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AHDB Pork Weekly Export Bulletin


12 May 2014

BPEX Export Bulletin - Week 19BPEX Export Bulletin - Week 19

A USDA inspection of plants already approved for the export of pork products to the USA will take place from 20 May to 4 June in England and from 5 to 14 June in Northern Ireland.
British Pig Executive Weekly Export Bulletin

Contrary to expectations, no measure was adopted on the import of live pigs and pig products from the US at the last Standing Committee on Animal Health and Welfare - but a safeguard measure on “blood products, including spray dried blood and blood plasma, of porcine origin intended for the feeding of porcine animals” was adopted. These include a requirement that pig blood products can only be imported into the EU for use in pig feed after a treatment at 80 degrees followed by 6 weeks storage at room temperature.

Denmark

How can Danish Crown grow?

Ideally, the European pork leader would aim to increase throughput from 20m to 25m pigs per year and be able to raise capital outside its co-operative base. A merger with Westfleisch of Germany, another co-operative or with Danish dairy co-operative Arla is possible.
(Source, Boerderij Vandaag)

Markets

On European markets, fresh legs were sold at virtually unchanged prices. Exports to the UK bacon market are reported as stable, also at similar prices. Exports to markets outside of Europe remain unchanged compared to the last few weeks, good steady demand is reported form Japan and China.

Danish Slaughterhouses - payments week commencing 5 May 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

France

New Marketing Manager at IFIP

The French pig institute, IFIP, has appointed Stéphane Gouault to the newly created position of Marketing Manager IFIP.

Investment

Charcuterie de la Lys based in Aire-sur-la-Lys, northern France, will increase the size of their site from 680sqm to 1,000sqm. Within the last 4 years, the company has increased turnover from €1.8m to €3.1m, half of the production is “Saveurs en’Or” branded products. Zentz charcuterie processor in Haguenau, eastern France, doubled its site to 2,000sqm, the turnover of the company reached €8.2 million in 2013.

Knack & Cie

A new brand has been born at the Coop d’Alsace. The new range will be launched in 202 stores in France, including Leclerc, Carrefour and Coop d’Alsace which are mainly located in the east of France. The objective is to distribute to a national level, focusing on the traditional regional know how and the superior quality of their charcuterie products. The factory, near Strasburg, produces 1,200 tonnes of meat and meat products and 1,300 tonnes of charcuterie products. All ingredients are traditional and natural which, according to the Production Manager, makes them “better than the others”. Five products will be produced from locally reared pigs; two are already present on the market and will be at the forefront of the new promotional campaign.

Black pudding spring

This year, the national federation of charcuterie processors is promoting all kinds of black pudding: black black pudding, red black pudding, white black pudding and all the famous regional variations such as Antilles (Carraibean islands) and Lorraine. In fact, 25 regional varieties have been recorded. All contain pig blood except the white pudding made with pork (veal or chicken in some cases) in a pork casing with bread and milk with spices and other subtle ingredients, including truffle.

Markets

Pigs: The trend of decreasing prices continues in France. The 56 TMP base price lost €c1.5 last Monday in Plérin. Offers were sufficient to meet the limited needs of abattoirs. According to Plérin, the difference in prices between Germany and France is not favorable for the French origin, which is also bad for French exports.

Piglets: The market is stable. Offers are limited but sufficient to meet current demand and prices remain firm. FNP-FNCBV prices gained €c2 for 25kg weaners and €c35 post weaning piglets.

Cuts: According to FNICGV, French pig meat production is forecast to decrease by an estimated 3.1% in 2014.

