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AHDB Pork Weekly Export Bulletin


29 June 2015

AHDB Pork Weekly Export Bulletin - 29 June 2015AHDB Pork Weekly Export Bulletin - 29 June 2015


British Pig Executive Weekly Export Bulletin

UK pig offal exports rebounded in the first four months of this year to 13,740 tonnes (+11%). Exports have clearly changed emphasis over the last 3 years away from European markets (Germany, Holland, Eire, Belgium) towards Greater China. Exports to Greater China rose from 25 to 68% of total offal exports between April 2013 and April 2015.

Despite a fall of 2% in April and the loss of the Russian pork market, EU exports for the first four months of the year are still up 9% year-on-year to 513,000 tonnes. EU exports in April were clearly dominated by a rise of 65% of pork exports and 50% offal exports to Mainland China.

France

Special offers
According to FCD (French Retailers’ Federation), the limiting of special offers to January and September only will not solve the productivity issue for French pig producers. The point of view of the French Pig Producers’ Federation is very different, as their President Paul Auffray is keen to see special offers ring fenced also during January and September. Two retailers: Intermarché and Leclerc (both originated form Brittany) confirmed they will increase pork prices paid to their suppliers. Carrefour has a more cautious approach and claimed that in the future they will follow and pass on price fluctuations more closely…

Market data for week 24
Pigs:
No increase in prices. 56 TMP base price lost 0.1 cent last Monday at Plérin. There are plenty of offers due to the unsold stock from last Thursday. According to “Marché du Porc Breton”, the more attractive German and Spanish meat prices will induce more imports.
Weaners:
Offers are good but prices are under pressure.
FNP-Coop de France indices gained 6 cents for 25kg piglets and 1.08 € for 8kg piglets.
Cuts:
Consumption is not very lively due to the end of month and also due to the imminent school holidays. Prices for cuts are stable or slightly decreasing.

Belgium

Unequal merger of Delhaize and Ahold
The merger of the Dutch and Belgian retailers should be completed by 1 July 2016. The new company Ahold-Delhaize will be 39% Belgian and 61% Dutch reflecting the larger size of Ahold and will be based in Zandaam with a Dutch MD but listed in Amsterdam and Brussels. The European operation will be managed from Brussels. The merger will create a huge retailer with turnover of €54.2bn, 6,482 stores and 377,000 staff. The price of grocery goods is likely to fall in Belgium and the Delhaize brand will be retained. Delhaize has a stronger record with fresh food. Some 25-30 new stores are planned this year; the future of the Albert Heijn brand in Belgium is unclear. See also USA below. (Source, Le Soir)

Netherlands

“Government is sometimes Kafkaesque”
So says Hans Bleker the old State Secretary, now Chairman of Vee & Logistiek Nederlands, the organisation representing livestock traders and transporters. He adds that bureaucracy and highly complex legislation are costing the livestock sector “millions” of Euros. (Source, Boerderij Vandaag)

Germany

Further price fall
Once more, the low sales and comparably low prices for pork cuts have a large impact on the market for slaughter pigs. Almost all large slaughter facilities lowered their quote again this week. Even the comparably low numbers of slaughter pigs are hard to sell and surpluses are mentioned all over Germany. In addition, the summer holidays are going to start in the first regions over the next few weeks which will further reduce demand. Due to the large problems, the producers in Germany had to reduce the recommended price down to €1.40/kg. (Source, AMI)

Edeka meat works expand
Edeka, the largest German retailer, continues enlarging its own meat processing plants. These include Edeka-Südwest (turnover €620m), Bauerngut (turnover €535m), Rasting (turnover 455m), Nordfrische Center (turnover €283m), Südbayerische Fleischwaren (turnover € 286m) and Franken-Gut Fleischwaren/Hessengut (turnover € 221m). These generated a total turnover of €2.63b in 2014, an increase of €32m on 2013. Edeka is investing heavily and renovating its older plants. For instance, €80m was ploughed in Edeka-Südwest Muster plant last year. (Source, AFZ)

Spain

Still higher exports
Spanish meat exports exceeded 700,000 tonnes in the first quarter of the year worth € 1.64b according to ICEX-Estacom with pork and pig offal again the best performers. (Source: Eurocarne)

 

Ireland

Study tour for pig farmers
A group of pig farmers led by Bord Bía visited the Canadian pork sector. The pork chain is now highly focused on the Japanese market and the production of marbled pork with an extended shelf life of 55 days. (Source, Irish Farmers’ Journal)

European Union

More cartels
The European Commission has fined eight manufacturers and two distributors of retail food packaging trays a total of €115m for their participation in at least one of five separate cartels. The eight manufacturers are Huhtamäki of Finland, Nespak and Vitembal of France, Silver Plastics of Germany, Coopbox, Magic Pack and Sirap-Gema of Italy and Linpac of the UK. The two distributors are Ovarpack of Portugal and Propack of the UK. (Source, European Commission)

Ukraine

Pork forecasts
During January-May 2015, Ukraine produced 366,000 tonnes of pork which is 38% of total production of meat and meat products in Ukraine during the period. The volume of pork production is 31,000 tonnes less than during the same period in 2014. Total volume of pork production in 2015 is forecast to be 760,000 tonnes. (Source, pigua.info)

Russia

Production in Krasnodarskiy Krai will grow
With the launch of new breeding complexes in Krasnodarskiy Krai, pig population in the region is forecast to grow to 460,000 pigs per year. These include the Dan-Kub pig breeding complex with 60,000 pigs total capacity in Krasnoarmeyskiy region and agricultural company Oktyabr pig breeding complex with 57,000 pigs capacity. (Source, agro.ru)

China

Antibiotics abuse is a risk
The high use of antibiotics in pork production is putting the population at risk of infection by antibiotics-resistant bacteria. We have reported on this issue in the past that affects not only China but the whole of Asia. (China Economic Review)

Profitability up again
Following two difficult years, profitability of pig production is up again. Average margins for slaughter pigs (for full cycle) are up to RMB 200/head (£20.46) with profits at the most modern and efficient producers considerably higher. Although pork prices are rising, lower feed costs are the main reason for this improvement. (Source, CNAgri, various)

 

Brazil

Positive forecasts
French forecasts show a continuing rise of Brazilian pork production towards 3.7m tonnes by 2018. The greater part of this increase will be consumed at home. Exports fell in 2014 to 495-505,000 tonnes despite higher demand in Asia and less competition in Russia. They are not expected to rise over 650,000 tonnes by the end of 2018. (Source, Porc Magazine)

Korea

More on Middle East Respiratory Syndrome (MERS)
Since MERS was first confirmed in Korea on 20 May, 172 cases have been diagnosed and 27 deaths have been attributed to the disease. MERS is having a “significant” impact on Korea’s economy – and meat consumption - as consumers avoid shopping malls, restaurants and other crowded locations. The MERS epidemic now stabilised is the largest outside Saudi Arabia where the disease originally jumped from camels to humans. It is linked to poor hygiene in Samsung Medical Centre in Seoul, generally considered the top hospital in the country. (Source, New York Times)

USA

New retail giant
The new merged company Ahold-Delhaize will generate 60% of its revenue from the USA and will be the fourth largest retailer after Walmart, Albertson-Safeway and Kroger with 4.6% market share. The stores are located on the East Coast but the overlap of Giant and Stop and Shop (Ahold), and Hannaford Bros and Food Lion (Delhaize) in minimal. (Source, Le Soir)

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