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AHDB Pork Weekly Export Bulletin


31 March 2014

BPEX Export Bulletin - Week 13BPEX Export Bulletin - Week 13

Pork exports in January were up year-on-year a healthy 15% to 15,700 tonnes, with China (+44% to 2,400 tonnes), Hong Kong and the Philippines showing good progress.
British Pig Executive Weekly Export Bulletin

On the other hand, offal exports (-31%) and sausages (-21%) are disappointing. Exports of cured meats are rebounding. EU exports in January are also up by 12% to 130,900 tonnes and offal 1% up at 87,000 tonnes. However, for the full year 2014, France Agrimer predicts a fall of EU pork exports of 9.9% due to the Russian crisis.

The European Commission has at last unveiled its support package for Polish pig farmers from ASF affected areas, providing 50% of the funding with Poland and the other 50%. The support for pig and sow carcases amounting to €35.7 per 100 kg pig carcase (subject to revision) is valid for animal slaughtered from 26 February to 26 May to a maximum of 20,000 tonnes. This means the package is worth €7 m.

PEDv is affecting 60% of US, 28% of Mexican and as yet an unknown number of Canadian breeding herds. Rabobank is predicting a decline of slaughter number of 7% in 2014 and 12.5% in 2015 against 2013, the largest drop in production for more than 30 years. Prices this week remained very high in USA and Canada.

Denmark

Tönnies expands in Denmark

German Tönnies Fleisch is now expanding so fast that it poses a real threat to Danish slaughterhouses. In 2013 Tönnies’ Danish subsidiary Brørup increased slaughter numbers by 15% to almost 1.5m pigs. Now the company is the third largest in Denmark in terms of throughput. Brørup, which Tönnies bought in 2005, has applied for environmental consent to expand weekly production by a further 20% to 36,000 heads.
(Source, JyllandsPosten)

Market

On European markets both fresh legs and other cuts are sold, by and large, at unchanged prices. The British bacon market is stable, increased price levels are expected for the upcoming April contracts. As to third-country markets, demand is stable from Asian markets. Increased interest from the US market is noted, following strong increasing in US prices.

Danish Slaughterhouses - payments week commencing 24 March 2014
SlaughterhouseDanish CrownTican
Slaughter pigs (70.0 – 86.9 kg)
Difference to last week
€1.386
+0.027
€1.386
+0.027
Sows (Above 129.9 kg)
Difference to last week
€1,000
+0.027
€1,000
+0.027
Boars (Above 109.9 kg)
Difference to last week
€0.876
+0.027
€0.876
+0.027

France

Ready prepared meals at Cooperl

The recent investments of Cooperl (€40m in 2012 and €50m in 2013) are clearly targeting the prepared meals sector. Some €6m have been invested in the recently acquired (from Bigard) site of Lamballe in Brittany, where 3,000 sqm are already dedicated to fresh, IQF and frozen prepared meals. Cooperl has undertaken several trials and are planning to produce 1,500 tonnes in 2014 of pork based products such as stir-frys, sautés, skewers, tapa.The Lamballe site can produce up to 3,000 tonnes but the group’s objective is 10,000 tonnes per year. Ready prepared meals will be labelled Cooperl or will use retailers’ own brands.

Market data for week 12

Slaughter pigs: The price of slaughter pigs continued to improve Monday in Plérin, supported by modest offers (less than 8,000 pigs); prices gained 0.5 cents above the base price. Trade for cuts is relatively quiet this week, which makes it difficult to determine prices.

Piglets: The market remains fluid. Following the price movement of slaughter pigs, weaner prices have maintained their upward trend in week 12, rising 1.06 cents for 25 kg and 6 cents for post weaning.

Cuts: Unsurprisingly activity early this week does not appear euphoric in the eyes of the operators. No progress can be noted in exports and domestic market flows for cuts are limited. In this context it makes the increase in charcuterie pork prices difficult to pass on to the butchers.

Pork prices RUNGIS week commencing 24 March 2014

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.50
Trimmings 1.34
Leg 2.54
Loin including chump 2.99
Loin excluding chump 2.53
Belly extra without trimmings 2.67

Netherlands

New board for Vion

Vion CEO Michel Herkemij has announced the composition of the new board, which will operate from 1 April. Among the new names featured Godert Tegelberg, Chief Operating Officer Business Unit Pork, Bernd Stark, Chief Operating Officer Business Unit Food Service and Bernd Stange, Business Unit Beef.
(Source, Vion)

Animal welfare overkill

With publicity from the Wakker Dier animal welfare lobby group omnipresent on the radio, this has led twitter comments such as “Consumer is Wakker Dier spuugzat” (the consumer is fed up with Wakker Dier). Wakker Dier is subsidised by the Dutch National Lottery.
(Source, own)

Spain

Record pig production

The value of pig production for 2013 reached a record at €6.273bn. This figure represents more than 39% of the final livestock production and 14.2% of final agricultural production.
(Source: diariodegastronomia)

A new tax increase would seriously threaten the viability of the meat sector

Livestock and meat organisations are showing their opposition to the possible increase in VAT that is being considered in the announced reform of the Spanish tax system, in which many products currently on reduced VAT of 10% such-as meat – would be taxed with the general VAT of 21%.
(Source: ediporcguia)

