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AHDB Pork Weekly Export Bulletin


19 July 2016

AHDB Pork Weekly Export Bulletin - 18 July 2016AHDB Pork Weekly Export Bulletin - 18 July 2016


British Pig Executive Weekly Export Bulletin

Pork exports in May continued their strong performance with 14,232 tonnes worth £16,746m, an increase of 25% compared with May 2015. Over the first five months of this year, exports were up 28.3% in value to £93.656m with offal increasing 105.2% to £23.672m. Exports to Mainland China, USA, the Philippines and Hong Kong were particularly strong. Exports of processed pork are weak so far this year, with sausage exports easing by 10%.

Vion is quoting €1.63 per kg this week, confirming the improved demand in the EU and Third Country markets, despite higher production. Earlier this year, prices were as low as €1.20 per kg, well below production costs. The European Commission reckons pork demand should grow by 1% this year. Price development in the USA are mirroring the EU.

A meeting is taking place in London on Monday, organised by the China-Britain Business Council (CBBC). Experts from the China Certification and Inspection Group (CCIC – the London based China certification body), the China National Certification Agency (CNCA – the body currently certifying meat plant for exports to Mainland China) and the China Quality Centre (CQC) will discuss matters such as organic certification for China, plant registration and the Chinese regulatory system, including the New Food Safety Law (NFSL) that entered into force last October. This is a general food sector meeting, details and registration can be found here

It is now possible to access the EHCs without connecting to TRACES, simply by visiting the CIRCA website. There are 30 EHCs available on the system to Canada, Mexico, Colombia, New Zealand and USA, including all pork EHCs. Users can directly receive a notification when the export certificates are updated. To do this they are asked to follow the procedure described in "TRACESToolkit_CIRCABC" accessible via the link underneath. This requires a subscription to the secured ECAS website of the Commission:
This year’s Meat Export Conference was well covered by the British meat and farming media. Also of note, the Irish Farmers’ Journal gave the event a whole page and Boerderij Vandaag in Holland gave half a page, with the accent on British pork exports to China mentioning the support of Meryl Ward.

Huge expansion plans in Andalucía. There are a great number of pork projects in Spain on the back of rising production and exports but the scale of the new Faccsa project (see below) is rather extraordinary.

Belgium

First payment of special fund to pig farmers
Belgian pig farmers have this week received the first payment from the special help fund “Concertation Chaîne” worth €7.5m. A second payment of €7.5m is due to take place in a year’s time. The money comes from a special levy of €0.10 – €0.15 raised in the downstream production chain - see past bulletins. (Source, Belgian Ministry of Agriculture)

Group of Butchers takes over De Roller
The takeover of the De Roller family concerns cements its leadership in the premium processed meat sector in Benelux. (Source, Vlees Magazine)

Netherlands

New pig industry plan “will bring pain to the sector”
The new industry plan entails more further processed products under the name “Holland Varken”, innovation and cost reduction in the chain to divorce itself from the race for the cheapest pork. It is not clear how the plan presented by the Secretary of State for Economic Affairs, Martijn Van Dam, will be fleshed out. The POV producers’ organisation is globally supportive, so are the main political parties. It claims Dutch pig production has high environmental credentials, pig welfare and feed wholesomeness. This “revitalising action plan” was proposed by government instead of cash handouts, as in Belgium. (Source, Boerderij Vandaag)

POV is now the main pig producers’ organisation
The Procenten Organisatie Varkenshouderij (POV), led by Ingrid Jensen, claims to now be the most representative organisation for pig producers in the Netherlands with 80% pf pig farmers covering 90% of Dutch pig production. (Source, Boerderij Vanddag)

Prime Meat buys Strogoff
The well-known meat distributor has been taken over by Prime Meat-Lebouille. The brand and the distribution in Northern Holland will continue. (Source, own)

Antibiotics-free pork

The Keten Duurzaam Varkensvlees (KDV+ – The Sustainable Pork Chain concern) is discussing with Dutch retailers the marketing of antibiotics-free pork. KDV+ represents 300 producers and works with the Westfort abattoir, meat distributors and processors. (Source, Vlees Magazine)

More organic pork
The Groene Weg, Vion’s organic subsidiary, plans to increase its output from 80,000 to 100,000 pigs per year. Some 65 farms supply the concern, with prices being determined every three months and the organic pork and beef sold in its own 12 butcheries. The growth rate of the Dutch organic pork market is 6-7% per year. (Source, Boerderij Vandaag)

Germany

Tenglemann takeover rejected
The High Court in Dusseldorf has rejected the ministerial approval of the takeover of Tenglemann-Kaiser by Edeka. (Source, various)

More money for initiative Tierwohl
By 2018, the funding for the German pig and poultry welfare initiative will increase to €100m. This will be sufficient to cover 4,500 pig producers in the scheme. (Source, Boerderij Vandaag)

