March 28, 2013

                                                                                     

BPEX Export Bulletin–March 2013 (Week 12)

 

 

This week's export news

 

UK pork exports for January are up a positive 9.4% on the same month of 2012, to 12,000 tonnes. China was the star performer, with 3,000 tonnes in total being shipped to Mainland China and Hong Kong. However, exports to the Netherlands have rebounded, doubling to 2,700 tonnes. Germany remains the largest single market with 2,800 tonnes (+7.7%). Offal exports were up 5.6% to 2,600 tonnes.

The location of the newest pig AI centre near Standsted Airport is a testimony to the export potential of British pig genetics.

 

 

France

 

Marché du Porc Breton

 

Marché au cadran is a French version of auction market system. Marché du Porc Breton (MPB) is an association set up to organise the marketing of pigs in Brittany; it is based in Plérin, near St Brieuc. The auction system is based on electronic decreasing bids, batches are presented at random and unsold lots are sold at the end of the market at the average price from the days sale. Auctions take place on Monday afternoon (results available at 5pm) and Thursdays (results available at 1pm). Sellers represent 10 different groups of producers covering all "départements" within the region, including Agrial (72), Cecab (29) and Triskalia (22). On the buying side, 14 companies are represented including Abera, Bernard, Cooperl, Socopa and Charal.

 

MPB prices are used as the national reference. MPB gives regional prices and international prices to all operators using the market; they also produce weekly and monthly analysis of the pig market

                                                                     

Market

 

Pigs

With limited increases and enthusiam on the European market and French demand, respectively, the 56 TMP basic price on Monday did not confirm the increase started last Thursday.

 

Piglets

French prices remain firm on a balanced market. Although demand is somewhat limited, there is currently no excess in piglet supplies. The FNP-FNCB piglet index increased US$0.03 for 25 kilogrammes piglets and was US$0.63 higher for eight kilogrammes piglets.

 

Cuts

Food Scandal

 

Although recent food scandals have involved horse meat, organic egg fraud, aflatoxins in milk but not pork, they have shaken overall consumer confidence in Holland. (Source: various)

 

Economic results positive

 

Agrovision data points to a gross margin of US$641.53 per sow in 2012, up from US$334.21 in 2011 with 27.8 pigs per sow yearly. The results show US$105 gross margin per slaughter pig, up from US$94.76 for pigs at 92.3 kilogrammes, 58% meat. The feed cost is up to US$1.01 per kilogramme of growth from US$0.92 a year earlier. (Source: Boerderij Vandaag)

 

 

Denmark

 

Brørup slaughterhouse expands

 

 

Denmark reported that it is 94% compliant with the new legislation, which is why the EU Commission recently made Denmark aware that they may refer Denmark to the Court of Justice. Despite the fact that Spain has reported to the EU Commission that it now largely complies with the new 2013 legislation for loose sows, an animal welfare group has revealed the opposite. Recordings from the group, Compassion in World Farming, show that Spanish pig producers still keep pregnant sows in stalls. (Source: Markedsnyt for Svinekoed)
 
Market

 

Rise of export of dry-cured ham and shoulders

 

Pork prices Barcelona Market Week commencing 18 March 2013
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.58/2.61
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

Australian approval           

 

Following the UK, Irish pork is now approved for export to Australia. (Source: Irish Farmers' Journal)

 

 

Russia

 

Pork consumption to overtake poultry

 

According to projections by the European Commission on Russian agricultural markets, pork consumption should grow strongly towards 2020-25 and should overtake poultry by 2017. The economic forecasts also show that Russian pork prices will rise further, leaving a wider gap against EU prices. Growth in Russian pork production will not be fast enough to seal the gap, thus causing imports to continue rising. (Source: European Commission)
 

Import duties may increase

 

