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AHDB Pork Weekly Export Bulletin


30 June 2014

BPEX Weekly Export Bulletin - Week 26BPEX Weekly Export Bulletin - Week 26

Following trade requests, export health certificate 7712EHC for the export of pork Mongolia has been issued. European pork is already exported there and Chinese approval is not needed.
British Pig Executive Weekly Export Bulletin

Recent pork export successes and the need for more added value pork products were discussed at the 10th Export Conference that took place in Stoneleigh on Wednesday. The conference was opened by Minister George Eustice and included presentations on Asian retailing by IGD and a review of UKTI activities and collaborations in the meat sector.

Netherlands

Topigs and Norsvin to merge

Topigs the Dutch pig genetics leader, Varkens KI, the Dutch AI centre and Norsvin of Norway are to merge, with the Dutch owning 66.5% of the shares. The new entity will be called Topigs Norsvin. Topigs has a turnover of €100m and Norsvin €36m. It will have an €18m research budget representing about 14% of turnover and will market 1.55m gilts and 8m doses of semen. Norsvin and Topigs have collaborated since 2012. The Norwegian breeder has a strong position in Scandinavia, the Baltics and the USA and uses the famous Duroc and Landrace lines. However, it was far too small to continue independently.
(Source, Boerderij Vandaag, our comment)

Teeuwissen Group taken over by Saria

Teeuwissen, one of the largest animal by- and co-products companies in the world, has been fully taken over by the Saria Group from Germany. Both companies have collaborated since 2009. Saria also takes control of 90% of Bioiberica, a producer for the pharmaceutical industry. The company buys large volumes of products in the UK.
(Source, Boerderij Vandaag, our comment)

British-style sausages in Holland

Butch & Dutch sausages are produced by Proviande and marketed by Mister Kitchens and sold in Albert Heijn, Makro and Jan Linders stores. Bulk sausages are sold in Makro at the attractive price of €1.25 per 100g.
(Source, Vlees Magazine)

France

Alu 300

Cryovac has just launched a new cooking bag for leg joints and roasts. This retractable packaging is a metal colour and protects the meat from light and oxygen and extends shelf life. In spite of its name, the new packaging does not contain any metal and is compatible with lines using metal detectors.

World cup sausages

Using the same system as the Reinert for their range of sausages for children, Herta have launched a sausage with football drawings called “knackis-ball”. Due to numerous price variations on the natural casings market, manufactured casings are slowly replacing natural ones. Today, natural casings represent 49% of the world market and manufactured casings are progressing by 5% to 6% per year. Manufacturers are developing new products, thinner and more palatable, also better suited to grilling. Manufactured casings also come in different colors. Plastic casings represent 20% of the market and are well adapted to Chorizo and cooked sausages and some can be smoked. Cellulosic casings (10% of the market) also offer a large range of colours, they can also be smoked and flavored and adapted to different shapes. Finally vegetal casings (alginates) are progressing on the market, the process is co-extrusion instead of traditional embossing; this system allows the production of diameters ranging from 8 to 34mm.

Payment grid needs adapting

According to Uniporc, the French payment grid for pigs needs to be adapted. Pigs are now heavier, better shaped and have less fat. In 2013, only 79% of slaughtered pigs fitted the payment grid (80-102kg) compared with 83% in 2012. The weight increase of pigs is designed to compensate for declines in the west of France; slaughterings fell by 1.3m pigs while 1,000 producers exited pig production between 2008 and 2013.

Markets

Pigs: The end of the month does not appear to have caused a sudden awakening of the meat trade. Purchases remain cautious at Plérin.

Piglets: The end of the month and the start of the summer holidays limit demand from retailers and caterers; especially as the summer sales start, which is rarely profitable for traders. Nevertheless, the weather remains favorable and the beginning of the month approaches at high speed.

Pork prices RUNGIS week commencing 23 June 2014

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.50
Trimmings 1.35
Leg 2.88
Loin including chump 3.15
Loin excluding chump 2.94
Belly extra without trimmings 2.76

Denmark

More pork to Japan

The Danes are benefiting from the lack of product in the USA and falling local production, both due to PEDv, to increase pork exports to Japan according to Kjeld Johannesen, CEO of Danish Crown.
(Source, Wall Street Journal)

More piglets weaned

Danish pig farmers now wean 30 piglets per sow per year according to statistics for productivity in 2013 from the Knowledge Centre for Pig Production. The 600 herds included in the statistics have increased productivity by 0.4 pigs on average to 30 weaned piglets per annual sow. The average herd has 680 sows and the piglet mortality rate has fallen slightly to 22.3%.
(Source, Landbrugsavisen)

Markets

On the European market, fresh legs and other cuts are sold at similar prices. On the German market, the start of summer holidays in certain states has reduced demand. On the UK bacon market, it is a stable trade with unchanged prices. On third country markets, sales are reported as good and stable, including China and Japan, but also to the United States.

