May 30, 2013
BPEX Export Bulletin - 24 May 2013 (Week 21)
About 1,900 tonnes of sausages were exported in March, a figure which is twice the amount in 2012. The total amount for the first quarter is 3,800 tonnes (+73% on-year), which means as much as 10,000 tonnes of UK sausages could be reached by the end of 2013. In particular, Hong Kong was very receptive to the offer from the three producers who presented products at Hofex two weeks ago.
For the first quarter, 68,000 tonnes of pork products were exported. Pork shipments were 23% higher on-year, at 43,400 tonnes, and offal exports increased by 73% to 15,700 tonnes.
Export Health Certificates, 1246EHC (pig exports to the Republic of Korea) and 1171EHC, (pig product and pork exports to the Republic of Korea) have been modified. The certificates remain as "Agreed". They were revised to reflect the current Korean import protocols for the above commodities with regard to freedom form disease.
Denmark
Fewer finished pigs
While the number of sows has increased, there are fewer finishing pigs in Denmark. By April 1 2013, the total pig population remained stable at around 12 million head, according to Statistics Denmark. The data show the trend of increasing piglet exports as the number of finished pigs fell by 1.5%, to almost 3.1 million pigs, while the number of piglets increased by 3%. (source, Landbrugsavisen).
Lower live exports to Russia
According to Russian statistics, Denmark was the only source of live pig imports to Russia in the first quarter of 2013. Russian live imports decreased sharply in 2012 and have virtually ceased in 2013. This is despite Russian import duties for live pigs being lowered dramatically due to Russian WTO membership in 2012. Danish exports of finished pigs to Russia totalled 3,500 head compared with 10,700 in the same three-month period last year. Breeding pig shipments halved to 1,500 head this year. (Source, Markedsnyt for Svinekoed/Market news for Pigmeat).
Market
European markets are generally stable although there has been some positive movement on markets. Hams continue to be sold at slightly higher prices; loins and necks are sold at similar prices on a stable market. A favourable weather for the barbecue season has not arrived in Northern Europe yet, resulting in the continuation of a tough market for manufacturing meat, shoulders and trimmings. Sales of bacon to the UK are stable. For markets further afield, Russia remains calm while volumes to China are reported to have increased in terms of volume, albeit at lower prices. Trade to Japan is stable.
|
Danish Slaughterhouses - payments week commencing May 20 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 |
unchanged |
unchanged |
|
Boars (Above 109.9 kg) |
Euro 0.786 |
Euro 0.786 |
|
Difference to last week |
unchanged |
unchanged |
France
Labour costs
The French institute, IFIP, has attempted to compare labour costs between three European countries: France, Spain and Germany. This is a difficult task as costs depend on the type of cutting plant. Slaughtering costs vary between US$0.08 and US$0.16 per kilogramme. Cutting costs roughly vary between US$0.13 and US$0.65 per kilogramme. Labour accounts for between 71% and 76% of total costs.
|
Labour cost data | |||
|
Country |
France |
Spain |
Germany |
|
Hourly labour cost - minimum (€/kg) |
16 |
12 |
5 |
|
Hourly labour cost- maximum (€/kg) |
25 |
18 |
20 |
|
Average weekly working time- (hours per week) |
35 |
40 |
37.5 |
|
Average gross wage - (€/month) |
1,365 |
748 |
unknown |
|
source: IFIP | |||
Positive Fleury-Michon's results
In 2012, Fleury-Michon improved their net margin by 0.6% to 2.6%. Three areas report growth: retail, up 9% to US$771.2 million; international, up 6.8% to US$62 million; and food service, up 11.1% to US$63 million.
Market
Pigs: Some firmness was reported in French markets last week. Other markets were stable in Europe. High stocks, resulting from low exports and weak consumption, due to the continual poor weather and economic crisis in Europe, are applying downward pressure on the market.
Piglets: The European market remained low during the second half of May. Nevertheless, prices appear to have remained stable or dropped marginally.
|
Pork prices RUNGIS week commencing 20 May 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Back fat, rind-on |
0.60 |
|
Trimmings |
1.20 |
|
Leg |
2.34 |
|
Loin including chump |
3.07 |
|
Loin excluding chump |
2.66 |
|
Belly extra without trimmings |
2.98 |
Germany
75 years of meat research
The world famous Kulmbach Institute celebrates its 75th birthday this year. The Kulmbacher Woche, the annual week-long meeting on meat research marked its 48th edition. (Source, AFZ)
|
Pork prices Hamburg Market Week commencing 20 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 |
2.70/2.90 |
|
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
Exports star at Tutto Foods
The largest Italian food exhibition took place this week. The meat presence was once again substantial, much was made of the strong export progress of dry cured meats and salami whilst the domestic market stagnates. This is a situation similar to Spain, although, for the latter, fresh and frozen pork exports, rather than processed products, dominate. Hundreds of buyers were invited by the Italian export institute. (Source, own)
|
Pork prices Barcelona Market Week commencing 20 May 2013 | |
|
Cut Name |
Price range (Euro/Kg) |
|
Gerona Loin Chops |
2.38/2.41 |
|
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 |
USA
Premium Standard Farms renamed
The large Southern pig integrator, acquired by Smithfield Foods some time ago, has changed its name to Murphy Brown of Missouri, reflecting greater alignment with the Smithfield business. The head office has been moved to Murphy Brown's office in Princeton. (Source, Premium Standard Farms)
Canada
Herd stabilisation?
Professor Hans-Wilhem Windhorst of Vicha University, a noted analyst on pork, believes that the Canadian pig herd is now stabilising at 1.3 million sows, following a period of decline that commenced in 2006. Still, the number of pig holdings has halved over the last six years to 6,780 but now seems to have evened out. The loss has been greater in Western Canada than in Quebec and Ontario. Pork consumption peaked in 1999 at 22.9kg but has now fallen to around 16kg per capita per year. The industry has benefited from two subsidy programmes, the latest starting in 2009. Canada remains an export-focused industry with a high dependence on the US. (Source, Fleischwirtschaft)
China
|
Chinese wholesale prices week commencing 20 May 2013 | |||
|
  |
Price (RMB/Kg) |
£/Kg |
change on week |
|
Pig Carcase |
18.49 |
2.00 |
-0.54% |
|
Source: BOACL | |||
|
Prices collected from wholesale markets in 36 medium and large Chinese cities | |||
Russia
Polish pork detained
The officers of Rosselkhoznadzor, in Magadan, banned 25 tonnes of frozen pork imports from Poland as the labels did not include the Russian translation. According to international veterinary requirements, the exporter should provide information in the language of the destination country. Currently, the pork is being held while the authorities will decide to either return it to the country of origin or clear it for import. (Source, Pigua.info)
Ukraine
Higher production
Recent major investments in the pig-breeding industry have resulted in higher pork production in the Ukraine during the January-to-April period. During the four-month period, producers sold 154,800 tonnes (liveweight) to processors, 18% higher than in the corresponding period a year ago. The population of pigs, on May 1, was 3.7 million head, 8% higher on-year. (Source, Furazh.ru)
Kazakhstan
Nepal










