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AHDB Pork Weekly Export Bulletin


26 October 2015

AHDB Pork Weekly Export Bulletin - 26 October 2015AHDB Pork Weekly Export Bulletin - 26 October 2015


British Pig Executive Weekly Export Bulletin

More than 3,500 trade visitors attended the AHDB meat pavilion at the five-day Anuga show. The busy kitchen served more than 1,300 meat tasting dishes to guests, setting new records for our busiest ever overseas trade exhibition. These included sophisticated dishes such as a Small Burger of Pulled Pork and Homemade Relish. Although the pavilion included eight individual exporters’ booths, all marketing British pork products, many more exporters joined to do business in the hospitality area. The pavilion was visited by Minister for Food and Farming, George Eustice. A 20-strong high level delegation from the Chinese Meat Association was hosted by AHDB on the stand, with a pork lunch. There were numerous commercial and media meetings. The 24th British Meat Dinner, at the Wolkenburg, was viewed as a success with nearly 300 hundred guests attending, including many from overseas. There were a total of 7,000 stands from 108 countries at the fair, which attracted 160,000 visitors, 68% coming from foreign countries. This set a new record, making Anuga “unparalleled in terms of a marketing and communication platform”.
A new report from Rabobank points to a halving of margins for primary pork processing in Europe for the period 2007-2013. to 1.6%. The best operators generate margins of 5% to 6%. Reasons for the higher results include five factors: efficiency, cheaper inputs, good market strategy, direct access to retailers and investment in innovation.

European Union

The EU feed sector
A new report by the European Commission throws some light on the important EU feed sector. The turnover of the EU feed companies has increased by 50% over the last eight years, whereas the number of companies decreased in most countries by more than 15%. The five largest feed producers in Europe are For Farmers B.V., Nutreco, DLG Group, De Heus and Agrifirm Feed. The market share of the largest producers are: 38% in Germany, 44% the UK, 53% in Poland, 63% in Belgium and 69% in The Netherlands. (Source, European Commission)

Germany

Record slaughter
In the first six months of 2015, the number of pigs slaughtered in Germany rose by 2.3% to 29.3m, resulting in an increase of 67,000 tonnes of pork. However, fewer slaughter pigs were imported. (Source, Boerderij Vandaag)

Top 10 in pork
Tönnies again leads the German ranking, with 17m pigs slaughtered in 2014 and an unchanged turnover of €5.6b. Vion fell further at 8.9m pigs for a total turnover down to €3.3b. Westfleish turnover is unchanged at €2.5b and 7.6m pigs. Danish Crown comes fourth with 2.6m pigs. These were followed by Müller (1.8m), Böseler (1.7m), Vogler (1.5m), Tummel (1.5m), BMR (1.3m) and Wittlich (1m). (Source, AFZ)

Top German exporters
Westfleisch export sales amount to 41.3% of turnover and Vion 38%. Is there a relation between export levels and profitability? (Source, AFZ, our comment)

Tummel ends agreement with Westfleisch and Danish Crown
Tummel, a specialist sow abattoir, will cease the slaughter of sows under contract for the WestCrown joint venture of Westfleisch and Danish Crown. Tummel was recently courted by other major players. WestCrown may build a new abattoir on the former Gausepohl site in Dissen. (Source, ISN)

Markets
While the prices for slaughter pigs are under pressure in most European countries, the market in Germany seems to be roughly balanced. Available numbers are comparably high, which is also true of demand in most regions. Only producers in East Germany report problems selling available pigs. However, the meat market for pork is lacking impulse due to the cold weather, which sees consumers lean towards beef. Therefore, achievable prices for pork cuts are comparably low. Nonetheless, the pork market remains more or less balanced and the recommended price once more remained unchanged at €1.42 per kg. (Source, AMI)

France

A new Président
François Pot Vice President of MPB, is succeeding Daniel Picard as the President of the Marché du Porc Breton. The 51 year-old pig producer based in Finistère is a breeder-finisher with a 400 sow herd, he is also the President of the Porelia group of producers. Mr Pot supports a liberal conception of pig prices, where offers and demand are transparent without external intervention. He also believes that MPB must reflect the state of the pig market to avoid competition between producers who sell their pigs.

