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AHDB Pork Weekly Export Bulletin


02 February 2016

AHDB Pork Weekly Export Bulletin - 2 January 2016AHDB Pork Weekly Export Bulletin - 2 January 2016


British Pig Executive Weekly Export Bulletin

Pig offal exports were up 95% in volume in November and 25% for year to ending November. However, the value to the end of November was down 5% to 34m reflecting lower international prices. Exports to Greater China now represent 63% of the total with export to China doubling year on year and exports to Hong Kong up 70%.

Chinese data for 2015 show UK exports to Mainland of 32,849 tonnes of pork and 21.878 tonnes of offal, giving us a 4.2% share of the import market. It will be interesting to compare this tangible figure with HMRC data.

Copa-Cogeca, the main European body representing farmers, has called on Commission President Jean-Claude Juncker to resume negotiations with Russia regarding access for fats, lard and offal. The cost of the Russian ban on the European pork sector is now estimated at €5b.

Belgium

Vlam programme for 2016
In 2016, the organisation for the promotion of Flemish food will muster a budget of €22m from various sources. Regarding export pork promotion, the budget of €2.5m (including a contribution to EU promotion programme and excluding the €200,000 beef promotion) will encompass exhibitions in China (SIAL), the Philippines (SIAL Asean) and Japan (Foodex). There should be missions to sub-Saharan Africa and possibly India. Domestic promotion will extend the Vlees bij ons (Our Meat) campaign. (Source, VLAM)

Netherlands

Demand for antibiotics-free pork
The KDV group and Jan Wit from Wesfort abattoir are in discussion with seven supermarket chains to propose antibiotics-free pork. Wesfort works with 300 producers under the KDV scheme (Keten Duurzaam Varkensvlees). Amongst other things, the scheme forbids tail docking. (Source, Boerderij Vandaag)

France

FICT leaves Inaporc
On 22 January, the French federation of charcuterie processors (FICT) decided to leave the inter-professional body, Inaporc. Tension between the two organisations is nothing new with contentious issues including nationalistic campaigns in support of the French industry and the country of origin labelling on processed products and prepared meats. FICT notes that 80% of pig meat used by French processors is French and this figure could improve if products such as average weight hams, sow meat, natural casings and organic pork were available in the required volumes. FICT is suggesting the following:
Support producers to restructure their farms
Communicate on the eating qualities of pork consumed at home or in restaurants
Focus on added value throughout the supply chain

Pink hats and farmers unions united by a deep crisis
Ongoing road blockades organised by angry farmers last week in the West of France illustrate the depth of anger caused by the present economic crisis with French livestock producers. Pig farmers in particular have been badly hit by this crisis and it is likely that around 20% of them will go bankrupt in 2016. M E Leclerc, Head of the Leclerc supermarket chain, claimed to be willing to support French producers as long as any support is legal and approved by the authorities. Representatives of farmers unions stopped blocking the roads over the weekend and “pink hats” led by Olivier Etienne, the Head of the recently formed “Save French Livestock” group (wearing pink woollen hats) did not even visit supermarkets as initially planned.

Nevertheless, FDSEA (Led by Didier Lucas) and “pink hats” still insist on origin labelling of meat in prepared meals. They also want new specifications for French pork, Label Rouge pork and Organic Pork. Mr Etienne is even insisting on blue, white and red shelves in supermarkets with “I love French products” stickers. More demonstrations and road blockades are expected, not only in the west but everywhere in France and 27 January was marked as a “Black Wednesday” in French farmers' diaries.

Atelier des Viandes de France
This is the name of the new factory jointly owned by Tönnies and Abera (Avril group) expected to open on 1 April 2016, near Vire (Calvados). The factory will be dedicated to the processing of French pig meat, it will benefit from German expertise and “made in France” guarantee which, according to Fabrice Chapelle, Managing Director of Abera, sounds like a winning combination.

