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Pig Meat Export Bulletin - June 2009

by 5m Editor
15 June 2009, at 12:00am

The British Pig Executive's (BPEX) June Export Bulletin reports that Russia has released all restrictions for pig exports coming from Spain since 3 June, while in the Netherlands, Vion has followed the German lead and has increased its quotation to €1.42.

Denmark

Market

All over Europe fresh legs are sold at slightly increasing prices.

On the market for shoulders and collars and other types of production meat prices are slightly increasing. Tican estimates that the situation on the bacon market is changing and that the Danish exporters will try to make use of it to achieved price increases on the June contracts.

As to third countries the market situation is stable. On the Russian market is a strong activity.

The market in East Europe remains stable. The market in Japan is stable, but under pressure from products from the US and Canada. As expected there is a seasonal increase in the German quote. Due to the mix of Danish products the Danish slaughterhouses are unable to increase the Danish quote just as quickly. The price forecast that was prepared in March is still very realistic in relation to the market conditions on each of the export markets.
(Sources, Danish Crown, Tican, Danish Bacon and Meat Council)

General: Danish Bacon and Meat Council to be dissolved

Danish Bacon and Meat Council decided to join the merger Farming and Food.

As a consequence Danish Bacon and Meat Council is going to be dissolved. The meeting of representatives authorized the board to define the date when the organisation will be dissolved.

Danish Bacon and Meat Council was established in 1897.
(Source, Lanbrugsavisen)

Increased sales of by-products

The Danish slaughterhouses no longer send their by-products for incineration. According to new statements, Denmark is making billions of kroner (DKK) selling by-products as luxury delicacies, e.g. to China, Mexico and African countries. In 1998, the Danish export of by-products was €175 million. According to new statements this figure last year increased to €307 million. In China, for instance, the slaughterhouses sell pigs ears as a delicacy that just the middle class and rich people can afford. Not even the financial crisis put a spanner in the works for the success.
(Source, MetriExpress)

Criticism of Danish Crown

According to the president of Danish Farming, Peter Gaemelke, the management of Danish Crown reacted too late to the present crisis. Mr Gaemelke says that the plan of action of the slaughterhouse group representing cost savings of DKK 1.3 billion over the next six to 18 months is a fine plan but it arrives 12 months too late. Basically, he finds that the management runs the slaughterhouse sensibly but it is justified to ask if the management saw soon enough that the big difference in wages for a slaughterhouse worker in Denmark and in Germany would develop into such a huge problem. Mr Gaemelke does not deny that he himself will export piglets to Germany should the quote not get in line with the one in Germany.
(Source, Jyllands-Posen)

Danish Slaughterhouses - payments for 2009 Week 23
Slaughterhouse Danish Crown Tican
Slaughter pigs (67.0 –81.9 kg Danish
Crown and (67.0 - 80.9 kg Tican)
Difference to last week

Euro 1.282*
+ 0.027

Euro 1.242
+ 0.027
Sows (Above 129.9 kg)
Difference to last week
Euro 0,961*
Unchanged
Euro 0.894
Unchanged
Boars (Above 109.9 kg)
Difference to last week
Euro 0.828*
Unchanged
Euro 0.761
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 €0.040 for slaughter pigs and by €0.067 for sows and boars. Accordingly, the Danish Crown quotes are higher than the ones from Tican.

France

Pig meat and charcuterie consumption in 2009

Over the first four months of the year, French household consumption of fresh pork increased by 6.8 per cent in volume compared with same period in 2008. During this period, the average retail price of fresh pig meat decreased by 2.2 per cent. For the same period, total ham consumption increased by 1.4 per cent when average retail price increased by 1.5 per cent. For total charcuterie products, volumes increased by 1.8 per cent and average retail price also increased by 1.2 per cent. Thin coarse sausages and lardons had the best scores with respectively +6.2 per cent and +5.8 per cent and quite logically, these are the two products which average retail price simultaneously decreased by 1.95 per cent and 0.6 per cent, respectively.

Monique Ranou

Intermarché is accelerating investment in its own brand charcuterie products in Brittany. €20 million have now been spent in the Saint Evarzec site (near Quimper) and production capacity has been extended from 39,000 tonnes to 45,000 tonnes. Also with this extension, Ms Ranou will include a new line: organic ham enriched with omega-3. The company expects a 4.4 per cent increase in its turnover in 2009.

Market data for week 22: Pigs

Demands from abattoirs were correct for a four-day week, but the availability of livestock continued to slow down. Nothing surprising in this context that prices oscillated between stability and firmness. The demand for pork meat seemed to increase due to the beginning of the month and sunny weather.

For more information, please contact AHDB France on 00 33 1 60 71 04 49

Germany

D&S expanding

The Essen/Oldenburg abattoir is raising its cutting capacity from 63,000 to 112,000 pigs per week following a €13 million investment. The company will concentrate on expanding its export business. In 2008, export share was 37 per cent, the main target markets being Europe and Asia.
(Source, topagrar.com)

VION Wunstorf reduces staff

VION will make 40 staff at its Wunstorf site redundant. The number of employees will decrease to 280.
(Source, schweine.net)

AMI takes up work

As of 2 June, the ZMP successor organisation, AMI (Agrarmarkt Informations-Gesellschaft mbH), has taken up its work. In total, 35 staff will provide independent market and price information, data and analyses to all interested parties. AMI will be based in Bonn, Hamburg and Berlin.
(Source, schweine.net)

