Amongst recent events, ALIC the Japanese state livestock organisation paid a courtesy visit to England. The short tour included a plant visit and presentations of British pork production. BPEX presented offal exports at the new Meat Up exhibition jointly with EBLEX. The presentation included information panels and a display of various chilled fifth-quarter products.

Denmark

Market

The European markets are quiet. The holiday season is starting and in combination with the low temperatures and sales from stocks under the private storage scheme, the market has ample supplies. The European market for fresh legs is stable and prices remain unchanged. Also prices of other cuts remain unchanged. There is a steady trade to the British bacon market and prices remain unchanged. As to markets outside the EU, the demand from China continues at a fine level and there is a stable trade on other markets.
(Sources, Danish Crown, Tican, Danish Agriculture & Food Council)

New forecast adjusts expected results positively

A new forecast prepared by Science Centre for Farming has a considerable and positive adjustment to the expected situation in Danish pig production for 2011. Now it is expected that there will be a positive result as an average both with sow keeping, slaughter pigs and integrated farms.

According to Science Centre for Farming, the adjustment is due to increasing pig prices which more than balances the increases of feed prices. Producers of piglets as well as producers of slaughter pigs can expect a decent progress but the producers of piglets are still a little behind. The expected average business result for slaughter pigs is €37,000, whereas the sow farms must do with a result of €21,000. Financing costs are expected to remain unchanged compared to 2010 but on the other hand, the interest rate is expected to increase in 2012.

For each single farm, the business result much depends on the rate of self-supply of grain, which as an average is approximately 60 per cent. The expected average settling price for 2011 is €1.383/kg. It is 1.6 Euro-cents more than expected in March. The positive development in prices is expected to continue during 2012. Still, it is a strong international market that supported the quote and resulted in a quote which, so far, has been higher during 2011 than during the preceding year.

Production of pork within the EU remains quite high, but the forecast expects that the production of pork is going to decline during the second part of the year. The result for 2012 is expected to be at level with 2011.
(Source, Landbrug og Fødevaret)

Negative result in Brorup slaughterhouse

The new annual report for the slaughterhouse in Brorup, which is owned by the Tönnies group, shows that the company had a deficit of €5.3 million. The company explains the result by the fact that its exports to markets such as Japan and the UK are small compared to exports by Danish Crown and Tican. The competitors have been able to get good prices on such markets and they have been transferred to the farmers through the settling price for slaughter pigs.

It is a burden in the financial statement for Brorup slaughterhouse, which has had to follow the pork quote in the competition for slaughter pigs on the Danish market. The development in 2010 continued in 2011 notes the slaughterhouse, which by the end of May had lost half of its thin equity of €1.33 million. However, the owners behind the large Germany slaughter house group, Tönnies, have made a declaration of unconditional support to the company during 2011.

During 2010 the slaughterhouse reached one million slaughterings annually and a turnover of €135 million after making an expansion of production in the autumn of 2009. The company has tripled its level from 2007. At present, the company is having a conflict with the employees in connection with a planned new expansion of the slaughterhouse where the company wants a change of the working conditions. Brorup is aiming at slaughtering 1.5 million pigs annually after the expansion. Management expects that the loss of equity will be recovered when after the expansion the slaughterhouse will improve its position on the pork markets. During 2010, Brorup sold the main part of its €135 million production within the EU, while the Danish market accounted for less than 10 per cent.
(Source, Landbrugsavisen)

France

Collective against social dumping in Europe

The collective was set up at the request of the French government and the EU Commission to put pressure on Germany in order to implement a minimal wage to all employees in the meat sector, without any discrimination related to nationality or origin. Labour costs are three-fold lower in Germany, which, considering the impact of labour cost on added value of meat (80 per cent) creates a major advantage to German meat companies. One example: for a French abattoir which would slaughter 30,000 pigs per week, the comparative disadvantage would amount to €150,000 per week compared with a German company. The consequence is that every year the French meat industry is decreasing by two per cent and the German meat industry is growing by five per cent. The group is now composed of several professional organisations, not all specialised in pig meat and not all French.

Piglets

No great changes are indicated for the end of the week. Enthusiasm missing in the market for charcuterie products and the high cost of production does nothing to encourage optimism in fatteners. At the same time, outputs remain buoyant both for 25-kg and 8-kg weighs, which has maintained a certain pressure on prices, depending on the area or operator.

Cuts

Sales are good for the time of the year particularly with grilling cuts and sausages. The week with the 14 July public holiday, should also be dynamic. Prices are holding firm.

Germany

Market

The trade with pig meat on the Hamburg wholesale market is reported to be balanced. Although the summer holidays in the northern part of the country are slowing down the trade, there are no surplus quantities on the market. Sales of hams are experienced to be rather difficult while byproducts such as fat and jowls as well as bellies for processing are marketed without difficulties. In terms of sow meat, there are hardly any changes in quotations. Unchanged cost prices for domestic product as well as such from the neighboring EU member states result in largely unchanged selling prices for cuts.
(Source, AMI)

Tönnies takes over Zur-Mühlen-Group

Clemens Tönnies has announced his aim to increase his share in the Zur-Mühlen-Group to 100 per cent over the next three years. He has held shares in the group for several years now. According to a Tönnies spokesperson, the companies will continue to operate separately and there will be no interweaving of operation in the future since the involvement in the Zur-Mühlen-Group is a purely private investment for Clemens Tönnies.
(Source, Lebensmittel Praxis)

Slight decrease in pig numbers

According to the Federal Statistics Bureau, Destatis, the number of pigs in Germany has slightly decreased. As of 3 May 2011 some 26.7 million pigs were counted in the country, which is a slight decrease by 0.7 per cent over the last six months. The representative survey resulting in these figures was conducted among enterprises with a minimum of 50 pigs or 10 breeding sows. The number of pig farms has decreased by 3.7 per cent to 31,700 over the last six months. The average number of pigs per farm, however, has increased from 818 to 844. 14.5 million pigs or 54 per cent of all pigs in Germany are kept in the regions of North-Rhine-Westphalia and Lower Saxony. The lowest number in pigs was recorded in the Saarland region with an average number of pigs per farm of 272.
(Source, ISN)

The Netherlands

The way ahead for Dutch production

The ING report states that there will be only 2,550 breeding farms in the Netherlands by 2020 and these will still account for 900,000 sows. Some 150 farms will have more than 1,200 sows. There will be only 10 abattoirs left from 14 now and only five centralised pork buyers.