Pork prices RUNGIS week commencing 5 May 2014

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.50
Trimmings 1.31
Leg 2.72
Loin including chump 3.18
Loin excluding chump 2.81
Belly extra without trimmings 2.86

Belgium

Fresh pork consumption down

According to GfK data, in 2013 the Belgians consumed the same amount of ‘mixed’ minced meat and processed pork products as before. Consumption of fresh pork fell by 6.1% in volume but purchase frequency rose. In value, the market is only 3% smaller due to higher prices.
(Source, VLAM)

Germany

Tönnies symposium

Parliamentary State Secretary Peter Bleser attended the second Tönnies research symposium. Developments on pig welfare were specifically discussed.
(Source, AFZ)

Pork Prices Hamburg Market Week commencing 5 May 2014
Cut namePrice range (€ / kg)
Round cut leg 2.30/2.40
Leg (boneless, rindless max fat level 3mm) 3.25/3.38
Boneless Shoulder 2.45/2.50
Picnic Shoulder 1.97/2.15
Collar 2.90/3.10
Belly (bone in, ex-breast) 2.00/2.30
Sheet Boned Belly (rindless) 1.95/2.25
Jowl 1.25/1.35
Half Pig Carcasses U class 1.96/2.06

Spain

Coren increase turnover

Coren increased their turnover by 2% compared with a year earlier levels in 2013 to €982m. Increased production and improved product commercialisation were the main drivers behind the increase combined with the slow recovery in consumption, especially in the later months of 2013.
(Source: Eurocarne)

Volaró finally announces liquidation

The appointed administration is looking for a buyer, to date this has been unsuccessful although they are shortly expecting a visit from a foreign investor. The 11.600sqm slaughterhouse has capacity to slaughter 4,500 pigs a day, the company is valued at €12m.
(Source, Alimarket)

Pork prices Barcelona Market Week commencing 5 May 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

Sweden

Danish Crown progresses at the expense of Scan

In 2013, slaughter at Scan, particularly its major Kristianstad abattoir fell from 835,000 to 713,000 pigs. In contrast, KLS/Danish Crown Kalmar’s output rose from 287,000 to 317,000 head and KLS Ugglarp rose from 209,000 to 231,000 pigs. Looking at the map, one cannot help but notice that the Scan plant is badly sandwiched between the two KLS abattoirs in Southern Sweden. The output of other operators such as Dalsjöfors, Skövde and Scan Skara was stable.
(Source, Kött och Charkförtagen)

USA

Injected meat

Some 39% of all US meat is now injected. A proposed new law would make a mandatory declaration that the product has been “liquid-enhanced” if it contains more than 3% of brine, liquid solution or marinade.
(Source, North America Meat Association)

Brazil

Producers plead for restrictions

Brazilian Livestock Associations have asked the government to impose a temporary suspension of imports of live pigs, genetic material and plasma from the USA, because of the spread of PEDv. The Ministry of Agriculture of Brazil replied that, at the moment, there is no prevision to action their plea and that the implemented quarantine on these products is satisfactory.
(Source: Mercolleida)

China

WH pulls out of Hong Kong listing

WH Group, the largest pork producer has pulled out from its huge Hong Kong listing quoting due to lack of interest and high volatility. The company had slashed the size of the IPO by two-thirds. The company is accused of seeking too high a price, hiring too many underwriters (a record 29) and funding sky-high executive compensation. This is a major setback for WH which is saddled with enormous debts.
(Source, Reuters)

Intervention buying

The Chinese authorities announced that they will launch a new round of buying unspecified amount of pork for storage with the aim of supporting farm gate pig prices. Similarly, purchases of pork for stock took place in March. However, this was not enough to stem the slide of Chinese pork prices.
(Source, Reuters)

Chinese favourites

Chinese favourite origin of food brands is by order of preference: Germany, USA, Japan, France, Italy, New-Zealand, Australia, Taiwan, Hong-Kong, Spain and Korea. The UK is unfortunately not included. The top five EU food exporters to China are France (35%), the Netherlands (16%), Spain (11%), Germany (10%) and Denmark (10%). Indeed more work is needed in China. In terms of luxury goods, the UK scores better. We are ranked behind France and Italy but ahead of Switzerland, the USA and Germany. We score most on heritage values and quality/precision. In terms of luxury meals, Chinese offer comes first for 33% of luxury buyers, ahead of French (27%), Italian (11%) and the UK (6%).
(Source, various, KPMG)

