“Meat Industry Won’t Fight Antibiotics Rule” – Wall Street Journal, 12 December 2013

Last week, the FDA introduced new policy that aims to curtail growth promotion antibiotics used on livestock. The use of these antibiotics on animals has been linked to the generation of antibiotic-resistant bacteria in humans.

While farmers and the meat industry support the FDA, neither think the new regulations will have an impact on the livestock industry. The FDA’s regulations deem it illegal to use antibiotics for growth promotion purposes, only allowing for antibiotic use when medically necessary. While the FDA now requires veterinarians to supervise antibiotic use on livestock, farmers will still be able to use antibiotics for preventative measures, especially in feed and water.

According to the FDA, almost 30 million pounds of antibiotics were used on livestock in 2011, a 2% increase from 2010. In 2011, around 7.3 million pounds of antibiotics were used to medicate people.

The FDA’s new policy is not mandatory for drug companies, yet animal drug companies like Zoetis and Elanco have complied. The guidelines request that drug companies remove any wording from their labels that implies that a drug promotes growth.

These are the steps in the right direction to protect animal and human health while enhancing public image for livestock and drug companies.

December 27, 2013

Fluid Management Systems

Copyright 2013   All rights Reserved by Fluid Management Systems, Inc.

www.fluidmanagementsystem.com     subodh@fluidmanagementsystem.com

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“Hog Prices Slide as Demand Wanes” – Wall Street Journal, 20 March 2013

Hog prices have been steadily declining for the past four months, and are currently at a low. The reasons behind the decreasing demand for pork are interesting, mostly due to economic concerns.

US consumers have opted for inexpensive meats, like chicken, instead of pork; additionally, consumers are feeling certain economic pressures, such as rising prices at the pump.

Pork exports have already dropped 15% from last January, as the big meat buyers — China, Japan, Mexico and Russia — curtail purchases. In the last few years, the US has become fairly dependent on pork exports, as China is the world’s biggest pork consumer. However, as China’s population and demand for the meat grows, the country has stocked up on plenty of domestic supplies. Japan is the US’s biggest buyer, but has been experiencing a weak economy and currency, and doesn’t have the funds for pork exports. Russia has chosen to no longer buy pork from the US, since many US pork farms give their pigs medicated feed that generates leaner meat.

As domestic and international demand for pork decreases, US farmers are faced with larger inventories of pork. People begin to buy more pork during the warmer months, but the continued cold weather has delayed the spring and summer grilling season.

It is hard to say if this trend is cyclical or the economics are changing more structurally.

Conceived, Developed and Written by Dr. Subodh Das and Tara Mahadevan

May 16, 2013

Fluid Management Systems

Copyright 2013   All rights Reserved by Fluid Management Systems, Inc.

www.fluidmanagementsystem.com     subodh@fluidmanagementsystem.com

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