Pork exporters worried
In 2015, Germany exported €774m of meat to the UK. This included €183m of pork, €170m of pork products and €139m of sausages. In particular, the UK buys 24% of German processed pork exports. (Source, AFZ)

Denmark

New welfare label
The new label, Stjernekød (Starred meat), will be in place in 2017. It will work in a similar way to the Dutch scheme with three levels. However, the standards are not very taxing and mainly apply in terms of space with the 3* pigs having some outdoor access. The scheme is supported by Danish Crown, Aldi, Lidl, the Guild of Master Butchers but not by Coop. A major goal of the scheme is to differentiate Danish pork against imported product. (Source, food-supply.dk)

Danepork to expand
The Danepork abattoir in St Lihme has finally been authorised to expand. It will now have capacity for 6,600 pigs per week. (Source, food-supply.dk)

Italy

Trouble for Parmacotto
The financial police (Gardia di Finanza) have seized €11m from Parmacotto, the important pork processor, for a number of financial frauds. The Company has been in financial trouble for some time. (Source, this week)

France

Improved price
AgroMousquetaires, the centralised buying structure of Intermarché, claimed they will pay their pig suppliers at the MPB (Marché du Porc Breton) price. This is excellent news for producers as pig prices reached their highest level over the past two years: €1.437 per kg on 4 July, despite fairly strong pig supplies. On the contrary, on 7 July, Cooperl decided to disconnect from the MPB price. The Farmers union “Coordination Rurale” criticised the decision of the cooperative at a time when the producers’ situation just started to improve.

Couic 2018
Couic 2018 is the name of the campaign launched by the animal protection group Welfarm to stop castration of piglets by 2018. There are not many alternatives to castration:
No castration, this is the route chosen by Cooperl, who already have 80% of their piglets non castrated, firsts results are positives as feed conversion is superior and piglets have more muscle and less fat. Feed needs to be enriched (less appetite for non-castrated pigs) but over the same period non-castrated pigs produce a carcass with an additional 2kg, compared with castrated pigs, the final result for the producer is €4 additional per pig or €8 per boar. The down side is the smell (boar taint) which affect 2 - 5% of carcases, boar taint is identified by specialists who smell carcasses at the abattoir.
Vaccination or immune-castration, the vaccine stops the production of hormones which convey boar taint, it necessitates two injections and is rarely used in France.

Anaesthesia is too expensive and analgesia needs to be operated some time before the castration.
Early slaughtering, this is done in Spain but 80kg pigs are too light for the French market.

Markets
Pork: The 56 TMP base price was firm at the beginning of this week, which is short week due to the bank holiday on the 14 July. The price increased by €c0.2. According to “Le marché du porc Breton” demand from wholesalers will remain high, the improved weather is good for consumption of seasonal cuts.
Piglets: Firmness is the word across the European Union, even if it is unusual for the season. Prices are firm or slightly increased. FNP-Coop de France indices continue to increase, they increased by €c9 for 25kg weaners and €1.64 for post-weaning piglets, which confirms the fluidity of the market.
Cuts: Sales were low due to the poor weather at the end of Spring. Between 28 December 2015 and 12 June 2016, household purchases decreased by 7.2% compared with the same period a year earlier. This decrease was more marked for loins, falling by 8.2%, than for other cuts, easing by 1.3%. Prices are slowly increasing with the average rising by 1.2% to €7,06 per kg on average.

Spain

Faccsa has grand plans
Ramón Soler, the MD of Faccsa-Prolongo, plans to invest €200m and build a new abattoir in La Capellania near Malaga. At 160,000sqm and capacity for 200,000 pigs per week, it will be one of the largest in Europe, if not the largest. In addition, the Company plans to develop a production base of 300,000 sows in Andalucia. (Souce, Eurocarne on line)

ElPozo employee initiatives
ElPozo is to put in place around 200 improvements proposed by its employees. The changes are a clear example of ElPozo Alimentación’s strategy to motivate and add value to its workforce’s initiatives to help to increase the company’s efficiency. (Source: CdeComunicación)

Osborne buys back its 20% shares from Fosun
Osborne, owner of the company “5 Jotas”, has announced the purchase of 20% of the shares from the Chinese Group Fosun, which were purchased by Fosun in 2014 from Osborne initially. China is “5 Jotas” second market after Spain. (Source: Eurocarne)

Poland

Higher Polish exports
In the first quarter of 2016, the Polish pork sector exported some 104,000 tonnes representing an increase of 5% compared with the same period a year earlier. From January to March 2016, some 170,000 tonnes of pork meat were imported to Poland, up 3% compared with the same period a year earlier. Pig meat dominates Poland’s meat market with an average Pole estimated to consume about 39.5kg of pork annually, according to the Warsaw-based Institute of Agricultural and Food Economics. (Source, The Pig Site)

