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AHDB Pork Weekly Export Bulletin


23 April 2012

BPEX Export Bulletin  – Week 16BPEX Export Bulletin – Week 16

Talks at Food & Hotel Asia in Singapore, the largest Asian food exhibition, mentioned increased competition in Asia between exporters to the region leading to tougher market conditions. Some Chinese importers are reported to have incurred losses due to the unsettled market.
British Pig Executive Weekly Export Bulletin

Five British exporters of pork and sausages attended Food & Hotel Asia this year, a new record. The frying of sausages attracted a good crowd to the joint BPEX-EBLEX stand.

Particularly frustrating are the fast-rising exports to the Far East of US Berkshire pork (Korobuta), as the country of origin of the breed, England, is not supplying this profitable and expanding market.

Denmark

Market

The cold weather results in a fairly sluggish trade with legs and front parts not only in Denmark but in most of Northern and Central Europe. Also shoulders and production meat are marketed slowly. The collar season has not started yet, and the cold weather delays the barbecue season. Sales of bellies are stable, but with a loin market under pressure there is a risk that over the next weeks the pressure will spread to the back market. On third country markets exports are stable. Russia, which was a fast moving market before Easter, is now in a more stable position. The market in China is satisfactory and is buying decent quantities. Exports to Japan are stable.
(Sources, Danish Crown, Tican, Danish Agriculture and Food Council)

Compound feed with 15 to 20% sunflower meal is cheap

Currently prices of sunflower meal are very favorable. Compound with up to 15 – 20% sunflower meal has been for sale at prices significantly below more traditional blends. LandboNord Pig Consultancy have calculated slaughter pig compound with soybean meal versus 50% soybean meal and 50% sunflower meal. Given the current price relation the price of the blends can be reduced by 0.6 Cent per FUgp when half of the soybean meal is replaced by sunflower meal. No changes of the pig production result are expected.
(Source, Svineinfo)

Red figures at HK Scan

The Finnish meat group HK Scan finishes the first quarter of the year with a deficit. One of the largest meat groups in Europe reported so to the stock exchange in Finland in a message which prepared the path for a quarterly report that will be published on 8th May. The reason for the downturn is an unexpected bad development on HK Scan’s home market in Sweden. The company says that it has been more difficult to get Swedish beef and pork. At the same time, prices paid to the producers have increased more than HK Scan has been able to pass on to the retail shops. The results on other markets most important to HK Scan’s business were satisfactory, which is positive news for Danish Crown that has a joint venture with HK Scan in the Polish company Sokolow. HK Scan is still expecting to reach a result for the whole year which will be better than last year’s result of € 40 million.
(Source, Landbrugsavisen)

Vion invests in Northern Ireland

Vion is going to invest GBP 11.5 million in developing the company’s processing facilities in Cooktown, Northern Ireland. The processing department is the largest pig processing business in Northern Ireland. The company produces pig meat, bacon, cooked meat and emplays more than 700 staff. The investment will include the installation of new anesthesia equipment which should increase animal welfare and expand the production capacity.
(Source, Markedsnyt for svinekoed)

Danish slaughterhouses - payments week commencing 16 April 2012
Slaughterhouse Danish Crown Tican
Slaughter pigs (70.0-86.9kg)
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

Golden Pig

According to a survey by Ifop (1000 respondents) three out of four French confirm that the rearing method is a purchasing criteria for meat. The survey was completed for CIWF and it also says that 85% of interviewees are in favour of improved information on rearing methods; 41% say this information is very important and 80% say they are concerned with the way pigs are reared. At last SIA exhibition in Paris, CIWF launched the “Golden Pig” award to reward groups of producers or processors choosing animal welfare friendly systems such as the ones banning tail cutting, teeth filing and surgical castration of piglets but using straw bedding and the grouped and free housing of sows. The first trophy will be awarded in Paris in October.

Jean Rozé

The Intermarché own brand is now expanding to include charcuterie products and is progressively replacing the previous charcuterie own brand “Louis d’Armel”. A range of new pots of microwaveable pre-cooked mini-sausages was launched recently to compete with the Herta products.

Pork

Our basic price stayed almost stable on Tuesday at “Marché du porc Breton”. The orientation of the prices in the short term will depend on the demand on both the domestic and export markets.

Piglets

No change at the beginning of the week. Prices are stable. From their part, the FNB-FNCBV indices lost a few cents last week: -4cents for the 25 kg and -90 cents for post-weaners.

