January 14, 2012

                                                                                         

BPEX Export Bulletin–January 2013 (Week 2)

 

 

This week's export news

 

Pork exports in the first 10 months of 2012 were 5% higher on-year at 127,100 tonnes, with offal increasing by a healthy 26% to 35,400 tonnes. Sausage exports have been very successful, up 50% to 7,900 tonnes, while processed pork shipments were 26% higher at 10,100 tonnes. Meanwhile, exports of bacon and ham have more than halved during the period, from 28,000 to 13,600 tonnes. Most of this fall is due to a reduction in bacon traded to Ireland (-6,000 tonnes) and lower 'returns' to Denmark and the Netherlands (-6,900 tonnes). British bacon and ham exports to Germany, Italy, France and Spain also declined (-1,000 tonnes between the four destinations). Estonia, which had emerged as a valuable market, is also down from 370 to 225 tonnes. Despite these lower bacon exports, 2012 could see total pork product exports in the region of 235,000 tonnes, excluding fats, which could be a record for UK pork exports.

 

BPEX has produced a report on the export opportunities for premium British pork, which is available from the export office.

 

The veterinary inspection from the Dominican Republic has been confirmed and is taking place from 26 to 31 January. The Chinese inspection team for pig semen will arrive on 12 January for a two-week programme, organised by the British Pig Association in collaboration with Defra and BPEX. All four porcine AI centres in the UK will be inspected (three in England, one in Northern Ireland).

 

 

Denmark

 

Tican contracts

 

Suppliers may soon be able to sign contracts with Tican guaranteeing the price for pigs three months before slaughter. Slaughterhouse CEO, Ove Thejls, explained that it costs the company approximately €17 per pig when capacity is underutilised on the slaughter line. A proposal before Christmas for the company to start producing pigs to guarantee supplies to meet capacity was rejected by shareholders. (Source: Thisted Dagblad)

 

Slaughterhouses sell semen business

 

Hatting KS, the Danish boar semen sales business will get a new principal owner following the decision by Danish Crown and Tican to sell the company. Via Vilomix Holding, Danish Agro and West Jutland will buy 60% of the shares in the company. Danish Crown reports that Hatting-KS activities are beyond their Group's core business. Hatting-KS employs 266 people with a turnover of around €50 million. (Source: Landbrugsavisen)

 

Markets

 

Generally, trade on the European market has been slow and prices have remained unchanged for most cuts. Loin prices, however, have fallen. The British bacon market is quiet at similar price levels. On markets outside the EU, the situation remains unchanged compared with recent weeks.

France
 

Cooperl invest in cooking

 

Cooperl are trying to catch their competitors in the processed product segment by developing a new range of prepared meals. Last June, the cooperative took over the Bigard plant, Kerguelen, located in Lamballe (Brittany). The factory started producing prepared meals in September and €30 million has been invested in this project. Cooperl is now in a position to benefit from the positive growth in the segment which to date has been mainly exploited by Charal and own brands.

 

Cooperl prepared meals

 

Traditional recipes have been developed by Cooperl to start their range of prepared meals. By using slow cooking methods, Cooperl guarantees the taste and tenderness of their products. The meat is cooked in a sauce which represents 50% to 60% of the meal. The retail packs, at 440g, offer a microwave meal solution for two. The range includes: pork kidneys with a madère sauce, pork tongue in a hot sauce, pork blanquette in a cream sauce and pork cheek in a cider sauce.

 

Les Brasérades range

 

The speciality sausage company is completing its range of prepared meals with two new recipes: cassoulet and "Aligot saucisse fumée" (smoked sausage with cheese). The range started with two recipes: "Petit Salé aux lentilles" (cured pork with lentils) and sauerkraut.

 

Markets

 

The 56 TMP basic price lost just €0.022 last Monday at Plérin as slaughter activity started again and lets us glimpse a fast return to a good market. According to 'Marché du porc breton', if abattoirs were to put pressure on prices, supplies could be more moderate in coming weeks.

 

Piglets

 

The French market remains good, with supplies in balance for current demand. Production costs remain very high. The current price of pig feed, at €310 per tonne, is 24.5 % higher than a year ago.

 

Cuts

 

January promotions started last week as consumers returned to the markets. Nothing exceptional has been reported and operators report a normal market for loins. For other cuts, the market is quiet with consistent sales at similar prices. Everyone is waiting for export activity to recommence to third country markets.

