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AHDB Pork Weekly Export Bulletin


07 December 2015

AHDB Pork Weekly Export Bulletin - 7 December 2015AHDB Pork Weekly Export Bulletin - 7 December 2015


British Pig Executive Weekly Export Bulletin

The European Central Bank has vowed to continue quantitative easing in order to boost liquidity and spur inflation in the Eurozone until 2017. This monetary policy goes counter to US policies which are now aiming to tighten liquidity. It is the first time since 1990 for such policy divergence. This means a further weakening of Euro against US$. Analysts forecast a rate of €1 = US$0.96 by the end of 2016. This, unfortunately, also means a weak Euro against Sterling. On the other hand, the market was expecting a higher level for QE2 (the second round of quantitative easing); this led to a small recovery of Euro against Sterling to £1.39 today.

Colin Pow of Global Animal Health at Defra who has worked for many years on export certification issues has taken early retirement. In addition, Alick Simmons, the Deputy Chief Veterinary Officer, is also retiring at the end of the year. With further Defra budget cuts, it is essential that export work remains a priority and that the necessary resources are available accordingly. AHDB Chairman, Sir Peter Kendall, will write to Defra highlighting the complex issue of Third Country market access and the significance of continued support for meat exports.

European Union

Changing face of European pig production
There were 3.8m pig holdings in the EU in 2005, this number fell to 2.1m in 2013. Nearly half (1.283m) the holdings are located in Romania and a further 278,400 are located in Poland. Production and total pig numbers have changed little. (Source, European Commission)

France

Mission to Japan
The French Federation of charcuterie processors (FICT) organised an outward mission to Japan last month. The FICT President Robert Volut was accompanied by seven exporters: Oteiza, Metzger Muller, Brocéliande, Delpeyrat, Salaisons du Maconnais, Pierre Schmidt and Bahier. The objective of the mission was to investigate up-to-date culinary habits and meet potential importers. The delegation also received presentations on the current market situation in Japan and its specific distribution channels.

Bleu-Blanc-Coeur pork
The Association Bleu-Blanc-Coeur (BBC) supports food products enriched with Omega 3. Their main partner for meat is Krill who distributes beef, pork and chicken to the food service sector. One of their customers is Restoria, who specialises in social catering. A new deal has been set to include BBC pork on the menu in school canteens (20,000 users in the west of France) at least five times a year. The association, whose method is approved by United Nations, is represented at COP21 in Paris with a stand at the catering centre, and slots at a workshop and at two conferences. One is about its method to reduce the milk carbon footprint and the second about balanced menus with low carbon impact.

Piglet abattoir
JB (with a turnover of €9 million) the French piglet specialist is currently installing a new slaughter line near Arras (north) specifically designed for piglets. The company which was slaughtering at 3 different sites, should benefit from this new installation in January.

Markets
Pork: At Le Marché du Porc Breton yesterday, batches were sold between €1.058 and €1.078 per kg for the 6,000 pigs on offer. The 56 TMP quotation has not been published but we note that the average price of €1.068 per kg was close to that of the previous Thursday.
Piglets: The market is still not very strong. For 25kg piglets, prices are mainly stable. However, in the South East the price decreased by €c4. For FNP-Coop de France, a price decrease was confirmed.
Cuts: According to some operators, the market was quite gloomy at the start of the current week. The return of cold weather is not expected over the coming days and it is difficult to sell some cuts, such as chump, for example.

 

Denmark

Germany

Exports in good form
Despite the loss of the Russian market, German exports are up 1% for the first three-quarters of the year. Exports to China have doubled and shipments to Korea have also progressed strongly. On the other hand, pork imports are down 9%. (Source, AHDB)

German pig price unchanged
Although the German pig price has been pressured for the last few weeks, the current market situation is completely different. The availability of slaughter pigs is lower and can easily be sold, the meat market is seeing some impulse due to the upcoming holiday season. As a result, slaughter facilities order larger numbers and the market participants in several regions report almost scarce numbers of slaughter pigs. Nonetheless, it is unsure if this situation is just a snapshot, as the demand normally falls during the last weeks of the year. Therefore, several slaughter facilities warned producers and thus the recommended price for slaughter pigs in Germany remained unchanged. (Source, AMI)

Spain

Coren to double production of Gama Selecta pork
Coren’s Gama Selecta brand has been in the market since 2012, it consists of pigs fed on chestnuts and reared exclusively in Galicia. In 2015, the company will reach production of 11,400 tonnes of chestnut pork meat, by 2018 it is aiming to reach 22,800 tonnes. As for the company's cured ham, this year it expects to sell 62,400 hams and aims to increase this to 208,800 in 2018. (Source, Eurocarne)

Netherlands

Low, low prices
The Vion quotation has hovered between €1.17 and €1.19 per kg over the last couple of weeks, indeed a very low price. (Source, Vion)

Ireland

Ireland bucks the trend
Eire is the only EU country where the number of pig farms is increasing. There were 840 pig holdings in 2005, this had risen to 1,290 in 2013. (Source, European Commission)

Italy

Massive change of Italian production
In 2005, there were more than 103,000 producers. This had fallen to 23,640 by 2013 or by more than three-quarters, the most momentous change for any EU country in the period. (Source, European Commission)

