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AHDB Pork Weekly Export Bulletin


04 April 2016

AHDB Pork Weekly Export Bulletin - 4 April 2016AHDB Pork Weekly Export Bulletin - 4 April 2016


British Pig Executive Weekly Export Bulletin

EU pork exports rose by 23.5% in January led once again by higher shipments to China and the Philippines. Pig offal exports jumped up by more than 30%. Early indications show a slowdown of shipments in February following the very strong January, that included Chinese New Year.

France

The pig industry in 2015
Despite a 5.6% decrease in the cost of feed and in spite of technical progress demonstrated by the feed index falling from 3.05 in 2005 to 2.8 in 2015, prices were still were too low to see farmers profit. Four producers out of ten have a negative income and for a 200-sow farm the loss is around €50,000. Today, between 10 and 15% of producers are in a very precarious situation. Looking ahead, the support of a €7,000 contribution to cover bank interest rates and a €2,500 reduction in social charges will be a real help. However, producers are still waiting for support from retailers of up to €9.00 per pig. Although lower feed prices and finally the mention of country of origin on prepared meals getting closer should result in the situation improving this year.

Ecoantibio
Within the Ecoantibio national plan, designed to fight against the appearance of bacteria resistance to antibiotics, the French government published a decree on 17 March 2016 to restrict the usage of “critical” antibiotics. From April 2016, about 50 veterinary “critical” antibiotic products which active molecules are also used for human health will be forbidden as preventive therapy, their usage will still be permitted for curative purpose. When one of these “critical “antibiotic products is prescribed, the maximum duration of the treatment may not exceed one month. Also, tests will be requested to check if “critical” antibiotics could be replaced by non-“critical” antibiotics.

Spain

Philippines and Japan targeted
During April, Interporc will develop promotional activities in the Philippines and Japan. The Asian markets are becoming more important for the Spanish pig sector. In 2015, Spain exported 462,942 tonnes to the Asian Continent worth nearly €900m. Ten years ago, these markets only represented 10% of the current total. (Source, CdeComunicacion)

Paletas Marpa continues improving facilities
Paletas Marpa, supplier of white cured shoulders for Mercadona, is improving its facilities in Albentosa (Teruel) and Cheste (Valencia). (Source, Alimarket)

Tello achieved an increase in turnover of 58% in the last 4 years
During 2015, the company has invoiced €108m which was 10% more than in 2014 and some 58% higher than four years ago. (Source, Eurocarne)

Ukraine

Anthrax case in Kharkiv oblast
According to a report from the Sanitary and Epidemiological Inspection Administration in Kharkiv oblast, a case of anthrax was registered among domestic pigs in Chuguyev. People that were in contact with the pigs are undergoing preventative treatment and samples of substances that were in contact with pigs are being tested. The last case of anthrax among people in Kharkiv region was registered in 2003 and in animals in 2007. (Source, pigua.info)

Wholesale pork prices update
During the past week, wholesale pork prices, in live weight term, marginally increased in the Ukraine. As of 28 March, the average price for first grade pork was UAH29.7 per kg (US$1.30 per kg). (Source, pigua.info)

Production of pork and sausages grew
According to data published by the National Statistics Service, in February 2016 production of fresh and chilled pork in the Ukraine increased by 13.8% compared with January, totalling 19,800 tonnes. Sausage production also increased, up 2.4%, totalling 17.1 tonnes. (Source, pigua.info)

Belarus

Joint investment
According to information published by the local administration, Beldan FLLC, a joint Belarussian-Danish enterprise, is planning to invest €32m in construction of a farm to produce bacon pigs in the Slonimskiy region of Grodno oblast. The farm will consist of a closed system providing protection from possible outbreaks of infection in the region. The farm will produce first grade bacon pork from Yorkshire, Landrace and Duroc cross-breed pigs. Planned capacity of the enterprise is 55,000 head per year. The construction is planned to be completed in 2017. (Source, belta.by)

Import ban
On 26 March, the Department of Veterinary and Food Surveillance of Belarus imposed a temporary ban on the import of pigs, pork and products originating from pigs from four regions of Russia: Novgorod, Penza and Riazan oblasts and Kabardino-Balkariya, after outbreaks of the ASF were registered. (Source, agronews.by)