Spain

Exports

The Russian Federation has released all restrictions for pig exports coming from Spain since 3 June. With immediate effect, all pig products, including those not receiving heat treatment are allowed to be exported to the Russian Federation. The last three Spanish provinces suffering restrictions – Valencia, Barcelona and Seville – are permitted to restart pig exports.
(Source, Agrodigital)

General

Spanish company, Consorcio de Jabugo, which specialises in producing Iberian ham products, has signed an agreement with the well-known Spanish chef, Paco Roncero, in order to promote Iberian ham products as a very healthy food, fulfilling a place in the most important restaurants all over the world.
(Source, Carnica2000)

Spanish public company, Prodeca, will receive the visit from nine Russian companies from the pig sector (9 to 13 June) in order to promote future trade agreements between Catalonian Autonomous Government and Russia. The Russian committee will visit several Spanish pig production sites.
(Source, Eurocarne)

‘Jamón de Teruel’ celebrates its 25th anniversary. This quality brand was the first in Spain to introduce cured hams, and the third in Europe. ‘The week of Jamón de Teruel’ will take place in Madrid in order to promote these quality products in such a large market, with four million potential consumers.
(Source, Eurocarne)

Prices

Slaughterhouse Lleida 28.05.09 Zamora 02.06.09
Piglet 20 kg 30.0 €/Unit (+0.00) 35.5 €/Unit (-2.50)
Live fattened pig 1.150 €/kg (+0.030) -

Portugal

Prices

Slaughterhouse Lisbon 25.05.09
Fattened pig – Carcass E 57% 1.500 €/kg (+0.030)

The Netherlands

Pig prices rising

Vion has followed the German lead and has increased its quotation to €1.42. The period is traditionally a good one for pork demand. However, prices still stand 10 per cent below last year's prices.

Russia

Russia bans Canadian pork because of H1N1 influenza

Imports of live pigs, pork and its non-heat-treated products from the Province of Quebec are banned until further notice because the situation on H1N1 influenza has been complicated. At the same time, earlier imposed restrictions on import of live pigs, pork and its non-heat-treated products from Alberta and British Columbia will be lifted because the situation there stabilized.

Imports of meat from several US states resumed

The Russian Agricultural Surveillance Committee lifted the meat import ban from two US states. Their Moscow office reported that because of improved situation on H1N1 in Arizona and California, starting from 2 June 2009 these states are transferred from the first risk group into the second risk group. As a result, imports of all animals are now allowed except for pork and products produced before 14 May 2009 (Arizona) and until April 26th 2009 (California) and after 2 June 2009 (in both States).

Russian party at top OIE level

Deputy Head of the Rosselkhoznadzor, Chief Veterinary Officer of the Russian Federation, Nikolai Vlasov, was elected to the Administrative Commission of the World Organisation for Animal Health at the 77th General Session of the OIE.

Belarus

Ukraine doubled meat imports

Ukrainian analysts reported that during the first four months of 2009 Ukraine more than doubled its meat imports compared to the same period in 2008 (104,000t and 48,000t, respectively). The key suppliers of meat to Ukraine remain EU, Brazil and the USA, which account for about 80 per cent of all imports. UkrTvarynProm (Ukrainian Animal Husbandry Association) reported that as of late April, the Ministry of Economy issued more than 230 licences for import of meat and products, which allows the wholesales import up to 400,000t of meat by the end of the year, comprising 180,000t of pork, 200,000t of poultry meat and 150,000t of animal fats.

Farmers believe that this is enough for two years's supply for the country and importers by now already used up half of the import quota after importing more than 158,000t of meat. The major portion of imported meat is sold in L'viv Oblast (44,000t), Volyn Oblast (20,500 t) neighbours with Poland, Odessa Oblast (18,600t) the port city, Dnipropetrovs’k and Donetsk (16,000t in each oblast).

USA

US farmers are losing more than €17 per pig

At present, US pig farmers are harassed and it is expected that many of them are going to stop producing over the next months. Many farmers had hoped that the market would adjust after the outbreak of H1N1 flu but it has not happened. Between 15 and 20 of the producers in the leading pig state, Iowa, are seriously considering stopping, evaluates an expert according to Agriculture Online. In the neighbouring state of Indiana, another expert evaluates that maybe as many as fifty per cent of the pig producers in the area are considering closing down production. The reason is that the economy in pig production deteriorated dramatically. An economist states that over the latest month, prices of corn and soy meal increased so much that the loss on the current production doubled five times from $5 to $25 per pig impacting that at present the farmers are losing more than $24 per pig. A third expert evaluates that five per cent of the small and middle-sized producers will be forced to stop should the economy not improve. Large farms that have not covered their risk may also be in financial troubles very soon, it is predicted.
(Source, Lanbrugsavisen)

Barcelona Market Information - Week commencing 1 June 2009
Carcasses (secondary grade) € / kg 1.513/ 1.519
Gerona Loin Chops € / kg 2.35/2.38*
Loin Eye Muscle € / kg 3.43/3.46*
Spare Ribs € / kg 2.18/2.21*
Fillets Euros / kg 5.33/5.36*
Collar € / kg 2.63/2.66*
Round Cut Legs € / kg 2.27/2.30*
Cooked Ham € / kg 1.94/1.97*
Rindless Picnic Shoulder € / kg 1.49/1.52
Belly € / kg 1.92/1.95
Smoked Belly with Spare Rib Section Cut Off € / kg 2.35/2.38
Shoulder Chap or Head Jowls € / kg 1.28/1.31
Back Fat, Rindless € / kg 0.83/0.86

June 2009