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AHDB Pork Weekly Export Bulletin


31 March 2015

BPEX Weekly Export Bulletin - 31 March 2015BPEX Weekly Export Bulletin - 31 March 2015


British Pig Executive Weekly Export Bulletin

Belgium

Duroc crosses for Carrefour

With Delhaize having choices of omega-3 pork, Carrefour has opted for premium pork from Duroc crosses supplied by Westvlees. The price difference is only 10% against standard pork at wholesale. At the moment 8 farms supply 700-900 pigs per week. (Source, Porc Magazine)

Netherlands

Cargill nutrition centre

The Dutch experimental site of Velddriel has now benefited from a total of £2.5m and integrates the Provimi expertise. It works in tandem with Elk River in Minnesota and 13 trial farms. The Cargill Nutrition Platform analyses technical, environmental and economic data for the optimisation of feed composition. The database includes 1,800 ingredients, 2m samples and the production of 10m formulations per annum. The system is regularly updated to include the latest technical developments and trial results. (Source, Porc Magazine)

Storetelder the new boss of Vion pork

Frans Stortelder is well known in the pork sector for having been managing director of Sturko and Dumeco in the past. Recently, he was the managing director of Jutland Meat in Denmark, which has now closed. (Source, Boerderij Vandaag)

France

Crisis

The specialised Institute “IFIP” and the Producers’ union “Confédération Paysanne” have both expressed concerns to the French government about the difficult situation faced by the industry. Both organisations are expecting additional support from the State and Confédération Paysanne is claiming that production is profitable but the industry loses competitiveness at the slaughtering/processing level. IFIP is not blaming the industry but believes that the race for low prices is responsible and limits the benefit from any added value in the chain. It also believes some solutions could be found on export markets. The French union (CP) is asking for direct support to smaller farms (family farms with less than 200 sows).

Controls

Out of 1,690 charcuterie products recently examined by DGCCRF (French agency responsible for food controls) only one (pig head terrine) was found to be unsafe.

AIM

The group that went into receivership on 6 January has been given an extended deadline of 27 March to present an offer for the take-over of the pig meat plant in Ste Cécile. The employees are preparing a SCOP (producers’ cooperative enterprise) which would maintain between 200 and 250 jobs. The employees found €8m, including €2m from local authorities (the region and the county), €5m from the bank BPI and €0.5m from the employees themselves who returned to work on 11 March following a 3 week strike. There is still €3m to be found and the SCOP is hoping that the French government will be able to fill the gap.

Markets

Pigs: Prices were stable across the EU this week, including Gerrmany and Denmark. In Spain the market is balanced and fluid, retaining its competitiveness. Across the Atlantic the tendency was bearish in the US last week and bullish 7 days earlier in Canada. To note, according to the website 3tres3.com the number of Canadian pigs reached 13.2 million, a 1.7% increase compared with last year; thus 1.2 million breeding pigs (+ 0.5%)
Piglets: The European market remains divided between measured offers and regular orders, nevertheless, the tendency was towards caution due to a chronic lack of certainty about price changes for charcuterie pork in the medium term.

Germany

Sow cooperation between Danish Crown and Westfleisch

Danish Crown and Westfleisch are merging their sow operations under a joint venture called “West Crown” jointly (50/50) owned. Danish Crown slaughter 325,000 sows per year while Westfleisch slaughter 350,000 sows per year in Schöppingen near the Dutch border. Danish Crown will bring quality sows and Westfleisch its processing expertise to the venture. The merger is subject to approval by Brussels’ competition authority. (Source, Lebensmittel Praxis)

Shortage of organic pork

Due to high demand from German and Dutch supermarkets and discounters, organic pork is short and prices are rising. They were around €2.80 per kg last year and have now reached €3.20 per kg. (Source, Boerderij Vandaag)

Massive growth of productivity

Over the last ten years, sow productivity has risen from 20.5 pigs weaned per sow per year to 28.1. There are now fewer sows in Germany. However, the number of weaners and slaughter pigs imported has also risen. (Source, Boerderij Vandaag)

UNOX innovation

The internet site of the well-known sausage producer has links to farmers. This includes one Scottish farm with 2* Beter Leven. See www.unox.nl/nl/onze-boeren (Source, Unox)

Markets

The German slaughter pig market is currently roughly balanced. During the first half of the week, numbers of available pigs were slightly lower as several producers held pigs in anticipation of a price increase and therefore waited until the second half of the week to deliver their pigs. However, slaughter facilities cautioned due to the problems on meat markets and the loss of two slaughter days within the coming weeks and prices remained unchanged. The recommended price remained unchanged at €1.40 per kg. Due to the Easter holidays, demand is predicted to decrease slightly next week. A price increase is expected by most market participants by mid-April at the latest. (Source, AMI)

Spain

Protest against Spanish meat burning in France

Anice, the Spanish meat processors’ association protested against the burning of a truck loaded with pork from Campofrio by French pig farmers last week. (Source, Eurocarne on line)

Denmark

Markets

On European markets fresh hams traded at slightly higher prices this week. Loins also traded at slightly increasing prices while prices for other cuts remained virtually unchanged. The British bacon market is reported as stable. For third-country markets outside Europe, stable sales to both Japan and China were reported. (Source, lf.dk)

