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AHDB Pork Weekly Export Bulletin


10 November 2015

AHDB Pork Weekly Export Bulletin - 10 November 2015AHDB Pork Weekly Export Bulletin - 10 November 2015


British Pig Executive Weekly Export Bulletin

A number of activities will take place next week around the FHC show (11-13 November) in Shanghai. Firstly, a small mission is visiting Beijing this week where UKTI has organised a ‘GREAT British Week’. Secretary of State Liz Truss will visit FHC then travel to Beijing for meetings with Chinese officials.
A major surprise: the unequal merger of Tican and Danish Crown has been called off. Tican will join forces with Tönnies. This is a major blow for Danish Crown and a coup for Tönnies.

A global outcry in China, Australia, Germany, the USA, Austria, Korea to quote just a few, met the IACR statement of 26 October linking meat and cancer. The anger was not deflated by the correction issued by WHO on 29 October. The reaction was well described as “glee, panic and yawn”. Some 2b people across the world were made aware of the IACR statement which was major news worldwide last week. Still, this short statement raises more valid questions than answers.

From 28 February 2016, the use of ACE electronic filing for clearing agents and importers will be compulsory in the USA. The PGA – FSIS 9540-1 application for import inspection will be automatic. There are no implications for exporters who will still be able to use paper EHC. For reference, Australia, New Zealand and the Netherlands use electronic EHCs.

Germany

Tönnies and Tican join forces
Further to the news that Tönnies just recently surprised with a joint venture in France. The largest German pork slaughter company is to take over the Danish company Tican. In a framework agreement, Tönnies and Tican agreed on a transfer of shares in the holding Tican A/S. This holding company will control the activity of the Danish pig slaughtering and meat processing companies with Tican Fresh Meat, Direct Table Foods Pro - Pak Foods, Tican UK, Tican Chilled and Nove Sp.Zoo. The sales companies in Germany and China are also part of the agreement. Both partners hope to receive official green light from Brussels. The acquisition sees the family owned company, Tönnies, take over a cooperative competitor, the Tican Group is owned by nearly 300 Danish farmer members. (Source, www.agrarheute.com)

Markets
Difficulties continue to be mentioned on the German meat market, prices are under pressure while demand is lacking impulse. As a result, slaughter facilities are reducing slaughter pig orders to at least slightly ease pressure on the market for pork cuts. As a result, pig numbers are reported as high in several regions, especially in Southern Germany where producers report a surplus of pigs for the current week. In addition, major slaughter facilities demanded a decrease of the recommended price during the first half of the week. Therefore, producers had to react with a further reduction of the recommended price, down to €1.33 per kg. (Source, AMI)

France

“Bien élevé” ham
The Brocéliande brand “Bien élevé” has just celebrated its first birthday. Cooperl claims that by 2017, 25% of their production will be produced without antibiotics from the end of the weaning period, this will represent 1.5m pigs. 300 producers, located mainly in the “Grand-Ouest” region of France, are already involved in this project and aim to produce 350,000 pigs by the end of the year. These volumes will increase fourfold within two years. This will boost the production of “Bien élevé” branded lardons, pâtés and terrines.

“J’aime” by Fleury-Michon
The new range of cooked ham launched by Fleury-Michon is based on two main criteria:

  • Pigs are fed with no GMOs (that is to say, with feed containing less than 0.9% GMOs)
  • Pigs having received no antibiotics from six weeks of age

This range includes ham slices and sliced cooked pork joints. This new range reflects Fleury Michon’s strategy:

  • Develop Label Rouge
  • Reduce salt
  • Develop Bleu-Blanc-Coeur scheme (high omega 3 content)

These “quality ranges” represent 30% of Fleury Michon’s cooked ham sales and an increase of 30% year-on-year. According to the Managing Director, Régis Lebrun, this market could represent half of cooked ham sales over the next five years.

Official quality marks
The market of official quality marks represents 3.8% of total pig production. It involves 14 Label Rouge marks representing 726 producers and 45,300 tonnes and 6 PGIs representing 301 producers and 7,700 tonnes. 53% of this production is further processed, 28% is sold through supermarkets, 19% through independent butcher shops and 1% is sold at restaurants. Altogether, volumes have been stable since 2007.

New pork Hall in Rungis
The new pork Hall will replace the old poultry Hall (V1P Hall) in Rungis. The renovation and refurbishment of the ex-poultry hall is now planned and the allocation of the stalls to individual operators is almost complete. Work should commence before the end of the year.