Unox goes for high-welfare pork

The smoked pork ring producer part of Unilever with an output of 4.5 million sausages per year will use one-star 'Beter Leven' pork for its production.
(Source, Agrarisch Dagblad)

Spain

ElPozo expects to grow by three per cent

ElPozo Alimentación plans a sales increase of three per cent for this financial year for a turnover of € 682 million. This rate of growth would be less than 2010, which was 6.5 per cent. The company also has budgeted investments worth €30 million to support the brand, employee training and extension of its facilities.

Famadesa in China

Famadesa, from Málaga, is one of the companies authorised by the Chinese authorities to export pork and processed meat products. Recently the company has exported more than 1,000 tonnes of meat to the Chinese market, mainly heads, trotters and tails, all products in high demand. During 2010, Famadesa sold 92,746 tons of pork and its turnover is around €150 million. Of this total, 26 per cent are exports to the EU.

Italy

Costs of production must fall

Italian pig producers lost €0.05 per kg live weight in 2010, which is a lot for a typical 160-kg pig. Losses were even higher in 2010 than in 2009, which was a dreadful year for the heavy pig sector. This summer is expected to be more clement and stronger demand should push prices up. According to last December census, the number of sows in Italy has fallen 2.8 per cent to 740,000 although overall pig numbers are up. Pork self-sufficiency is down to 59 per cent.
(Source, Eurocarni)

Russia

Pig farmers need state support

The traditional annual meeting of the National Union of Pig Farmers was held in Moscow with the participation of the Deputy Minister of Agriculture in Stavropol Territory, Vladimir Chernov, and the heads of agricultural enterprises of the region. The meeting raised the issues of supporting pig breeding, state regulation of the agricultural market and the state programme of agricultural development for 2013-2020.

According to the analysis by the Union experts, meat consumption in Russia is expected to reach the level of 1990 by 2020 – 75kg per person a year. To protect the interests of Russian producers, the heads of agricultural enterprises and members of the Union addressed the Government with a number of suggestions for further regulation of the market. In particular, an increased import duty on live pigs, back fat, meat-and-bone meal tankage, and bypass for feed production were suggested. Great consideration was given during the meeting to preventive measures for ASF.
(Source, furazh.ru)

Total prohibition of pig breeding on private farms due to African siwne fever (ASF) unconfirmed

Detials have appeared in the Russian media that the Governmental Committee on Agricultural Issues, headed by senior vice prime minister, Mr Zubkov, intended to implement emergency measures to suppress the spreading of ASF, including the total prohibition of pig breeding on private backyards and farms. In reality, the issue of certain restrictive measures was raised several times but according to experts, total prohibition never was an option. Experts also believe that it is highly unlikely that peasants could be barred from raising pigs in their backyards, especially just before the elections.

But the main point is that this measure could, if taken harshly, damage not only the private farms, but the market itself. Up to 40 per cent of pork in the country is produced on private farm households. In theory, it is possible, with the ASF rampant, that farmers will switch over to producing poultry, sheep or goats. However, it will be difficult to give up pig production abruptly, as it is a profitable business. A farmer earns RUB11,000 on one nine-month old pig, according to last year prices. Still, senior vice prime minister Zubkov suggested encouraging private farm households to voluntarily switch over to raising sheep or cattle.
(Source, Kazakh-Zerno)

Brazil

Merger of Perdigao and Sadia questioned

CADE, the rapporteur of the competition commission has issued a 500-page report questioning the validity of the merger that led to the creation of Brazil Food in 2009.
(Source, Brazilian Meat Monitor)

JBS–BNDES link under scrutiny

The Brazilian parliament and the Federal Public Prosecutor are enquiring the financial transactions between the state bank and the meat processor.

The Philippines

New restricting import rules

The country has adopted stringent rules for frozen meat regarding packaging, labelling, inspection, traceability and cold chain. Traders say the order unfairly targets overseas suppliers as it applies only to frozen meat and not to fresh. The industry did not have the time to comply with the new requirements and dozens of containers are now impounded. The US, the EU and Canada that represent 97 per cent of pork imports are expressing concern.

Viet Nam

FMD outbreak

An FMD outbreak has been confirmed in 39 Vietnamese provinces. According to the Vietnamese animal health authorities in Hanoi, more than 45,000 animals have died or been culled, 37,760 thereof pigs. According to the director of the animal health authority, Hoang Nam Van, the disease has spread much faster than in previous years for which he blames a certain level of carelessness among local inhabitants and authorities. Nam targets critisism especially that epidemic 'hot spots' are nor managed sufficiently well. Also, contary to the authorities' guidelines, infected livestock are often not culled. Furthermore, bad weather conditions and the keeping of animals on the smallest space just worsen the spreading of FMD. Animal health authorities and the provinces are now working jointly on the implementation of a vaccination scheme in order to bring the disease under control.
(Source, ISN)