch pressure on food prices. However, Whilst the impact of higher food consumption from animal protein food makes up a smaller proportion prices should be reduced by back towards staple grains like rice of budget spend in such countries, favorable macroeconomic 3ECTION The price of food will increase further |   | Rabobank Re-entering Agflation

Our analysis indicates that world stocks of in five of the thirteen marketing years since Figure 2.1: Wheat, corn and soybean prices are experiencing soybeans in the 2012/13 season will fall to the turn of the millennium (see Figure 1.4). their third major price rally in five years—setting records for just 73 days of use (-6 YOY) while corn stocks soybeans and corn In fact, world wheat stocks are expected to 18 will fall to just 51 days of use (-4 YOY). These end this season with 90 days of use (-14 YOY) 16 numbers compare to 83 days and 62 days, and should remain considerably higher than 14 respectively, for the 2007/08 season. As this

the 76 days of use reached in 2007/08 l 12

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season’s decline in stocks is concentrated in h s 10

(see Figure 1.5). Rice stocks are also significantly u b

corn and soybeans (used largely in animal / more plentiful this time around with 81 days D 8 S

feeds), stock tightness can be alleviated U of use (-2 YOY) compared with just 69 days in 6 through reduced meat and dairy consumption. 2007/08. Export bans in major rice exporting 4 These effects will be masked in the shorter countries, including India and Vietnam, were 2 term as higher slaughter rates temporarily a key component of the 2008 record rally in 0 1 3 4 5 6 7 8 9 0 2

increase meat supply. The longer term effect 1 0 0 0 0 0 0 0 1 1 0 rice prices, with August 2012 rice prices of 0 0 0 0 0 0 0 0 0

Re-entering Agflation 2 will be reduced animal herd sizes, which will 2 2 2 2 2 2 2 2 2 USD 15.6 per cwt still 34 percent below the drive down production and increase prices. 2008 peak. While there have been some Unlike in 2007/08, higher prices will linger this CBOT Wheat CBOT Corn CBOT Soybeans concerns with the sub-par Indian monsoon, time, even if increased production alleviates at this stage production has not been as Source: Bloomberg, Rabobank, 2012 pressure on underlying grain fundamentals World Food Prices to Hit Record High adversely affected as in 2008. Additionally, as herds take time to rebuild. non-grain and oilseed prices have remained The crisis of 2008 was many years in the more subdued, with sugar—a large food- decline YOY for the first time in 17 years. However, we still expect prices to remain making, with stocks-to-use declining across price component—falling 16 percent YTD. However, total global grain use is likely to above long-run average levels, unless there the grains and oilseeds complex beginning However, with the reference #11 sugar price exceed production for the seventh time is a major demand shock in the market, such in 2000 as emerging market and biofuel trading at USc 20 per lb, prices remain well in 14 years. as a major policy change (e.g. biofuels) or a demand accelerated. The 2008 crisis was above the 2008 average price of USc 12 per lb, global recession. a signal that there was not enough growth with prices declining from their peak of USc !GRICULTUR ALCOMMODITYPRICES in production or investment in agriculture 35 per lb in February 2010. The scale of the production setbacks this TOREMAINHIGHF ORSOMETIMEY ET to meet the accelerated growth rate in season will underscore the need for an almost Meat consumption will be significantly more Record high agricultural commodity consumption. The subsequent price response unprecedented amount of demand rationing. affected than the consumption of grain prices will be required over the next 12 to incentivised the largest grain and oilseed We believe that this will be a much more (e.g. bread) as demand rationing will be 24 months in order to cut demand and harvest ever in 2008/09. However, the record difficult task than current livestock and focused in the feed grains complex. One encourage a production response from crop was not sufficient to rebuild depleted ethanol production margins would suggest. direct consequence of this, due to the long the world’s farmers next season. We expect inventory levels as consumption growth Entrenched demand, feedback effects from animal protein and dairy production cycles, agricultural commodity prices will peak kept pace with production increases. animal protein price increases, hedged will be that price effects will linger longer as somewhere between Q4 2012 and Q1 2013 Ultimately, prices dropped and output production margins within the hog and herds (especially cattle) take longer to rebuild. as new crop prospects in Brazil and Argentina faltered in 2010/11, prompting another cattle sectors and the US ethanol mandate As herds are liquidated this will increase are showing signs of trend line yields being agricultural commodity rally. The coming (Renewable Fuel Standard-RFS) will likely supplies in the short term and depress prices. achieved for corn and soybeans. Beyond this decline in world grain and oilseed stocks mean that elevated agricultural commodity In the medium/longer term this will maintain period, we anticipate an easing in prices if reinforces the longer term trend of prices will be required for the entire upward pressure on food prices as meat seasonal conditions normalise and world consumption surpassing production, marketing year and beyond in order to and dairy supplies contract. inventory levels can recover (see Figure 2.2). with production only outpacing supply sufficiently limit both US and global use.

Figure 1.4: Combined world stocks-to-use for wheat, rice, corn Figure 1.5: Combined world stocks-to-use for wheat, rice, corn &IGUR E 2ABOBANKQUAR TERLYAVERAGEGR AINANDOILSEEDPR ICEFORECASTS and soybeans began to decline in 1999/2000 and soybeans improved following 2007/08, but are forecast to decline for the third consecutive year in 2012/13 1m 1m 1m 1m 1m 1m 1m 1m 1m 1m 1m 1m 1m 1m 1m 34 2,400 120 32 2,300 110 7HEAT#"/4 USc/bu 522 496 467 653 707 786 745 690 615 643 642 860 880 900 920 ) s

k 30 2,200 c 100 o t s s 7HEAT-ATIF EUR/tonne 129 125 132 200 225 252 233 199 186 210 212 255 261 267 273

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2,000 n #ORN USc/bu 386 370 355 422 562 670 731 696 620 641 617 790 800 810 820 e e o i s p l l u i

24 1,900 f 70 m o

s 3OYBEANS USc/bu 1,002 955 957 1,035 1,245 1,379 1,361 1,356 1,175 1,272 1,426 1,725 1,685 1,600 1,450 22 y 60 1,800 a d 50 20 1,700 3OYOIL USc/lb 38.1 38.6 38.1 40.2 51.0 57.0 57.2 55.7 50.6 52.9 52.2 53.0 52.5 52.0 51.0 18 1,600 40 f f 1 1 0 2 3 4 5 6 7 8 9 0 2 8 9 0 1 2 3 3 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 1 1 / / 3OYMEAL USD/ton 306 278 281 305 338 367 353 352 302 339 413 510 490 420 375 1 / / / / / / / / / / / 1 / / / / / / / 0 0 9 1 2 3 4 5 6 7 8 9 1 7 8 9 0 1 2 2 0 1 9 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 0ALMOIL MYR/tonne 2,309 2,577 2,527 2,650 3,293 3,675 3,362 3,097 3,016 3,219 3,245 2,850 2,900 3,000 3,100 Stocks/use Consumption (RHS) Production (RHS) Corn Soybeans Rice Wheat Combined

Source: FAO, Rabobank, 2012 Source: USDA, Rabobank, 2012 Source: Bloomberg, Rabobank, 2012

