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AHDB Pork Weekly Export Bulletin


23 May 2016

AHDB Pork Weekly Export Bulletin - 23 May 2016AHDB Pork Weekly Export Bulletin - 23 May 2016


British Pig Executive Weekly Export Bulletin

In March, UK pork exports maintained their growth momentum. They are up 22% in volume and 37% in value compared with March 2015, to 19,400 tonnes and £21m for fresh and frozen pork alone. Large exports to Mainland China and higher sow meat exports to Germany explain this good performance. Offal exports have doubled over the year, driven by high demand from Greater China and the Philippines.
An exporters’ meeting, involving Defra and FSA, will take place on Monday to review meat hygiene requirements for Mainland China.
AHDB will support the British Pig Association for the forthcoming visit of the Punjab government. Punjab has made pig farming a priority. The 234 pig farmers produce 76,000 tonnes of pork. The government has already announced that it will set up four breeding farms, training courses and will collaborate with the British Pig Association. In addition, AVO is building a new pig abattoir for an investment of £4.8m. BPA and AHDB first visited Punjab in December 2013.
UKTI has posted a video demonstrating the UK presence at Foodex in Tokyo in March. It is available here.

European Union

EU

Interesting pork processing data
A new French study by IFIP shows wide differences between the UK and the rest of Europe regarding meat processing. In the UK, only 61% of processed meat use pork as raw material against typically 80% for EU countries with peaks of 85% in Spain and Romania. The other exception is Belgium with 67% but this number includes a lot of processed poultry products destined for export to Muslim countries. In terms of production volume, Poland comes a surprising fourth behind Germany, Italy and the UK with 1.5m tonnes produced, slightly ahead of France and Spain. In terms of added value of pork exports, Spain, Germany and of course Italy score best, Denmark, Poland and especially France lag behind - UK data is not available. The Spanish added value sector is worth €0.74 per kg and at the bottom, French added value is worth €0.32 per kg. (Source Porc Magazine)

France

Reserve fund
The system proposed by FNP (National Pig Federation) to build a reserve for pig producers has been rejected by Culture Viande. FICT report that any increase in prices at retail, resulting from the collection system, could damage sales and put the industry at risk. FNP has registered the processors position and confirmed they are determined to succeed with a system before summer…

CIWF
During the Parliamentary audit of videos showing abattoir cruelty, the French section of CIWF has requested that permanent surveillance by CCTV cameras in abattoirs should be in place. The NGO also requests the development of alternative methods to CO2 usage in pig abattoirs.

Copvial in trouble
The company’s cattle and pig abattoirs located in Alsace are in trouble. Debts amounting to €8m, include a deficit of €1.5m from their charcuterie processing unit. There is a concern that producers may not be paid. Three options are being investigated as a way forward, a take over from either a national, regional or possibly a local enterprise is possible.

Markets
Pork: In all European countries, prices increased last week due to some fluidity in the trade. The average weight for carcases decreased. The German reference gained €c4 a week ago, demand was reported to be high from China. On Thursday, Spanish prices increased by €c4.3, Belgium prices were €c3 higher and a €c7 increase was reported in the Netherlands. In Denmark the increase was €c2.7.
Piglets: Offers are stable while the price at pork butchers is increasing. Prices are stable in Spain and slightly increasing in Germany, Belgium, Denmark and Netherlands.

Denmark

April census
Last week, Statistics Denmark published the results of the April 2016 pig census based on a sample of approximately 2,500 farms. The total pig population is 0.5% lower than a year ago. Breeding stock in the form of pregnant sows registered a fall of 3.7% on the year. (Source, lf.dk)

Markets
On the European market, fresh hams traded on a rising market this week. Other cuts traded at virtually unchanged price levels. For markets further afield, a continued strong trade to China and Japan was reported with calm sales to other third-country destinations. (Source, lf.dk)

