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AHDB Pork Weekly Export Bulletin


14 March 2016

AHDB Pork Weekly Export Bulletin - 14 March 2016AHDB Pork Weekly Export Bulletin - 14 March 2016


British Pig Executive Weekly Export Bulletin

AHDB Pork was present at Foodex this week. The show closes today and a full report will be given in the next bulletin.

The pork crisis is occupying minds in Brussels. The call by the Commission for ideas from governments to tackle the continuing low prices has not produced new or outstanding concepts. Philippe Borremans the Chairman of UECBV, has written to the Commission demanding once again the resumption of access discussions with Russia. The letter was addressed to Frederica Mogherini, the EU High Representative, asking specifically for the Russian Farm Minister to be taken off the list of Russian people targeted under restrictive measures in order to resume discussions.

A revised new pork EHC taking into account the recent changes of Korean import regulations has been sent to Seoul for approval and will be available soon.

Hilckmann has closed its two abattoirs (see below) and points out that the cost of not supplying the Chinese market is at least €6 per pig.

France

French pig meat exports down
During the first 11 months of 2015, pig meat exports fell by 2.8% to 629,600 tonnes. Higher shipments to third countries, up by 2.5%, did not balance lower exports to EU markets, down by 5%. Volumes sold to Italy decreased by 19.8%, notably for bone-in hams. Although tough competition from other member states played a role, a better market for these cuts on the French market and lower demand in Italy were the main factors for this significant decrease. China led the way on third country markets with an increase of 41%, particularly for offal but cuts increased 72.9%. Exports to other third countries (South Korea, Philippines) were lower on the year.

Cooked ham under pressure
In 2015, the price war between French supermarkets was felt by the charcuterie sector where cooked ham remains the traditional heavy weight. Retail sales of charcuterie products decreased by 0.1% in value and cooked ham sales lost €10m out of a total turnover of €1.4 billion. In 2015, dry charcuterie sales increased by €14.5m, representing the highest growth of the charcuterie sector where dry ham holds the largest market share, with 44% of dry charcuterie market. Leading brands are Aoste, with 17.2% of the segment, followed by Delpeyrat at 5.8%.

Pink hats
A number of pig producers of the association SEF (Sauvons l’élevage français) released 6 piglets, painted in blue, white and red, in a Cora hypermarket in Pacé in Brittany. About 90 farmers removed 70% of meat-based processed products from the shelves and put them on trolleys in the car park with a poster “FOREIGN MEAT” stressing the risk of finding growth promoters, antibiotics, meat and bone meal in these products and labelled them as “TOXIC” by the farmers. The next visit targeted the Géant Casino in Saint Grégoire near Rennes and more are expected in the coming days.

Markets
Pork: For several market sessions, the base price has been stable at Plérin. “Le Marché du Porc Breton” explains that “until now, the price allows fluidity and corresponds certainly with an accurate demand for French pork meat”. However, it does predict that “the demand from third country markets, which slowly awakens, “will influence the evolution of European base prices but also of French prices”.
Piglets: FNP-Coop de France and the Breton prices for piglets increased slowly last week. For 25kg weaners, the rise was equal to €c1per kg. For suckling pigs, the increase was of €c57 per head in Brittany and €c27 in the Nord-Picardie region.
Cuts: This week marked the end of the school holidays, trade picked up again in Rungis but, according to some wholesalers who were expecting more trade, the market is not very lively. Also, some traders have mentioned that some retailers report demand for winter products has dropped.

Germany

Fight to keep pork on the menu
There’s a battle taking place in Germany over one of the country’s most beloved foods. An arm of the Chancellor party is fighting to keep pork on the menu in public institutions. This followed reports that some reportedly removed pork to avoid offending Muslims. The German debate comes just one month after Denmark ruled it mandatory for all public canteens to have pork on the menu, citing “Danish food culture”. (Source: rt.com)

Markets
Two weeks ago, the pig price in Germany has dropped to 1,24 EUR/kg dw. This week, the new recommended pig price in Germany has increased to 1,29 EUR/kg dw. The demand from the abattoirs is growing ¬- the supply from most producer, was satisfying. The reason for the higher recommended pig price is due to Easter. Prices for most meat cuts are increasing as well. (Source, AMI)

METRO Group strengthens wholesale business with the acquisition of RUNGIS express
With the acquisition of the leading premium foods supplier RUNGIS express, METRO Group is purposefully extending the delivery business of its METRO Cash & Carry wholesale operations. Subject to approval by the responsible antitrust authorities and supervisory bodies, the Düsseldorf-based retail group will acquire the German and international business of RUNGIS express with headquarters in Meckenheim as well as the corresponding logistics and service activities. With this investment, METRO Group once again underscores its repositioning as a multi-channel retail company that purposefully combines its online and offline business.