 

Pork prices RUNGIS week commencing 7 January 2013

Busy export programme

 

During 2012, Belgian Meat organised export missions to Poland (4), Romania (2), Czech Rep. (2), Hungary, Bulgaria, Latvia, Lithuania and Australia. In 2013, they plan to attend Prodexpo in Moscow, SIAL in Shanghai, Anuga, FHC in Shanghai, SIRHA in Lyon, World Food in Kiev and Fine Food Australia. They are also planning new missions to Croatia and the Ukraine. (Source: VLAM)

 

 

Hungary

 

Financial support

 

The municipal councils of Gyula, Kaposvár and Pápa could pump a combined HUF5.5 billion (£15.4 million) into troubled meat companies that employ hundreds of locals, daily Magyar Nemzet said on Saturday, citing industry insiders. Gyula could inject HUF1.7 billion  into the local meat plant, while the Kometa plant in Kaposvár would receive HUF2.3 billion and the plant in Pápa would get almost HUF1.5b. The entire Hungarian meat sector is in dire straits. (Source: Budapest Business Journal)

 

 

Ireland

 

Many non-compliant farms

 

The Department of Agriculture has not been forthcoming with data regarding compliance to the sow welfare regulations. By 1 January, an estimated 18% of Irish farms were thought to be non-compliant which could be an underestimate. (Source: Irish Farmers' Journal, our comment)

 

 

Netherlands

 

For Farmers' expansion plans

 

The owner of BOCM and Hendrix has a volume of 6.5m tonnes (40% pigs, 30% cattle and 25% poultry feed) out of the 150m tonne European market. It is looking at acquisitions outside the Netherlands within Europe says CEO, Bert-Jan Ruumpol. For Farmers recently sold the feed ingredient trading company Cefetra (Source: Feed International)

 

 

Germany

 

Surplus of German slaughter pigs

 

Demand for pigs in Germany is falling as the retail restock comes to an end.   This has resulted in a large surplus of slaughter pigs, applying pressure on prices. It is expected that the surplus will be not be processed before late January. Traditionally, the price for slaughter pigs shows a moderate decline during the early weeks of a year. Nonetheless, processors have left prices unchanged, following ongoing discussions with retailers, at €1.68 per kg. However, a slight decrease wouldn't come as a surprise. (Source: own)

 

Experts concur that 2013 will be a worse year than 2012 and that the economic crisis and falling incomes will affect both non-food and food sales, the latter having been spared so far. Over Christmas, shops in Lisbon and Porto report a fall of sales of between 25 and 40%. (Source: Distribução Hoje)

 

 

Spain

 

New compliance estimates

 

According to the Ministry of Agriculture, some 20% of Spanish sows do not comply with the new regulations on sows and tethers. (Source: laverdad.es)

 

Ready-to-cook pork products

 

Sales for this category are rising steadily as people appreciate the convenience that ready meals provide as an alternative to eating out. In 2011, sales rose by between 7 and 8% and indications are that they rose by as much again in 2012. The main processor is Embutidos F. Martínez with 25,000 tonnes, followed by Martínez Loriente with 12,000 tonnes, the main supplier to Mercadona, Emcesa (9,000 tonnes), Arcadie (4,900 tonnes), la Nuncia (2,500 tonnes) and Caysan (2,300 tonnes). (Source: Alimarket)

 

Australia

 

Stalls and tethers move confirmed

 

Australia's biggest supermarket chains, which together account for more than 70% of national total fresh food sales, have removed "factory farmed" pig and poultry products from their specifications. Coles, the largest supermarket, banned these products from 1 January. Their major competitor, Woolworths, plans to complete their removal by mid-summer. The two companies are responding to national and global pressures to improve animal welfare. (Source: various)

 

 

China

 

Pork buyers switch from US to EU

 

Germany, Spain, Ireland and the UK have made major gains, mostly at the expense of US pork, during 2012 on the Chinese market. Imports from Germany have increased five-fold to 73,000 tonnes with 9,500 tonnes in October alone. Poland is also expected to make gains now that direct access has been granted. Pork imports to Mainland China are up 44% to 436,000 tonnes. The US retained its share of half of the 675,000 tonne Chinese offal import market in the January to October period, despite shipments falling by 23%. The EU was the main beneficiary of this shortfall; Germany made the biggest gain with 44,000 tonnes. Danish offal exports are up 11% to 135,000 tonnes. (Source: Agra Europe)

 

 

Russia

 

2013 pig farming financial forecasts

 

According to a joint study from the National Meat Association and the Union of Pig Farmers, pig breeding and pork production will become unprofitable in Russia in 2013 due to high feed prices. The report predicts increasing imports will also apply downward pressure to Russian pork prices. Different scenarios were used; in the most optimistic (with high pork prices and moderate grain price growth) the net margin is estimated to be between 2% and 10% in the first half of 2013. In contrast, the most pessimistic scenario forecasts losses of between 4% and 14%. (Source: Pigprogress.net)

 

 

US$1 = EUR0.75 (Jan. 14, 2013)