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AHDB Pork Weekly Export Bulletin


20 May 2013

BPEX Export Bulletin - Week 20BPEX Export Bulletin - Week 20

The 23 companies involved last week with SIAL in Shanghai or Hofex in Hong Kong are now back and have all reported a high level of serious queries; some even took orders on stands. The large delegation included traders, major pork processors, niche pork producers as well as sausage, bacon and pork snacks makers. Another subject of satisfaction comes from the link with the UKTI GREAT campaign, which worked well with the British Meat branding at Hofex.
British Pig Executive Weekly Export Bulletin

During Hofex, Westaway sausages promoted by Barbara Woodward, Director of Trade at the Foreign Office and Caroline Wilson, the Consul General during the Tuesday reception featured prominently in Ming Pao, one of the main Hong Kong daily papers. The coverage included the British Meat stand banner. The article reflected on our strong presence at the fair. See http://t.co/glMdFjY2HF

Pictures of Hofex and SIAL will be posted on our Internet site: www.eblex-bpex-export.org.uk

France

Angry Producers

With a 20% increase in feed prices last year, pig producers are reporting losses of around €30 per pig with some producers losing as much as €10,000 a month. Pig producers in Western France decided to make their point on Tuesday 14 May by stopping lorries transporting imported pig. Demonstrations are also planned in supermarkets. French farmers blame unfair competition from EU member states marketing cheaper meat on the French market.

Ingredients: The Successful Marketing Segment

Lardons, dice, sticks and other culinary aids are ahead of other charcuterie products in terms of sales development. With an output of 64,000 tonnes, the market for ingredients increased by 3.7% in volume and by 5.4% in value to reach €486m. This growth is more than twice that of cooked ham (1.8%). The attractive price/convenience mix is the driver behind this - for as little as €2 protein can easily be added to any meal. Added to this, the versatility of these products attracts consumers for simple and creative recipes. Lardons still represent 70% of the total market of charcuterie ingredients, with reduced salt varieties helping maintain market share. Own brand lardon products represent half of total sales. Bacon has never found its place on the French market. However, presented as a lean ingredient proposition, it is often used on TV cookery programmes.

Markets

Pigs: There was no surprise in France that offers were strong last Monday at Plérin. At the same time, abattoirs showed that demand was strong; in this context, the Plérin 56TMP basic price firmed by €0.001 indicating that “offers are not too strong”.

Piglets: High production costs and steady demand for charcuterie pigs on the French market resulted in prices remaining stable at best, or falling slightly on the week. FNP-FNCBV prices lost €0.01 for 25kg pigs and €0.30for 8kg piglets.

Cuts: In France and the Netherlands, the downward trend continued, with offers falling by 3.7% over the first four months of the year compared with the same period in 2012.

Pork prices RUNGIS week commencing 13 May 2013

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.60
Trimmings 1.26
Leg 2.44
Loin including chump 3.04
Loin excluding chump 2.74
Belly extra without trimmings 2.98

Denmark

Danish Crown report

Danish Crown reported results of €95m for the first six-month period of their year. This compares with €98.6m in the corresponding period a year ago. Turnover for the period was €3.80b compared with €3.66b last year.
(Source, Danish Crown)

Progress for Sokolow

The Polish meat business Sokolow, partially owned by Danish Crown, increased their earnings during the first quarter of the year. Profits of €11m compared with €6.5m in the same period a year ago. Turnover was €175 during the quarter. The increase is reported to be due to increased sales of processed products. During the period, Sokolow started new production lines at several plants in Poland. The company is the number two meat group in Poland surpassed only by Animex owned by Smithfield.
(Source, Landbrugsavisen)

New Grant for Danish Pig Producers

The Danish Food Department has reserved €20m to establish new production units under the so-called Environment Technology Scheme. According to the Knowledge Centre for Pig Production, the scheme is aimed at larger projects with a value around €500,000. Producers will be eligible for a grant over 25 years of between €1 and €1.30 per pig. The subsidy is to cover additional environmental costs of new construction. (Source, Danish Crown)

Markets

On the European market, fresh legs have been sold at similar prices. Demand for loins resulted in marginally higher prices. Shoulder and manufacturing meat is sold “slowly” at lower prices. The bacon market remains unchanged. On third country markets, demand is stable to Russia, China and Japan.

Danish Slaughterhouses - payments week commencing 13 May 2013
SlaughterhouseDanish CrownTican
Slaughter pigs (70.0 – 86.9 kg)
Difference to last week
Euro 1.426
unchanged
Euro 1.426
unchanged
Sows (Above 129.9 kg)
Difference to last week
Euro 0.918
-0.027
Euro 0.918
-0.027
Boars (Above 109.9 kg)
Difference to last week
Euro 0.786
unchanged
Euro 0.786
unchanged

Germany

Balanced Market

Although the barbecue season is not yet in full swing, demand is improving, soaking up higher supplies. Prices for necks, shoulders and cutter bellies are moving up slightly. The market is still held by large stocks of frozen meat. Unchanged prices are the order of the day and no price rise is forecast before the end of the month.
(Source, various)

Pork Prices Hamburg Market Week commencing 13 May 2013
Cut namePrice range (€ / kg)
Round cut leg 2.20/2.40
Leg (boneless, rindless max fat level 3mm) 3.00/3.25
Boneless Shoulder 2.40/2.60
Picnic Shoulder 1.90/2.10
Collar 2.80/2.90
Belly (bone in, ex-breast) 2.40/2.55
Sheet Boned Belly (rindless) 2.25/2.45
Jowl 1.60/1.75
Half Pig Carcasses U class 1.94/2.02

