BPEX Export Bulletin - July 2010
The British Pig Executive's (BPEX) Export Bulletin for June/July 2010 reports pig industry trends from around the world.British pork exports for the first four months of the year rebounded as expected to 41,933 tonnes (+25 per cent on 2009). All main destinations are up.
Traders are reporting increasing difficulties with the re-export of meat from Hong Kong to mainland China. Many cold stores are said to be full. The tightening by Chinese authorities results from the finding of a haul of 120kg of drugs in one container.
Denmark
Market
European fresh meat markets are under pressure. Thus, everywhere it is very difficult to sell at the present prices. However, there are no reports on prices decreases yet. Especially the leg markets are under pressure and there are reports on slightly decreasing prices. The Danish exporters explain the decreasing prices of legs by the fact that they are unable to sell these products on third country markets. Accordingly, it is expected that prices will be sagging over the next period. Other cuts are traded at unchanged prices. The UK bacon market remains unchanged. The same applies for exports to third country markets. The prices in China have been under pressure due to imports through Hong Kong and Vietnam being closed. The closure did not directly affect the Danish exporters but the market has been affected on liquidity due to many stranded containers.
(Sources, Danish Crown, Tican, Danish Agriculture and Food Council)
Prognosis points at rising pork prices
New forecast made by Agriculture & Food predicts higher prices for pork than previously expected. The average quote is now expected to be €1.26 per kg. or seven Euro cents more than the slaughterhouses paid last year. Compared to the latest forecast of the quote made three months ago, the upward revised expectations equals extra income of €33,000 for a typical pig producer with an annual production of 10,000 slaughter pigs. Now Agriculture & Food expects that the aggregate economic result for a farmer having both piglets and slaughter pigs will be €0.70 in profit per pig, and the president of the organisation's pork activities, Lindhart Nielsen, sees the better prospects as a signal to among others, the financial sector, that investments and consolidation in the agricultural sector will increase again.
(Source, Borsen)
Swedish criticism of Danish pig feed
In Sweden, a general anger has developed due to the fact that blood and fat from pigs can be used in feed for pigs. The Swedish Minister for Agriculture calls it ethically offensive; however, the issue is not discussed elsewhere in the EU. When BSE shook Europe in the 1990s, meat and bone meal was prohibited in feed for e.g. pigs. Blood and fat from pigs were never covered by the regulations. In Sweden, large producers like Scan and other companies in the meat industry made agreements to keep blood and fat away from animal feed on ethical grounds. But much of the feed is imported from Denmark and Germany where this type of feed is used. In Denmark, this type of feed is manufactured by Daka.
(Source, Landbrugsavisen)
Danish Slaughterhouses - payments week 26 | |||
Slaughterhouse | Danish Crown | Tican | |
---|---|---|---|
Slaughter pigs (70.0-86.9 kg) Difference from last week |
€1.389 Unchanged |
€1.389 Unchanged |
|
Sows (Above 129.9kg) Difference from last week |
€0.895 Unchanged |
€0.895 Unchanged |
|
Boars (Above 109.9kg) Difference from last week |
€0.761 Unchanged |
€0.761 Unchanged |
France
Prestor No. 3
The group of producers presided by Guillaume Roué has joined with two other groups of producers in Brittany to become the third group of producers in France. Cooperl remains number one in front of Aveltis. With 800 producers, Prestor collects and sells 2.4 million pigs per year. Prestor and Cecab also control almost 70 per cent of the Gad group (slaughtering and processing) presided by Loïc Gad.
Clitravi
Robert Volut is the new President of Clitravi, the European association of meat processors representing 27 national Federation of meat processors. Clitavri represents 560,000 employees and a turnover of €66.3 billion. The President of the Charcuterie federation (FICT) in France is now an essential interlocutor of the EU Commission and the European Parliament, he will also be a key spokesperson to producers associations, distributors associations and consumers associations.
For more information, please contact AHDB France on 00 33 1 60 71 04 49.