3ECTION  Global agricultural prices spike, again |   | Rabobank Re-entering Agflation

prices falling 47 percent over the same evident in reduced ethanol production in even with the near doubling of corn prices in 6ALUE ADDEDPR OCESSING period. However, the next largest drawdown the US and then, as hedge coverage declines recent months, a USD 1.50 per litre soft drink, The impact of the rising agricultural in net long positions, -73 percent in 2011, into Q1 2013, in the North American animal sweetened with high fructose corn syrup, commodity prices in the value-added &OOD!GRIBUSINESS2ESEARCHAND!DVISORY&!2 'LOBAL&INANCIAL-ARKETS saw prices fall 26 percent, suggesting that protein sector. Ethanol production will remain has less than a nickel’s worth of corn in it. processing sector varies depending on a !GRI#OMMODITY-ARKETS2ESEARCH!#-2 &INANCIAL-ARKETS2ESEARCH fundamentals following this period required a feature in the US, although it will decrease Coca Cola and PepsiCo took pricing up by number of factors, including the percentage still higher prices than speculators were for the first time in 17 years in 2012/13. There 3.5 percent to 5.0 percent in 2011, but have share of commodities within cost of goods Luke Chandler, Jan Lambregts, willing to bet on. If fundamental data are indicators that this decrease may begin been less aggressive in 2012 based on lower sold, hedging strategies and the specifics of Global Head Head of Financial Markets Research continues to deteriorate, and demand soon, with current ethanol production margins agricultural commodity costs. Global soft supply agreements with customers, to name +44 20 7664 9514 +44 20 7664 9669 for agricultural commodities proves as near the worst in the industry’s history. drinks companies have seen an easing of a few. These factors will decide the extent [email protected] [email protected] entrenched as we forecast, speculative net packaging and ingredient costs over the past of the impact of recent price increases on World feed consumption demand is nearly longs in the agricultural complex should 18 months as PET resin, aluminium, sugar, food processors, their margins and profits. Elwin de Groot, impervious to price shocks in the short term, Keith Flury, continue to rise, surpassing record levels set juices and coffee prices have all moved lower Macro Strategist with global demand rising in 36 out of the In the absence of advertising and Senior Commodity Analyst in September 2010. Further supporting the in comparison to 2011. +31 30 216 9012 last 47 years and only declining 5 percent YOY promotional spending, the relative impact of +44 20 7664 9676 fundamental, rather than speculative, backing [email protected] on two occasions in the 1974/75 and 1988/89 Beer rising commodity prices on the profit and loss [email protected] of the 2012 rally is that much of the gain in marketing years (see Figures 2.8 and 2.9). Within the beverages category, the negative accounts of private label and B-brand players prices pre-dated the speculative increases. Adrian Foster, This remains the most difficult portion of impact of higher grain and oilseed prices has across the various VAP subsectors will be This is in sharp contrast to 2008. Erin FitzPatrick, Head of Financial Markets Research, Asia Pacific the balance sheet to forecast as strategic been the greatest on brewers, especially in higher than for A-brands. With agricultural Commodity Analyst +852 2103 2612 geopolitical decisions, including stockpiling, drought-stricken regions such as Ukraine and commodity input costs accounting for $EMANDR ATIONINGT OHITBIOFUELSAND +44 20 7664 9540 [email protected] tariffs and export bans, will determine how Russia. Prices for malting barley, an essential roughly 35 percent of a private label player’s ANIMALPR OTEININDUSTR IES [email protected] much strain is placed on major grain and ingredient in the brewing process, have revenues on average, and an average Demand rationing for grains and oilseeds use #ORPORATESALESCONTACTS oilseed exporting nations—the largest of jumped as farmers shifted away from planting operating margin of 5 percent, it is clear is expected to be strongest in the US ethanol Nick Higgins, ASIABrandon Ma which is still the US. Rabobank expects barley to corn, which has been bringing that the current spike in prices will seriously industry, where corn use is expected to +852 2103 2688 combined global soybean and corn trade of higher prices. Larger global brewers are hurt the less differentiated processors. Even Commodity Analyst fall 11 percent YOY in the 2012/13 season. [email protected] 191 million tonnes in 2012/13, up 4 percent able to secure longer term contracts and A-brands are likely to experience initial +44 20 7664 9543 Although US ethanol and short-term animal YOY, spurred by Chinese soybean demand. use hedging to protect themselves against difficulty passing on higher prices to [email protected] protein production are both relatively AUSTRALIATerry Allom This will place further pressure on the US recent price increases. Beer makers have customers, depending on the duration of inelastic, the scale of the US drought will +61 2 8115 3103 internal stock situation and, ultimately, prices seen malt barley price increases ranging their supply agreements, as they are likely require significant demand destruction across [email protected] for consumers. This will especially be the from 40 percent to 80 percent, and hops to have been caught off guard by the recent #ONTRIBUTING&!23TRATEGISTS both industries, in order to contain shortages case if government stockpiling increases suppliers announced increases ranging price moves as well. Especially during these in feed grains. Importantly, we see declines David C. Nelson, EUROPEArjan Veerhoek and low demand elasticity means larger price from 20 percent to 100 percent, depending times of economic headwind, retailers and in ethanol use happening within the bounds Global Strategist +31 30 216 9040 increases are needed in the US as a result. on the variety of hops. Over the past decade, their customers will be very reluctant to of the ethanol mandate, dictated by the Grains & Oilseeds; Animal Protein [email protected] hops price increases have been driven accept price increases. needs of gasoline refineries, with further Diminished US soybean production and +1 312 408 8210 by a global shortage and poor output declines possible (but not likely) whether or subsequent evidence of inelastic Chinese Food processors have several options to EUROPEDavid Kane in Europe. The global acreage dedicated [email protected] not the mandate is waived in the near term. demand suggest higher prices are needed respond to rising input costs in the near to +44 20 7664 9744 for hops growing has fallen by half in the Global corn and soymeal use for animal feed to ration demand in 2013. Prices for soymeal medium term, including trying to pass on [email protected] past 12 years and craft brewers are finding Cyrille Filott, is forecast to decline over 6 percent from and soy oil have also risen, maintaining crush input price increases to customers, internal scarcity of hops supply to be their Head of FAR Europe initial 2012/13 USDA estimates in May, margins, and driving import demand for cost savings, smaller package sizes and BRAZILSergio Nakashima greatest concern. +31 30 71 23814 although it is still set to rise 1 percent from China. Soymeal is seen as the limiting factor portions while keeping prices unchanged, +55 11 5503 7150 [email protected] 2011/12 levels. Rabobank expects that in the oilseeds complex, demonstrated by its ingredient substitution, and further pruning [email protected] demand rationing will initially be most 69 percent outperformance of soy oil YTD. Tim Hunt, US & CANADASarah Lee Global Strategist, Dairy +1 212 916 7875 +1 212 916 7833 [email protected] Figure 2.6: Net long positions by managed money in the Figure 2.7: Speculative net longs have been relatively more Figure 2.13: Beverage prices increased in July but remain [email protected] agricultural complex have increased to levels seen in 2007/08 concentrated in the grain and oilseed complex during the considerably below the highs reached in early 2011 US & CANADANeil Williamson but are below 2010/11 highs current agricultural commodity rally +1 212 808 6966 15 Ross Colbert, 1,400 600 1,400 240 [email protected] Global Strategist, Beverages 1,200 550 1,200 10 220

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Managed money net length S&P GS agri commodity Index (RHS) Grains and oilseeds Soft commodities Livestock Beverage price index Price change (RHS) WWWRABOTRANSACTCOM

Source: CFTC, Liffe, Rabobank, 2012 Source: CFTC, Liffe, Rabobank, 2012 Source: IMF, Rabobank, 2012

fundamentals (low growth, lower oil circle, with governments committing severe drought in the US (its worst prices, weak consumer confidence to domestic stockpiling and other since 1936) and similar water and a depreciated US dollar); interventionist measures earlier shortages in Russia and South interventionist government policies than usual - recognising the risk of America. This rally in grain and could exacerbate the issue. being left out as exportable stocks oilseed prices will have a significant Stockpiling and export bans are a decline further. knock-on effect on other F&A supply distinct possibility in 2012/13 as chains especially the animal protein governments seek to protect On top of that, Rabobank warns that industry, resulting in rising meat domestic consumers from increasing global food stocks have not been prices. food prices. Increased government replenished since 2008, leaving the intervention will likely encourage market without any buffer to further increases in world adverse growing conditions. Efforts commodity and food prices. by governments to rebuild stocks Rabobank expects that localised are likely to add to food prices and efforts to increase stockpiles will take supplies off the market at a prove counterproductive at the time when they are most needed. global level, with those countries S least able to pay higher prices likely Background to see greater moves in domestic Current price inflation is the result W food price inflation. This is a vicious of weather driven events in large E

