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AHDB Pork Weekly Export Bulletin


24 February 2014

BPEX Export Bulletin - Week 8BPEX Export Bulletin - Week 8

A third case of African Swine Fever (ASF) was detected in a dead wild boar in Poland, near the Belarus border.
British Pig Executive Weekly Export Bulletin

Restrictions have been put in place for the municipalities concerned. Fortunately, the region in question, the Podlaskie Voivodeship, is heavily wooded and counts few pigs. Polish authorities have tested some 13,000 wild boars for ASF over recent months. With the three cases detected very near the Belarus border, EU Health Commissioner Tonio Borg argued that the findings indicate that the outbreak did not occur on EU territory.

The European Commission will again meet Rosselkhoznadzor on 24 February to supply further information, particularly on the spread of ASF in wild boars. Meanwhile, Rosselkhoznadzor says they will abide by the 2006 regionalisation bilateral agreement, based on OIE principles but claim that the EU failed to consult Russian experts before putting in place “inadequate” regionalisation measures in Lithuania. Meanwhile, EU experts are now worried about an ASF reservoir in Belarus as testing is limited. In a separate development, Chief Veterinary Officers from France, Denmark, the Netherlands and Lithuania visited Sergei Dankvert in Moscow, breaking ranks from the European Commission efforts to end the ban, so far unsuccessfully.

The ban has already had an effect on European pork prices, with prices falling by €c7 in the first week of the ban. Denmark and Germany are the most affected with 155,000 tonnes of trade in 2013 (Jan.-Nov.), followed by Spain with 38,000 tonnes, the Netherlands with 27,000 tonnes, France with 24,000 tonnes and Poland 23,000 tonnes. Ireland exported 17,785 tonnes of pork to Russia in the same period.

For further news on ASF, click here.

According to the European Commission, EU pork production should rise 0.7% to 22 million tonnes this year, giving a self-sufficiency ratio of 109.1.

The new EU promotion policy aims at opening up new markets and simplifying administrative procedures. Under the reform, the EU budget for promotion should increase from €61m in 2013 to €200m in 2020. The review also seeks an increase in the number of programmes aimed at third countries and multi-country programmes (programmes represented by organisations from several Member States) through a higher co-financing rate for these two categories: 60% of EU co-financing instead of 50% currently. Eligible beneficiaries of promotion programmes would now also include producer organisations, whose structure is encouraged in the CAP reform. Administrative procedures should be greatly simplified, as selection will take place in one phase at the Commission, rather than in two phases at the Member State and then the Commission, as is currently the case.

HMRC data released this week reveals that UK pig meat exports in 2013 totalled 179,000 tonnes, 16% higher compared with 2012 shipments. At this level, export sales accounted for 27% of total UK pork production. Exports to China and Hong Kong were 34% higher on the year and accounted for nearly a quarter of the total export market. Click here for latest export statistics.

Russia

Meat industry request ban removal

It is not only the EU meat industry that has a clear interest in a lifting of the ban on imports of pig meat from the EU. The Russian meat industry has urged Putin to take action in the conflict with the EU. In an open letter to the Russian president, the chairman of one of the largest Russian sausage producers writes that at present there is a catastrophic shortage of raw material for the meat industry. In some regions, prices of pig meat have increased by up to 70%. In general, Russian prices of pig meat are estimated to have increased by between 15% and 20% due to the crisis.
(Source, Markedsnyt for Svinekoed)

France

Gad

The continuation plan suggested by the ex-executives of GAD has not been approved by Cecab, still the major shareholder of Gad, and is now in the hands of Guillaume Garrot, the delegate Minister responsible for Agrofood matters.

Monique Piffault and Jean Caby

By selling two sites to Monique Piffault: one in Lampaul Guimiliau producing cooked ham with 500 staff and one in Ergué-Gaberic producing lardons and joints with 200 staff, Jean Caby will be able to build a new factory. Their cocktail sausage factory based near Lille (Saint-André-lez-Lille) would close down and be replaced by a new factory. French Minister Arnaud Montebourg supports the deal, providing jobs are maintained in Britanny by Monique Piffault and in the North of France by Jean Caby.

Political turmoil

According to MPB (Marché du Porc Breton) the Russian ban on EU pork is a political matter and the French Minister Stéphane Le Foll is urged to open bilateral discussions with Russia as soon as possible. According to SNIV (French National Syndicate of the meat industry), Russia is the principal export market for French pig meat and presently a third of French production is under threat.

Markets

Pigs: Last week, all over Europe, it was a question of prudence. The decrease in prices was as marked in the South – in Italy (-€c5.6 in Modena) and in Spain (-€c2.6 on Lleida market), as in the North of the EU – in Germany (-€c2). Smaller decreases in Belgium (-€c1) and in the Netherlands (-€c4). It should be noted that the Danish price lost €c30 this week for the first time since the Russian embargo on Community meats.

