About US$2.27 million of British pork (excluding offal) was sold to China during March 2013, placing Britain at the eight position for exporters. Ireland also witnessed positive performance, with exports of US$1.32 million. However, Britain is not faring well with breeding pigs. 2,200 gilts and boars were imported from the US in the first quarter, 995 from France, 641 from Denmark, 572 from Canada but none from the UK. Chinese total pork imports were down 10% in the first quarter and a decline is predicted for the whole of 2013.
Articles promoting British pork and pig genetics are to be published in Profisvine (Russia) and CAAA bulletin (China).
Denmark
A consumer survey shows that the residual fat left in the pan when frying bacon is the largest negative for Danish consumers when cooking bacon at home. Therefore, Tulip has developed a new type of bacon - extremely thin slices that can be crispy baked in the oven instead of frying. (Source, Landbrugsavisen).
|
Danish Slaughterhouses - payments week commencing 22 April 2013 | ||
|
Slaughterhouse |
Danish Crown |
Tican |
|
Slaughter pigs (70.0 – 86.9 kg) |
Euro 1.466 |
Euro 1.466 |
|
Difference to last week |
unchanged |
unchanged |
|
Sows (Above 129.9 kg) |
Euro 1.026 |
Euro 1.026 |
|
Difference to last week |
unchanged |
unchanged |
|
Boars (Above 109.9 kg) |
Euro 0.894 |
Euro 0.894 |
|
Difference to last week |
unchanged |
unchanged |
France
On April 15. Le Foll, the French Minister of Agriculture, clearly supported increasing French pig production in order to avoid abattoir closures, as happened recently with Doux in the poultry sector. Two million pigs have been lost since 2010. The French government has no available funds to support prices in the industry. Mr Le Foll is expecting French retailers to take this role. Finally, he suggested a review of specifications for the logo of the French pork quality mark, Viande Porcine Française (VPF), before the summer, in order to communicate clear messages to consumers about the main criteria regarding social issue, sanitary status, origin and quality.
According to Christophe Peter, Managing Director of Gad, the company is operating below capacity at both sites. With potential capacity of 28,000 pigs, the Lampaul site is only processing 21,000 pigs per week. At their main site in Josselin, capacity is 42,000 pigs but the group currently only processes 26,000 pigs weekly through the plant.
Pigs
Piglets
|
Pork prices Rungis - Week commencing 22 April 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Back fat, rind-on |
0.6 |
|
Trimmings |
1.36 |
|
Leg |
2.47 |
|
Loin including chump |
3.04 |
|
Loin excluding chump |
2.65 |
|
Belly extra without trimmings |
2.96 |
Germany
Early this week, available slaughter pigs were sold without problems. However, as the week has progressed, pig supplies have increased and are now exceeding demand. Operators also report large stocks in cold storage and an ongoing lack of export demand, especially in southern Germany. Furthermore, next week is a short four day week which will result in even higher pig numbers. some producers agree that the pork market needs zest and lower prices may be difficult to avoid.
|
Pork prices Hamburg Market Week commencing 22 April 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Round cut leg |
2.32/2.50 |
|
Leg (boneless, rindless max fat level 3mm |
3.20/3.35 |
|
Boneless Shoulder |
2.50/2.70 |
|
Picnic Shoulder |
2.00/2.20 |
|
Collar |
2.65/2.75 |
|
Belly (bone in, ex-breast) |
2.42/2.60 |
|
Sheet Boned Belly (rindless) |
2.28/2.55 |
|
Jowl |
1.60/1.75 |
|
Half Pig Carcasses U class. |
2.04/2.12 |
Netherlands
Vion increased their quote by US$0.03 to US$2.24 last week following German prices. A suspension in the price rise is expected (see above). Meanwhile, Rabobank (see above) predicts a rise in world pork price for the second half of the year, lead by increased Chinese imports. In the first half, traders should expect a stable situation with supply and demand being more or less in balance. (Source, Boerderij Vandaag)
The vastly indebted group plans to sell its huge and highly profitable ingredient business. The company is expected to take a hit of US$776.4 million due to a massive disinvestment. (Source, Reuters)
Spain
|
Pork prices Barcelona Market Week commencing 22 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 |
2.92/2.96 |
|
Shoulder chap or Head Jowls |
1.13/1.16 |
|
Back Fat, Rindless |
0.83/0.86 |
Bulgaria
The European Commission is scathing with regards to application of the EU-funded measures against Classical Swine Fever (CSF). The audit report mentions the failure to list small pig holdings and pig movements, poor control of wild boar population and biosecurity on farms and lack of adequate resources for laboratory testing. (Source, EC)
USA
US producers may return to profitability according to Chris Hurt of Purdue University. Pork price prospects are boosted by the USDA Grain Stock report that shows a surprising high inventory and the recent decline of corn and soy. A return to breakeven will be welcome as producers have suffered three quarters of losses. Thus, modest profits could unfold in the third quarter. (Source, Agra Europe)
Economist Sun Chi, from the Daiwa Investment Group, predicts that Chinese pork prices will increase dramatically. Low pork prices in China have led to a decline in the Chinese pig population. Falling by 14.8 million head in January and 8.5 million in February, the population is between 450 and 480 million pigs. If the population continues to decline at this rate, supplies will be tight on the Chinese market in six to nine months, driving prices higher. The Chinese authorities' decision to purchase pork for storage may limit future price increases but not prevent them. (Source, Markedsnyt for Svinekoed).
|
Chinese wholesale prices week commencing 22 April 2013 | |||
|
　 |
Price (RMB/Kg) |
£/Kg |
change on week |
|
Pig Carcases |
18.64 |
1.98 |
1.98% |
| Source: BOACL | |||
| Prices collected from wholesale markets in 36 medium and large Chinese cities | |||
Vietnam
A new strain of foot and mouth disease (FMD) with a type A virus has emerged in the provinces of Ha Tinh and Thanh Hoa, in central Vietnam. Currently, there is no available vaccine for this strain. Department of Animal Health Deputy Director, Dam Xuan Thanh, said that Thailand has embarked on research to produce a vaccine for this strain of FMD. He added that the blue ear epidemic has spread in several Northern provinces, causing pork prices to fall. (Source, Asian Agri-biz)
South Africa
Small but growing market
The processed pork market was totalled at 168,000 tonnes in 2011. It is experiencing a growth rate of 3.4% per year. Like other food commodities in South Africa, it is affected by high food inflation. The market is dominated by frozen products (52%), ahead of chilled (42%) and canned (6%) products.
Local label products represent only 18% of the market. Strong brands like Irvin & Johnson (13.4% market share), Heinz (13.2%), Tiger (11.4%), Bull (4.7%), Rainbow (4.4%), Astral (4.3%), Eskort (4.1%) and Fry (3.8%) took the lead. The quality and value of the product remain generally low. However, Woolworths has a sophisticated range, under its own label, including quality cooked and dry cured ham and salami. Other retailers like Shoprite and Pick & Pay have also improved their range of processed meat in their more affluent stores.
Opportunities
Gammon was the most demanded product from South African retailers during 2012. Sausages are also sought. BPEX and EBLEX will be present at the IFEA show during September 18-20. Processed pork product will be on display alongside lamb, beef and offal products.
