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AHDB Pork Weekly Export Bulletin


17 November 2015

AHDB Pork Weekly Export Bulletin - 17 November 2015AHDB Pork Weekly Export Bulletin - 17 November 2015


British Pig Executive Weekly Export Bulletin

The week was dominated by our presence at Food & Hotel China (FHC) which took place from Wednesday until today. The busy stand part of the UK pavilion was visited by the Secretary of State for the Environment Liz Truss who is now in Beijing for talks with Chinese officials. The UKTI Great Weeks in Beijing last week and in Shanghai this week did not live to their billing. Nonetheless, the British pork banquet in Beijing last week was a success. The pork-themed menu included ice cream with bacon chippings. Next week, we will be present at World Food in Beijing. The five major pork exporters were all represented at FHC and fielded full teams. All now have representation in Mainland China, a considerable step in our commercial presence in the market. They are highly positive and reported brisk sales, although they expect some price fall from the current high position in the first part of 2016. The question is where next for us in China with pork? We give some answers below with a short analysis of developments on the Chinese FMCG markets.

Following the visit of Prime Minister Xi, the UK government is aiming for food and drink exports to China to rise to £800m by 2020. We are more circumspect. Of course, we are looking for substantial growth of our pork exports to Mainland China both in volumes as we increasingly by-pass Hong Kong and also in value as we aim to differentiate our offer. However, they are structural difficulties with UK food exports often dominated by small exporters, we are too late for saturated markets such as baby formulas and, finally, we have capacity constraints.

According to South African statistics, some 1,023 tonnes of pork ribs were shipped from the UK to the country in the first nine months of this year. This represents our best performance for many years. Offal was also exported. A first small order of UK high welfare pork was shipped to Switzerland. This is remarkable development as the duty for imported pork is hefty.

Germany

Markets
Pork prices in Germany have reached a new low. The publication of the recent WHO study has reported to have slowed demand on the German meat market. Despite the easing of the recommended price by €c5 per kg last week, most slaughter facilities paid lower prices to producers. It is therefore, no surprise, that another price decrease has been demanded over the last few days. Slaughter pig numbers are exceeding current demand and surpluses are reported in several regions. At the same time, the meat market is lacking impulses, pork cuts are hard to sell, even at lower prices. Therefore, the German recommended price was reduced for the third week in a row, easing to €1.30 per kg. (Source, AMI)

 

France

Avril and Abera join Tönnies
The German giant Tönnies (€5.6b turnover) and the French company Avril should start a new company which will produce charcuterie and fresh processed products for supermarkets. Firstly, the company will invest €6m in a new plant with 60 staff. The plan is for Abera to supply the pigs from the Porc Armor Evolution producer group (700 farmers producing 1.8m pigs per year). Tönnies will bring its expertise in processed products as they are leader in Germany with their Tillman’s brand.

Socopa stuffed products
An innovative packaging solution has been launched by Socopa for their new range “Façon Charcutière”. Three pork references are included in the range: Provençale stuffed pork, Mustard stuffed pork and Pork Paupiettes (mustard flavor). All pig meat is French, and with a maximum of 20% fat for the stuffing, a fixed weight of 515g with a shelf life of 12 days. The real innovation is the supply of a cooking bag for the meat and spices.

Outdoors pigs from Ventoux
The region is better known for its mountains, particularly by cycling fanatics, than for its pigs. However, the local Abattoir Alazard and Roux based in Saint-Saturnin-lès-Apt managed to retain its pig line by processing 80 pigs per week thanks to a local supply of 3,500 pigs per year. It represents 10% of the south east regions (Provence Côte d’Azur) production. These pigs are finished over 4 to 4½ months, each piglet is allocated 110 sqm and feed contains a minimum of 70% GMO free cereals. Prices are fixed for a year and are twice the price of the standard pig price.

