April 26, 2013
 

BPEX Export Bulletin- 19 April 2013 (Week 16)             

 

A group of twelve Korean veterinarians and technical staff have visited the UK to review traceability and controls for the pig and cattle sectors.  This comes after a March visit by a Korean film crew to produce a documentary on British pork provenance and safety. The group was accompanied by Dong Gwan Kang, a government official.

 

With lighter supplies this year and the expected seasonal price rise, it is expected that EU pork wholesale prices will increase over the summer. However, it is not proven that they will reach the US$2.48 achieved last October.

 

 

Denmark

Record turnover for Danbred

Tulip's plant at Oldenburg in northern Germany is going to be expanded. The expansion of 1,000 square metres is for a new bacon department which should be operational by October. The expansion is taking place to keep up with the demand for bacon on international markets. (Source, Danish Crown)
  

Export licence to Russia

The Danish Meat Company's new slaughterhouse in Vraa has ambitions to secure exports of Danish pig meat to Russia. The slaughterhouse is waiting for an export licence for the Russian market. Backing the new slaughterhouse is Russian-born owner, Sergei Medvedev, who already owns other food production operations including delicatessens. (Source, JyllandsPosten)
 

Danish Crown UK shipping agreement

The shipping company DFDS has signed a major agreement with Danish Crown. The agreement means the company will sail from Esbjerg to England with 6,500 reefer containers annually. The agreement safeguards the Esbjerg-Harwich route. (Source, Esbjerg)
 

Markets

France
 

Chitterling sausages

The famous "andouillette" is not everyone's favourite meal. This French delicacy is made from the pig's digestive organs (veal, beef and sometimes even lamb can also be incorporated). The stomach and intestine products are carefully washed, cut, seasoned and marinated before being cased to create a thick whitish sausage. Some people may not like the smell or taste of the final product. Thus, Bigard and Charcuterie du Don have launched a new Toulouse sausage including 20% of "andouillette" components in the mix, hoping that the balanced taste will attract new consumers. The same concept has been applied to another delicacy - the "Andouille" - which is exclusively made of pork digestive organs: intestines (80%) and stomach (17%). There are several versions. The famous Guémené version is made by hand, as the layers of intestines need to be rolled carefully to produce a large, unevenly dark sausage. To soften the taste, manufacturer Andouillerie du Château, has launched a modern version for aperitif with the middle of the sausage made of cured pork belly surrounded with several layers of Andouille.
 

Summer sausages

In the summer, the grilling sausage market is restricted to Toulouse and chipolatas with a 48.3% market share. This is followed by Merguez with 25.2%, pork stuffing 21.5% and finally a mix of offers accounting for 5% of the market. Sales are closely linked to the weather and the trend for this summer is mini versions of grilling products (sausages and brochettes) and longer shelf life, especially for brochettes. The Plancha cooking fashion is still rapidly growing. Interestingly, there are new plancha products in the poultry and duck ranges but nothing yet for pork ranges.
 

Markets

Pigs

The 56TMP price lost US$0.02 last Monday at Plérin. Supplies are more than sufficient in the face of subdued demand.

Piglets

The market is stable and prices are firm. FNP-FNVBV prices lost US$0.04 for 25kg and US$0.64 for 8kg piglets. Supplies are currently limited while orders are increasing.

Cuts

 

Waiting for the sun

 
Belgium
 

Protest against price stunts

Some sixty Belgian pig farmers protested in Sint Niklaas and Roesenlare against excessive price discount of 30% to 40% of pork prices by some supermarkets. They want an alternative pricing system based on cost of production. (Source, Boerdeij Vandaag) 
 
  
Sweden 
 

Pork in halal sausage

A potential meat scandal has started in Sweden as food authorities found about 10% of  pork in a Halal-labeled salami. The salami is produced in Slovenia and sold by a company in Gothenburg. It is not clarified if the company in Gothenburg imported the sausage directly from Slovenia, or whether it was bought through another company in Sweden. (Source, Ritzau)
 
 
Spain

Pork prices Barcelona Market Week commencing 15 April 2013
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.48/2.51
Loin Eye Muscle	3.38/3.41
Spare Ribs	2.98/3.01
Fillets	5.33/5.36
Round Cut Legs	2.73/2.76
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

  
 
Netherlands 
 

Tussle between Van Rooi and Vion keep prices up

The battle between the two main players is adding pressure on the market which is already showing signs of a steady rise. (Source, Boerderij Vandaag)
 
 
Ireland 
 

Irish subsidies for loose sow rearing to extend

The government subsidy programme to convert from stalls and tethers to loose sows has been extended to the end of September to allow stragglers to join. (Source, Irish Farmers' Journal)
 
PRRS outbreak

Lower pork production

According to the State Statistics Service, Ukrainian fresh pork production in the January - March period fell by 1.5% to 46,900 tonnes. The fall in frozen production was more marked, decreasing by 30% to 2,500 tonnes. (Source, PigUa.info)
 

Higher prices forecast

 