Cuts

The week begins slowly due to the end of the month and school holidays in 2 of the 3 zones in France. The weather is bad which is not good for the sales of barbecue cuts! The offer is not very good and prices remain stable. According to "Marché du porc Breton”, the May bank holidays are expected to increase demand and strengthen the trade activity.

Pork prices RUNGIS week commencing 16 April 2012
Cut name Price range (Euro/kg)
Back fat, rind-on 0.65
Trimmings 1.40
Leg 2.06
Loin including chump 2.86
Loin excluding chump 2.59
Belly extra without trimmings 2.42

Germany

Market

Prices for half carcasses have remained unchanged. There is sufficient supply of cuts with the tendency for supply to exceed the demand. It is hoped for better weather conditions to increase sales of barbeque products.
(Source, AMI)

Pig imports stagnating

The number of pigs imported into Germany had been increasing continuously over the last years but the upwards trend came to a halt in 2011. A total of 14 million pigs were imported. While the number of pigs for slaughter summed up to less than 5 million imports of Dutch piglets showed an increase. An estimated 10 million piglets were imported from the neighbouring country with about 6 million animals of Danish origin having been ordered from The Netherlands. Imports from Denmark have reduced strongly since 2010. For 2012 AMI estimates a continuously decreasing supply of imported pigs for slaughter. Imports of piglets however are expected to show a minimal increase that will not meet the strong increase rates the last years have shown. ¼ of the total 59.5 million pigs slaughtered in Germany in 2011 was imported.
(Source, iq-agrar)

Bad prospects

Although meat and sausages are still a constantly important part of the German's diet, the source of supply is in most cases no longer the traditional butcher's shop. Discounters and large meat producers are putting strong pressure on small, independent businesses and trade unionists agree that the local butcher's shop will eventually cease to exist. The large meat producing companies putting continuously cheaper products on the market and supplying discounters with pre-packed products pose a competition traditional shops cannot keep up with. According to the trade union for food, beverage and catering (NGG), most butchers’ shops these days only manage to survive due to a second business offering catering services or serving lunch. Due to secured consumer supply through supermarkets and discounters the significant changes in the industry are easily disguised.
(Source, iq-agrar)

Popular Parma ham

In 2011, German consumers have eaten more Parma ham than ever before. About 389.000 Parma hams were imported from Italy which is an increase of 4.9% compared to 2010. According to the Consorzio del Prosciutto di Parma, the North Italian ham manufactures produced about 9.1 million Parma hams in 2011 generating a revenue of € 1.5 million. About one quarter of the total production was exported of which 2/3 (more than 1.5 million hams) were sold to other EU member states.
(Source, Lebensmittel Praxis)

Pork Prices Hamburg Market week commencing 16 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 2.55/2.65
Picnic Shoulder 2.05/2.25
Collar 2.60/2.70
Belly (bone in, ex-breast) 2.35/2.45
Sheet Boned Belly (rindless) 2.00/2.30
Jowl 1.45/1.60
Half Pig Carcasses U class. 2.10/2.20

Spain

Export dynamism

An important mission to Singapore of some of the largest Spanish pork processors took place in March with processors wanting to export directly to local distributors. This has unsettled the existing arrangements with traders. The processors were also out in force at Food & Hotel Asia. In April, Marfriges, Patel, Toni Josep, Batallé, Costa Brava and Friselva visited Lithuania and Bielorussa. Further missions are planned in Mexico, Chili and the Czech Republic.
(Source, Eurocarne, various)

Rebound for the Iberian sector

In 2011, 5 m. Iberian hams were marketed which represent a growth of 10% against 2010. The cebo (intensively fed) segment grew by 18% to 4.2 m. pieces. In contrast, the bellota (extensive, acorn fed) segment sank by 15% to 800,000 pieces. However, the latter figures must be considered against the reduced availability as it takes more than 12 months to produce the pig and a further three years to cure it.
(Source, Eurocarne)

Torre de Nuñez fast growth

The dry-cured ham and fermented sausages specialist increased its turnover by 18% in 2011 to € 14 m. The company is planning a new secadero (drying plant) and a new sliced meats line.
(Source, Alimarket)

Embotits Can Duran new UK venture

The Catalan pork processor has announced a joint venture with British counterpart, The Bath Pig for the commercialisation of chorizo in the UK.