Germany
Market
The European markets for slaughter pigs have been very inconsitent. While in some memberstates prices remained unchanged quotations in Germany, Austria, The Netherlands and Belgium dropped. The most significant decrease was reported in Germany and Austria where prices fell by eight Euro cents due to continuosly difficult sales of cuts. However, a reduction in prices is not unusual at this time of the year and prices are expected to recover and at least remain unchanged over the next week.
(Source, ISN, Landwirt.com)
Re-affirmed forecast
Due to the shoppers' ongoing desire to spend their money despite the governments' economy measures as well as due to the positive effects of the football World Cup, the German retail industry still expects stable profits in 2010. Turnover is expected to reach last year's level of €400 billion.
(Source, afz)
Standardisation of carbon footprint needed
As part of its 'Carbon Footprint' and sustainability project, Westfleisch does not intend to impose constraints on pig suppliers. According to Jörg Bartel, in charge of Westfleisch's quality management, the carbon footprint must not be considered a competitive tool but every company should aim to optimise its carbon dioxide emissions in order to identify changes and proof improvements. Of particular importance should be the implementation of standardisation in the calculation of the carbon footprint as there are currently no binding guidelines for agriculture, animal husbandry and feeding. In particular, in the field of by-products being used as feedstuffs, there is still ample freedom as to the calculation undertaken – protein of animal origin derived from by-products could, for instance, be attributed a positive impact. In order to achieve comparable and consistent results, system boundaries for calculation as well as for evaluation would need to be clearly defined. Mr Bartel stressed that, as a mission statement, Westfleisch have set a comprehensive definition of sustainability with carbon footprint just being one part of it.
(Source, topagrar)
The Netherlands
Proviande bankrupt
Proviande is the latest Dutch company to go into bankruptcy. Van Rooi is taking over the concern with its 140 employees in its two plants of Gieten and Leek. Proviande retail packs for Dutch supermarkets and restaurants chains. Its operates a complete supply chain for under its top pork brand Porc d'Or. (Vlees Magazine on line)
Belgium
Flemish pork promotion
Vlam, the Flemish food marketing body is planning to spend €5.6 million on meat promotion over the next three years, a third of which will be funded by the EU.
Spain
ElPozo promotes 'Bienestar'
From 1 July, ElPozo launches a new campaign on national television for cooked ham 'ElPozo Bienestar' (Bienestar means well-being in Spanish).
ElPozo will open its new plant for cooked ham in late 2011
ElPozo Alimentación has planned to launch in late 2011 its new cooked ham and comminuted products plant. The plant suffered a fire on 15 January, just months before of their chosen date for its official opening. Some 18,000 square metres was affected by the fire. The total cost for the reconstruction is of €90 million for a combined area of 50,000 square metres. ElPozo achieved sales of €622 million in 2009, an increase of 1.3 per cent over the previous year €614 million, and has 3,500 employees.
The Jamón Serrano's Fundation works to improve the Serrano ham image
The Foundation has taken on the task of enhancing the image of Serrano ham with various promotional activities. Sought by the disclosure and the participation of expert nutritionists, dieticians, chefs, etc., the objective is to remove some myths about the ham, in relation to its nutritional profile, and to assist and advise consumers how to cut and use the product.
Russia
Top 10 pork producers produced 367,000 tonnes of pork in 2009
According to Inventica company, this accounts for 36 per cent of the industrial pork production and 12.9 per cent of the market share in general (including all types of producers and imported meat). The top five largest producers include the Group of Companies Miratorg, Agro-Belogorye Ltd, PRODO Management Ltd, Cherkizovo Group and OJSC Belgorodskiy Bekon. A total production volume of above-mentioned companies adds up to 266,900 tons of pork in carcass weight. The share of the market leader Miratorg Group of Companies equals 7.4 per cent of overall pork production.
