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AHDB Pork Weekly Export Bulletin


27 February 2012

BPEX Export Bulletin  – Week 8BPEX Export Bulletin – Week 8

Trade statistics for the year were made available this week. In 2011, the UK exported 144,387 tonnes of pork (+10%).
British Pig Executive Weekly Export Bulletin

The figures confirm the great success of our exports to Third Countries, particularly the Far East. Over the next few weeks we will produce more analysis including for offal and processed products.

Denmark

Market

The number of slaughterings in Europe is below the expected level and the lower supply creates a positive sales situation. However, the underlying demand has not improved, and the market is a little sluggish. So the present situation is that the orders will be entered on short term basis due to an expected normalization of supply. Currently prices of legs and front parts are slightly increasing, while prices of bellies remain unchanged, but with satisfactory sales. Loins are sold at unchanged prices too, but the sold quantities are quite small. This week fresh legs and backs are traded at a slightly increasing price level on the European market. Other types of cuts are sold at an unchanged price level. Exports to the British bacon market are stable and the price level remains unchanged. Exports to third country markets remain unchanged.
(Sources, Danish Crown, Tican, Danish Agriculture and Food Council)

Improved result

2011 was a stable year for the privately owned slaughterhouse, DanePork. The slaughterhouse, which previously was called Slagtergaarden St. Lihme, ended the year with a profit before taxes of € 1 million compared to € 875,000 the previous year. Gross profit increased over the same period from € 7 million to € 8.2 million according to the annual report, which the slaughterhouse filed with the Company Agency. Since the slaughterhouse was approved for exports in 2001 to e.g. Japan and the US a fine part of the production is sold outside Denmark. Recently the slaughterhouse asked for a permission to multiply its production in order to ensure the future business so that it can expand over the next years. The slaughterhouse employs approximately 140 staff.
(Source, Landbrugsavisen, Vejle amta Folkeblad)

Danish slaughterhouses - payments week commencing 20 February 2012
Slaughterhouse Danish Crown Tican
Slaughter pigs (70.0-86.9kg)
Difference to last week
Euro 1.374
Unchanged
Euro 1.374
Unchanged
Sows (above 129.9kg)
Difference to last week
Euro 1,014
+0.054
Euro 1,014
+0.054
Boars (above 109.9kg)
Difference to last week
Euro 0.881
+0.054
Euro 0.881
+0.054

France

Processors squeezed

High price of pig cuts push processors to request a 10 to 15% increase of prices negotiated these days with French retailers. Since November the price of raw material has remained very high with increases ranging from 39% for bellies bone in to 123% for back fat. This increase results from very high demand on cuts and by products from China, South Korea and Russia. 40% of products used to prepare traditional French charcuterie have been hit. Processors are complaining about the increased services requested by French retailers: commercial co-operation, logistics, shelf stock management, consumers’ tests etc. Finally the average price ex-factory amounts to €5.2/kg whereas the average retail price is €9.00 VAT excluded. The net margin of processors has decreased from form 2 to 3% ten years ago to 1 to 2% today. The French Federation of Charcuterie Manufacturers (FICT) encourages its members to look for customers outside supermarkets.

Pork

The commercial atmosphere remains tense, with an offer always low. According to "Marché du porc Breton", at the middle of 2011 the livestock of sows was lower by 4 to 5 % with regard to the same period of 2010 and this reached 7 at 9 % at the end of the year. The availability will remain limited in the next few weeks.

Cuts

The demand is not very good for loins and shoulders and the operators have difficulty to increase their prices. With the school holidays and the approach of the end of the month, the market will stay low. At the same time exports are still good.

Pork prices RUNGIS week commencing 20 February 2012
Cut name Price range (Euro/kg)
Back fat, rind-on 0.80
Trimmings 1.48
Leg 2.12
Loin including chump 3.01
Loin excluding chump 2.55
Belly extra without trimmings 2.63

Germany

Market

There is neither shortage nor surplus of any cuts and trade was mainly balanced. Sales of hams, chops, shoulders and bellies were satisfactory but prices remained unchanged. Prices for half sow carcasses of German origin remained unchanged. Danish carcasses were sold at increased prices. Demand for sow meat was satisfying but margins didn’t meet expectations. Prices for both German and imported sow meat cuts remained mainly unchanged.
(Source, AMI)

Expansion suspended

The city council of Guetersloh decided to implement an extended development freeze and therewith for one more year keep Tönnies from increasing the slaughter capacity of its local abattoir. Tönnies considers this to be unlawful. The company aims to increase the slaughter capacity from 50 to 120 t per day. Residents are concerned about odor nuisance and increased road traffic.
(Source, topagrar)

No work on Sundays

Danish Crown has given up on the intended expansion of working hours to include Sunday nights. The intended working hours have been tested three times at the company’s site in Essen and have not proved feasible. In the future, no slaughterings will be undertaken on Sundays. The decision to introduce work on Sundays had caused critique and protests from religious groups.
(Source, ISN)