Italy

Downward Pressure on Prices

Over the last two months, the Italian quotation has declined by €0.30 per kg. Lack of domestic demand for high value products such as Parma ham is dragging down leg prices. Loin prices are holding up.
(Source, Mercolleida)

Murru is Running out of Liquidity

The important pork processor in Sardinia is expected to be in receivership soon. Employees have not been paid for five months.
(Source, Alimentando)

More Exports of Parma Ham

Exports are partially compensating for the fall of domestic demand for Parma ham. Production of sliced ham was up 10% in 2012 to 72m packs. Exports represented 73% of production with the UK and Germany the leading destinations. The USA imported 520,000 hams (+17%) and 2m packs of sliced ham.
(Source, Suinicoltura)

Salame Felino IGP at Last

The emblematic salami from the Parma province has gained its European recognition, joining 247 other Italian food products.
(Source, Suinocoltura)

Pork prices Barcelona Market Week commencing 13 May 2013
Cut namePrice range (€ / kg)
Gerona Loin Chops 2.38/2.48
Loin Eye Muscle 3.23/3.26
Spare Ribs 2.93/2.96
Fillets 5.23/5.26
Round Cut Legs 2.68/2.71
Cooked Ham 2.45/2.52
Rindless Picnic Shoulder 1.69/1.72
Belly 2.40/2.43
Smoked Belly with Spare Rib Section Cut off 2.83/2.86
Shoulder chap or Head Jowls 1.13/1.16
Back Fat, Rindless 0.68/0.71

Finland

HK Scan is 100

Exactly 100 years ago, 20 farmers in Southwest Finland met and decided to build their own slaughter plant. This was the beginning of HK Scan, now the leader in the pork sector for Finland, Sweden and the Baltics. The company has also a strong Polish presence.
(Source, HK Scan)

Sweden

Decline Accelerating

The slaughter data for the first four months of 2013 shows that the decline trend in Swedish pork production is accelerating. In 2013, some 2.59m pigs were slaughtered in Sweden, down from a peak of 3.36m in 2004.
(Source, Pig International)

“Rapeseed Pork”

HK Scan has extended its Rypsiporsas concept created in Finland in 2011 under the Raspgris brand. Pigs are fed a high level of rapeseed. This treatment modifies the composition of the pork fat towards healthier unsaturated and omega-3 fatty acids. The pork is also said to be tastier. The company reports good sales in an otherwise morose pork consumer market. Overall, company sales in Swedish have fallen from €1,179m in 2008 to €1,040m in 2012. We may add that this, unfortunately, renders the meat unsuitable for the production of salami, an important outlet for pork in both countries.
(Source, HK Scan, our comment)

Hungary

CSF Restrictions Lifted

The European Commission has lifted the restrictions linked to the presence of Classical Swine Fever in local wild boars. Restrictions remain in place in Bulgaria, Romania and Latvia.
(Source, European Commission)

Russia

New Breeding Complex

A huge pig-breeding complex is to be built in the Gatchinskiy region of Leninhradskaya oblast. The total cost of the project is estimated at US$161.2m with a capacity of 220,000 pigs per year. The investor for the project is the VIAD Group of Companies.
(Source, PigUa.info)

Pork Prices on the up

After months of selling with little or no margin, Russian pork producers are finally seeing firmer pork prices. At the beginning of May, the average pork price increased to US$ 2.17-2.29 per kg, liveweight. This increase is the first since August 2012, when Russia joined WTO. Prior to August 2012, the average pork price peaked at US$2.87 per kg. Aleksandr Nikitin, the Director of one of the biggest Russian meat market players, Miratorg, says that the main reason for the price increase is growing demand from consumers with the Easter fast lasting until 5 May. Another reason, according to Sergey Yushin, the Head of the Executive Committee of the National Meat Association, is lower pork import.
(Source, Kazakh-zerno.kz)

Hong Kong

Premium Products

The territory has about 30 premium food stores. Among others, City Super offers Japanese Okinawa pork (boneless chops at 760 HK$ - £64/kg), Iberian pork, Danish organic pork (belly at HK$ 300 - £25/kg) and US organic pork (bone-in chops at HK$ 400 - £33 /kg). Please, keep in mind that due to the extraordinarily high rental costs for stores, supermarkets have a much higher gross margin than in Europe at around 50%. Premium pork is normally flown in.
(Source, own)

China

Chinese wholesale prices week commencing 13 May 2013

 Price (RMB/Kg)£/KgChange on week
Pig Carcase 18.59 1.99 -0.85%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities

New Zealand

More Imports

With the market now open, the surprise comes from Sweden, who seems to be the first EU country to get pork into Kiwi stores. The uncompetitive New Zealand pork sector is obviously livid.
(Source, own)

Venezuela

Flourishing Production

Pork production increased in 2012 by 10-12% to around 250,000 tonnes. A further increase of 60,000 tonnes is expected in 2013.
(Source, Eurocarne)

Chile

Import Barriers

Local producers are requesting pork tariffs of 14.3% to limit imports. In 2012, some £53m worth of pork was imported into Chile and expectations for 2013 are similar. This is ‘a bit rich’ from a major exporter benefiting from pork free trade!
(Source, Eurocarne, our comment)

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