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AHDB Pork Weekly Export Bulletin


07 October 2013

BPEX Export Bulletin - Week 40BPEX Export Bulletin - Week 40

Last week, the joint EBLEX-BPEX led trade mission to West Africa, visited Benin, Cote d'Ivoire and Ghana. We met a number of interesting importers and distributors in this exciting yet challenging market. The region has experienced recent sustained economic growth, with the forecast population growth likely to drive increased demand in the future.
British Pig Executive Weekly Export Bulletin

Denmark

Do small slaughterhouses really prosper?

Last week article from the Jutland Post is certainly correct in the view that Brørup and Danish Meat are increasing their throughput but is far too upbeat. They are doing so to maximise their throughput and stem losses. Smaller Danish pork plants have very much so a chequered history. Tönnies recently injected €134m in Brørup as it faces another year of negative results and Danish Meat is reported to have liquidity problems.
(Source, Landbrugsavisen, various)

Danish Crown lays off employees

Declining supplies of finished pigs combined with the end of the holiday season mean that employees have been laid off from some of Danish Crown's factories. The slaughterhouse in Ringsted has had a decrease of 7,000 pigs per week, and as a result it has been announced that about 80 employees will be laid off. Similarly, slaughterhouses in Sæby and Blans have approx. 3,000 fewer pigs per week and will also result in job losses.
(source, Food Supply).

Markets

On the European market, fresh legs have been traded at slightly lower prices. Other cuts have been traded at unchanged prices. The UK bacon market is reported as stable. On markets outside Europe, good sales to Russia are still reported, while the Asian markets report a fair trade to China with unchanged sales to Japan.

Danish Slaughterhouses - payments week commencing 30 September 2013
SlaughterhouseDanish CrownTican
Slaughter pigs (70.0 – 86.9 kg)
Difference to last week
Euro 1.588
-0.027
Euro 1.588
-0.027
Sows (Above 129.9 kg)
Difference to last week
Euro 1.159
-0.080
Euro 1.159
-0.080
Boars (Above 109.9 kg)
Difference to last week
Euro 1.027
-0.080
Euro 1.027
-0.080

France

Fleury-Michon v Aoste

Fleury-Michon is the undisputed leader of cooked charcuterie products in the French retail market. Aoste is the leader in French supermarkets for dry charcuterie products. This set-up might change as Fleury-Michon has decided to launch a range of five new products presented in attractive black trays with a label using Aoste colour codes. The first product called “Le Fruité” is thinly sliced soft dry ham from Modène (Italian PDO) matured for 14 months. The second product called “L’Intense” is a stronger Serrano, Spanish dry ham. The third product called “Grand Arôme” is also Spanish ham coming from black pigs and matured for 24 months. The fourth product called “L’Iberico” is a soft chorizo also from Spanish “Pata Negra” pigs and finally the fifth product is named “Le Lomito” which is thin slices of dried pork fillet. These products are prepared with a Spanish partner and the objective is to benefit from the success of the Spanish trend for aperitifs/tapas.

Tallec on fire

One factory of the Tallec charcuterie manufacturing group (200 staff) had a fire early in September.?Today the company has moved its production to their second site in Bannalec. Employees are now busy clearing the partly-burnt factory in order to start producing again as soon as possible.

Markets

Pigs: The 56 TMP price is still going down, losing €0.015 last Monday at Plérin. French consumption is better, as is the trend early in the month and offers from pork butchers remain sufficient to satisfy abattoirs’ demand. However, prices have eased.

Piglets: The French market is still not evolving - being squeezed between moderate supplies and prudent demand. Prices are stable. FNP-FNCBV prices lost €0.08 for 25kg pigs and €1.42 for 8kg piglets last week.

Cuts: ?The sector hopes that the beginning of this month will be the start of a good period. For the moment, retailers are still prudent but should buy more in advance of the weekend.