A new MPB?
The Marché du Porc Breton has been unable to give pig prices since 5 October. The departure of the main operators, led by Bigard and Cooperl, dismantled the market price indicator system. By the end of September, even producer groups such as the Union of Groups of Producers in Britanny (UGPVB) had left the MPB, where the price was fixed at €1.40 per kg earlier in the summer. This lead to the resignation of MPB President Daniel Picard. Since then, abattoirs have been buying directly from producers with prices recently varying between €1.21 to €1.25 per kg, there is almost one price per abattoir. Today, the new President prepared a proposition to pull back all the operators to the market. A new convention is being submitted to operators but no details are available as yet and no date set for the resumption of the MPB. Mr Pot is hoping to persuade all operators to come back, he is presently focusing on the two leaders (Bigard and Cooperl who represent 30% of transactions) and so far Cooperl said the discussion has been positive.

Markets
Pork: Quotations have still not resumed in Plérin and according to “Le Marché du Porc”, they are not likely to do so this week. However, meetings are taking place between all the different operators, except Bigard, and things seem to be moving forward. A convention could be drafted soon.
Piglets: The piglet market is still very weak and slightly decreased last week. According to the FNP Coop index, prices for 25kg and 8kg piglets decreased by €c1 and €c15 respectively, compared with the previous week.
Cuts: Industrial prices for the first 8 months of the year were lower than in the same period in 2014. They decreased by 2.6% for Delicatessen meat (Charcuterie), 1.8% for processed meat and 5% for fresh pre-packed pork chops. However, in August, during the promotional period linked to the start of the school year, they were up 2.5% compared with 2014.

Belgium

Successful Anuga launch for Belgium Pork
The company, the result of the merger of Westvlees and Covalis, had a successful public launch at Anuga with an exceptionally busy stand. Belgium farmers are said to be very supportive to the venture that is creating a new European pork heavy weight. (Source, own)

Netherlands

New farrowing stall
Firm MS Scheepers has unveiled a new type of farrowing stall called Hy-Care, claiming great gains of productivity due to higher welfare. (Source, Boerderij Vandaag)

Jumbo will not pay more for pork
The second largest Dutch retailer will not spend more for pork but will help with carcase optimisation. Jumbo will try to make pork “more hip and interesting”. (Source, Boerderij Vandaag)

Spain

More pork from Spain?
Over the last few years, the growth of the major integrators has been compensated by the loss of smaller pig farms, with little net gain. However, following two good years, the large integrators and cooperatives have resumed their expansion plans. This time, there will be a large net gain as there are few small operators left to stop production. This is already evident in this year’s production data. Just in Northern Spain, Nanta, Copiso, Los Hermanas, Los Alzcos, etc. are planning to expand. Their view is that Spanish production is fundamentally competitive. The few large units that closed have been taken over by larger integrators. The Spanish pork sector expects a tough time and low prices next year but integrators are unlikely to shelve their expansion plans. (Source, own)

Spanish invasion at Anuga
Spain brought the largest contingent at Anuga, with an offer of pork, chorizo, dry-cured ham and Iberian pork products, including El Pozo, Grupo Jorge, Costa Brava, Vall Companys, Campofrio and many others. (Source, own)

Love Pork
Love Pork Week, an event dedicated to new solutions and strategies to maintain the competitiveness of the pig sector will take place on 6 November in Girona (Cataluña). One of the main aspects is to analyse the export potential and new global challenges facing the industry: sustainability, food safety and animal welfare. (Source: Infocarne)

Vall Companys Grupo
The owner of Vall Companys, Sr Josep Vall Palou has died. His company is one of the most important porcine and meat groups in Spain. The group has a turnover of more than €1,300m per year (Source: Revista Cárnica)

Estonia

Finnish pigs
HK Scan Estonia, the largest Estonian pork processor is now importing live pigs from Finland due to the continuing issue of African Swine Fever (ASF). This has angered the Estonian farming minister. (Source, Boerderij Vandaag)

Russia

Pork prices fluctuate
According to the Agrarian Market Environment Institute, at the beginning of October, the average pork price in Russia had decreased by 20% compared with prices quoted at the beginning of September. One of the drivers behind the decrease was reported to be a growing preference for poultry meat by processors. However, at the beginning of the current week a long-awaited price increase finally hit the Russian market. In the Central Federal District, the average increase for bacon was reported at RUB17 per kg, while the price for the second-grade pork increased by RUB19 per kg. Live pigs prices also grew by RUB15 per kg. (Sources, meatinfo.ru, pigua.info)

Ukraine

Pork production update
According to the State Statistic Service, during the January to September period, the Ukraine produced 173,000 tonnes of fresh and chilled pork (+3.9% compared with the same period in 2014) and 12,600 tonnes of frozen pork (+21.4% compared with the same period last year). (Source, agravery.com)