Breaded steaks
Socopa has just launched two new retail packs containing two pork leg steaks with two different flavours, nature and Provençale. The innovation is that the tray contain, the steaks together with a bag of bread crumbs so the consumer can prepare their own breaded steak.

Markets
Pork: Most European prices decreased last week. In Germany, prices lost €c5 cents, prices in Spain decreased by €c2.2, Belgium by €c4, in Denmark €c2.7, the Netherlands down by €3c and in Italy prices fell by €c1.9 cent. In Spain, stocks are very large, and therefore, slaughter demand and resulting numbers have not increased.

Piglets: Evolution of the prices of piglets differ between the various countries in Europe. In Belgium, prices lost €1 while in Spain for the same weight, prices increased by €c50.

Spain

Investment in Russia
Grupo Fuertes has acquired more than 5% in the Russian Cherkizovo Group. The Cherkizovo Group is one of Russia’s largest producers of meat products. The Group is in the top three companies serving the chicken, pork, and processed meat markets and is the country’s largest feed manufacturer. (Source, Revista Aral)

Campofrío leads “Merco Talent” the ranking in the meat sector
Campofrío has been selected as the best company to work for in the meat sector and is the fifth in the overall food industry, according to data collected by the Business Corporate Reputation Monitor. (Source, Revista Aral)

Enrique Tomás takes “El Jamón” to the streets of Manila
The Catalan businessman, Enrique Tomás is aware of how well known Spanish Ham is around the world and for this reason he is now preparing to head to Manila. This will be his first excursion into Asia. The Enrique Tomás chain of 60 shops is based around Barcelona, Madrid and London. He has a very ambitious plan of expansion, to open 500 new outlets around the world, 200 of them in foreign markets within the next three years. The next openings will be in Milan, Paris, Copenhagen, Hong Kong and Berlin. (Source, Eurocarne)

 

Poland

Kania expands
Polish meat processing ZM Henryk Kania is expanding its production at its facility in Pszczyna in Poland. It is expected that the production of frankfurters will be increased from 20 to 70 tonnes per day and sliced meat production from 7 to 50 tonnes a day. In addition, the founder and president Henryk Kania said that he was considering expanding its presence on the German market through the acquisition of a local processor. (Source, The Pig Site)

Ukraine

Pork export grew in 2015
According to State Fiscal Service data, during the January to October period the Ukraine exported 23,795 tonnes of pork, a near fourfold increase on last year. The value increased to US$49m, compared with US$18.67m in the corresponding period a year earlier. Meanwhile, pork import during the period fell to 3,442 tonnes. (Source, Interfax.com.ua)

Russia

Pork prices are decreasing
Russian pork producers have seen prices ease. In the Central Federal District, the price for first grade pork price fell to RUB154 per kg (US$2.47 per kg). Meanwhile, the price for bacon pigs in liveweight terms was RUB100 per kg (US$1.60 per kg). Pork prices have also been decreasing in the Southern region, remained stable in the North-Western Federal District and, in contrast, slight increases were reported in the Volga Valley region. (Source, pigua.info)

Trichinellosis infection in Rostovskaya
Quarantine has been introduced in Kruchenaya Balka, Salskiy region of Rostovskaya oblast in Russia after veterinary officers found the parasites i several pigs’ carcases. (Source meatinfo.ru)

USA

More pulled pork in restaurants
A study by Meat & Livestock Australia shows that pulled pork is a big winner on US menus with a presence up 21% year-on-year. (Source, MLA)

Chipotle exonerated
The chain has been exonerated of the accusation of e-coli food poisoning. The company had to close 43 restaurants in Seattle and Portland two weeks ago that can now reopen. There was certainly some schadenfreunde in the American meat sector following the announcement of this news news, two weeks ago. Chipotle’s ethic stance ruffles many feathers. Still, the company will increase its microbiological testing, which seemed a weak point. (Source, AOL)

