July 23, 2013

                                                                                
BPEX Export Bulletin - 19 July 2013 (Week 29)

 

 

This week's export news.

 

A marked fall in exports between January and May to Belarus, the Ukraine and Korea led to an overall fall of 2% of EU pork exports. In contrast, exports to Mainland China rose to 280,000 tonnes (+40%) and is now the largest market. The Philippines (+42%) now represent the 6th largest market with 42,000 tonnes. Russia, Hong Kong Japan and the Ukraine remain the second, third, fourth and fifth largest markets.

 

Korean authorities have delisted four export plants which have not shipped pork over the last three years. We are trying to re-list one of them.

South Africa has, at last, agreed on a list of PRRS-free cuts from the UK and we can now progress with the new export health certificate for these commodities. Trade has stopped since 31 May.

Meat & Livestock Australia (MLA) has identified 261 Technical Barriers to Trade (TBT), of which 135 directly affect exports at a cost of £750m. The top five TBT issues are, in descending order of significance: product age and expiry date conditions; market listing and accreditation restrictions; product entry restrictions (bans); tariff quota administration and import permit issues; and increased packing costs due to labelling requirements, says Andrew McCallum who heads International Services at MLA.

UKTI are organising "Food and Fashion Weeks" as part of the Great export marketing campaign. The events in Japan (28 October - 1 November) and Hong Kong/Macau (10 -14 March) are relevant to the British pork sector. For more information and to apply see http://www.greatweeks.co.uk and info@greatweeks.co.uk

The traditional British Meat Dinner, in its 23rd year, will be held during Anuga on Monday 7 October.  To apply for tickets, exporters should contact Claudine Collin at claudine.collin@ahdb.org.uk Tickets are limited to 300 this year.
 

 

France

 

Cooperl

Patrice Drillet, a pig producer from Goudelin (Côtes d'Armor) in Brittany is succeeding Guy Dartois as President of the Cooperl cooperative. Mr Drillet has been a member of the Cooperl board since 1996 and will ensure the 2,200 producers of the cooperative and the 5,000 employees all share the strategic decisions taken by the board.

The cost of origin

The French Federation of Charcuterie Processors (FICT) is against the mention of country of origin of meats used in the manufacturing of charcuterie products. FICT justified their position due to the additional cost to the industry. They estimate costs will increase by between 14% and 23% (Euro 420 to Euro 690 million), depending on the product, company size and management systems. Less flexible sourcing, additional complex equipment and the increased number of labels/stickers are amongst the major added costs.
 

Markets

Pigs

The 56TMP basic price has reached its highest level, for the time of year, since 1997, increasing by €0.01 on the week. Higher demand as a result of the sunny weather has reassured Abattoirs. The supply/demand balance is now more favourable for suppliers as offers are low.

Piglets

Fatteners have not been so prudent due to the return of a trend of small price increases. The price is up by Euro 0.02 for 25kg weaners and Euro 0.45 for 8kg piglets.

Cuts

It's very calm due to school holidays. Prices for legs are higher but the prices for bellies and shoulder remained stable.
 

Pork prices RUNGIS week commencing 15 July 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.60
Trimmings	1.46
Leg	2.75
Loin including chump	3.07
Loin excluding chump	2.92
Belly extra without trimmings	2.81

 

Denmark

 

Markets

The good weather in Denmark and across Europe has, as expected, resulted in improved demand for pork. Demand for legs and loins is good with satisfactory sales reported. Fore-ends and manufacturing meat demand has yet to improve, although providing the good weather continues, demand is expected to improve. On third-country markets, sales to China and Japan remained stable at satisfactory levels and a positive trend has been reported for shipments to the Russian market.
 

Danish Slaughterhouses - payments week commencing 15 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

 

'Swine Innovation Centre', a hit

The centre in Sterksel near Eindhoven specialises in innovations for pig housing, health, environment, feeding and energy. Their open days welcomed 3,000 visitors, some from the UK, Germany, Denmark and France. (Source: Boerderij Vandaag)
 

Vion new website

At their new web site www.vionfarming.nl producers can access news, market trends and Vion standards. (Source: Vion)
 

More weaners for Spain

For the first six months of 2013, some 155,000 weaners were exported to Spain out of a total of 3.3m. The main market remains Germany with 2m heads. (Source: Boerderij Vandaag).
 

