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AHDB Pork Weekly Export Bulletin


07 October 2014

BPEX Weekly Export Bulletin 3 October 2014BPEX Weekly Export Bulletin 3 October 2014


British Pig Executive Weekly Export Bulletin

There are mounting concerns regarding the fall of European pig prices across Europe. Prices have yet to find a bottom.

According to AHDB MI data, global average export prices are up to a record £2.20 per kg. These prices are based on the average sale price from the four main exporters: EU, USA, Brazil and Canada. However, EU export prices are stagnating while our competitors now sell at higher prices.

In a rare occurrence in mainstream press, the Times featured an article describing a shipment of breeding pigs to China and the British presence at VIV in Beijing last week. The show was a great success. Semen orders will need to wait for the full approval as Chinese authorities have not yet completed the process. The absence of US genetics from the Chinese market is certainly opening doors for the export of breeding pigs.

Application forms for the 2015 Export Award are available from the Meat Processing Awards site at: http://www.meatprocessingawards.co.uk/
The conversion to the new computerised system that allows Export Health Certificates to be sent in pdf form has now been successfully completed by the Animal and Plant Health Agency in Carlisle. This allows for a shortening of the postal delay.

The Korean veterinary inspectors raised a technical issue following their visit to the UK two weeks ago. No ban has been put in place but Defra has strengthened advice on this point to the abattoirs and, going forward, will look to negotiate this clause out of the checklist aligning the agreement better with EU practice.

Access to Mexico has suffered a setback. The Mexicans will now apply a pre-listing of export plants and require a full questionnaire to be filled and are requesting a full veterinary inspection. Denmark, France, Germany, Italy, Spain and Portugal have al completed the questionnaire.

Germany

Topigs-SNW results

Turnover of the Dutch pig breeder in Germany rose to €22.9m in 2013 inclusive of royalties. Following years of losses, the company was profitable at €294,000. Topigs claims a market share of 12.4% in Germany. The company sold 633,000 semen doses and launched a new sow, the Topigs-60, which claims more uniform productivity results. (Source, Boerderij Vandaag)

Price loses 25 cents in 4 weeks

The supply of slaughter pigs in Germany at the beginning of October is high compared with current demand from slaughter companies. In some regions, especially in North West Germany, there is an oversupply and slaughter weights are high. Producer organisations responsible for quotation of the recommended price had no choice but to reduce the price. The new recommended pig price of €1.40 per kg is €c6 lower on the week and €c25 down from 4 weeks ago. The German Unity holiday on 3 October reduces demand from slaughters further. Piglet prices are also under pressure as a result, where demand for piglets is weak and supplies are plentiful.

France

French or French

The National Pig Federation is becoming impatient and if the French government does not react quickly, pig producers will start getting into action. FNP wants to see animal feed prices decrease and pig prices to stop falling at the same time. FNP is also pressing the EU Parliament to support pig producers across Europe. Some demonstrations could be organised shortly in stores where, country of origin pig meat is sold, supermarkets will be checked and it will have to be French or French…

GAD

The official offer from SVA was deposited on 25 September and the court will make its decision on 13 October. At the moment, GAD is in receivership and, unless the SVA offer is accepted, should terminate operations on 11 November. Although no reliable information is available about the future of the 900 employees working at the three GAD sites at this stage, some rumours mention the loss of 248 jobs in Josselin, and possibly more in the two other sites in Lampaul-Guimiliau.

PGI and PDO

So far France has 16 charcuterie products benefiting from European quality marks. The first three PDO products have been recently certified and have come from Corsica (lonzo, dry ham and coppa) and the most popular PGI is Bayonne dry ham producing 1.2m hams annually.

Markets

Pigs: No change on the French market. Offers are sufficient for current demand. The 56 TMP base price lost €c1.4 last Monday in Plérin.
Piglets: No evolution on the French market or in Europe. Only the seasonal decline in supplies provides hope for firm prices on the market.
Cuts: According to FranceAgriMer-Kantar Worldpanel, household purchases decreased by 1.6% from 11 August to 7 September compared with the previous four weeks and by -1.1% compared with the same period in 2013. Despite this, from 30 December to 7 September, the tendency was for increased volumes with purchases increasing by +0.3 % compared with the same period last year, including an increase of 0.1 % for ham, 3.1 % for lardons, breast and bacon, 0.6 % for pâtés and +3.2 % for smooth sausages.

Denmark

Markets

The European pork market is reported as pressured although fresh hams and other cuts have traded at virtually unchanged price levels this week. The UK bacon market is reported also on a somewhat pressured sales situation. However, a good trade to China has been reported although high stocks continue to result in a slow trade with China.

Netherlands

Producers’ concerns

With prices falling to slightly above €1.40 per kg, organisations COV, NVV, LTO and Nevedi, grouped in the Pork Chain Platform, are putting pressure on the Dutch government and the European Commission for help to alleviate the impact of the Russian ban. According to Frans Van Dongen, the Brussel-based Dutch lobbyist, the Commission is not yet looking into private storage. (Source, Boerderij Vandaag)

Export push

The Dutch Ministry of Finance has increased budgets to alleviate the impact of the Russian ban on the Dutch food industry. This includes an export push in China, Indonesia, India and the USA. (Source, Boerderij Vandaag)

Belgium

Crisis noises

The Belgian pig producers’ association (ABS) is protesting against the low prices. It wants to lower weights to 105kg carcase. They also want to stop delivering pigs to Belgian abattoirs from 8 December. It is not clear how they intend to achieve this. (Source, Boerderij Vandaag)

Spain

Pig census, on the up

The Spanish breeding herd rose by 5% in the June census following a 3% rise last June. This large increase in itself explains the rise of 1% of the EU breeding herd in this year’s June census. (Source, European Commission)

Weak consumption

Latest data show that Spanish pork consumption has fallen in 2014 to date. This follows a couple of years that saw pork consumption stabilise after collapsing in 2011. The consumption of fresh produce in the first seven months of 2014 was down by 2.5% in volume compared with a year ago, although higher prices have helped to limit the loss of revenue to 1.3%. In contrast, consumption of processed meat from January to July dropped by 5.4%, with similar prices to 2013, total turnover fell by 4.5%. June was a disastrous month for consumption (source: Mercolleida)

Ukraine

Live pig price decreases

Last week, the live pig prices decreased in the Central and Eastern regions of Ukraine. In the Dnipropetrovska oblast, prices for live pigs fell to UAH26 per kg ($2 per kg). Meanwhile, in the Western regions the price remains at UAH 27-28.5/kg. ($2.08-$2.20 per kg.) (Source, pigua.info)

Import restrictions
The State Veterinary and Phytosanitary Service of Ukraine has banned the import of animal products from Donetska oblast. The ban was introduced as it is not possible to effectively monitor animal products supplied from the area due to the military conflict. (Source, ua.korrespondent.net).

Russia

Azerbaijan imports

Sergey Sobianin, the Mayor of Moscow, and Yagub Eyubov, the Deputy Minister of Azerbaijan, signed an agreement on cooperation allowing Azerbaijani meat producers to enter direct agreements with major Moscow retailers. Mr. Sobianin mentioned that the potential increase of food products supply from Azerbaijan to Moscow could grow by as much as 300 times. (Source, szao.mos.ru)

Cherkizovo profit up by 30%

The Cherkizovo Group, one of the largest meat-producing enterprises in Russia, is planning to reach RUB70 billion profit in 2014 compared with RUB52.8 billion in 2013. The company says that the current market situation for pork is much more favorable than in the first six months of 2013 when the average price for pork was RUB55 per kg, in live weight, and now it is over RUB100 per kg. The company also commented that, currently, pig breeding is the most profitable segment of agriculture. (Source, agroinvestor.ru)

Canada

Maple Leaf closes plant

The company has closed its Moncton processing plant in New Brunswick with the loss of 100 jobs. Maple Leaf had operated the 48-year-old plant since 2000. (Source, Canadian Manufacturing)

USA

PEDv conference

The USDA organised a symposium on PEDv to share knowledge on the subject. People from 25 countries attended the conference. BPEX represented the UK. (Source, own)

Triumph Food buying into Seaboard's Food

Seaboard has announced this week that Triumph Food bought half of the shares in Daily's Premium Meats which is Seaboard Foods processing division which produces bacon, sausages, ham and various products. The price dropped to US$72.5m. (Source, various)

Positive mood

Breeding herd numbers on 1 September were up 2%, or by just over 100,000 head to 5.92m. The biggest portion of this expansion was in two states – Missouri which was reported to have 40,000 more and Iowa with 30,000 additional heads. Other states with noted expansions were Texas, up 15,000 head, and then several with 10,000 more: Colorado, Illinois, Indiana, and Oklahoma. However, the number of heavier pigs is down by 6% reflecting the impact of PEDv. (Source, USDA)

Brazil

High prices

Brazilian pork prices are much higher than a year ago, strong domestic consumption and the fact that Brazil is the only major producer that can export to Russia is boosting prices. During the month of August, exports to Russia increased by 16% on the year. Although it only represents a small proportion of Russian imports, it was significant for Brazil. (source: Mercolleida)

Philippines

Growing export destination

Exports from EU to Asia continue to show strong increases, highlighting the strength of the Philippines, which now beats South Korea as the fourth main export destination for pork products. (source: Mercolleida)

China

New export office

German Meat is opening an office in Beijing in conjunction with the German Dairy Export Union. The Ministry of Agriculture is co-funding the project. (Source, AFZ)

 

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