Pig Meat Export Bulletin - June 2008
BPEX reports increasing pig quotes throughout Europe and the estimated numbers of hog losses after the Szechuan Earthquake have reached 3.650 million head in the Export Bulletin for June 2008 - Week 24.Denmark
Market
There are fewer slaughter pigs available on the European markets, and therefore the balance between supply and demand has improved.
Fresh pork legs are sold at increasing prices.
The marketing possibilities for shoulders and production meat have improved and prices are increasing.
There is still a “wait-and-see” situation in the market for pork collars due to bad weather conditions in some European countries.
The British bacon market is improving after June contracts have been agreed upon at the same prices as the May ones. Lower bacon supplies are expected here as well.
In third country markets the controversy with Russia is becoming very difficult since almost all Danish exports have been banned from the market. Nevertheless, reports say that there is a good demand for pork in Russia.
The market for pork in Japan remains unchanged.
(Sources, Danish Meat Association, Danish Crown, Tican)
General
Danish Crown lay off 900 people
The reduction in the number of slaughter pigs produced in Denmark has on an annual basis meant two million fewer slaughters at the Danish Crown slaughterhouses. Consequently Danish Crown is now reducing its slaughter numbers. A reduction in the number of slaughters was expected, but it has arrived much quicker and much more drastic than expected. At present the organisation slaughters approximately 300,000 pigs weekly, which number corresponds to approximately 80 per cent of the slaughter capacity. It has therefore been necessary to cut down on staff and reduce expenses, informs corporate manager of Danish Crown, Kjeld Johannesen. They plan to close down two slaughterhouses as well.
Forecast predicts increases in pig production by the end of 2009, and Danish Crown has made sure that it will be possible to increase the slaughter numbers as soon as this will again possible.
(Sources, JyllandsPosten, Landbrugsavisen)
Danish Slaughterhouses - payments for Week 24
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Slaughterhouse | Danish Crown | Tican |
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Slaughter pigs (67.0 –81.9 kg Danish Crown and (67.0 - 80.9 kg Tican) Difference from last week |
Euro 1.348* + 0.027 |
Euro 1.308 + 0.027 |
Sows (Above 129.9 kg) Difference from last week |
Euro 1.107* Unchanged |
Euro 1.041 Unchanged |
Boars (Above 109.9 kg) Difference from last week |
Euro 0.974* Unchanged |
Euro 0.907 Unchanged |
A change in payments according to meat percentage and payments for transport to the Danish Crown slaughterhouses have had the impact that the quotes increased by Euro 0.040 for slaughter pigs and by Euro 0.067 for sows and boars.
Accordingly the Danish Crown quotes are higher than the ones from Tican.
France
Head line: Changes in the 56 TMP pig quote.
Pigs: An upward trend for pig quotes to be confirmed.
Last week confirmed the recovery of the market for slaughter pigs. The 56 TMP base quote gained 4.4 Euro cents per kilo over the two trading sessions, and this was despite it being the end of a month. With slaughter numbers more or less stable, and carcase weights dropping, the number of pigs available for slaughter will no doubt from now on remain inferior to demand.
The improvements seen in other European pig quotes over past few weeks are also an indication that this trend will continue for some time. Pig quotes in other European countries have actually been increasing at a faster pace than has the 56 TMP quotes, which has made France a still more attractive market for pig meat, and could lead to a further increase in demand.
Young pigs (Weaners)
The buoyant market for live pigs has continued to influence the market for weaners. Since more in demand, the prices for weaners have been stable or bullish. This trend has been confirmed by the FNP-FNCBV indices with an increase of more than 6 cents per kilo for 25-kilo piglets, and 1.17 euro per head for the weaned ones.
Butchered meat (Primal cuts)
The end of last week was not an easy time for meat traders from the slaughter and cutting plant sector. In fact, the increase in live pig prices due to the lower number of slaughter pigs lead to an increase in their purchase prices. The end of May saw consumption decline preventing them from passing on these additional costs into their sales prices. Prices for pig meat eroded, and whether it will be possible to have them restored in the new month when demand should increase remains to be seen.
“Les Marchés” – report 04.06.08
Pigs: The increasing pig quotes confirmed.
Pigs
The 56TMP base quote established at the beginning of the week confirmed that there is an upward trend in pig quotes. The 56TMP quote increased once more by 1.6 cents, and further significant increases in the pig quotes could happen if increases are demanded during the second session similar to what happened last Thursday. According to the MPB (Marché du Porc Breton), “the major factor at the beginning of the week was the low number of slaughter pigs available after the very strong activity during previous two weeks (more than 400,000 pigs slaughtered)”. It should be noted that this trend has been general throughout Europe, where quotes have been more bullish than the French ones. Although foreign quotes cannot be compared directly to the 56 TMP quote, the changes have been quite explicit. For example, the German pig quote gained 7 cents per kilo by the end of last week. Abattoir demand will be the decisive factor for the price development in France.
Young pigs (Weaners)
Weaner markets are following the trend for live pigs. Demand has increased, and weaner prices have been firmly renewed or have even been bullish. However, feed costs have not been reduced.
Butchered meat (Primal cuts)
Changes in prices for pig carcases could have consequences for the whole industry if consumption continues to be weak. Only prices for ham and shoulder have done well.The beginning of the new month will hopefully see improvements in consumption of pig meat. Prices for pork cuts decreased less than they did last week. However, price changes have varied depending on region, and consumption of pig meat cuts has been linked to this.
