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AHDB Pork Weekly Export Bulletin


19 May 2014

BPEX Export Bulletin - Week 20BPEX Export Bulletin - Week 20

On a background of changing fortunes for the British pork sector, BPEX unveiled its new strategy at this week’s Pig & Poultry Fair. Chairman Stewart Houston said: “Exports are becoming increasingly important to the profitability of producers and processors. This is an area we need to expand.”
British Pig Executive Weekly Export Bulletin

According to the latest quarterly Rabobank Pork report, PEDv in the Americas and Asia will affect pork supplies both this summer and in the years to come. Pork shortages will be a key concern in many countries in the coming months. However, oversupply in China is expected to continue, driven by high sow liquidation. In balance, world production is now expected to decline against an earlier forecast of 1.3% growth.

A UK-China workshop on animal health organised by the British Embassy in Beijing will take place on 17 May in Qingdao before the China Animal Husbandry Exhibition (CAHE), the largest livestock exhibition in China (18-20 May). The British livestock pavilion is jointly supported by BPEX and the British Pig Association. A networking reception is planned on the stand during the exhibition.

Following trading requests, a new certificate 7697EHC ‘at exporter’s risk’ has been created for the export of pork to Haiti.

We are not yet able to deny or confirm the report from Russian veterinary authorities of ten dead boars due to Classical Swine fever in Western Poland on 6 May. This was first published in a Polish paper. This certainly does not tally with the positive noises from Farming Minister Marek Sawiki of a possible reopening of the Russian market on 8 May and the lack of official reports.

Denmark

Russian pains

It is estimated that the Danish pig sector is losing between €4 and €10m a week since the Russian ban in January. Contacts with Russian officials for national access of Danish pork are continuing.
(Source, various)

Market

On European markets, fresh hams traded at similar price levels this week. The UK bacon market is quiet, hence prices remained unchanged. Third-country markets remain unchanged with good steady demand from the Asian markets including Japan and China.

Danish Slaughterhouses - payments week commencing 12 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 payment grid?

Philippe Bizien, President of Regional Pig Committee of Brittany is planning to meet pig abattoirs on 22 May to discuss setting up a new payment grid. Mr Bizien believes that pigs do not correspond to the grid and there should be more support within the industry. He expects pig producers selling direct to abattoirs to help the 1,000 producers selling through the auction of MPB or Marché du Porc Breton.

Cooperl’s tax

French pig producers from the Loire region are complaining about the €c2 per kg contribution requested by Cooperl to compensate for the current difficult market situation. The present difficulties result from European competition as Charcuterie processors operating on a European scale buy at the cheapest price available, for example from Germany.

Hénaff – Johnsonville

The agreement between Hénaff (pâté and sausages specialist) and Johnsonville (American owner of Bratt’s sausages) which was set up last year and extended into 2014 is benefiting the French company. The company is now present at a national market level with a premium fresh sausage ranked as the third brand in France with 2.4% market share for Hénaff and 1.2% for Johnsonville.

Markets

Pigs: The week began with a well-supplied market while abattoir demand was limited due to the poor weather. According to “Marché du Porc Breton’ it was also due to the lack of attractiveness of French cuts on export markets. It is not surprising that 56 TMP base price lost €c1.4 last Monday.

Piglets: The French market remained fluid at the beginning of the week; offers were limited but satisfactory to meet current demand. Last week, FNP-FNCBV base prices lost €c4 for 25 kg pigs and €71 for post-weaning piglets.

Cuts: According to ‘L’Institut du Porc’, industrial prices for charcuterie remained stable during the first quarter of the year, increasing only by 0.7% compared with the same period in 2013. Some important differences in prices were noted: prices for cooked or dry “charcuteries” decreased while, in contrast, prices for pâtés and rillette’s increased markedly.

Pork prices RUNGIS week commencing 12 May 2014

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.50
Trimmings 1.21
Leg 2.80
Loin including chump 3.09
Loin excluding chump 2.87
Belly extra without trimmings 2.68

Belgium

Football fever

Aubel, a sponsor of the national team Les Diables Rouges / De Rode Duivels (The Red Devils), has launched a pre-cooked spicy sausage ideal for the barbecue market. This is only one example, football-themed products have been launched all over Europe in preparation of the World Cup.
(Source, Food & Meat Belgie)

Germany

Unchanged price

The current cold weather spell results in low demand for barbecue meat while the ongoing Russian ban results in significantly lower exports. Meat supply exceeds demand and pork cuts were mainly sold at lower prices compared with the previous week. Thus, several slaughter facilities demanded a price decrease. However, slaughter numbers are lower than last year and pigs can be placed without problem, in some regions a scarcity of pigs is mentioned and many pig producers demanded price increases. Overall, the market appears roughly balanced and the recommended price remained unchanged at €1.60 per kg.

