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AHDB Pork Weekly Export Bulletin


16 December 2011

BPEX Export Bulletin - Week 50BPEX Export Bulletin - Week 50

The British Pig Executive's (BPEX) Export Bulletin for December 2010 reports pig industry trends from around the world.
British Pig Executive Weekly Export Bulletin

BPEX has unveiled its programme for the first six months of 2010. It involves Taste of Britain events in Prague (9-10 February), Malta (21-22 March) and Copenhagen (23-24 March). BPEX is a co-organiser of the Malta event. BPEX has also planned a presence at the CIMIE meat exhibition in Beijing (1-3 June). Regarding genetics, BPEX will support the British participation to VIV Asia (9-11 March, Bangkok), Agrofarm (12-14 April, Moscow) and CAHE (16-18 May, Qingdao, China).

BPEX circulated a study on the potential of the Philippines market for pork and pig offal. As discussed in bulletins passim, European pork exports to the Philippines have risen substantially. Copies of the report are available from the export office.

Statistics for EU pork exports to end of October show that their excellent performance with 2.206 million tonnes (+13.9 per cent) is being maintained. Exports to all destinations are up bar the Ukraine and Croatia.

Denmark

Market

The markets are largely the same as last week. There is a good demand at stable prices in Europe. The demand is the best on the typical Christmas products such as loins and legs. Some believe, however, that sales of legs are declining. Tenderloin, which is a great Christmas product in Sweden and Germany, is selling well too. The British bacon market remains unchanged with fine sales. The markets in Japan and Russia are still subdued but in Russia, the slaughterhouses are on the verge of getting new orders on the licences that will be issued shortly. Exports to China are slowing up. It is due to the fact that we are approaching the time when the goods shipped will arrive around the Chinese New Year when usually prices are expected to fall. It is also estimated that the Chinese government’s intervention on the market with sales from the stocks and a further opening for goods via Hong Kong provides an abundant supply on the market.
(Sources, Danish Crown, Tican, Danish Agriculture & Food Council)

Danish Crown receives more pigs

Last spring, the largest supplier of slaughter pigs in Denmark, Eskelund, exported the slaughter pigs but it does not happen any more. Now, the producer joined Danish Crown because the pork price in Germany is below the Danish price, and it would cost 15 Euro-cents per kilo and a lot of time to transport the pigs. New figures from the central domestic animal register show that a number of the largest suppliers of slaughter pigs deliver their pigs to the co-operatively owned company, which for some years has not been market leader on settling prices. However, there are many indications that the traffic with slaughter pigs again is heading in the direction of Danish Crown.

According to Danish Crown’s own statement the slaughterhouse during summer got contracts on the delivery of one more million slaughter pigs. A glance at the central domestic animal register also reveals that out of the eight largest suppliers of slaughter pigs in Denmark, seven will transport their pigs to a Danish Crown slaughterhouse. According to communication manager of Danish Crown, Anne Villemoes, the new traffic first of all is due to the fact that Danish Crown offers the best settling price.
(Source, Landbrugsavisen)

Upward adjustment of forecast

Next year in the third quarter, the pork quote will peak at €1.30 per kilo as an average. This is according to the estimate of Danish Agriculture & Food Council in a new forecast, which does not include residual payments from the slaughterhouse. Hereby the new pork price forecast from the market department of Danish Agriculture & Food Council is by and large unchanged from the preceding forecast in September. Market analyst of Danish Agriculture & Food Council, Karsten Flemin, evaluates that over the three last months of the year the price will improve by 3.2 Euro-cents per kilo compared to the last forecast thus resulting in a pig quote of €1.267 per kilo as an average. Altogether, it means that the forecast is an upward adjustment of the average pork quote in all 2011 of one Euro cent per kilo to €1.250 per kilo.

