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AHDB Pork Weekly Export Bulletin


18 January 2016

AHDB Pork Weekly Export Bulletin - 18 January 2016AHDB Pork Weekly Export Bulletin - 18 January 2016


British Pig Executive Weekly Export Bulletin

UK pork exports rose in November. Both the volume and value of exported pork grew versus the same time period last year by 17% and 20%, respectively. Volumes are slightly down against September and October. China and the Republic of Ireland showed the best progression. Offal export continued to increase with volumes up 46% against November 2014.

France

MPB – Marché du Porc Breton
On Thursday 7th January, the 22,408 pigs presented at MPB were sold at an average price of €1.073 /kg lw this is 0.3 €0.3c above Monday 4 January’s price. Some 394 sows have also been presented and sold at €0.787/kg cwe.

Adding value
Following the crisis of the pig industry last year, none of the problems have been solved and the market price mid-December was €1.07/kg, well below the €1.40 threshold imposed by the French government in June 2015. The situation in stores is clear: household purchases of fresh pork fell by 4% (compared with -1.9% for beef) probably reflecting the regulation of special offers imposed during the summer. All types of stores have been hit by this decrease from hypermarkets to hard discounters, independent butchers only representing 10% of sales. Pork consumption in France (31.5kg/inhabitant) is lower than the average in Europe and far behind Germany (52kg) or Spain (54kg). Many experts believe the pig industry is behind in terms of added value and main areas of growth such as official quality marks or new product development should be further exploited. Official quality marks only represent 4% of total production with Label rouge representing 3.3% and organic 0.4%. Another route is the reasoned production and operators such as Terrena with “Nouvelle Agriculture” or Cooperl with “Bien Elevé” have already started investigating this ethical segment. Label Rouge and organic productions need to be supported as well as innovation such as mince, burgers and pulled meat.

M&S sausages
Today, there are five M&S supermarkets and nine M&S Food stores in France. Some 80,000 retail packs of sausages are sold through these retail outlets every year, representing 20% of M&S meat and charcuterie sales (poultry excluded). There are 30 different types of sausages permanently on the shelf except during the summer where the range expands. Leading references are the Cumberland sausage and the Apple and Honey sausage. Only 10 to 15% of customers are British, clearly demonstrating that French shoppers trust the M&S brand. Finally, orders placed on day A are delivered on day B at 6H00 am.

Market data for week 2
Pork:
The base price on Monday increased by €0.1c. In spite of an increased slaughtering activity due to promotions in stores, the market has difficulty in managing excess supplies. The operators are expecting a very good week.
Piglets:
Last week, in Brittany, prices rose by €5c/kg and by €1.63 per head. In the North-Picardie, prices for 7kg piglets lost €1.34 since Christmas. FNP-Coop de France prices are stable for post-weaning, after several weeks of falls.
Cuts:
Over the first 11 months of 2015, French household purchases fell by 4.4%. According to FranceAgriMer Kantar Worldpanel, there is a large disparity between the cuts. Loin sales decreased by 7.1% while sales of other cuts increased by 14.4%. French people bought less fresh sausages but more cured joints.

Pork prices RUNGIS week commencing: 12 January 2016
Cut name Price range (Euro/Kg)
Back fat, rind-on
0,40
Trimmings
1,17
Leg
2,24
Loin including chump
2,24
Loin excluding chump
2,47
Belly extra without trimmings
2,72

Netherlands

Retail developments
The new concept store of Albert Heijn, the Dutch retail leader, in Leiden is disappointing and does not compare with Jumbo’s Food Markets whose third store just opened in Veghel (Jumbo is the main competitor to Albert Heijn). Of interest are gourmet sausages, burgers and pulled pork. The pork offer continues to be clearly segmented according to the Beter Leven pig welfare system: 1*, minimum standards from Vion, 2* scharrel outdoor pork from Britain and 3* organic pork. The hotel chain Valk has opened a new spectacular retail store called Valk Versmarkt (Valk Fresh Market) also in Leiden with the accent on high-quality meat, fish, cheese and wine, with the butchery taking centre stage. This concept is similar to Colruyt’s Cru store near Brussels. (Source, own)

