加裕总裁兼CEO Jim Long
Jim Long, President-CEO Genesus Inc.
February 27, 2017
U.S.D.A Pork in Storage Report
Record Low Belly Inventory
Last week, the USDA reported the inventory of pork bellies at the end of January at 14,014 (1,000 pounds), the lowest amount recorded since records began in 1957. This is down significantly from a year ago, when it was 60,698 (1,000 pounds). Record high belly prices is not an inducement to store belly inventory. Going forward, record low bellies in inventory will support cash belly prices and significantly help the pork cut-out value. Taste and Flavour, which pork bellies bring to the consumer, are a significant signal that our industry must be aware of as we consider the type of pork we need to make available.
Last Friday, USDA pork cut-out wholesale price bellies were at $2.23/lb, hams $0.546/lb. Bellies four times the price of ham. Our industry has focused too much on lean, which has led to insufficient marbling, lighter pork, and lower water holding capacity. Doesn’t take an ag-economist to figure out that better tasting ham could lead to higher consumer demand and higher hog prices. Consumers vote with their money on what they will pay more for. Bellies are having an extraordinary run on demand.
PIC Buys Hermitage
As you all know, we are in the swine genetics business, so we pay more attention to what is going on in this sector than most people would or care. But since this is our commentary, we get to write what we want.
Anyways, this past week Genus-PIC made an arrangement with Hermitage, based in Ireland. It appears that if we decipher their press release, PIC has purchased the intellectual and marketing rights of Hermitage Genetics. It appears to us they did not purchase fixed assets, ie farms or the swine inventory. It looks like going forward Hermitage will give up its selling rights outside of Ireland, Great Britain, and Italy.
Hermitage was not a major player, this deal is dwarfed by Genus-PIC’s past purchase of Genetiporc and NPD. Genus-PIC is relentless in their quest for market growth. They continue to buy up competitors. In the Hermitage case, it appears to us Hermitage will be a de facto selling agent of PIC in three countries. All countries in which PIC has had limited market presence in recent years.
Genus-PIC对于市场份额的追求很大程度上得益于强大的财政表现，而这与猪基因公司Topigs-Norsvin形成了对比，后者去年财政年度内的财政损失为691万美元。Genus-PIC’s quest for market share has been greatly aided by strong financial results. This is in contrast with swine genetic company Topigs-Norsvin, which had a financial loss of $6.91 million US dollars in their last fiscal reporting year.
Indeed, when we received these financial results, we asked Topigs-Norsvin to confirm them. We were surprised their results were so bad, as they tout themselves as a major global player. We don’t want to be accused of “Fake” news. The financial results were confirmed by one of their executives.
有趣的是，所公布的最新财政年度数据显示Topigs-Norsvin损失了691万美元，而Genus-PIC的税前利润为4970万英镑。相同的产业，不同的结果，不同的领导地位。当Topigs与Norsvin 达成合作时，我们从一开始便猜想着财政强大的Norsvin能留在这段关系中多长时间。事件会证明一切，但691万美元的损失并不能贸易模型进展良好的一种表现。在我们看来，Topigs 需要Norsvin，但 Norsvin并不需要Topigs。在一个赚钱的行业内取得691万美元的损失并不是一种好迹象。
It is interesting that in the latest fiscal year published, Topigs-Norsvin lost $6.91 million US dollars while Genus-PIC had a profit before tax of 49.7 million British pounds. Same industry, different results, different leadership. We have wondered from the beginning, when the Topigs co-op joined up with the Norsvin co-op, how long the financially strong Norsvin would stay in this relationship. Time will tell but a loss of $6.91 million US dollars is not a picture of a business model going well. In our opinion, Topigs needs Norsvin, Norsvin doesn’t need Topigs. A $6.91 million US dollar loss in an industry that is making money is not a good sign.
“你可与其他机构合作，但两个醉汉并不能合成为一个明理的人。”——Gary Hamel 和 C.K. Prahalad《为未来而竞争》（1996）
“You might merge with another organisation, but two drunks don’t make a sensible person.” – Gary Hamel and C.K. Prahalad, Competing for the Future (1996)
“When it comes to mergers, hope triumphs over experience.” –Irwin Stelzer, economist
Rosedale Team Launches Baker Colony
Baker殖民地是来自罗斯代尔殖民地的一个新项目，位于阿尔巴塔省Etzikom。殖民地位于Foremost东南部，是一块农业非常发达的地区。Baker 殖民地管理团队的成员有John Waldner、George Waldner和Joseph Hofer。猪部门将由Ed Hofer和Ken Waldner管理。
Baker Colony is the new project from Rosedale Colony, based in Etzikom, Alberta. The colony is situated southeast of Foremost, a thriving agricultural area. The management team of Baker Colony consists of John Waldner, George Waldner, and Joseph Hofer. The swine unit will be managed by Ed Hofer and Ken Waldner.
殖民地内种植着适合在该地区种植的普通大颗粒粮食，以及一些可轮作的特色作物。Baker也设置了一个新的露天生产流水作业区。新的猪部门占地122,000平方英尺，蓄养着600头母猪和小猪。参与Baker殖民地建设的公司有Big Dutchman、Mandel Enviro-Metal Solutions、Maverick Concrete以及Nor-Ag。殖民地在二月建设了一座大楼，约800可进入该大楼参观最新技术和设计，包括来自伯塔省、萨斯喀彻温省和蒙大拿的游客。
The colony grows regular large grains that suit the area, as well as specialty crops to maintain a good rotation. Baker also has a new 30,000 layer free run operation in production. The new swine unit is a 122,000 square feet facility that will house 600 sow farrow to finish. Companies involved in the construction of Baker Colony include Big Dutchman, Mandel Enviro-Metal Solutions, Maverick Concrete, and Nor-Ag. The colony held an open house in February, which approximately 800 people attended to see the latest technologies and designs, including visitors from Alberta, Saskatchewan, and Montana.
Baker Colony’s barn will be filled with Genesus breeding stock in early March. When asked why Genesus was chosen for this project, management replied that their past relationship with Genesus has been second to none. On their other farm of Rosedale, Genesus animals have proven over time to be the most reliable, hard-working, easy to manage, and hardy animal, with PSY over 31 . In addition, the finished carcass from a Genesus Duroc is of excellent quality, which is required when shipping to Maple Leaf.
Genesus would like to congratulate the entire Baker Colony team on the successful launch of their new project.