Markets
Pork: A very small increase was reported last Monday for the base price (+€c0.1). The European Commission has slightly revised downwards its slaughtering estimations for the second quarter of 2016, at -0.2%, similar to the first three months of the year.
Piglets: FNP-Coop de France indices are stable or slightly increasing: up €c1 for post-weaning piglets. In Brittany, prices increased by €c3 per kg for 25kg and €1.28 per head for 8kg piglets. It is not the same in other regions, in North-Picardie, prices for 7kg piglets decreased by €2.59 per head while remaining stable for 25kg piglets (+€c17).
Cuts: Sales are low on Rungis during the month end. Consumers have tight budgets after Christmas, especially as January is also synonymous for in-store sales and promotions.

 

Spain

Spanish Pig Production
In recent decades, the Spanish pig sector has experienced a considerable process of transformation towards the model of large farms and integrated enterprises, with greater production efficiency. This has seen the number of farms fall from 150,000 to 86,000 now, while census numbers have increased with slaughterings of more than 43 million pigs per year. (Source, AECOC)

Sinking prices
The excess of production of pig meat from the main producing countries, has caused a widespread fall in prices. In Spain, the situation is reflected by a fall in prices to €0.95 per kg with production costs of between €1.12 and €1.15 per kg resulting in an average loss at €10 per pig. (Source, AECOC)

Casademont export champion?
The large processed meat producer exports already 55% of its production to 70 countries including India and New Zealand. It plans to increase this share to 70%. The latest plan is to produce processed meats in collaboration with Atria Russia in the St Petersburg region. (Source, Eurocarne on line)

Bell invests in Spain
The major Swiss processor Bell, part of the Swiss Coop, is investing €38m in a new ham drying and slicing plant near Toledo. It will employ 100 people with the end product probably destined to Spain and Germany. (Source, Eurocarne)

Costa Brava is USDA approved
he major Catalan pork processor is the first Spanish abattoir to get USDA approval. (Source, IFIP)

Denmark

Mandatory pork menu
A Danish city has ordered pork to be mandatory on municipal menus, including schools and day-care centres, with politicians insisting the move is necessary to help preserve the country’s food traditions and is not an attack on Muslims. (Source, Fox News)

Italy

Lighter pigs back?
Faced with the on-going crisis, the Italian pork sector is looking again at the production of lighter “intermediary” pigs which are more economical to produce than the PDO heavy pigs whose products face declining sales because of high prices. (Source, Suinicoltura)

Fall of consumption following IACR statement
According to Luigi Scordamiglia, ASSICA and ASSOCARNI, sales of frankfurter-style sausages fell by 17%, pre-packed meat by 14.7%, processed meat by 11%, salumi by 9.8% and fresh meat by 6.8%. These are now recovering. According to Marco Guerreri, Coop’s head meat buyer, the role of fresh and processed meat in the Mediterranean diet should be more highlighted. As seen in bulletins passium, the IACR statement has generated a torrent of protests in Italy. (Source, Eurocarni, various)

Ireland

Share of national slaughter
Edenderry retains the lead as Ireland’s largest pig abattoir with 27% of the kill, followed by Roscrea with 25%, Dawn 16%, Staunton 16% Kepak 10% and Green Pastures 10%. Pig throughput is expected to stabilise at 3.66m in 2016. (Source, Irish Farmers’ Journal)

Germany

Tönnies closes plant
Tönnies is restructuring its Thomsen subsidiary in Schleswig-Holstein. The abattoir in Bad Bramsted will be closed with the loss of 33 jobs and the operation consolidated in Kellinghusen. Thomsen slaughters 300,000 pigs and 28,000 cattle per year. (Source, AFZ)

Interesting format for new salami
The firm Weber in Neueibau in Saxe has developped a new casing for its Eibauer Schwarzbier Salami specialty (salami with black bier from Eibau). It really looks like a beer bottle from a distance! (Source, AFZ)

Markets
The closing of private storage and overall lower demand for pork resulted in falling demand for slaughter pigs in Germany. Several meat market participants report that a price reduction would match the current market situation. However, offered numbers of pigs is far from extensive and can be sold easily. Overall, the current German pig market can be best described as mostly balanced with moderate numbers and a slightly decreasing demand. As a result, the pig price remained unchanged at €1.31 per kg. (Source, AMI)

 

Serbia

Serbia and Russia get close
In the first 10 months of 2015, Serbia shipped 11,130 tonnes of pig meat to Russia. This amount represents a decrease of 25% from 2014, although the volume has increased significantly since the Russian embargo. (Source, Mercolleida)