Pork Prices Hamburg Market week commencing 20 February 2012
Cut Name Price range (€/kg)
Round cut leg 2.10/2.30
Leg (boneless, rindless max fat level 3mm) 2.95/3.20
Boneless Shoulder 2.40/2.55
Picnic Shoulder 2.00/2.20
Collar 2.30/2.55
Belly (bone in, ex-breast) 2.20/2.40
Sheet Boned Belly (rindless) 1.90/2.25
Jowl 1.40/1.55
Half Pig Carcasses U class. 2.02/2.12

Netherlands

VION’S supremacy

In 2011, Vion slaughtered 51% of all Dutch pigs. This percentage has tended to fall in recent years.
(Source, Food Holland)

Fewer issues than expected with the take-over of C1000 by Jumbo

Following a ruling by the Competition Commission, Jumbo only needs to sell 18 of the C1000 400 stores it has bought.
(Source, Food Holland)

Spain

Coren’s success

Turnover of the major Galician pork, poultry and beef processor breached the € 1 bn. mark for the first time at € 1,005 m. The company processes 70,000 tonnes of pork and exports 30% of its production.
(Source, Eurocarne)

Pork prices in Barcelona Market Week commencing 20 February 2012
Cut Name Price range (€/kg)
Carcasses (secondary grade) 1,637/1,643
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 2,34/2,37
Cooked Ham 1,92/1,95
Rindless Picnic Shoulder 1,60/1,63
Belly 1,96/1,99
Smoked Belly with Spare Rib Section Cut off 2,39/2,42
Shoulder chap or Head Jowls 1,08/1,11
Back Fat, rindless 1,08/1,11

Russia

Danish breeding pigs to be imported

The Eastern-Siberian pig-breeding complex in Buriatiya will import Danish breeding pigs. The first of four consignments of 5,400 pigs will be sent to Buriatiya in May. The two farm complex is still under construction, and planned to be finished in March. By then, it will be equipped with European equipment already delivered to the site. The planned capacity of the complex is 112,000 pigs (or 9,900 tons of pork).
(Source, Meatinfo.ru)

39,000 pigs culled

Rosselkhoznadzor reports that about 39,000 pigs were slaughtered in Kuban region due to ASF. According to estimations by Rosselkhoznadzor experts, the epizootic situation in the region is still very negative due to ASF and continues to deteriorate. There were four new centers of the disease detected in the territory during January alone. It’s difficult to work on preventing the spread of ASF due to adverse weather conditions with extreme low temperature and snow.
(Source, Interfaks-Russia)

Canadian pork suspended

Officers of the Bratsk Regional Veterinary Department in Irkutsk Oblast suspended 4 tons of pork manufactured in Canada after examining the papers for the consignment. The pork was delivered to the oblast by railroad from St. Petersburg. The veterinary officers inspected the consignment and found that there were no veterinary certificates that guaranteed the safety of the product. The cargo was put on hold and samples of the pork have been taken for laboratory analysis. The owner of the pork will be held administratively responsible in accordance with Russian Federation legislation.
(Source, Piginfo.ru)

Russia: Imported Pork Moscow Market (Feb 17): Russia: Imported Pork St.Petersburg Market (Feb 17):
Neck (no bone): USD 7.39/kg Shoulder (no bone): USD 5.88 /kg
Heart: USD 3.31/kg (Source, Meatinfo.ru) Leg (with bone): USD 4.56/kg
  Liver: USD 2/kg (Source, Meatinfo.ru)

Romania

Increased slaughter numbers

While overall slaughter numbers have increased in 2011, the percentage of industrial slaughterings in the country decreased compared with 2010 figures. According to the National Statistics Institute (INS) in Bukarest pig slaughter has increased by 15.8% to 5.545 million heads. Domestic slaughtering has increased significantly while industrial slaughtering decreased from 60.6% to 52.5%. Pig meat production increased by 8.6% to about 454.400 t dead weight.
(Source, topagrar)

USA

Organic food trade with the EU

USA and the EU, the two largest producers of organic food in the world have signed an agreement of equivalence which means that all European certified produce can be marketed as such in the US market and vice-versa.

Greece

Sopexa activities

SOPEXA Athens together with INAPORC recently organized a trade mission to visit pig farms in France with a view to continuing/securing trust of the trade between France and Greece given the current economic difficulties facing Greek importers. France is a major exporter to Greece but they see more competition developing from Holland, Belgium and Spain. Invited delegates from Greece included some well-nown names of the Greek meat trade such as Yiannis Tzernos, President of the Importers Assn. OF Northern Greece, Lambis Floridis, Meat Purchasers from AB Vassilopoulos KostasXudas and Aris Giannikopoulos of MAKRO among others. Sopexa has a strong presence in Greece due the country’s position of largest export market for French beef.

Pork promotion stunt

Major retailer A-B Vassilopoulos is proposing 300 food lines including pork at 2008 prices. This could prove popular with cash-strapped Greek consumers.

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