Germany
According to estimates of the German Cooked Meats trade association, consumers will shortly have to pay € 0.05-0.10 more per 100 g pork. According to GfK, prices for this category have stagnated over the last 18 months, unlike most other food categories. In particular, the raw material pig meat has become 30% more expensive since February due to the pig cycle. (LZ, June 11th, 2008)
Spain
General
Last Friday the Spanish transportation industry initiated an indefinite strike. The stop has reached 90% in some zones of the country and their consequences have been catastrophic with direct and indirect influences for the livestock farming sector and the agro-alimentary industry. Most of the slaughterhouses have been closed and it has been difficult to carry feed to the farms. (source: eurocarne)
In the first five months of 2008, more than 1500 farms in Extremadura, mainly pig and sheep farms have stopped its productive activity. (source: eurocarne)
The price in origin of the Iberian pig has decreased by 39% in the last year, from 19.8 euros a year ago to 12 euros, the amount that the producers receive at the moment. (source: eurocarne)
Prices
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Slaughterhouse | Lleida 05.06.08 | Zamora 11.06.08 |
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Piglet 20 kg | 16 €/Unit (-0.00) | -- €/Unit (--) |
Live fattened pig | 1.275 €/kg (+0.045) | - |
Portugal
Portuguese transportation was also on strike. The approximately 300 carriers in strike will resume work after the ‘possible’ agreement reached with the Government. The supply of the supermarkets to an 80% will take from 24 to 48 hours. (source: agroportal)
Prices
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Slaughterhouse | Lisbon 02.06.08 |
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Fattened pig – Carcass E 57% | 1.60 €/kg (+0.06) |
China
Chinese pork exports sharply down
Chinese pork exports fell by 55.1 % in the first two months of the year to 12,000 tonnes, as low domestic production and very high domestic prices made exports uneconomic.
Official earthquake loss numbers increased
China has more than doubled its estimate for hog losses attributable to the Szechuan earthquake, from 1.52 million head to 3.658 million head, including 184,500 sows. Analysts now expect 2008 provincial pork production to drop approximately 9% (700,000 metric tons) from 2007 levels, and live hog inventories to decline by 10 million head. Such a loss would equal 1.6% of national pork production, and 2.2% of national hog inventories.
RUSSIA
Russia to open doors for Canadian meat
The Federal Veterinary and Phytosanitary Monitoring Service cancels the ban on Canadian pork and raw pork products starting from June 2nd.
For reference: the ban has been in place since March 21, 2008. However, when the pork will arrive from Canada it will be randomly tested for contents of harmful or prohibited substances, drugs.
Stavropol to become a pig country
During the past five years money invested in Russia in construction of pig complexes exceeded US$ 5 bn. The estimated profit of pig producers is around 15% however some vertically integrated businesses may reach margins as high as 30%. In 2008 the negative trend was registered for the first time in the past several years due to sharp increase in feed prices.
A Mordovian Agricultural holding Talina plans to build a slaughterhouse and a pig production unit in Stavropol Kray (southwestern Russia). They have 72,000 heads of pigs and produce pork and products. The target for this pig unit in Stavropol is to produce 25,000 t of pork per year. The slaughterhouse capacity is 130 heads per hour. The company will also refurbish a local feed mill to use for their pig unit.
Prices
Germany |
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Pork Prices ex-Hamburg Fleischgrossmarkt
(Cuts from 75–85 kg pigs) Week commencing 9th June 2008 |
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Cut Name | Closest Export Manual Code No. |
Price Range (Euro / kg) |
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1. | Round cut leg | 51121 | 2.55/2.75* |
2. | Leg (boneless, rindless max fat level 3mm) | 51121 | 3.60/3.80* |
3. | Boneless Shoulder | 56200 | 2.65/2.80 |
4. | Picnic Shoulder | 56120 | 2.18/2.33 |
5. | Collar | 56130 | 2.70/2.90 |
6. | Belly (bone in, ex-breast) | 55100 | 2.35/2.60* |
7. | Sheet Boned Belly (rindless) | 55210 | 1.80/2.10 |
8. | Jowl | 50230 | 1.45/1.55* |
9. | Sow Carcases | 60100 | - |
10. | Half Pig Carcases | R Classification | - |
*Unchanged from previous week |
Spain
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Barcelona Market Information:
Prices for week commencing 9th June 2008 |
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Carcases (secondary grade) | Euros / kg | 1.678/1.684 |
Gerona Loin Chops | Euros / kg | 2.84/2.87 |
Loin Eye Muscle | Euros / kg | 4.32/4.35 |
Spare Ribs | Euros / kg | 2.39/2.42* |
Fillets | Euros / kg | 5.53/5.56* |
Collar | Euros / kg | 3.23/3.26 |
Round Cut Legs | Euros / kg | 2.51/2.54 |
Cooked Ham | Euros / kg | 2.24/2.27 |
Rindless Picnic Shoulder | Euros / kg | 1.58/1.61 |
Belly | Euros / kg | 1.78/1.81 |
Smoked Belly with Spare Rib Section Cut Off | Euros / kg | 2.21/2.24 |
Shoulder Chap or Head Jowls | Euros / kg | 0.95/0.98 |
Back Fat, Rindless | Euros / kg | 0.98/1.01 |
*Unchanged from previous week |
June 2008