July 16, 2013
BPEX Export Bulletin- 12 July 2013 (Week 28)
The gloomy European pork market is benefiting form the good weather as demand for barbecue meats runs high. Wholesale prices have already risen in response and further increases are not excluded due to the tight supplies.
France
Bazin takes over Iller
French processor, André Bazin, has been chosen by the Courts to take over the Iller prepared meal ingredients business in Altorf (Bas-Rhin), recently placed in receivership. The 'flamed tarts' manufacturing unit is separate and should be taken over by Pierre Schmidt. (Source, own)
Gad demise?
Rumors confirmed the date of August 20 for the closure of GAD abattoir in Lampaul-Guimiliau (Finistère). Some 800 direct jobs are involved at the abattoir, 64 jobs at the charcuterie processing site in St Nazaire (Loire Atlantique), 54 at the head office in Morlaix (Finistère) and 4,000 indirect jobs are under threat. The Cecab group (major shareholder with 65%) will transfer its slaughtering activity in Josselin (Morbihan), creating 343 jobs and 400 jobs could be transferred to the Cecab group. (Source, own)
Cooperl is positive
Cooperl, the French pork leader, posted a result of US$7.8 million in 2012 for a turnover of US$2.7 billion. It plans to invest US$65.4 million in industrial sites in 2013. (Source, Cooperl)
Market data for week 27
Pigs
Last Monday, the base price was higher by 0.2 cent in Plérin. A higher demand due to sunny weather reassured the abattoirs. The Marché du porc Breton said that the balance offers/demand is more favourable for suppliers because offers are low.
Piglets
There is still no increase in the price of charcuterie pigs. Fatteners are very prudent. Prices hover between a slight reduction and firmness.
Cuts
At Rungis, June was good for prices. Between May and June, prices were higher +2.1 % and +15.3%. Only the price for belly didn't progress. 56 TMP price is +3.6 %. Margins are still low due to the previous months
|
Pork prices Rungis - Week commencing 8 July 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Back fat, rind-on |
0,60 |
|
Trimmings |
1,42 |
|
Leg |
2,61 |
|
Loin including chump |
3,09 |
|
Loin excluding chump |
2,80 |
|
Belly extra without trimmings |
2,80 |
Denmark
Friland wants to sell organic pork in China
Over the last six months, several Chinese customers have visited Friland and showed interest in Danish organic pork. So far, Friland has developed small exports to Hong Kong due to the requirements of the Chinese organic certification, COFCC, but should soon get export approval. (Source, Landbrugsavisen).
Market
In the European market, the summer weather is bringing a positive mood. Legs are traded at slightly increasing prices. Trade and sales of collars and loins are stable while the market for manufacturing meat is a little slow. Third country markets remain unchanged.
|
Danish Slaughterhouses - payments week commencing 8 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 |
Netherlands
Zwanenberg aims high
The Dutch meat group is investing US$26.1 million in a new meat processing plant in Laar, Germany, near the Dutch border. The group is aiming to produce chilled meat snacks for the German market using high pressure technology. Managing director, Ronald Lotgerink, says well-known operator, Frans Stortelder, will lead the German project seconded by Marteen Elsinga as business manager. (Source, Zwanenberg)
Deadline for stalls
The Dutch government has given the deadline of August 1 for the conversion of the last sown stalls. There are now very few laggards. (Source, Boerderij Vandaag)
Belgium
Good results for KI-centra
The Flemish insemination centre increased its volumes to 2.6 million doses in 2012 (+5%). Exports are up 80% to 135,000 doses. (Source, Boerderij Vandaag)
Ireland
Timid price rises
The pig prices have risen in the Republic but the increase is a paltry 5-6% on 2012. Still, Irish prices hover around Northern European prices despite the higher Irish feed prices. (Source, Irish Farmers' Journal)
Slaughter share
Edenderry now slaughters 29% of the national slaughter rate, 25% for Roscrea (both are owned by Rosderra), 17% for Dawn, 12% for Stauntons, 8% for McCarron and 6% for Green Pastures.(Source, Irish Farmers' Journal)
Higher imports from the UK
In the first quarter, pork imports from the UK rose 58% to 11,677 tonnes. Still, exports to the UK increased by 23% to 75,355 tonnes. Live exports to Northern Ireland fell sharply. (Source, Irish Farmers' Journal)
More Irish pork products off the shelf
The percentage of Irish labelled products has risen back to 90% for fresh pork, while the figure for bacon rashers has reached the record level of 80%. (Source, Irish Farmers Journal).
