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AHDB Pork Weekly Export Bulletin


08 March 2016

AHDB Pork Weekly Export Bulletin - 7 March 2016AHDB Pork Weekly Export Bulletin - 7 March 2016


British Pig Executive Weekly Export Bulletin

The UK exported £309m worth of pork, pig offal, bacon, ham and sausages in 2015. Despite the high value of Sterling, pork export volumes increased by 2.43%, at 18,136 tonnes although the value was down by 5.75% to 186m. Frozen pork exports to Third Countries increased in value and price which is encouraging in the view of the low world pork prices. Offal export rose by more than 30% to 58,929 tonnes, worth 38m. Overall, 2015 was a satisfactory year for UK pork exports on a challenging market with exports of offal to China the brightest development.

EU exports of pork products were up by 7.4% to 3.158m tonnes with carcase meat export increasing by 12% in 2015. According to EU statistics, UK pork exports to Third Countries were up by 28.2% to 102,279 tonnes. Germany leads the increase at 811,000 tonnes (+17.2%), followed by Denmark at 551,000 tonnes (+1.7%), Spain with 495,000 tonnes (+30.2%) followed by Holland, France and Poland, putting the UK in seventh position. This increase is mainly driven by Chinese demand with shipments increasing by 53.8% to 1.098m tonnes.

After many months, the new simplified Indian pork certificate has been published and should be made available very soon. One disadvantage is that we should expect more completion from EU exporters on the Indian market as more countries will be able to meet the sanitary conditions. AHDB is leading a commercial mission to India in April.

The main news from the important Gulfood exhibition in Dubai is the massive poultry investment in countries such as KSA, Turkey, Russia, the Ukraine and Iran. The world is already flooded with cheap poultry which is undermining the global protein market and additional production can only drag commodity prices down. This includes some cheaper pork items. In Dubai, we maintain a healthy market share of the local pork market. Spinneys supermarkets have launched an own-label range of bacon, prepacked in Ireland.

Denmark

Tican takeover
The European Commission’s competition authority has approved the takeover of Tican by Tönnies, the German pork leader. (Source, European Commission)

France

French pig production up
In 2015, French pig producers retained their pigs on farm a longer which resulted in the average carcase weight increasing by 1.1%. Over the 12-month period, pig production increased by 2% in numbers and 4% in tonnage. In January 2016, the average price of “porc charcutier” (standard pig for processing) was €1.24 per kg, which was 1.5% lower than in January 2015 and 12% lower compared with the average price over the past 5 years. This is the result of a strong offer and reduced exports.

FICT
The French federation of pork processors (FICT), who recently left the interprofessional body Inaporc have written to President Hollande to stress that country of origin labelling of meat contained in processed charcuterie products has no impact on sales and is definitely not the solution to pig industry problems. What is important, according to FICT, is the balance between supply and demand, for example the limited production of organic pigs pushes the processors to buy organic pig meat from abroad.

Strike at Cooperl
500 staff gathered in front of the Lamballe meat plant of Cooperl on Monday 29 February. Three unions were represented to protest against new measures presented by Cooperl to alleviate the impact of the crisis. The two main issues were a salary freeze for 2016 and new calculation for 13th month.

Ireland

Crisis payment
Pig farmers who sent at least 200 pigs to slaughter in 2015 will receive a flat payment of €3,000. This forms part of the €1m attributed to Ireland as crisis fund as part of the €13.7m European Union support package. (Source, Irish Farmers’ Journal)

Leaner industry
In 1960, there were 110,900 holdings with pigs in the Republic of Ireland. This number has now fallen to 1,500 holdings with 250-300 large pig farmers producing the bulk of Irish pork. With producers now losing €c25 per kg, this number is expected to fall further. In 2015, the margin over feed prices was €c39 per kg, the lowest it has been since 1999. (Source, Irish Farmers’ Journal)

Welcoming Vietnam
Ireland gained access to the Vietnamese market in late 2014. In 2015, Irish processors exported more than 1,500 tonnes of pork to Vietnam. (Source, Irish Farmers’ Journal)

