ThePigSite.com - news, features, articles and disease information for the swine industry

Sign up for ThePigSite weekly newsletter5m Books.comVIV Europe 2014 DigitalIntroducing ElSitioPorcino.com

BPEX Weekly Export Bulletin


30 April 2012

BPEX Export Bulletin - Week 17BPEX Export Bulletin - Week 17

From 20 April 2012, EU export refunds on pig meat have been removed. This should not affect UK exports.
British Pig Executive Weekly Export Bulletin

Due to tighter controls in Guangzhou, some 8,000 containers were blocked in Haiphong and some low value poultry products had to be destroyed due to lack of capacity. However, there are conflicting reports and the situation in Hong Kong appears easier, even if logistical difficulties are reported.

DENMARK

Market

Demand for pig meat in Europe remains weak. Hence, sales of legs to the European market are under some pressure and prices remain unchanged or are slightly decreasing. Shoulders and production meat are sold at unchanged prices while exports of loins and collars suffer from poor spring weather in most Europe. Exports to the British bacon market are stable and prices remain unchanged. As to markets outside Europe there is a stable and awaiting trade to Russia, a fine activity to China, and an unchanged, stable trade to Japan. (Sources, Danish Crown, Tican, Danish Agriculture and Food Council).

American Smithfield Foods buys Danish housing systems

The Danish manufacturer of stable installations, Vissing Agro, is currently in the process of delivering a huge order to the world’s largest pig producer, Smithfield Foods. Last year the Americans began to install Danish gestation crates in their many pig stables in the US. The company has announced that until 2017, it voluntarily will hold all sows in loose housing systems rather than in closed boxes. Hereby Smithfield is closely following the regulations implemented by the EU-countries, which as of 2013 require that gestating sows should be held loose in the housing systems. Smithfield Foods had started the gigantic transformation of its production back in 2007. However, after several years with poor financial results, the plans were put on hold during the subsequent years. Since then, earnings have stabilized and at the same time Smithfield Foods was criticised repeatedly for not living up to its announcements. Then in 2011, the company once again started to transform the gestation housing systems. (Source, Landbrugsavisen)

DanAvl increases exports

According to Pig Research Centre, DanAvl produced and exported five million doses of semen in 2011, which is an increase of 10% compared to 2010. During the same period sales of young sows increased by 28% to 1.64 million young sows. Total turnover of Danish genetics reached € 175 million in 2011. Young sows and semen are sold worldwide, and especially to the EU, Russia, the US, and Brazil. DanAvl is also in gaining a position on the Chinese and other Asian markets. (Source, Landbrugsavisen)

Danish DCH is expanding the farms in Romania

The Danish agricultural company DCH International will continue several years’ expansion. The company currently produces 50,000 finishers in Canada and approximately 210,000 pigs on farms in Romania. Over the last three years sales have almost doubled but growth does not stop there. The company shareholders just approved this year’s financial accounts where the result of € 2.5 million after taxes signals that the company is back on 2009-level after a dive in 2010 to € 1.4 million. The turnover amounts to € 28 million. The results are satisfactory at a time where high grain prices put a pressure on the exchange ratio between feed and settling prices of pork. (Source, Landbrugsavisen)

Exports of Danish pork declined in January

German exports are now back on track after last year’s dioxin scandal, which heavily impacted on the trade. In January this year, the German exports to third countries outside the EU have nearly doubled from 35,000 to 68,000 tonnes. The increase is so significant that it is one of the main reasons to the aggregate increase of EU exports of pork in January compared to the same month in 2011. Spain also notes a surge in exports reaching 36,000 tonnes in January 2012 compared to 22,000 tonnes in January 2011. Danish pig producers however pull the aggregate export in the opposite direction as Danish exports have been declining. (Source, Markedsnyt for svinekoed)

Danish Slaughterhouses - payments week commencing 23 April 2012
Slaughterhouse Danish Crown Tican
Slaughter pigs (70.0 – 86.9 kg)
Difference to last week
Euro 1.428
Unchanged
Euro 1.428
Unchanged
Sows (above 129.9kg)
Difference to last week
Euro 1,068
Unchanged
Euro 1,068
Unchanged
Boars (Above 109.9kg)
Difference to last week
Euro 0.935
Unchanged
Euro 0.935
Unchanged

