CAHE was again competitive with a strong presence from key pig genetic exporters, particularly from Denmark and the Netherlands. The British stand was kept very busy, with breeders reporting good business. BPEX presented a paper to the World Pig Forum. Good shipments of gilts and boars to China is expected to happen in 2013.
May 31 is the deadline for the implementation of the porcine reproductive and respiratory syndrome virus (PRRS) measures on pork exports to South Africa. BPEX, in collaboration with Defra, have worked hard in recent months in order to produce a list of PRRS-free cuts acceptable to Australia's Department of Agriculture, Fisheries and Forestry (DAFF). The Export Health Certificate for PRRS-free products is being revised accordingly under 7579EHC and a new certificate for pork for further processing has been made available under the revised 7319EHC.
A pork consignment to the US was rejected because the identification number was not followed by the letter "A", thus the consignment did not match the documentation. Over the last couple of weeks, New Zealand meat exports to China were blocked as the authorities of New Zealand changed the title of the Ministry on the top of some certificates.
US farmers will be pleased, as Chinese ownership opens the door to greater exports to China. It is an important and welcome signal, that Chinese imports are here to stay. Imports are predicted to increase from the current 2% of total Chinese consumption, excluding offal. Despite formidable investment, domestic Chinese production continues to face major challenges. In this sense, British pork producers should welcome the deal.
Food safety, a given in the Western World, is a major issue in China, from dairy infant formula to poultry and pork. Access to safe, quality pork is part of the deal. Shuanghui was previously affected by a major scandal two years ago. The association with Smithfield Foods, already the largest pork exporter to China, will benefit from the association of a foreign name on th Shuanghui brand.
Both producers and processors are affected by rising costs of raw material for pig feed, which have increased by 31%. Retailers refuse to raise prices. Competition, mainly from Germany and Spain, is another threat to the French industry. Focus on development of Viande Porcine Française and increased export development are both seen as key elements to improve returns. The recent visit to China by President François Hollande should strengthen France's position on the Chinese market, notably for stomachs, pig ears, trotters and other parts highly valued on Asian markets.
VPF everywhere
Following a declaration of support from the Minister of Agriculture, Stéphane Le Foll, French pig producers are increasing pressure on the French government. On May 14, the Minister confirmed his wish to see prices improve and one retailer, Système U, agreed to increase prices as long as it is guaranteed to be passed on to the producer. Jean-Michel Serres, President of the Pig Producers Association, mentioned that Intermarché would approve price increases, at least on fresh pig meat. Following this, producers have decided to make their point and are increasing store checks to ensure the visibility of the VPF logo, not only on standard brands but also on retailers' own brands.
Retailers/cooperatives engage in debate
Markets
Piglets: The European market remained low at the beginning of the week. Demand is stable and supplies are also very stable. The market is reported good for pork butchers and FNP-FNCBV prices. As a result, prices increased by US$0.02 for 25kg pigs and US$0.37 for post-weaning piglets.
|
Pork prices Rungis - Week commencing 27 May 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Back fat, rind-on |
0,85 |
|
Trimmings |
1,73 |
|
Leg |
2,77 |
|
Loin including chump |
3,17 |
|
Loin excluding chump |
2,95 |
|
Belly extra without trimmings |
2,85 |
Denmark
The six leading Danish agricultural companies with Eastern European investments have earned nearly US$177.1 million (after tax) over the past five years in Eastern European countries. The companies have increased revenue by between 60% and 500% over the past five years, according to an industry survey. Almost US$85.3 million, or half of the total revenue, stems from the largest and most successful company, the Axzon subsidiary Poland Invest PLC, which produces pigs on huge farms in Poland and the Ukraine. Axzon has its own slaughterhouse in Poland, Poldanor. Poland Invest has increased both revenue and profit. Revenue increased, from US$118.1 million in 2008, to US$193 million in 2012, giving a bottom line profit of US$41 million. Virtually, all the profit is reinvested annually. (Source, Berlingske).