China to resume pork imports from two US plants
The US Department of Agriculture has reached an agreement with China that wiil end import restrictions on pork produced at two plants in the US. The agreement affects US plants that are participating in USDA’s Never Fed Beta Agonist programme or a specifically developed, written ractopamine-free programme. But China’s market for pork remains closed to companies that represent roughly half of US pork production. Meat from Farmland Food Inc.’s Monmouth, Ill. Plant and Swift Pork Co. in Louisville has been cleared for export to China. (Source: MICA)

Pork antibiotics battle rages on
The National Pork Board and the National Pork Producers Council have placed a full page advert in “The Wall Street Journal” in the form of an open letter to Subway in response to their decision to ban the use of antibiotics. Public health experts and federal regulators have long been concerned that routine feeding of antibiotics to animals could lead to antibiotic-resistant superbugs, a health hazard for humans. Finding enough protein raised in the US without such drugs has been a challenge for food companies. (Source, globalmeatnews.com)

Pork Exports improve
US pork exports showed modest improvement in the month of September. The volume was up by 6% compared with the same month a year ago to 172,012 tonnes. However, the value eased by 11% year-on-year to US$456.1m, despite being the highest monthly value since May. (Source: Cattlenetwork.com)

Mexico remains thriving market for USA
US pork producers only have to look south of the border to find one of the hottest international markets for their product. US exports to Mexico look to be heading for another record year, for the fourth consecutive year. Mexico is the largest export market for US pork in terms of volume and second in terms of value. In September, Mexico has taken a third of all US pork exports. Since 2011, US pork exports to Mexico have grown by an average of 7.1% each year, while exports to the rest of the world fell by 4.8% according to Chad Russell, US Meat Export Federation regional director for Mexico, Central America and the Dominican Republic. (Source, Porknetwork.com)

China

A harder road ahead
This is a title of an article in the Economist (31/10) that resumes well the situation which foreign FMCG companies find themselves in China. Foreign companies and brands are losing market share against local competitors. This is happening as the growth of sales of FMCG is slowing from 18% in 2011 to about 5%. Until now, foreign companies had the clear advantage of “superior technology as well as slicker marketing”. “Chinese companies are catching up fast and are winning over Chinese shoppers” as overcapacity and competition intensify and consumers even in smaller cities have become more sophisticated. For the meat category, the safety criteria and keener prices won outright. But the growth agenda is a danger. Now branding and differentiation have become vital. In response to this new situation, an alignment with government’s goals, strong marketing, efficiency and partnership with local partners are needed. There are many good examples of successes from Yoplait to L’Oréal to emulate. Foreign firms “still have some strengths in technology and marketing”. (Source, The Economist)

Philippines

Philippines’ pork imports hit 180,172.19Tn in January - September
By the end of September, pork imports to the Philippines totalled 180,172 tonnes, down slightly from last year’s record of 183,300 tonnes. Agriculture Undersecretary for Livestock José C. Reaño told reporters that the Philippines is now less dependent on pork imports due to the improvement of domestic production in the country. The bulk of pork imports include jowl, ear and liver. Fat and rind imports dropped 6.87% and 6%, respectively, from 2014. Pork cuts, bellies and MDM meat all registered increases in terms of volume, imported bellies rose by 32.86%, pork cuts by 3.14% to 29,679 tonnes and MDM also increased significantly. (Source: Business Mirror.com).

Thailand

Japan urged to increased pork quota
Thailand will call on Japan to raise its import quotas for cooked pork from 1,200 to 12,000 tonnes. The request will come during a visit to Japan by a Thai delegation led by Deputy Prime Minister Somkid Jatusripitak at the end of November. (Source: Bangkokpost.com)

Peru

Pork promotion
Pork consumption in Peru is only 5.5kg per capita per year with pig production in the hands of 88,000 smallholders, mainly on the coastal area. The government and the pig producers’ association have decided to celebrate a chicharron (pork scratching) day in order to promote pork. (Source, Eurocarne)

Denmark

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