FRANCE

National campaign

Having changed its levy collection system from a compulsory voluntary tax to a voluntary tax, Inaporc is now free to promote French pig meat without fearing the threat of state aid rules from Brussels. The new campaign is focused on trade and public press, no TV but targeted campaigns involving firstly regional press and feminine public press and secondly national daily press. The budget of €2.5 to 3 million should also allow the production of messages to support several jobs in the industry such as pig producer or charcuterie processor. The campaign is based on the VPF (Viande de Porc Français or French pig meat) logo and on the new logo designed for processors (Savoir-Faire Charcutier Français) or “know how” of French charcuterie processors. Today the VPF logo benefits from 65% unprompted awareness (Ipsos survey) and appears on 20% of charcuterie pre-packed products sold in French supermarkets.

Tempé taken over by Maurer

The Alsacian group owned by Dominique Bigard confirmed the purchase of Ets Tempé (€38 million turnover) with 20 out of 31 Tempé stores. € 2 million will be invested in the two production sites in 2012. The new group will represent over €50 million and becomes N°2 charcuterie processor in Alsace.

Pork

The basic price lost 1 cent yesterday. Abattoirs slow down their purchases due to low activity on the meat market and waiting to see the orientation of their sales with the beginning of the month and the end of school holidays.

Piglets

The offer is still very low in France and throughout Europe. On our territory, according to the “Institut du Porc” the offer is reduced, in Brittany in particular, due to the reduction in the breeding flock and building work to improve standards; this will support the prices over several weeks. Some professionals think that no clear return of the offer will appear before summer.

Cuts

The beginning of the week is very calm. The bad April weather strongly subdued the sales of seasonal products, in particular sausages (-41,8 % in week 16 compared with the same week in 2011).

Pork prices RUNGIS week commencing 23 April 2012
Cut name Price range (Euro/kg)
Back fat, rind-on 0,65
Trimmings 1,42
Leg 2,10
Loin including chump 2,85
Loin excluding chump 2,46
Belly extra without trimmings 2,46

GERMANY

Market

At the end month the demand for pig meat is surprisingly subdued. Production has been reduced; sales of cuts are not satisfactory. It is doubted that the bank holiday on May 1st will bring the desired impulses to the trade as there is still ample supply on the market and sales to the consumer are sluggish. Demand for a range of barbecue products is normal for the time of year. (Source, AMI)

Analysis of efficiency in German pig production

On average, the German sow keeper will get 13 live born piglets per litter and 26 sold piglets per sow per year, according to SvineInfo based on an analysis of the economics of sow stocks and slaughter pig production in 2010 and 2011 prepared by the Agricultural Chamber of Lower Saxony. The gross margin is € 370 per sow per year. Veterinary and medicine costs are € 152 and other costs amount to € 267 per sow per year. The production results of finisher stocks are a daily growth of 788 grs and a feed utilization of 2.92 kg feed per kg growth. The mortality rate is 2.6% and the gross margin per finisher is € 18. (Source, SvineInfo)

Antibiotics debate

The Vet's Association demands for the implementation of a centralized database into which the registration of all antibiotics sold and used in animal breeding would be mandatory. The veterinarian authorities would be in charge of the analysis of the data. Significant variations would be automatically detected and the level of variation displayed in the form of a “traffic light” with a yellow light demanding action from the local vet and the traffic light changing to red light resulting in an official inspection in case of non-compliance with the requirements. According to the association a system like the proposed would not only improve monitoring but also lay the foundation for an appropriate debate on the use of antibiotics in livestock breeding. (Source, topagrar)

Pork Prices Hamburg Market Week commencing 23 April 2012
Cut Name Price range (€/kg)
Round cut leg 2.15/2.25
Leg (boneless, rindless max fat level 3mm) 2.95/3.20
Boneless Shoulder 2.50/2.65
Picnic Shoulder 2.05/2.25
Collar 2.65/2.75
Belly (bone in, ex-breast) 2.30/2.45
Sheet Boned Belly (rindless) 2.00/2.30
Jowl 1.45/1.60
Half Pig Carcasses U class. 2.10/2.20