RUNGIS express is a leading company in the field of food service distribution. The company forms part of the Cool Chain Group, which operates various trading and logistics entities. The brand and the independence of RUNGIS express will also be retained after the takeover. Also included are the activities of RUNGIS express in Austria, Poland, Portugal, Switzerland and Spain as well as its logistics activities with its headquarters in Germany. This acquisition will complement the existing food distribution activities of METRO Cash & Carry with special expertise and know-how in the FSD segment. The parties agreed not to disclose the value of the transaction. (Source, www.metrogroup.de)

Record meat production
In 2015, Germany produced 8.22m tonnes of meat against 8.20m tonnes in 2014. Pork represents 67.8% of volumes at 5.56m tonnes (+0.8%). However, value is likely to be down although figures are not given. (Source, AFZ)

Netherlands

Historical Dutch plant closes
Hilckmann, one of the historic slaughterhouses in The Netherlands, has announced that it will close immediately. Plans to build a new slaughterhouse were investigated but, apparently, there weren’t sufficient funds as the plant is not approved to export to China. (Source: Mercolleida)

Hilckmann to stop slaughtering
The Nijmegen company slaughtering 20,000 pigs and 400 cattle per week and operating two plants is to stop its operation due to structural issues making it impossible to refurbish the plants to Chinese standard. The plant has a 7% share of Dutch pig slaughter but would need a €42m upgrade. The abattoir is rumoured to lose €8 per pig at the moment. This is not good news for the Dutch pork sector. The family business was created in 1970 by Franz Hilckmann, and his children Dominique and Kathelijne have managed the two plants since 2006. Vion Boxtel has taken 10,000 pigs per week from Hilckmann, with the rest split between Westfort, Van Rooi and German abattoirs. Compaxo currently works to capacity. It is thought that middles will now be cured in Vion Scherpenzeel. (Source, Boerderij Vandaag)

Serbia

Germany’s Tönnies to invest €300m in Serbia’s pig industry
Serbia’s Prime Minister Alcksandar Vu?i?, stated that, in the first year of operation in the Serbian market, Tönnies will purchase pigs from local farms and set up a meat processing facility. Also, Tönnies is working on establishing 10 pig farms in Serbia (Source, GlobalMeats)

Canada

Proposed pork promotion and research agency
The creation of a new Canadian pork promotion and research agency would administer the collection and distribution of a national levy collected on the pork sales. The levy would also be collected from sales of imported pork. (Source, farmscape.com)

Mexico

Mexico welcomes several promotions of Spanish White Layered pork
Interporc will develop several marketing initiatives in Mexico during March, as part of the internationalisation plan for the promotion of Spanish white layered pork on international markets. On 10 March, at Casa Fran Restaurant in Mexico City, more than 100 guests are invited, the event will introduce Spanish pork to the market. Guests include meat importers, the media, Spanish and Mexican public administrations and representatives from the Canal HoReCa, among others. The event will showcase different cuts, including hams and sausages. (Source, CdeComunicacion)

Kazakhstan

Higher pork prices
According to the Statistics Agency of the Republic of Kazakhstan, in January 2016 the average wholesale offer pork price in the country was KZT457,200 per tonne (US$1,328 per tonne) which represents a considerable increase compared to the average December 2015 price (KZT401,600 per tonne - US$1,167 per tonne). (Source, agroperspectiva.com)

Russia

New pig-breeding complex
Novgorod oblast administration and the state-owned company Rosagroleasing have discussed the possibility of construction of a modern pig-breeding complex in the region. The development would consist of a section to keep 5,000 sows and a hog finishing barn for 50,000 pigs annually. (Source: velikiynovgorod.ru)

RUB 14.5 million allocated to fight ASF in Penza oblast
The Penza oblast administrators are planning to allocate RUB14.51m to fight ASF in the region. After several cases of the disease were registered in Penza and Penza oblast, local administrators introduced an emergency situation to prevent further spread of the disease. The RUB14.51m will be used to compensate for losses sustained by pig breeders and to purchase test systems to diagnose ASF. (Source, pigua.info)

Cherkizovo Group to invest RUB10 billion
The management of the Cherkizovo Group made a decision to invest RUB10b in the construction of pig-breeding complexes in Lipetsk and Voronezh oblasts. The complexes will include pig-breeding facilities and feed-production plants. The planned annual capacity is 70,000 tonnes of pork. (Source, banki-vrn.ru)

Belgium

Salaisons Depuyt buys Aro
The two companies have a total turnover of €75m and are active in Flanders with a large range of chilled and frozen products for premium retailers. (Source, Food & Meat)

New producers’ organisation?
Belgian producers and stakeholders in the pork sector believe a new organisation is needed to communicate farmers’ information on feed and pork prices. (Source, Boerderij Vandaag)

Denmark

More live pig exports
In 2015, Denmark slaughtered 18.99m pigs up 0.9% on 2014. Live export amounted to 12.31m heads (+9.2%). (Source, AFZ)

Switzerland

Micarna buys Gabriel Fleury
The acquisitive Swiss heavy weight is buying another family firm producing dry-cured ham in the Canton de Vaux. (Source, AFZ)

Ireland

Imports blamed (again)
Irish pig producers blame imports for low prices and demonstrated outside Kerry Foods in Shillelagh (Co Wicklow). It is still acknowledged that some of the 95,000 tonnes imported to the Republic is re-exported. However, the Irish Farmers’ Association blames processors and retailers for using imported pork as “confusing and detrimental to Irish producers”. (Source, Irish Farmers’ Journal)

USA

The USA accepts the EU regionalisation of ASF
US Animal and Plant Health Inspection Service (APHIS) has recognised European Union and EU Member State Regionalisation Decisions for African Swine Fever (ASF) by updating the APHIS’s list of affected regions. These regions currently include portions of Estonia, Latvia, Lithuania, and Poland, and all of Sardinia. APHIS will list the EU- and EU member State-defined regions as a single entity. This will allow Poland in particular to export pork to the USA (Source, European Commission)

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