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AHDB Pork Weekly Export Bulletin


10 April 2012

BPEX Export Bulletin  – Week 14BPEX Export Bulletin – Week 14

So far, Russia seems to be the only country to ban live pig imports from the EU due to the Schmallenberg virus outbreak despite the disease only affecting ruminants (and on a limited scale).
British Pig Executive Weekly Export Bulletin

The EU is protesting vigorously against this measure as “unjustified” to no avail so far.

South Africa now officially allows the import of bacon from the UK using the existing raw pork certificate.

Denmark

Market

The market for front parts is stable. The markets for shoulders and legs show a positive trend with fine demand. The market for loins continues the positive development from last week and prices are slightly increasing. On third country markets there is a stable export to Russia and Japan, while the market in China is developing positively again.
(Sources, Danish Crown, Tican, Danish Agriculture and Food Council)

Danish piglet producers’ earnings to rise

This year piglet producers will get the long-awaited improvement in earnings according to a new forecast from the Research Centre for Agriculture and Food & Agriculture. Expectations of a higher quote on pig meat are expected to lead to higher demand for piglets. According to the forecast it will make operating profit rise by approximately € 67,000 this year and a further € 21,000 next year. For slaughter pig producers, the prospect is that the progress over the past two years will continue this year and next year, but at a somewhat slower pace. It means that the piglet producers with an operating profit of DKK 400,000 this year will make more money than slaughter pig producers, and next year the difference will be even greater. The forecast calculates a quote of € 1.5 per kg and a price of € 51 on 30 kg pigs. This year the top third of the piglet producers will on average make a profit of € 200,000 next year, rising to € 220,000.

Business result and forecast for Danish pig production in € 1,000
  2010 2011 2012 2013
Piglets -17 -10,4 95 76
Slaughter pigs 12 30 44 58
(Source, Landbrugsavisen)

DanBred International changes company structure

DanBred International, which for 40 years has sold DanBred breeding stock all over the world, changed the company from a selling association into a public limited company. The company has also changed its name from Sales Association DanBred International to DanBred International A / S. The company's objective is to sell DanBred breeding stock, breeding management tools and production optimization concepts for running and developing professional pig production on markets outside Denmark.
(Source, Landbrugsavisen)

Danish slaughterhouses - payments week commencing 02 April 2012
Slaughterhouse Danish Crown Tican
Slaughter pigs (70.0-86.9kg)
Difference to last week
Euro 1.428
+0.027
Euro 1.428
+0.027
Sows (above 129.9kg)
Difference to last week
Euro 1,068
+0.027
Euro 1,068
+0.027
Boars (above 109.9kg)
Difference to last week
Euro 0.935
+0.027
Euro 0.935
+0.027

France

Squeezed processors

French retailers have seen the sales of large pork cuts decreasing to the benefit of more convenient processed products. Large cured or half cured cuts used in French traditional recipes do not attract modern consumers who are after convenience speed and innovation. Sales of traditional cuts decreased by 13.1% for semi-cured cuts within the last 4 years and pork “palettes” (or shoulder of pork) which use to lead the market lost 16.1% market penetration during that same time. Besides, sales of fresh sausages, one of the cheapest product on offer, increased by 7.3% between 2008 and 2011 without gaining one point of penetration by simply by increasing the volume per purchase by 3.9%. Today shoppers try to save money on every food item. Processors are squeezed between increasing price of raw material and increased demand for cheaper processed products: a difficult equation to solve.

Pork

The balance of French market should be confirmed this Thursday in Plérin. Our basic price should be stable due to a moderate offer and firm European prices, higher than in France. The buyers could wait until the end of the Easter week-end to buy again. They could see more easily the orientation of the purchases of the households.

Cuts

Some operators note that orders are better, due to the Easter week-end. Sales for most cuts should be higher, in particular for the best cuts. Altogether, they are not waiting for any evolution of prices in the short term.