SPAIN

The Spanish consumer

At the yearly AECOC congress, Kantar and Nielsen have unveiled new insights on consumers’ behaviour and meat buying. They note that the market is saturated with a penetration of 99% and a consumption of more than 55 kg of meat per person (end product weight) and 150 kg per household. Unsurprisingly, Spanish consumers are increasingly price-conscious. The number of people declaring to put price first when buying food will rise to 26.5% by 2015. It was only 21.2% in 2005. Health as a driver to buy food remains stable but people are increasingly pleasure seeking. Incredibly for Spain, more and more people report lack of spare time and want more convenient food. Fewer people are willing to pay more for sustainable or environment-friendly food. Spanish consumers now reject this responsibility towards processors and the government. However they are keen to recycle. They do not intend to reduce fresh food and meat consumption but they are looking more for value. For instance sales of white electrical goods are down 17% in value but FMCG are up 1.5% in value and 0.6% in volume after two years of limited decline. The winners are meat, processed meat products and dairy products at the expense of dearer fish but also fruits and vegetables. Within the fresh meat segment, chicken and rabbit are the clear winners at the expense of beef and lamb with pork stable. People are buying less dry-cured ham but more sliced cooked meat, particularly cooked turkey products. Butchers still represent 44% of fresh meat and 26% of processed meats sales. (Source, Proceedings of AECOC Congress)

Pork prices Barcelona Market Week commencing 23 April 2012
Cut Name Price range (€/kg)
Carcasses (secondary grade) 1,703/1,709
Gerona Loin Chops 2,48/2,51
Loin Eye Muscle 3,41/3,44
Spare Ribs 2,88/2,91
Fillets 5,38/5,41
Round Cut Legs 2,42/2,45
Cooked Ham 2,05/2,08
Rindless Picnic Shoulder 1,63/1,66
Belly 2,14/2,17
Smoked Belly with Spare Rib Section Cut off 2,57/2,60
Shoulder chap or Head Jowls 1,23/1,26
Back Fat, rindless 1,08/1,11

NETHERLANDS

Output stabilising?

In week 12, 1% more pigs were slaughtered than the corresponding week of 2011. However, so far this year, slaughtering is down 4%. (Source, Boerderij Vandaag)

New classification system on target

Peter van Balkon, Vion Purchasing Director reports that the trial of the French Capteur Gras-Maigre (CPM) from Sydel against the Hennessy Grading Probe on 50,000 pigs has shown small differences of meat content of the order of 1%. The basic price is now set for pigs of less than 17 mm backfat and more than 61 mm loin muscle depth for a carcase lean meat content of 58%. (Source, Boerderij Vandaag)

Filet Américain not what it seems

According to television programme Keuringsdienst, 20% of the filet américain (spiced minced beef consumed raw) sold in the Netherlands contains pork. We remember well that last year, lamb kebabs were found to contain other meat species that expensive lamb. (Source, Boerderij Vandaag)

UKRAINE

Axzon group gets the best payment for their pig production in Ukraine

During the first years it was a tough game for the people behind Poldanor to start and run pig production in Ukraine. But thanks to good productivity and good pig meat prices at approximately € 2.2 per kg on average in 2011, the investment is now really starting to be profitable and it is the pig production that earns the most money to the owners. Behind the pig production is the Axzon group, which operates pig production in bothPoland via Poldanor and in Ukraine via the local subsidiary Danosha. In 2011, the company expanded its pig production to 212,000 pigs compared to 142,000 the year before. Out of the total Axzon group profit amounting to € 20 million, almost two thirds originated from Ukraine. According to CEO Tom Axelgaard, there are still plenty of opportunities for new expansions in the country. Over the next years Poldanor plans to expand the production by 5,000 sows with finishing pig production in Ukraine. (Source, Landbrugsmagasinet)

6 pig-breeding complexes to be built

According to the information provided by Ternopil Oblast State Administration, currently 6 pig-breeding complexes with a total capacity of 273,000 pigs are being built in the region. The construction is financed by the State budget. The total amount of money allocated to the support of agricultural projects in 2012 in the State Budget is UAH 822 million (~ USD 102 million). (Source, PigUA.info)

Trichinella

On April 18, 2012 experts of Novokakhovska State Veterinary and Sanitary Laboratory found pig carcasses infected with Trichinella on Novokakhovsky market. The area where the carcasses were brought from is currently being examined by the local veterinary authorities. Blood samples are taken from all kinds of animals susceptible to the illness. 60 people in the Boryslavsky region of Khersonska oblast are suspected to be infected with Trichinella. (Source, State Veterinary and Phytosanitary Service of Ukraine)