Mr Flemin points at the fact that on the contrary the official forecast from EU expects that for a little while, pig production will continue increasing slightly.
(Source, Landbrugsavisen)

Danish Slaughterhouses - payments Week 50
Slaughterhouse Danish Crown   Tican
Slaughter pigs (70.0-86.9kg)
Difference to last week
Euro 1.229
Unchanged
  Euro 1.229
Unchanged
Sows (Above 129.9 kg)
Difference to last week
Euro 0.873
Unchanged
  Euro 0.873
Unchanged
Boars (Above 109.9 kg)
Difference to last week
Euro 0.801
Unchanged
  Euro 0.801
Unchanged

France

Pigs

The end of the year looks good. Prices increase slightly. The carcass weight follows the same tendency. Demand is dynamic both on the national and international markets. Slaughterings are regular but the cost of the feed stays on the agenda.

Piglets

FNB and FNCBV indexes increased by 0.2 and 4.0 cents last week, respectively, for 25-kg and weaned pigs.

Cuts

The market for the cuts benefits from the support of overseas markets. Cuts are selling well to our East European neighbours but also to Far East countries.

Pork prices RUNGIS week commencing 13 December 2010
Cut name Price range (Euro/Kg)
Back fat, rind-on 0.40
Trimmings 1.12
Leg 2.05
Loin including chump 2.53
Loin excluding chump 2.28
Belly extra without trimmings 1.71

Germany

Market: Satisfying volumes

High volumes are currently sold on the wholesale markets. Cuts most in demand are loins and fillets showing increasing prices. Also prices for hams and collars have slightly increased. For other cuts, the prices remained mainly stable. Overall, sales are reported to be satisfying with pork meat apparently benefiting from the strongly increased prices for young bulls.

Under Dutch control

In the Eastern German regions of Sachsen-Anhalt and Thüringen, more than half of all sows as well as the majority of fattening enterprises in the region are owned by Dutch companies.
(Source, Topagrar)

Pork Prices Hamburg Market Week commencing 13 December 2010
Cut Name Price Range (€ / kg)
Round cut leg 2.20/2.40
Leg (boneless, rindless max fat level 3mm) 3.25/3.40
Boneless Shoulder 2.30/2.50
Picnic Shoulder 1.80/2.00
Collar 2.10/2.25
Belly (bone in, ex-breast) 1.90/2.05
Sheet Boned Belly (rindless) 1.88/2.00
Jowl 1.10/1.30
Half Pig Carcasses U class. 1.85/2.03

The Netherlands

U-turn on meat substitutes

The Netherlands is the most significant market for plant/dairy/yeast/fungi proteins meat replacers in Europe despite their high price and poor organoleptic performance. These are pushed by the 21 or so Dutch lobby groups that see them as ‘The Solution’ whilst considering organic meat as a lesser evil. Meat substitutes are, of course, promoted by Dutch retailers and food processors attracted by the high margins. Last year, the Government committed €1.7 million in the development of new meat substitutes. Interestingly, the Secretary of State for Economic affairs, Development and Innovation Bleker has made a U-turn and sided with high-welfare meat and low-environmental impact as currently promoted by Albert Heijn. He sees himself as ‘a realist’ with Dutch consumers wanting to eat meat and the major growth of world meat consumption as unavoidable
(Source, Food Holland).

Spain

Opportunities for Huelva

The Deputation of Huelva signed, on the 13 December, an agreement with the Regulator Board of Denomination of Origin (DOP) for Huelva’s Ham, which will benefit 535 pig farms. The agreement will generate employment and will boost one of the top products of the province of Huelva.

Mercadona’s demand force the merger of Monter and Pirene

The growing demand for cured meat products from Mercadona has forced Embutidos Monter to absorb the company, Productos Cárnicos Pirene. Monter will integrate into the business structure of the Girona based producer Pirene. Monter hopes to commercialise in 2010 more than 15,000 tons of cured meats, all under the private label, ‘Hacendado’, which is an improvement of 15.3 per cent compared to 13,000 tons of product sold the previous year. Its sales, on the other hand, will also grow significantly at the end of this year, with revenues of €79 million compared to €71 million in 2009, entailing an increase of 10.6 per cent. This increase, however, is far from last year’s results, a period in which its benefits grew more than 30 per cent.

