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AHDB Pork Weekly Export Bulletin


01 September 2015

AHDB Pork Weekly Export Bulletin - 1 September 2015AHDB Pork Weekly Export Bulletin - 1 September 2015


British Pig Executive Weekly Export Bulletin

Pork exports in June rose by 6% against the same month in 2014 to 14,550 tonnes, with shipments to China increasing by 77% to 2,174 tonnes. In the first half of 2015, pork exports are up 2% to nearly 88,000 tonnes. However, they are down 11.6% in value due to the lower prices. A fall of exports to the EU was compensated by higher Third Country exports. Exports to Greater China have overtaken exports to Germany, with 16,600 tonnes. For the main destinations, exports to Germany and the Republic of Ireland have progressed while exports to Denmark and the Netherlands are down. The most successful markets in the first half of 2015 were Sweden up 53% to 4,760 tonnes, now the sixth largest destination, Poland up 400% to 1,400 tonnes, Côte d’Ivoire up 40% to 1,246 tonnes, the Philippines up 89% to 1,070 tonnes and South Africa up 189% to 800 tonnes. Other successes include Romania, Congo and Australia. Exports to Cyprus and Italy are markedly down, although we would expect Italian data to be revised upwards.
Export of pig offal rebounded in June, up 24% to 5,336 tonnes. For the first half of the year, they are down 5% at 23,500 tonnes, very much driven by China, which now represents a record 48% of total exports.
Meanwhile, EU pork exports reached a new record at 139,000 tonnes for June, up 21% on June 2014 on the back of strong growth of shipments to China.

Germany

Farming crisis makes the headline
Low pork and milk prices are now top news in Germany. Farming unions, consumer organisations and the ruling party, CDU, are looking for solutions. Supermarkets and the red/green political parties are seen to share the blame. “The market does not function any more,” says Johannes Röring of the Westphalia farming union, "and this threatens the very existence of producers”. (Source, Westdeutsche Allgemeine Zeitung)

Protests against Aldi Süd and Rewe
The two retailers plan to buy entire pigs from 2017. This would put German farmers in an impossible situation as there would be no home or export market for the great majority of the carcase. (Source, Boerderij Vandaag)

Wakker Dier new campaign
Lobbying animal welfare group Wakker Dier has launched another consumer campaign against meat supermarket price promotions on television and radio. (Source, Wakker Dier)

Markets
With the end of the holiday season in some regions and lower temperatures, the market for pork cuts is only getting minor impulses. Although sales are below expectations, they were higher than last week. Achievable prices, however, are still far too low for the traders and slaughter facilities. Due to the roughly balanced market situation the recommended price only eased by €c1 per kg. (Source, AMI)

 

Netherlands

Producers threaten actions
Poor prices and negative returns are taking their toll on producers. They are now threatening to take action, as has already happened in France and Belgium. Interestingly, they have some sympathy with processors such as Vion, who are now paid at 90 days by retailers. Minister Sharon Dijksma has acknowledged the malaise but will not do anything before the Agriculture Council of 7 September. (Source, Boerderij Vandaag, various)

Topigs new product
The breeder has produced its first commercial TN70 gilts. It intends to roll out this new female line internationally in 2016. (Source, Boerderij Vandaag)

France

The debate
The €600 million plan to solve the present crisis announced by Mr Le Foll in July could be strengthened. The time has come to discuss the support given to the French pig industry in order to improve the income and morale of all players, especially producers and processors. The Regional Pig Centre (CRP) of Pays de Loire wrote to the French Minister of Agriculture asking to start negotiations in order to lift the Russian ban, the CRP also said it is necessary to restore fair competition in the EU by reducing employment costs in France, VAT and Red Tape. Finally, they also asked the Minister to implement country of origin labelling on all pig meat and meat products.

Invitation declined
According to a joint press release, Coop de France (representing Cooperl and Socopa’s interests) and SNIV – SNCP (representing Bigard) were invited by the Minister to two meetings this week to discuss promotions and contractualisation. Both organisations declined the invitation, stressing these two items are not priority issues:

  • Traditional September special offers (promotions) are already in place with all retailers, also 8,000 stores are presently promoting the “Viandes de France” logo.
  • The present depressed market and general economic environment are not ideal to initiate discussions on contractualisation which cannot happen in a few days.

The two organisations would rather see the French Minister focus on:

  • Implementing the mention of country of origin on all pig meat and pork based products and initiate a campaign encouraging French consumers to buy French products.
  • Supporting exports
  • Reducing French fiscal and social charges that create unfair competition on the European market.

Old slatted floors
In mid-July, thirty pigs fell into a slurry pit in Boistrudan in Brittany. One month before, the slatted floor of a whole unit collapsed in a pig farm near Vitré. Earlier instances have been recorded in Morbihan and on a Saint-Servant-sur-Oust farm. This series of accidents demonstrates the poor state of some old pig farms there and due to the current economic crisis, many pig farmers in Brittany have not managed to modernise their units.

The English model
The UK introduced outdoor maternity huts 44 years ago to reduce outdoor piglet mortality. Several systems and manufacturers have improved the initial model over the years. Freedom of pregnant sows was made compulsory in the UK in 1999 and in the EU in 2013. French producers believe this evolution will also reduce mortality in France, where they have the objective of an upper limit of mortality at 10%.