Miratorg new plans
Miratorg holding includes 10 automatically controlled pig complexes. In 2010-2012, the company plans to launch nine new pig complexes, of which five are currently under construction. The capacity of new complexes will allow the company to secure a 5.7 per cent share in carcass weight or 10.6 per cent in overall volumes of the pork produced in Russia.
Ukraine
Kalita secures new loan
The large integrated concern Kalita Group of Companies, part of an agricultural holding Sagro, received an unsecured loan totalling €2.3 million. The cheap loan from Crédit Agricole will allow the purchase of the pig rearing equipment manufactured by a French company I-TEK Elevage in order to modernize the existing pig complex. During the last five years, Kalita has imported British genetics.
Iceland
EU opens accession talks
At the recent EU summit in Brussels, the Council accepted the opening of accession negotiations with Iceland. European Parliament Foreign Affairs Committee backed the bid. At this stage, Croatia is the country most likely to join the EU in the near future.
Hungary
Two new protected denominations
Famous Hungarian sausages, kolbász Csabai and Gyulai kolbász, are the latest meat products to be awarded PGI status. They were already protected under national legislation.
US
Rebuilding cash flow
The US pig breeding herd on 1 June shrank 3.6 per cent from 12 months earlier to 64.4 million, a sign that some producers are repaying debt rather than expanding after a return to profit in March ended more than two years of losses. US hog farms have slashed herds after losing about $6 billion from late 2007 until early this year, as corn prices jumped and the recession and swine flu curbed pork demand, said Ron Plain, a livestock economist at the University of Missouri in Columbia. Hog producers made about $39 per animal sold for slaughter in May, the third straight month of profits, he said.
"Producers tend to make changes in response to money in the bank, rather than money in the future," Dr Plain said. "I don't see any expansion, given the current conditions. Producers are waiting until their bankers are a little happier."
Stock market rumours
Smithfield Foods shares have risen five per cent on rumours of a takeover by JBS.
New pork plant planned in Illinois
Triumph Foods is planning to build a major new abattoir in East Moline, Illinois. This could open in a couple of years' time.
Debate on antibiotics
The prophylactic use of hormones in pig production has been questioned by the Principal Deputy Commissioner of the Food & Drug Administration (FDA), Joshua Sharfstein. The FDA may not be yet seek an outright ban but has sought marked lowering of use of antibiotics since 1977. Unsurprisingly, the US pork sector has already reacted quoting control measure on usage and residues.
(Meat Importers’ Council of America / Washington Post)
South Korea
Free Trade Agreement still not ratified
The Commission, Council and Parliament are still in discussions regarding safeguards in the Korean Free Trade Agreement (FTA) which is likely to benefit hugely European pork producers. The Council is yet to submit the FTA to Parliament.
Pork Prices Hamburg Market Week commencing 28 June 2010 | |
Cut Name | Price Range (€/kg) |
---|---|
Round cut leg | 2.30/2.40 |
Leg (boneless, rindless max.fat. 3mm) | 3.20/3.40 |
Boneless shoulder | 2.40/2.55 |
Picnic shoulder | 1.70/1.90 |
Collar | 2.50/2.75 |
Belly (bone-in, ex-breast) | 1.55/1.80 |
Sheet boned belly (rindless) | 1.75/1.95 |
Jowl | 1.05/1.15 |
Half pig carcasses | 1.88/2.08 |
Pork prices Barcelona Market Week Commencing 28 June 2010 | |
Cut Name | Price Range (€/kg) |
---|---|
Carcasses (secondary grade) | 1.672/1.678 |
Gerona loin chops | 2.43/2.46 |
Loin eye muscle | 3.53/3.56 |
Spare ribs | 2.68/2.71 |
Fillets | 5.83/5.86 |
Round cut legs | |
Cooked ham | 2.23/2.26 |
Rindless picnic shoulder | 1.53/1.56 |
Belly | 1.84/1.87 |
Smoked belly with spare rib section cut off | 2.27/2.30 |
Shoulder chap or head jowls | |
Back fat, rindless | 0.58/0.61 |
July 2010