Belgium

Detail of the support scheme
We announced last week the unveiling of a large support for the Belgium pork sector on 21 December. This follows a failed attempt last August. The objective is to secure €15m funding from the supply chain for producers over 12 months with a guaranteed €10m on a basis of €0.15/kg from the invoices paid by retailers, butchers and food service to abattoirs, cutters and meat wholesalers and will be clearly indicated on the invoice. This €0.15 applies to pre-packed meat and will be less for carcases or primal cuts. This only applies to fresh pork and not processed pork. A €7.5m pre-financing would be paid immediately. The scheme would be controlled by an independent body. The European Commission needs to approve this exceptional support scheme. (Source, own)

Germany

German pig price increased again by 3 €c.
Meat sales are up. Some traders and farmers expected higher pig prices this week and therefore hold back slaughter pigs. For the upcoming week, additional volume will be expected. Prices for meat cuts are almost unchanged. The price of loins has fallen since Christmas. Increased pig prices and lower pork prices are leading to a reduction of the margin of slaughter companies. After only one week, the private storage has reached 46,430 tonnes. The most cuts used for this are necks and shoulders for 90 days. (Source, AMI)

The pig population in Germany is at its lowest levels since 2011
The provisional data about the pig population in Germany in October shows that the total number of animals amounts to 27.53m, 3% less than in the same period in 2014. The number of fattening pig farms has also fallen to 25,700 units, a reduction of 4%, and a further decline of 5% in breeding farms to a total of 9,600 has been registered. (Source: Eurocarne)

EDEKA takeover of Kaiser Tengelmann might be approved under tight conditions
Minister for Economic Affairs Sigmar Gabriel (SPD) wants to allow the takeover of Tenglemann by Edeka but only under tough conditions. In particular, Edeka must guarantee that about 16,000 jobs are protected for at least for five years. If Edeka fulfils all conditions, the SPD boss may overrule the Federal Cartel Office. Edeka, the largest retailer of Germany has welcomed the preliminary decision as good for the employees of Kaiser's and Germany. (Source, n-tv)

Pork Prices Hamburg Market week commencing: 12 January 2016
Cut name Price range (Euro/Kg)
Half carcase ‘U’ grade
1.63/1.73
Round cut leg
1.90/2.10
Leg boneless / rindless <3mm fat
2.75/2.90
Boneless shoulder
2.15/2.30
Picnic shoulder
1.80/2.10
Collar
2.25/2.40
Belly bone-in, breast off
1.60/1.85
Sheet belly boneless, rindless
1.95/2.15
Jowl
0.90/1.15

Spain

Pork prices Barcelona Market week commencing: 12 Januaury 2016
Cut name Price range (Euro/Kg)
Gerona Loin Chops
2.43/2.46
Boneless loin defatted
2.93/2.96
Spare Ribs
2.93/2.96
Fillets
5.08/5.11
Picnic Shoulders
1.29/1.32
Belly (bone-in)
1.78/1.81
Belly (Boneless)
2.21/2.24
Legs (round-cut)
2.26/2.29
Legs (york-out)
1.70/1.73
Jowls rindless
1.03/1.06

Chile

Muyan’s growth
The Muyan Group produced 1.919m pigs in 2015 (+56,000). It plans to produce 2.1m in 2016. (Source, CN Agri)

South Korea

FMD is back
South Korea’s Ministry of Agriculture, Food and Rural Affairs has notified the OIE of a confirmed outbreak of Foot and Mouth Disease (FMD) on a pig farm in North Jeolla Province in the south-west of the country. (Source, Pig International e-news)

USA

New dietary guidelines are unchanged
Secretary of Health and Human Services Sylvia M. Burwell and Secretary of Agriculture Tom Vilsack released the final 2015-2020 Dietary Guidelines for Americans (DGA). The guidelines mirror the 2010 edition on recommendations for lean meats and poultry as part of a healthy dietary pattern. Healthy eating patterns include a variety of nutritious foods like vegetables, fruits, grains, low-fat and fat-free dairy, lean meats and other protein foods and oils, while limiting saturated fats, trans fats, added sugars and sodium. "We cannot make broccoli taste like ice cream but we can make nutrition choices on the foods American are feeding their families easier to understand," stated Secretary Burwell. This is no small victory for the US meat sector. (Source, AMSA)

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