exporting nations, principally a N

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A world shortage of pork and bacon "It usually takes at least six months "Some have got only a few weeks next year is now unavoidable, says for higher production costs to filter left before they run out of credit at Britain’s National Pig Association. through to shop prices - but pig the bank and have to sell up, and farmers simply haven't got that this is happening all over Europe." But the association said long," said National Pig Association supermarkets can protect chairman Richard Longthorp, who New data shows the European consumers from shortages if farms outdoor pigs in Yorkshire. Union pig herd is declining at a "they pay Britain's loss-making pig significant rate, and this is a trend farmers a fair price, to help them that is being mirrored around the remain in production". world. Pig farmers have been It usually takes at plunged into loss by high pig-feed Around the world, pig farmers are “ costs, caused by the global failure of selling their herds because they can least six months for maize and soya harvests. no longer afford to feed their pigs. higher production In the United States the government All main European pig-producing introduced a pork-buying costs to filter countries report shrinking sow herds. programme in a bid to keep its pig through... but pig Falling numbers in the 12 months to farmers in business. And the Chinese farmers simply June 2012 have been reported this government is putting pork into cold week by Denmark (-2.3), Germany (- storage, as a buffer against haven’t got that 1.3), Ireland (-6.6), Spain (-2.8), France shortages and high prices next year. long. Some have (-3.2), Italy (-13), Hungary (-5), the Netherlands (-3.6), Austria (-2.8), Pig industry leaders from across the only got a few weeks Poland (-9.6) and Sweden (-7.2). European Union met in London left before they run earlier in the month to explore ways out of credit at the “British supermarkets know they to ensure pork remains the world’s

have to raise the price they pay K

most affordable red meat. They bank and have to Britain’s pig farmers or risk empty C reported that pig herds are being spaces on their shelves next year,” sell up, and this is O sold because prices are not rising

said NPA chairman Richard T happening all over fast enough in supermarkets to Longthorp. “But competition is so S cover the cost of record-high pig- Europe. fierce in the high street at present, E feed costs. each is waiting for the other to V Richard Longthorpe: National I

move first.” L Pig Association chairman “ OCTOBER 2012 FARMINGUK 7

In its Save Our Bacon campaign, NPA is asking shoppers to make a point of selecting pork and bacon with the British independent Red Tractor logo, as an increase in demand for British product now may help persuade supermarkets to act before it is too late.

Sainsbury’s has increased the price it pays to a few of its pig farmer suppliers and NPA has welcomed this gesture. But it says the major supermarkets need to do much more, if they want to protect their customers from shortages and high prices next year.

British Pig Executive Mick Sloyan warned a private meeting of British and mainland Europe retailers at a Brussels summit yesterday that a fall of only 2 percent in slaughterings next year will cause prices to rise by 10 percent. Dairy coalition calls for

NPA believes slaughterings could cuts cash to be given fall by as much as 10 percent in the second half of next year, which back indicates a doubling of the price of European pork and pork products. “If supermarkets act now, they can The dairy coalition is calling for the cuts to be paid back to farmers, the prevent this happening,” says NPA. urgent reinstatement of the money coalition of dairy organisations taken away from dairy farmers including the NFU, NFU Cymru, NFU during the price cuts in May and Scotland, FFA, the TFA, the WFU and June and for evidence that those the RABDF, will also be scrutinising retailers who committed to the all market movements to ensure delivery of more sustainable pricing that market increases are reflected models will be met. in farm prices.

Today’s call comes just two weeks Speaking on behalf of the coalition after SOS Dairy went to the of dairy NFU President Peter Kendall Livestock 2012 event in Birmingham said: “It’s becoming increasingly to keep up the pressure that has apparent that some customers of seen the campaign successfully fight dairy farmers are yet to be for dairy farmers. convinced of market dynamics.

Results have seen the planned “Rest assured, we will be writing to August milk price cuts rescinded, the engage with those key players in the launch of the first voluntary code of coming weeks to ensure that any practice which will help to redress market increases are reflected, as the balance of power between milk they should be, in the price paid to processors and farmers and the farmers.” start of a dairy database to help likeminded dairy farmers explore “The coalition will continue to meet the formation of producer regularly with key processors and organisations under the forthcoming the food service industry to ensure S EU dairy package. they understand the cost pressures W

on farmers.” E As well as calling for historical price N

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Calls to scrap the biofuels element hunger" said ActionAid's policy and environmentally damaging. of the Renewable Energy Directive adviser Tim Rice. have been described as “Biofuels represent the only realistic "staggeringly short shighted" by the "Crop based biofuels should have no means of reducing Europe’s reliance National Farmers' Union today. part in EU or UK renewable energy on imported fuel and help address policy.” GHG emissions in the transport Policy makers for the European sector. The EC currently estimates Union had planned to limit biofuels NFU chief combinable crops adviser that transport is responsible for from food crops in response to rising Guy Gagen said: “Incredibly, Oxfam about a quarter of the EU’s GHG prices of food. and some green and development emissions, yet abandoning biofuel NGOs continue their involvement as production would ensure that "Many of the organisations calling interesting bedfellows with OPEC, oil dependence on fossil oils continues for an end to biofuels fail to take and food multinationals and long into the next decade. into account the huge impact numerous climate change deniers by European transportation has on joining their chorus for an end to “The biofuel industry has been climate change" the NFU said. biofuel production. helping address the needs of both food and fuel through long term "The European Commission must “We have identified unexplained market stability, flexibility of show strong leadership, with a clear contradictions in many of these cropping patterns and bio-refining focus on the long term benefits to calls, especially when Europe to produce quality, high protein European fuel security and the imports around 84 per cent of its animal feed, for which the European environment". crude oil from abroad and the same Union has a 20million tonne deficit NGOs demand an end to EU grain each year. Organisations against food-based exports or drive direct land use biofuels welcomed the limit change here while ignoring its “The leaked EC proposals, if proposed by the EU. indirect impact overseas. At a time implemented, could exacerbate the when fossil fuel costs are high, the situation of high prices. Removing

“As recent events in the US drought- cost of increasing our dependency certainty from the market will send S stricken corn-belt show, a mandate on fuel imports from OPEC and a signal to arable farmers to W

to turn food into fuel can destabilise others by removing biofuel concentrate on reducing costs as E world food prices and worsen world mandates would be both financially they did in 2007.” N

OCTOBER 2012 FARMINGUK 11

EWT IN TURBINE LICENSING DEAL FOR BRAZIL

September 2012 EWT has certainly will achieve success. FEEL is the permanent magnet 2.0MW concluded a license agreement for already preparing to install the first turbine back in 2010. The new the Brazilian market with Flessak turbines by mid 2013." turbine is expected to have a best- Energia Eolica Ltda (FEEL) in order in-class performance level due to its to introduce EWT’s 900kW direct EWT’s previous experience with low weight to rotor swept area drive wind turbines in Brazil. licensee partner China Energine has ratio. shown how successful such a project The first facilities for the production can be. CEO Eric Bakker states: of components for DIRECTWIND “EWT is confident to have found the 52/54-900 wind turbines are being right partner in the quickly growing built in the province of Parana Brazilian market. With the vast “EWT is confident (southern Brazil) and will be sized to experience in the manufacturing of produce for the fast-growing hydro generators and their to have found the Brazilian wind market. knowledge of industrial processes right partner in combined with a very good The Brazilian wind market is one of knowledge of the market and EWT’s the quickly the most promising markets for the proven direct-drive technology, we wind business in the coming years are perfectly positioned to be growing Brazilian with a strong focus by local successful in Brazil.“ market... we are governments to attract skills and production to the area. An attractive EWT and FEEL are also developing perfectly niche in this market is the net an electrically excited generator for metering segment which is driven by EWT’s new 2.3 MW wind turbine positioned to be recently introduced net metering which will be prototyped in the successful in regulations for projects up to 1 MW Netherlands. and for which the EWT 900kW Brazil. S turbine is perfectly suited. Pedro This wind class IIA turbine will be Fulan CEO of FEEL is very excited Eric Bakker: W

EWT’s second in the 2MW class E about this deal: "The 900kW turbine after the successful introduction of EWT CEO “ N OCTOBER 2012 FARMINGUK 13