Pork prices RUNGIS week commencing 17 February 2014

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.70
Trimmings 1.43
Leg 2.45
Loin including chump 2.97
Loin excluding chump 2.46
Belly extra without trimmings 2.60

Netherlands

IKB is ten years old

The basic Dutch pork quality system, created in 2004, must now compete with others such as GlobalGap.
(Source, Boerderij Vandaag)

Denmark

Danish exports of piglets to Poland stopped

Polish customers have started cancelling orders for Danish piglets, according to the large Danish piglet exporter SPF. It may develop into a serious situation for the Danish pig meat sector as Poland has been an important growth market for Danish piglets in recent years. Last year Danish pig producers exported more than 10m pigs.
(Source, Landbrugsavisen)

Farmers severely affected by Russian ban

Danish pig farmers may be seriously affected, explains the largest trader of breeding pigs to Russia, Porc-Ex. Currently, the impact of the ban is heavy pressure on the whole European market for breeding animals, he explains. Everybody is trying to sell breeding animals on other markets, making trading difficult. The worst scenario will be selling breeding stock as slaughter pigs with a losses of up to €120 per gilt.
(Source, Landbrugsavisen)

EU consider asking for help with WTO

According to Danish Minister for Food, Mr. Dan Jorgensen, Danish exports represent €300m out of the total EU exports of 1.35b annually. Should EU and Russia not be able to find a solution very soon, the Commissioner for health in EU, Tonio Borg, will not exclude taking the matter to the World Trade Organization, WTO. It is a violation of the WTO regulations but Tonio Borg is hoping to find a smoother solution through meaningful discussions.
(Source, Ritzau)

Markets

European markets remain under pressure due to the Russian situation, and prospects are that no quick solution can be found. Prices are falling on legs, shoulders and fore-end cuts. Exports to the British bacon market are slow; however, day to day trading is taking place at similar prices.

Danish Slaughterhouses - payments week commencing 17 February 2014
SlaughterhouseDanish CrownTican
Slaughter pigs (70.0 – 86.9 kg)
Difference to last week
€1.386
-0.040
€1.386
-0.040
Sows (Above 129.9 kg)
Difference to last week
€0.987
-0.054
€0.987
-0.054
Boars (Above 109.9 kg)
Difference to last week
€0.863
-0.054
€0.863
-0.054

Germany

Pig market to stabilise

After the second decrease in the recommended price, down to €1.50 per kg, the German pig market seems to be slowly stabilising. Demand and the availability of slaughter pigs is currently mostly in balance. However, one slaughter facility is paying a reduced price of €1.48 per kg and seeking to reduce the price further. Market participants remain concerned by the ongoing Russian embargo. Nonetheless, domestic sales have started to increase and additional product is being partially redirected to other markets such as Asia. As a result, an unchanged quote should be realistic.

Pork Prices Hamburg Market Week commencing 17 February 2014
Cut namePrice range (€ / kg)
Round cut leg 2.05/2.25
Leg (boneless, rindless max fat level 3mm) 2.75/3.15
Boneless Shoulder 2.10/2.45
Picnic Shoulder 1.75/1.95
Collar 2.50/2.65
Belly (bone in, ex-breast) 1.95/2.25
Sheet Boned Belly (rindless) 1.85/2.25
Jowl 1.00/1.15
Half Pig Carcasses U class 1.88/1.98

Spain

Pork prices Barcelona Market Week commencing 17 February 2014
Cut namePrice range (€ / kg)
Gerona Loin Chops 2.38/2.41
Loin Eye Muscle 3.08/3.11
Spare Ribs 2.78/2.81
Fillets 5.33/5.36
Round Cut Legs 2.78/2.81
Cooked Ham 2.57/2.60
Rindless Picnic Shoulder 1.69/1.72
Belly 2.18/2.21
Smoked Belly with Spare Rib Section Cut off 2.61/2.64
Shoulder chap or Head Jowls 1.15/1.18
Back Fat, Rindless 0.60/0.63

Poland

Record pork exports

Pork exports rose by 19% in 2013 to 438,000 tonnes. While the EU still represents 55% of exports, China with 53,000 tonnes now accounts for 12%. Belarus and Russia remain major markets with, respectively, 42,000 and 36,000 tonnes. Poland still has a sizeable deficit with imports up 1.4% to 604,000 tonnes. The main suppliers are Germany with 178,000 tonnes, followed by Belgium with 133,000 tonnes and Denmark with 131,000 tonnes. This new data makes clear that the deficit is narrowing and Polish processors have made some string gains in Third Countries.
(Source: Polish Statistics)

Poland wants EU compensation

In an open letter to Poland’s Prime Minister, the Polish meat industry has expressed its fear that it will be necessary to reduce jobs due to the current pressured situation. The Polish government, through the Minister for Farming, has promised to contact EU in order to ask for compensation for the exporters’ losses.
(Source, Landbrugsavisen)

Hungary

PRRS free?

The Hungarian government aims to eliminate PRRS. From 1 February, seven provinces from the North must produce PRRS-free pigs. This measure contravenes free trade principles, says the Dutch government.
(Source, Boerderij Vandaag)

Ukraine

ASF in Luhansk region

A new site of African swine fever has been detected in the Luhansk region. To prevent the spread of ASF, the authorities imposed quarantine in the territory and established the danger restricted area of 3km radius. Until the quarantine is lifted from the first restricted area, it is prohibited to sell pork and pork products in the markets and hold events that involve transport and gathering of pigs.
(Source, pigua.info)

China

Chinese wholesale prices week commencing 17 February 2014

 Price (RMB/Kg)£/KgChange on week
Pig Carcases 19.32 1.90 -2.91%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities

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