September 24, 2007

 

Paylean-free pork may find niche opportunity in the US

 

 

Pork from hogs produced without the use of ractopamine, a feed additive commonly known in the US by its brand name Paylean, may find a niche opportunity in the domestic market, according to some market analysts.

 

The analysts said the use of Paylean is not an issue for US consumers since the additive has been approved since 1999. The niche opportunity comes from a desire among some consumers for pork with more fat, which adds flavour to the meat.

 

Paylean causes the animals to generate more lean muscle and less fat. It is typically fed in only the last two to three weeks before the animals are shipped to the processing plants. According to consumer surveys, not all shoppers want the very lean pork, and some claim they prefer the taste and tenderness of pork that has a little more fat in it. Paylean-free pork may fit their need, but it also may cost more.

 

A few US pork plants have designated a shift or day to process hogs that are not fed Paylean for the Chinese market. China has not yet allowed pork produced with ractopamine and has rejected a number of shipments in which residues of the chemical were found in the meat.

 

Besides the US, Paylean is also approved for use in Canada and about 20 other countries. Market analysts and agricultural economists estimate that approximately 70 to 75 percent of the nation's hog producers use the additive.

 

Analysts said logistical problems would be minimal because some plants are already designating certain times for processing Paylean-free hogs, keeping the meat separate from the balance of their production. They also said if a niche market can be developed domestically for this pork, packers would be less reliant on China or they may be able to maintain a more consistent flow of product by having some domestic orders as well.

 

Don Roose, analyst with US Commodities in West Des Moines, Iowa, said for such a niche market to be successful, the Paylean-free product would have to be promoted and supported through marketing efforts. "China is an unknown quantity," he said, and having some domestic orders for this pork would help the hog producers and packers.

 

Ron Plain, agricultural economist at the University of Missouri, said there are numerous niche opportunities for swine producers and that Paylean-free pork might be one of them.

 

Switching production to this type of pork is fairly easy to do since Paylean is only fed during the last two weeks or so before the hogs are sent to slaughter, Plain said. Producers could stop feeding the additive and within a few weeks could market the hogs as Paylean-free.

 

There are cost-benefit factors to be considered, however, and the net-gain from using Paylean is approximately US$2 per head based on a 2006 study, according to Gary Allee, an animal nutritionist at the University of Missouri.

 

Other studies conducted during the past three years have shown that in certain cases, the financial benefits to producers were even larger and up to US$4 per head.

 

Some hog producers choose not to use the additive and others may have facilities that are not suited for providing a different feed ration to the hogs in the last two to three weeks before slaughter, analysts said.