Chinese wholesale prices week commencing 5 May 2014

 Price (RMB/Kg)£/KgChange on week
Pig Carcases 16.16 1.54 0.25%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities

Japan

Details of the Free Trade Agreement / Trans-Pacific Partnership with the USA

Japan will lower tariffs on low-priced pork from the United States from ¥482 per kg (£2.80) to ¥50 per kg (£0.30) over the next 15 years or so while it will maintain the so-called gate price system, according to Japanese government sources. The gate price system, introduced in 1971, imposes price differences between standard domestic pork and imported pork as tariffs on pork imports. Japan will be able to maintain tariffs on all the five key agricultural product categories, rice, wheat and barley, beef and pork, sugar and starch, dairy products that Japan sees as “sacred.”
(Source, Yomiuri Shimbun)

Singapore

Pork consumption stable

Government statistics for 2012 show that Singaporeans consumed 22kg of seafood, 20kg of pork, 33kg of chicken, 3kg of beef and 2kg of lamb and mutton. Singapore also has the highest food service spend per capita in Asia.
(Source, UKTI)

Very, very successful Singapore

Other interesting points provided by UKTI, Singapore GDP at £136b is slightly higher than Hong Kong at £132b GDP per head which is £25,000 per year, ahead of Hong Kong and the UK both at £18,000 per year. GDP has grown by an average of 8% per year since independence. Finally, Singapore hosts 4,200 head office or regional headquarters of multinational companies (60% of the 7,000 world multinationals).
(Source, UKTI)

India

Investment at last

Meat Products of India Ltd., the largest pork processor in Kerala, will open a pig abattoir in Edayar with a capacity of 2,000 pigs per week with an investment of £3m. The state of Kerala needs 50 tonnes of pork per day but supplies fall well short.
(Source, Asian Pork)

Thailand

PEDv

Kiddivong Sombuntham, Secretary General of the Thai Swine Raisers Association, says that the viral disease has caused a drop of 20% in pork production. The 850,000 sows will only maintain 12m head fattening population. Demand for pork has plummeted by about 10% but prices are firm at £1.30 to £1.34 per kg lw.
(Source, Asian Pork)

Vietnam

Vietnamese switch from poultry to pork

Pork prices are rising in Southern Vietnam as consumers turn away from poultry over H5N1 concerns. Live prices in Dong Nai Province, the largest pig production area, have now reached £1.44 per kg.
(Source, Asian Pork)

Russia

Pork in Vladivostok

The company Merci Trade near Vladivostok, created in 2011, is expanding its production to 5,000 sows in September and plans to reach 20,000 sows by 2017. There is no other local production and slaughter pigs are sold at €4.00 per kg liveweight (!). The project is owned by local investors.
(Source, Porc Magazine)

New regulations

On 1 May the new technical regulations of the Customs Union on safety of meat and meat products came into force. According to the new regulations, animals can only be slaughtered at specialised facilities. Market experts predict that the new rules will negatively influence small meat producers and will push meat prices up. Currently there are only 29 approved slaughter facilities.
(Source, agravery.com, piginfo.ua)

Ukraine

Production

In the first quarter of 2014 the production of fresh and chilled pork in Ukraine increased to 55,400 tonnes. In March alone the production amounted to 19,900 tonnes. Sausage production in the quarter, increased to 63,900 tonnes.
(Source, Pigua.info)

World

Massive market for growth enhancers

The market for antibiotic growth promoters (AGPs) and performance enhancers was valued at £4.071b in 2013 and is expected to reach £5.206b by 2018. The market is categorised into eight broad segments, namely antibiotics, hormones, a-agonists, feed enzymes, organic acids, probiotics and prebiotics, phytogenics, and others. Based on animal industry, the market comprises porcine, poultry, livestock, equine and aquaculture. In 2013 Asia commanded the largest share of the global growth promoters and performance enhancers market. This can be attributed to little or no regulations on the use of AGPs in most Asian countries.
(Source, Markets & Markets)

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