Pork prices Barcelona Market Week commencing 16 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 2,09/2,12
Smoked Belly with Spare Rib Section Cut off 2,52/2,55
Shoulder chap or Head Jowls 1,18/1,21
Back Fat, rindless 1,08/1,11

Italy

Pork imports to top 1 million tonnes in 2012?

With pork imports reaching 971,000 tonnes in 2011, it looks that the 1 million tonne mark will be breached this year. Germany should be the principal beneficiary of this increase of imports and already exported 329,000 tonnes last year.
(Source, various)

The Netherlands

New consumer research

New results by the LEI institute on potential reduction of meat consumption unveil stable consumption but a decline of frequency with males. The image of meat is generally poor although meat replacers are also unloved.
(Source, LEI – Wageningen UR)

Russia

Imports of EU-pork to be suspended

The Federal Service for Veterinary and Phytosanitary Surveillance Chief Mr. Sergey Dankvert reported that pork imported into Russia shows higher levels of antibiotics than officially permissible. The reason for that in his opinion is that there is the lack of monitoring. Antibiotics are reportedly found not only in ready to eat pork but also in bodies of live pigs after veterinary treatment. Mr. Dankvert also says that because the EU shipper does not carry out any testing on antibiotics in live animals costs are occurring for the Russian side. On March 20, Russia placed a ban on imports of live pigs, cattle and other livestock of EU origin. The suggestion of the Russian Agricultural Surveillance Chief is to slaughter animals in the EU, carry out all necessary lab testing and only then ship it to Russia. The only countries which may still be allowed to export to Russia are Denmark and Spain, according to Dankvert. In his opinion Germany is unlikely to be allowed to export pigs and products at the moment.
(Source, The Federal Service for Veterinary and Phytosanitary Surveillance)

New investments despite AFS

In April 2012, a new nucleus is going to be launched in Krasnodar in Tbilisi district which will supply pedigree pigs to the region that suffered most from ASF. Further, a new pig unit is being built in Ust-Labinsk to produce 60,000 fattening pigs. The unit will also comprise an abattoir. This new company is going to supply half carcasses to other cutting plants in the area. The cutting plant project is estimated at around RUR 100 million. The investment in the pig unit is close to RUR 1 billion.
(Source, Kuban News Company)

Ukraine

Pork prices skyrocketed

In April prices for pork in Ukraine skyrocketed with the key driving factor being the end of the fasting period and Orthodox Easter. With domestic production being stagnant, the pig population decreasing and pork production in general declining pig producers profited from the situation and increased prices dramatically for commercial animals for slaughter. The average price for bacon breeds (1st category) in April was around US $2.7/kg live weight which is 8% up from March. The average price for 2nd category animals increased by 7.7% to reach US $2.41/kg live weight. n the The market for slaughter pigs is expected to remain bullish which is partly due to the upcoming May holidays.
(Source, pigua.info)

Canada

Plant subsidies

Agriculture Minister Gerry Ritz announced on April 11 the government's investment of C$ 3 million to upgrade the pork-processing facilities at Quality Meat Packers Ltd. in Toronto. Investing in the plant is part of Canada's C$ 60 million Slaughter Improvement Programme.
(Source, Meat & Poultry)

Singapore

Success of FHA

Food and Hotel Asia which closes today confirmed its position as the largest food and hospitality show in Asia. Queues of two hours to get in and one hour to get out on the first day testify of the increased frequentation. Despite being sandwiched between two large Muslim countries, Indonesia and Malaysia, there was plenty of pork interest from the region and offers from Spain, USA, Brazil, Holland, Denmark amongst others. However, there was no representation from Germany, France or Ireland.

Brazil

Still in the red

According to Agra-Europe, the world’s largest meat producer JBS SA has once again recorded losses in 2011. However, the company was able to improve its economic results. The deficit summed up to 75.7 million Real (approx. GBP 25 million) while in 2010 it totaled 292.8 million Real (approx. GBP 97 million). CEO Wesley Mendonça Batista blamed the red figures on loss-making US poultry producer Pilgrim´s Pride that was taken over in 2009. However, the pork division that was implemented by taking over the US's third largest meat producer Swift & Company in 2007 showed very satisfying results. In 2011, the Business Unit Pork USA recorded a growth in sales of 17.5% to nearly 3.5 billion US $. Earnings before interest, tax and depreciation of tangible and intangible assets (EBITDA) increased by 22% to 338 million US $. The company slaughtered 13.1 million pigs in 2011 which is an increase of 2.3% compared with 2010 figures.
(Source, ISN)

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