Northern Ireland

Pork producers’ revenues collapse
According to provisional figures, released by the Department of Agriculture and Rural Development (DARD), revenues for pig farmers have dropped by 51% from £45,012 in 2014 to £22,250 in 2015. Pig meat output is down by 15% to £113m. Dairy farmers fare worse with revenue down 78%. According to the December census, there are 43,400 breeding sows in Northern Ireland, 6% higher than a year ago. (Source, Irish Farmers’ Journal)

Spain

Tello’s expansion
Cárnicas Tello of Castilla-La Mancha is investing €33m in its plant, creating 150 to 200 new jobs. (Source, Eurocarne on line)

Kazakhstan

Falling production and consumption
The number of pigs in Kazakhstan has fallen from 3m in 1990 to about 884,000 in 2015. The fall of the Christian Russian population from 6.2m to 3.6m has not helping consumption levels. About two-third of the pigs are kept in backyards with low productivity. Data regarding production, consumption and productivity is not consistent. Pig production is subsidized at a similar level to Russia and despite some high profile investments, the government has unrealistic growth expectations such as the development of exports of 60,000 tonnes by 2020. (Source, Pig Progress)

Ukraine

Wholesale pork prices update
During the final week of February, wholesale pork prices in the Ukraine slightly decreased. First first-grade pork prices ranged from UAH24.5 to UAH26.0 per kg (US$0.93-0.99 per kg). Most producers believe that prices have hit their low and there will be no further decreases. They are also optimistic that demand will increase in early March due to a 4-day holiday celebration. (Source, pigua.info)

Pork production decrease
According data from the State Statistic Service, in January 2016, the Ukraine produced 17,400 tonnes of chilled pork, down 1.5% compared with January 2015. Frozen pork production amounted to 1,200 tonnes, down 26% on the year. (Source, pigua.info)

Russia

Pork production increased
According to Ministry of Agriculture data, January 2016 pork production, in liveweight, increased by 8.9% compared with January 2015 and totaled 244,400 tonnes. Production increases were mainly reported in Voronezh, Pskov, Tver, Kursk oblasts and the Republic of Bashkortostan. (Source, pigua.info)

Pork prices increased
During late February, pork prices in Russia were reported to have increased by 5.8% in the space of a week. As of 22 February, the average price for first grade live pigs was RUB 99.5 per kg. Half-carcase prices increased by 4.4%. In contrast, imported pork prices were reported to have decreased by 1.6%, in central regions the average price for imported half-carcases had eased to RUB155 per kg.
(Source, pigua.info)

USA

Tyson goes for antibiotics-free pork
Tyson has introduced Open Prairie Natural Pork, which will rely on meat from pigs raised without antibiotics, hormones, or the use of gestation crates. The company which announced its own move away from antibiotics for poultry last year. (Source, Tyson)

Senate votes on GM labelling
The Senate Committee for Agriculture, Nutrition and Forestry, by a 14 to 6 vote, approved a bill establishing a national voluntary bioengineered food labelling standard pre-empting any state or local laws that would require the mandatory labelling of such foods. The bill was promptly advanced to the full Senate in view of the fact that Vermont’s mandatory labelling bill takes effect on 1 July. This is a clear victory for the GMO industry. (Source, various)

China

Pork prices are still rising after the Chinese New Year
On 19 February, the average wholesale price of pig carcases in 36 large and medium-sized cities was 25.17 RMB per kg, a lofty £2.72 per kg, up 4.35% from the week before the Chinese New Year holiday and 7.5% higher over a two week period. Over the past week, prices fell by 2.5% but remain historically high. Producers still remain cautious about expanding due to the credit and economic situation combined with environmental constraints and two years of destocking. Supplies remain tight despite healthy margins. In contrast, the situation in the chicken sector is currently disastrous. This leaves pork retail price inflation at 8.7% year on year. The interesting thing is that the Chinese government is now keen to stoke inflation as the economic growth slows and deflation looms. With pork still the largest component of the Consumer Price Index (CPI) accounting for 10% of it, the government is unfazed by this spike in pork prices unlike in 2008 when an overheated pork market following the blue tongue outbreak led to high inflation. Mr Hu, an economist at UBS, does not foresee a major increase in pork prices in 2016 but predicts relative stability. (Source, CNAgri; China Daily)

New Hope acquisition
New Hope is planning to buy 70% of the Besun Agricultural Group and concentrate on pig production. (Source, CNAgri)

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