July 19, 2012

 

BPEX Export Bulletin - Exports of UK pig offal grows on rising market demand (Week 28, July 2012)

 

 

While pork exports are rising steadily, the growth of exports of British pig offal is rising much faster. Exports are up 39% so far this year to 3,200 tonnes in April alone.

 

BPEX Marketing Activities

 

We have unveiled our marketing programme for the second part of the year. Events will take place in collaboration with EBLEX:

  For more details, please contact the export office.

 

Official notice on policy changes

 

Please note that the Department of Agriculture, Food and Forestry of South Africa (DAFF) has undertaken to suspend the implementation of any change in the existing policy regarding the importation of uncooked pork and uncooked pork products from countries that are not free from PRRS pending the finalisation of appeals made against the new legislation.

 

 

BELGIUM

 

DELHAIZE STOPS BUYING CASTRATED PIGS

 

The major Belgian retailer is the latest to pledge to ban castration. This will take place from 1 June 2013. (Source: Food Holland)

 

 

CHINA

 

CHANGES IN PORK CONSUMPTION

 

In a new article published in Meat Science by Nanjing Agricultural University, chilled pork sales are forecast to be reach 30%,  frozen pork sales 20% whilst 'wet market' sales will be down to 50% by 2015. (Source: Meat Science)

 

 

DENMARK

 

MARKET

 

On the European markets, there is stable demand for legs and front parts. Prices remain unchanged. There is a fine demand for loins, collars and tenderloin. The British bacon market is stable too. On third country markets, there are good orders from Russia, while China is slowing down due to a high number of domestic slaughtering. The market in Japan remains stable. (Sources: Danish Crown, Tican, Danish Food Council).

 

FEWER BRUISES ON PIGS

 

New figures from the Food Administration show that at the meat control performed by the vets at Danish slaughterhouses the number of bruises has reduced from 0.02% in 2010 to 0.01% in mid-2012. It corresponds to more than 200 pigs per million having bruises in 2010, whereas the number was below 100 pigs per million in June 2012. The improved animal welfare is due to the fact that the sector acted quickly and directly and followed up on producers delivering pigs with bruises. (Source: Landbrugsavisen)

 

USE OF ANTIBIOTICS DOWN

 

The consumption of the broad-spectrum antibiotic, Cephalosporin, in Danish pig farms dropped over the last three years. In 2009, Danish pig producers used a total of 99kg of Cephalosporin. The following year the amount decreased to 49 kilos and in 2011 just one kilo was used in pig farming. This is a very positive development since the resistance to cephalosporin is a strongly increasing problem both with humans and animals, informs professor Frank Moller Aarestrup of DTU Food Institute. It is not just the consumption of Cephalosporin, which decreased. According to figures from Vetstat, the total consumption of antibiotics in Danish pig production decreased by approximately one fifth from 2010 to 2011. Also, in Dutch livestock production the use of antibiotics is decreasing. The total sale of antibiotics to Dutch farmers decreased from 495 tonnes in 2009 to 338 tonnes in 2011, according to data gathered at Wageningen University. It corresponds to a decrease of 32%. (Source: Foodcultura)

 

Danish Slaughterhouses - payments week commencing July 9 2012
Slaughterhouses	Danish Crown and Tican
Slaughter pigs (70.0 - 86.9 kg)	Euro 1.506
Difference to last week	Unchanged
Sows (Above 129.9 kg)	Euro 0.970
Difference to last week	-0.053
Boars (Above 109.9 kg)	Euro 0.840
Difference to last week	-0.053

  

 

FRANCE

 

CONTRASTS

 

The growth of activity of Gatine Viandes, the Intermarché pig processing plant is spectacular; since 2006 the plant has continuously grown and in 2011 the increase of activity reached +14.9%. This is also the case for another integrated pig processing plant: Kerméné (Leclerc) with 3.5% growth last year compared with 2010. In the private sector only the joint venture Tradival (Orléans Viandes + Forez Porc) managed to record a significant growth : + 8.9%, when Cooperl (the leader) is in a stable situation : +0.1%. All other groups show a small decrease of activities: Bigard -1.9%, GAD – 4.8%, Jean Floch (Bernard + Loudéac Viandes) -4.2%, Abera -0.8% and AIM -1.1%. The threat comes from Spain where the first ten pig processing plants representing 40% of total kill have known an average growth of 9.8%.

