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AHDB Pork Weekly Export Bulletin


28 April 2014

BPEX Weekly Export Bulletin - Week 17BPEX Weekly Export Bulletin - Week 17

The outcome of our large participation to Food & Hotel Asia in Singapore exceeded expectations with all participants reporting brisk business, distribution agreements and firm orders. Fourteen English meat exporting companies attended the show with 10 booths on the Great Meat pavilion.
British Pig Executive Weekly Export Bulletin

Exports for January and February are up a healthy 7% to 29,753 tonnes. Pork was exported to 48 destinations with steady volumes. Among the star performers feature Italy with 1,168 tonnes and the USA with 545 tonnes. On the other hand, no export was recorded to Hungary and the Czech Republic, and export in February fell by 1% year on year, the first decline since July 2012. Lower pork exports to China in February (-18%) explain the shortfall. While offal exports to the Continent are sharply down, sausages exports probably had their best month ever at 1,700 tonnes.

The 10th EBLEX Export Conference on 25 June will include a short review on pork exports. It will be opened by our Minister George Eustice MP. For more details and booking a space, please contact Claire Sayers-Smith

Belgium

Record Exports

Strong performance in Central Europe (Poland, Czech Republic, Lithuania) helped Belgian pork exports reach a record 762,809 tonnes. However, the high proportion of carcases still represents an issue. The Russian ban (15,591 tonnes exported in 2013) will affect trade this year, particularly as this includes indirect exports through Poland and Lithuania.
(Source, Agra Europe)

New marketing campaign

The Belgium Meat Office (VLAM) has initiated a new marketing campaign to promote pork in Belgium. This coincides with the current export difficulties to Central and Eastern Europe. They will use financial reserves and boost the existing campaign “Varkensvlees van bij ons” (Pork from here). Regarding export promotion, VLAM will participate in SIAL Shanghai, CIMIE Beijing and the organisation expects an inspection from Cuban veterinary authorities.
(Source, Boerderij Vandaag)

France

Own brand sausages

Own brand sausages account for 10% of butchery shelf offers and play an important role for supermarkets. Leclerc and Carrefour have more than 12 different own brand sausages, starting economy chipolatas retailing at €4.12 per kg at Leclerc and €6.06/kg at Carrefour (more than 50% difference!). The classic range includes the standard “chipo” improved with the additional herbs and the chipolatas range is completed by the traditional merguez spiced sausage. The third product of the segment is the higher-quality thicker Toulouse sausage (Cora includes a Label Rouge offer) with a range of seasoning selling for as much as €10.00 per kg. Smoked sausages are also joining the range. Increased competition now comes from poultry sausages which are taking more space on the French supermarket shelves.

World Cup

Now the sunshine is coming back in France, BBQ and Plancha ranges are filling the grilling product ranges. Also, the football World Cup has become a source of inspiration for French processors. Cooperl is launching a range of spare ribs, including a marinated version with Brazilian flavours. Other operators including Tradival, Maître Coq and Maître Jacques are also following the trend.

Markets

Pigs: In the northern EU, the pig market showed two trends, stability and easing prices last week. Over the Easter holiday period demand was low in Belgium where prices eased €c3 and in Germany prices lost €c5. Prices in the Netherlands and Denmark were stable.

Piglets: Prices are still stable or slightly higher due to limited offers and firm demand. In the Netherlands, prices gained €1 in Vion, they were stable in Denmark, Belgium and Spain.

Pork prices RUNGIS week commencing 21 April 2014

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.50
Trimmings 1.35
Leg 2.57
Loin including chump 3.20
Loin excluding chump 2.75
Belly extra without trimmings 2.85

Denmark

Markets

Restricted US production, due to the PEDv outbreak, has resulted in reasonable demand for some cuts on Asian markets that would have been destined for Russia prior to the current EU ban. The start of the traditional BBQ season, in markets such as Germany, is predicted to improve demand on some Danish export markets. However, fresh legs are currently traded at marginally lower prices on EU markets. Exports to the UK bacon market are reported as stable.

Danish Slaughterhouses - payments week commencing 21 April 2014
SlaughterhouseDanish CrownTican
Slaughter pigs (70.0 – 86.9 kg)
Difference to last week
€1.413
unchanged
€1.413
unchanged
Sows (Above 129.9 kg)
Difference to last week
€1.000
unchanged
€1.000
unchanged
Boars (Above 109.9 kg)
Difference to last week
€0.876
unchanged
€0.876
unchanged

Germany

Improving demand

Demand for slaughter pigs increased as the week progressed, numbers were barely sufficient to meet demand, in addition, some facilities were sourcing pigs to slaughter over the Easter period. As a result, pigs can be sold easily in most regions and the recommended price increased by €c2 to €1.60 per kg. Improving temperatures are resulting in higher demand for barbecue meat, especially necks and meat for sausage production. Next week’s long weekend will drive additional demand with increased BBQ activity all over Germany.