Russia

Concentration of production
The top 20 Russian producers now represent 61% of total Russian pork production. Production has risen from 820,000 tonnes in 2010 to 1.9m tonnes in 2015. The top ten groups are: Miratorg, RusAgro, Cherzikovo, Belogorie, Agramaya, AgroProKomplekta, Kopitania, Velikoluksky, VPK Don and Ostankino. (Source, IFIP)

ASF reported Saratov oblast
A new outbreak of ASF was registered in Saratov oblast, Romanovsky region on 12 July. Laboratory tests confirmed ASF. (Source, sarnovosti.ru)

Ukraine

Pork price update

Wholesale pork prices in the Ukraine remained similar to week earlier levels. As of last Friday, the average wholesale prices for pork in liveweight was UAH30-31 per kg (US$1.20-1.25 per kg). The main reason of low pork prices is low demand from consumers and therefore prices have not increased as they have across the EU over the last 11 weeks. (Source, pigua.info)

Exports
According to State Fiscal Service data, during the January to June period this year, the Ukraine exported 1,340 tonnes of fresh, chilled and frozen pork. At this level, it was 11 times lower than the corresponding period a year ago. In contrast, over the same six month period, pork imports grew by 42% to 2,160 tonnes. Main sources were Germany (47%), Poland (20%) and the Netherlands (almost 18%). (Source, pigua.info)

Belarus

Higher production
According to the National Statistics Committee of Belarus, at 31 May the pig population breeding enterprises totaled 2,804,300 head. Production in the first five months of 2016 is reported to have increased by 12.5% to 173,900 tonnes. (Source, agroperspectiva.com)

USA

New site for Prestage plant
Following an earlier rejection, Prestage Farms has opted for Wright County in Iowa for the site of its new huge pork processing plant. (Souce, Pork Network)

Canada

Japanese influence improves Canadian Pork
Japan takes largely chilled pork from Canada. The Japanese market has encouraged Canada to develop higher quality pork from higher quality animals. Packers have had to invest and make adjustments specially for the Japanese market. The Canadian Pork Council report genetics have also shifted to meet Japanese requirements. (Source: mysteinbach.ca)

Brazil

Brazililian’s pig meat production forecast
According to the President of the Brazilian Animal Protein Association (ABPA) predictions, 2015 production levels will be maintained in 2016 as a whole at 3.64m tonnes. Brazilian pig meat exports in 2016 are forecast to increase by 28% with Russia and China as their major markets (Source: Eurocarne)

Cuba

Cuba Open for US Meat and Poultry
The Food Safety and Inspection Service (FSIS) announced that all federally inspected meat, poultry and egg plants in the US are now eligible to export to Cuba. Meat and poultry exporters to Cuba are required to document their shipments with letters of certificate for export, and only cash sales are permitted. (Source: foodsafetynews.com)

China

Crackdown on polluting farms
The Ministry of Environmental Protection passed laws on water pollution in 2014 for local authorities to enact, it is only recently that the crackdown has taken place. For example, the 100,000 people in the coastal town of Ninghai in Zhejiang Province has closed 1,283 pig farms. Unsurprisingly, Ninghai is a tourist spot. The Province of Fujiang closed 15,000 pig farms in the second half of 2015, although many farms were relocated to lower populated areas. People refusing to comply are fined and/or jailed. The remaining farms are requested to fit slurry tanks and biogas plants. People keeping a few pigs at home are not affected by the crackdown. (Source, Global Meat News)

Interesting niche product
Shibenyuan (the name means “Original Taste of Food” in Chinese) is marketing traditional Tongdian ham from free-range black pigs raised in the Nujiang Canyon in Yunnan Province. The hams are washed with spirit before dry-curing for 18 months. (Source, Asian Meat)

Chinese demand
Rabobank reports Chinese farmers’ losses and government measures to close farms have driven the Chinese sow herd size to an historic low. China will need to increase pork imports to cover this year’s supply gap, which is expected to continue until 2017. Rabobank predict local users of imported pork will stick with that product because of its consistent quality and lower price compared with Chinese production. (Source: blackburnnews.com)

Thailand

CPF sausage expansion
Charoen Pokphand Foods (CPF) plans to open its third sausage factory in Nakhon Province, increasing the company’ production capacity to near 100,000 tonnes per year. CPF is also building a liquid food factory (sauces, curry paste, hospital food…) in Ayutthaya Province. CPF has a 30% share of the Thai sausage market and has export plans. (Source, Asian Meat)

Korea

Higher exports
Last week South Korea reported its first case of Classical Swine Fever (CSF) since January 2014. (Source: Mercolleida)

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