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AHDB Pork Weekly Export Bulletin


04 July 2016

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


British Pig Executive Weekly Export Bulletin

Some 110 people attended the 12th AHDB Meat Export Conference at the Warwick Hilton. Obviously, the implication of the UK’s decision to leave the European Union dominated discussions. The six presentations included updates on trade developments, with particular attention to China, France and Poland, market access and a presentation by the largest Japanese meat company, Nippon Ham, which presented their pork import policies. 

The situation has improved considerably in May and June with the EU pig carcase price now above €150 per 100kg, up 10% compared with last month and 2% higher on the year. Demand is also improving with exports going very well, up 35% in the 1st semester. Therefore, Commissioner Hogan made it clear that he does not see the need for the deployment of a PSA scheme for the pig meat sector for the time being.

France

Brexit: the perspective from the French pig meat industry
According to Culture Viande (Federation of French meat Industry and cooperatives), the exit of the UK from the EU will have a significant impact on the European pig meat industry. Behind Germany and Italy, the UK is the third largest importer of European pig meat in the EU and imports 60,000 tonnes from France. The UK is also the leading importer of charcuterie at 412,000 tonnes (predominantly cooked ham and bacon), mainly supplied by Denmark but followed by Germany and Netherlands and for dried charcuterie from Spain and Italy.

FNP
The French National Pig Federation had its annual general meeting in Moteau (East of France) on 9 June and clearly explained that the recent economic improvement of the industry is the result of better prices on the Chinese market but also noted that there is no long-term visibility for French production. Pig producers have been suffering over the last eight years and the President, Paul Auffray, confirmed that priority is given to the French market and, therefore, added value must be captured by producers. Although contractualisation is an attractive route for some producers, there are only 5m pigs involved in quality schemes, therefore what about the 15 million pigs outside of these schemes? The lack of solidarity within the supply chain has been criticised by Mr Auffray who pointed at some cooperatives who improve financial results by importing pig meat.

Charcuterie consumption on the rise
Thanks to a jump of 10% in the foodservice sector, charcuterie consumption in France increased by 1.8% in 2015. According to FICT (French federation of charcuterie processors), production of charcuterie products (including dry charcuterie) increased by 0.8% last year to 1m tonnes reaching a total turnover of €5.8b (+0.5%). Finally, thanks to the development of new products using poultry, beef and other species as a base, exports of French charcuterie increased by 4.3% in value.

Markets
Pork: Availability remains limited and does not cover current demand. The 56 TMP base price increased by €c0.9 last Monday at Plérin. Proof of the fluidity of the trade is the lower carcase weight, currently at 93.5kg far from 95.5kg last spring.
Piglets: Due to the firmer prices at pork butchers, the market for piglets has improved. Prices are firm and even increasing depending on the region and category considered. FNP-Coop de Frances indices are still increasing, up €c7 for 25kg weaners and €1.27 for 8kg piglets.
Cuts: As every year, retailers are very cautious, holidays are starting and supplies begin to ease being in the big cities, whereas, in holiday resorts, retailers are more confident, especially if the sun arrives.

Spain

Food Taipei
Interpoc presented Spanish White Layered Pig Meat at the International Exhibition “Food Taipei”, where dozens of importers, chefs and opinion leaders from Taiwan were able to establish professional contacts and to better understand the quality of the product. Spanish pig meat exports to Taiwan were valued at €24.5m in 2015 (Source, CdeComunicacion)

Germany

Markets
The availability of slaughter pigs in Germany remains comparably low and in some regions is described as scarce. Slaughter weights have also decreased and numbers are forecast to remain tight over the coming weeks. Despite reduced slaughter activity, pigs can be easily placed with slaughterers. Meat traders however, demand a respite from price increases to enable the prices for pork cuts on meat markets to catch up. However, producers once more increased the recommended price by €c3 per kg to €1.63 per kg. (Source, AMI)

Russia

Pork import results
As of 12 June, year to date Russia imported 117,900 tonnes of pork and pork products which is 24.6% more than during the same period in 2015. Frozen pork imports grew by 30.1% on the year and amounted to 103,900 tonnes. Pig offal products grew by 66.1% to 3,700 tonnes and pork fat imports increased by 28.4% to 10,200 tonnes. (Source, emeat.ru)

Ukraine

Wholesale pork prices update
Wholesale pork prices in Ukraine were more or less stable. Last Friday, the wholesale prices for pork in live weight amounted to UAH27-28 per kg (US$0.96-1.12 per kg). (Source, pigua.info)

New ASF outbreak
On 28 June, an ASF outbreak at a pig farm in Krynka, Pervomaysk region of Mykolayiv oblast, was registered. Nine of the 125 pigs on the farm died of the disease and measures have been taken to prevent further spread of the disease. (Source, pigua.info)

Canada

Olymel expands
The Olymel abattoir in Saint Esprit, will extend by around 29,250 m2 bringing the total area of the facility to around 179,750 m2. Capacity will increase from 30,000 to 40,000 pigs per week and the manufacture of added value will increase. Currently, 810 employees work at the plant and the plant expansion will create an additional 200 jobs. In other company news, Olymel and Atrahan Transformation Inc., a slaughtering and butchering firm in Yamachiche, began integrating their operations. Additionally, Olymel concluded an agreement in principle to form a partnership in Lucyporc with another Yamachiche-based pig slaughtering and butchering company owned by Groupe Robitaille. We have already reported that on 7 June, Olymel acquired La Fernandière in Trois-Rivières, a sausage producer. (Source, various)

Brazil

Increased slaughtering
In the first quarter of 2016, the slaughter of pigs in Brazil increased by 9.6% compared with the same period last year, reaching 10.06m pigs. The greatest growth was concentrated in three southern states of the country, Paraná, Rio Grande do Sul and Santa Catarina which accounted for 66% of the national slaughter. (Source,Mercolleida)

China

Abattoirs are not making money
Chinese abattoirs are squeezed by the high pig prices with many losing money. However, they have been successful in stemming the recent massive rises and the market seems to have peaked. Chinese slaughterings fell by 3.94% in May compared with the corresponding month last year to just below 15m head. Imports are up 120% to 163,500 tonnes. (Source, CNAgri)

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