“Water, air quality fears conflict with pig farms” – CNBC, 16 February 2015

Though livestock farms have perfected mass production of meat, some of their practices are impacting the environment in devastating ways. The nitrates and bacteria from farm fertilizer and piles of manure are effecting waterways and polluting the air.

While farmers maintain that they’re doing everything they can to prevent pollution — by planting grass strips, easing off on ploughing their fields, and employing new methods that hinder runoff — environmental groups, animal rights groups, and citizens are still bringing the issue to court.

Des Moines’ water utility, for instance, must purify their water through an expensive system because of the nitrates farmers use. If consumed by children under six-years-old, those nitrates can diminish the oxygen in the children’s blood.

According to the Environmental Protection Agency, almost 68 percent of the US’s waterways, including lakes, reservoirs, ponds, and rivers, are “impaired,” which means they don’t comply with water-quality standards and contain too many toxic elements to use. Farms are the main offender, mostly because the farms are mismanaged and located in areas more harmful to waterways.

Over the years, pig farms have grown immensely. In the 1990s, almost 200,000 of the nation’s pig farms were family-run; in 2012, that number dropped to 21,600. A big motivator for this shift towards industry pig farms is Murphy-Brown LLC, which was bought by China-based WH Group. One of WH Group’s primary goals is to export pigs from the US to China because it’s less costly. Inevitably, this goal has spurred more production.

Pigs produce enormous amounts of waste, which are stored in large ponds, altered with chemicals, liquified, and then used as fertilizer. For nearby residents, the manure not only smells, but the runoff can cause health problems, such as respiratory problems, sore throat, nausea, irritability in the eyes, and high blood pressure.

While many large-scale operations manufacture meat that is affordable to the consumer, it seems it comes as a trade-off for the health and well-being of the environment and many of the consumers.

February 23, 2015

Fluid Management Systems

Copyright 2014   All rights Reserved by Fluid Management Systems, Inc.

www.fluidmanagementsystem.com     subodh@fluidmanagementsystem.com

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“Futures Prices Are Going Hog-Wild” – Wall Street Journal, 5 March 2014

Porcine Epidemic Diarrhea Virus (PEDV) strikes again, and is severely affecting pork prices. From last April to this March, the virus has been transmitted across 25 states and killed millions of young pigs. PEDV results in diarrhea and vomiting and is only deadly for young pigs—the virus isn’t harmful to human health or food safety.

The lack of pork is driving hog futures up, just in time for pork’s biggest selling season; summer. Analysts believe that traders might be putting too much significance on the virus—production hasn’t suffered any huge losses yet this year. However, in order to counterbalance any loss and make more money, pig farmers have been selling hogs at heavier weights, which could also help bolster our pork provisions. According to federal data, this year’s supply is on par with, or perhaps marginally higher, than last year’s weekly figures.

This February, the US Department of Agriculture reported it’s prediction for total US pork production as 23.4 billion pounds, 160 million pounds less than US production in 2013, indicating the virus as the main reason for the loss. Since farms aren’t required to inform federal regulators about total deaths, the magnitude of PEDV is unknown.

At the end of 2013, 1,998 cases had been reported; by February 16, around 3,856 cases had been reported. Since January, three states were also added to the list of those affected, totaling in 25. The USDA predicts that US pork prices will jump 2-3% in 2014, a 0.9% increase from 2013.

See also:
Outbreak of deadly piglet virus spreads to 13 states
Mysterious Pork Virus May Hike Bacon Prices

May 12, 2014

Fluid Management Systems

Copyright 2014   All rights Reserved by Fluid Management Systems, Inc.

www.fluidmanagementsystem.com     subodh@fluidmanagementsystem.com

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“Livestock Market Adrift Without USDA Data” – Wall Street Journal, 7 October 2013

With the lapse of government funding on October 1, the USDA had to shut its doors, forcing the department to discontinue updating prices for pigs in the cash market, which has caused an upheaval in the livestock market.

Cash and futures markets use the USDA quotes as a reference point for trading. A lack of pricing means that the US’s largest meat manufacturers, Tyson Foods and Cargill — as well as the farmers and ranchers who sell to these companies — have no way of knowing how much they should be paying for pigs. Both companies have been looking to Urner Barry, New Jersey-based market-research firm, for similar information.

Tyson and Cargill have presented farmers and ranchers with two options: either directly determine a price with the company, or use Urner Barry’s formula to calculate a price. But due to the USDA’s interrupted data stream, many traders are fearful of trading, causing trading volumes to decrease; after the shutdown, trading volumes in lean-hog futures dropped 40%.

Sixteen days in to the government shutdown, Obama signed a bill into law that ended the it. However, it will take the USDA, meatpackers, and farmers and ranchers a period of time to recover from the dearth of information.

October 17, 2013

Fluid Management Systems

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

www.fluidmanagementsystem.com     subodh@fluidmanagementsystem.com

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