USA

Smithfield Foods sees sales of packaged, fresh pork divisions soar
Smithfield Food’s packaged meats division continued with its best year-on-year performance which played a major role in maintaining the company’s profit margin. The division recorded a record operating profit of $673.3m for the year, up some $213.5m on 2014. Fresh Pork operating profits increased $80.6m to $177.3m in 2015. (Source, Daily Press)

Tyson introduces new natural pork brand
Tyson Fresh Meats debuts its new Open Prairie Natural Pork brand, featuring minimally processed pork containing no artificial ingredients. The hogs raised for the meat follow a strict set of criteria, including no antibiotics, no added hormones and stall freed. (Source, Pork Network)

Record pork production in February
Pig slaughter in February reached 9.43m heads in February up 4% year-on-year, setting a new record. (Source, Meat & Poultry)

Paraguay

Increase of Paraguayan pork exports products
Paraguayan exports of pork products were up 57% in the first two months of 2016 compared with the same period a year ago. However, the proceeds from those sales only grew by 6.8% as prices have been significantly depressed on the main Paraguayan market, Russian (Source, Eurocarne)

Cuba

Cuba a window of opportunity for EU Pork
Now that the US has gained access to Cuba, Jean-Luc Mériaux (UECBV Secretary General) said he believed the EU should focus on agreeing a trade deal with Cuba to help ease the current situation on the European pork sector. (Source, Global Meat)

Agri-food agreement with the USA
USDA Secretary Vilsak signed a commercial and development agreement on food and agriculture with Cuba during President Obama’s recent visit. US exporters are eyeing the US$ 2 billion (£1.41bn) Cuban food imports. Poultry will come first but Canada and the EU will need to battle to keep their market share. (Source, various)

Philippines

Pig farmers threaten shutdown
Philippines residents might soon have to look for meat substitutes for their tocino, patatim, pork adobo, and lechon paksiw if Philippines pig farmers go through with a threatened five-day shutdown of hog sales in response to government inaction on illegal pork smuggling. (Source, AEC Newstoday.com)

URC opens new abattoir
Universal Robina Corportation (URC) has opened a new AAA standard pig abattoir in Antipolo City. The company claims the plant has a capacity of 1,000 pigs per hour for fresh and frozen pork production. It owns pig and poultry farms, and markets pork products under the Robina brand. (Source, Asian Meat)

Economic growth
The GDP of Côte d’Ivoire should grow by more than 6% this year following a rise of 8.4% in 2015. The country benefits from a diversified economy and a rise of cacao prices. It was one of our best performing markets in 2014 and 2015. According to the FMI, the economy of sub-Saharan Africa should grow by 4.3% in 2016, up from 3.8% in 2015 as the Continent recovers from the fall of raw material prices and the Chinese slowdown. Countries with a diversified, more industrialised economy such as Kenya and Ethiopia should also register growth in excess of 6%. (Source, Le Figaro)

India

Encouraging pig farming in the Punjab
The department of Animal Husbandry Punjab has been providing various services to encourage the young to go into pig farming as an alternative venture. There are about 234 pig farmers in the state and 50,000 pigs in Punjab. During the 2014-15 year. the state produced about 76,000 tonnes of pork. (Source, News Express)

Access for Canadian pork
Canada has secured access to the Indian market. They claim it could be worth £1.5m in the first year. (Source, Asian Pork)

Ireland

More pigs in a weak market
So far this year, slaughter is running 9% up on last year. The breeding herd is back 5% on a year ago, creating some hope of a tightening of supplies in the second part of the year. Pig farmers in Ireland have equated the current €1.34/kg to a milk price of €14c per litre. Pressure is being put on retailers to increase the price of Bord Bía certified Irish bacon by €40c/kg which would deliver an increase of €5c./kg to producers. (Source, Irish Farmers’ Journal)

Germany

Farmer demonstrations
The DBV, the German Farmers’ Union, demonstrated in front of 100 supermarkets all over Germany last week in protest against the low prices for pork and milk under the motto “We produce your breakfast but your money does not reach us”. (Source, various)

