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May 10, 2013

 

BPEX Export Bulletin-17 May 2013 (Week 20)             

 
 

The 23 UK companies, which were involved in Chinese food trade shows, SIAL (Shanghai, China), and Hofex (Hong Kong), last week, have returned and reported a high level of serious queries; some even took orders on stands.

 

The large delegation included traders, major pork processors, niche pork producers as well as sausage, bacon and pork snacks makers. Another subject of satisfaction comes from the UK Trade and Investment's (UKTI) GREAT campaign, which worked well with the British Meat branding at Hofex.

 

During Hofex, Westaway sausages were promoted by Barbara Woodward, Director of Trade at the UK's Foreign Office, and Caroline Wilson, the Consul General. The sausages were also featured prominently in Ming Pao, one of the Hong Kong's daily papers. The coverage included the British Meat stand banner.

 


France
 

Angry producers
 
With a 20% increase in feed prices in 2012, pig producers are reporting losses of about US$38.54 per pig with some losing as much as US$12,848 a month. On May 14,  pig producers in Western France had protested by preventing lorries from transporting imported pigs. Demonstrations are also planned in supermarkets. French farmers blame unfair competition from EU member states marketing cheaper meat on the French market.
 
Ingredients: the successful marketing segment

Lardons, dice, sticks and other culinary aids are ahead of other charcuterie products in terms of sales development. With an output of 64,000 tonnes, the market for ingredients increased by 3.7% in volume and by 5.4% in value to reach US$624.4 million. This growth is more than twice that of cooked ham (1.8%). The attractive price/convenience mix is the driver behind this - for as little as US$2.57, protein can easily be added to any meal. The versatility of these products also attracts consumers for simple and creative recipes. Lardons still represent 70% of the total market of charcuterie ingredients, with reduced salt varieties helping to maintain market share. Local lardon products represent half of total sales. Bacon has never found its place on the French market. However, as a lean ingredient proposition, it is often used on TV cookery programmes.
 
Markets
 
Pigs
 
Offerings were strong last Monday at Plérin, France. At the same time, abattoirs showed that demand was strong; in this context, the Plérin 56TMP basic price of US$0.0013 indicates that "offers are not too strong".
 
Piglets
 
High production costs and steady demand for charcuterie pigs on the French market resulted in prices remaining stable at best, or falling slightly on the week. FNP-FNCBV prices lost US$0.013 for 25kg pigs and US$0.39 for 8kg piglets.
 
Cuts
 
In France and the Netherlands, the downward trend continued, with offers falling by 3.7% over the first four months of the year compared with the same period in 2012.
 

Pork prices RUNGIS week commencing 13 May 2013

Cut name

Price range (Euro/Kg)

Back fat, rind-on

0.6

Trimmings

1.26

Leg

2.44

Loin including chump

3.04

Loin excluding chump

2.74

Belly extra without trimmings

2.98

 

Denmark
 
Danish Crown report

Danish Crown reported results of US$122.1 million for the first six-month period of the company's financial year. This compares with US$127 million in the corresponding period a year ago. Turnover for the period was US$4.9 billion compared with US$4.7 billion last year. (Source, Danish Crown)
 
Progress for Sokolow
 
The Polish meat business Sokolow, partially owned by Danish Crown, increased their earnings during the first quarter of the year. Profits are at US$14.1 million, compared to US$8.4 million in the same period a year ago. The increase is reported to be due to increased sales of processed products. During the period, Sokolow started new production lines at several plants in Poland. The company is the number two meat group in Poland, surpassed only by Animex, which is under Smithfield. (Source, Landbrugsavisen)
 
New grant for Danish pig producers

The Danish Food Department has reserved US$26 million to establish new production units under the so-called Environment Technology Scheme. According to the Knowledge Centre for Pig Production, the scheme is aimed at larger projects with a value of about US$643,000. Producers will be eligible for a grant over a 25-year period of between US$1.29 and US$1.67 per pig. The subsidy is to cover additional environmental costs of new construction. (Source, Danish Crown)
 
Markets

On the European market, fresh legs have been sold at similar prices. Demand for loins resulted in marginally higher prices. Shoulder and manufacturing meat is sold "slowly" at lower prices. The bacon market remains unchanged. On third country markets, demand is stable for Russia, China and Japan.
 

 Danish Slaughterhouses - payments week commencing 13 May 2013

Slaughterhouse 

Danish Crown 

Tican 

Slaughter pigs (70.0 – 86.9 kg)

Euro 1.426

Euro 1.426

Difference to last week

unchanged

unchanged

Sows (Above 129.9 kg)

Euro 0.918

Euro 0.918

Difference to last week

-0.027

-0.027

Boars (Above 109.9 kg)

Euro 0.786

Euro 0.786

Difference to last week

unchanged

unchanged

  
 

Germany
 

Balanced market

Although the barbecue season is not in full swing yet, demand is improving and supplies are at a higher level. Prices for necks, shoulders and cutter bellies are moving up slightly. The market is still held by large stocks of frozen meat. Unchanged prices are the order of the day and no price rise is forecast before the end of the month. (Source, various)
  

Pork prices Hamburg Market Week commencing 13 May 2013

Cut name 

Price range (Euro/Kg) 

Round cut leg

2.20/2.40

Leg (boneless, rindless max fat level 3mm

3.00/3.25

Boneless Shoulder

2.40/2.60

Picnic Shoulder 

1.90/2.10

Collar

2.80/2.90

Belly (bone in, ex-breast)

2.40/2.55

Sheet Boned Belly (rindless)

2.25/2.45

Jowl

1.60/1.75

Half Pig Carcasses U class. 