Poland

Control of wild boars essential

Several Polish regions are reported to be planning strategies to decrease the number of wild boar in order to avoid new outbreaks of African swine fever in the country's commercial pig herds. (Source, Weekly Tribune)

Russia

A further ASF outbreak

A new outbreak of ASF was registered on 20 March in the territory of Zhirnovskiy region, Volgogradskaya oblast in a private household. Five of the 36 pigs in the household died. Currently, measures are being taken to prevent further spread of the disease. (Source, agravery.com)

Ukraine

Prices for pigs in live weight increased

On 23 March the average price in for pigs in live weight in Ukraine increased as a result of tight supplies in a number of regions combined with some Easter driven demand. In the western regions the price was UAH30-32 per kg ($1.38-1.47 per kg), in the eastern regions UAH29-30 per kg ($1.33-1.38 per kg) and in the central regions UAH28-30 per kg ($1.29-1.38 per kg). Meanwhile, the average retail prices for pork were the following: loin – UAH89.65 per kg ($4.13 per kg), steak – UAH79 per kg ($3.64 per kg). They are expected to increase next week, following the price increase on the wholesale market. (Source, pigua.info)

Belarus

Belarus considers Russian imports

According to the Head of the Foreign Economic Activity Department at the Ministry of Agriculture, Belarus is considering the possibilities of importing pork from Russia. The import of pork from Russia was temporary banned due to the outbreaks of the ASF in the country but imports may be resumed after inspection of meat-processing enterprises in Russia by Belarussian inspectors. (Source, belta.by)

Thailand

Prima Meats invest in Thailand

The Japanese pork processor has invested in a new plant for the production of premium ham, bacon and sausages for the local market as well as export to Singapore. The company also aims to eventually export to Japan. Prima Meat is a Tokyo quoted company created in 1931 with a turnover of £1.7b. (Source, various)

New testing regime for beta-agonists

The government has introduced a new faster test to detect beta-agonists in meat. Illegal administration of the drug remains a problem in the country. (Source, Asian agri-biz)

Asia

Good prospects for the premium pork segment

Until recently, pork was only available to Southeast Asian consumers in freshly slaughtered form, but the introduction of further processed pork and modern retailing has changed this state of affair. Today, premium pork products make up one of the fastest growing segments in the processed pork industry, and according to all indications, will keep rising. (Source, Asian Agri-biz)

Cuba

Record pork production

In 2014, Cuba produced 170,000 tonnes of pork (+19,000 tonnes on 2013), a new record. Cuba has imported Canadian genetics in recent years. (Source, Eurocarne)

Dominican Republic

New quotas for US pork

The Dominican Republic has opened new quotas of 7,500 tonnes of pork and 1,000 tonnes of pork fat from the USA for 2015. (Source, Eurocarne)

Colombia

CSF outbreak

An outbreak of Classical Swine Fever has occurred in Colombia, leading to the death of 191 pigs. (Source, The Pig Site)

Brazil

Pork exports down

With the rouble sharply down, the value of crude oil also lower and the economic crisis affecting domestic demand, Brazilian pork exports to Russia have shrunk sharply leading to a fall of overall exports of 24% in volume and 26% in value in January and February when compared with the same period of 2014 to 54,500 tonnes. (Source, Eurocarne)

USA

Smithfield’s profits up

Smithfield, a subsidiary of WH Group Ltd, reported fourth-quarter net income climbed to £102m versus 23m a year ago, due to the performance of its processed meat division, particularly bacon. Sales rose 5% to £2.7b in the fourth quarter. Sales in the packaged meat division increased 10% to £1.5b helped by market share gains for Smithfield-brand bacon, ham steaks and marinated pork, Eckrich cooked dinner sausage, Gwaltney packaged lunchmeat and hog dogs, Kretschmar deli meats and Margherita dry sausage. Sales grew for retail, foodservice and export. Operating margin in the hog production unit was 8%, or about £10 per head. Lower input costs and higher live hog prices due to PEDv bolstered results despite the company selling 14% fewer pigs. Live hog market prices increased 15% in the fourth quarter from a year ago on reduced supplies due to PEDV. Smithfield said its fresh pork processing operating margin fell to 2%, or £2 per head, hurt by a double-digit increase in raw material costs with 7% fewer pigs. (Source, Smithfield Foods)

Proposed merger between Heinz and Kraft

The proposed merger has some meaty implications. Kraft Foods own Oscar Meyer meat processing interests. Oscar Meyer is a famous brand established in 1883. Both groups also own a raft of ready meal companies. Despite their large size, Kraft and Heinz only operate from 13 factories with the various brands manufactured under one roof. Turnover of Kraft is about £12.2b and turnover at Heinz £7.2b. The new majority owner would be Brazil-based 3G-Capital (backed by Berkshire Hathaway), which has already acquired Burger King and Heinz in recent years, pursuing big cost cuts from savage staff retrenchments. 3G Capital hopes a Kraft deal will achieve "synergy benefits" near £1b within the next 2 years - no doubt including more widespread job cuts. (Source, Kraft, Heinz)

Australia

JBS buys Primo Small Goods

The Australian competition has agreed the takeover of Primo by JBS, the world’s largest meat processor. Primo is the undisputed leader of the Australian pork processing sector with a strong retail brand. Primo is also a major importer in its own right. The firm owns five factories in Australia and New Zealand. (Source, AFZ)

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