January  5,  2012

 

BPEX Export Bulletin - December 2011 (Week 51)

Week 51 of BPEX Export Bulletin is the final weekly report for 2011.

 

Exports from the fifth quarter showed the most outstanding result in 2011 and according to a beef processor, "meat has become a by-product of by-products," which became quote of the year.

 

 

DENMARK

 

Market

 

Generally, the Christmas trade is over on the European market, and this is why now there is some downward pressure on prices. Fresh legs and other cuts are traded on the European market at slightly lower prices. On the UK bacon market, there is some uncertainty as to the immediate demand relative to supply. The price level remains largely unchanged. As to markets outside the EU signals are a little mixed. Some sources report of an unchanged and stable trade, while others estimate the situation on third country markets to be subdued, and that orders to China are made at lower prices. (Sources, Danish Crown, Tican, Danish Agriculture and Food Council)

 

EU and Japan on the verge of a free trade agreement

 

Japan is going to buy more Danish pork, should the EU conclude an FTA with Japan. Economists of Foreign Affairs in Denmark believe that an FTA will provide a boost in the Danish export income of € 2 billion annually. The Foreign Ministry notes that the figures are a simple projection. It is not possible to obtain information on how many Euros food products represent out of the € 2 billion. In 2010, food products such as pig meat and cheese represented 35% of the total Danish exports to Japan. The FTA with Japan is one of the topics that Denmark will seek to finalize during the next six months, when Denmark will hold the EU Presidency. (Sources, Borsen, Landbrugsavisen)

 

Dat-Schaub continues acquisitions in the UK

 

Dat-Schaub, the common Danish Crown and Tican intestine company is now increasing its presence on the UK market. Dat-Schaub has bought 50% of TruNet Packaging Services. The company processes and manufactures natural and artificial casings. Since 2006 Dat-Schaub has been active on the British market, where it primarily buys pig intestines from Danish Crown slaughterhouses in the area. Dat-Schaub is one of the world's major players in its industry. Over the past few years the company has bought up companies in both New Zealand and the US. And also has major subsidiaries in e.g. Germany and France as well as processing factories in Portugal and China. Dat Schaub had a turnover of approximately 400 million Euros in the just ended financial year. (Source, Landbrugsavisen)

 

Danish Crown hedges transactions in the Euro zone

 

 

Bonus from the sale of pig genes

 

An average Danish farmer receives an unexpected bonus of approximately € 2,000 from the Science Centre for Pig Production. The bonus payment is due to a surprisingly large surplus in the company after extraordinarily large exports of pig genes in recent years, where particularly many gene duties have been paid in. (Source, Landbrugsavisen)

FRANCE

 

Madrange, end of story (2)

 

Following last week's paragraph about the above story, 51 out of the 56 permanent contracts (+ 18 short term interim contracts) of La Maison du Jambon will be suppressed by Financière Turenne Lafayette group on two sites located in Albi and Lacaune in Tarn department. Only curing and drying activities will remain on the sites of La Maison du Jambon. Also the factory based in Bons-en-Chablais (Alps) will be closed down.

 

New label for Charcutiers Traiteurs

 

The number of real Charcutiers Traiteurs dropped significantly in France and in order to differentiate the manufacturers from the retailers a new label "QualiChef" will be launched in January 2012 by Joël Mauvigney, new President of the Charcutiers' Federation (CNTC) in France. Only charcuterie stores manufacturing at least 80% of the products they sell will be eligible to use the logo.

 

Salaisons Dijonnaises take over Terrines du Morvan

 

The fresh charcuterie specialist Salaisons Dijonnaises (€ 17 million turnover) headed by Arnaud Sabatier (5th generation) will extend its activities to long shelf life processed product by acquiring Terrines du Morvan (€ 2 million turnover) the Burgundy specialist for terrines and tinned prepared meals.

 

Pork

 

It is difficult to know what will happen tomorrow at Plérin. After the recent surprise slow down for prices some operators consider that the prices will be stable very soon. Offers are not abundant and the market is globally good. The reference price remains high. It is almost 16 % higher than the one for last year.

 

Cuts

 

The market is very calm for this period of the winter holidays. Besides, according to the last Kantar panel, the purchases of households were lower during the period of four weeks ending on 27 November. They are lower by 1.3 % with regard to the same period of 2010, while prices progressed by +4.5 %.

 

Pork prices RUNGIS week commencing 19 December 2011
Cut name	Price range (Euro/Kg)
Back fat, rind-on	1,05
Trimmings	1,47
Leg	2,27
Loin including chump	2,95
Loin excluding chump	2,43
Belly extra without trimmings	2,59

 

 

GERMANY

 

Westfleisch - AutoFOM issues

 

According to the news magazine „Der Spiegel", Westfleisch, Germanys third largest meat marketer, has been accused of manipulation during the process of weighing pigs. Following instructions by the ministry of consumer protection, the AutoFOM systems at the Westfleisch plant in Coesfeld were shut down after routine inspections by the gauging office had apparently revealed modifications to the system. Producers are supposed to have lost between € 1 and € 2 per pig and were very unsettled by the news. Westfleisch denies any manipulation. While the TV station WDR reported on parts of the Coesfeld plant to remain shut down temporarily, Westfleisch denies this and stated that solely the water cleaning of the "Auto-Fat-o-Meater" had been interdicted due an alleged impact on the classification and that now the site again operates according to schedule. At the Coesfeld site, Westfleisch processes some 8000 pigs per day. According to Westfleisch, any problems would need to be solved by the system provider. (Source, Various)

 

Pork Prices Hamburg Market Week commencing 19 December 2011

 

We have not received prices for this week. Apologies for any inconveniences this may cause you.