Investments

Tello is investing €2m in its plant in Toledo. Exports are up 38% to €17m. Jamones Volatín is investing €4m in a new plant, also in Tudela (Navarra). Exports represent 50% of turnover for the firm.
(Source, Alimarket)

Interporc congress

The white pig interprofession held its first congress under the Presidency of Clemente Loriente. Subjects discussed include R&D, particularly on pig health and exports. A new consumer campaign was unveiled under the slogan “Pork, our richer white meat”.
(Source, Eurocarne on line)

Pork prices Barcelona Market Week commencing 24 March 2014
Cut namePrice range (€ / kg)
Gerona Loin Chops 2.48/2.51
Loin Eye Muscle 3.23/3.26
Spare Ribs 2.88/2.91
Fillets 5.33/5.36
Round Cut Legs 2.88/2.91
Cooked Ham 2.57/2.60
Rindless Picnic Shoulder 1.67/1.70
Belly 2.14/2.17
Smoked Belly with Spare Rib Section Cut off 2.57/2.60
Shoulder chap or Head Jowls 1.12/1.15
Back Fat, Rindless 0.63/0.66

Italy

Still, disagreements between producers and abattoirs

After years and years of debate, the deadweight payment of Italian pigs is still under question despite the crisis that is affecting production. The Commissione Unica Nazionale has been unable to put a floor on prices and is divided regarding its future. Meanwhile, the producers’ association¸ Assosuini, has demonstrated that the cost per pig of the use of Autofom for an abattoir slaughtering 10,000 pigs per week would be €0.21 per pig.
(Source, Rivista di Suinicoltura)

Germany

Falling demand for slaughter pigs

Following the decrease of the recommended price to €1.55 /kg, the German pig market started to stabilise at the start of the week. However, demand from slaughterers has eased, while the availability of pigs increased slightly. In some German regions, pig supplies were greater than current demand resulting in some pressure on prices. In contrast, the meat market is reported to be more active than a week ago, with improved sales. In addition, the barbecue season is anticipated to start within weeks. Overall, a stable price seems slightly more realistic, although a small decrease cannot be ruled out. Commencing next week (2 April), the VEZG will announce the recommended price on Wednesday at 2pm. Currently, the price is announced on Friday.
(Source, own)

Competition for Tönnies

PINI , the Italian concern with a strong presence in Italy and Poland, is planning to invest in a mega-abattoir with line speed of 1,000 pigs per hour and 2,500 staff. The plant in Bernburg near Magdebourg will have good motorway access. At this stage, plans are backed by local political leaders.
(Source, Fleischwirtschaft)

Pork Prices Hamburg Market Week commencing 24 March 2014
Cut namePrice range (€ / kg)
Round cut leg 2.20/2.35
Leg (boneless, rindless max fat level 3mm) 3.00/3.25
Boneless Shoulder 2.30/2.50
Picnic Shoulder 1.90/2.10
Collar 2.75/2.90
Belly (bone in, ex-breast) 1.950/2.25
Sheet Boned Belly (rindless) 1.90/2.25
Jowl 1.00/1.15
Half Pig Carcasses U class 1.93/2.03

Poland

Agriculture Minister resigns after ASF response

Stanislaw Kalemba has resigned following the failure to implement the promised financial help to affected pig farmers. Prime Minister Tusk is now taking personally charge of the dossier and has negotiated the above support package with the European Commission.
(Source, Agra Europe)

Still fewer breeding pigs in Poland

The number of breeding pigs in Poland keeps falling. The December census shows a drop of 6% of numbers.
(Source, EC)

Tican makes a profit in Poland

The Tican subsidiary in Poland, Nove, has incurred losses since being established in 2005. However, due to higher efficiency and better capacity utlisation, the company is now profitable. It tables for a doubling of profits and revenue growth of 15% in 2014.
(Source, Borsen)

Russia

Pork imports

Russia wants to start importing pork from China and increasing imports from Brazil, says Alexei Alekseenko of Rosselkhoznadzor. It has also allowed imports of US pork from Chinese-owned Smithfield Foods.
(Source, various)

Russia's meat industry needs meat imports

Russia's meat industry is highly dependent on meat imports and Brazil could be the big winner of the current tussle. According to official information from the Russian Ministry of Agriculture, the meat industry is already experiencing difficulties due to the EU ban, which has led to raw material shortages and price increases of between 20% and 25% since the New Year. Some 67% of the meat consumption in Moscow is imported, with approximately 40% from NATO countries and Brazil already supplies about 20% of the supply of meat to the Moscow area. Sergei Dankvert is also considering the invitation from Chinese authorities.
(Source, GlobalMeatNews)

Rosselkhoznadzor establish Crimean division

Aleksey Alekseyenko, Deputy Head of Rosselkhoznadzor has announced the formation of a division responsible for Crimean veterinary and phytosanitary control. The Crimean branch will include 166 staff.
(Source, dairynews.ru)