1.94/2.02

 

  

Italy
 

Downward pressure on prices

Over the last two months, the Italian quotation has declined by US$0.30 per kilogramme. Lack of domestic demand for high value products, such as Parma ham, is dragging down leg prices. Loin prices are holding up. (Source, Mercolleida)
 
Murru is running out of liquidity
 
The important pork processor in Sardinia is expected to be in receivership soon. Employees have not been paid for five months. (Source, Alimentando)
 
More exports of Parma ham
 
Exports are partially compensating for the fall of domestic demand for Parma ham. Production of sliced ham was up 10% in 2012 to 72 million packs. Exports represented 73% of production with the UK and Germany, the top destinations. The US imported 520,000 hams (+17%) and two million packs of sliced ham. (Source, Suinicoltura)
 
Salame Felino IGP at last
 
The emblematic salami from the Parma province has gained its European recognition, joining 247 other Italian food products. (Source, Suinocoltura)
 
 

Spain
  

Pork prices Barcelona Market Week commencing 13 May 2013

Cut Name 

Price range (Euro/Kg)

Gerona Loin Chops

2.38/2.48

Loin Eye Muscle

3.23/3.26

Spare Ribs

2.93/2.96

Fillets

5.23/5.26

Round Cut Legs

2.68/2.71

Cooked Ham

2.45/2.52

Rindless Picnic Shoulder

1.69/1.72

Belly

2.40/2.43

Smoked Belly with Spare Rib Section Cut off

2.83/2.86

Shoulder chap or Head Jowls

1.13/1.16

Back Fat, Rindless

0.68/0.71

  
 

Finland
 

HK Scan is 100
 
Exactly 100 years ago, 20 farmers in Southwest Finland met and decided to build their own slaughter plant. This was the beginning of HK Scan, now the leader in the pork sector for Finland, Sweden and the Baltics. The company also has a strong Polish presence. (Source, HK Scan)
 
Sweden
 
Decline accelerating
  
The slaughter data for the first four months of 2013 shows that the decline trend in Swedish pork production is accelerating. In 2013, some 2.59 million pigs were slaughtered in Sweden, down from a peak of 3.36 million in 2004. (Source, Pig International)
 
"Rapeseed pork"

HK Scan has extended its Rypsiporsas concept created in Finland in 2011 under the Raspgris brand. Pigs are fed a high level of rapeseed. This treatment modifies the composition of the pork fat towards healthier unsaturated and omega-3 fatty acids. The pork is also said to be tastier. However, the meat may be unsuitable for the production of salami, an important outlet for pork in Finland and Sweden. Meanwhile,  the company reports good sales in an otherwise morose pork consumer market. Overall, company sales in Swedish have fallen from US$1.52 million in 2008 to US$1.3 million in 2012. (Source, HK Scan, our comment)
 
 

Hungary
 

CSF restrictions lifted
 
The European Commission has lifted the restrictions linked to the presence of Classical Swine Fever in local wild boars. Restrictions remain in place in Bulgaria, Romania and Latvia. (Source, European Commission)
 
 

Russia
 

New breeding complex

A huge pig-breeding complex is to be built in the Gatchinskiy region of Leninhradskaya oblast. The total cost of the project is estimated at US$161.2 million with a capacity of 220,000 pigs per year. The investor for the project is the VIAD Group of Companies. (Source, PigUa.info)
 
Pork prices on the rise
 
After months of selling with little or no margin, Russian pork producers are finally seeing firmer pork prices.  At the beginning of May, the average pork price increased to US$ 2.17-2.29 per kilogramme, liveweight. This increase is the first since August 2012, when Russia joined the WTO. Prior to August 2012, the average pork price peaked at US$2.87 per kilogramme. Aleksandr Nikitin, the Director of one of the biggest Russian meat market players, Miratorg, says that the main reason for the price increase is growing demand from consumers with the Easter fast lasting until May 5. Another reason, according to Sergey Yushin, the Head of the Executive Committee of the National Meat Association, is lower pork import. (Source, Kazakh-zerno.kz)
 
Hong Kong

 

Premium products
 
The territory has about 30 premium food stores. Among others, City Super offers Japanese Okinawa pork, Iberian pork, Danish organic pork and US organic pork. Please, keep in mind that due to the extraordinarily high rental costs for stores, supermarkets have a much higher gross margin than Europe, at about 50%. Premium pork is normally flown in. (Source, own)
 
 

China
 

Chinese wholesale prices week commencing 13 May 2013

　

Price (RMB/Kg)

£/Kg

change on week

Pig Carcase

18.59

1.99

-0.85%

 
  

New Zealand
 

 

More imports

With the market now open, Sweden may be the first EU country to export pork to New Zealand. (Source, own)
  

Venezuela 
 
Flourishing production
 
Pork production increased in 2012 by 10-12% to around 250,000 tonnes. A further increase of 60,000 tonnes is expected in 2013. (Source, Eurocarne)
 
  
Chile 
 
Import barriers
 
Local producers are requesting pork tariffs of 14.3% to limit imports. In 2012, some US$80 million worth of pork was imported into Chile and expectations for 2013 are similar. (Source, Eurocarne, our comment)
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