January 21, 2012

BPEX Export Bulletin-January 2013 (Week 3)

 

 

This week's export news

 

Some 4,861 breeding pigs were exported from Great Britain in 2012 with 1,912 of them being exported outside Europe.

 

The first list of plants approved for export to Australia includes 5 abattoirs and cutting plants and 4 cold stores. We aim to rapidly expand the list.

 

 

France

 

Welfare standards

 

According to "Institut du Porc", at the time when the new EU legislation came into force on 1 January 2013, 66% of pig farms complied with new rules, 20% aim to modify their equipment within months and 11% have ceased to breed pigs…

 

General situation

 

According to Marché du Porc Breton, the general situation in 2012 was satisfactory as producers have not had better prices for 20 years. The base price (56 TMP) reached €1.454/kg on average last year which allowed producers to sell pigs at about €1.604/kg. Following 5 consecutive years of losses, French pig producers managed to break even in 2012 and in some cases make profit. The equation was difficult with production costs averaging €1.60/kg and reached €1.70/kg by December. French production estimates for 2013 (-2%) could suffer from the impact of the implementation of new animal welfare standards, it is still too early to anticipate what producers are planning to do. On the consumption front, fresh pork sales decreased by 0.4% while charcuterie sales increased by 1.7% in spite of respective retail prices rises of 4.9% and 2.1%. With expected firm demand on the home market, French pig meat exports are predicted to decrease by 8% in 2013.

 

Markets

 

Prices are stable. The offer remains good even if lower than last week. At the same time, demand is high and the market is close to balance.

 

No evolution on the French market. The market remains good. Supplies are matching demand. FNP-FNCBV prices didn't move last week due to the firm price at pork butchers over the last month.

 

According to FNICGV, prices for cuts in Rungis market lost between 0.7% and 3.8% compared with November. IMR (Rungis quotation) was 3.3% lower and the 56 TMP basic price lost 6.3%.

 

Also, according to FNICGV, during 2012 prices for cuts increased by between 2.59% to 22.88%. On the export side, +16% for bellies, +20.10% for trimmings and +22.88% for back fat, rind-on. On the contrary, loins gained only +2.59% and legs +6.68%.

Denmark

 

Fixed price contracts

 

Tican is offering three month contracts to its farmer owners. The contract offers to fix the price at €1.587/kg, which is €0.067 cents above the current quote. With the current prices for piglets and feed, it is quite a reasonable deal for farmers for pigs to be slaughtered in April, assesses Tican CEO Ove Thejls. (Source: Landbrugsavisen)

 

Smithfield phases out sow stalls

 

The world's largest pork producer, American Smithfield, is well underway to complete the promised phase-out of sow stalls within the next five years. 38% of pregnant sows are allegedly already transferred to new housing systems, and Smithfield expects to reach the target by 2017. The company promised in 2007 to phase out pig stables under pressure from customers and animal welfare groups, but plans were put on hold during the economic downturn two years later. Smithfield will also abandon sow stalls on its farms abroad. This has already happened in Poland and Romania. (Source: Landbrugsavisen)

 

Market

 

In Europe, stocks are being filled up after the turn of the year. Generally, slaughtering in Europe are high resulting in ample supplies and slightly declining demand applying some pressure to prices. Prices for forequarter cuts and legs are declining. Prices for loins and bellies remain unchanged. Bacon sales to the UK remain unchanged. On third country markets, Russia is just getting started after the New Year, while China and Japan are buying stable quantities at similar price levels.

Germany

 

Unchanged quotation

 

Despite continued high pig supplies in the face of weak domestic and export demand, prices remain unchanged due to the anticipation that pig supplies will tighten within a few weeks. (Source: own)

 

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.

Ireland

 

Pork exports up

 

In 2012, pork exports climbed 16% to €457 million in value. This increase stems from higher production, up 2%, combined with a 10% price increase and lower domestic consumption. Interestingly, some €73 million worth of live pigs were exported from the Republic to Northern Ireland, up from €63 million. (Source: Irish Farmers' Journal)

 

 

Finland

 

HP Scan reduces the number of employees

 

The Finnish meat group, HP Scan, is to cut up to 295 jobs, which corresponds to more than one in ten employees at HP Scan departments in Finland. They plan to achieve cost savings of €5 million per year. (Source: Landbrugsavisn)

 

 

Italy

 

Strong demand

 

Demand stands above the offer and the situation should be maintained over the next few weeks. Thus, prices are due to rise. (Source: Mercolleida)

 

 

USA

 

Production up, prices down

 

Despite the forecast of a 2% fall in production this year, which would have led to a saner market and a return to profitability for producers, latest production figures show a rise of 2.2%. This has led to a fall of wholesale and futures prices. (Source: Pork Network)

 

 

Macau

 

Pork imports

 

The Chinese territory and gambling capital's population now stands at 576,000, with an additional 2.3 million visitors per year. It imports around 10,000 tonnes of pork per year plus offal. For January to October 2012, Macau imported 342 tonnes from the UK, putting UK in the 9th position ahead of Canada, but far behind the main suppliers, Brazil and Mainland China. (Source: British Consulate General, Hong Kong)

 

 

Argentina

 

The EU drags Argentina to WTO

 

In conjunction with the USA and Japan, the EU has put forward a case against Argentina to the World Trade Organisation for its ban on imports of pork products. The EU states, this resulted in a loss of €500 million in 2011. (Source: Eurocarne)

 

 

Russia

 

Pork imports from US and Canada banned

 

Rosselkhoznadzor said ractopamine were found in pork imported from US company John Morrell, and Canadian companies, Aliments Asta and Quality Meat Packers Ltd. In addition, enhanced testing has been imposed on products from Maple Leaf Foods, Les Aliments Maple Leaf, Great Lakes Specialty Meats of Canada, Atrahan Transformation and Fearmans Pork. If further violations are found, Rosselkhoznadzor warned it will be forced to impose temporary restrictions on imports of products from these companies. Measure could also be imposed against the products from Brazil's Seara Alimentos and Sadia S.A., in which ractopamine has also previously been found. (Source: Pigprogress.net)

 

 

Ukraine

 

New breeding complex

 

Danish company, Skiold palns to built a pig-breeding complex in Samara oblast with a capacity of 100,000 pigs. The Danish company is also planning to build a pig-breeding complex in Samara oblast at a total cost of RUR3.5 billion. Currently, the company is in negotiation with the Ministry of Agriculture and Food of Ukraine.  (Source: VolgaNews)

 

Quarantine lifted

 

ASF related quarantine has been lifted in Komyshuvatka (Zaporizka oblast). The quarantine was introduced at the end of June 2012, when veterinary officers detected ASF virus in meat samples taken from dead pigs. Trade in pork was banned in 150km zone around the outbreak. The famers could only sell the pork they produced to meat processing plants, now they can sell their products on the markets as well. (Source: PigUa.info)

 

 

US$1 = EUR0.75 (Jan. 21, 2013)