Capital Update – For the Week Ending Sept. 27, 2024

NEWS 09/27/24

Pork producers, veterinarians get big win on antimicrobial use | Congress approves another short-term funding bill | NPPC's Hord, Pittman, and Curliss speak at Leman Conference | Ag groups again ask White House to prevent port shutdown | NPPC supports lawmakers' ask to EPA to support rendering of agricultural waste | USDA's latest Hogs and Pigs Report indicates winter market hog availability | Capital Update on modified schedule as Congress takes break

Pork Producers, Veterinarians Get Big Win on Antimicrobial Use

What happened: U.S. pork producers and swine veterinarians scored a huge victory at the United Nations (UN) General Assembly, which rejected proposed on-farm target reductions in antimicrobial use.

Without NPPC's leadership and science-based voice, the UN could have implemented a 30% global on-farm reduction in antimicrobial use by 2030, as well as limits on the use of certain antibiotics in animal agriculture.

This year alone, NPPC Director of Food Policy Dr. Ashley Johnson has advocated at the UN and the World Antimicrobial Resistance Congress for the freedom of pork producers and veterinarians to establish and maintain herd health through a valid Veterinarian-Client-Patient Relationship (VCPR).

To learn more about antimicrobial use and VCPRs, click here.

NPPC's take: NPPC supports increased antimicrobial stewardship programs that promote animal and human health, decrease antimicrobial resistance, and protect the food supply. NPPC has cautioned against relying on antibiotic use data to establish causality for antimicrobial resistance in human illnesses.

Why it matters: Antimicrobial products are used to maintain animal health and well-being and to produce safe food. A mandated reduction in antimicrobial use would compromise veterinarians' ability to provide the best possible care for pigs.

Congress Approves Another Short-Term Funding Bill

What happened: Senate and House lawmakers approved another short-term funding bill, ensuring the government's continued operation through Dec. 20.

President Biden on Thursday signed the continuing resolution (CR) into law, allocating funds for select federal programs at fiscal year 2024 levels, including Livestock Mandatory Reporting.

Why it matters: NPPC supports continued funding for agricultural programs that benefit pork producers, such as the Livestock Mandatory Reporting, which since 2001 has offered transparent information on price trends for cattle, pigs, and sheep, as well as various purchase and sales methods. The U.S. Department of Agriculture publishes seven daily and two weekly reports for swine and four daily and 12 weekly reports on wholesale pork.

NPPC's Hord, Pittman, and Curliss Speak at Leman Conference

What happened: NPPC board members and Ohio pork producer Pat Hord and Virginia swine veterinarian Dr. Jeremy Pittman, along with NPPC vice president of strategic engagement Andy Curliss presented at the 50^th anniversary of the Allen D. Leman Swine Conference. Hosted by the University of Minnesota College of Veterinary Medicine and held in St. Paul, the conference highlights science-driven solutions to the complex challenges facing the swine industry.

Hord opened the conference with a keynote presentation on adapting to change and building a sustainable future, Dr. Pittman chaired a breakout session on swine Mycoplasmas research, and Curliss talked about the importance of research to the continued success of the U.S. pork industry.

Among other topics discussed were animal influenza viruses, Porcine Reproductive and Respiratory Syndrome, the economics of the pork industry over the past 50 years, and the health impact of agricultural facilities.

Why it matters: The Leman Conference is an annual educational event for the global swine industry. Each year hundreds of participants from more than 20 countries, including swine veterinarians and other professionals working in swine production and animal health management, attend the three-day conference. NPPC is one of the event sponsors.

Hord gives the keynote presentation at the 50^th annual Leman Swine Conference.

Ag Groups Again Ask White House to Prevent Port Shutdown

What happened: For the third time since June, NPPC has called on President Biden to take action before a threatened Oct. 1 strike or lockout at East Coast and Gulf of Mexico ports, an action that would damage U.S. agriculture and the broader American economy. Dockworkers at 36 ports and the port facilities owners have struggled to hammer out a new labor agreement. The current contract between the International Longshoremen's Association, which represents dockworkers, and the U.S. Maritime Alliance, which represents port terminal operators, expires Sept. 30.