Pork prices RUNGIS week commencing 30 September 2013

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.70
Trimmings 1.70
Leg 2.54
Loin including chump 3.09
Loin excluding chump 2.91
Belly extra without trimmings 2.78

Netherlands

Another meat tax proposed

The political anti-meat campaign is continuing unabated with the D66 liberal party proposing an increase of VAT on meat from 6 to 21%. They have only 12 seats in the 150 seats Parliament but this position is attracting increasing support from minority parties.
(Source, various)

Germany

Pork Prices Hamburg Market Week commencing 30 September 2013
Cut namePrice range (€ / kg)
Round cut leg 2.48/2.65
Leg (boneless, rindless max fat level 3mm) 3.30/3.50
Boneless Shoulder 2.65/2.80
Picnic Shoulder 2.10/2.30
Collar 2.60/2.85
Belly (bone in, ex-breast) 2.40/2.60
Sheet Boned Belly (rindless) 2.45/2.70
Jowl 1.45/1.60
Half Pig Carcasses U class 2.14/2.24

Spain

Shanghui to cut Campofrio share ownership

Shanghui who inherited a 37% stake in Campofrio by buying Smithfield Foods is to cut its share ownership in the Spanish processor as it needs to fall below 30% in order to avoid a full takeover bid under Spanish law. The rumour mill is running at full tilt as this reduction may be a delaying tactic. Cheap Spanish assets are of interest to Chinese and Hong Kong investors and Oaktree Capital who owns 24% of Campofrio will sell at the right price.
(Source, various)

Italy

Light pig production hit

Over the last eighteen months, the production of light pigs has shrunk nearly 30% (-28.8% from Dec. 2011 to Dec. 2012) with the production of heavy pigs has remained stable. Production of suckling pigs is also down. Farm profitability is down due to the fall of price of heavy pigs this year.
(Source, Rivista di Suinicoltura)

Food fraud on the up

In the first quarter of 2013, the carabinieri seized 280 tonnes adulterated of low priced food worth €112.6m It is worth of note that all this took place in the South where the pressure on incomes is the highest. Inhabitants of the mezzogiorno spend 25% of their incomes on food against 19% for the national average.
(Source, Coldiretti)

Food sales under pressure

In the first six months of the year, Italian food sales fell by 3% with red meat down 2%, still less than fish (-13%), pasta (-10%) or dairy products (-7%). Chicken (+6%) and egg sales (+4%) are up.
(Source, Coldiretti)

Norway

End of piglet subsidy proposed

Due to efficiency and profitability, Norwegian pig production has expanded and is now exceeding market capacity. Thus, an end to piglet subsidy is now mooted.
(Source, Nortura)

Canada

PIC buys Génétiporc

PIC-Genus is buying Généticporc the Canadian breeder part of the Aliments Breton Group for £18.8m subject to veterinary inspection. The company owns interests in the USA, Mexico and has a joint venture in Brazil. The deal includes £3.45m debts, a nucleus farm of 3,200 sows and the intellectual property. Agroceres PIC, Genus’s 49% owned subsidiary in Brazil will pay Génétiporc do Brazil £5.4m PIC has 99 m. market pigs equivalent to Génétiporc 13 m. Génétiporc has 300 clients and was created in 1984. Synergies worth £6.9m per annum are anticipated. Genus says the Génétiporc is “an excellent fit” with the existing PIC Northern American and Brazilian business.
(Source, Genus)

USA

Victory for common sense

The Humane Society of the United States (HSUS - the equivalent of Compassion in World Farming in the UK) was dealt a significant and expensive blow in U.S. District Court. In what was considered to be a futile legal challenge and a very personal attack on U.S. pork producers, a U.S. district judge on Wednesday dismissed a lawsuit filed by HSUS over the National Pork Board’s purchase of the “Pork, The Other White Meat” trademark from the National Pork Producers Council (NPPC). HSUS, which was joined in the suit by a lone Iowa pork producer and the Iowa Citizens for Community Improvement, sued the USDA and Secretary Tom Vilsack over approval of the trademark purchase and the Pork Board’s annual payments to NPPC.
(Source, Pork Network)

Bob Evans to close factory

The sausage producer is closing its Texas Factory blaming high sow prices. The company turned over US$329m in Q2 2013 but is under attack due to falling profits.
(Source, Bob Evans)

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