BPEX Weekly Export Bulletin
22 June 2012
On the European market fresh legs and other cuts are sold at an unchanged price level. The situation on the British bacon market is stable. As to markets outside Europe exports to Japan are fine, whereas exports to China are somewhat subdued. Exports to the Russian market remain unchanged and stable.
(Sources, Danish Crown, Tican, Danish Food Council)
Danish Crown lowers costs through benchmarking
Within six months Danish Crown has lowered costs by € 6.3 million by transferring work methods from one factory to another in the pork division. The efficiency measures are part of a large-scale streamlining plan. The optimization is achieved through internal benchmarking (comparing week accounts between factories) indicates the originator of the Danish Crown plan, Kurt T. Pedersen. The efficiency measures are achieved e.g. through updating piecework contracts. One example is the standardization of how to cut front parts and take out hip parts from the backs.
(Source, Danish Crown)
From 2006 to 2011 almost every twelfth pig producer left the industry in Denmark. According to recent figures from Statistics Denmark, there are now just 4,600 pig farmers left in Denmark - five years ago there were 7,600 pig farmers. While there was a decrease in the number of pig productions having both sows and associated finishers production as well as in pure finisher farms, the number of farms with sows and sale of piglets increased from 2010 to 2011 from 493 to 549. In 2011, Danish pig producers produced a record quantity of pigs of 29.4 million animals.
(Source, Danmarks Statistik)
|Danish Slaughterhouses - payments week commencing 18 June 2012|
|Slaughter pigs (70.0 – 86.9 kg)
Difference to last week
|Sows (Above 129.9 kg)
Difference to last week
|Boars (Above 109.9 kg)
Difference to last week
Easy deal for Cooperl
Cooperl Arc Atlantique needing more space in their main site in Lamballe (Brittany), have decided to purchase the next door building (ex Kerguelen (veal) site closed down by Bigard when they had to reduce size when they took over Socopa); The deal is: 4 800 sqm for €2.3 million and the increased capacity should allow Cooperl to extend their processing activity and produce more sausages, retail packs and sliced products.
Reduced salt range
Fleury-Michon who started their reduced salt products ten years ago are now surfing on success. Today reduced salt (-25%) products represent 30% of their sales of superior ham. The national share of reduced salt hams offer is 10%. Fleury-Michon claims to be the only processor who does not replace sodium chloride by potassium chloride, they say they are using a vegetable and herbs stock. Even their standard ham reference has a reduced salt content of 18 g per kg (compared with 20g 4 years ago). Within twelve years Fleury-Michon have reduced by 20% the salt content of their prepared meals and today 90% of Fleury-Michon prepared meals have a salt content below 1%.
There is little movement on the “Spot” market at the moment. If some of the regions have sufficient supply to meet demands then others are finding it difficult to meet requirements.
The unsettled weather continues to affect confidence in consumers and distributors alike and as a consequence sales of pig meat are down. And despite a better weather forecast for the upcoming weekend wholesalers are remaining prudent as the end of the month is never a good period for household purchasing.
|Pork prices RUNGIS week commencing 18 June 2012|
|Cut name||Price range (Euro/Kg)|
|Back fat, rind-on||0,65|
|Loin including chump||3,07|
|Loin excluding chump||2,63|
|Belly extra without trimmings||2,61|
The sharp drop in the German pig quote of 9 Cent/kg deadweight was met with critique and lack of understanding throughout Europe. The drop had caused prices in some neighbouring countries to come under pressure too. Now the outlook that prices might drop further leads to orders being placed carefully. On the retail side, the main demanded products are collars and shoulders which are widely promoted. Chops and loins are only marketed with difficulties. On sow meat, prices for half carcasses of German origin have reduced by 4- 5 Cent while prices for imported half carcasses remain unchanged.
(Sources, topagrar, AMI)
Over the last months, Vion has made some alterations to its long term strategy “Balancing the future”. This comes as a reaction to the disappointing 2011 results as well as to the outlook for the next years. According to ISN estimations, Vion slaughtered less than 10 million pigs last year. However, the company has not confirmed numbers. The aim is now to increase productivity and quality of the products as well as lower costs by reducing staff and closing sites. Measures are expected to be implemented in Germany, The Netherlands and the UK. In Germany, 290 jobs will be cut until the end of this year with the sites in Wunstorf and Hilden being the worst affected. In The Netherlands, the Druten site will be closed down and its activities transferred to Boxtel and Groenlo. 340 jobs are endangered. For the UK, no details have been announced yet and options are currently being assessed. According to Vion, the planned changes will lead to fewer transports and higher animal welfare.
|Pork Prices Hamburg Market Week commencing 18 June 2012|
|Cut name||Price range (€ / kg)|
|Round cut leg||2,15/2,30|
|Leg (boneless, rindless max fat level 3mm)||2,95/3,20|
|Belly (bone in, ex-breast)||2,25/2,40|
|Sheet Boned Belly (rindless)||2,15/2,40|
|Half Pig Carcasses U class||2,05/2,15|
Valls Companys buys new abattoir
The Spanish leader in pig production is buying Cárnicas Cinco Villa en Ejea de los Caballeros (Zaragoza), an abattoir with a capacity of 12,000 pigs per week. This gives the group its fourth pig abattoir and is a logical and unsurprising move as its other plants are located in Catalonia (Patel), Valencia and Castilla-La Mancha (Frimancha).