Pork price update
During the last week the Ukrainian pork market was stable, the average wholesale pork price on 19 October in the Ukraine was UAH29.3 per kg (US$1.31 per kg). Meanwhile, the price for pork fat is growing, increasing by 20% over the past two months. As of 19 October, retail prices for pork fat were within the range UAH60-70 per kg (US$2.68-3.13 per kg). Market experts believe that the prices have reached a ceiling and any further increases will have a negative impact on demand. (Source, pigua.info and agrciacta.com)

USA

Benefits of TPP
The USDA has produced a document showing the benefits of the Trans-Pacific Partnership for US Agriculture. Japan will eliminate duties on nearly 80% of pork tariff lines, including processed pork. Remaining tariffs will be cut and the "Gate Price" system significantly altered. Nearly all Malaysian tariffs will be locked in at zero percent and Vietnam will eliminate tariffs. (Source, USDA)

Subway goes antibiotic-free
Sign of the times; Subway, the major sandwich chain, is now specifying meat from animals that have never received antibiotic treatments. The transition for the 27,000 restaurants will begin in early 2016. (Source, Meat & Poultry)

Product recall
Good Food Concepts, of Colorado Springs, is recalling approximately 5,700 kgs of beef, pork (bacon, ham, pepperoni, hot dogs) and poultry products that were produced without a fully implemented HACCP plan. These products are also misbranded and contain sodium nitrate, which is not declared on the product label, according to USDA’s Food Safety and Inspection Service. (Source: MICA)

Mexico

Mexico seeks CSF status
Mexico’s Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food and the Confederation of Mexican Pork met to discuss efforts to continue the process to achieve recognition by the US as a country free of Classical Swine Fever. This recognition would allow Mexico to export pork products to Cuba, Puerto Rico and Argentina and to expand marketing to China, South Korea and countries participating in the Trans-Pacific Partnership, among others (Source: NAMI)

Venezuela

New pig complex
Spanish contractor Bertoz-Gorriko is building a new pig complex for Pvdsa Agrícola, a subsidiary of Petrólos Venezuelos. The size of the new farm is not given. However, the venture has been named Complejo Integral Porcino Socialista, in English, Socialist Integral Pig Complex(!). (Source, Eurocarne on line.)

China

More pigs in China in 2016
A new report from USDA is forecasting a rise of the Chinese pig herd of 1.5m head to 421.7m. This reflects the current higher prices. However, this represents an increase of only 0.36% and should not affect imports. (Source, USDA)

Prices are going down
China’s live hog price was 16.83 Yuan per kg (£1.62 per kg) last week, down 1.96% on the previous week and 6.41% less compared with that of the same period last month. Hog prices may still decline further. According to data published by the Ministry of Agriculture on 14 October, the national hog inventory was 388m head in September, down 11.8% from the same period last year, but an increase of 0.6% from August. The hog inventory has now seen a rise for three successive months in 2015 and is predicted to increase slightly further. In addition, the raw material price for hog feed is falling, for example, the corn price dropped by 5.79% in a month. (Source, CNAgri)

Philippines

Pork production is up
Pork production topped 1m tonnes in the first six months of the year, up 4.7% year-on-year. In particular, production was up 5.6% in the second quarter, with the largest rise in Luzon and Calabarzon. Average prices were £1.36 per kg live weight, down 2.8%. Producers are still complaining of “smuggled meat” and imported meat attracting a lower tariff not used in manufacturing. Senator Cynthia Willar is working on a bill to increase fines for smuggling meat. (Source, Asian Pork)

Vietnam

TPP worries
New access under the Trans-Pacific Partnership (TPP) agreement is worrying for pig producers, say Vietnamese academics in a report funded by the Japan International Cooperation Agency. The Vietnamese pig producing sector has low productivity and are not prepared for further competition, particularly from the USA. On the other hand, in the short term, the preference for warm meat may lessen the impact. Still, in the long term, more cheap frozen pork will be imported. Competition will also come from Europe due to the new Vietnam-EU Free Trade Agreement. (Source, Asian Pork)

Thailand

Drop in usage of illegal substances
Thailand’s Department of Livestock Development (DLD) reports some success in eradicating the use of illegal growth promoters in parts of the country. A new fast test kit that is used on pig urine is used on live pigs before sending them to slaughter. The level of testing in meat is not thought to be high. (Source, Asian Pork)

Australia

New national labelling
Australia will still use the green and gold kangaroo triangular sign. However, underneath It will give the proportion of Australian ingredients in the product in a ruler with 25% marks. For example, “Made in Australia from 100% Australian ingredients” will be all gold. “Made in Australia from more than 75% Australian ingredients” will use three-quarter of the ruler with gold. “Made in Australia from UK pork” will be able to use the triangular logo but the ruler will be blank. (Source, Australian Meat News)

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