Pork Prices Hamburg Market Week commencing 12 May 2014
Cut namePrice range (€ / kg)
Round cut leg 2.30/2.40
Leg (boneless, rindless max fat level 3mm) 3.20/3.35
Boneless Shoulder 2.40/2.50
Picnic Shoulder 1.95/2.15
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

Fall in slaughter of Iberian pigs

Although we are expecting a stabilisation of numbers, the total kill of Iberian pigs fell by 14% to 1.992m, of which only 132,000 (6.6%) were pure Iberian pigs. In 2009, 2.94m Iberian pigs were slaughtered including 386,000 pure bred. Three factors come to play with Iberian pork products: the long unyielding production cycle (3-5 years for ham), the very high cost of producing pure breds and the recently introduced production standards.
(Source, Eurocarne)

Fall in Campofrio turnover

The Spanish processed pork leader sold less pork products in 2013 (-0.6% to 1.907b) but profits remained stable. Some product ranges – snack (+16%), traditional (+6%) and €1 (+25%) – sold well. The company’s debts now stand at €448m. Campofrio opened a new pizza factory in Soria in 2013.
(Source, Eurocarne)

El Pozo buoyant

Turnover of the number two Spanish pork processor rose by 8% to €863m driven by export growth. Exports to 82 countries now represent 14% of sales. The company now employs 3,677 people on its Murcia site. In 2014, El Pozo – Fuertes will celebrate its 60th anniversary.
(Source, Eurocarne)

Foodservice sales

Foodservice sales have fallen from €37.5b in 2007 to €33b in 2012 (latest data available). Pork in foodservice, with a fall of 6.7%, suffered less than poultry which saw sales fall by 13.7%, but more than processed meat falling by 5%. Sales of beef at foodservice declined by 6.7%.
(Source, Eurocarne)

New alliance

Naragi (a butchers group) and the Pig Federation of Navarra have joined forces to promote the consumption of pork from small local farms.
(Source: Eurocarne)

Latvia

CSF at the Belarus border

The Latvian authorities have in the past week reported two cases of classical swine fever in wild boars near the border with Belarus.
(Source, EC)

Russia

Hungarian bacon and salami ban

Following meat processing factory inspections in February, Rosselkhoznadzor banned the import of products from 13 Hungarian meat-processing enterprises. The ban came into effect on 14 May. One of the companies banned is the largest Hungarian meat-processing company Pick Szeged. The best known brands of the company on the Russian market are Pick, Delhus and Ringa – different kinds of vacuum packed salami and bacon.
(Source, meatinfo.ru, Rosselkhoznadzor)

Ukraine

Higher pig population

According to the National Statistical Service, during the January to April period, the total pig population in Ukraine decreased by 79,500 pigs and as of 1 May totalled 7,901,400 pigs. The population of pigs at commercial enterprises increased by 135,600 pigs and amounted to 3,823,000 pigs. In contrast, the population of pigs in private households decreased by 56,100 pigs.
(Source, Piua.info)

Import duties

The agreement between Ukraine and the EU on the suspension of import duties for the Ukrainian agricultural products came into force on 15 May and will be effective until 1 November. It is anticipated that by this date Ukraine and the EU will have signed the agreement on free trade. According to EU estimates, the free trade agreement will save the Ukraine in the region of €500 million per year on duties if adopted.
(Source, Pigua.info)

Canada

Canada is the main beneficiary of the Russian EU pork ban

With export of pork, fats and offal up 89% to 34,500 tonnes in the first quarter, Canada has benefited most from the Russian ban on EU pork, ahead of Brazil up 23% to 31,300 tonnes.
(Source, Markedsnyt)

USA

Pork exports unaffected by PEDv

US pork exports in March rose by 28% against March 2013 to 210,000 tonnes despite PEDv and the Russian ban. Exports to Mexico (+38% to 54,000 tonnes), Japan (+22% to 45,000 tonnes) and China (+79% to 36,000 tonnes) performed well. For the first quarter, 584,000 tonnes of pork was exported.
(Source, Boerderij Vandaag)

Mexico

Kekén profits from the PEDv epidemic

Kekén-Kuo, the integrated producer listed on the Mexican stock exchange, increased its turnover by 27% in the first quarter due to the increase in the price of pork and positive trading conditions. The company which has 50,000 sows in production is currently investing £35m in renovating its farms.
(Source, Eurocarne)

Brazil

Pamplona Foods new plant

Brazilian meat company Pamplona Food has announced its intention to launch an investment of $33.9 million for the construction of a meat processing plant to produce spiced sausages.
(Source: Eurocarne)

China

Prices bottoming?

With a fall of pork prices of 30% since December due to large supplies, the market is seeing the first signs of a rise from this low level. The situation is in complete contrast to other Far Eastern markets whose prices have risen. Chinese prices now stand below EU and US quotations with a pig/corn price ratio of 4.6/1 well below the profitability target of 6/1. Imports of pork and offal are only slightly down, a good result in the circumstances.
(Source, various)

Chinese wholesale prices week commencing 12 May 2014

 Price (RMB/Kg)£/KgChange on week
Pig Carcases 17.32 1.65 +7.18%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities

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