Dominican Republic

Investment by Industria Cárnica Nacional
Industria Cárnica Nacional (Incarna) is investing US$40m to expand its facilities in the Dominican Republic. The investment has been carried out by the company partners, mostly pig farmers. The new plant will have the capacity to slaughter 1,000 animals per shift. The firm is a leading supplier to the domestic market with its brands Monte Frío and El Español. In addition to the marketing of meat products, it also has plans to improve genetic performance, animal welfare and animal feed. (Source, Eurocarne)

USA

The USA to take the lead in 2016?
According to USDA, the USA should overtake the EU as the world’s largest pork exporter in 2016 with 2.37m tonnes compared with 2.34m tonnes for the EU. With a further weakening of Euro against US$ expected (see above), this looks unlikely despite the lower pig prices expected in 2016 in the USA. (Source, USDA, our comment)

New report on antibiotics usage
The U.S. Department of Agriculture's Economic Research Service (ERS) has issued a report that explores how limiting antibiotic use for livestock productivity-enhancement purposes may affect farmer practices and profits, as well as market prices and volumes. The full report is available at www.ers.usda.gov (Source, USDA)

Pork Industry committed to responsible antibiotics use
The pork industry has collectively embraced USDA and FDA efforts to phase out the use of antibiotics for growth promotion and, in turn, to limit them to treatment and prevention against the spread of disease. The National Pork Board is implementing a three-point plan of action focused on five priorities, shaping educational outreach to pig farmers and broadly sharing information with the retail and food service industries and pork consumers. (Source, PR News Wire.com)

US in the red
The sharp fall of pork prices in the US over the last four weeks has driven farmers into the red. There is a greater offer of livestock in the face of a weak pork market, particularly in the price of bellies. An additional factor is the current low value of the by-products. (Source, Mercolleida)

Canada

Demand for antibiotic-free pork
A veterinarian with Davidson Swine Health Services says that despite its growing popularity with consumers, demand for antibiotic-free pork is unlikely to overtake that of commodity pork.(Source, The Pig Site)

Diarrhea remit in Canada
Last week, the Chief Vets in Quebec announced that there is no longer an active case of Porcine Epidemic Diarrhea (PEDv) in this Canadian Province. The virus is still present in the USA and in the Canadian Province of Ontario. (Source, Mercolleida)

Brazil

Brazil looks to China
China has approved two more slaughterhouses from Santa Catarina for export. Meanwhile, the Brazilian government is pushing to expedite the conclusion of the trade agreement between Mercosur countries and China, which will include the harmonisation and reduction of tariffs. (Source, Mercolleida)

Russia

Higher production
According to data published by the Ministry of Agriculture of Russia, slaughter pig production increased during the January to October period. Total production during the period amounted to 2.5 million tonnes, which is 198,200 tonnes (8.6%) higher than in the same period a year ago. (Source, www.mcx.ru)

Ukraine

New report on the Ukrainian pig sector
France Agrimer has published a new report on the Ukrainian pork sector showing that, with falling consumption and rising production, the country is heading for self-sufficiency. Click here for further details. (Source, France Agrimer)

Belarus

Pig population
According to the National Statistics Committee, the pig population in Belarus on 1 November was 2,773,400 pigs. Production during the January to October period amounted to 323,400 tonnes, down 1.7% compared with the same period in 2014. (Source, Agroperspectiva.com)

China

Wen’s ambitions
On 2 November, WENS Group, the largest livestock producer in China was listed with a market value of 208.7 billion yuan (£20 bn.) and became the largest listed company of domestic agriculture. WENS started building hog breeding companies in 1997. Now WENS operates 15 breeding farms (including one national level and provincial level core breeding station, three provincial level core breeding stations), 47 multiplication pig farms, 141 parents breeding pig farms and 17,800 integrated farmers; the inventory of breeding pigs is about 939,900 heads, of which, breeding pigs of core group is about 21,000 heads. WENS Group plans to market over 30 million pigs by 2020 and its future target is 80 million pigs. However, the group will face difficult environmental issues. (Source, CNAgri)

Taiwan

Taiwan maintains ban on US pork with ractopamine
Despite huge political pressure, the Taiwanese are resisting access of US pork with ractopamine. They recently allowed the importation of beef with ractopamine. However, they consume less than 5kg of beef against 37kg pork. Also, they currently import ractopamine-free pork from Denmark and Canada. (Source, Asian Meat)

Vietnam

Pork prospects
A report by the Institute of Economic and Policy Research (VEPR) states that “the livestock and poultry sectors… is considered unsustainable, uncompetitive and vulnerable to free trade… Output will decline in almost all livestock industries, mainly live swine and poultry.” As consumption patterns change and frozen pork becomes more accepted, domestic production faces difficulties in competing.” Others want Vietnam to become a meat exporter. Currently, some piglets are sold to China. However, the country has failed inspections from Russia and Japan and there are major issues to overcome such as the use of banned substances in pig production. Imports from the USA, Canada, France, Brazil and Poland are rising and the country has started to open its market to other EU countries. (Source, Asian Meat)

Singapore

Pork from Sarawak
Malaysian pork is now sold pre-thawed in Fair Price under the Borneo Pork brand. The processing plant in the Pig Farming Area of Pasir Puteh was approved by AVA. Last year, Singapore imported 54,000 tonnes of frozen pork from 24 countries as well as chilled pork from Australia and Indonesia. (Source, Asian Pork)

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