Netherlands

Westfort
The new abattoir in Ijsselstein is presented in Vlees Magazine. The slaughter line is highly automated and runs at 650 pigs per hour, with high animal welfare and environmental credentials. The abattoir is the third largest in Holland after Vion and Van Rooi, with a 12-13% share of Dutch slaughter. The abattoir is the result of the merger of Lunenburg Vlees and Egbert Kruiswijk Vleesproduckten in 2013 and stands next to the Kruiswijk processing plant. (Source, Vlees Magazine)

Meat hygiene costs
The costs of meat hygiene controls (NVWA) now amount to €75m per year which has created a healthy debate in the Dutch senate (Tweede Kamer) due to the 12% hike in costs. The organisation spends €13m on live animal certification, €36m on abattoir hygiene, €12m on slaughter stock control, €1.3 on phytosanitary controls and €8m on various other controls. (Source, Boerderij Vandaag)

Record output
In the first quarter, Dutch abattoirs slaughtered 3.55m pigs, a record. Slaughter weights are also up at 95.11kg. (Source, Boerderij Vandaag)

Butchery innovation
Some newly refurbished butcheries now have cooking stations integrated in their counter layouts. This allows cooking demonstrations and the preparation of meals to take away in front of customers. (Source, Vlees Magazine)

Germany

Markets
Due to the loss of a slaughter day in the current week, the German pig market remained roughly balanced. Available numbers increased slightly while the demand from slaughter facilities appeared to be at a normal level. In addition, the cooler temperatures reduced the sales of pork, especially barbecue cuts. Sales are still at an average level, but the extremely high demand of the last weeks has passed. Therefore, the recommended price remained unchanged at €1.42 per kg this week. (Source, AMI)

Sweden

Increase of UK imports
Until 2015, UK pork exports to Sweden amounted to 25-100 tonnes per year. This changed last year when we exported 823 tonnes. Our own USP of high animal welfare and environmental care score well with Swedish buyers and consumers who are amongst the most ethically conscious in Europe. We have now overtaken Ireland, which has had a stronger presence for many years. However, this is a small fraction of German and Danish exports. (Source, Jordbruksverket, Nordic Food Survey)

Spain

Dynamism of the top processors
The top 10 Spanish pork processors increased their production by 2.4% in 2015 to 677,000 tonnes, for a total Spanish production of 1,068m tonnes. Campofrio remains the leader with 142,000 tonnes, followed by Casa Taradellas up 11.3% with 138,000 and has overtaken El Pozo recently. Argal, Incarlopsa and Noël follow. The surprise comes from Comapa. The company was recently taken over by Vall Companys and has increased production by 10,000 tonnes in a single year to 31,000 tonnes. On the fresh pork side, the top 10 slaughterers have increased production by 7.6%, led by Vall Companys followed by Batallé/Juia/Celrà, Jorge, El Pozo, Costa Brava, Incarlopsa and Faccsa. (Source, Baromètre IFIP)

Spanish ham promotion at the Italian Open
During the “Masters 1000” tennis tournament in Rome last week, more than 7,500 tastings of Iberian ham were offered. In addition to the promotion to the 300 tennis players, 430,000 spectators and 600 journalists attended the tournament. These are important figures for this leading tournament that also had 26m Facebook views and 85 hours of international TV coverage (source, CdeComunicación)

Poland

Ranking of meat processors
In terms of turnover, Animex remains the largest firm in Poland, followed by Soko?ow, Pini, Farmutil, Duda, Undykpol, Drosek, Kania, Superdrob, ?ukow, As can be seen, pork processors dominate the rankings. (Source, Gospodarka Mi?sna)

Ukraine

Sanitary issues in Ukraine
Ukraine last week confirmed another outbreak of ASF in the South Eastern region of the country. The outbreak was confirmed on a farm with 14 pigs, 7 of which died, with the remainder being slaughtered. (Source, Mercolleida)

Wholesale pork prices update
As the Easter and May holidays passed, pork prices in Ukraine have started to ease. As of last Friday, wholesale prices for pork in live weight were UAH29-30.5 per kg (US$1.14-1.20 per kg) in the central regions and UAH28.5-29.5 per kg (US$1.13-1.16 per kg) in the western regions. (Source, pigua.info)

