July 10, 2013
According to the Belgian Meat Office, Flanders' Agricultural Marketing Board (VLAM), its founding organisation, has presented its activities at an export conference last week. Being the fifth largest European pork exporter, Belgium has a very successful export business with 600,000 tonnes of pork, offal and fats shipped in 2012. Belgian exporters consist mainly of family businesses with their main markets in Eastern and Central Europe, including Germany, representing more than a third of total volumes. VLAM operate on a large scale, based on a business to business basis which is supported by a strong presence in the meat press, direct mailing and a large programme of trade missions and shows. They organise a well-attended round-table discussion for meat journalists annually. They have a budget of US$1.8m for pork promotion.
A new market report on Australia and an updated report on Ghana are available from the Export Office.
Denmark
3-star profits fall
Despite Finnish cold cuts company, 3-Star, seeing increased turnover by more than US$3.4 million in 2012, reported profits were the lowest recorded in the past five years. The weak result has been attributed to the high commodity prices in 2012, in the face of tight pork supplies. As in 2011, the profit will be distributed to the owners in Finland. (Source, Landbrugsavisen)
The Danish government has adopted a new welfare package for pigs. It consists of the following: from 2015, loose housing will be a legal requirement for the insemination and control areas in new buildings and must be implemented by 2035 in existing units; US$1.7 million will be allocated in 2013 and 2014 for the development of loose housing farrowing pens; and US$2.2 million will be allocated for measures making tail docking and castration redundant. (Source, Fødevareministeriet)
European fresh meat markets have remained stable. Recent price increases are now being consolidated, although legs have been sold at slightly higher prices. The market for collars and loins was unchanged. Shoulders and manufacturing meat have been sold steadily on a strained market. Sales to third-country markets were reported as stable.
|
Danish Slaughterhouses - payments week commencing 1 July 2013 | ||
|
Slaughterhouse |
Danish Crown |
Tican |
|
Slaughter pigs (70.0 – 86.9 kg) |
Euro 1.507 |
Euro 1.507 |
|
Difference to last week |
unchanged |
unchanged |
|
Sows (Above 129.9 kg) |
Euro 0.985 |
Euro 0.985 |
|
Difference to last week |
unchanged |
unchanged |
|
Boars (Above 109.9 kg) |
Euro 0.853 |
Euro 0.853 |
|
Difference to last week |
unchanged |
unchanged |
Social dumping
French daily newspaper, "Libération", has dedicated its cover page on its June 22 edition to the "pig war" declared in Europe. A four page article criticised social dumping exerted on the industry by the Germans and negative consequences of the Bolkestein directive. Several French MPs, supported by the President François Hollande, expressed their disagreement with the directive provoking of unfair competition within member states, which has resulted in job cuts in France. However, the tide may be turning in Germany as workers union request a minimum hourly income of US$11.00.
Processed pig offal account for a market of almost 63,000 tonnes. This market includes: 12,000 tonnes of pig head based products such as head pâté (fromage de tête in French or head cheese), rolled head and tongue; 2,000 tonnes of cooked feet, breaded feet and stuffed feet; almost 16,000 tonnes of black pudding; 12,700 tonnes of andouillettes (chitterling); 3,800 tonnes of Andouille (a delicacy exclusively made of pork digestive organs); and 18,000 tonnes of pâtés and other dishes made using pork liver (fine and thick coarse) and 900 tonnes of liver confit (liver preserved in fat).
