February 15, 2012

                                                        

BPEX Export Bulletin-February 2013 (Week 6)

 

 

This week's export news

 

Pork exports to Australia have not started in earnest, as we are awaiting the letter of approval from the Australian veterinary authorities. A small BPEX mission is flying to Australia soon for political and commercial discussions.

 

The two-week Chinese veterinary inspection for pig semen went well, no major objections were raised. We are now looking forward to the risk assessment report from the Chinese authorities.

 

Following an exploratory mission to India in December, we are aiming to exploit the potential for livestock genetics, for which there is a clear demand. A follow up visit is planned this month; Canada and US competitors have also shown a strong interest. Pork is also on the 'menu'.

 

European exports of pork products to China doubled in 2012 to 536,000 tonnes, representing 18.5% of total shipments. However, Russia remains the largest market totalling 700,000 tonnes. Other key markets include Japan, 210,000 tonnes; the Ukraine, 151,000 tonnes (up 45%) and South Korea, 128,000 tonnes.

 

A measure authorising the import of live US pigs into the EU for breeding and production has been adopted by the European Commission. The new rule will lead to the import of a limited number of breeding animals which will apply from 25 February 2013. Import conditions include individual testing of pigs destined for export for vesicular stomatitis. The measures also cover the transit of live pigs through the EU to their final non-EU country destination. Although, most of the genetic exchanges involve semen, this will allow UK breeders to broaden their genetic pool.

 

 

France

 

Aoste in trouble

 

Aoste are about to close down their Yssingeaux site (in central France) and confirm four redundancies in the St. Symphorien sur Coise (also central France), where the group produces the Cochonou charcuterie products. This follows the split from Jean Caby and the closure of their Calixte factory in Boffres (in South of France). According to the owner of the latest affected two sites, Spanish group Campofrio, these developments are due to difficulties in passing on price increases to the retail sector.

 

Index on cuts

 

The inter-ministerial delegate, Alain Berger, is still trying to improve relationships between different parts of the French pig meat industry. The latest idea is to set up an index of cuts which could become a reference for commercial contracts, the Federation of retailers (which Système U has recently left) approves of the project, whereas SNIV - SNCP have already rejected it.

 

Markets

 

Pigs

 

Piglets

 

Cuts

 

Pork prices RUNGIS week commencing 4 February 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.65
Trimmings	1.44
Leg	2.50
Loin including chump	2.74
Loin excluding chump	2.52
Belly extra without trimmings	2.75

 

 

Denmark

 

Increasing exports of Danish piglets

 

Danish exports of piglets are now 40% higher than those from Holland. In 2012, Denmark exported approximately 9.2 million piglets, Holland exported 6.5 million. While Dutch exports remained unchanged, Danish piglet exports increased by approximately 15% during 2012. Germany is the leading destinations for both countries. Germany bought 4.1 million piglets from Dutch pig farms; Belgium and Poland are also key destinations for Dutch piglet exports.

 

Markets

 

Meat supplies on the market remain stable, at the same time, the conflict between Germany and Russia is affecting the market with increasing uncertainty. Products that would normally be exported to Russia, remain in German market with depressing prices, particularly trimmings and bi-products. Prices of legs and fore-ends remain unchanged. Prices of loins and backs are also stable. Trade is reported as slow on the British bacon market. The present strengthening of € has led to some uncertainty, reducing competitiveness on several third country markets.

 

Danish Slaughterhouses - payments week commencing 4 February 2013
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 – 86.9 kg)	Euro1.493	Euro 1.493
Difference to last week	Unchanged	Unchanged
Sows (Above 129.9 kg)	Euro 0.933	Euro 0.933
Difference to last week	Unchanged	Unchanged
Boars (Above 109.9 kg)	Euro 0.800	Euro 0.800
Difference to last week	Unchanged	Unchanged

 

 

Netherlands

 

Boar meat research

 

Gé Backus of the LEI Institute, is leading an international research consortium that includes organisations from Belgium, Germany, Denmark, France, Italy and Poland with collaborations in China and Russia. The acceptability of boar meat will be studied. (Source: Boerderij Vandaag)

 

NVV backs Gé Backus

 

 

Germany

 

Tönnies' boar development

 

In 2012, Tönnies slaughtered 1.5 million entire male pigs. The percentage of rejects for boar taint is between 3.5% and 5% or 7,000 tonnes of output.