 

€1.50/kg

 

This is the price requested by French producers to cover the increasing feed costs and the investments required by compliance with EU animal welfare rules. The French National Pig Federation (FNP) is also calling for a release of the pressure on prices exerted by French retailers.

 

PIGS

 

The week begins with a slowing down of the basic 56 TMP price (-0.7 cent) partially due to the drop in German prices which is not good for the competitiveness of the French meat on Export markets. Due to the bad weather, consumption in France is low.

 

PIGLETS

 

Prices are stable on the French market even if they straighten punctually according to the offer/demand noticed in every region. To be noted that there is a slight increase for the FNP-FNCBV indices; + 1 cent for 25kg and + 26 cents for 8kg.

 

CUTS

 

The French market follows its rhythm of the seasons. Sales are waking up in the holiday regions where a wave of consumers is expected after July 14th. At the same time, the weather is still cold and rainy and offers are sufficient to cover demands.

 

 

Germany

 

MARKET

 

On the domestic market, margins are disappointing and orders placed don't reach "normal levels". On the retail side, sales are subdued due to prices having increased. Also, the continuously inconsistent weather conditions and the beginning of the summer holidays in some regions do impact on the trade. (Source: AMI)

 

Pork prices Hamburg Market Week commencing July 9 2012
Cut name	Price range (Euro/Kg)
Round cut leg	2,10/2,25
Leg (boneless, rindless max fat level 3mm	2,90/3,10
Boneless Shoulder	2,35/2,50
Picnic Shoulder	1,95/2,10
Collar	2,65/2,80
Belly (bone in, ex-breast)	2,15/2,30
Sheet Boned Belly (rindless)	1,90/2,35
Jowl	1,40/1,50
Half Pig Carcasses U class.	2,05/2,15

 

 

NETHERLANDS

 

MILIEUKEUR PRODUCTION EXPANDS

 

Milieukeur, a group of 250 farmers producing pork according to sustainable production, has been chosen by Jumbo supermarkets for its core pork offer. Thus, Jumbo still maintains its lead on 'ethical' meat production ahead of Albert Heijn. In another announcement, Milieukeur is splitting from Keten Duurzaam Varkensvlees, another sustainable pork organisation. Milieukeur is independently audited by CGD. (Source: Food Holland)

 

 

RUSSIA

 

ASF

 

According to Rosselkhoznadzor, there were 23 outbreaks of ASF registered within the territory of the Russian Federation between January 1 and July 6, 2012. The latest outbreaks were registered in Novgorodskaya, Tulskaya, Tverskaya and Volgogradskaya oblasts. During a meeting with local officials,  Aleksandr Tkachov, Governor of Krasnodarskiy Krai, asked them to increase anti-ASF measures to avoid introduction of quarantine in the region. Should quarantine get introduced, transportation of grain crops, animal food and other products of animal and vegetable origin will be restricted. This may cause significant problems with shipment of grains from Black Sea ports located in Krasnodarskiy Krai – the ports that ship the major part of Russian grain for export. (Source: Meat.info, Ria Novosti Yug)

 

EXPORTS TO ASIA

 

Basic Element, which is owned by the Russian billionaire, Oleg Deripaska is planning the production of 10,000 to 15,000 tonnes of pig meat in Siberia, which will be exported to China and other destinations in Asia. Basic Element CEO, Mr. Oleynik stated that the company wants to get a share of the still growing export opportunities in Asia and that the focus is particularly set on the continuously growing consumer market in China. (Source: Markedsnyt for Svinekoed)

 

INVESTMENT

 

The Government of Novgorodskaya oblast approved the "Development of Pork Processing and Storage in Novgorodskaya Oblast" programme. The aim of this programme is the design and construction of new production facilities, the reconstruction of existing pig farms and the modernisation of pork processing, packing and storage facilities in the oblast. The total funding needed for the project is RUR248 million (US$7.578 million), RUR50 million of which are allocated from oblast budget and the rest is separate investments. (Source: IA Regnum)

 

 

SPAIN

 

INCREASE OF VAT

 

