BPEX Weekly Export Bulletin
29 June 2012
Major growth is reported in Sweden with volumes up 33 times against the same period of 2011 to 1,811 tonnes, making this market the seventh largest. The fast decline of Swedish production has indeed a bearing on this spectacular figure.
With a poor Chinese market and a difficult access in the first half, traders are expecting a revival in the second half of the year. The consensus is that prices will now start to rise. However, there are strong differences between those predicting a rapid turnaround over the summer and those who are targeting September.
On the European market both fresh legs and other cuts are sold at virtually unchanged prices. Exports to the British bacon market still remain stable. As to markets outside Europe, there are fine exports to Japan, a fine activity to Russia, while the demand from China is quiet.
(Sources, Danish Crown, Tican, Danish Food Council)
Danish Crown to establish new development department
Danish Crown is in the process of expanding the factory at Ringsted. The company will invest € 3 million in establishing a new development department, which will open the 1st July. The department will employ 50 to 60 staff who will develop and produce new retail cuts - mainly produce bacon, collar products and assorted sliced high quality cuts - for the Japanese market So far the development department was based at the slaughterhouse at Hadsund, which Danish Crown is closing down.
(Source, Dagbladet Ringsted)
|Danish Slaughterhouses - payments week commencing 25 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
New Carrefour sausages
Five new recipes have been launched by Carrefour own brand for pork sausages. The segment of exotic seasoning or spiced sausages is usually occupied by small or middle size charcuterie processors, but for the first time Carrefour decided to change the trend. The recipes include: curry-coco, caramelised apple-cider, tomato- oregano–mozzarella, garlic-basil and lemon-coriander.
“Compassion in World Farming” is sponsoring the Golden Pig Trophy. The new award is designed for producers using rearing methods recommended by CIWF or who are prepared to use CIWF criteria within 5 years…For example as far as breeding sows are concerned group housing, usage of removable material for bedding are important criteria. For charcutiers pigs CIWF requires no tail cutting, no teeth cutting or filing, no surgical castration and usage of removable bedding. Not sure how many candidates will be eligible...
With an increase of 0.6cts yesterday in Plérin the French pig market is regaining fluidity. Carcass weight has reduced by 150gms indicating a lack of availability. No change in the medium term and fluidity should remain in place in the coming weeks; especially as the 14th July Bank Holiday falls on a Saturday and so should not interfere with trade.
Exchanges are restrained and prices were slightly under pressure at the beginning of the week especially in Brittany. To be noted elsewhere the increase in the FNP-FNCBV indices has halted over the past week (+0.1ct for 25Kg & 20cts for 8Kg) in part due to the slow-down in charcuterie pigs last week.
Moral is down amongst the abattoir operators as although prices are firm in the live markets the demand for meat is down. Everyone is impatiently awaiting the arrival of summer and some warm weather.
|Pork prices RUNGIS week commencing 25 June 2012|
|Cut name||Price range (Euro/Kg)|
|Back fat, rind-on||0,65|
|Loin including chump||2,94|
|Loin excluding chump||2,69|
|Belly extra without trimmings||2,45|
Slaughter numbers have been reduced and while there is no excess product on the domestic market exports are very slow. Particularly exports to Asia and Russia are sluggish. Ham is sold at relatively stable prices due to consistent demand from Italy. Meat for processing is marketed with difficulties. There is ample supply of collars and despite sales promotions higher prices are not expected to be achieved. Following the sharp drop in producer prices for slaughter pigs expectations are now modest. Sluggish exports and limited demand for pig meat on the domestic market increase the pressure and for July, prices of € 1,60 – € 1,65 per kg slaughter weight (E-class.) are estimated.
Expansions plans to a BHZP (Bundes Hybrid Zuchtprogramm – National Hybrid Breeding Programme) site in the Dahlenburg region (75 km southeast of Hamburg) are highly objected by the local citizen initiative. The initiative criticizes the large stable size planned for a capacity of 750 sows, 3200 pigs for fattening and 2400 piglets. Also, they criticize the immediate proximity to the Flora Fauna Habitat Neetze. BHZP will now seek the dialogue with the citizen initiative. The company states that, although not legally required, the site will be equipped with modern air filters. BHZP had just recently announced the planned investment of € 8,5 million in nucleus breeding and AI.
|Pork Prices Hamburg Market Week commencing 25 June 2012|
|Cut name||Price range (€ / kg)|
|Round cut leg||2,10/2,25|
|Leg (boneless, rindless max fat level 3mm)||2,90/3,15|
|Belly (bone in, ex-breast)||2,15/2,35|
|Sheet Boned Belly (rindless)||2,10/2,40|
|Half Pig Carcasses U class||2,05/2,15|
Well-known meat research centre IRTA of Girona has developed in collaboration with the Motocono Stuffer SIA engineering company a new alginate cover that could replace natural casings in the production of salami and that allows the salami to hang by a string for ripening and drying.
