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This past week we were in Ohio and Indiana. Crops looked good, could use some rain. Corn was $3.32 a bushel at local ethanol plant. We had the opportunity to visit Genesus new Paramount Nucleus farm in Southern Indiana. It’s great to see a well done start up and a dedicated production crew. Genesus Paramount is the largest registered purebred herd in the United States. The population comprises elite purebred Duroc, Landrace and Yorkshire. The Paramount Nucleus is a testimony to Genesus commitment to genetic improvement and further growth in the United States market.
Scott Alexander, Manager of the Paramount Nucleus unit and Jim Long, CEO of Genesus
While we were driving on Highway 69 just south of Indianapolis saw a huge billboard. A local pet animal clinic advertising for Veterinarians and offering to pay $185,000 a year to start. Huge Billboard, costly and must be reflection of challenge to hire Veterinarians. Pet proliferation is a U.S. reality, cost to maintain them and Veterinarians need is a factor affecting Veterinarians for the swine industry. Our industry continues to have economic challenge and we are being hit by inflationary expenses driving costs higher. Veterinarians costs are part of the inflationary spiral.
Market
Hog prices have begun seasonal decline. Last Friday 86¢ lb., at cost of production break even. Hopefully some demand from exports can keep prices from going to the low 70’s that lean hog futures indicate. We believe there will continue strong exports through the fall which should be supportive. This coming week we will be in China and will report our observations on the market. Spencer and I will be speaking at the Global Pig Genetic Summit on September 10-12. All the world’s leading swine genetic companies will be there.
Gene Editing – GMO
While we are in China we will be meeting with several large integrators. We will report China sentiment on Gene Editing – GMO after our visit.
In the U.S. the National Pork Producers Council reiterated apparent support for Gene Editing – GMO last week. NPPC CEO Bryan Humphreys wrote in a comment letter, “Gene editing offers a tremendous opportunity for the U.S. pork industry, but continued regulation under FDA and the [Food, Drug and Cosmetic] Act create extreme barriers to utilization by industry and is not in keeping with federal policy and precedence — and indeed global regulatory trends — concerning the use of biotechnology in agriculture.”
Our Observations
- We continue to ask what consumer thoughts is on purchasing Gene Edited – GMO. The only study we have seen by Iowa State University found around 60% of women in the survey said they would be unwilling to eat and purposely avoid gene-edited foods. We ask Mr. Humphreys, how does it see this would benefit U.S. pork producers? Where is NPPC study on consumer acceptance?
- We were in a meeting previously with Vice President of McDonald’s. He clearly stated “Don’t expect us to explain GMO – Gene Edited Pork”, largest restaurant chain in the world. What is McDonald’s upside to usage of GMO – Gene Edited if there is consumer resistance. Does anyone actually talk to customers only get pulled into vortex of a single self-serving multinational that has a strategy of genetic monopoly through technological control.
- NPPC Bryan Humphreys please let the industry know the packers who have agreed to market Gene Edited – GMO pork if approved, retailers, restaurants, export markets? In our opinion without knowing if there’s a market it’s dangerous for the NPPC to be an advocate for a technology that has very good potential to be pork demand killer.
- It seems strange that NPPC is against FDA ensuring Gene Editing – GMO and advocating USDA oversight. Not sure why they don’t want to make sure technology is safe.
- The comment about falling behind Global Technology we are not sure what that means. We are not aware if there is any approval anywhere to legally sell Gene Editing – GMO pork. Why does it appear NPPC is inferring we are falling behind?
- NPPC should be fighting for U.S. pork producers and not be perceived as a shrill for multinational corporation headquartered in the United Kingdom. In our opinion we need to be focusing resources on pork demand, producing better tasting nutritionist pork not on what could be a demand killing technology.
- Bryan Humphreys – NPPC where is your data – polling that shows producers, consumers, retailers, packers, restaurants, export support for your Gene Editing – GMO crusade? The only survey we have seen it’s a path to pork demand destruction.
- To producers you need to take charge – we are losing money we can’t afford a reckless strategy of further demand destruction. It’s your prerogative and right to reach out to NPPC and ask the needed questions.