Farmers views of black-grass and its control

The majority of farmers across the farmers had done to approach their farm and 4% were unsure if UK (61%) rated their black-grass black-grass control, both cultural they had resistance or not. ACCase control last year worse or and chemical methods, and what target site resistance to fops, dims significantly worse than the they plan to do this autumn. Close and dens was highlighted by 39% of previous season, according to a to 200 farmers across the UK farmers. ALS target site resistance to BASF sponsored survey conducted answered a series of questions sulphonyl-ureas and enhanced in this summer. mainly related to black-grass and metabolism resistance was marked the results make interesting reading. down by 26% and 27% of farmers A quarter of farmers thought their What is encouraging is the depth of respectively. However this was black-grass control was the same understanding farmers have about confirmed by a resistance test in and just 14% thought it was better how best to control black-grass and only one third of cases. or significantly better and this was also the importance they place on mainly due to good timing of both chemical and cultural control. Integrating chemical and cultural herbicide applications, use of What proves to be difficult are the strategies came through strongly in break/spring crops and good practicalities of implementing best the survey; ploughing was the seedbed preparation. A lower black- practice on farm, evident last preferred method of cultural grass seed bank, use of delayed season where the weather had a control, followed by spring cropping drilling, adequate moisture and big impact.” and then delayed drilling. good efficacy from pre-em Unsurprisingly fallow was quoted as herbicides also featured strongly. Asked about the incidence of black- the preferred method of control by grass on their farm, almost half of just 4% of farmers. What was You only had to look at the amount farmer respondents categorised different compared to the previous of black-grass above crops this black-grass as a problem on over year was the ability to kill several summer to realise that control levels 50% of their arable land; whilst flushes of black-grass last autumn; S were disappointing in many instances, almost one third said it was a 28% of farmers said that they were L says cereal herbicide specialist Sarah problem right across the whole field. unable to kill any black-grass prior to A Mountford-Smith of BASF. Weed resistance was a problem on drilling last autumn. Almost 50% of E most farms included in the survey. farmers said that they managed to R “We wanted to find out what Only 8% cited no weed resistance on kill just one weed flush. E C

OCTOBER 2012 FARMINGUK 15

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With the autumn upon us, and results from BASF funded research showing that weed seed dormancy is very high, all the above tactics will be important. In many fields this year there will be a high seed return. The amount and timing of weed emergence will depend on the freshly shed seed summer 2012 Surge in seed potato (which has high dormancy) and the population in the seed bank (which will emerge very soon in the export figures presence of moisture). The seed potato industry is on a Mylnefield Research and from Whilst 90% of 2012 seed is high as Potato Council has Science and Advice for Scottish expected to emerge 60 days after announced another record year for Agriculture (SASA) plus support from drilling, 10% will emerge in the seed exports, with this year’s the Scottish government is also key presence of moisture, and this figures surpassing 103,000 tonnes. to achieving a strong export position autumn there is no shortage of for varieties from GB. that. This means there is a good “This year, despite the testing opportunity to reduce populations conditions experienced by growers, “Moreover, by establishing an prior to drilling, provided the late we have achieved another record important presence at targeted harvest allows. for our exports of seed potatoes,” international events such as Potato says Potato Council head of seed Europe and Fruit Logistica, we are The success of this practice and export Rob Burns, who has helping our exporters to enjoy a depends on the seed bank recently returned from a successful higher profile for a modest cost population and its proximity to the Potato Europe. when they share the stand with us. soil surface. Where control from At Potato Europe this year, we 2011/12 was poor and high seed “Key areas of growth have been the again achieved a significant increase return expected, ploughing could North African countries and the in footfall on our stand, which be the best option in order to bury Middle East, thanks in part to careful will further help our exporters seed. Cultivations will, however, development of seed potatoes to to build trade.” stir up the seed bank bringing up ensure great results in varying old seed; it is important to consider climatic conditions. This is really British seed potatoes are what is likely to come back up. exciting news as these markets are successfully produced for fresh developing, and should show and processed markets in countries Advice this autumn is to delay important growth in the coming years.” as diverse as Egypt, South America drilling the worst black-grass fields and Asia. on the farm and utilise stale Mr Burns attributes the success to seedbeds to spray off flushes that the professionalism of exporters, “Our success in the export markets S germinate before drilling combined with Potato Council’s is mainly due to a winning L whereever possible. work with overseas governments to combination of professionalism, A help smooth the path for teamwork and offering the different E international import conditions. markets what they need, with timely R E

Independent specialist advice from delivery assured,” he concludes. C

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The European Commission is the EU's GMO safety assessment Food Safety Authority (EFSA), which pushing through a new draft be strengthened. has questioned the need for feeding Regulation that weakens the way trials. EFSA also claimed that 90-day genetically modified (GM) foods The draft Regulation has not been trials are sufficient to identify long- are assessed for safety. subjected to formal Parliamentary term toxic effects. scrutiny but will be voted on in a The Commission's move comes just behind-closed-doors Commission The new study shows that EFSA's as new research has revealed that committee on an undisclosed date and the Commission's positions are a GM maize already approved in in the coming weeks. faulty. Clearly feeding trials are Europe for use in food and feed, necessary to reveal unexpected can cause tumours, premature Activists are calling on the toxic effects. And they must be death and organ damage at Commission to freeze the progress long-term. While 90-day trials failed levels claimed to be safe by EU of the draft regulation and open it to to detect tumours and premature regulatory authorities. full public consultation in light of the deaths, the longer 2-year study new scientific findings. revealed this harm. A new study found that rats fed over two years with GM maize at levels Yet EU authorities had approved this A 2009 analysis by independent permitted in drinking water, food GM maize as safe, based on a short scientists of industry's own 90-day and feed, died earlier than rats fed 90-day rat feeding trial trial data on NK603 maize showed on a non-GM diet, according to commissioned by the crop's that even this data revealed signs of research conducted by French developer, Monsanto. liver and kidney toxicity. But the scientists who carried out the trial. European Food Safety Authority The new research shows that rats (EFSA) ignored these signs, "If adopted, the draft Regulation will only began to develop tumours after concluding that NK603 was "as safe" leave the public even more exposed four months – an effect that the 90- as non-GM maize and "unlikely to to serious health risks such as those day feeding trials typically done for have an adverse effect on human revealed by the new study" said GMO assessments cannot detect, as and animal health". Claire Robinson, research director 90 days is just too short. at Earth Open Source. Claire Robinson said, "The history of S

The draft Regulation does not this maize shows that EFSA is unfit L

The report says the draft Regulation require long-term feeding trials and for purpose and too close to the GM A undermines democratically contains problematic wording that industry. EFSA's industry-friendly E established EU GMO legislation could enable even the weak 90-day stance on GMOs has unfortunately R and 'betrays' demands in 2008 by study to be waived in future. This infected the draft Regulation." E the EU Environment Council that would fit the stance of the European C

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Protestors from the UK joined the environment, biodiversity, climate The march will culminate in a mass largest ever rally in Brussels calling change, public health and the future brunch outside the European for radical farming reform. of our countryside" said Kirtana Parliament with organic, seasonal Chandrasekaran, Food campaigner, and regional food. Demonstrators The activists say the global food Friends of the Earth England, Wales will hand over albums filled with one system prioritises multinational and Northern Ireland thousand messages on food and corporations over the "demands of farming from citizens to ordinary people". "Members of the European representatives of the European Parliament must heed the call of institutions. The march called for a more citizens for strong and genuine sustainable farming system, a halt to green reform of the CAP. It is time The Good Food March is the food speculation and the usage of for the parliament to show initiative of ARC2020, European local protein feed crops rather than leadership and ensure there is Coordination Via Campesina, the importation of soy to feed transparent and inclusive decision- European Milk Board, Friends of the Europe's farm animals. making which takes into account Earth Europe, IFOAM EU Group, opinions of all parliamentarians and Meine Landwirtschaft, Group Citizens of more than 20 EU civil society.” PAC2013 and Slow Food. In total countries joined the final day of the more than 100 organisations from Good Food March demanding fairer Geneviève Savigny, a farmer from 20 countries are involved. and greener farming, an end to food France and a spokesperson for the speculation, and more home grown European Coordination Via protein animal feeds. Campesina said: “The Good Food March is the biggest gathering of The Common Agricultural Policy citizens calling for a radical change (CAP) is currently being debated by of direction in European food and decision makers in Brussels and the farming policy. It has attracted European Parliament will make key people from across Europe, sending S decisions on the CAP in November. a very powerful message to decision W

- makers that people want planet E "EU agricultural policy affects our friendly farming with many farmers." N