Pork Prices Hamburg Market Week commencing 21 April 2014
Cut namePrice range (€ / kg)
Round cut leg 2.30/2.40
Leg (boneless, rindless max fat level 3mm) 3.15/3.30
Boneless Shoulder 2.40/2.50
Picnic Shoulder 1.95/2.15
Collar 2.90/3.05
Belly (bone in, ex-breast) 2.00/2.25
Sheet Boned Belly (rindless) 1.95/2.25
Jowl 1.20/1.30
Half Pig Carcasses U class 1.96/2.06

Spain

Expats are leaving

Due to the difficult economic situation in Spain and other factors, such a tightening of property deeds, foreigners are leaving Spain. Nearly a quarter of registered Brits left the country in 2013 with numbers falling from 385,000 to 297,000. This is happening also to the Germans, down to 138,000 and the French, now with below 100,000 expatriates. If we extrapolate to the estimated number of British people living in Spain, this means a fall from 800,000 to 600,000 people. Obviously, demand for British food including pork products is expected to fall accordingly.
(Source, various)

Pork prices Barcelona Market Week commencing 21 April 2014
Cut namePrice range (€ / kg)
Gerona Loin Chops 2.73/2.76
Loin Eye Muscle 3.58/3.61
Spare Ribs 3.18/3.21
Fillets 5.48/5.51
Round Cut Legs 3.20/3.23
Cooked Ham 2.72/2.75
Rindless Picnic Shoulder 1.81/1.84
Belly 2.43/2.46
Smoked Belly with Spare Rib Section Cut off 2.86/2.89
Shoulder chap or Head Jowls 1.26/1.29
Back Fat, Rindless 0.78/0.81

Lithuania

EU support

Following Poland, the EU Livestock Management Committee adopted a Commission proposal for support measures for the Lithuanian pig meat market. Aid is now granted for the slaughter of piglets and adult pigs reared in the ASF affected areas. The aid is worth €30 per 100kg carcase (maximum weight) or €10.80 per piglet. The EU will co-finance this help to 50% for a maximum of 7,600 piglets and 700 tonnes of carcases.
(Source, EC)

Ukraine

European quotas

The European Commission has published the order allowing the temporary import of 40,000 tonnes of Ukrainian pork, including 20,000 tonnes under certain CN codes until 1 November 2014. This is rather theoretical as no Ukrainian pork plant has EU approval and Ukrainian pork prices are generally higher than EU prices. A new agreement will be negotiated in the meantime.
(Source, EC, UECBV, our comment)

Higher production

According to the Ukrainian State Statistic Service, pork production totalled 43,800 tonnes (liveweight) during March, 3.4% higher compared with February. During the January to March period, the total volume was 122,100 tonnes, up 16% year-on-year.
(Source, Pigua.info)

US$40m loan

The European Bank of Reconstruction and Development has agreed a loan of US$40m to 30 agricultural enterprises in the Ukraine. According to the Bank, the money will be used to finance the companies during the harvest period and support grain export operations over the following three seasons. In 2013, the Bank invested over US$160m in Ukrainian agriculture and, despite the political crisis, is not decreasing the amount to be invested.
(Source, Piua.info)

Russia

ASF ban developments

Some 35 tonnes of smuggled Polish beef fat and 41 tonnes of Spanish offal have been seized by Russian authorities. A Rosselkhoznadzor report of a meeting with the Russian meat industry indicates that the major pork producers are pleased with the ban which should help accelerate their growth. Meanwhile, Anatoly Kosinski, Chairman of the National Association of Meat Processors said that production of meat products had fallen between 7 and 15% and that 10% of processors could cease operations. Sergey Yushin of the National Meat Association retorted that “this would not necessarily be bad for the industry” and would contribute to the consolidation and improvement of the Russian meat sector.
(Source, Agra Europe)

Now, CSF

An outbreak of Classical Swine Fever has been detected in three wild boars in the Amurskaya Oblast near the Chinese border.
(Source, OIE)

Belarus

Belarus import ban

Belarus introduced a ban on pork imports from the Latvian regions of Dagda, Kraslava and Zilupe after Classical Swine Fever cases were registered. The ban covers pork and pig meat products and feed materials of animal and vegetable origin that have not been heat treated. Used slaughter and processing equipment is also covered by the ban.
(Source, agroperspectiva.com)

