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AHDB Pork Weekly Export Bulletin


21 July 2014

BPEX Export Bulletin - Week 29BPEX Export Bulletin - Week 29

Some 21 German sausage producers have been fined an incredible €338m for price collusion.
British Pig Executive Weekly Export Bulletin

On Monday, the German competition body found sausage producers guilty of manipulating prices over “decades”. The cartel was nicknamed the “Atlantic Circle” from the name of the Hamburg hotel where they met in 2003 to discuss price fixing. This involves a huge fine of €338m for 21 producers including all the largest players (Stockmeyer, Reinert, Lütz, Böklunder-Tönnies, Herta-Nestlé, Rügenwalder, Meica, Bell…). We are led to believe that some companies are facing bankruptcy. German breweries were fined €337m earlier this year.
(Source, Focus on line, Wall Street Journal, Wirschaft Woche)

France

GAD

According to La France Agricole, initial contact has taken place between Cecab (owners of Gad) and SVA Jean Rozé belonging to the “Mousquetaires” group. SVA Jean Rozé already runs a pig abattoir in La Guerche de Bretagne processing 23,000 pigs a week, the potential Gad plant in Josselin could double this production. The management of SVA Vitré is looking at various parameters including the social aspect of such a deal that could affect almost 1,000 employees. The good words of Stéphane Le Foll, at the general meeting of Inaporc, might not suffice to increase production and boost the activity of the whole French pig meat industry. The labelling initiative designed to differentiate French pork at point of sale has not increased visibility of the French origin at retail, in fact it decreased to 46% in June 2014. Reflecting the impact of the current Russian ban, slaughterings at GAD have fallen from 38,000 to 32,000 pigs a week. The chain which operated on the basis of two 7 hour shifts over 5 days is now working one 8.75 hour shift over 4 days.

SVA and SBA

SVA Jean Rozé now owns 51% of the sow processor SBA (Société Briecoise d’Abattage). The cooperative Terrena remains co-owner with 49% of the company. This move will help SBA invest in the abattoir and cutting plant, the number of employees is expected to increase from 70 to 120.

Brittany pork at McDonalds

The 600 pig producing members of Cochon de Bretagne and two processors: Bigard and Jean Caby have signed an agreement to supply a 1,000 tonnes of ham to the restaurant chain, representing 160,000 hams produced from 80,000 pigs.

Markets

Pigs: Low demand and a lack of dynamism on the export market resulted in the German price easing by €c8 last Wednesday. According to “Le Marché du porc Breton”, every year, German prices succumb to pressure due to holiday departures to Southern Europe. While the Russian market remains closed and Polish imports are very low, available volumes in Europe are high and prices are under pressure. According to Plérin, the price for shoulders is very low. Prices are decreasing in Denmark (down €c2.6), in Belgium (down €c6) and in Netherlands (€c7). Despite moderate offers and firmer demand, prices in Spain also decreased by €c1.

Piglets: The seasonal decrease for European prices continues, even accelerating in some areas depending on the Member state. This is due to a weaker market than hoped for at pork butchers.

Pork prices RUNGIS week commencing 14 July 2014

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.50
Trimmings 1.42
Leg 2.60
Loin including chump 3.20
Loin excluding chump 2.85
Belly extra without trimmings 2.81

Germany

Welfare worries

A widely expected television programme will accuse pig producers of major lapses of welfare regarding the treatment of piglets on German farms. The German media, including Bild magazine, are already showing the findings.
(Source, own)

More boars

The number of boars slaughtered in Germany now stands at 13% of total slaughter. This number was quoted at a specialist boar congress. Still, changes will be slow with German retailers against the use of Improvac which is considered a hormone.
(Source, Boerderij Vandaag)

German pig price continues its fall

Reduced slaughter activity at almost all facilities has resulted in ongoing low demand for slaughter pigs. Low meat demand due to the holiday season and decreasing export numbers are reported as the main drivers applying pressure to the market. The lower price did not offer additional impulse to the meat market. At the same time, several producers delivered more slaughter pigs. As a result, the recommended price decreased to €1.60 per kg.