Ukraine

Leading pork producers
According to information published by the Ukrainian Pig Breeders Association, the top 5 leading producers of pork in Ukraine were:
APK-Invest (selling 11% of total live pigs in the Ukraine)
Agropprodservis
Danosha
Globynsky Pork Production Complex
Slobozhansky Plant
(Source, asu.pigua.info)

Lower pig population
According to the State Statistic Service, as of 1 January 2016, the pig population in Ukraine amounted to 7.09m head (down 3.5% or 358,000 pigs). The decrease was mainly recorded in the private household sector. Production of pigs at commercial enterprises remained relatively stable. (Source, pigua.info)

Quarantine introduced in Poltava
Following two outbreaks of ASF being registered in the Kobeliaky region of Poltava oblast, quarantine was introduced in the region to prevent spread of the ASF. Movement of vehicles is restricted, transportation of products of animal origin is banned and four control stations have been set up. (Source, pigua.info)

Wholesale pork prices update
During the past week, pork prices on the Ukrainian market continued to decrease. The average wholesale price of the first grade pork was UAH26.77 per kg (US$1.07 per kg). Second grade pork was offered at UAH25.56 per kg (US$1 per kg). The main driver behind the decrease remained low purchasing power of Ukrainians and the current excess of slaughter pigs. However, the positive development is that pork producers appear less worried about the competition from foreign producers. They say that with the current UAH/US$ exchange rate, large volumes of imported pork are unlikely. (Source, pigua.info)

Russia

Russians swap Big Macs for Pork Burgers
All-day breakfast has fuelled a resurgence at the world’s biggest fast-food purveyor. In Russia, it’s all about double pork burgers and chicken wings. The advance comes against the backdrop of shrinking incomes and a restaurant market which declined 5.8% in the first 11 months of last year. (Source: AG Web)

Pork demand is decreasing
According to market experts, meat demand, specifically for pork, has been decreased in Russia, mainly due to the lower purchasing power of consumers. In 2014, total volume of pork sold in Russia was 10.5m tonnes which eased in 2015 to 10m tonnes. According to forecasts, the volume could ease to 9.3m tonnes in 2016. (Source, pigua.info)

USA

Conference on antibiotics resistance
AHDB attended a large 2-day Antibiotics Conference in Washington, hosted by the US Farm Foundation that seeks ways to reduce use of medically-important antibiotics for growth promotion with livestock. This conference coincided with the declaration by a large group of pharmaceutical companies’ CEOs at the World Economic Forum at Davos in Switzerland pledging to work with governments to reform an antibiotics crisis concerning "superbug resistance" - in an apparent spirit of urgent cooperation. (Source, own)

Dominican Republic

USA meat fair
The USMEF organised a showcase event at the Embajador Hotel in Santo Domingo for 500 guests from the Dominican Republic and surrounding countries. The USA exported 23,000 tonnes of pork in 2015 to the country. (Source, USMEF)

Argentina

Exports to Argentina
166 Spanish companies can export products of pig origin and 20 have permission to export casings to Argentina. (Source: Revista Cárnica)

New Zealand

European fresh pork entering NZ raises disease concerns
Imported European fresh pork is making pig farmers uneasy that it could increase the risk of a disease shutting down their industry. Their concerns are on the back of an updated agreement between NZ and the EU set to intensify pork trade. (Source: NZFarmer.co.nz)

India

Imports of Canadian pork
The Canadians have started export pork to India. They quantify potential exports at £1m in year one,, a slightly inflated figure in our view. (Source Canadian Government, our comment)

Japan

Frozen Stock
The Japanese stock for imported frozen pig meat had fallen by 26% by the end of 2015 compared with the previous year, this could translate to a potential demand from Japan of this meat during 2016. (Source: Mercolleida)

China

Fewer pigs
China slaughtered 214m pigs in large abattoirs in 2015, a fall of 9.46%. BOABC forecasts a further fall of 3% in 2016. (Source, CNAgri)

Manure treatment
Faced with increasing problems of pollution of water and land resources, China aims to have 85% of pig manure recycled by 2020. This will involve farms with more than 500 pigs. This sounds very ambitious indeed. (Source, CNAgri, our comment)

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