The Spanish meat sector is breathing a sigh of relief following the announcement of the increase of VAT this week. VAT on food will remain at 4% and will increase from 8-10% for food service. VAT on food was introduced in 1993 and on goods and services in 1986. The general rate of VAT will increase from 18-21%; it is 23% in Portugal and Ireland. The government was forced to implement a tough package of cuts. The number of unemployed has increased to 5.39 million or 24.4% of the active population whilst the number of functionaries had reached a record 2.69 million. (Source: La Razón)

 

INDUSTRIAS CÁRNICAS DE HIJATE INVEST

 

Not everybody in the dry-cured ham sector in Spain is disinvesting. The processor from Almeria is investing a total of €940,000 including a new secadero for €272,000. (Source: Eurocarne)

 

Pork prices Barcelona Market Week commencing July 9 2012
Cut Name	Price range (Euro/Kg)
Carcases (secondary grade)	1,816/1,822
Gerona Loin Chops	2,60/2,63
Loin Eye Muscle	--/--
Spare Ribs	2,93/2,96
Fillets	5,38/5,41
Round Cut Legs	2,47/2,50
Cooked Ham	2,13/2,16
Rindless Picnic Shoulder	1,66/1,69
Belly	2,20/2,23
Smoked Belly with Spare Rib Section Cut off	2,63/2,66
Shoulder chap or Head Jowls	1,23/1,26
Back Fat, Rindless	1,08/1,11

     

        

UKRAINE

 

CHINESE INVESTMENT

 

The major part of US$3 billion Chinese investment in the Ukrainian agricultural sector will be allocated to the construction of a pig-breeding and processing complex consisting of 12 facilities in Mykolayivska oblast. The closed-cycle complex will hold 100,000 pigs. The design documentation and installation of the equipment will be done by Chinese experts, while Ukrainians will be responsible for the construction.  The decision was made in favour of Mykolayivska oblast because of the proximity to sea ports and terminals through which the Chinese are planning to sell the products manufactured at the complex. (Source: NikVesti)

 

PIG POPULATION REDUCED

 

According to the national statistics committee, the pig population in Ukraine reached 7,847,700 animals as of 1st July 2012. This represents a decline of 1.5% compared to the same date in 2011. The number of pigs bred in pig farms and complexes amounts to 3,437,400; while the number of pigs bred in private households is estimated at 4,410,300. (Source: PigUa.info)

 

 

USA

 

HARD TIMES TO COME

 

Due to the drought, December 2012 corn futures have risen by US$ 2.25 per bushel and December meal futures are up US$100 per tonne. These represent a 45% increase for corn and 28% for soymeal. These higher feed prices have to be absorbed by the livestock industry, causing a collapse in financial margins. Estimated costs of pork production have reached record high levels for the third quarter of this year, at US$72 per hundredweight, and drop only to US$69 for the autumn and winter. Hog prices cannot reach those lofty costs with losses anticipated to be about US$20/head for the next three quarters. (Source: Southeast Farm Press)

 

 

NEW ZEALAND

 

US PORK ON THE OFFENSIVE

 

Following the opening of the New Zealand market, US pork was presented at the Fine Food New Zealand fair. Some 300 companies and 6,000 visitors attend the show. In April, the USA exported 2,696 tonnes worth $ 8.4 million (Source: USDA, various).

 

PROMOTING PORK

 

Smithfield Foods Inc. is opening a hometown restaurant to showcase its products. The company, still based in Smithfield, Va., where it was founded in 1936, is opening the Taste of Smithfield. In addition to its namesake Smithfield brand, the company makes Armour and Farmland pork products. Taste of Smithfield shares a new 8,700 square foot building with the Genuine Smithfield Ham Shoppe, which sells Smithfield products, gourmet specialty foods and other Virginian specialties.

 

 

SOUTH KOREA

 

TARIFF-FREE PORK IMPORTS EXTENDED

 

The Korean Department of Finance announced that it will allow the import of 50,000 tonnes of pork bellies free of tariff during the last six months of 2012. The local pig producers are opposed to the extension of the tariff-free imports as they are still financially pressed after last year's FMD outbreak. The government's answer to this resistance is that the market is still characterized by low supply compared to the demand for pig meat making the expansion of tariff-free pork imports necessary. (Source, Markedsnyt for Svinekoed)

  

 

Source: British Pig Executive

US$1 = EUR0.82 (July 19, 2012)