Russia

Pork imports grew 59%
According to official data, during the January to March period this year, the volume of imported fresh and frozen pork to Russia increased by 59% compared with the same period a year ago, at 50,200 tonnes. The main driver was the 86% increase in shipments from Brazil. (Source, agbz.ru)

Quarantine introduced in Orlovskaya oblast
An outbreak of the ASF was registered in the Orlovskaya oblast after several pigs died in a private household. Laboratory tests showed that the cause of death was ASF. Necessary measures were taken by the authorities to prevent the spread of the disease. (Source, pigua.info)

Pig breeding complex construction
Construction of the Tiumenskiy pig breeding complex has commenced in the Nizhnetavdinskiy region. The total cost of the project is reported to be in the region of RUB6.5b (US$97m) of which RUB5b are from bank loans. The complex is planned to launch at the end of 2018 with a total capacity of 216,000 pigs. (Source, kommersant.ru)

Belarus

Banned pork from the Ukraine
The Department of Food Surveillance in Belarus banned the import of pork, pigs and derivative products from the Khmelnitskiy oblast of Ukraine on 13 May following a new outbreak of ASF. (Source, sb.by)

USA

Problems in Taiwan
On 2 May, The Committee on Environmental Hygiene of Taiwan approved a proposal to their government to maintain the ban on imported pig meat from the US containing traces of Ractopamine. (Source, Mercolleida)

US Pork Exports to China surge
US exports during March were the highest for 11 months at 195,898 tonnes, up 3% year-on-year. Exports to Greater China were up 80% on the year and the largest volume since December 2011. For the first quarter, exports to China increased 83% in volume and 54% in value. US exports to Japan increased by 3% on the year in March and represented the largest monthly volume since May 2015. (Source, the Pig Site)

US exports to Central and North America
First-quarter US pork exports to Central America were higher in both volume and value, increasing by 24% and 9% respectively. These increases were led by strong growth in Honduras and Guatemala. March exports to Canada were the largest in six months at 18,871 tonnes. In contrast, exports to Mexico fell by 17% on the year. (Source, the Pig Site)

Canada

EU-Canada Free Trade Agreement (CETA)
The agreement should be signed in the autumn and will be ratified by the Canadian, EU and national parliaments, which means an approval by the European Council in the first quarter of 2017 and possible implementation by mid-2017. Regarding pork, there should be an intensification of exchanges, with larger EU exports of processed pork products and larger imports of Canadian pork due to a new 81,000 tariff-free quota. It remains to be seen how much of the quota will be used in the future. (Source, own)

Argentina

Pig sector meeting
A meeting has been held between the Ministry of Agriculture of Argentina and the pork supply chain, with the aim of reaching consensus on tools to help strengthen the sector and promote domestic consumption, together with exports. (Source, Eurocarne)

Brazil

Booming exports
Data for April, shows total Brazilian pork exports totalled 62,000 tonnes, up 47% compared with the corresponding month a year ago. Shipments to Russia were 20% higher on the year, while exports to Hong Kong were 63% up. Exports to China totalled 9,000 tonnes in the month. The current severe economic situation in Brazil has seen lower domestic demand and the value of the Brazilian Real are the main drivers behind the increased exports. (Source, the Pig Site)

China

No dampening of prices
The Chinese ministry of commerce and 12 local governments, including Beijing, Zhejiang and Shaanxi stated that as from December 2015, 150,000 additional tonnes of pork have already been released onto the market. According to the US Department of Agriculture (USDA), the influence of the Chinese stock programme is 'insignificant'. (Source, Pig Progess)

Hormel’s growth
The company wants to double its output in China to 50,000 tonnes with the launch of its fourth processing plant in the city of Jiaxing, Zhejiang Province. The other meat factories are located in Shanghai and Beijing. The last plant does not process meat but peanut butter. In particular, Hormel wants to start producing Spam in China. (Source, Asian Meat)