OCTOBER 2012 FARMINGUK 21 Helping Specialist FFAFARMERSDESIGNARMERSDESIGN Designers of ANDBUILDANDBUILD PPoultryoultry Housing POULTRYHOUSESPOULTRYHOUSES ss& &ULLYTREATEDEXTERNALULLY TREATED EXTERNAL SINCESINCE TIMBERCLADDINGTIMBERCLADDING ss &REE RANGEHOUSESWITH&REE RANGE HOUSES WITH POP HOLESPOP HOLES ss 4RADITIONALMULTI TIER44RRADITIONAL  MULTI TIER layerlaayyyerer systems ss #ENTRALORENDSTORES#ENTRAL OR END STORES ss& &ULLYINSULATEDFOREGGULLY INSULATED FFOOR EGG CCOLLECTIONHANDLINGOLLECTION HANDLING ss$ $ESIGNEDTOCUSTOMERESIGNED TO CUSTOMER requirementsrequirements ss "UILTTOLAST"UILT TO LAST

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,,ONG7HATTON ,OUGHBOROUGH ,EICESTERSHIRE ,%$%ONG7HATTON ,OUGHBOROUGH ,EICESTERSHIRE ,% $% 44E4EL  &AX  EL     &AX     %%MAILPOULTRYMAILPOULTRY HHARLOWBROSCOUKWWWHARLOWBROSCOUKARLOWBROSCOUK WWWWHARLOWBROSCOUK FRANCE TO CONVENE G20 MEETING TO AVERT FOOD CRISIS

France said that they are to Washington on global wheat averaging 2.63 MT/ha, 14.6% down convene an emergency meeting prospects this year, pegging the vs 3.08 MT/ha last year. of the G20 in October to discuss world wheat crop at 665 MMT - 6 possible measures to avert an MMT more than the USDA's estimate . Corn harvesting there is only in the emerging food crisis. On the early stages, producing 2.63 MMT so agenda are said to be proposals The Russian Ministry stuck by their far. Agritel estimate a total harvest to limit the usage of biofuels forecast of a grain crop there of 70- there this year of 19.5 MMT of corn, derived from crops to a less 75 MMT this year, around 20-25 14 MMT of wheat, 6.76 MMT of than 5% inclusion rate. MMT less than a year ago. barley and 1.1 MMT of rapeseed.

The markets did a pretty good job Nobody is sure how, when or even if That would potentially be a stark of ignoring tumbling US soybean they will make any move to restrict about turn, one about which the (pictured) prices, which were exports, although most are Secretary General of the EU sharply lower for a second day convinced that something will have Biodiesel Board said he was in succession. to be done before too long. "surprised, concerned and shocked." Some recent reports have suggested ABARES maintained their view that S

The Kazakh Ministry said that their that biofuels from food crops are L Australia would export 23 MMT of grain harvest was 87% complete, maybe "not as environmentally A

wheat in 2012/13 - matching the producing 11.5 MMT to date. The friendly as first thought. E

2011/12 record and 2 MMT more Ukraine Ministry said that their R

than the USDA currently predict. harvest was 72% done producing E

They are also more bullish than 28.5 MMT so far. Yields are C

OCTOBER 2012 FARMINGUK 23 GREATER TRANSPARENCY

Arable farmers face a challenging 2.1 percent increase from 2011. Arable Marketing Committee. year ahead because of forward Grain for direct human consumption sales prices and poor quality grew 1.1 percent from 2011, write Merchant and cooperative production of the 2012 crop, report authors Danielle Nierenberg representatives alike pointed to end despite strong wheat prices. and Katie Spoden. users striving to be as flexible as possible with intake requirements, NFU has advised members to work The world relies heavily on wheat, within the boundaries of maintaining on a detailed understanding of the maize (corn), and rice for daily consistency of product to their quality of their grain, to combine sustenance: of the 50,000 edible customers, including livestock sampling and analysis with plants in the world, these three farmers. In addition, merchants and segregation in stores and to take grains account for two-thirds of cooperatives alike have to fulfil a action to improve quality before global food energy intake. large amount of contracts, many final movement. transacted well before harvest at With the right information, and minimum specifications that are "Farmers need to know what the without the element of surprise, now not readily available. quality of wheat is and, if in doubt, better transparency of the evidence to discuss before loading," the for claims in the wheat sector will At the same time merchants and farming union said. help to maintain improving coops are working hard with farmer relationships within supply chains. suppliers to determine available Global grain production is expected quality and secure the best possible to reach a record high of 2.4 billion Dealing with the aftermath of one destination. In practice this tons in 2012, an increase of 1 of the most difficult harvests for collaborative approach means that percent from 2011 levels. many years will require the whole almost all grain must be analysed chain from farm to feed mill and before collection. The process will According to the United Nations retail outlet to work together, is take time to achieve but should Food and Agriculture Organization the consensus emerging from the deliver a better net result for (FAO), the production of grain for latest meetings of the Agricultural farmers and indeed for every part of animal feed is growing the fastest - a Industries Confederation’s national the grain chain. “Harvest 2012, and its quality issues, are able to extend the range of “We do not expect a penny by will add costs to every part of the crop they can take. penny list for each claim, but we grain chain,” comments Paul Rooke, have not seen anyone publicly AIC’s head of arable marketing. Rook said only through whole chain explain or query why claims on “This will include apportionment of collaboration will the best outcome quality seem to be at odds with claims on contracts where goods do be achieved from the 2012 crop. HGCA’s work on specific weight not meet the contracted quality and pig and poultry feed. specification. That is a simple “Farmers generally recognise the unavoidable fact. facts about this year’s harvest and “In particular the trade needs to be that it will need to be managed" said clear that any claims are consistent “For farmers and the trade this Andrew Watts, NFU combinable with those from a mill or means working together, as closely crops chairman. compounder. In light of the difficult as possible, to both understand season we have asked AHDB to look what quality exists and then to find "We are challenging merchants and at this work to help ensure future the most appropriate destinations at processors to help them by being contract specifications are more home or abroad. Extending contract much more transparent about the relevant to end-use. periods may be just one example of way in which claims are calculated. the flexibility needed to secure A difficult season will demonstrate “There have been a number of destinations for crops which might where a farmer’s interests are best disruptions that have shaken the otherwise struggle to find a buyer served within the trade." grain industry in the past few years based on their specification.” but progress has been made in However, the NFU says there needs recent seasons to build better grain Trade companies continue to work to be greater transparency of trade relationships. We do not wish S L overtime to both develop a better individual intakes explaining how to spend a whole season in conflict overall picture of the quality fallbacks are applied to specific and with high tensions that will A E available and its location. This weights, on a scale that multiplies undermine the progress that has R

knowledge will develop an the penalty as weight reduces. been made.” E

understanding of where end users C

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Farmers are being invited to see at Myriad CEG Wind expect the target to generate 260,000kW first hand how renewable energy turbine alone to generate an in its first year. solutions can turn a £23,000 a year income of £85,000 a year, power and heating bill into a profit. including the electricity saving. Seventy per cent of that is exported and the 30 per cent he uses himself Paul Basford, who lives in a large The house and grounds is similar in along with the income from the country house at Menmuir, near its energy demands to a farm and electricity sold back to the grid has

Dundee, with his family, is using Paul is opening his home to farmers wiped out his electricity bill entirely. E wind power to generate his wanting to look at his turbine. They R

electricity needs and is making can call him to arrange an On top of that he has a 125kW U money by selling the surplus to the appointment in advance on 07966 biomass boiler providing his heating T national grid. 714874 and learn direct from the – including his pool, which he and A owner, look at the setup etc. his family can now use without E F

And he also heats the house, his seeing bills soar as a result.

swimming pool, and outhouses, After taking Myriad CEG’s expert G He said: “My utility bills were using a biomass boiler fuelled in the advice Paul decided Northern Power N main by wood from the 37 acres of was the best 100kW turbine on the something like £23,000 a year for I S land his home sits in. market and he turned to Myriad electricity and oil – and rising. I

CEG Wind’s expert team to supply T

It all adds up to a dramatic cut in and install it. “I was looking at ways to make the R bills for Paul, who turned to house more economical and pay for E green power after contacting The planning process took just six itself and I’ve found it. This is the V

Myriad CEG, the UK’s leader in months – with no objections from best investment I could have made.” D renewable energy. his neighbours - and his turbine is on A

OCTOBER 2012 FARMINGUK 27

Paul, who has lived at the property, Paul’s biomass boiler is fuelled in boilers and all forms of renewable 25 miles north of Dundee, for 10 the main by wood collected from his energy can bring to them.” years, said: “Everything went land – the rest is supplied locally. He smoothly with the planning process finds it a simple and efficient Myriad Rural Energy are the leading and the installation, with Myriad method of providing heat for the experts in biomass boiler heating providing advice and support property. systems, and are on course to hit throughout. the 600 installation mark in the next