Pork prices RUNGIS week commencing 02 April 2012
Cut name Price range (Euro/kg)
Back fat, rind-on 0.70
Trimmings 1.45
Leg 2.25
Loin including chump 2.95
Loin excluding chump 2.57
Belly extra without trimmings 2.59

Germany

Market

The trade with pig meat before the Easter holidays was very disappointing and did in no way meet expectations. Slightly increased prices could only be achieved for hams, collars or loins while the trade with shoulders and bellies was subdued. Sow meat was marketed well.
(Source, AMI)

End of restrictions

At the Standing Committee on the Food Chain and Animal Health (SCoFCAH) in Brussels, animal health experts from all 27 EU Member States unanimously agreed on lifting animal health control measures relating to classical swine fever in Germany. The few remaining restrictions due to the classical swine fever situation in wild boar in certain limited areas of Rhineland-Palatinate and North Rhine-Westfalia in Germany are now repealed. Therefore, dispatch of pigs from Germany will no longer be subject to any restriction. This represents an important achievement in disease eradication as this is the first time since the internal market was established in the early '90s that no restriction applies to Germany.
(Source, BPEX)

Pork Prices Hamburg Market week commencing 02 April 2012
Cut Name Price range (€/kg)
Round cut leg 2.12/2.25
Leg (boneless, rindless max fat level 3mm) 2.98/3.20
Boneless Shoulder 2.58/2.65
Picnic Shoulder 2.05/2.25
Collar 2.60/2.70
Belly (bone in, ex-breast) 2.35/2.45
Sheet Boned Belly (rindless) 2.00/2.30
Jowl 1.50/1.60
Half Pig Carcasses U class. 2.10/2.20

Spain

Pork prices Barcelona Market Week commencing 02 April 2012
Cut Name Price range (€/kg)
Carcasses (secondary grade) 1,703/1,709
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 2,42/2,45
Cooked Ham 2,05/2,08
Rindless Picnic Shoulder 1,63/1,66
Belly 2,05/2,08
Smoked Belly with Spare Rib Section Cut off 2,52/2,55
Shoulder chap or Head Jowls 1,18/1,21
Back Fat, rindless 1,08/1,11

The Netherlands

“Without Russia, no high price”

...says Marc van Rooi from the eponymous pork processor in an interview. The second largest pork processor now slaughters 45,000 pigs per week and relies more and more on export. It ships pork directly to China since November. Mr. Van Rooi also mentions that pigs with the welfare standard 1* Better Leven cost € 8-10 to produce and this proves difficult to recoup from Dutch retailers.
(Source, Boerderij Vandaag)

Topigs

The genetic group produced 320,600 gilts in 2011, slightly less than in 2010.

Video surveillance of abattoirs

Although farming Minister Hans Bleker has declared to be favourable, major players like Vion and Van Drie are against and describe the idea as “emotive”.
(Source, Boerderij Vandaag)

Belgium

More pork in 2011

The number of pigs slaughtered in Belgium has increased continuously for 32 years. In 1980, some 7.9 million pigs were slaughtered and in 2011 11.8 million.

Russia

Modern pig-breeding complex to be built in Cheliabinsk oblast

In the near future the Russian meat-processing corporation Romcor will start the construction of a pig-breeding complex that will comply with modern standards on the international level. The cost of the project will be RUR 6 billion (USD ~205 million). The project consists of four phases. Each of the phases includes the construction of a nucleus for 2520 sows and a fattening complex for 62,500 pigs. The construction will start in June 2012. The annual production capacity of the enterprise is estimated at 7,600 tonnes of meat in live weight. This pig-breeding complex will be equipped with modern equipment mainly of Austrian origin.
(Source, Meatinfo.ru)

Imported Pork Moscow Market (April 3): Imported Pork St.Petersburg Market (April 3):
Leg (no bone): USD 6.2/kg Loin: USD 6.5 /kg
Leg (with bone): USD 4.7 /kg Leg (no bone): USD 5.6/kg
Heart: USD 3.2/kg (Source, Meatinfo.ru) Liver: USD 1.87/kg (Source, Meatinfo.ru)