NETHERLANDS

 

Topigs' new development

 

Topigs says its researchers have found a series of SNPs, single-nucleotide polymorphisms that define a genetic region that may be the explanation for genetic variation in litter size and uniformity between litters of piglets. According to the research, the difference in average litter size between pigs with the genes and without the genes is 1.2 piglets (Source, Topigs).

IRELAND

 

Important budget for Ireland

 

The successful Irish food sector and food exports are increasingly seen as the future for Ireland, unlike the construction and the banking sector which have fallen badly out of favour. However, the economy remains shaky at best with a deficit of 8.2% planned for 2012, despite a rise of VAT and income tax, and lower expenditure. Debt interests alone will use 20% of the total budget. (Source, Irish Farmers' Journal)

SPAIN

 

Strong retail sales

 

Overall food sales were up 4% in value by the end of November against 2010 as they benefit from the fall of food service sales. Processed meat products once again are the best performers at +5.1% due to their good value for money. As mentioned in bulletins passim, fresh pork sales are markedly down. (Source, Alimarket)

 

Campofrio resists to the own label growth

 

According to a new study, in the disputed retail processed cooked meats segment, Campofrio maintains its market share with 28.7% of facings with its brands Campofrio, Oscar Meyer and Revilla, ahead of El Pozo with 11.32% of facings. Other producers have a share of 3% or less. Supermarket own brands only represent 27.7% of facings with Mercadona (Hacendado brand – 6%) ahead of Carrefour (4.5%) and Alcampo/Auchan with 4.5%. (Source, Alimarket)

 

Pork prices Barcelona Market Week commencing 19 December 2011
Cut Name	Price Range (€ /kg)
Carcases (secondary grade)	1,529/1,535
Gerona Loin Chops	2,36/2,39
Loin Eye Muscle	3,41/3,44
Spare Ribs	2,83/2,86
Fillets	5,83/5,86
Round Cut Legs	2,58/2,61
Cooked Ham	1,97/2,00
Rindless Picnic Shoulder	1,60/1,63
Belly	1,96/1,99
Smoked Belly with Spare Rib Section Cut off	2,39/2,42
Shoulder chap or Head Jowls	1,43/1,46
Back Fat, Rindless	1,46/1,49

 

 

RUSSIA

 

WTO

 

18 years after the beginning of negotiations a protocol on the Russian admission to the WTO was signed. Main content of the admission package are measures for the market opening for goods and services. In 2010, goods worth € 244 billion were traded between the EU and Russia. Among other measures, quotations for beef and pig meat were codified for which a lower customs tariff will be applicable than for goods exceeding these quotations. Although quotations for pig meat are decreasing from 500.000 tonnes to 430.000 tonnes per year there will be no customs duties (currently 15%) on any meat imports within these quotations. As from 2020 it is planned for the quotations to be replaced by a single tariff of 25% on pig meat. Duties on live pigs decrease from 40% to 5% and experts expect that in the future more than 1 million pigs for fattening will be imported annually into Russia. (Source, ISN)

 

Customs Union approves quotas for meat import inside the Union

 

The Customs Union Commission approved quotas for meat import in 2012. For Russia, the import quota will be 400,000 tonnes for pork and 30,000 tonnes for pork trimmings. The current 2011 import quota for pork is 472,100 tonnes and pork trimmings 27,900. For Belarus, the quota for pork import in 2012 will be 60,000 tonnes. For Kazakhstan, the pork import quota will be 9,400 tonnes. (Source, Meatinfo.ru)

 

Five Austrian companies banned

 

Rosselkhoznadzor reported that veterinarian experts from the Russian Federation examined 13 Austrian companies producing pork, beef, poultry and dairy products and restricted supplies of products from five companies because of detected violations of veterinary and sanitary requirements of the Customs Union. The restrictions will be cancelled when the violations are corrected. In addition, the veterinary service of Austria provided guarantees of meeting further requirements of the Customs Union and the Russian Federation. The inspection was carried out by agreement with the relevant authorities of Belarus and Kazakhstan. (Source, Meatinfo.ru)

 

Imported Pork Prices Saint-Petersburg Market:

Loin (no bones): USD 6/kg

Shoulder (no bones) USD 5.6/kg

Heart USD 2.97/kg (Source, Meatinfo.ru)

UKRAINE

 

Pork prices as of December 19, 2011

 

According to information provided by the Ministry of Agrarian Policy and Food of Ukraine, as of December 19, 2011 the average purchase price for pigs of the first and the second categories was USD 2,144/ton. During the year starting from the same date last year the average price rose by 19%. The average retail pork price was USD 5.72/kg (Source, PigUA.info)

BRAZIL

 

Increasing production and exports of pig meat in Brazil in 2012

 

The organization for Brazilian exporters of pig meat (Abipecs) is expecting an increase in production of pig meat by 2 to 3% in 2012 as well as an increase in exports of 15%. It is expected that 50,000 tonnes of pig meat can be exported to China in 2012 and that total exports will reach 600,000 tonnes. For 2011 production will increase by 4.9% to 3.4 million tonnes according to Abipecs. An increasing part of the pig meat has been sold on the Brazilian home market as in 2011 exports are expected to decrease by 3.7% to 520,000 tonnes. The reason for the decline in exports is due to a strong drop in exports to Russia following the introduction of Russian restrictions on exports from Brazil in 2011. (Source, Markedsnyt for svinekoed)

INDIA

 

Reversal of decision

 

Faced with widespread protests, the Indian Parliament has reversed the decision to open the huge Indian retail market to foreign firms.

 

 

Source: British Pig Executive

US$1 = EUR0.77 (Jan 5, 2012)