The Ministry of Agriculture is considering the possibility of increasing import duties for pigs and dairy products to Russia exceeding quota volumes. For reference, after Russia joined the WTO, the import duty for pork was decreased from 15% to 0% and for imports over quota the duty was decreased from 75% to 65% but not less than US$1.92 per kilogramme. This resulted in higher pork imports to Russia and a decrease in proficiency of domestic pig-breeding. The government should support the domestic producers or volume for pork output in Russia will significantly decrease, market experts said. (Source: Expert Online)
 

FMD in Russia

 

Foot and Mouth disease, of Asian strain, has been detected in the trans-Baikal region. Cattle and pigs are implicated. (Source: OIE)
 

Listeria infected bacon imported

 

Rosselkhoznadzor will remove from sale, frozen smoked bacon imports from Belgium, which are produced by Vlevy. It is reported that the product was infected with listeria, which may result in serious health problems to consumers.  Rosselkhoznadzor central office informed its regional branches to remove the product from sale. (Source: PigUa.info).
 

 

Ukraine

 

Higher pork imports

 

In 2013, pork imports to the Ukraine increased from US$21.1 million in January to US$27.5 million in February in value terms, an increase of 37.8% on-month. (Source: APK inform)

 

 

China

 

Zhongpin to go private

 

The major pork processor will go private in a US$423.3 million complex deal with Golden Bridge, a Caiman-based holding company. The deal benefits from a loan by China Development Bank. Zhongpin operates 3,447 retail shops in 20 provinces. (Source: Asian Meat, our comment)
 

Food control restructure

 

 

 

New Hope Liuhe Feed plans to invest US$203 million in a new pork project in Chongqing. The project, scheduled to be completed in 2018, is designed with a production capacity of 320,000 head and a slaughter capacity of 500,000 pigs annually. (Source: BOAC Ltd.)
 

Prices

 

In the week commencing March 18, the Chinese wholesale pork price collected from 36 markets in medium and large cities averaged US$3.31/ kg, 4% lower on-week. Supplies are reported as adequate due to weakening demand. (Source: BOAC Ltd.)
 

 

Higher South Korean pig production

 

According to the USDA, South Korea's pig production is forecast to increase by 20% in 2013. The consumption of pork is anticipated to increase accordingly and pig prices are expected to decline. In order to avoid a drop in prices, several producers are voluntarily reducing sow numbers by 10%. The government will assist with such efforts. In addition, pigs will be slaughtered at lower weights and processed dishes must contain more than the current 80% of meat produced in South Korea.(Source: Feedinfo, Markedsnyt for Svinekoed)

 

 

Vietnam

 

New abattoirs for Hanoi

 

The Vietnamese capital of Hanoi plans to build eight new abattoirs by 2015 with a daily capacity of 245 tonnes of pork, 78 tonnes of poultry, and 45 tonnes of beef accounting for between 50% and 70% of fresh meat in the city. By 2016, two further abattoirs will also be built with a capacity for 70 tonnes of pork and 66 tonnes of poultry. The city has operated six abattoirs which are operating below capacity. There are 3,000 abattoirs in Hanoi, of which 2,540 fail to meet hygiene requirements. (Source: Asian Meat)
 

Consumption holding

 

Despite the major clenbuterol scandal of 2012, pork consumption is not affected significantly and has registered some growth, moving from 3.20 million tonnes in 2011 to 3.36 million tonnes in 2012. It is forecasted at 3.53 million tonnes for 2013. Imports are expected to fall in 2013. (Source: GIRA)
 
Dong Nai chooses Canadian genetics

 

British genetics have performed strongly in Vietnam. However, the pig producers' association of Dong Nai province is building a GGP farm for 400 sows, using Canadian stock. The organisation works in partnership with the abattoir of the Dong Nai Food Industrial Corporation (DOFICO).  PRRS is a serious problem in the province. (Source: Asian Pork)
 

 

Pork import appeal rejected

 

An appeal by New Zealand's pork producers to block pork imports, on the basis of PRRS risk, has been rejected. New Zealand imports 41,000 tonnes of pork from Canada, US, Australia and Finland and produces 49,000 tonnes. (Source: Scoop Business)