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AHDB Pork Weekly Export Bulletin


21 September 2015

AHDB Pork Weekly Export Bulletin - 21 August 2015AHDB Pork Weekly Export Bulletin - 21 August 2015


British Pig Executive Weekly Export Bulletin

The Chief Veterinary Office visited Beijing last week to host a workshop on TSEs in ruminants. He met and pressed AQSIQ and CNCA for the completion of the reports of the inspections which took place earlier this year.

AHDB participated in the Restaurant & Bar show in Hong Kong (8-10 September). This event is well attended by Hong Kong and Macau food operators. Our penetration in retail and food service with branded pork, sausages, bacon and pies in premium food outlets is increasing steadily. This includes the recent listing of Melton Mowbray pork pies in major retailers. See below update on the trading situation in Hong Kong.

More details of support EU schemes have emerged following last week’s Agriculture Council. The EU will allocate an additional €30m specifically for dairy and pork promotion (>70% for export). For the first time, lard and offal will be included in the Private Storage Scheme (PSA).

Netherlands

First demonstration of pig farmers
In Den Haag about one hundred Dutch pig producers demonstrated in front of the Parliament for an increase of €c20 per kg in the pork price and a reduction of red tape on environmental and animal welfare issues. During this media-friendly affair, organised by pressure group Actie 20 Cents and Ingrid Jansen of producers’ organisation NVV, free ham sandwiches were offered to the public. (Source, Boerderij Vandaag)

Genetic variation remains high
Good news for pig breeders. Unlike dairy genetics, porcine genetic variation remains high which should allow further genetic progress in the future. The study, conducted by Wageningen UR, examined the genome of 104 wild and domesticated pigs. (Source, Voerderij Vandaag)

France

 

The conclusions of IFIP
According to the French Institute, France is the least competitive of the five main producing countries in Europe (with Germany, Spain, Netherlands, Denmark), why is that?

  • Environmental measures are more rigorously implemented in France
  • Limited investment over the last 20 years, farms have aged and performance has deteriorated
  • Complex relationships with processors and retailers (less partnerships compared with Germany)
  • Lower exports with an increasing deficit in value

The result is that German production increased by 24.1% from 2002 to 2012, while it decreased by 5.4% in France. Today Germany is the largest European producer with 58m pigs slaughtered in 2014 compared with 24m in France. Denmark and the Netherlands have also invested in their industry more than France. However, France has invested twice as much as Spain.

Fleury-Michon
Following a very dynamic first quarter when turnover increased 8.4% to €182.1 million, the trend was confirmed in the second quarter for the French charcuterie leader. Turnover was again higher, increasing by 6.5% to €192.4m. The group performed better than the market average on both its main two market segments. Firstly, charcuterie increased by 8.9% over the first 6 months of the year, including an increase of 1.3% with French retailers. Secondly, a 5.7% increase in the prepared meal segment, including a 7.2% increase for Fleury Michon branded products and 5.1% increase with French retailers.

La Lampaudaise
Not all charcuterie processors are prospering, the company La Lampaulaise de salaisons, part of the FTL group led by Monique Piffaut, are cutting staff by 85 in Ergué-Gaberic in Brittanyand by 53 in Lampaul – Guimiliau. Both sites belonged to Jean Caby (taken over by FTL in January) and this reduction of 138 jobs was part of the deal. Automated equipment will be installed in the “lardons” factory in Ergué-Gabéric and the deboning activity will remain at Lampaul-Guimiliau.

Markets
Pork: The week began with an increase of €c0.3 last Monday at Plérin. The rise in prices in northern Europe is good for the French market. Offers seem to correspond better to current demand from abattoirs than in previous weeks.
Piglets: According to the Pork Institute, the price of pig feed stabilised at €239 per tonne in July. For IFIP, lower prices and the confirmation of good world supply in cereal and oleaginous in 2015/2016 should play a moderating role in the feed price over the coming months.
Cuts: As is the trend at this time of year, promotions come to an end and the restocking of fresh meat decreases. Therefore, the second half of September is never a good period for the market. On the export side, “origin France” is still not very competitive, even with the price differential decreasing compared with other north European markets.