Danish Slaughterhouses - payments week commencing 23 June 2014
SlaughterhouseDanish CrownTican
Slaughter pigs (70.0 – 86.9 kg)
Difference to last week
€1.494
+0.027
€1.494
+0.027
Sows (Above 129.9 kg)
Difference to last week
€0.947
unchanged
€0.947
unchanged
Boars (Above 109.9 kg)
Difference to last week
€0.813
unchanged
€0.813
unchanged

Sweden

Large cash injection from government

The Swedish government is ploughing €250m into investment subsidies for new pig farms. The development programme for the struggling Swedish pig sector also includes farm advice and consumer marketing. Swedish pig production has very high welfare standards but a high cost base.
(Source, Boerderij Vandaag)

Ireland

Call for higher slaughter weight

Teagasc researchers are calling for heavier pigs to boost farmers’ and processors’ profitability. Meanwhile, prices have risen to the enviable €1.84 per kg.
(Source, Irish Farmers’ Weekly)

Germany

Westfleisch in good health

The company broke new records in 2013 with turnover up 1.3% to €2.51b and volumes up 1.7% to 900,000 tonnes, 383,000 tonnes of which was exported. In 2013, Westfleisch slaughtered 7.2m pigs (+1%). Last year is described as “a year of consolidation” for the firm’s finance. The development of the snack category and the brands Westfalenland and Gustoland took priority.
(Source, AFZ)

A further price rise

The availability of pigs is the dominating factor on the German pig market. While slaughter numbers were about 2% lower than 2013 from January to April, current availability seems to be even tighter. One of the reasons may be new veterinary rules in the Netherlands which have increased the cost of pig transport significantly. As a result, between 10,000 and 20,000 fewer pigs are being delivered to Germany each week. Especially the western parts of Germany report low numbers of available pigs. As a result, the recommended price increased by €c4 per kg to €1.78 per kg.

Pork Prices Hamburg Market Week commencing 23 June 2014
Cut namePrice range (€ / kg)
Round cut leg 2.50/2.65
Leg (boneless, rindless max fat level 3mm) 3.35/3.55
Boneless Shoulder 2.55/2.65
Picnic Shoulder 2.10/2.35
Collar 3.00/3.25
Belly (bone in, ex-breast) 2.15/2.45
Sheet Boned Belly (rindless) 2.10/2.30
Jowl 1.35/1.45
Half Pig Carcasses U class 2.11/2.21

Austria

Austrian bacon

The firm Gierlinger produces bacon in Hungary and Romania under a Premium bacon brand. Factories are BRC and IFS certified. The prepacked product has a six months life and 4,000 tonnes are marketed per year in the EU. The company is rather boastful claiming to produce “the best bacon in Europe”.
(Source, Vlees Magazine)

Montenegro

Goranovic expansion

The leading Montenegrin pork processor plans to expand, following the award of loans of €5m from the EBRD and €3m from Société Générale.
(Source, Balkan News)

Spain

More difficult times for Martinez Loriente

Martinez Loriente produced 118,865 tonnes of meat and processed products in 2013 with a turnover of €534m (-1.2%). Profitability is down to €0.67m (-92%) due to price pressure with average prices falling by 4%.
(Source, Eurocarne)

Coren progresses with exports

The Galician group generated €982m in 2013 (+2%). The increase is due to higher exports. The group exported fresh and processed pork to 50 countries last year.
(Source, Eurocarne)

Dry-cured meats in crisis

Since last year, 58 dry-curers have closed leaving 1,780 operators in the market. Half of the closures have occurred in Castilla-León (-29) with La Rioja bucking the trend (+13). A major fatality is the famous Teruel ham producer Virgen de la Fuente. Total dry-cured ham and shoulder production is bumping along at a low ebb of 37.4m pieces. Production peaked before the crisis with 41.6m pieces. Exports at 33,901 tonnes are at record level. Exporters such as Torre de Núnez, Espuña, Fermin are expanding. Firms like Beher hope to expand through restaurant franchises.
(Source, Eurocarne)

Pork prices Barcelona Market Week commencing 23 June 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 1.26/1.29
Back Fat, Rindless 0.73/0.76

Russia

Upheaval but no new investment in production

Russia’s swine herd has declined 1% to 19.73m head, which is a reflection of the high slaughter numbers resulting from the current pork deficit. Accordingly, Russia’s domestic pork production is nearly 10% up and production is expected to reach 2.55m tonnes this year. Russia’s January-April pork imports are down significantly, with total imports down 40% from a year ago to 123,748 tonnes. Results by product category include: Frozen imports down 32% to 114,700 tonnes, chilled imports down 85% to 1,200 tonnes and pork fat imports down 71% to 24,900 tonnes. The surge in prices has not translated into significant new investments in primary pork production, as concerns about animal health issues and the sustainability of strong prices still present significant risks. However, Russia’s pork processing sector is attracting a higher level of new investment. Due to the lower availability, Russian pork consumption is expected to fall by 2.1% in 2014. 
(Source, AFZ, various)