Arento’s fast growth
The Aragonese co-operative which covers the whole pork production from feed mills to processed sliced pork has increased its turnover in 2011 to € 186 million (+30%). Arento is formed by an amalgamation of 109 small local cooperatives. The organisation also includes dry-fruits processing and flour milling. It is an important supplier to Sabeco supermarkets, part of the Auchan group.
|Pork prices Barcelona Market Week commencing 25 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|
Slight decline of exports of weaners
For the first eighteen weeks of this year, exports of weaners are down 3.5% to 2.165 million but are up to Germany by 8% to 1.418 million. Exports of slaughter pigs are slightly down to 1.185 million with fewer animals exported to Hungary.
(Source, Boerderij Vandaag)
The current restructuration and centralisation of Dutch slaughter in Boxtel and Groenlo is likely to be problematic with a loss of flexibility in processing say analysts.
(Source, Boerderij Vandaag)
Manure disposal increasingly expensive
Dutch pig breeders are facing continuously increasing costs for the disposal of manure. According to data collected by the University of Wagingen, pig breeders had to pay an average of € 28,000 in 2011 for the disposal of manure which is an increase of 7,1% compared with the previous year. Research is being undertaken to find a way to make pig manure transportable however costs implied are still too high.
Colruyt’s spectacular results
The supermarket chain posted spectacular results for its March year end. Turnover is up 7.8% to € 7.85 billion and profits (EBIT) are up to € 485.2 million. This means that the retailer operates with a net margin of 6.2%.
5 new pig-breeding complexes to be built in Bashkortostan
Last week the government of Bashkortostan, and the group of companies Razguliay signed a 5 year agreement for the construction of five large complexes that will include pig breeding farms and processing plants. Total capacity of the farms will be 70,000 tonnes of pigs in live weight annually and the capacity of processing plants will be about 1 million pigs annually. Razguliay is also planning to build a feed mill to manufacture 230,000 tonnes of pig feed per year. The local government intends to provide tax and other benefits and compensate some of the expenses (total project cost – RUR 12 billion).
(Source, Komsomolskaya Pravda)
The biggest agricultural holding in Ukraine, Ukrlandfarming, will invest more than $ 1 billion in the construction of a pig-breeding complex to breed 2 million pigs. The construction is planned to be finished before 2015. According to Galyna Vasylyk, the Chief Operation Officer of the holding, the project will not only include pig farms but also a bio-gas unit, a feed mill and other facilities. The project will be implemented in 5 stages and will be built in Mykolayivska oblast. Ukrlandfarming is one of the biggest agricultural holdings in Eurasia. It comprises 111 grain warehouses, 6 seed factories, 19 poultry farms, 9 chicken farms, 3 selection farms, 6 feed mills, 19 meat-processing plants and others.
Between January-April Ukraine 84,677 pigs of total value $8,799,900 were imported to Ukraine. The total weight of the imported pigs was 2,787.7 tonnes. Countries of origin were Germany (72,567 pigs), Denmark (5,076 pigs), Latvia (2,677 pigs), Poland (2000 pigs) and Hungary (1,638 pigs). Export of live pigs during the same period was 790 pigs (total value $254,200, total weight 98.05 tonnes). The pigs were exported to Georgia.
In May 2012 Ukraine imported 20,574 tonnes of pork which is 4 times more than in May 2011 and 17.2% more than in April 2012. The biggest exporter of pork to Ukraine is Brazil accounting for 12,010 tonnes of pork or 58% of total imports followed by Germany with 3,394 tonnes (17%). Poland comes third with 1,901 tonnes (9.3%). Total Ukrainian pork export in May 2012 was 1,793 tonnes, three times more than in May 2011.
Meat production to increase
A report from the Department of Agriculture in Brazil expects a considerable growth in Brazilian meat production over the next 10 years. The production of poultry is expected to increase strongest at an average rate of 4.2%, while the annual growth rate for beef and pork is expected to be 2.1% and 2.0% respectively. The home market in Brazil is expected to buy large parts of the production increase, as the expected increase in Brazilian consumption of poultry is 2.7%, while the expected annual increase in consumption of beef and pork is 2.0% and 1.8% respectively. The ongoing increase in consumption of meat is not least due to a rapidly growing middle class in Brazil. In 2012, 54% of the population in Brazil is classified as middle class against just 34% in 2006, reports Agra Europe.
(Source, Markedsnyt for Svinekoed)
Public wants antibiotic-free meat
Some 86% of the US public wants antibiotic-free to be available at point of sale and most of them are willing to pay a premium for it. The number of antibiotic-free meat schemes keeps growing and twenty such schemes now exist.
(Source, Des Moines Register)
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