Canada

Telling bankruptcy

Quality Meat Packers, a major pig abattoir in Toronto founded in 1923, has filed for bankruptcy. The company has not resisted the current increase of hog prices.
(Source, Meat & Poultry)

USA

New diarrhea disease adds to PEDv worries

Some 29 outbreaks of a new disease Novel Swine Enteric Coronavirus (SECoV) have been detected. This new disease combines the existing Porcine Epidemic Diarrhea virus (PEDv) with the Porcine Delta Coronavirus (PDCoV). Mortality in piglets is very high but not so in adult pigs. Piglets suffer diarrhea and vomiting with a mortality of 50 to 100%. Meanwhile, USDA has announced that coronavirus is now a notifiable disease and has imposed movement controls. Affected producers will also have access to emergency loans.
(Source, OIE, National Hog Farmer, various)

Pro- and against GMOs

The state Senate of Vermont passed (by a decisive 28-2 vote) a law for mandatory labelling of foods containing GMOs. This is a very hot subject for which food manufacturers have lobbied hard to make GMO label legislation solely a federal mandate - without individual states making their own GMO label rules, as happened earlier in California when a huge lobby campaign turned voters to a narrow "No" result.
(Source, Feedstuffs)

Mexico

Rabobank predicts severe consequences of PEDv epidemic

According to Rabobank analysts, production in Mexico should fall by 9.7% this year or by 1.6m slaughter pigs. Imports should rise from 775,000 tonnes to 883,000 tonnes. Exports are predicted to fall by 10,000 tonnes to 100,000 tonnes and consumption shrink by 300g to 16.3 kg per head. This information sharply contrasts with the official line on the effect of PEDv.
(Source, Rabobank)

Colombia

PEDv

The first case of PEDv in South America is thought to have occurred in Colombia.
(Source, Boerderij Vandaag)

China

Prices are still falling

Pork prices have still not found a bottom, reaching £1.14 kg liveweight during the second week of April. This is the lowest since July 2010 and down 28% since the beginning of 2014. China’s hog/corn price ratio was above the 6:1 profitability indicator from July through to mid-January but now stands at 4.77 which is its lowest level since 2010. China has announced market intervention to help stabilise prices, but the volumes are small and any impact on the market will be psychological. China’s wholesale prices for imported pork offal and variety meat were relatively strong in early April despite the difficult market for domestic pork, with front feet prices up 7% year-on-year, hind feet up 13% and maws up 14%.
(Source, various)

Top pig farm in Inner Mongolia

Inner Mongolia’s largest pig farm has been built in Uulan Buh, Dengkou County. Covering an area of 267 hectares and 20 hectares on buildings, with total investment of £24m, the farm can produce 200,000 commercial pigs annually.
(Source, CNAgri)

Pork ‘hub’ in Hunan Province

Covering an area of 10.4 hectares, with a total investment of £41m, Changzhutan Guanglian Pig Trading Market has started a pilot operation in Ansha Town, Changsha County. This trading market is the only live hog trading centre, import and export food demonstration, trading and distribution centre in Hunan and the largest one in the Mid-South Region. A 22,000 tonne cold store has gone into operation and a 3 hectare frozen product trading market with a 700,000 head capacity pig abattoir has been built.
(Source, CNAgri)

Chinese wholesale prices week commencing 21 April 2014

 Price (RMB/Kg)£/KgChange on week
Pig Carcases 16.12 1.54 -2.30%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities

Korea

Production is falling

USDA forecasts are rather sanguine for Korean pork production with a predicted fall of 6.5% of production to 1.117m tonnes due to the effect of PEDv.
(Source, USDA)

Hong Kong

WH listing progressing well

The £3.2b listing on the Hong Kong Stock Exchange, the largest this year in the territory and one of the largest ever in the food sector, is attracting interest from investors. WH holding comprises Shanghui and Smithfield Foods.
(Source, various)

Shanghui profits up 34%

China’s largest pork processor, part of WH group, has announced profits up 33.7% to £377m. This bodes well for the current Hong Kong public offering.
(Source, Asian Pork)

Taiwan

French pork imports

Some 400 tonnes of French pork, the first to be shipped to Taiwan, should arrive in time for the Dragon Boat Festival. PEDv is affecting Taiwan too, with losses of 70,000 piglets in January and 40,000 in February leading to high prices. The French pork is imported at the request of the National Animal Industry Federation in order to pull down excessively high prices. The Taiwanese have even (most unusually) called for more imports to stabilise the market. We are aiming to finalise access negotiations.
(Source, Taipei Times, various)

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