Ukraine

Pork imports increased

During January-February 2012, the volume of pork imported to Ukraine (13,633 tonnes) was 2.3 times more than during the same period in 2011. Pork was mainly imported from Germany, Brazil and Poland. Due to the decreasing number of pigs in Ukraine, the average price is increasing. Thus, as of March 23 the purchase price for pork was USD 2,227/t (2% more than in February 2011 and 41% more than as of the same date in 2011). According to the forecasts of experts, the volume of exported pork is likely to keep growing. Due to the low purchasing ability of the Ukrainian population, the pork imported is mainly of lower quality categories. At the same time Ukraine exports pork of higher quality categories. The total amount of exported pork during January –February of 2012 amounted to 3,696 tonnes.
(Source, Pigua.info)

7 pig-breeding complexes received UAH 300 million from government

In 2011, 7 Ukrainian pig-breeding complexes received UAH 300 million (USD ~ 37 million) from the State budget as a part of implementing the “Partial compensation of construction and reconstruction expenses to animal-breeding farms and complexes and feed production plants” budget program. Recipients of the funding were: Private JSC APK-INVEST (UAH 45,8 million), Halychyna-Zahid LLC (UAH 37,6 million), SP Valiava LLC (52,2 million), Ahro-Oven (UAH 30,8 million), Artem-Ahro, Private JSC AK Slobozhansky and one more enterprise.
(Source, PigUa.info)

Greece

Stable imports

The country imported € 379 million of pork in 2011 (+7.5%) with no real change in volumes. Beef and sheep meat imports were also stable. As discussed in bulletins passim, meat consumption remains relatively unscathed.
(Source, Meat Place)

Romania

Changing production

Between 2005 and 2010, pig production has fallen from 5.873 million heads to 5.254 million. However, the interesting bit is the changing pattern of production. On farm slaughter fell from 2.831 million to 1.640 million. The number of pigs sold at markets fell from 1.186 million to 839,000. On the other hand, the number of pigs sold to licensed abattoirs rose from 1.885 million to 2.773 million.
(Source, Industria Carnii)

Thailand

Pork prices to rise

According to Internal Trade Department Director-General Watcharee Wimuktayon, the newly-appointed committee tasked with overseeing the pork pricing system will call a meeting next week. Live pigs are sold forTHB55 /kg (approx. £ 1,12/kg) with a breakeven production cost estimated at THB62 /kg (£1,26). At some markets, pork is offered at THB120-130 /kg despite the fact that the control price is between THB 105 and 110. In its medium-term solutions, the Internal Trade Department is seeking an allocation of THB1.5 bn. in the 2013 budget to stabilize prices of major agricultural products including pork, palm oil and eggs. Producers have called for market freeing.
(Source, various)

Korea

Quotas still undecided

Talks between farming organisations and government regarding the quotas for tariff-free imported pork are at stalemate with the unions threatening to cause havoc with pork supplies. The Government proposes a quota of 70,000 tonnes.
(Source, Korean Times)

The Philippines

Pork imports down

The country imported 131,952 tonnes in 2011 (-11%) including 50,000 tonnes of pig offal, with pork cuts, fats and rinds the remainder. The USA and Canada were the main providers. However, wet markets still represent 80% of pork sales.
(Source, Asian Meat)

China

Best buys Canadian

Best Genetics (Monita Mo) has purchased 1,000 breeding pigs from Canadian breeder Genesus Inc.
(Source, Asian Pork)

Uruguay

Pork consumption up

Following a rise of 8% in 2011, pork consumption is expected to rise by a further 12% in 2012. Although, the Uruguayans remain massive beef eaters, pork is getting more common.
(Source, Brazilian Meat)

USA

Loss of competitiveness

Quebecois expert Michel Morin speaking at a French conference asserted that US pork production is losing competitiveness and is hit by falling margins due to higher relative feed costs, increases of labour costs and the higher US$.
(Source, Porc Magazine)

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