“Mysterious Pork Virus May Hike Bacon Prices” – Fox Business, 7 August 2013

In June, we reported on the outbreak of a deadly pig virus that spread to 13 states, called Porcine Epidemic Diarrhea Virus (PEDV). With no known cure, the virus is continuing to proliferate across America, causing farmers to lose thousands of piglets. The good news is that the disease isn’t transferable to humans, and isn’t lethal for older pigs. The virus is also ongoing in countries like South Korea, China and Thailand — PEDV was first discovered in China in 2010.

In order to fight this disease that has yet to be cured, farmers are taking action to prevent the disease from growing; however, the loss of so many piglets may still give way to increased pricing.

As written in our previous post, PEDV is spread through fecal matter, specifically fecal-oral contact with manure; the infection can be spread by pigs eating diseased feces, or by humans unknowingly transporting feces. Pig farmers anxious to counteract PEDV are concentrating on sanitation, requiring clean supplies, and workers to wear clean boots and overalls. They’re also taking further measures, such as biosecurity plans and cleaning transport trucks with hot-steam pressure washers between shipments.

After a piglet is infected, it only takes 24-48 hours for virus to take full effect; a piglet can become sick within five days. Symptoms include diarrhea and vomiting — PEDV is fatal due to intense dehydration. The disease can infect older pigs, but, so far, has only been deadly for piglets.

Farmers haven’t been obligated to share the number of pig deaths at their farms; deaths may be underreported. Since the end of July, the USDA only knows of 403 PEDV-positive tests, but losses may range in the hundreds of thousands. The National Pork Board is spending $800,000 to investigate PEDV, and study methods for containment and removal.

As far as the cost of the disease go, farmers are likely to take a 7-8% hit to production — a farm could suffer a loss of over 1,000 piglets every week; PEDV has the potential to cost farmers $12-16 more per piglet. While our past harvesting season was abundant — grain prices are decreasing — the disease could definitely take its toll on pork prices.

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

August 26, 2013

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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

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www.fluidmanagementsystem.com     subodh@fluidmanagementsystem.com

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“Traders Sow Bets on Higher Wheat” – Wall Street Journal, 15 January 2013

Like our previous post on rising milk prices, wheat prices, too, are on the rise; and this past summer’s drought is to blame.

Pricing on corn and soybean skyrocketed to new records after this past summer, as the drought devastated massive amounts of both crops. Due to continued low rain- and snow-fall, many traders are betting that major increases on wheat prices will, again, occur during the next wheat harvest.

Last week, the NOAA confirmed that 2012 was indeed the hottest year on record. Kansas, the largest producer of wheat, and the southern area of the US called The Great Plains, are still plagued with drought conditions; since summer, soil moisture has greatly diminished, which is a necessity for healthy wheat-crop growth. And recent weather forecasts are not raising hopes.

Wheat prices have increased by 5.1% since the USDA reported that quantities of wheat are less than expected. Traders trust that wheat prices have reached the bottom of the well; however, a continued poor harvest for the US, the largest manufacturer of wheat in the world, could further constrict supplies. A recent survey by the USDA shows that 26% of this year’s wheat crops are “poor” or “very poor”, suggesting that much cannot be reaped from these crops.

The drought has been disheartening for farmers, causing some to plant less wheat this past fall. Additionally, due to low supplies of corn, a main ingredient in animal feed, farmers are going to use more wheat in their animal feed this year. Both of these issues could very well cause a further tightening on an already dwindling wheat supply.

Russia and Australia, two main producers of wheat, have also been undergoing harsh droughts and yielding damaged crops. If record-high springtime temperatures continue, then rain will be a large necessity come March. Major wheat-producing countries are in dire need of some favorable weather this harvest season.

Nobody can control weather and drought, but we can influence factors which affect  weather and climate, especially if they are effected by human actions. It takes a long time to influence climate; therefore, we need to start now on meaningful climate change policy initiatives. It’s not about ideology, it’s about dollars, cents and wheat prices.

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

January 17, 2013

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www.fluidmanagementsystem.com     subodh@fluidmanagementsystem.com

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“Food Waste: From Farm to Fork and Landfill” – CNN, 21 December 2012

CNN recently published a chart, mapping global food waste from origination to disposal. Gleaned from this chart are the great food losses amassed by both developed and developing countries, and the improper management and conservation of energy and food sources. Though the world is eager to discuss sustainability, green culture and climate change, it seems that food waste is an often untouched topic; yet, one cannot turn a blind eye to CNN’s statistics.

According to CNN, one-third of food produced is lost or wasted globally, a total of 1.3 billion tons per year. Also according to CNN’s chart, food waste in industrialized countries — 222 million tons — is almost equal to the net food production — 230 million tons — in sub-Saharan Africa. That statistic sheds light on how the world unknowingly wastes vast amounts of food because there are no proper management systems in place. Many of these countries don’t blink twice over food losses; developed countries, like the US, take its food access for granted, while developing countries have continually diminished access.

One would think that since the US is experiencing an economic recession and increased food inflation, it would try to gain control of any food loss; however, that is surely not the case. According to the original source for CNN’s chart, 10% of the US energy budget is used to transport food from farms to households, using 50% of US land and consuming 80% of US freshwater resources. However, 40% of food in the US remains uneaten, which is over 20 pounds of food per person, per month. Americans are unnecessarily wasting $165 billion per year, just on food and water losses alone.

Although we are a world obsessed with green culture and recycling, 3% of food waste is currently recycled. Additionally, 40% of landfill content comes from food waste — uneaten food is going straight into the garbage.

As discussed in previous entries – “Milk Price Fight Boils Over” and “Time Is Running Out to Pass a Farm Bill in 2012″  — US food prices may very well skyrocket due to our country’s indecisive lawmakers. If we are able to properly manage and conserve our food supply, and increase efficiency in our food system and use of natural resources, then we might be able to save ourselves money and food, while also meeting the growing food demand.

Additionally, eating less and eating locally grown food (and thereby wasting less and lowering transportation carbon foot print) promotes a happier and healthier lifestyle, while also lowering personal and societal medical costs.

(source)

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

January 3, 2013

Fluid Management Systems

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

www.fluidmanagementsystem.com     subodh@fluidmanagementsystem.com

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