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AHDB Pork Weekly Export Bulletin


27 July 2015

AHDB Pork Weekly Export Bulletin - 27 July 2015AHDB Pork Weekly Export Bulletin - 27 July 2015


British Pig Executive Weekly Export Bulletin

A request by COPA-COGECA to reopen Private Storage Aid (PSA) to offset low pork prices and the continuation of the Russian ban was rejected by the European Commission. The letter also mentioned sanitary (SPS) and bureaucratic barriers hindering exports to countries such as Japan, South Korea, Peru and Columbia. In addition, targeted help to most affected countries was requested. Finally, bilateral negotiations with Russia should be allowed. In separate developments; the French asked the European Commission to buy pork reserves to be used as food aid in Greece. The European Parliament grilled the Commission on the lack of progress on Russia, notably on regionalisation regarding African Swine Fever (ASF), that would allow Polish pork exports to Japan. The lack of control of the ASF epidemic and lower slaughter weights were also on the agenda.

Despite a retraction in May, EU pork exports rose by 4% for the period January to May, to 545,000 tonnes and total exports including live pigs, offal and processed products reached 1.152m tonnes (+1.8%). Pork exports to China led the way, jumping by 37% to 370,000 tonnes, a volume matched by a similar reduction of exports to Hong Kong (-37.4% to 98,000 tonnes). According to EU statistics, the UK has now reached seventh position regarding third country exports ahead of Belgium, Italy, Ireland and Hungary at 34,000 tonnes (+23.6%).

With the Chinese pig population down by 11m head since 2013, USDA expects a surge of imports which are likely to top 1m tonnes this year, meaning an increase of 23.5% on 2014. Home production is expected to reach 57m tonnes (+1.5%) and consumption 58m tonnes (+2.2%).

Belgium

Liquidity issue for Flemish pig producers
The Crelan-Index shows that due to current difficult circumstance, Flemish pig farmers face rising liquidity issues. (Source, Boerderij Vandaag)

Delhaize premium
Delhaize will pay an extra €2 per pig to help producers during the current crisis. (Source, Boerderij Vandaag)

Germany

France

Système U supports pig farmers
The independent Breton retailer has suffered from pig farmers’ demonstrations in the west of France and its President, Serge Papin, is calling for peace and for the end of threats and violent demonstrations. He believes the crisis is deep and can only be fixed by the introduction of a minimum price paid to producers at €1.40 per kg. Mr Papin had a meeting with representatives of FRSEA and JA (regional farmers’ union organisations) to establish the payment mechanism allowing producers to be paid above this minimum price.

Where is the mistake?
The retail price of cooked ham is €11.00 per kg, which includes €5.00 for the retailer, €3.50 for the processor and €1.00 for the abattoir leaving €1.50 for the producer. However, the producer is currently not even receiving €1.40 per kg…where is the mistake? FNP is blowing the whistle, as the situation for pig farmers has been deteriorating for too long. With ageing producers and 300 sites going out of production each year, production has decreased by 2% per year since 2010 (and by 10% over 10 years). There has been no profit since 2007, with the exception two breakeven years.

Inspections of sausages and charcuterie products
The DGCCRF (French governmental agency for control of consumer goods and labels) organised 808 inspections at 727 sites (cutting plants, processing plants, in store butchery units). 644 samples were collected resulting in 26.5% abnormalities, 151 warnings, 10 orders and 36 fines. DNA tests detected the presence of pork (11%), poultry (5%) and horsemeat (3%) in products where they should not have been. As far as the horsemeat was concerned, the meat was found in a prepared donkey meat meal, according to the label, albeit at the very small proportion of less than 1%. Forbidden colourings were found in merguez, beef and sheep meat based sausages. Also, several imported charcuterie products contained ingredients that are forbidden in France. DGCCRF concluded that self-inspections are too often inadequate and imports of cheap products from other member states using forbidden products in France create unfair competition.

Markets
Pigs: There is no change on the French market. Prices continue to oscillate between stability and small increases according to buyer/seller negotiations. There is also a lack of competitiveness for export. The 56TMP base price increased by €c0.4 last Monday at Plérin.
Piglets: No changes on the piglets market; tendency is towards a slight decrease, depending on the region in question. No major evolution is expected in the short term.
Cuts: School Holiday combined with the latter part of the month are not good for the cuts market in big cities. The market is better in holiday areas. Exports are very calm.