Pork prices Barcelona Market Week Commencing 08 November 2010
Cut Name Price Range (Euro/Kg)
Carcasses (secondary grade) 1,350/1,356
Gerona Loin Chops ---/---
Loin Eye Muscle ---/---
Spare Ribs 2,58/2,61
Fillets 6,68/6,71
Round Cut Legs 2,39/2,42
Cooked Ham 2,01/2,04
Rindless Picnic Shoulder 1,43/1,46
Belly 1,81/1,84
Smoked Belly with Spare Rib Section Cut off 2,24/2,27
Shoulder chap or Head Jowls 0,88/0,91
Back Fat, rindless 0,63/0,66

Italy

Export success

Despite falling production, Hungarian pork exports are booming. Pork exports for the period January to August rose to 94,380 tonnes from 68,598 tonnes for the same period of 2009 despite a fall of shipments to Romania, the main traditional market, to 20,219 tonnes from 30,603 tonnes. Most notable are exports to Japan, which have now increased to 13,701 tonnes. Exports to Slovakia, Italy, the Ukraine and the Czech Republic have all rising strongly.
(Source, Agra Europe).

Russia

Potentially dangerous pig tails seized in Russia's Far East

According to V. Salenko, representative of Rosselkhoznadzor, the specialists of veterinary surveillance seized 25 tons of Listeria-tainted pig tails in Far Eastern region of the country. The unique culinary delicacy was shipped to Russia from Germany. The entire meat lot was addressed to an individual businessman in Khabarovsk and was to be sold in one of the city's supermarket chains.
(Source, RIA Novosti)

Cost of pork production in Russia is double that in other countries

Farmers are sounding the alarm. Higher prices of grain and consequently feed led to increased production costs of pork and beef and reduced livestock volumes. Thus, in the near future, Russians may face higher prices on meat, which will put pressure on inflation. According to the grain market analyst, V. Petrichenko, feed grains are currently much more expensive than milling grains in the European part of Russia: the price of barley is around US$260 per ton and of corn is almost $277, while high-grade milling wheat is sold for $228 per ton. Last year, the average estimated price of feed grains was $65 to $82 per ton. According to the Ministry of Agriculture, 16.9 million tons of feed grains were harvested in the country this year. Y. Kovalev, Director General of the National Union of Pig Breeders, reported that only pig and poultry breeders need approximately 30 million tons of feed grains per year.
(Source, expert.ru)

Brazil

Russian embarrassment

Brazil claims that a secret agreement on meat trade between Brazil and Russia has been broken by Moscow. The agreement signed by President Lula in 2005 stipulated the terms of an understanding between the countries to have Russia join the World Trade Organization (WTO). Russia, one of the main markets for Brazilian meat and sugar, is negotiating with its major trading partners, the requirements of joining the WTO. It has come to agreements with the US and the European Union, but it has frustrated Brazilian diplomacy.
(Brazilian Meat Monitor)

US

Producers angry about ethanol subsidies

Livestock and poultry producers and processors have unanimously condemned the extension of the 45 cents subsidy per gallon of ethanol and the 54 cents duty on imported ethanol for another year.
(Source, National Chicken Council)

Smithfield’s good profits

Profits at Smithfield Foods rose to US$147 million in the third quarter. For the same period last year, the company was losing money. Increased pork demand more than compensated for the hike of feed prices. Pig prices are up 54 per cent on last year. Exports demand is also up. The company has benefited from smaller supplies, following the closure of the Sioux City abattoir in April.
(Source, Smithfield Foods)

Australia

New report

BLG (British Livestock Genetics) sponsored a report by Dr Rex Walters on the potential for British breeding pigs. Australian pork production peaked in 2002 to nearly 420,000 tonnes and retreated in the period 2002-2008. Pig production is now rising slightly and is expected to reach 346,000 tonnes in 2011 but there are no sign of rebound of exports. The report looks at local competitors for porcine genetics: Cefyn, Eastern Genetics, Myora and Riverlea. The market has been closed for many years.

Pig research

The government has pledged its support to the Pork Cooperative Research Centre for a further eight years. The programme will include research in support of the phasing-out of sow stalls.

December 2010

DOWNLOAD REPORT:- Download this report here

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