Markets
Pork: Pork production is relatively stable in the ‘Zone Uniporc Ouest’ but the market is struggling to absorb current stocks. Slaughterings were slightly higher (+0.45%) in week 44 compared with the corresponding week last year. However, carcase weights increased by 2.13%. Once again, quotations did not start last Monday at Plérin.
Piglets: Prices are still decreasing for both 8kg and 25kg piglets. FNP-Coop de France prices lost €1.20 for post weaning piglets and €c6 for other piglet categories.
Cuts: According to ‘Le marché du porc breton’, the end of in-store promotions will have a very negative impact on the supply and demand balance. As the offer is very important at the moment, it is necessary to have permanent animations and promotions in-store to make any progress.

Spain

Russia

Brazilian companies suspended
Rosselkhoznadzor introduced a ban (effective from November 9) for meat import from two Brazilian companies. Imports of beef were banned from the Minerva Industria e Comercio de Alimentos and pork has been banned from the Cooperativa Central Aurora Alimentos. Rosselkhoznadoz experts found antibiotics of the tetracycline group in the meat. (Source, meatinfo.ru)

Ukraine

ASF update
ASF continues to spread to different regions of the country. ASF has been registered on a commercial farm in Cherkaska oblast. Another case of the ASF was registered in Chernihivska oblast in a private household. A case has also been reported in the Rokytninskiy region of Kyivska oblast. (Source, pigua.info)

Moldova import ban
Moldova temporary banned pork imports from the Ukraine due to threat of the ASF infection. The ban was imposed when an outbreak was registered just 100km from the Moldavian border. (Source, Anyfoodanyfeed.com)

Wholesale pork prices update
Last week, the pork market in the Ukraine reported slight price increases. The average wholesale price of the first grade pork was UAH30.4 per kg (£0.85 per kg) and for second grade pork at UAH29.3 per kg (£0.82 per kg). Producers are complaining of low demand and the additional costs incurred, particularly with ASF spreading across the Ukraine. The average retail pork price in Ukraine was UAH78.28 per kg (£2.20 per kg). (Source, pigua.info)

South Africa

Danish push
Crown Prince Fredrik headed a Danish commercial mission to South Africa that included two ministers and some 50 industry representatives. Nonetheless, Jakob Legind Væver, the Export Director of Danish Crown, described the South African and Angolese markets as “volatile”. (Source, Børsen)

USA

Favourable prospects for US pork production
According to Steiner Consulting, the volume of pork production is up 7.6% this year. Due to the high US$, most of this increase, 7.4%, was consumed in the USA. Production should edge up by 1.3% in 2016 and 2.3% in 2017 with consumption falling by 1.5% in 2016 and increasing again by 0.5% in 2017. Economic indicators are positive. Incomes and meat consumption are up with bacon very much in favour. Pork looks good value against beef. In 1996, the price ratio of 78 CL beef against pork loin was 0.4. It is now 1.74! (Source, Steiner Consulting Group)

US industry shrugs off IACR statement
There was no panic in the USA following the IACR statement, rather a general yawn and certainly no front page news. Share prices of the main processors went unchanged following the publication. (Source, own)

E. coli outbreak affects Chipotle
Fast food chain Chipotle voluntarily closed 43 restaurants in Washington State and Oregon over the weekend after health authorities launched an investigation into 22 cases of E. coli poisoning. Beef shipped across the US has also been recalled. Re-openings will depend on the investigation. (Source, RT.com)

South Korea

Fall-out of IACR report
In South Korea, sales of ham and sausages plummeted by nearly 20 per cent the day after the WHO findings were made public. One supermarket employee told the South Korea press that customers seemed to be avoiding the meat section more than usual on Tuesday and Wednesday. (Source, various)

China

Positive trend for imports
With Food & Hotel China starting next Wednesday, signs are favourable for further growth of pork exports to China. Domestic pork production remains low and insufficient to cover demand. In Q3, UK pork exports to China rose by 40% to 9,000 tonnes. EU exports are up 63%. In total, China imported £612m worth of pork in the first nine months of the year. In contrast, offal imports are down 14% even if EU exports were up by 18%. (Source, CNAgri)

Cancer disquiet
Public denouncement of the WHO findings was most prominent in China, where crying emotions crowded social media platforms, in response to the announcement. (Source, Wall Street Journal)

French genetics to Hunan
Henan Xina Livestock has purchased 1,000 breeding pigs from Nucleus-Cooperl. This represents the main import of breeding stock over recent months, according to Chinese statistics. (Source, CNAgri)

Wens’s high profits
Wens Group profits in Q3 are up 71.8% to a huge £ 310m. (Source, CN Agri)

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