New Hope’s treasure chest
The major Chinese meat concern has raised two funds worth at total £640m for foreign acquisitions. New Hope already has a presence in Australia, New Zealand and Indonesia. In December, the company bought a 20% stake in Lansing, a US grain trader. New Hope wants to create more added value in pork, duck and chicken and get involved in beef, lamb and shrimps. In China, New Hope bought Benxiang Agriculture, a Shaangxi-based pig producer with an output of 200,000 head per year. It will spend £140m over the next three years to expand pig production in its Hebei, Sichuan and Shandong bases. New Hope reckons there is overcapacity in feed production. The Dabeinong Technology Group reckons feed sales have fallen by 3% in China due to the reduced herd. This may be an understatment, as all large feed manufacturers report sales falling by between 9% and 28%. (Source, Asian Meat, Asian Pork)

India

The USA protest against import rules
Following the requirement that pork imports must be beef-free, in practice a ban on pork from pigs having been fed meat and bone meal, the USA, buoyed by its victory at the WTO on poultry imports against India, protested vigouroulsy. The EHC must certify that the pigs were not fed ingredients of bovine origin. (Source, Asian Meat)

Philippines

UECBV protests regarding change of tariffs
The UECBV, the European meat processors’ organisation has written to the European Commission regarding the change of custom code for pork cutting fat that has led to the increase of import duty of 5% to 30%. The Germans seem to be the most affected by this measure. (Source, UECBV)

Producers want higher tariffs
Philippines pork producers want to increase the level of import duty from 5% to that of pork, 30%, in order to combat ‘technical smuggling’ where offal is subsitituted by meat. (Source, Asian Meat)

Biotech plans to double production
Mindanao-based Biotech Farms plans to double the size of its nucleus farm to 1,200 sows and expand production to supply demand from retailers such as KCC Supermarkets. Biotech uses Genesus genetics. The firm is also investing in a large corn dryer with a capacity of up to 600 tonnes per day as it intends to use more cheap corn in feed. (Source, Asian Pork)

Thailand

CPF upbeat
Charoen Pokhand Foods (CPF) does not believe that the Chinese slowdown will affect the group. It expects sales and profits to increase by 10-15% in 2016 respectively to £8.9b and £ 230m. The dividend yield will rise to 4.1% this year, 4.6% in 2017 and 5% in 2018 as turnover and profits rise. CPF plans to invest £293m in 2016 excluding mergers and acquisitions. (Souce, Asian Meat)

Vietnam

High live exports
China now imports 2,000 to 3,000 live pigs every day from Vietnam. The pigs weigh around 120kg to 140kg (all very fat) and are up in price due to the demand. (Source, Asian Pork)

Vissan pork quality
The processor has started to sell quality assured VietGAP pork in its 146 meat stalls in wet markets and its 309 supermarket concessions in Ho Chi Minh City. Meanwhile, Anco Int. Nutrition (Massan Group) has bought 14% of Vissan as part of an IPO auction. Another 14% of the state-owned group was sold to the public. (Source, Asian Pork)

New penalties for fraudsters
The use of banned substances in livestock farming can now lead to heavier punishment including up to 20 year prison terms. The authorities say the use of salbutamol to enhance leanness in pig is persisting. Some 9.8% of samples tested positive in January; this was reduced to 0.5% in March. The media reports that large stocks of the substance remain in the country. (Source, Asian Pork)

Indonesia

Variations in demand
Asian Pork presents the variations of consumption in this vast country as the different regions have different pork cuisines: Bali likes the whole grilled pork carcase (babi guling); Jakarta with its numerous Chinese restaurants favour belly (samcan); North Sulawesi has its own version of grilled pig (babi putar); neck, belly and legs are also in demand; East Nusa Tenggara people like smoked pork, loin and ham; North Sulawesi love to steam ham and ham skin. (Source, Asian Pork)

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