Meat consumption recovers
Between January and March, Spanish meat consumption rose by 2.3% to 632,000 tonnes (end product weight) led by strong sales of frozen meats (discounted), processed pork and poultry. Sales are up 1.5% in value.
|Pork prices Barcelona Market Week commencing 18 June 2012|
|Cut name||Price range (€ / kg)|
|Carcases (secondary grade)||1,816/1,822|
|Round Cut Legs||2,47/2,50|
|Rindless Picnic Shoulder||1,66/1,69|
|Smoked Belly with Spare Rib Section Cut off||2,63/2,66|
|Shoulder chap or Head Jowls||1,23/1,26|
|Back Fat, Rindless||1,08/1,11|
Vietnam agreement for Hypor
The Dutch breeder has announced a joint venture with the feed produced Japfa Group. Some 700 GGPs (Landrace, Large White and Piétrain) will be imported and populate a high health farm in the autumn.
(Source, Asian Pork)
Topigs to shrink its Dutch operation
The company is closing 20 multiplication farms representing 6,000 sows. At the moment, some 100 farms representing 30,000 sows multiply for Topigs.
(Souce, Boerderij Vandaag)
The new loan scheme
Details have emerged for the new scheme to help Irish pig farmers to adapt to the 2013 regulation on loose-housed sows. Loans are to be limited to £ 300,000 per farm to a limit of 40% of investment. Some 65% of Irish farms are not compliant yet and may benefit from the scheme. Irish scientists report an increase of lameness with loose-housed sows.
(Source, Irish Farmer’s Journal)
Formation of emergency action executive body suggested
Nikolai Fedorov, Russian Minister of Agriculture suggested the formation of an official body similar to the Ministry of Civil Defense, to deal with all emergency situations in animal breeding in Russia. The suggestion was made due to the threat of further spread of ASF and the current measures not being sufficient to eliminate the disease. According to Mr. Fedorov, the official body would mainly deal with the intensification of epizootic measures in the regions. Currently it’s almost impossible to monitor the veterinary condition of animals in private households.
Cherkizovo Group strengthens market position
Cherkizovo Group will purchase a number of agricultural assets in Central Russia from Voronezhmiasprom for a total value of RUR 4.46 billion. The assets include: selective-genetic pig breeding complex, animal food plant and about 30,000 hectares of agricultural land. The Federal The cartel office still has to approve the purchase. According to market experts, Cherkizovo buys new assets in order to strengthen its positions on the market and be more competitive when Russia joins WTO.
|Imported Pork Moscow Market (June 19):||Imported Pork St.Petersburg Market (June 19):|
|Neck (no bone): USD 6.46/kg||Loin (with bone): USD 5.5 /kg|
|Leg (no bone): USD 5.4 /kg||Shoulder (no bone): USD 5.2 /kg|
|Liver: USD 1.64/kg (Source, Meatinfo.ru)||Heart: USD 2.6/kg (Source, Meatinfo.ru)|
May pork production up
According to the National Statistics Committee, the production of fresh and chilled pork in Ukraine amounted to 14,600 tonnes in May 2012 which was 3.5% more than in April 2012 and 2.7% less than in May 2011. The total production of pork during January-May 2011 was 74,000 tonnes. Production of frozen pork in May amounted to 800 tonnes, which is twice as much as in April 2012 and 33% more than in May 2011.
No more pork for Europe?
Following the poor report following veterinary inspection at the end of last year, Brazilian exporters are thinking of giving up on exports to the EU.
(Source, Brazilian Meat)
Illegal consignment retained
Customs officials in Shenzen near Hongkong have stopped a container ship loaded with 1.800 tonnes of illegal pork, beef and poultry meat. Apparently, the meat originates from the US, Brazil, Australia and New Zealand. The value of the illegal consignment is assessed at about € 7,5 million. Five members of the crew have been arrested.
New safety standards
Fourteen Government departments will collaborate in the drafting a new safety standards for a range of food including meat. These should be applicable in 2015 and will not allay consumers’ concerns in the mean time.
(Source, Asian Agribusiness)
Charoen Pokhand Foods, the Thai company and leader in meat production in Southewast Asia has announced an investment of £ 20 million in three new pig farms for a total of 25,453 sows in central Luzon (Concepción, Tarlac and Floridablanca).
(Source, Asian Pork)
Loose housing sows
A survey by Ron Plain of the University of Missouri shows that 17% of US sows are now in housing systems with untethered sows. According to the survey the figure will increase to 23% within two to three years. The study is based on responses from 70 producers keeping more than 1000 sows. Altogether, these 70 producers hold 3.6 million sows.
(Source, Markedsnyt for Svinekoed)
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