BPEX Export Bulletin - November 2010
The British Pig Executive's (BPEX) Export Bulletin for November 2010 reports pig industry trends from around the world.After a wait of three years, the UK has signed an agreement that will allow the export of its breeding pigs to China. The deal and future business stemming from the agreement is expected “to be worth around £45 million to the British pig industry over the next five years”. The agreement coincided with Britain's biggest ever trade delegation to China, the world's second-largest economy.
"This agreement gives a valuable boost to the British pig industry and is already delivering results," Business Secretary Vince Cable said. Mr Cable was part of the government team visiting Beijing. Prime Minister David Cameron arrived on Tuesday. Regarding pork exports, British officials say that pig meat exports to China have the potential to rise to over £40 million per year if all UK meat processing plants are approved. A joint Defra – BPEX mission is also due this month in Beijing to finalise certification and plant approval.
Denmark
Market
In general, the markets for fresh meat in Europe are quiet. Still there is no increase in activities due to Christmas trade. Prices in Europe are under pressure with a stable demand and continuing ample supplies to the market. Exports of bacon to the UK remain unchanged. As to third country markets, Japan remains unchanged. It is not just the Danish exporters that are affected. Also other exporters such as the US have experienced a decrease in sales to Japan due to continuing large stocks. Exports to Russia are below the usual level as well. Customers have just few import licences left and everybody is waiting for new import licences to be issued. Exports to China remain unchanged.
(Sources, Danish Crown, Tican, Danish Agriculture & Food Council)
Fewer pigs in Denmark
On 1 October, the stock of pigs totalled 12 million animals. According to Statistics Denmark, this is the lowest number of pigs in Denmark for 10 years. Just since the counting in July three months ago, the stock has decreased by five per cent adjusted for seasonal fluctuations. The stock has been reduced by 14 per cent since it peaked three years ago. The number of slaughter pigs above50 kg has decreased by 20 per cent during the last three years, and as to weaned pigs below 50kg the decrease is 14 per cent. The reduction of the stock of sows and suckling pigs was approximately eight per cent. The number of piglets and slaughter pigs must be regarded in the light of the large export of live pigs abroad, where Germany is taking 80 per cent. In 2009, exports of live pigs were 8.3 million out of which 83 percent were piglets. The total production of pigs, i.e. slaughterings and exports of live animals was 27.7 million pigs in 2009, according to Statistics Denmark.
(Source, Danmarks Statistik)
Carsten Jakobsen retiring
Vice president of Danish Crown, Carsten Jakobsen has decided to leave Danish Crown after his 14 years in the meat business. Mr Jakobsen became member of the corporate management in 1998 in connection with the merger with Vestjyske Slagterier where he was CEO. As president, International, Mr Jakosen was the architect behind the very strong position Tulip Ltd. today possesses on the British market. He was the driving force in establishing a business that within just a few years changed from a turnover of €400 million to today’s turnover of €1.3 billion and a corresponding growth in the number of employees. The task as president of Tulip Ltd. and Plumrose US will be taken over by CEO of Tulip Food Company, Flemming Enevoldsen, who today is member of the corporate management. In the future the corporate management will consist of CEO of Danish Crown, Kjeld Johannesen, CFO Preben Sunke and finally, Flemming Enevoldsen.
(Source, Danish Crown)
Danish Slaughterhouses - payments Week 45 | |||
Slaughterhouse | Danish Crown | Tican | |
---|---|---|---|
Slaughter pigs (70.0-86.9kg) Difference to last week |
Euro 1.229 Unchanged |
Euro 1.229 Unchanged |
|
Sows (Above 129.9 kg) Difference to last week |
Euro 0.873 Unchanged |
Euro 0.873 Unchanged |
|
Boars (Above 109.9 kg) Difference to last week |
Euro 0.801 Unchanged |
Euro 0.801 Unchanged |
France
An entrepreneurial producer
Claude Tarnaud is a pig producer based in Vendée since 1977, 90 per cent of his production is exported (€1 million turnover). With the objective of controlling his production right through the end of the chain, Mr Tarnaud has recently acquired the charcuterie processor, L’Ami Charcutier, which went into receivership (€2.9 million turnover) a few months ago with the loss of one customer representing 18 per cent of its turnover. Mr Tarnaud restructured the company and kept the same management team and today, the accounts are in balance and the next project is to produce farm pigs with no antibiotics and fed with a mix prepared by Mr Tarnaud. The objective is to take the company back to €4 million before the end of 2011.
