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AHDB Pork Weekly Export Bulletin


26 May 2014

BPEX Export Bulletin - Week 21BPEX Export Bulletin - Week 21

SIAL Shanghai confirmed its position as both the top food show and best meat fair in China. The joint BPEX-EBLEX pavilion in the meat hall was kept incredibly busy for the whole three days of the exhibition with exporters in four booths highly satisfied with the show. In total, SIAL attracted about 50,000 visitors and 2,500 exhibitors.
British Pig Executive Weekly Export Bulletin

The British livestock pavilion at CAHE in Qingdao sponsored by BPEX and BPA occupied a whole block in a central position with suitable prominence in the international pig genetics hall, one of ten. Pig breeders reported brisk business despite the difficult conditions of the Chinese pork market. For photos of SIAL and CAHE, please see www.eblex-bpex-export.org.uk and refer to important comments in the China section below.

Poland

No swine fever

Tests on the ten dead boars in Western Poland mentioned last week came back, fortunately, negative for swine fever.
(Source, EC)

France

Cooked Ham

Cooked ham (pork and poultry) remains an accessible quality protein for 90% of French households. The trend is strengthening and the market share of cooked ham is still increasing. The main beneficiaries are the national brands boosted by the “lower salt content” segment, whereas the own brand market share is decreasing. Although this looks like a mature market volume and value are still rising, up +0.7% and +2%, respectively. The “reduced salt” reference has revitalised the cooked ham offer, increasing by 19% year-on-year in value in 2013 and now represents 31% of the total turnover of the Paris ham market. 54% of French households buy cooked ham with reduced salt content. The total market share of own brands decreased by 6 points, the main beneficiaries being leading brands Herta (+3.7points) and Fleury-Michon (+ 2.6 points).

Organic Cooked ham

Organic cooked ham represents only 2% of the total cooked ham market but, looking at the present dynamism of the market (above), the 16.26% growth in value of organic cooked ham sales could well be strengthened over the next few years.

Markets

Pigs: The decrease in prices continues in France despite prices in North European countries being stable. The 56 TMP base price lost €c1.3 last Monday due to increased offers. According to the Plérin market, the evolution of the German reference price will be key, with rumours indicating an increase could be very significant.

Piglets: The French market remains fluid, offers are sufficient to meet current demand. It should be noted that the decrease in the Charcuterie pork price continues to reduce FNP-FNCBV indices. Last week, they lost €c6 for 25kg weaners and €1.06 for post-weaning piglets.

Cuts: Difficult trading conditions could prevail this week. Although the weather is better, the trend of lower purchases during the second half of the month will be evident as budgets remain tight. Exports are low and prudence is necessary.

Pork prices RUNGIS week commencing 19 May 2014

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.50
Trimmings 1.27
Leg 2.73
Loin including chump 3.08
Loin excluding chump 2.86
Belly extra without trimmings 2.71

Netherlands

Increased productivity

Dutch productivity continues its excellent upwards trend. According to Agrovision data from a sample of 613 farms, the average now stands at 28.8 weaned pigs per sow per year (+0.6 on 2013) with the top 20% reaching 31.4. The average breeding farm counts 456 sows.
(Source, Boerderij Vandaag)

Denmark

Markets

The improved weather situation in Europe has resulted in fresh legs, loins and collars being traded at higher prices. Other cuts are exported at similar price levels to previous weeks. Exports are reported as stable to the UK bacon market at unchanged prices. Demand from third-country markets has remained stable in recent weeks with good steady demand reported from Japan and China.

Danish Slaughterhouses - payments week commencing 19 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
€0.947
-0.027
€0.947
-0.027
Boars (Above 109.9 kg)
Difference to last week
€0.813
-0.027
€0.813
-0.027

Germany

Protests against the new Pini abattoir

A petition against the application for building permission for the new plant of Italian processor Pini (see bulletins passim) attracted more than 6,000 signatures. The new abattoir that will slaughter 40,000 pigs per week with 2,500 staff would compete directly against Tönnies.
(Source, AFZ)

Pork Prices Hamburg Market Week commencing 19 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 1.30/1.35
Half Pig Carcasses U class 1.96/2.06

Spain

Pork prices Barcelona Market Week commencing 19 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

Russia

Belarussian temporary Import restriction lifted

Rosselkhoznadzor removed the temporary ban on pork imports from 10 Belarussian companies following inspections which concluded that the level of biological protection is satisfactory. For reference, Russia introduced temporary ban on import of pigs, pork, pig genetic material and feed materials that wasn’t treated with heat, on 30 August 2013 due to the threat of the ASF spread.
(Source, meatinfo.ru)

Higher prices

As of 12 May, wholesale prices for live pigs increased to US$3.38 per kg and the price for half carcases increased to US$5.11 per kg. At these levels, prices have increased by 20% in the last month and are some 65% higher than a year ago. The main driver behind the marked increase is the deficit resulting from the ban of EU pork imports.
(Source, piginfo.ua)

China

Trading woes

At SIAL China, pork importers reported that they have not made any money this year due to falling market prices. However, everybody expects a turnaround and some importers are currently sitting on stock waiting for the market to turn, thus changing the situation to a sellers’ market.
(Source, own)

Poor market: a good thing?

The fall of 30% in pork value has put many smaller less efficient pig producers out of business. Some dubious pig projects have also been shelved. The Chinese market cannot function properly in the medium term whilst keeping producers turning 12 pigs per sow per year profitable. Larger, more efficient producers who have a strong cash flow and financial cushion have been relatively unaffected and have not altered their expansion plans. The government’s reaction to falling prices has been more timid than in the past. It is said the large influential groups are against subsidies that tend to help the smaller producers and were ready for a fight.
(Source, own)

Corporate moves

Cofco’s possible purchase of major producer Jin Luo was debated at SIAL China. Shenghui is still acquisitive despite its high debts.
(Source, own)

Competition at CAHE

The Danes and the Dutch battled on at the CAHE livestock fair with large marketing budgets. The French were somewhere behind; Canadian breeders were also active. In total, the huge CAHE exhibition, the largest ever, attracted 120,000 visitors and 1,300 exhibitors in 10 halls. An added attraction to the hosting of the fair, again in beautiful Qingdao (even if the new fairground stands at 50km from the centre of town), is the fact that a large portion of world pig equipment (30%) is manufactured in the Shandong Province. The next exhibition will take place on 18-20 May 2015, location to be confirmed. The fair will be preceded by the World Pig Forum on 16-17 May.
(Source, own)

Chinese wholesale prices week commencing 19 May 2014

 Price (RMB/Kg)£/KgChange on week
Pig Carcases 17.32 1.65 +6.35%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities

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