Amino report – September 2021

More pressure on amino acid supplies

In the August report, a couple of reasons that could potentially influence amino acid supplies and prices in the near future were flagged. Unfortunately, the situation has worsened since then.

In other news

Russia to introduce new antibiotics regulations

Russia is set to ban the use of antibiotics in feed by September 2022. A new legislative proposal, supported by the government, will prohibit farmers from adding antibiotics to feed, as well as the sale of feed containing antibiotic growth promoters. While the aim of bill is to be applauded, the time allotted for the industry to prepare has been criticised by some players. However, many other countries have successfully implemented similar bans, and much can be learned from their experience. Russia’s most important trading partners and largest neighbours, Europe and China, have already moved away from in-feed antibiotics.

Namibia FMD

Namibia identified a new strain of foot-and-mouth disease (FMD) after an outbreak close to the Zambian border. It was subsequently found that the new strain was introduced from Zambia through the illegal crossing of livestock. Apparently vaccinated herds showed little resistance to the new strain, and infection rates remain high, prompting concerns about managing the spread of the new strain, and the impact on Namibia’s lucrative beef exports.

Brazilian mad cow disease

Early in September, a case of atypical bovine spongiform encephalopathy, or mad cow disease, was detected in a 17-year-old cow in Brazil. After a second case was identified, all beef exports to China, Russia, and Saudi Arabia were suspended until further notice. More than half of Brazil’s beef exports are destined for China, which makes up about 40% of all Chinese beef imports. Brazilian farmers and Chinese importers are hoping that the ban will be lifted soon given the increasing demand for beef in China, and the dependence on Brazilian beef. However, if the ban remains in place, demand for pork and poultry will likely increase in coming months.

Price Graphs

Estimated replacement prices, CFR Durban

Protein supplement

courtesy of JVD Commodities (Pty) Ltd

Both soybean meal and sunflower oilcake have shown some strength in the last month. Soybean meal has pushed above ZAR 8 000 per tonne again on the back of higher international prices, due to concerns about global stocks and the weaker rand. Argentine and Brazilian farmers are holding on to soybeans in the hope of higher prices, and the low water levels of the Parana River are still hobbling exports, while uncertainty abounds as they wait for the rains to commence new season planting. Local sunflower seed stocks seem especially tight going forward after large crush volumes, and this should support prices even further.

Soybean meal

Delivery month

Previous month

Current month

Change

Sep-21

ZAR 7 689,00

ZAR 8 186,00

ZAR 497,00

Oct-21

ZAR 7 747,00

ZAR 8 219,00

ZAR 472,00

Nov-21

ZAR 7 740,00

ZAR 8 251,00

ZAR 511,00

Dec-21

ZAR 7 840,00

ZAR 8 276,00

ZAR 436,00

Jan-22

ZAR 7 843,00

ZAR 8 335,00

ZAR 492,00

Feb-22

ZAR 7 898,00

ZAR 8 380,00

ZAR 482,00

Mar-22

ZAR 8 018,00

ZAR 8 444,00

ZAR 426,00

Apr-22

ZAR 8 479,00

Sunflower oilcake

Delivery month

Previous month

Current month

Change

Sep-21

ZAR 5 800,00

ZAR 5 900,00

ZAR 100,00

Oct-21

ZAR 5 800,00

ZAR 5 900,00

ZAR 100,00

Nov-21

ZAR 5 950,00

ZAR 5 950,00

ZAR 0,00

Dec-21

ZAR 5 950,00

ZAR 5 950,00

ZAR 0,00

Jan-22

ZAR 6 000,00

ZAR 6 050,00

ZAR 50,00

Feb-22

ZAR 6 050,00

ZAR 6 050,00

ZAR 0,00

Mar-22

ZAR 6 100,00

ZAR 6 100,00

ZAR 0,00

CBOT Corn

source: tradingview.com

CBOT Soybean

source: tradingview.com

CBOT Soybean meal

source: tradingview.com

CBOT Soybean oil

source: tradingview.com

Shipping Update

International shipping rates are still increasing, reaching new highs almost on a daily basis. The same issues are still present, and the problems will probably remain for the foreseeable future. An interesting analysis was recently done on structural changes and consolidation in the global shipping industry over the last decade. After the 2008 financial crisis, many smaller shipping lines struggled to survive and were taken over by larger operators. Since 2016, a string of mergers and acquisitions almost halved the number of shipping lines; in fact, 70% of all container capacity is controlled by only six companies. As the consolidation progressed, ports and routes were also consolidated. Where a few years ago numerous smaller vessels called in on many different ports, most of the capacity today is concentrated on large ships and a few main routes and ports. To make matters worse, the large shipping lines have formed three alliances, sharing ships, routes, and containers, and many of the remaining smaller operators have opted to join in, thereby further concentrating available capacity. If it is this fundamental lack of competition in the market that is driving shipping rates to new highs, it will take a long time to remedy as the only solution is greater competition.

The amino acid encyclopaedia

by Ashley Grimsell

The amino acid encyclopaedia will contain new terms with each report, providing more information about these terms that appear in the technical update and that may be of interest to you, our reader. The terms that feature in the encyclopaedia may also be relevant to subsequent issues of the Amino Report.

We’ll be back next month with some more additions to our amino acid encyclopaedia!

In Focus

by Ashley Grimsell

Amino acid nutrition for young calves

Although amino acids play a greater role in the nutritional strategies of monogastric animals, their role in ruminant diets may become more significant in the near future. Bear in mind, however, that the inherent microbial population present within the rumen of the ruminant animal will bring about some challenges when considering amino acid nutritional strategies.

References

  • Bai, Y., Liu, T., Hultquist, K., Wu, J. & Casper, D.P., 2020. Feeding an amino acid formulated milk replacer for Holstein calves. Journal of animal science, 98(4), p.skaa099. doi: 10.1093/jas/skaa099
  • Bittar, C.M.M., Silva, J.T.D. & Chester-Jones, H., 2018. Macronutrient and amino acids composition of milk replacers for dairy calves. Revista Brasileira de Saúde e Produção Animal, 19, pp.47–57. doi: 10.1590/s1519-99402018000100005
  • Otterby, D.E. & Linn, J.G., 1981. Advances in nutrition and management of calves and heifers. Journal of Dairy Science, 64(6), pp.1365–1377. doi: 10.3168/jds.S0022-0302(81)82709-9
  • Petzel, E.A., Acharya, S., Bailey, E.A. & Brake, D.W., 2021. Effects of polymerization of casein and sources of lysine on amino acid bioavailability among calves fed liquid-based diets. Journal of Dairy Science, 104(6), pp.6779–6791. doi: 10.3168/jds.2020-19461
  • Terre, M., Ortuzar, I., Graffelman, J., Bassols, A., Vidal, M. & Bach, A., 2021. Using compositional mixed-effects models to evaluate responses to amino acid supplementation in milk replacers for calves. Journal of Dairy Science, 104(7), pp.7808–7819. doi: 10.3168/jds.2020-20035
  • Yu, K., Matzapetakis, M., Valent, D., Saco, Y., De Almeida, A.M., Terré, M. & Bassols, A., 2018. Skeletal muscle metabolomics and blood biochemistry analysis reveal metabolic changes associated with dietary amino acid supplementation in dairy calves. Scientific reports, 8(1), pp.1–12. doi: 10.1038/s41598-018-32241-4

In addition to the above references, this document also contains information from the following sources: