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AHDB Pork Weekly Export Bulletin


25 November 2014

BPEX Weekly Export Bulletin 21 November 2014BPEX Weekly Export Bulletin 21 November 2014


British Pig Executive Weekly Export Bulletin

Unlike the UK outbreak of bird flu eight years ago, the latest case has so far had no impact on market access for pork. South Africa, one of the main markets for British poultry, has banned imports which were already subject to a punitive anti-dumping duty. Other countries have also banned imports of poultry from the UK.

Recently released data, shows September pig meat exports of 17,900 tonnes, 3% higher than in the corresponding month a year ago. Shipments to Greater China, at 4,600 tonnes were 28% higher than year earlier levels and accounted for a quarter of total exports. In the 9 months to September period, exports totalled 144,000 tonnes, up 8% on the year.

During the January to September, UK sausage exports reached 9,800 tonnes, 26% higher compared with the corresponding period a year ago. Export value remains a worry. Average export prices declined for carcase meat to £1.13 per kg (-8.5p/kg y-o-y) while the average price for sausages declined to £1.36 per kg (-25p/kg y-o-y, this latter figure must be treated with caution).

BPEX was joined by four UK exporters at last week’s Food and Hospitality Show (FHC) in Shanghai. This was the 20th edition of this important Chinese show with exhibiting companies from 66 countries participating and the number of visitors up to 34,000 (still less than SIAL China with 49,000 visitors). The BPEX stand was busy throughout the 3-day event, with numerous enquires received.

Traders report a “glut of Danish” pork diverted from Russia that is depressing international prices, affecting markets such as Australia.

France

A Mature Market

Cooked ham represents a quarter of total charcuterie purchases by French households. 93% of French households buy cooked ham 19 times a year, on average; it is the favoured meat for children and, as a portion, it remains cheaper than any other fresh meat. The market is very competitive where processors have to permanently demonstrate innovation and eye-catching. Although the market has marginally decreased in volume, with sales falling by 0.9% to 135,400 tonnes in the 12 months ended June 2014, it has increased in value by 1.4% to €1.48b. The highest selling reference is the superior defatted, rind-off cooked ham, ahead of Paris ham and superior rind-on reference. Most purchases are made in hypermarkets with a penetration rate of 70%, followed by supermarkets with a rate of 50%, hard discount stores with 37.6% and, finally, convenience stores at 34.4%.

PGI Vendée ham

Brussels has now approved PGI status for Vendée ham. This is uncooked ham, deboned by hand, rubbed with dry salt, sprayed with wine alcohol and then spiced with cinnamon, pepper, laurel and thyme. The ham is then wrapped in a stocking and pressed between two wooden planks. 1,500 tonnes of Vendée ham is produced.

Markets

Pigs: The 56 TMP base price lost €c0.6 last Monday. According to “Marché du Porc Breton”, supplies are sufficient to meet current slaughter requirements.

Piglets: The market is stable. Sales are regular and prices are firm. FNP-FNCBV prices are firmer due to the 56 TMP base price being maintained and the beginning of the seasonal decrease in availability of piglets. FNP-FNCBV prices increased by €c3 for 25kg weaners and €c50 for 8kg piglets.

Cuts: During the first seven months of 2014, 64,700 tonnes of pig offal was exported by France, according to FranceAgrimer, which is 4.7% higher than in 2013. The majority of exports were to third-countries (45,600 tonnes, +4%), in particular to Asia. Sales to China increased by 16.3 % (15,400 tonnes). These good figures were moderated by higher imports; 44,800 tonnes were imported from January to July, 26,800 tonnes more on the year. This increase is due to the development of Spanish imports, 23,500 tonnes in 2014 compared with only 4,900 tonnes in 2013.

Germany

Regional surplus of pigs, price unchanged

After several weeks with a mostly balanced pig market, demand from slaughterers is starting to fall slightly below current pig supplies. One large slaughter facility in Germany started to pay €c3 per kg below the recommended price last week. While many producers reported they could avoid selling pigs there, a marginal impact on the market was noticeable.

However, demand from the majority of slaughter facilities is still high and a surplus of pigs is only reported regionally. Even though a price decrease was discussed during the first half of the week, the recommended price again remained unchanged.

Tillman’s new products

US-style pulled pork in a 550g wood-effect box is a new branded product for Tillman (Tönnies). Tillman has also launched a mini donner kebab/giros on stick in a one kilo box. The latter product is sold frozen. (Source, LZ)

Tönnies to produce heparin

The German pork leader is investing €21m in conjunction with a pharmaceutical company in a new plant for the production of heparin from the pig guts from its three pig abattoirs. The fully automatic plant is expected to produce 21 tonnes of raw heparin per year. (Source, LZ)

New Vion rumour

According to Financieele Dagblad, a very serious Dutch daily, Vion is looking to sell its German operation. The issue is that there are only two serious potential buyers: Tönnies and Danish Crown. At the moment, Vion Deutschland is marginally profitable and investments are programmed. (Source, Financieele Dagblad)

Big Dutchman’s innovation wins gold prize at Eurotier

The company unveiled at Eurotier the use of Pulsating Electric Fields (PEF) in cell breakdown of the whole maize plant in the form of maize silage. The system was developed in Germany in collaboration with the Quakenbrück Food Science Institute. Pigs are monogastrics and unable to make use of the whole plant due to the lack of specific enzymes.

The electrical barrage breaks the cells and makes the nutrients available to pigs. The high crude fibre content has health benefits for the pigs. (Source, Hannoverische Allgemeine Zeitung).

Spain

Campofrio’s Burgos plant fire

On 16 November, fire swept through the Burgos pork processing factory, one of the largest in Spain causing the lay-off of more than 1,000 employees. Campofrío has nine manufacturing plants in the country and 30 production facilities globally. The smoke led to the collision of a car and a truck leaving four people injured, the closure of the motorway and the evacuation of local residents (Source: Revista Aral, ABC)

Pork remains leading food export

On 18 November, the Spanish Food & Drink Industry Federation (FIAB) presented the report on “2013 Exports for the Food and Drink Industry: Analysis for the medium and long term”. As for the most exported products, pork continues to lead the way, with sales turnover in excess of €3.000m. (Source: Carnicas 2000).

Denmark

Danish pig census

The latest Danish pig census, released by Statistics Denmark, confirms Danish pig numbers are at their highest level for three years. On 1 October 2014, the total Danish herd was close to 12.81m, nearly 550,000 more than a year ago. Higher numbers were driven by more young pigs, under 50kg, and an increase in slaughter pigs on farm. (Source: Mercolleida, AHDB).

Markets

On European markets, fresh hams traded at similar price levels this week and, likewise, other cuts were reported as being sold at virtually unchanged price levels. Trade on the British bacon market was reported as good steady sales at similar prices.

Hungary

Dunahús is now twenty years old

In 1994, Austrian salami leader Wiesbauer purchased an abattoir in Györ near the border. It invested in a new factory for the production of Hungarian salami in 1998. Products are now sold in Hungary, Germany and Austria under the Dunahús brand (Dunahús can be translated as “Meat from the Danube”). The plant is now being expanded. (Source, Wiesbauer)

Lithuania

ASF controls

An audit by the European Commission on the controls regarding African Swine Fever (ASF) has praised the Lithuanian authorities for their reactiveness. On the other hand, inspection and sampling of hunted wild boars needs to be stepped up as is the passive surveillance of pigs. (Source, European Commission)

Latvia

When there are no pigs

We have received an enquiry from an eager pig finisher in an ASF controlled area looking for large number of lambs to finish for his empty pig pens. (Source, own).

Russia

Temporary Canadian ban

Starting on 14 November, Rosselkhoznadzor banned imports of pork products from Canada after officers found substances in Canadian pork in the course of lab tests, including ractopamine that is forbidden in the Russian Federation. Despite negotiations between the two countries, the Canadian pork sector and veterinary authorities have not been able to satisfy Russian import requirements. The Russian import ban means Canada can no longer export fat and fat products to Russia which were not covered by the Russian embargo of August. (Source, http://www.fsvps.ru).

Ukraine

Pig population slightly lower

According to the State Statistic Service, in the January to October period, the pig population in Ukraine decreased by 1.5%, or 120,300 pigs, compared with a year earlier, to 8,099,800 pigs. The population of pigs bred in private households totalled 4,261,300 pigs while the number on commercial pig farms totalled 3,838,500 pigs. (Source, pigua.info)

Malaysia 

A worthy quote from an EU Commission trade report

“Exporting meat products to Malaysia is difficult due to serious non-tariff barriers in a form of strict (but non transparent) Halal requirements, a cumbersome, costly and non-transparent inspection regime and unclear and often contradictory information from the competent authorities.

For pork meat, moreover, a quota system was put in place on 1 July 2011, whereby import licenses were granted by a committee on a 3-month basis and only to members of one specific importer's association with alleged high level connections… As from December 2013, the previous cut limitation applied under Halal requirement is no longer in place. All parts of pork and pork products are authorised for import. However, imports can only amount to a quantum: import permits are granted in function of storage capacity available at importers for safety reason.” (Source, European Commission)

Philippines

Smuggling on the rise

More than 100,000 tonnes of meat are smuggled without documentation and a further 40,000 tonnes are subject to ‘technical smuggling’ every year, said Senator Cynthia Villar at a Senate committee hearing. The culprit is the high duty of 35% on meat (5% on offal and fats). (Source, Manila Standard)

China

Pork for Russia

According to current news, Russia only buys pork from Heilongjiang. The Northern Province has long-standing ties with Russia. (Source, CNAgri).

More investment for Truein

Truein Group announced that they will raise an additional 1.22b Yuan (£122m) for the annual production of 4 million slaughter pigs and their processing. An additional 0.3b Yuan (£30m) will be used as working capital. (Source, CNAgri)

Mongolia

Classical Swine Fever

An outbreak of Classical Swine Fever was detected on a pig farm.

Australia

Dynamic processed pork market

The market is now worth A$2.01b (£1.1b) driven by growth of the bacon (+4.2%) and salami segments (+2.1%). Overall, the category has grown by 1.2%. Ham is the main product with 34% value share and is mostly consumed at lunchtime in sandwiches. Products such as dry-cured ham and pancetta are becoming more mainstream.

Primo remains the market leader with 24.2%, followed by Don with 12.8% (Don leads the ham segment with 33% market share), Hans (11.8%), KR Castlemaine (8.4%) and D’Orsogna with 8.2%. Branded products still dominate. (Source, Retail World)

Pulled pork (and beef) in Australia too

The pulled pork vogue has now reached Australia with Tibaldi introducing a 125g pack. The firm has been a leading supplier since 1934 and celebrates its 80th birthday this week. Its 300 staff produce 10,000 tonnes of processed meat per annum. (Source, Retail World)

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