Pigs
|
Pork prices RUNGIS week commencing 1 July 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Back fat, rind-on |
0.60 |
|
Trimmings |
1.19 |
|
Leg |
2.66 |
|
Loin including chump |
2.95 |
|
Loin excluding chump |
2.76 |
|
Belly extra without trimmings |
2.69 |
Germany
Irritation about price reporting
Many market participants are bewildered over the current price reporting. Last week, the Verband Deutscher Viehvermarkter (VDV), with about 20 sellers and 200,000 pigs per week, issued a market price for the first time in addition to the recommended price issued by VEZG. Meanwhile, many abattoirs pay a lower third price. As a result, prices range from US$2.12/kg from some abattoirs to US$2.15 for VDV and €2.17 for VEZG. One of the reasons for the range of prices is the fact that meat demand and the availability of slaughter pigs are low. The holiday season and the cooler weather may dampen demand further and lead to weaker prices. (Source, own)
Between 2011 and 2012, organic meat sales rose by a massive 18%, processed meat products by 8% and poultry by 11%, according to both Nielsen and GfK. Supermarkets did not benefit from the growth but smaller traders did. Germany accounts for more than half of organic pork sales in Europe. (Source, AFZ)
|
Pork prices Hamburg Market Week commencing 1 July 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Round cut leg |
2.35/2.45 |
|
Leg (boneless, rindless max fat level 3mm |
3.15/3.25 |
|
Boneless Shoulder |
2.50/2.70 |
|
Picnic Shoulder |
2.00/2.20 |
|
Collar |
2.70/2.85 |
|
Belly (bone in, ex-breast) |
2.45/2.65 |
|
Sheet Boned Belly (rindless) |
2.25/2.50 |
|
Jowl |
1.50/1.70 |
|
Half Pig Carcasses U class. |
2.02/2.10 |
Spain
Edatesa is taking over Grupo Cárnica 7 Islas, the main retail packer for Mercadona in the Canarias. Edatesa employs 85 people and processes 5,500 tonnes of pork, beef and lamb per year for a turnover of US$38.3 million and will now effectively control the meat trade on the island. (Source, Alimarket)
The pork and beef processor, with a capacity for 100,000 legs for dry-curing, has been placed in receivership. (Source, Alimarket)
A new logo has been unveiled by the Ministry of Agriculture to promote products from native breeds. (Source: Eurocarne)
|
Pork prices Barcelona Market Week commencing 1 July 2013 | |
|
Cut Name |
Price range (Euro/Kg) |
|
Gerona Loin Chops |
2.68/2.71 |
|
Loin Eye Muscle |
3.68/3.71 |
|
Spare Ribs |
3.08/3.11 |
|
Fillets |
5.28/5.31 |
|
Round Cut Legs |
3.03/3.06 |
|
Cooked Ham |
2.64/2.67 |
|
Rindless Picnic Shoulder |
1.69/1.72 |
|
Belly |
2.37/2.40 |
|
Smoked Belly with Spare Rib Section Cut off |
2.80/2.83 |
|
Shoulder chap or Head Jowls |
1.13/1.16 |
|
Back Fat, Rindless |
0.68/0.71 |
Russia
New slaughter rules
From 1 July, it is only legal to sell meat from animals slaughtered in abattoirs in the territory of the CU (Russia, Belarus and Kazakhstan). Animals slaughtered in private households may only be consumed in those households. This may result in a deficit of meat on the market since most regions do not have the necessary number abattoirs to meet demand. (Source, PigUa.info)
The construction of a pig-breeding complex with a total production capacity of 213,000 pigs began in the Bolshemurtinskiy region of Krasnoyarskiy Krai in Russia, with a total investment of US$167 million. The complex is expected to reach full capacity in 2014. (Source, PigUa.info)
Belarus
USA
Towards less antibiotics
Mark Carney takes over as Governor of the Bank of England (BOE) while the Fed has been actively discussing exit strategies to their Quantitative Easing policy. This pairing is going to come down to the battle of the central banks. As it stands, the Fed has provided most clarity and if the economy in the US continue on course, a stronger USD to the year end is expected. The easing of the Fed monetary policy may also drive GBP-USD back down towards 1.4800. (Source: Clear Currency Ltd.)
EU
EUR-GBP forecast: Year End 0.8400
The EUR and GBP have been trading in a range between 0.8400 and 0.8600 for most of the year. The Eurozone continues to lag behind the UK in its recovery and despite forecasts for improved growth in the second half of 2013 for the single-currency region, the UK may outpace the Eurozone in recovery and as such, causing the pound to drop to 0.8400. European vulnerabilities may cause the currency to move back below this level. However, on-going concerns are likely to halt any EUR advance. (Source, Clear Currency Ltd.)
Philippines
Pig production in 2013 is unchanged against 2012, according to the Bureau of Agricultural Statistics. Demand for processed meat products, such as tocino and longganisa, and roast hogs (lechon) is high, particularly in Luzon and Metro Manila pushing pig prices upward by 10.3% compared to a year ago. (Source, Asian Pork)
China
|
Chinese wholesale prices week commencing 1 July 2013 | |||
|
|
Price (RMB/Kg) |
£/Kg |
change on week |
|
Pig Carcases |
20.52 |
2.23 |
1.63% |
|
Source: BOACL | |||
|
Prices collected from wholesale markets in 36 medium and large Chinese cities | |||
Vietnam
Sagri's expansion
State-owned Saigon Agriculture Incorporation (Sagri) is doubling its GGP farm to 1,200 sows in Thu Duc. The farm will produce 14,400 gilts with the majority going to its two GP farms in Dong Hiep and Phuoc Long, which in turn will produce 172,000 parent gilts per year. This production base should be able to supply three million pigs to Ho Chi Minh City. The company plans to buy Duroc, Large White and Landrace from the US, Piétrain from Belgium and Landrace from Denmark. (Source, Asian Pork)
