March 14, 2013

                                                                                 

BPEX Export Bulletin–March 2013 (Week 10)

 

 

This week's export news

 

UK pork and pig offal exports for 2012 (excluding fats) totalled 235,000 tonnes, exactly as forecast. The strong growth was underpinned by the opening of the Chinese Mainland market with prospects for 2013 even better. We will provide a full analysis over the next few weeks. 

 

Certificate 7552EHC for the export of pork to Albania 'at exporters' risk, meaning that no agreement exists with local veterinary authorities, has been made available. A certificate for the export of pork products to India is now available, although we need to clear it first with the Indian authorities.

 

A roadshow to promote British sausages in Japanese supermarkets is the latest success of our pioneering sausage exporters.

 

 

Denmark

 

Slaughterhouse in Vrå reopens

                                                                     

Pigs will again be slaughtered at the Vrå slaughterhouse which closed over two years ago with a target capacity of 4,000 pigs a week. The Finnish trading company GSS-Export has guaranteed the sale of the majority of the slaughter pigs to a Russian partner. The slaughterhouse has received a financial boost from a Russian tycoon who invested €6 million in the company. (Source: TV2 Nord, Landbrugsavisen).

 

Higher antibiotic use

 

After several years' of decline in the use of antibiotics in Danish agriculture, the Danish Ministry of Agriculture has published new figures for antibiotic use in pig production that shows a significant increase from 2011 to 2012. In absolute numbers, it is an annual increase of 5.5%. However, due to the decrease in total pork production in the same period, the increase reaches 10.5% when calculated according to accumulated production. (Source: Foedevareministeriet)

 

Forecast downgraded

 

Agriculture & Food (Landbrug & Fødevarer) acknowledges that its projected pig quotation for the first quarter of 2013 was over optimistic. The forecast price of €1.567/kg compares with an average of €1.511/kg achieved in the period. Changes in exchange rates have been a major factor resulting in a stronger Euro and thus, Danish kroner weakening settlements in Japanese Yen, British Pounds and American Dollars. The forecast for the remainder of the year remains optimistic. Statistics confirm that European pig production has declined, Global production is slightly higher than expected due to higher production in the US, Russia and China (Source: Landbrugsavisen)

 

Market

 

France

 

Fleury-Michon

 

Fleury-Michon remains the leading brand in the charcuterie sector with 11.7% market share (+5.9% in value). The group is enhancing communication with a film focusing on the history of the company, which started in 1905. The new advertisement is designed to launch a new range "Recette Authentique" which includes four ham based recipes and two traditional joints. Fleury-Michon and other charcuterie processors are strongly emphasising the nutritional values of their healthy and light meal ranges, even though these two segments together only represent 6.1% of the total market.

 

Illegal sows

 

Together with eight other member states, including Germany and Denmark, France has received a letter from the European Commission's request for French pig producers to comply with sow protection measures. France has two months to respond to the Commission.

 

Market

 

Pigs

 

With a small increase of €0.003 for the 56 TMP basic price, the first quotation in Plérin confirms that abattoirs are very cautious with their purchases, due to low sale prices. Availability for breeding pigs is low.

 

Netherlands

 

Topigs restructures

 

Arno van der Laar is now European Director, Glen Illing Asia-Pacific-Africa Director and Peter van Kemenade Americas Director. Hans Olijslagers becomes Reseach Director with Peter Loenen leading the concern. (Source: Boerderij Vandaag)

 

Beusmeat taken over

 

Teeuwissen, the worldwide fifth quarter concern (4,000 staff) and Wellink (160 staff), producer of raw material for further processing are taking over Beusmeat in Leek. Beusmeat, who have a turnover €60 million, is a specialised pig head processor, which imports large volumes from the UK. The new group will have bigger international clout. No changes in imports are foreseen. (Source: Boerderij Vandaag)

 

Vion modifies its specification

 

For its mainstream 'Good Farming Star' products will use castrates and gilts from 80 to 110kg with 9 to 19mm back fat. For young boars, the specification includes pigs from 80 to 100kg with 9 to 15mm back fat. Obviously, pigs outside these specifications face a price downgrade. (Source: Boerderij Vandaag)

Pork prices Hamburg Market Week commencing 22 October 2012
Cut name	Price range (Euro/Kg)
Round cut leg	2.30/2.50
Leg (boneless, rindless max fat level 3mm	3.10/3.35
Boneless Shoulder	2.55/2.70
Picnic Shoulder	2.00/2.20
Collar	2.50/2.65
Belly (bone in, ex-breast)	2.45/2.60
Sheet Boned Belly (rindless)	2.30/2.60
Jowl	1.60/1.75
Half Pig Carcasses U class.	2.02/2.10

Pork prices Barcelona Market Week commencing 23 October 2012
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.58/2.71
Loin Eye Muscle	3.53/3.56
Spare Ribs	2.98/3.01
Fillets	5.43/5.46
Round Cut Legs	2.83/2.86
Cooked Ham	2.50/2.53
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

USA

 

Sequestration due to budget cuts may have some effect on meat supplies

 

A mass layoff of meat inspectors would shut down nearly 6,300 processing plants because companies cannot sell meat that lacks the USDA inspection seal. The White House estimates the industry would loose US$10 billion in production with a two-week shutdown. However, the government will stagger the layoffs to minimise the impact Agriculture Secretary Tom Vilsack said this week. Nonetheless, shortages are not excluded. (Source: various)

 

 

Russia

 

German inspections

 

The Veterinary service of Germany has inspected 10% of German enterprises that are entitled to export products of animal origin to Russia. Enterprises that do not meet the Russian veterinary requirements will be denied the right to export products to Russia and other countries of the Customs Union. (Source: emeat.ru)

 

 

Ukraine

 

Possible restrictions on Brazilian imports

 

According to results from laboratory tests conducted by the Odesa Regional State Laboratory, some half pig carcases imported from Brasil Foods failed to meet Ukrainian microbiological requirements. Recently, there have been several cases of meat from Brazil failing to comply with Ukrainian requirements. The State Veterinary and Phytosanitary Service has stated further sanitary and veterinary violations could result in a ban on imported meat products from all Brazilian enterprises. (Source: PigUa.info)

 

 

China

 

Pork prices

 

In week commencing 4 March, the Chinese wholesale pork price collected from 36 markets in medium and large cities averaged RMB21.95 (£2.35) per kg, 5% lower week-on-week. (Source: BOAC Ltd)

 

 

US$1 = EUR0.77 (March 14, 2013)