Fewer pigs in Bavaria
The Land has lost 4.5% of its sows to 247,400. The number of pigs per holding is now 601, with the majority of pigs in holdings of more than 1,000 heads, a major change for a province with traditionally small pig farms. (Source, Fleischwirtschaft, our comment)

Denmark

Brørup in good form
The Tönnies subsidiary slaughtered 9% more pigs in 2015 to 1.8m head for a turnover of € 266m. Tönnies owns Brørup, now trading as SB pork since 2005 and has recently bought Tican, giving the company a real weight on the Danish pork scene. Tönnies is now examining its future strategy with Tican and potential synergies. (Source, Fleishcwirtschaft)

Netherlands

Better Leven processed pork in Albert Heijn
The first higher welfare Better Leven 1* processed pork product was purchased by Secretary of State for Economic Affairs Martijn Van Dam in Albert Heijn XL in Leidschendam. (Source, Boerderij Vandaag)

Money for restructuring?
Rabobank and producers’ organisation POV want the €10m envelope for pig farmers to be spent on a programme of quality improvement, market orientation including export, pork chain initiatives and restructuration of the sector. (Source, Boerderij Vandaag)

Estonia

Rey is bought on the cheap

The pork producer processor currently on receivership has been bought for €300,000 although LHV Pank, the largest creditor wanted €1.2m. AS Rey collapsed owing to the loss of export markets due to the presence of African Swine Fever in the Baltic States. (Source, Baltic-course)

Brazil

Strong progression of JBS
The world’s largest meat processor increased its turnover by 35% in 2015 to Real 162bn. (£31.3bn.). Net profit is Real 4.6bn. (£888m). The company says it exports 30% of all its production to the Near and Far East. (Source, JBS)

Aurora shines
Cooperativa Central Aurora generated a turnover of Real 7,700m. in 2015 (£1.585bn.) and now claims to be the third largest agro-industrial group in Brazil. It now exports 24% of its production with a progression of 35% in 2015. Aurora turnover is two-thirds poultry and one third pork. Main pork markets include Hong Kong, Russia, China and Singapore. (Source, Eurocarne on line)

Dark clouds on the horizon
The perspective of Dilma Rousseff’s impeachment, the worsening economic situation and potential social unrest make for a sombre perspective for Brazil. As seen above, export-focused meat companies are doing well. However, falling local consumption of pork, chicken and beef leading to higher export volumes could unsettle world trade by throwing yet again more cheap meat on the market, thus worsening the current glut and lowering international prices. (Source, own)

Japan

No change in import trends
In 2015, trends show a continuing slowdown of pork imports from USA, Denmark and Chile to the benefits of other exporters, particularly Spain. The USA remains the largest exporter with a share of 33.2%, followed by Canada with 21.1% (unchanged), Denmark 13.8%, Mexico 8.9%, Spain 9.3%, Chile, 2.8%, the Netherlands 2.4% and Hungary 2.7% (this includes Mangalitsa pork, increasingly popular in Japan). Mexico and Chile benefit from a Free Trade Agreement. (Source, ICEX)

NH investment plans
Nippon Ham (NH) is looking to invest £160m in Australia, Turkey and other places to supply the growing demand for meat. (Source, Asian Meat)

China

Pork prices keep climbing
Wholesale price in 36 Chinese cities for pork sides breached the £2.50/kg mark and live pig prices £2.00/kg. This means a massive boost to domestic producers’ profitability. Gross profit over feed costs for farrow to finish is now £ 84 /head. This means a very favourable position for imports. (Source, CNAgri, our comment)

More pigs in Xinjiang
CP Group has invested in a 500,000 slaughter pigs complex in the lowly populated Xinjiang Province. In recent days, Da Bei Nong Group and Tianyi Group successfully signed an agreement for a cooperative project which consists of feed processing, hog breeding, organic fertilizer factory, etc. for planned investment of £12m. The project will reach an annual capacity of 100,000 slaughter pigs. Tecon Animal Husbandry Biotechnology Co. Has invested in pig breeding, feed and feeding management, animal health products R&D, pig production and animal processing. The group now has 12 breeding farms with capacity of over 500,000 heads in Xinjiang, and plans to build and drive 50 more farms in next two/three years. (Source, CNAgri)

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