Phil McVan, managing director of 12 months. E

“In the first six months the Northern Myriad CEG Wind, said: “Paul was R

Power turbine has generated similar to many famers in that rising Its carbon-reducing energy systems U

130,000kW/h, which is fantastic. utility bills were proving a real currently generate 90MgW of T

problem– the size of his bill for electricity in the UK and its clients A “The team at Myriad CEG were heating oil was continuing to go up include local authorities, health E F absolutely marvellous and very and up. providers, education authorities and

professional. They did exactly what the National Trust. G

they had planned, when they had “He took the decision to utilise the N planned to. land he has to explore the options of I S

renewable energy, and it has I

“Renewable energy has certainly certainly paid off. The figures T provided the solution for me and I certainly added up. R think more and more people are E now looking at the advantages it can “The potential is there for farmers V bring to them.” to get involved and to cash in on the D

benefits wind turbines, biomass A

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Machinery World, experts in pushed milk farmers over the years The free consultations will provide sourcing and selling new and used and it’s reached a point where there an unique insight into the industry, dairy processing and ice cream is only minimal profit to be made. revealing a lot that’s only really machinery, has announced that it For the hours and investment it visible to those already working in it will offer, with immediate effect, takes to run a successful milk farm, and will cover everything from free consultations and advise to despite many doing it for the love of beginning to end, including initial milk farmers who are looking to the job, there has to be a financial discussions about end goals and expand operations and enter the gain at the end of the day. targets, defining a niche, recipe world of ice cream manufacturing. discovery, packaging, transport, “Moving or expanding operations marketing, expected profit, and of The new service is a result of the during an already financially course the machinery required to continuing ‘milk wars’ between uncertain time is scary enough but, make it a successful and worthwhile supermarkets, milk agents and dairy if the industry knowledge isn’t there transition. farmers which, in some then it’s just plain frightening and circumstances, has seen farmers could put people off the idea all Paul continued: “We want to help as almost forced to accept a price per together. We’ve been in the much as we can and give a real life litre that didn’t cover the cost of industry for many years now and insight in to workings of the general production and, certainly feel our knowledge and experience industry. It’s a great industry full of didn’t take into account the rising can help others and give them the fantastic people but that doesn’t E cost of feed, pesticides and other confidence make the initial steps mean to say it’s for everyone. We’ll R welfare necessities. into the ice cream industry – or at provide support from inception to U the very least give them the success and everything in between. T The clearly unsustainable, almost information required to make an We’ll even set-up a fully-working A E

artificial business model has given educated decision whether the production line so those considering F some producers no other choice but move is for them or not. making the switch can see what is to seek alternative, or additional, involved, learn, and then make a G means of income and the potential “Over the years we’ve helped many decision from there.” N I

profitability of the ice cream people set-up in the industry; some S manufacturing industry has already from milk farming backgrounds and Machinery World was established in I been identified as an attractive others with no dairy experience at 1999 with the primary aim of T prospect by many of these. all but, each and every one of them providing the dairy industry with R now has their own enterprise, with access to expertly sourced and E Paul Crowter, managing director of several making a lot of profit and competitively priced secondhand V Machinery World, commented: “The others, even more.” dairy machinery of the highest D supermarkets have pushed and A OCTOBER 2012 FARMINGUK 31 Invest* £86,000 and earn £200,000 to £300,000 over the next 20 years for your farm and family www.bherenewableenergy.co.uk Install solar panels!

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2200 84% 3 361446144 26.0p26.0p £9,381 1180728072 88.65p .65p £1,563.23 18072 79.5p £14,368.51 £25,313£0 £0 £25,313£317,908 Figures accurate for 50kW system at time of printing. quality. Today, with over ten years globally renowned manufacturers experience within the industry, including Cattabriga, Promag and Machinery World has bought and the industry’s premium brand, sold machines in over 90 countries ROKK-Processing. worldwide and has built an extremely valid reputation as a “We can’t of course guarantee respected and professional outfit. success but we can certainly increase the chances of it by offering Furthermore, contrary to a common guidance on every aspect of misconception, buying secondhand operating within the sector.” Added machinery doesn’t mean that the Paul “With the primary ingredient

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Machinery World, every machine is almost natural progression for milk U

meticulously tested and cleaned farmers, and it could be the T and, should any parts need progression that offers a fresh start A replacing, then they are done so and ultimately, the opportunity to E F before the machine is re-sold. change their fortunes for years to

Another huge advantage is the price come.” G with it not being an uncommon N occurrence for machines to sell for To find out more about the new free I S

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However, if it’s new machinery or email R that’s sought after, Machinery [email protected] E

World can also easily fulfil the V requirement. It has long acted as the D

sole UK agent for a number of A

OCTOBER 2012 FARMINGUK 33

ECOLI POULTRY VACCINE TO BE LAUNCHED

An innovation in protecting research beginning in the 1990s at manager of Pfizer in the UK and chickens against E.coli bacteria has the Government’s veterinary Ireland. “It is the only modified live, been achieved with the launch of a laboratories at Weybridge (now nonreactive vaccine proven to meet first modified live vaccine. AHVLA) in the UK, employing the European regulatory genome technology to produce an requirements for efficacy and safety. The vaccine, which can be used from avirulent strain of E.coli that induces one day of age, is set to bring major protective immunity to the “Trials have confirmed that Poulvac benefits in safeguarding the health pathogenic strains of the bacteria. E.coli does not persist in the bird of broilers, pullets for egg laying and and proves to be self-limiting. The breeding stock. The vaccine is completely non- vaccine can survive in the pathogenic, and does not persist in environment for only a short time, E.coli is a costly, widespread the bird or the environment for any and spread to in-contact birds is also problem for the UK poultry industry. significant period of time. A gene limited.” It is one of the most significant deletion in its development restricts bacterial pathogens found in chicks in vivo replication and leaves behind The vaccine is administered as a during the first week, leading to activated macrophages ready to coarse spray with onset of immunity problems throughout the life of a respond to pathogenic E.coli strains. 14 days afterwards and duration of flock including inferior performance, immunity for up to 12 weeks. It can S lack of uniformity and increased “Poulvac E. coli provides broad cross be used from day-old up to six mortality. protection against the key serotypes weeks before the onset of lay, and W

of E. coli infecting chickens,” says Dr has a nil day withdrawal period. E

The vaccine was developed from Stuart Andrews, poultry technical N

OCTOBER 2012 FARMINGUK 35 Field trials have demonstrated its treatment – 0.54 treatment days protect 3000 hens from mortality, success in protecting against many compared with 1.97 for the controls. resulting in some 900,000 extra different heterologous serotypes on eggs. USA broiler farms with a history of E. “The commercial experience in coli problems, showing that Morocco showed clearly the In the USA where Poulvac E coli has identifying a strain’s serotype is not reduction in lesions attributable to been available for six years field critical to its effectiveness. E.coli for vaccinated broilers when experience has shown the compared with unvaccinated considerable benefits. In the Field experience in Morocco was controls, along with improved Midwest where average layer obtained from 112,000 broilers on performance and health” says Dr mortality at 50 weeks of age was 15 farms vaccinated with Poulvac E. Andrews. “It also proved the safety 2.31 per cent, this was reduced to coli in the hatchery or on the first of the vaccine in line with European 1.51 per cent with three doses of day on the farm, with another regulatory requirements with no the vaccine*. In Eastern USA flock 112,000 birds kept on the same sites demonstrable difference in either mortality compared with five as unvaccinated controls. mortality or performance of the previous flocks was reduced from birds during the first two weeks of over three per cent to one per cent. The vaccinated birds performed life.” better in all parameters A field trial in the USA with more investigated. Mortality was 7.7 per In another study in the USA the than 300,000 broiler breeders cent against 8.8 for the control vaccine was given to commercial vaccination before lay reduced birds, and incidence of colibacillosis layers at one day of age and again at mortality from 2.8 to 1.9 per cent — 1.7 per cent against 3.5. Daily 12 weeks with an E. coli challenge at with only two out of 28 flocks weight gain was up from 59 to 61.3 23 weeks. This showed a 13 per cent needing antibiotic treatment grams, while feed conversion reduction in mortality compared compared with 13 of the 28 improved from 2.20 to 2.16. with the unvaccinated control birds. unvaccinated flocks.