Ukraine

The conflict in Ukraine is expensive for pig producers

Russian trade restrictions are costing pig farmers (these include Danish and other investors) millions of Euros every week. The Russian import ban has resulted in falling prices, this week slaughterhouses are paying €1.386 /kg. It is estimated, without the Russian import ban the quote would be at least €1.53 per kg, according to Danish Food and Agriculture’s chief analyst, Karsten Flemin, which equates to losses of approximately €5.3m per week.
(Source, Ritzau)

USA

Merger of NAMA and AMI

The North American Meat Association and the American Meat Institute are to merge, a welcome move for the fragmented US industry. Incredibly, two ladies (Scottish-born Rosemary Mucklow and Etta Reyes) have managed NAMA in its different guises since 1962, then the Pacific Meat Exchange.
(Source, NAMA conference)

PEDv meeting

More than 60 people representing the US and Canadian pork, feed and other allied industries recently participated in a meeting on porcine epidemic diarrhoea virus (PEDv) hosted by the National Pork Board and in collaboration with the National Pork Producers Council, the American Association of Swine Veterinarians and other associations in Des Moines, Iowa.
(Source, Pig Site)

Canada

PEDv toll

In common with US plants, Ontario’s pig abattoirs are now running four days per week due to the shortage of pigs and PEDv.
(Source, own)

Dominican Republic

First case of PEDv

The Dominican authorities have detected the first case of the PEDv in the country.
(Source, Eurocarne on line)

Thailand

Thai pig abattoirs

There are 694 pig abattoirs in Thailand out of a total of 1,712 slaughtering facilities. In total, 62% of them are certified by the State (DLD). This includes 100% of export-approved plants. The number includes privately owned plants and abattoirs operated by local authorities. A draft bill has been put before Parliament to modernise the 1992 regulations that govern the sector. It will give a deadline of five years to upgrade the plants and will increase the slaughter hygiene levy.
(Source, Asian Meat)

Betagro expansion

The major Thai groups plans to increase its production base from 100,000 sows at the moment to 140,000 by 2020 says President Vasit Taepasitphongse.
(Source, Asian Pork)

China

Tianli’s black pigs

Wuhan-based Tianli Agritech sells 150,000 conventional breeding pigs from its 10 breeding farms. It also planning to market the pork from the offspring of the 20,000 black breeding pigs produced each year under the Tianli-Xiduhei brand. These pigs are crosses of (Hubei White x Enshi Black) x Berkshire. It is also working with local supermarkets and restaurants. The firm claim an intramuscular fat content of 4.5%, a colour score of 4 and a pH 24 of 6.49. Live slaughter weight is 100-110 kg and FCR 3.2 for an ADG of 600-650g/day. In total, Hubei pigs represent sales of about £1.5m. or 9% of total sales for 2013.
(Source, Asian Meat)

Investments

Wens plans to invest £35m to build a breeding base of 20,000 sows with an annual capacity of 400,000 live hogs for slaughter. The 500,000 pigs integrated project of Chiatai Group started in Jinsha county, Guizhou province. The project will invest £250m, the first and the second stage of the project include establishing one 3,000 sow breeding farm, eight 10,000 pig fattening units. The annual capacity of pigs for slaughter is 68,000 heads. The third stage of the project includes feed production, slaughter and meat processing. In addition, Chiatai Group planned to build slaughtering and feed enterprises in Hengshui, Hebei province.
(Source, CAG)

Shanghui imports

Shuanghui began importing large quantities of pork after acquiring Sminthfield. In mid-March, 325 tonnes of frozen pork with bones imported by Shuanghui arrived in Ningbo port. Shuanghui plans to import about 3,500 tonnes of frozen pork with bones through Ningbo port by end of April. In 2014, Shuanghui will import £330m worth of pork from Smithfield.
(Source, CAG)

Chinese wholesale prices week commencing 24 March 2014

 Price (RMB/Kg)£/KgChange on week
Pig Carcases 17.73 1.72 -2.37%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities

Vietnam

Hoc Mon pork market

The Hoc Mon wet market supplies about 55% of the pork for Ho Chi Minh City. The market that starts at 2am trades 450 tonnes per day of pig carcases, cuts and offal. Carcases are hung in a 1,500sqm covered trading floor offered to hundreds of retailers in smaller wet markets across the city. There are also special areas for offal and cutting. This market, unique in Vietnam, has operated since 2008 and testifies to the Vietnamese preference for warm meat.
(Source, Asian Pork)

New US imports

Tam Ro from Dong Nai province has imported 126 GGP sows and 26 boars of Duroc, Landrace and Large White breeds.
(Source, Asian Pork)

Changing industry

Over the last five years, two million Vietnamese farmers have abandoned pig production, particularly over the last two years due to low prices. Prices this year have risen to £1.42 /kg LW. Still small farmers still represent 60% of pork production. Foreign investors include CP, Anco and San Miguel.
(Source, Asian Pork)

Indonesia

Overproduction

The devaluation of the rupee has led to increases of feed prices. Meanwhile, overproduction in Bali and Central Java has affected pig prices in 2013. Lower stock has now led to a recovery with prices of £1.06 /kg LW in Bali and £1.26 in Java, both over costs of production.
(Source, Asian Pork)

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