Markets
Pigs: There has been little variation in recent sales at “Le marché du porc Breton”. Pig supplies are good and stable while demand is still prudent due to the prolonged absence of certain buyers. Prices are stable at around €1.40 per kg for the majority of pigs and a slight decrease for others. The 56 TMP base price gained €c0.1.
Piglets: No evolution has been reported on the French piglet market. Due to the subdued market for pork butchers’, prices continue to ease.
Cuts: With the next promotions at the end of holidays, household purchases will improve. The end of holidays will be good for the catering market too. Offers are extensive enough to cover requirements and prices for cuts is stable.

Ireland

Salvo before the Agriculture Council
Minister for Agriculture, Simon Coveney, met with Commissioner Horgan. He brought with him a wish list for discussion at the meeting of the Agriculture Council on 7 September. This includes more third country promotion and a resumption of private storage aid (PSA) for pork. (Source, Irish Farmers’ Weekly)

Denmark

Markets
On European markets, the trade for fresh hams was sluggish at unchanged or slightly lower prices this week. Prices for other cuts were virtually unchanged. For the British bacon market, sales are reported as stable at similar price levels. On third-country markets, good sales were reported to China, with quiet trading to other markets. (Source, lf.dk)

 

Austria

Pig farmers’ losses
An average Austrian pig producer with 100 sows (Austrian pig farms are still generally small) will lose €30,000 in 2015 according to the farmers’ organisation ÖVP. Low European demand for grilling meat is blamed for the current market malaise. The Austrians expect a package of measures to be unveiled at the next meeting of the EU Agriculture Council of 7 September. (Source, Der Standard)

Spain

Booming exports
In the first half of 2015, Spanish pork exports rose by 14% year on year to a record 596,000 tonnes worth €1.3b. Sales of dry-cured ham are up 21% to 20,000 tonnes. Exports of other processed products are up 13% to nearly 59,000 tonnes. Offal sales are also up. Spanish pork exports faring particularly well in Japan, Korea and to a smaller extent to South Africa. (Source, Eurocarne)

More protest against French exactions
With a total of 6 trucks of Spanish pork now destroyed by French farmers, Confecarne, the overall body representing the Spanish meat sector and various farming organisations, has forcefully condemned the French actions. (Source, Eurocarne on line)

New television campaign
Interporc, the Spanish interprofession has started a month-long television campaign with a nutrition theme with the slogan “Our white meat”. This includes national television channels, thematic channels and cable channels as well as social media. See www.interporc.com (Source, Interporc)

New meat quality project
The universities of Lleida and Iowa are now collaborating on a new project to increase the level of intramuscular fat (IMF) in pork. (Source, Eurocarne)

 

Italy

New producers’ association
The Associazione Nazionale del Suino Liggero Italiano will aim to represent the producers of light pigs. Some 100 producers in the Modena region have expressed interest. (Source, Eurocarni)

Russia

Ukraine should join Russia in combating ASF
Russian Federal Service for Veterinarian Supervision has proposed that the Ukraine should take joint measures in combating ASF. In particular, Russia demanded to raise the effectiveness of epizootic monitoring and quarantine measures and to reduce the population of wild boars. Russia and the Ukraine agreed to exchange epizootic data to eliminate the spread of the disease. (Source, meatinfo.ru)

Large new pig-breeding complex
Miratorg Agricultural Holding Company, one of the largest agricultural companies in Russia, is to build a large pig-breeding cluster in 18 districts of the Kursk region. The project will include 60 pig-breeding complexes, 4 animal feed plants and a slaughter facility with a capacity of 3.7m pigs with a capacity of nearly 350,000 tonnes (carcase weight). Implementation of the project is expected to take four years. (Source, meatinfo.ru)

Ukraine

Lowered pork consumption forecast
According to the latest report of Economic Discussion Club, Ukrainians will consume 10.7% or 92,000 tonnes less pork this year than in 2014. The fall is due to the supply balance predicted until the end of the year. Total consumption will amount to around 768.000 tonnes. Domestic production of pork is expected to reach 740.000 tons, which is 3.1% lower than last year’s volume. (Source, pigua.info)

Pork market capacity decreased
The domestic pig market capacity in the Ukraine during the first seven months of 2015 decreased by 4.4%. Total pork supply over the period amounted to 503.000 tonnes, which is 23,000 tonnes down on the previous year. Ukrainians have consumed 465,000 tonnes of pork, which is ten per cent less than in same period a year ago. (Source, pigua.info)

Pork prices remain under pressure
According to the pig-breeders association of the Ukraine, price expectations on the pig market in the last week of August have been lowered significantly. Increased slaughterings, as small farmers liquidated stock, created excessive supply. However, pork producers remain optimistic and expect stabilisation of prices in early September. Liquidation of small farms will play into the hands of large producers when prices are predicted to increase at the end of the year. (Source, meatinfo.ru)

Belarus

Restrictions lifted
On 26 August, Russia lifted the ASF ban from three Belarus meat factories and permitted them to supply pork to the country. Restrictions were lifted after inspecting the facilities. In 2014 the Russian Federal Service banned the supply of all products from more than 20 Belarus factories due to the threat of ASF, microbial contamination and antibiotics. Belarus completely stopped supplying fresh, frozen and chilled pork to Russia. (Source, pigua.info)

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