Germany

Markets
Increasing numbers of slaughter pigs in Germany have led to a much more balanced market. Current demand from slaughter facilities means available pig supplies can, mostly, be sold without delay. However, difficulties continue to be mentioned on the meat market. Sales are reported to have been lower, prices have mainly remained stable but loin prices were the exception, easing marginally. Nonetheless, due to the widely balanced pig market, the recommended price remained unchanged at €1.48 per kg. It is likely, however, that downward pressure will increase in the coming weeks. (Source, AMI)

Spain

China

Italian breakthrough
The Italians aim to start exported cooked products such as Mortadella to Mainland China very soon. They already have access for dry-cured ham and salami. (Source, own)

Boar taint with Chinese consumers
A large study with German, Italian, French, Polish, Dutch, Russian and Chinese consumers on burgers made with pork (20% fat) from entire males did not show differences between European countries. When skatole and androstenone levels are respectively below 0.12 µg/g et 0.67 µg/g of fat, only 5% of European consumers are unsatisfied. Chinese and Russian consumers were more sensitive to boar taint than European consumers. This confirms our views. (Source, IFIP)

Liu Yonghao
In an interview, the Chairman of New Hope, now one of the leaders of the pork and agri sector with 80,000 group employees, talks about his career. He was born in 1951 from educated parents and, as such, sent to work on farms at 16 during the Cultural Revolution, which in China is called a ‘sent down youth’. In 1982, he sold the family’s prize possessions, a bicycle and a watch, to raise cash to fund a quail and chicken breeding business. Following diversification in the feed business, he funded New Hope in 1992. He is now China’s 30th wealthiest man. He is not ostentatious and his hobby is growing vegetables at his home in Chengdu. He thinks poverty is an integral part of his success, “I never had proper shoes before the age of 20 and I was almost always hungry”. (Source, FT Asia)

Poland

JBB to build new cutting plant
The pork processor and sausage producer is building a pork cutting plant in Dyleno, Masovia, Eastern Poland, creating 100 new jobs. JBB, created in 1992, currently employs 1,300 staff and is based nearby in the village of ?yse. The company aims to increase exports from their current level of 10% and are targeting the UK, Germany, the Benelux, Lithuania, Georgia and Azerbaijan. (Source, Global Meat News)

Russia

Transit of pork fat blocked
Rosselkhoznadzor prevented the transit of a 21 tonne consignment of Belgian pork fat, destined for the Ukraine, through the territory of the Customs Union. The consignment was stopped at the Shumilkino checkpoint on the Estonian-Russian border. The reasons were firstly, the certificate accompanying the pork fat was issued for fresh pork meat. Secondly, there were discrepancies in the weight indicated on the accompanying documents of 21,483kg which varied from the actual weight of 23,197kg. The consignment was sent back to the consignor. (Source, agravery.com)

Miratorg export plans
According to the head of the Miratorg Board of Directors, Aleksandr Linnik, by the end of 2016 the company is planning to export up to 15% of its production. Firstly to China and Brazil and then Canada and the UAE. The Chinese Chief Veterinary Officer has already visited Miratorg farms and, according to M Aleksandr Linnik, their negotiations with China are at the final stage. In 2015, the company has so far exported 1,500 tonnes. (Source, pigua.info)

Pig population and pork production update
On 1 August total population of pigs in Russia amounted to 22 million, +7.3% compared to the results as of 1 August, 2014. As for pork production, during January-July 2015 total volume amounted to 1.25 million tons in slaughter weight (1.7 million tons in live weight): +7.6% compared to the results of the same period in 2014.

Total volume of import of pork (chilled and frozen), pork fat, and by-products in Jan-July 2015 amounted to 157,200 tons (-40.1% compared to the same period in 2014).

According to the provided data, there was deficit of pork on the Russian market during Jan-July 2015, the 

Ukraine

Pig population
According to the data provided by the Ukrainian State Statistic Service, as of 1 September, the pig population in the Ukraine totalled 7,772,700 pigs. At this level, numbers were down 3.1% or 246,700 head compared with the corresponding results of a year ago. (Source, pigua.info)

USA

More, cheaper pork
With production expected to rise by 6% this year and with US$ remaining at high levels, pork prices are expected to be under a great deal of pressure this year, particularly as market gains against beef reverse due to falling beef prices. Production should level off next year. (Source, Denver Post)

Chipotle under pressure
First came the news of lawsuit against the Chipotle’s description of its GMO-free offer by a Californian woman that was widely reported in the US press, now a salmonella outbreak has been linked to some of its Minnesota restaurants. Minnesota has also been hit by another salmonella outbreak, this time from cucumbers but much less reported. There seems to be some schadenfreunde in the US food sector about Chipotle’s troubles due to their alternative views on food production. (Source, www.meatpoultry.com)

Hong Kong

Trading recovery
Discussing with traders, 40,000 to 50,000 containers are reportedly stuck in Hong Kong harbour. Most of it is beef and lamb with a majority of frozen Brazilian and US beef with high value. This is slowly being resolved as Chinese demand remains strong and authorities have turned slightly more lenient on imports. There are still of course massive issues. The value of some containers is now negative due to the high cost of container storage in Hong Kong. Beef and lamb commodity, weighed down by the large stocks in Hong Kong and Mainland China, are low on a historical basis. The outlook for pork is better due to much lower stocks. (Source, own)

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