Ban on US live pig imports

Russia has banned all live imports of pigs from the USA as a result of the PEDv epidemic.
(Source, various)

New veterinary certificate for import of EU breeding pigs

According to the Head of Rosselkhoznadzor, a new veterinary certificate for import of breeding pigs from the EU was developed by the service and was sent to the veterinary services of Kazakhstan and Belarus for approval. After the document is approved by Customs Union members, it will be sent to the EU, and afterwards, the trade in breeding pigs will be resumed. The certificate contains many requirements, including prohibiting pig imports from countries that border Poland and Lithuania (due to the ASF outbreaks registered in these countries).
(Source, meatinfo.ru)

Ukraine

Polish pork imports

According to the Ministry of the Agrarian Policy and Food, the Ukraine has lifted the ban for importing pork and pigs from the regions of Poland free from the ASF. In February 2014, the Veterinary and Phytosanitary introduced temporary restrictions on Polish pork imports due to the ASF outbreak.
(Source, Interfax.com.ua)

Belarus

Banned imports from three Russian oblasts

New outbreaks of ASF were registered on the territories of Volgogradskaya, Kaluzhskaya and Tverskaya oblasts of Russia. As a result, the Belarussian authorities banned import of pigs and pork from these Russian territories.
(Source, agronews.by)

Pork and beef price gap narrows

According to the National Statistics Committee of Belarus, from January to May 2014 the average boneless pork price increased 1.5 times and reached BYR101,400 per kg (US$10.1 per kg), while the average price for boneless beef was BYR103,800 per kg (US$10.4 per kg). The average price for pork with bones increased by 51% and reached BYR69,600 per kg (US$7 per kg). Pork fat average prices increased 36% and amounted to BYR 68,700/kg (US$6.9 per kg).
(Source, agronews.by)

China

Price recovery waning

The market rebound that started in May is stuttering below RMB19.00 per kg carcase, last week the price fell to RMB 18.55 per kg and eased further to RMB 18.45 this week.
(Source, CNAgri)

Wal-Mart keen on food safety

Wal-Mart has increased spending on food safety and authenticity in China to £30m per year. The company said it will increase DNA testing on meat products and supplier inspections, and test more of its stores with its two mobile safety labs.
(Source, Wal-Mart)

New Chinese rules

The USDA’s Food Safety and Inspection Service (FSIS) has announced new requirements for exporting US pork and pork products to China. “Pork and pork products with FSIS export certificate insurance dates on or after 1 July 2014 must be produced according to the Ractopamine Control Programme. Pork casings intended for processing (selection for size and quality) in China and subsequent re-export are exempt from the ractopamine residue control program” FSIS writes. FSIS also added three plants not eligible to export to China until further notice, including Tyson Waterloo, Iowa; Transcontinental Cold Storage in Sioux City, Iowa; and Seaboard Guymon, Oklahoma. US pork exporters must also use electronic certification from August.
(Source, various)

Soya bean shipments hit new high

Imports of soya bean rose by 10% in 2013 to 63.4m tonnes. This year, the total should be even higher as China has agreed to import a record quantity from the USA for the 2013-14 market year of 27.5m tonnes (+22%).
(Source, China Daily)

Internet sales of pork

With Internet sales of pork exploding in major Chinese towns, at least in the younger age segments, it is high time to start visiting this exciting area of retailing. To give two examples of sites worth visiting: www.tootoo.cn markets pork from Canada and France as well as imported lamb and beef; www.sfbest.com also sells pork from Spain and the USA as well as beef and lamb from Australia and New Zealand. UKTI has agreements with Chinese portals and in-house capability that we may be able to use. A preliminary meeting is planned for next week.
(Source, own)

Chinese wholesale prices week commencing 23 June 2014

 Price (RMB/Kg)£/KgChange on week
Pig Carcases 18.45 1.75 -0.54%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities

USA

Production down but not by much

Production in May was down only 2% against May 2013 due to an increase of weight of 5kg to 129kg carcase. PEDv is expected to depress production further over the summer. Meanwhile, exports are expected to fall by 190,000 tonnes to 2.2m tonnes this year. Stocks are reported to be very high as processors are aiming to cushion against future hog price rises. Meanwhile, pork futures reached a record high at US$1.27. Kjeld Johannesen, CEO of Danish Crown, believes that US production will recover fast.
(Source, Pork Network, Wall Street Journal, own)

Canada

Higher exports

Canadian pork exports rose 16% in the first four months of 2014 from the same period of 2013, with sales to China more than doubling from March to April. The USDA forecasts that Canadian pork exports will rise by 20,000 tonnes to 1.3 million tonnes this year, mostly to the USA.
(Source, Wall Street Journal)

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