Netherlands

Weaner producers at risk
The DLV economic organisation believes that with weaners at prices below €30 – current prices are €28. Many weaner producers risk going under. (Source, Boerderij Vandaag)

Spain

Greece

Pork imports down
Imports of Dutch pork, with the Netherlands the main supplier to Greece, are down 75% due to payment difficulties. Some trucks have had to find alternative markets for their cargo. (Source, own)

Canada

Lower Exports
Canada saw its exports loose pace during May with year-to-date shipments falling 5% below year earlier levels. Exports to USA in May were low, although it’s the cumulative year-to-date figure remained positive. Exports to Japan in the first four months of the year were 4% up on the year. However, by the end of May the position had slipped to be 4% down on the year. However, on a more positive note during the month, shipments to China improved. (Source: Mercolleida)

USA

Increased production forecast
USDA’s Economic Research Service (ERS) released estimates for second-quarter total red meat and poultry. The report predicts that for the first time since 1950, the industry will produce more pork than beef in 2015. USDA forecasts this year’s commercial beef production will total 10.8m tonnes, which is revised down from earlier forecasts. Whereas, commercial pork production is set to reach 11.14m tonnes. (Source, Eurocarne and NAMI)

USA negotiations with South African
The Americans are again negotiating to unlock access for US pig meat to the South Africa market. Since 2013, EU exports to the African country have steadily been increasing and the EU has become the leading foreign supplier of pork to South Africa. In 2014, Brazil returned to export to South Africa and Canada is exporting more to this market. (Source: Mercolleida)

Costa Rica

Latin America showcase
The fifth edition of the US Meat Export Federation (USMEF) Latin America Product Showcase took place in San José, Costa Rica. 44 US meat companies interested in exporting to this region of the Americas joined the event. The Showcase was also attended by 90 of the largest buyers from 16 countries. According to USMEF, between Jan-May 2015, the US exported 31,257 tonnes of pork to Central and South America, with an estimated value of US$132.8m. Exports to the Caribbean Region totalled 18,024 tonnes valued at US$43.7m. It should be noted that the US has signed Free Trade Agreements with Dominican Republic, Chile, Colombia and Panama among others. (Source: Eurocarne)

Mexico

Dumping accusations
On 14 July, “El Financiero” daily newspaper reported that the Mexican pork industry organisation believes that some US pork enters the Mexican market at dumping prices, causing unfair competition and economic damage. (Source, CN Agri)

Hungary

Stabilisation of pig population
The June census shows a pig population of 3.1m (+64,000 year-on-year) with 2,000 more sows. This indicates the beginning of a stabilisation of pork production following years of decline. (Source, www.portfolio.hu)

China

Turnaround confirmed
A price study in Heilongjiang confirms the rapid turnaround of the Chinese pork sector and the upwards price trend in the second quarter. (Source, CN Agri)

French cooked ham in China
Following an agreement signed with the distributor Sidonis at SIAL China, Broceliande will market “Jambon bien élevé” (ham well brought up). The objectives are for 50 tonnes in 2015 and 200 tonnes in 2016. (Source, Porc Magazine)

SIAL China report
SIAL China is certainly pulling ahead as the largest food show in China. With 61,000 visitors and 2,700 exhibitors, it is twice as large as FHC, which counts 34,000 visitors and 1,100 exhibitors. FBIE in Shanghai, IFE in Guangzhou and CIMIE also attract a similar number of visitors as FHC. Some 7% of exhibitors at SIAL (about 200) come from the meat sector. (Source, SIAL, own)

 

Russia

More or less
Data from the Russian Ministry of Agriculture shows pig production increased by 8% to 1.21m (liveweight) tonnes between January and May this year. However, latest analysis from FA0-OECD indicates that there hasn’t been a significant increase in Russian pork production since the embargo began. The main effect has been the switch of external suppliers and a sharp decline in imports. During 2014, Russian pork imports declined by around 41% while Brazil increased its share of the total import market from 21% in 2013 to 72% in the last quarter of 2014. (Source: Mercolleida)

New outbreaks of the ASF
New cases of ASF were registered in private households in the Bolkhovskiy, Znamenskiy and Dmitrivskiy region in the Orlovskaya oblast. Local administration and veterinary authorities took measures to eliminate the epicentres and slaughtered pigs in risk areas. A new outbreak was also registered in the Navlinskiy region of Brianskaya oblast on 16 July, Lab tests on meat samples taken from a wild boar found dead in the region proved positive. (Source, meatinfo.ru)

Ukraine

Higher pork production
According to the State Statistic Service, during the January to June period, total chilled pork production in the Ukraine totalled 116,000 tonnes, 3.8% more than during the same period in 2014. Specifically, June production amounted to 20,300 tonnes, 6.3% more on the year. The volume of frozen pork produced during the first six months of the year was 9,700 tonnes, up 64.9% compared with the same period a year ago. (Source, pigua.info)

Russia lifted bans for import from three enterprises
On 20 July, Rosselkhoznadzor lifted bans on imports of meat and meat products from one more Ukrainian company, the Cherkaska Food Company. The ban was also lifted for two Serbian companies, SZTR Durdevic and Koteks DOO. (Source, pigua.info)

ASF registered in Sumska oblast
In Tarasovshchyna, Sumska oblast (16km from the Russian border), corpses of two wild boars were discovered and Lab tests on samples from these corpses showed the cause of death to be ASF. (Source, pigua.info)

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