In this week's letter, a coalition of 56 agricultural organizations cautioned that if port operations shut down, "the impact on the ag supply chain will quickly reverberate throughout agriculture and not only slow or shutdown operations, but also potentially lower farmgate prices."

NPPC's take: NPPC wants to avoid disruptions at the ports on the East Coast and Gulf of Mexico like those that occurred in late 2014 into early 2015 at West Coast ports. Work slowdowns at shipping terminals from San Diego to Seattle cost the U.S. meat industry millions of dollars in lost export sales.

Why it matters: The U.S. pork industry depends on exports, which annually account for about a quarter of all sales and contribute significantly to every producer's bottom line. About 60% of U.S. pork exports are transported by ocean freight, with nearly 45% being shipped from East Coast and Gulf ports. Chilled pork, for example, is sent out of those ports to markets in the Caribbean and Central and South America.

Meat company estimates indicate that for each day a port is closed, it will take a week to recover; for every month, it will take six months for products to clear for export.

NPPC Supports Lawmakers' Ask of EPA to Back Agricultural Waste Rendering

What happened: Reps. Nick Langworth (R-NY) and Jim Costa (D-CA), along with 26 of their House colleagues, asked the U.S. Environmental Protection Agency (EPA) to revise its recent ranking of waste management technologies to again include rendering of agricultural waste. A host of business and agricultural organizations, including NPPC, support the move.

In June, EPA, the U.S. Department of Agriculture, and the U.S. Food and Drug Administration released the "National Strategy for Reducing Food Loss and Waste and Recycling Organics," with a goal to prevent the loss and waste of food and increase recycling of food and other organic materials. While a report on the strategy mentions rendering, it was removed from the accompanying infographic - titled the "Wasted Food Scale" - that ranks food waste management methods.

In the letter to EPA Administrator Michael Regan, the 28 lawmakers said that excluding rendering, and the energy and industrial uses it fosters, from the Wasted Food Scale "will significantly impair food and organic waste reduction efforts by confusing future local, state, and federal action."

"Since the 1800s," the lawmakers pointed out, "rendering has handled the lion's share of recycled agricultural wastes."

Why it matters: Rendering's finished products include animal feeds, as well as fats, oils, and greases that serve as valuable feedstocks for the advanced biofuels industry. Those feedstocks also replace virgin oils in the production of many industrial products, including lubricants, paints, and varnishes and can be used in anaerobic digesters to produce biogas. Additionally, the rendering of contaminated animals kills bacteria, protozoa, parasitic organisms, and viruses, such as the highly pathogenic and low pathogenic avian influenza viruses.

USDA's Latest Hogs and Pigs Report Indicates Winter Market Hog Availability

What happened: The U.S. Department of Agriculture Thursday issued its quarterly Hogs and Pigs Report, showing a slightly larger swine herd year-over-year and a 2.2% reduction in the sow herd.

The number of sows farrowing from June to August was down 1.7% from the same period in 2023, while the number of pigs saved per litter was 11.72, up less than 1% from 2023, setting another new record for the quarter. As a result, the June-August pig crop was estimated to be down 0.8% from last year, the largest year-over-year pig crop decline since early 2022. The June-August pig crop numbers help provide some expectations for market hog availability this winter.

The September 1 market hog inventory was estimated to be up 0.7% compared with 2023, which was consistent with analysts' pre-report estimates. While the overall market hog number was in line with expectations, the number of market hogs weighing less than 119 pounds was 1.4% lower than last year, falling outside of the range of pre-report estimates, while the number of hogs weighing 120 pounds or more was reported to be up 4.1%, which was higher than analysts expected. The report also showed that producers intend to farrow 0.1% fewer sows from September to November and 0.2% more sows from December to February.

Why it matters: The quarterly Hogs and Pigs Report serves as the basis for many USDA production and price forecasts, and the information can help producers better understand the economic conditions of the U.S. pork industry.

Capital Update on Modified Schedule as Congress Takes Break

Capital Update will be issued on a modified schedule during the Congressional recess, as NPPC continues work on important pork industry issues. It will resume regular publication on Friday, Nov. 15.

Tags

Animal Well-being | Antibiotics | Capital Update | Capital Update | Commerce | East Coast ports | Environment & Energy | News