An entrepreneurial lady
Monique Piffaut is 73 and she remains a very active business woman. After a career at Monoprix and Carrefour, she started the group Financière Turenne Lafayette (FTL) and within 10 years, she acquired 1) William Saurin and its subsidiaries (canned food) 2) Paul Prédault cooked ham processor, Salaisons du Pays d’Oc, dry charcuterie processor, 3) Tradition traiteur catering group and 4) Montagne Noire charcuterie processor. Today, FTL employs 3,000 staff in 16 industrial sites. The objective is to reach €1 billion turnover in 2011.
New start for Paul Prédault
The plans prepared by Monique Piffaut a year ago (see above) on the Paul Prédault site are now materialising. The new site located in Goussainville (north of Paris) gathers in one place the production of three previous sites. Today, the new 7,000-square metre factory (14,000 square metres for the whole site) is totally dedicated to cooked ham production with an objective of 25,000 tonnes, comprising 15,000 tonnes of sliced ham for retail packs and 10,000 of whole hams for charcuterie corners in supermarkets. Focus is placed on the brand, Le Foué.
Pigs
The afternoon session on Wednesday was expected to be quiet. The demand is quite good, so is consumption but availability is still large. Carcass weights are expected to increase further.
Piglets
The dynamism of the market is back and the demand is superior to offer which remains quite restricted. Prices are firm and on the rise according to categories and regions involved. Wait and see whether prices are similar to previous years in a difficult environment for finishers.
Cuts
Sales in volumes are accelerated as presently several supermarket chains are launching special offers at relatively low prices, to the expense of the margins of processors. The difficult flow of the market does not allow a price increase. The activity is reduced because of the bank holiday on Thursday some retailers have reduced their orders which has an impact on some cuts such as ham.
Pork prices RUNGIS week commencing 08 November 2010 | |
Cut name | Price range (Euro/Kg) |
---|---|
Back fat, rind-on | 0.40 |
Trimmings | 1.19 |
Leg | 2.02 |
Loin including chump | 2.78 |
Loin excluding chump | 2.20 |
Belly extra without trimmings | 2.20 |
Germany
Market
Due to large sales promotions, there is satisfying demand for hams, loins and collars. Sales of processing products and fat are more difficult as sales to Russia are subdued and also, there is decreasing demand from the meat processing industry. The very low prices for slaughter pigs in Poland limit the export opportunities. Furthermore, Polish exporters are gaining market share in the Baltic countries at the expense of the traditional suppliers.
Piglet certification
A group of pig breeding associations in Germany has established a national system for the certification of piglets along the same model as in place in Denmark and Holland. The system which will hold clear information on the health status of the animals is named TIGA. A central database will hold information on sicknesses such as PRRS, salmonella and dysentery. It took three years to develop the system which is supported by the German government.
(Source, Landbrugsavisen)
McDonald’s abstains from using meat from castrated animals
From 2011 on, McDonald's will reorganise its production and will no longer use meat from castrated pigs. More than 70 per cent of the raw material Mc Donald’s uses are supplied by German producers. All processed meats comply with the QS scheme. By amending both recepies and manufacturing processes, McDonald’s has achieved the use of meat from young boars and female animals with no negative impact on quality and taste.
(Source, fleischwirtschaft)
Abraham takes over Spanish Sánchez Alcaraz
German ham manufacturer, Abraham (part of the Swiss Bell Group), has taken full control of Toledo-based Sanchéz Alcaraz. Luis Sánchez Alcaraz, a member of the founding family has given up the capital and the post of president and CEO. The company is expanding and expects to close the year with turnover up 20 per cent to about €30 million. Exports have increased by 30 per cent.
Pork Prices Hamburg Market Week commencing 08 November 2010 | ||
Cut Name | Closest Export Manual Code No. | Price Range (€ / kg) |
---|---|---|
Round cut leg | 51121 | 2.10/2.25 |
Leg (boneless, rindless max fat level 3mm) | 51121 | 3.05/3.20 |
Boneless Shoulder | 56200 | 2.30/2.48 |
Picnic Shoulder | 56120 | 1.80/2.00 |
Collar | 56130 | 1.85/2.10 |
Belly (bone in, ex-breast) | 55100 | 1.80/1.90 |
Sheet Boned Belly (rindless) | 55210 | 1.85/2.00 |
Jowl | 50230 | 1.00/1.20 |
Half Pig Carcasses | U Classification | 1.82/1.97 |
Spain
Carrefour hands over category management to Navidul
The new Carrefour’s hypermarket model is now a reality both visually and commercially in Las Rozas and Alcobenda stores, both in Madrid. The French multinational has launched a formula of assisted sales. Ample space in the entrance area of the hypermarkets is given to Navidul (Campofrio). The spaced is themed and decorated entirely by Navidul and an expert from the firm gives four daily classes and lectures on how to cut the ham properly.