Wholesale prices decrease

According to the National Meat Association, the average wholesale prices for pigs and pork have decreased by between 20% and 30%, depending on the region, since Russia became a WTO member in August last year. Sergey Yushin, the Head of the Association, says the average wholesale liveweight price for pork decreased during the period from US$2.84 per kilogramme in August 2012 to US$1.89 per kilogramme by March 2013. The prices for half-carcases decreased from US$4.42 per kilogramme to US$2.9 per kilogramme over the same period. At the same time, retail prices only fell by 2 to 3% during the same period. (Source, kommersant.ru)
 
 

USA

COOL regulations but hot tempers

Tempers are fraying in the consultation on the Country of Origin legislation (COOL). Among others, the National Pork Producers' Council (NPPC) opposes the proposal on four grounds. It fails WTO measure and the US would risk retaliatory measures that would endanger pork exports. It is of "doubtful benefit to consumers". It threatens the growing supply chain integration in NAFTA. Finally, it will cost US$2.5 billion to implement and US$215 million annually. (Source, NPPC)
 
 
China

Avian flu crisis may have pork implications

The latest outbreak of avian flu that has caused 14 fatalities since March, near Shanghai, is a major cause of concern and sales of chicken products have plummeted. The government has been more open with the World Health Organisation and is dealing with the outbreak more swiftly and decisively by bird culling and suspending live sales. Until a decree of 2003, local authorities covered up disease outbreaks in order to protect their economies and reputations. It was only in 2007 and 2008 that legislation was introduced to end the ban on unauthorised media coverage and freedom of non-secret information with local authorities. Still, practices are different and local rules still prevail. Some thirteen people were recently jailed for "spreading" information on the disease. This crisis comes just as the dumping of thousands of dead pigs near the town is still fresh in memories. The government has not disclosed the cause of death although avian flu seems excluded. (Source, The Economist, Caijin Magazine)
  

French pork sector targets China

As part of a larger trade development initiative, the French pork sector aims to develop a premium farm to fork approach. It will be interesting to see if SIAL, taking place next month, will demonstrate the commercial will and investment to reach this goal. The French have been successful in developing Rungis-style wholesale markets, called Marchés Hyperion, in China. It is a co-venture with Chinese interests and the first market in Nanning is now fully operational. Further ones are under development in Tianjin, Changsha and Luizhou. (Source, Agra Europe, Rungis)
  

Storage policy for pig meat

Some 840 million people, representing 67% of the population of India, benefit from state food aid. Around 62 million tonnes of rice and wheat are distributed through the 500,000 ration shops of the Public Distribution System (PDS). The main issue has been that 40.4% of the aid does not reach intended parties due to corruption, pilferage or inefficiencies, labelled under the gentle euphemism of 'leakage'. This is down from 54.1% in 2004-2005. The central government will still maintain the central pool and allocate it to depots in each state. States will be responsible for the allocation. The government intends to have less than 25% 'leakage' in the future. Still, the system supports grain prices for farmers in India through minimum prices and the very large public stocks. These, in turn, contribute to high world grain prices. Grain price inflation topped 17% in 2012 in India. The new system will be computerised and hopefully bring more transparency. In the future, cash transfers are expected to replace grain subsidies and ration cards and the revised scheme makes room for this more efficient help. A pilot project has started in six states. In the medium term, lower grain prices are expected in India. (Source, New Delhi Sunday Business Standard, our comments)
 

Pork situation: good prospects but difficulties ahead

India's pork production remains unorganised and localised in the North East and the coastal South (eg Goa, Mangalore), the main regions of production and consumption. It is estimated that around 20 million people eat pork, mainly Christians and Chinese minorities. Production stands at around 350,000 tonnes for the whole country with a rate of growth of 5-10% per year although there are no clear statistics. For instance, many Naga people in the North East keep backyard pigs. Unsurprisingly, production conditions, end product quality and availability are poor (see below). Fresh pork consumption is restricted due to the lack of organised trade and cold chain. Hence, salty, shelf-stable bacon and dry/smoked spicy sausages such as the chouris pão in Goa dominate the offer. Imported canned pork is increasingly available in stores. The great chance for pork is the development of a middle class now numbering some 170 million people, who are keen to increase their meat consumption. Hindus represent 80.5% of the population and the great majority of them consume small amounts of meat. However, pork consumption is not likely to develop in the North West where the proportion of Muslims is highest. It is also in need of major investment with public-private partnerships the most expected way forward. Finally, meat prices are rising fast (14% in 2012 against 2011) confirming that demand is outstripping supplies but higher prices could deter buyers. (Source, own)

Pork production must step up

Despite the efforts of India's Pig Research Centre in Guwahati and the increasing interest of the livestock departments of leading universities, the performance of Indian pork production remains poor. Starting with nutrition, pigs are not fed grain or processed feedstuff and FCR is around 4.0. Sows only wean six piglets on average per year with nine born alive. The lean meat content of carcases varies from 35% to 40%. Parent and Grand-Parent selection is non-existent. The last British pigs were imported in Kerala in 1994 and British breeds still dominate the stock. Canadian pure bred pigs were imported recently as the country aims to develop its pork production and has laid plans to improve pig breeding. (Source, own)