Intermeat cancelled

Intermeat, the long running meat exhibition that takes place in alternative year to Anuga has been cancelled due to lack of interest. The show had been in decline for many years.
(Source, own)

Pork Prices Hamburg Market Week commencing 14 July 2014
Cut namePrice range (€ / kg)
Round cut leg 2.40/2.55
Leg (boneless, rindless max fat level 3mm) 3.25/3.45
Boneless Shoulder 2.50/2.65
Picnic Shoulder 2.05/2.30
Collar 2.75/3.10
Belly (bone in, ex-breast) 2.15/2.45
Sheet Boned Belly (rindless) 2.10/2.34
Jowl 1.30/1.40
Half Pig Carcasses U class 2.04/2.14

Netherlands

For Farmers take over Whey Feed

The British by-products company employs 82 people for 32 tankers and has a turnover of £10m.
(Source, Boerderij Vandaag)

Vion objectives

Michiel Herkemij the CEO says that the company is aiming to buy 60% of its pigs under contract. It will also close 5-10 of its remaining 34 German plants and is aiming for €100m per year of efficiency savings. Sales to Poland and Australia have compensated for the closure of the Russian market and he reassured that Vion had no frozen stocks of pork. Target export markets include Africa and Japan. Vion’s financial situation is still not great and, in the future, the concern will probably be smaller.
(Source Boerderij Vandaag)

Gerlderland bans new livestock entreprises

The Dutch region has joined North Brabant where such a ban has been enacted. Groningen operates a point system.
(Source, Boerdrij Vandaag)

Denmark

Danish Slaughterhouses - payments week commencing 14 July 2014
SlaughterhouseDanish CrownTican
Slaughter pigs (70.0 – 86.9 kg)
Difference to last week
€1.448
-0.027
€1.448
-0.027
Sows (Above 129.9 kg)
Difference to last week
€0.939
-0.040
€0.939
-0.040
Boars (Above 109.9 kg)
Difference to last week
n/a n/a

Spain

Esteban Espuña expands

The Catalan processor is investing €2m in buying and refurbishing the Soluciones Alimentarias R45 plant in Pobla de Lillet (Barcelona). The company is aiming to expand its successful Tapas al Minuto production. Espuña now operates four factories, the main one in Olot (Girona) for processed pork products and dry cured ham, the slicing plant in Utrillas as well as a processing plant in Argentina.
(Source, Eurocarne)

New support unit for Spanish meat exporters

The University of Extremadura and the local government are funding the UAEX unit (Support Unit for Export of Food of Animal Origin). This new structure will provide technical support to exporters to enable them to comply with legislative constraints (eg meat safety, quality, labelling and declarations) regarding exports to Third Countries. The impressive set-up counts three separate laboratories with the latest analytical equipment.
(Source, Eurocarne)

Pork prices Barcelona Market Week commencing 14 July 2014
Cut namePrice range (€ / kg)
Gerona Loin Chops 2.90/2.93
Loin Eye Muscle 3.83/3.86
Spare Ribs 3.38/3.41
Fillets 5.48/5.51
Round Cut Legs 3.40/3.43
Cooked Ham 2.77/2.80
Rindless Picnic Shoulder 1.84/1.87
Belly 2.63/2.66
Smoked Belly with Spare Rib Section Cut off 3.06/3.09
Shoulder chap or Head Jowls 1.16/1.19
Back Fat, Rindless 0.63/0.66

USA

PEDv news

PEDv is now killing an average of 14,286 piglets daily according to New York Times estimates. Meanwhile, pig farms are tightening their biosecurity. In North Carolina, activists are worried about the pollution of ground water from buried carcases. Meanwhile, pork prices broke a new record at €2.06 per kg. Demand is said to be “on fire” and higher slaughter weights in June have more than compensated for PEDv losses.
(Source, New York Times)

Russia

Mad prices

International traders are quoting prices for pork backfat above €6 in Russia. Pork fat is a compulsory ingredient for Russian sausages and is in short supply due to the EU import ban. China is expected to increase its export to Russia to make up part of the shortfall.
(Source, own)

Ukraine

Higher pork price

On 15 July, the average purchase price for pork increased to UAH19,626 per tonne (US$1,673 per tonne), 10% higher than the average price a year ago.
(Source, PigUA.info)

Brazil

Export merry-go-round

In 2012, Brazil exported 64,000 tonnes of pork (Jan-Jun) to the Ukraine, this has now fallen to 3,000 tonnes. In contrast, exports to Russia have increased from 55,000 tonnes to 84,000 tonne in the same period.
(Source, AHDB)

China

WH listing

According to the Wall Street Journal, WH has announced two new banking sponsors for a potential listing: Morgan Stanley and Chinese investment bank BOCI.
(Source, Wall Street Journal)

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