Pork prices Barcelona Market Week Commencing 08 November 2010 | |
Cut Name | Price Range (Euro/Kg) |
---|---|
Carcasses (secondary grade) | 1,334/1,340 |
Gerona Loin Chops | 2,21/2,24 |
Loin Eye Muscle | 3,15/3,18 |
Spare Ribs | 2,58/2,61 |
Fillets | 5,83/5,86 |
Round Cut Legs | 2,39/2,42 |
Cooked Ham | 2,01/2,04 |
Rindless Picnic Shoulder | 1,43/1,46 |
Belly | 1,81/1,84 |
Smoked Belly with Spare Rib Section Cut off | 2,24/2,27 |
Shoulder chap or Head Jowls | 0,88/0,91 |
Back Fat, rindless | 0,63/0,66 |
Russia
Miratorg increased the production of pork for nine months
Agroholding Miratorg increased its pork production capacities in live weight by 26.5 per cent to 101,200 tons during January–September 2010 compared with 2009 figures. The growth is largely due to the final launch at full production capacity of three new pig complexes: Yakovlevskiy, Novoslobodskiy and Zhuravskiy (Belgorod region). In addition, the meat-processing enterprise JSC Korocha (Belgorod region) increased its production volumes by 2.3 times up to 75,400 tons.
(Source, Furazh-On-Line)
Ukraine
Prices of pork rise, prices of pigs drop
As of 29 October, wholesale prices (including VAT) of 2nd category pork of the processing plants totalled US$3.5 per kilo which is three per cent higher than in the same period last year. The lowest price was recorded in the Khmelnitsky region at the level of $3.2 per kilo, while the highest of $4.46 per kilo was recorded in the Ternopil region. Purchase prices of the pigs of 2nd category in live weight totalled $1,930 per ton on average in Ukraine, which is seven per cent lower than the same date in 2009. The highest prices were recorded in the Luhansk region ($2,264 per ton) and the lowest in Ivano-Frankivsk region. Meanwhile, in most EU countries, the price of pigs in live weight stopped decreasing, as it continued from the beginning of September, and demonstrates an enviable stability for several weeks in a row.
(Source, PigUA.info)
Patronage of the state did not help Ukrainian farmers
The Ministry of Agriculture recognised that the protectionist policies of Ukraine regarding the meat market led to shortages instead of the expected growth in production in the last few years. Despite the expectations, Ukrainian companies failed to satisfy domestic demand due to the low solvency of Ukrainian consumers. Market participants and authorities believe that this problem can be resolved through an increase of production efficiency due to exports. However foreign markets are still closed for Ukrainian companies, as notes Kommersant-Ukraine. Back in late 2007, the Ministry of Agriculture reported that Ukraine will be independent from meat imports in 2008. It was thought that the deficit on the domestic market could be overcome with help of the protectionist policies of the state, i.e. increasing government subsidies for the industry and tightening import control. In fact, government policy had the opposite effect, specifically shortage of meat on the domestic market increased. Ukraine faced deficits of poultry, beef and pork. According to the Minister of Agriculture it is necessary to import 320,000 to 340,000 tons of meat in order to cover this shortage.
(Source, www.kp.ua)
Romania
Half a pig
According to news agency recolta.eu, every Romanian eats half a pig per year on average. To satisfy the 21.5 million Romanian consumers’ demand for pork meat, some 11 million pigs are slaughtered every year. Small-scale Romanian farmers and privately owned small holdings supply arounf four million animals, two million pigs are supplied by large-scale fattening enterprises in Romania and meat of approximately five million pigs is imported every year, mainly from other EU member states.
(Source, afz)
Australia
Coles’ animal welfare drive
Coles supermarkets has bowed to pressure from Australian pig producers and announced that it will apply its new sow stall ban to some of the imported ham and bacon products sold by the chain. From 2014, Coles brand processed ham and bacon products produced in Australia and overseas will be required to be sourced only from pig farms which do not have sow stalls. This could benefit UK exporters.
November 2010