BPEX Export Bulletin–March 2013 (Week 9)

 

 

This week's export news

 

Difficulties faced by the US market are dominating the pork news. With Russia and China imposing ractopamine bans on the US pork, export demand has been affected. This, combined with a weak domestic market, is applying a downward pressure on the prices. This is despite a 2.7% year-on-year fall in production, as supply forecasts predicted. Following a tough year in 2012, producers were expecting to rebuild cash flows in 2013, this is certainly not happening.

 

 

France

 

Fleury-Michon

                                                                     

In 2012, the turnover of the French market leader increased by 7.1% to reach €691b. The group ended the year with their best results: volume sales in the French retail sector increased by 5.3% and by 8.5% in value. The turnover for Fleury-Michon branded products increased by 9.9%, charcuterie products by 11.7% and catering up by 10%. The operational margin of the group, including international business, is predicted to be over 5% higher.

 

Household purchases of charcuterie products in 2012

 

Charcuterie sales, self service only, increased by 2.4% in volume in 2012. Interestingly, poultry charcuterie did not increase, with volumes decreasing by 0.2% with the average retail price increasing by 4.1% to €9.95/kg.

 

Market

 

Pigs

 

Price increases from last week have not been sustained, due to low demand. Prices are increasing only in Spain. In all other European countries, markets are low and stable. In the short term, we do not see demand improving.

 

Piglets

 

 

High Danish genetic sales

 

The total turnover for Danish boar semen and breeding pigs reached in excess of €200 million in 2012, up 14% on the year and 50% more than in 2008 when selling genes from Danish pigs for export truly began. According to Nikolaj Norgaard, CEO of Knowledge Center for Danish Pig Production, Danish breeding animals and boar semen generally ensure robust productive pigs with high eating quality. The president of Danish Pig Production, Laurids Sondergaard, predicts that the interest for Danish genes will increase further. (Source: Landbrugsavisen, JyllandsPosten).

 

Market

 

Germany

 

Fewer pigs in Europe

 

Eurostat have published the December pig populations statistics from 19 EU countries. The December census shows, as expected, that virtually all EU countries have recorded declines in breeding stock. Total stocks show an aggregate decline of 1.6% in the EU-19. The decline is largely driven by lower Polish pig numbers. (Source: Markedsnyt for Svinekoed)

Spain

 

Pig breeding complex planned

 

A pig breeding complex with capacity for 130,000 pigs is to be built in Ulyanovskaya oblast in Russia.  The investor of the RUR3.3 billion project is the Russian company ROS-BEKON. The complex will include pig farms, a feed plant and a refrigerated slaughterhouse. The company is planning to produce 15,000 tonnes of pork annually; the project is due for completion by 2015. (Source: PigUa.info)

 

 

Ukraine

 

Import restrictions

 

The Ukraine banned imports of all products of animal origin, including frozen pork, manufactured by the Brazilian company Alibem Comerical de Alimentos due to their failure to comply with Ukrainian microbiological requirements. The ban came into force on 28 February 2013; consignments shipped prior to the ban will only clear customs after passing a thorough veterinary examination. (Source: PigUa.info)

 

 

China

 

Pork prices

 

In week commencing 25 February 2013, the wholesale pork price collected from 36 markets in medium and large cities averaged RMB23.06 (£2.46) per kg. At this level, the price was 3% lower on-week. Increased pig supplies in the face of falling consumer demand in the post New Year holiday period were the main drivers behind the decline. (Source: BOAC Ltd.)

US$1 = EUR0.77 (March 5, 2013)