On EU markets, fresh hams and loins have been traded at stable levels, while the trade for shoulders and manufacturing meat remains under pressure. For necks and tenderloins, trade has remained stable at similar price levels. The UK bacon market remains quiet with stable volumes being traded. For markets outside Europe, steady sales have been reported to China and Japan, while trade to Russia is improving. However, shipments to the Russian market remain lower than year-earlier volumes.
|
Danish Slaughterhouses - payments week commencing 27 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 |
unchanged |
unchanged |
|
Boars (Above 109.9 kg) |
Euro 0.786 |
Euro 0.786 |
|
Difference to last week |
unchanged |
unchanged |
Germany
Clear overcapacity
Bank ABN Amro points out overcapacity in the European pig slaughter sector, particularly in Germany. With stagnant or slightly decreasing consumption and production, primary processors find it hard to compete against players in Brazil and the US which operate with higher margins. (Source, Boerderij Vandaag)
Minimum wage
Niedersachsen, the major pig producing region of Germany is aiming to implement a minimum wage for the sector of US$11.15 /hour. The German meat sector has been accused, as recently as April, by the Belgians of unfair competition by employing East European workers on low wages. (Source, Boerderij Vandaag)
IFFA progress
The world largest meat technology fair that takes place every three years in Frankfurt attracted a record audience of 60,000 visitors from 142 countries. (Source, AFZ)
|
Pork prices Hamburg Market Week commencing 27 May 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Round cut leg |
2.20/2.35 |
|
Leg (boneless, rindless max fat level 3mm |
3.00/3.25 |
|
Boneless Shoulder |
2.40/2.60 |
|
Picnic Shoulder |
1.90/2.10 |
|
Collar |
2.55/2.75 |
|
Belly (bone in, ex-breast) |
2.40/2.75 |
|
Sheet Boned Belly (rindless) |
2.25/2.45 |
|
Jowl |
1.55/1.70 |
|
Half Pig Carcasses U class. |
1.94/2.02 |
Netherlands
Sustainable pork specification unclear
Researchers from LTO and the pig producers' association NVV are unclear on the way forward for sustainable pork. A rise in supermarket prices with a new specification is likely. (Source, Boerderij Vandaag)
Belgium
Italy
YouTube hit
Fiorucci has produced a fun video hit, Potere e salumi, viewed by 2.3 million Italians, based on a theme regarding corruption and salami. A must see at: http://www.youtube.com/watch feature=player_detailpage&v=KH7mjy6zSXE
Spain
|
Pork prices Barcelona Market Week commencing 27 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
Dominican Republic
Ukraine
Arthur Loza, President of the Ukraine Pig-breeders Association, has forecasted that slaughter pig prices should remain stable in the Ukraine throughout 2013 at between US$2.45/kg and US$2.58/kg. He commented that, if Brazilian pork imports resume, the price could drop to US$2.33/kg. Market conditions for the development of pig breeding are favourable due to the positive harvest forecast which will result in cheaper feed. The Association estimates Ukrainian pork production will reach 750,000 tonnes in 2013 compared with 730,000 tonnes in 2012. (Source, Pigua.info)
Pig-breeding industry keeps breaking the records
The production of pork within the corporate sector in Russia has increased during the January-to-April period by 134,200 tonnes, or 30%, compared with the same period a year ago. The main driver for the increase has been the launch of new production facilities following the completion of many investment projects. At the same time, imported pork volumes remain high, despite being lower than year-earlier levels, totalling 310,000 tonnes during the four-month period. (Source, Pigua.info)
US imports
Expansion in the West
Sichuan Giastar Group is developing a production base for 200,000 pigs and 200,000 broilers annually. Economic developments are increasingly focused in the poorer West of China with growth rates of 15% to 17% per year against 6% to 8% in the East. (Source, CN Agri)
|
Chinese wholesale prices week commencing 27 May 2013 | |||
|
　 |
Price (RMB/Kg) |
£/Kg |
change on week |
|
Pig Carcase |
18.82 |
2.02 |
1.78% |
|
Source: BOACL | |||
|
Prices collected from wholesale markets in 36 medium and large Chinese cities | |||