Significantly, too, the vaccinated In a flock of 75,000 layers such a On a broiler field trial in Georgia flocks needed less antibiotic lowering of mortality could help over four million birds were vaccinated with Poulvac E. coli at Impact of E.coli disease of these strains are pathogenic for hatch. The vaccinated birds had a poultry only and are responsible for better feed conversion (1.79 against The majority of commercially the most common infectious 1.84 for the controls) and with produced poultry are known to have bacterial disease of farmed poultry. condemnations at the processing some E.coli with some strains plant down from 1.22 to 0.73 per inherently more pathogenic than Avian pathogenic E. coli act cent the result was a lower others, and when mortality occurs principally as bacterial production cost of 0.51¢ per lb. the bacteria is often implicated. ‘opportunists’ that affect both Most strains are non-pathogenic broiler and layer parent flocks and In another broiler trial covering and reside within the intestinal tract commercial broilers often following more than two million birds in as commensals, known as avian immunosuppressive diseases such Arkansas livability was improved faecal E.coli. as infectious bursal disease, chicken from 95.20 to 95.77 per cent and anaemia and Marek’s disease and feed conversion improved from 1.95 Andrew Walker, poultry specialist at primary upper respiratory disease to 1.90, gaining 0.45¢ per lb. Slate Hall Veterinary Practice, such as infectious bronchitis, reports that E.coli is the most infectious laryngotracheitis or It is important to note that in these common bacteria isolated from post mycoplasmosis. studies carried out in the USA more mortem submissions through their than one dose of the vaccine was laboratory at Willingham, The most common conditions often administered. A single Cambridge. include septicaemia, peritonitis and vaccination is licensed in the salpingitis in broiler breeders and Summary of Product Characteristics Those strains causing disease, layers; airsacculitis and septicaemia however, where clinical disease known as avian pathogenic E.coli complex in commercial broilers; requires and at the discretion of a (APEC), have developed adaptations cellulitis or infectious process veterinary surgeon, the vaccination enabling them to live outside the resulting in lesions that downgrade S

schedule may be re-started as there intestinal tract, leading to both broilers at the processing plant, and W is no contra-indication on the SPC. localised and systemic swollen head syndrome in broilers E

manifestations of the disease. Most and occasionally breeders. N

OCTOBER 2012 FARMINGUK 37 CAN RURAL HOMES AND BUSINESSES CREATE THEIR OWN ENERGY SECURITY AND PRICE STABILITY?

This summer has seen many household energy bills have soared So In addition to generating cash important developments in by 91% in the last half a dozen years. money, the turbine provides energy renewables. The Feed in Tariff (FiT) Looking forward, forecasters such as security and a hedge against those has been revised across the all the Deutche Bank, see an average dual- ever increasing energy bills which technologies, including small and fuel bill in the UK rising by 30 per becomes more valuable every year. medium wind and the solar PV cent to 50 per cent in the next four Many people do not want to want to market has seen hotly contested years. But frankly it’s not rocket take on the very substantial costs of reductions for the last year or so. science to work out rocketing rises in say, a medium wind turbine. A small More recently the UK government energy costs... we just need to look wind turbine bringing a 21p FiT rate unveiled proposals this month to at our own bills growing like topsy! and the 50% rise in export prices, further cut subsidies for large-scale coupled with savings from increased solar projects from April 1 2013, In the area of farm scale wind, energy costs, brings the potential to under the Renewables Obligation particularly in the UK, where there is achieve ROIs which can compete (RO). a little more wind than sun, this can with pretty much any similar sized work to Small Wind Turbine investment as well as contributing So, ordinary “farm scale” investors owners’ advantage. They can play to a more self sufficient way of life. in renewables are asking: Is it still the “three card trick”: “worth the candle”. Well, for large • One - they receive still At Gaia-Wind, we are finding more and medium wind turbines the sums substantial, index linked, FiT and more of our turbine owners are involved are wildly are different but payments of 21p per unit on all maximising the benefits of for those who want a small wind energy generated generating their own energy. turbine the answer is definitely: Yes! • Two – they can use that energy Graham Taylor designed his Eco to knock down, or even cut out House in Lanarkshire (see photo) One thing we can at least be certain entirely, charges from utilities, or incorporating a Gaia-Wind 133 11 about is that energy prices will gas and diesel providers; and kW turbine as the principal power continue to rise. Uswitch, the price • Three – they can sell what’s left source. Other innovations include a comparison company, says that over to the grid. very high standard of insulation, a “ v a T p a 1 o g w a T q T e t i M r k • • • • A i f b s c t s i

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d t t d k i r e t e n s o r l r e o K y d s . 3 9 NEWS spray one step ahead of E. coli

Help stop disease before it stops you. Poulvac E. coli is the only commercially available modifi ed live vaccine that helps prevent disease caused by E. coli in chickens. Help your birds before they need it with Poulvac E. coli.

Integrated solutions for healthy poultry production

For further information please contact your veterinary surgeon or Pfi zer Animal Health, Walton Oaks, Tadworth, Surrey, KT20 7NS. Poulvac E.coli contains Live aroA gene deleted Escherichia coli, type 078, strain EC34195 Use medicines responsibly (www.noah.co.uk/responsible). POM-V

AH916/12 NEW ERA VACCINE TO PROTECT AGAINST COSTLY POULTRY DISEASE

An innovation in protecting The vaccine was developed from vaccine proven to meet the chickens against E.coli bacteria has research beginning in the 1990s at European regulatory requirements been achieved with the launch of the Government’s veterinary for efficacy and safety.” the first modified live vaccine by laboratories at Weybridge (now

Pfizer Animal Health. AHVLA) in the UK, employing The vaccine is administered as a E

genome technology to produce an coarse spray with onset of immunity R

The Poulvac® E.coli vaccine, which avirulent strain of E.coli that induces 14 days afterwards and duration of U can be used from one day of age, is protective immunity to the immunity for up to 12 weeks. It can T set to bring major benefits in pathogenic strains of the bacteria. be used from day-old up to six A safeguarding the health of pullets weeks before the onset of lay, and E F for egg laying as well as broilers and The vaccine is completely non- has a nil day withdrawal period.

breeding stock. pathogenic, and does not persist in G

the bird or the environment for any N E.coli is a costly, widespread problem significant period of time. I S for the UK poultry industry. It is one I of the most significant bacterial “Poulvac E. coli provides broad cross T pathogens found in chicks during protection against the key serotypes R the first week, leading to problems of E. coli infecting chickens,” says E throughout the life of a flock including James Porritt, poultry manager of V inferior performance, lack of Pfizer in the UK and Ireland. “It is D uniformity and increased mortality. the only modified live, nonreactive A

OCTOBER 2012 FARMINGUK 41
   
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2 0 1 2 F A R M I N G U K 4 3 NEWS Mexican avian flu 'nightmare' as 25m birds lost