 

Ireland

 

Allegations

Irish authorities have pledged to look into allegations of pig mistreatment on Irish pig farms. (Source: The Grocer)
 

 

Germany

 

Pork prices Hamburg Market Week commencing 15 July 2013
Cut name	Price range (Euro/Kg)
Round cut leg	2.45/2.55
Leg (boneless, rindless max fat level 3mm	3.30/3.50
Boneless Shoulder	2.45/2.55
Picnic Shoulder	2.08/2.25
Collar	2.85/3.00
Belly (bone in, ex-breast)	2.50/2.65
Sheet Boned Belly (rindless)	2.32/2.55
Jowl	1.65/1.75
Half Pig Carcasses U class.	2.08/2.16

 

Spain

 

Ham exports are booming

Exports of dry cured ham for the period January to April are up 22.5% to 8.402 tonnes and 24.9% in value to Euro 76.8m. (Source: Eurocarne)
 

Pork prices Barcelona Market Week commencing 8 April 2013
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.73/2.76
Loin Eye Muscle	3.73/3.76
Spare Ribs	3.13/3.16
Fillets	5.33/5.36
Round Cut Legs	3.08/3.11
Cooked Ham	2.67/2.70
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

 

Finland

 

Atria to take over Saarioinen

Atria are to take over Saarioinen, a major red meat and poultry processor with 2,000 employees and factories in Finland and Estonia. With this acquisition, Atria will control nearly half of the Finish market with only two competitors, HK and Snellman. (Source: Yle Uutiset)
 

 

Croatia

 

Pork, an important staple

Pork represents 15.5% of Croatian farming output, just behind milk (17.5%) and forestry (21.8%). The newest member of the EU has a largish trade deficit on pork with the EU. According to the Door database, Croatia boasts a single product with Protected Denomination of Origin (PDO), Istrian dry-cured ham (Istarski pršut). (Source: various)
 

 

Russia

 

Lithuanian restrictions

On 15 July Rosselkhoznadzor imposed restrictions on imports of chilled pork and beef from Lithuania. The decision was made after three consignments failed to comply with the veterinary and sanitary requirements of the Customs Union (CU). The Lithuanian veterinary service is required to inspect all enterprises that supply products of animal origin to CU countries and to provide Rosselkhoznadzor with a list of the enterprises that comply with the CU regulations. Unless these required actions are taken, Rosselkhoznadzor will ban the import of meat and dairy products from Lithuania. (Source: rbc.ru)
 

 

Ukraine

 

Higher pig slaughter

Data from the Ukrainian State Statistic service shows that during the first six months of 2013 Ukrainian slaughtering totalled 969,000 pigs, nearly 14% more than year earlier levels. The average pig weight was 109kg. The majority of pigs were supplied by commercial pig enterprises (93.3%) with the remainder coming from private households. (Source: PigUa.info)
 

Brazilian ban lifted

According to Ivan Bisiuk, the Deputy Minister for Agrarian Policy and Food, Ukraine lifted the pork import ban on several Brazilian enterprises. He said that the companies that do not use hormone additives could now commence exports to the Ukraine. The ban on Brazilian pork was introduced in March 2013. (Source: PigUa.info)
 

 

USA

 

'COOL' gets hotter

On 8 July, eight organisations representing the US and Canadian meat and livestock industries filed a suit in the United States District Court for the District of Columbia to block implementing the mandatory country-of-origin labelling (COOL) rule that the US Department of Agriculture finalised in May 2013. Plaintiffs include the American Association of Meat Processors, American Meat Institute, Canadian Cattlemen's Association, Canadian Pork Council, National Cattlemen's Beef Association, National Pork Producers Council, North American Meat Association and the Southwest Meat Association. They claim among other things that USDA proposed the new rule in March after the World Trade Organization (WTO) panel ruled in response to a complaint by Canada and Mexico that the existing COOL requirements violated the United States' WTO obligations.  (Source: various)
 

 

Brazil

 

Brazil exports pork to Japan

Manufacturers in Santa Catarina state are preparing pork to be exported to Japan following the lifting of restrictions in May. Santa Catarina is the only state which does not have foot and mouth disease without the need for vaccination, a Japanese requirement. According to Brazilian exporters, shipments to Japan are forecast to amount to $200m per year. Japan is the world's largest importer of pork. (Source: Landbrugsavisen).
 

 

India

 

PRRS outbreak

India has confirmed its first ever PRRS outbreak in the Mizoram State near the Burmese and Bengladeshi borders. The virus is thought to originate from Myanmar. (Source: Agra Europe)
 

 

Taiwan

 

Polish pork on Taiwanese tables

Poland has been awarded access for pork to Taiwan. Other countries queuing for access include France, Sweden and Austria. The current market leader is the USA with 18,000 tonnes of imports for 2012. (Source: Boerderij Vandaag)
 

 

China