Hermitage's woes
Following the health breakdown at the main artificial insemination (AI) centre, porcine reproductive and respiratory syndrome (PRRS) contaminated semen infected the Freneystown's 1,100 sows nucleus unit that had just benefited in April from a US$7.8 million refit. The whole nucleus is now been depopulated before repopulation occurs again. This is the first health breakdown since the beginning of the company in 1958. (Source, Hermitage)
Germany
Increasing demand for barbecue meat
The warm temperatures are lifting demand for barbecue meat. After several weeks of large slaughter, the number of slaughter pigs is falling and prices are rising as a result. Lower availability of slaughter pigs is likely for the coming weeks due to seasonal trends. Although the upcoming holiday season may reduce the demand for meat, the current market situation indicates at least unchanged prices and some further rises are possible. (Source, own)
Rebound confirmed
Following the small fall in 2012, German pork production rebounded to 1.39 million tonnes in the first quarter (+1.4% against the same period of 2012), representing 69% of German meat production. On May 3, there were 28,000 pig farms (-2,300), 27.4 million pigs (-2.5%) and 2.037 million sows (-80,000). (Source, Fleischwirtschaft, AFZ)
Reinert's new snack
The famous Bärchenwurst (little bear sausage) is now sold as meat snack. The company counts 1,400 staff, seven factories, including two in Romania and France, and a turnover of US$457 million, 36% of which are export sales. (Source, AFZ)
Greece
Import dependence
The latest trade figures show that only 18.25% of beef, 28.44% of pork, and 81.85% of the sheep and goat meat in the market, are of Greek origin.
Good news at least, for tourists too
VAT on restaurant bills is falling from 23% to 13% as Greece reached an agreement with debtors. This punitive level introduced in 2011 was affecting the large Greek food service sector. (Source, various)
Spain
Less pork
Less pork
Production between January and April has fallen by 2.6% against the same period of 2012, according to the Ministry of Agriculture. (Source, Eurocarne)
Copiso progress
The co-operative and integrator in Northern Castilla has increased its output to 332,000 pigs (+4.2%). These numbers do not include the production of ICPOR Soria which is treated independently. Copiso has also reached an agreement for the joint production of 70,000 pigs per year with Cárnicas Villar. Total turnover has reached US$301 million. (Source, Eurocarne)
Italy
Hermitage's lead
The Irish company, whose Italian base is Reggio de Emilia, now has 450 boars in stud, the highest number in Italy. These include Italian boars designed for dry-cured ham production. The company operates a special Best Linear Unbiased Prediction (BLUP) programme for these boars. (Source, Hermitage)
Ukraine
Axzon's bid for Kalyta
The IFC-backed Danish holding, Axzon, which already owns Danosha, the second largest Ukrainian producer of pork, is planning on buying pig-breeding complex Agrokombinat Kalyta, which is a part of the Smart-Holding complex. The deal is estimated at US$17.3 million (Source, PigUa.info)
Increase of pig population
As of July 1, 2013, the population of pigs in Ukraine is 8.2 million (+4.6%) compared to the same period last year, with the larger units progressing more than small private holdings. (Source, PigUa.info)
Russia
The European meat trade organisation, UECBV, in Brussels, reports that director Sergei Dankvert, from the Russian veterinary service, Rosselkhoznadzor, has expressed grave concerns regarding the traceability of meat and meat products exported from the EU to Russia, in a letter to the Deputy Director of DG Sanco, Ladislav Miko. Inspections by inspectors from Rosselkhoznadzor showed that both meat and dairy products exported to Russia from the EU originated from non-certified companies. Greece is particularly targeted, but Germany, Lithuania and the Netherlands are also quoted. Greece has been asked for a voluntary cessation of exports for the time being. UECBV adds that the Commission is looking into this matter very seriously, as there is a risk of a total Russian ban on imports of meat and meat products from the whole EU. (Source, UECBV).
Pork imports continues to decrease
To June 23, the volume of chilled pork imports to Russia amounted to 13,300 tonnes (5.8% less than during the same period in 2012), the volume of frozen pork import was 248,200 tonnes (-18% compared to the same period in 2012). On June 23, the average price for pig half-carcase was US$3.26/kg. (meatinfo.ru)
USA
From crisis to crisis
Respected analyst, Pr. Hans-Wilhem Windhorst of Vichta University, Germany, believes that the conjunction of high feed prices, sluggish home market and lower export prices does not bode well for US production. Investment has fallen, particularly from the largest integrators. Forecasts for 2013 show a fall of 6% of production. (Source, Fleischwirtschaft)
Chile
Cheaper feed needed
Cheaper feed needed
Asprocer, the pig producers' association, has asked the Chilean government to lower import taxes for corn under a safeguard clause in order to maintain competiveness. (Source, Eurocarne)
Japan
Increase of pork consumption
Pork is the main beneficiary of the fall of beef and fish consumption. Consumption volumes have increased by 354,000 tonnes between 2000 and 2013. (Source, US Meat Exports Federation)
China
Further production growth expected
Even with stable consumption per capita, the natural increase of population means that Chinese pork consumption will rise from 53.35 million/tonne in 2012 to 56.70 million/tonne in 2020. From memory, consumption was only 39.66 million/tonne in 2000. (Source, Beijing Pro-agri Communication)
Lack of profitability
Chinese production has become unprofitable since spring 2012, mainly due to high feed prices. The consequence is that imports should rise in 2014. (Source, Beijing Pro-agri Communication)
Evolution of consumption
Currently, 68% of the pork is sold 'hot' in wet markets (80% of Chinese prefer buying it in this form), 17% chilled in supermarkets (10% prefer buying pork there) and 15% processed. By 2020, only 50% of the pork will be sold in wet markets, 30% in supermarkets and 20% processed. Pork still represents 63% of total meat consumption and farmed fish, rather than chicken, is the major competitor. (Source, Beijing Pro-agri Communication)