Production of fresh pork up

During the first quarter of 2012 production of fresh pork in Ukraine increased by 8.1% compared to the same period in 2011 and amounted to 45,400 tonnes (Q1 2010 – 27,200 tonnes, Q1 2009 – 21,700 tonnes). The total production of fresh pork amounted to 13,200 tonnes in January, 14,400 tonnes in February and 17,700 tonnes in March. The total volume of frozen pork manufactured in Q1 2012 was 2,100 tonnes, which also exceeds the volume produced in the same period last year by 17%. Total population of pigs in Ukraine as of April 1, 2012 was 7,549,700 which represents a decrease by 4.4% compared with the same date in 2011. (Source, PigUA.info)

RUSSIA

Imported Pork Moscow Market (April 24):

Leg (with bone): USD 4.8/kg
Shoulder (no bone): USD 5.6 /kg
Liver: USD 2.0/kg (Source, Meatinfo.ru)

Imported Pork St.Petersburg Market (April 24):

Leg (with bone): USD 4.5 /kg
Leg (no bone): USD 5.6 /kg
Liver: USD 1.7/kg (Source, Meatinfo.ru)

NORWAY

Norsvin chooses Dutch genetics

Topigs ‘Z’ dam Large White line has been chosen by the Norwegian breeding scheme as the current Swedish lines is not considered competitive. The two organisations have agreed a joint R&D programme. (Source, Boerderij Vandaag)

POLAND

Stronger demand, higher prices

Prices for pig meat are expected to rise due to increased demand during the football European championship taking place in Poland and Ukraine in June. Domestic production will be unable to meet the increasing demand. Pig numbers in the country have been continuously shrinking for some time. In November 2011 a decrease of -12% compared with the previous year was registered. Sow numbers are also on the decline. Therefore, Poland will depend on even larger imports in 2012. In 2011, Germany exported nearly 200.000 tonnes of pork to Poland. (Source, iq-agrar)

USA

Sexing up the pork chop

The National Pork Board has enlisted Madison Cowan, a famous chef, to demonstrate the versatility of pork chops. A recent survey by Wakefield Research shows that four out of five Americans are very unimaginative with this product that gives the highest contribution to carcase value. A campaign on Facebook and Twitter has been launched. (Source, National Pork Board)

China trade mission

The USDA’s largest ever overseas agricultural trade mission to Chengdu and Shanghai in China included more than 40 companies. The group visited Shanghai port’s inspection and quarantine leadership (CIQ), Yangshan new container port, a cold store and Metro. China has become the USDA’s largest overseas presence with seven offices in five cities. The US exported US$ 713 m. of pork products to China in 2011, a record, and exports in January reached US$ 75.1 m., a 158% jump over last year. (Source, various)

Impact on the environment

The pork sector is working actively to assess its impact on the environment. The National Pork Board has commissioned on life-cycle assessment of carbon and water footprint with University of Arkansas and for air footprint with Purdue University. For 2013-14 it plans to start a research programme on land footprint.

BRAZIL

Marfrig’s ambitions

In an interview, Marcos Molina (Marfrig’s owner), Ricardo Florence dos Santos (Finance Director) and Nigel Dunlop (Moy Park) disclose the company strategy. Marfrig aims to develop his Seara meat brand on the 200 m. strong Brazilian market and use this base to expand it worldwide through the sponsorship of football and Jamie Oliver. Obviously, through the ownership of Moy Park, Marfrig has a strong bridgehead in the UK and France. (Source, the Sunday Times)

CHINA

Venture capital investments

In 2011, venture capital funds invested around 40 projects worth US$ 600 m. Obviously these not include only pigs but also dairy, poultry/duck, horticulture, fish farming and the agriculture supply chain. They also include organic farming projects. The funds do not appear to be fazed by the long term nature of returns. (Source, China Daily)

KOREA

Pork production to rise sharply

According to USDA, Korean pork production should jump up by 17% this year as the country bounces back from the 2010-11 FMD outbreak. This will of course affect pork imports. (Source, USDA)

JAPAN

Trade negotiations

The EU has started negotiations with Japan for a Free Trade Agreement. (Source, AHDB)

April 2012

DOWNLOAD REPORT:- Download this report here

Share This


Related Reports

Reports By Country

Reports By Category

Our Sponsors

Partners