Two leaders of the Mexican egg of all the country's eggs are producers decided to kill the birds. industry have spoken of their produced. For Mexico, it quickly 75 per cent of the birds that were "nightmare" after an estimated 25 became a crisis. The country has the lost were sacrificed. Only 25 per million laying birds were lost in an highest consumption of eggs of cent of the birds that were lost were outbreak of avian influenza. anywhere in the world and is one of killed by the virus. The decision that the world's major egg producers - the producers took at the time was Cesar de Anda (pictured) and Sergio turning out 2.5 million tonnes of to kill the birds faster than the virus. Chavez told delegates at the London eggs every year. Jorge Rueda That was a very tough decision. conference of the International Egg explained how an action plan was Meetings and meetings and Commission (IEC) how the virus had quickly put in place to seal off meetings and meetings, two times a devastated egg units in Jalisco - the potentially affected areas and prevent day, three times a day in the local state where most of Mexico's eggs the virus spreading. Within 24 hours association to take decisions on how are produced. "It was a very scientists had established that the to face the problem and how to kill aggressive virus," said Cesar. "In a cause of the infection was the H7 the birds prior to the virus." matter of days an infected farm was highly pathogenic avian influenza. gone. It was a nightmare. I have His colleague Sergio Chavez told IEC been in the egg business all my life Cesar de Anda praised local delegates that there were 80 million and it is the first time I have producers for their "very birds in the state of Jalisco. Some 60 experienced anything like this. One responsible" decision to cull laying million of them were in the affected day I just broke down in tears. It was birds to try to eradicate the virus, zone. Cesar de Anda said that, unbelievable." even though the producers had still unofficially, 25 million birds were not managed to secure any final lost. The financial loss could be as Conference delegates had earlier agreement on compensation from high as 650 American dollars, said heard from Jorge Rueda of the the Government. "Even without Cesar, who said that the outbreak Mexican Ministry of Agriculture. He support from the Government, and consequent loss of so many explained how the virus struck on because we still don't know that the layers had resulted in a shortage of June 18 in Jalisco, where 55 per cent Government will help us, the local eggs. "It was called a national emergency because of the shortage compensation for the losses central bank as a precaution against of eggs," said Cesar, who said that in producers had suffered. He said the future outbreaks, said Jorge Rueda. a country of 150 million people, results of those discussions were many of them short of money, eggs awaited, although one good thing to He said that as well as maintaining were a particularly important part of come out of the crisis was the the vaccine bank, Mexican the diet. realisation of just how important the authorities were also improving egg industry was to Mexico. "Egg defences against future outbreaks He said that Mexico had sought to protein is one of the most important by strengthening movement import eggs from elsewhere, parts of the diet. We even had the controls, increasing bio security, although they were not easy to president talking about it," said improving epidemiology and obtain and prices had gone up and Cesar. introducing better surveillance. He up. However, he publicly thanked said that the recent outbreak was colleagues in the United States for The infection, itself, was finally thought to have been caused by an helping to provide supplies to fill brought under control through the infected wild duck. Monitoring was some of the gaps on the Mexican development of a vaccine and the still being carried out, but the egg market. By January next year start of a mass vaccination outbreak was now believed to be domestic production should be programme. Scientists managed to under control and not a single case much higher again, he said, and it develop the vaccine from a wild had been found outside the state of was hoped that by April or May next duck in which the virus had been Jalisco, he said. year production would be back to discovered in 2009. In Mexico a normal levels. system operates in which members The vaccination programme was of the public are encouraged to due to end in November or As for the Mexican egg producers, hand in dead wild birds they find for December this year, although the he said that industry leaders were examination. As a result of this, date could well be brought forward S

still in discussion with the scientists produced 139 million to October. The last vaccinated W

Government of Mexico in an vaccines. Some 53 million unused bird would be eliminated by the E

attempt to formulate some kind of doses were now being held in a end of 2013, he said. N

OCTOBER 2012 FARMINGUK 45

particularly when turning at the headlands. In addition, everything on the sprayer is made by John Deere, which makes things a lot more straightforward when it comes to parts and service, and we can call on product specialists for advice or assistance at any time.

“I like the technology on John Deere sprayers too, the ‘i’ package JOHN DEERE is very useful – once it’s been set up correctly, you can rely on the SELLS 1000TH SPRAYER sprayer to do exactly what you programme it to do, to a high degree of accuracy. You can be John Deere has sold its 1000th and two tracked models equipped confident it won’t spray over sprayer in the UK and Ireland, to with John Deere’s AutoTrac boundaries, for example, and it Hertfordshire arable farmer Jimmy automatic steering system, an 8400T will always apply the right amount Hunter. A full-specification 5430i and a new 8345RT. of chemical with the right amount self-propelled machine supplied by of water. local dealer J E Buckle Engineers of The sprayer features John Deere’s Maulden in Bedfordshire, who automated i-Solutions spraying “The FieldDoc automatic became part of the Tuckwell Group package, which includes BoomTrac documentation system linked to in March this year, was handed boom height control, Sprayer Pro Farmade’s Gatekeeper software also over to the Hunter family at the section control, the Solution means I can aim for a completely dealership this summer. Command rinsing and dilution paperless office system, which will system, FieldDoc documentation make all the necessary record Based at Pursley Farm in Shenley, and AutoTrac automatic steering. keeping much more efficient.” Hertfordshire, J S Hunter & Sons Ltd is a family run arable enterprise “With an increasing acreage The farm has been using John growing 3000ac of combinable crops across the various farms we own Deere’s AMS GreenStar precision across 12 farm units, including and manage, we have more to farming technology for about six wheat, oats, oilseed rape and beans. harvest these days and we are years, so the sprayer’s AutoTrac The Hunters have been customers of particularly busy through the system will be making its own John Deere and Buckles for more summer and autumn,” says Jimmy contribution to less driver fatigue than 20 years, since they bought Hunter, who farms with his father and increased accuracy in the field.

their first tractor, a 3650, at the Stewart, brother John and their “You can work for longer, and Y

Hertfordshire Show. children Hamish, Eveey, Hugh, concentrate on other things in the R

Sion and Charles. cab without worrying about veering E

The new 5430i, their third self- off line all the time,” Jimmy adds. N propelled machine but their first “Replacing the trailed sprayer with a “The combination of the latest I from John Deere, replaces an 840i self-propelled model frees up a technology, a knowledgeable and H trailed model. It joins a tractor fleet tractor for harvest, and the extra experienced dealership and fast C that includes a 6506 (used for clearance also means we can reduce parts and service back-up made the A hedgecutting), a 6920S, two 6930s damage in our break crops, whole package very attractive.” M

OCTOBER 2012 FARMINGUK 47 ALTERNATIVE REARING SYSTEMS

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Take another step forward with Big Dutchman…

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NATURA-Rearing The modern Multi Tier system for rearing of healthy pullets

The two tier Natura Rearing system offers you the best possible pre-requisites for a smooth transition of the pullets from the rearing to the laying aviary. Uniform and healthy pullets and a good start into the laying phase are the main goal that we want to help you achieve.

Pullets which will later on be moved into aviaries should be reared in similar systems. »Intensive training«, being the key phrase, from the first day onwards allows the birds to easily adapt to the laying aviary later on. The lower and the central level of the NATURA aviary are equipped with feeding and drinker lines. The upper level is designed as a resting area, as the pullets are naturally drawn to use the highest place at night. This behaviour is encouraged by a sunset simulation, which means the lights in the lower and central level are switched off sooner than the lights in the top level.

Big Dutchman offers you a rearing system ideally customised to your individual requirements.

Newquip Limited · NQ House · Conygarth Way Leeming Bar Business Park · Leeming Bar · Northallerton · North Yorkshire DL7 9EE Tel. 01677 428600 · [email protected] AIR POLLUTION 'IS A FORGOTTEN PUBLIC HEALTH CRISIS'

Poor air quality has been found to under new powers introduced by Healthy Air campaign can make a cause 29,000 premature deaths in the Localism Act. difference. A more aware public the UK each year. Meanwhile the would create the drive needed and Government is failing to recognise Next year responsibility for public the impetus for politicians to the impact of its policies on air health will transfer to local introduce the necessary measures. quality and is still failing to meet authorities, with each setting up its European targets for safe air own Health and Wellbeing Board. “Ten years ago we thought most of pollution limits across many parts Local authorities would potentially our local air quality problems would of the country. have infraction fines to pay at the be solved by now. Today we know same time as suffering from budget better" said CIWEM's Executive The Healthy Air Campaign is a cuts. Director, Nick Reeves. coalition of NGOs tackling the public health crisis caused by air There are concerns that without "Road transport remains the main pollution. The aim is to encourage raising the profile of air quality, it culprit and we need political behaviour that helps cut air could easily become lost beneath commitment to the issue to pollution and exposure to it and the plethora of problems local improve. The government should persuade the government to take authorities will also need to tackle, not forget that a public health crisis action so the UK complies fully with such as teenage pregnancy, obesity has significant impacts on the international air quality law. and fuel poverty; the effects of economy. I am hopeful that the which are more obvious. Healthy Air Campaign along with The impacts of air pollution on CIWEM’s support can bring the issue public health have long been Paradoxically measures for to the attention of the public, the known, yet the Government has improving air quality are often media, and politicians. The failed to introduce measures to unpopular with the electorate. Government needs to put the health meet European targets for air Transport causes the most exposure of the nation first and take quality. Instead multi-million pound to harmful air pollutants, and air responsibility for educating the infraction fines from the EU for quality targets would never be met public about the health risks from failing these targets could be without a significant shift in poor air quality, and about how they passed on to Local Authorities transport policy. This is where the could limit their exposure to it.”