 

Tönnies' "growth machine"

 

The largest pork producer in Europe now slaughters 150,000 pigs per week in Rheda-Wiedenbrück, 70,000 per week in Sögel, 80,000 in Weissenfels and 24,000 in Brørup (Denmark). This makes a total of 16 million pigs per annum. The convenience division produces 300,000 tonnes of product or two billion individual packs. From 2014, it will handle the production of Zur Mühlen, an iconic German brand. The ingredient division includes the renderers, Progra in Germany and Fapro in Belgium, as well as pharmaceutical and fine ingredient concerns Veracus and Acontex. The logistic division comprises Tevex Logistics. Tönnies is planning a large investment in Russia, with the production and processing of 800,000 pigs per year. Managing Director, Clemens Tönnies has the ear of President Putin. For China, they claim that their brand "202" is now the most famous in the land. (Source: Boerderij Vandaag)

 

GFS good performance

 

The AI centre sold 3.8 million doses in 2012, up 6% on the year. Turnover is now €13 million. (Source: Boerderij Vandaag)

 

Pork prices Hamburg Market Week commencing 4 February 2013
Cut name	Price range (Euro/Kg)
Round cut leg	2.20/2.40
Leg (boneless, rindless max fat level 3mm	2.95/3.20
Boneless Shoulder	2.50/2.70
Picnic Shoulder	1.95/2.20
Collar	2.40/2.60
Belly (bone in, ex-breast)	2.40/2.60
Sheet Boned Belly (rindless)	2.30/2.60
Jowl	1.50/1.70
Half Pig Carcasses U class.	2.00/2.10

 

Italy

 

Unhappy abattoirs

 

Italian abattoirs are operating at a loss. They are caught between strong demand, limited supplies and are hit by current high pig prices. (Source: Mercolleida)

 

 

Spain

 

Record volumes

 

Despite a slight fall of carcase weights, slaughter pig volumes for the last three weeks are still at record levels. Spanish pig abattoirs have increased their capacity which means they are still competing strongly to fill their extra capacity. (Source: Mercolleida)

 

Pork prices Barcelona Market Week commencing 4 February 2013
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.50/2.53
Loin Eye Muscle	3.38/3.41
Spare Ribs	2.98/3.01
Fillets	5.43/5.46
Round Cut Legs	2.63/2.68
Cooked Ham	2.47/2.50
Rindless Picnic Shoulder	1.75/1.78
Belly	2.49/2.52
Smoked Belly with Spare Rib Section Cut off	2.92/2.95
Shoulder chap or Head Jowls	1.18/1.21
Back Fat, Rindless	0.93/0.96

 
Brazil

 

Strong exports

 

Pork exports rose 13% in 2012 to 508,000 tonnes, these are still dwarfed by chicken exports of 3.92 million tonnes. (Source: Agra Europe)

 

 

USA

 

Higher slaughter weights

 

With carcase weights in constant augmentation, the weight of US slaughter pigs could rise to 132kg live by 2022. (Source: Porc Magazine)

 

Deadline for COOL ruling

 

Canadian and Mexican pork producers hope that the US will comply with WTO's ruling of Country of Origin Labelling (COOL). This is said to have cost Canadian farmers £1.2 billion. The WTO has given the US until May 26, 2013 to enforce their decision. It faces strong opposition with 90% of US consumers supporting the COOL legislation. (Source: Agfra Europe)

 

 

Thailand

 

Betagro invest

 

The company opened a new feedmill in the central province of Lopburi, with an investment of £22 million. The factory will produce 36,000 tonnes of additive-free feed per month for pork, poultry and cattle. This is the ninth feed mill for the company and the second additive-free, showing the way the market is going. It is also building a new pet food and fish meal plant worth £30 million. (Source: Asian Agri-Biz)

 

 

China

 

US genetics

 

The USA exported 12,138 breeding pigs to China in the 12 months ended 30 November, 2012. This represented a value of about £10 million, according to the US Meat Export Federation. (Source: Asian Agri-Biz)

 

New production unit planned

 

The Keshi Bush Organic Agriculture Company is planning to invest RMB350 million to set up a production unit in Huoshan County, Anhui. The capacity will be 200,000 head of high quality Black Pigs annually. (Source: BOAC Ltd.)

 

Pork price

 

The wholesale carcase price from the 36 markets in medium and large cities averaged RMB23.35/kg (£2.39/kg) in week commencing 6 February, up 0.5% on the week. (Source: BOAC Ltd.)

Russia

 

German restrictions

 

During inspection of German enterprises exporting meat and meat products to Russia, Rosselkhoznadzor experts found that in Bavaria, Lower Saxony and Northern Rein-Westphalia the veterinary and sanitary requirements of the Russian Federation and Customs Union were not being correctly fulfilled. Specifically, the veterinary control of products is inadequate and does not guarantee the quality of raw materials in meat products. Also, despite reports of previous violations, the German Veterinary Service hasn't taken measures to prevent future violations. To prevent potentially dangerous products entering the Russian market, Rosselkhoznadzor imposed a ban on imports of meat and milk products from the affected regions.  (Source: emeat.ru)

 

 

US$1 = EUR0.75 (Feb. 15, 2013)