August 21, 2012

 

BPEX Export Bulletin - August 2012 (Week 33)

 

 

Brazil

 

Santa Catarina affected by the pig crisis

 

The southern state of Santa Catarina, the heartland of pig production in Brazil with eight million heads, has occurred losses of R$1 billion (£312 million) over the last eighteen months, according the ABCS, the association of Brazilian pig producers. More than 70 municipalities which rely on the pig sector have declared a state of emergency. Farmers are getting R1.50/kg (47p/kg LW) whilst costs are in the region of R2.50-2.60 (78–81p). A surplus of 120,000 tonnes of frozen pork is weighing on prices. As discussed in bulletins passim, internal and external demands remain weak and the Government has introduced a subsidy programme for producers. (Source: Brazilian Meat Monitor)

 

 

Canada

 

Traceability for Canadian pork?

 

The Canadian Food Inspection Agency (CFIA) is proposing to make mandatory the current Pig Trace system. Jean-Guy Vincent, the President of the Canadian Pork Council is favourable and aims to integrate the system with other programmes such as Pig Care and Canadian Swine Health Board Security Programme. (Source: Agra Europe)

 

 

Denmark

 

Market

 

Slaughterings in Europe are affected by the summer holidays and the warm weather in southern Europe, resulting in fewer quantities for the slaughterhouses. Despite unchanged consumption the lower input of meat onto the market implies that prices are increasing. The market for front parts, shoulders, backs and legs is good and prices are increasing slightly. On the bacon market in the UK the market is stable. The markets in third countries are stable as well with fine exports to Japan, while the Chinese market remains relatively quiet. The Russian market is in a position of wait and sees, in anticipation of Russia entering the WTO on 22 August. (Sources: Danish Crown, Tican, Danish Food Council).

 

Exports of piglets

 

During the first six months of 2012, 4.4 million piglets weighing between 15 to 50 kg were exported from Denmark which is a significant increase compared to 3.7 million exported piglets during the same period last year. (Source: Effektivt Landbrug)

 

Microwaveable bacon

 

According to a market study commissioned by bacon producer, Moesby Bacon, most consumers love bacon but are put off by the filth and smell in the kitchen caused by cooking bacon. Moesby Bacon will now tackle the issue by producing bacon wrapped in special packaging which can be cooked in the microwave.  So far, Moesby Bacon is sold only in discount chain Lidl but the aim is to sell the product into the catering industry. (Source: Jydske Vestkysten).

 

Danish Slaughterhouses - payments week commencing 13 August 2012
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 – 86.9 kg)	Euro 1.560	Euro 1.560
Difference to last week	0.027	0.027
Sows (Above 129.9 kg)	Euro 1.091	Euro 1.091
Difference to last week	0.027	0.027
Sows (Above 129.9 kg)	Euro 0.921	Euro 0.921
Difference to last week	0.027	0.027

    

  

France

 

Mutual sanitary fund

 

Funded by farmers' contributions a mutual sanitary fund (Fond de mutualisation sanitaire) is being set up to compensate farmers facing indirect losses resulting from occasional sanitary incidents. Inaporc will start the funding which will be fed by farmers contributions. This set up will be part of the European mutual funding. The producer's voluntary sanitary contribution should be collected at point of slaughter and should amount to €0.01/pig per year. The global contribution of producers should not increase as in parallel their contribution to rendering costs is decreasing by €0.02.

 

VPF

 

In order to protect the integrity of the VPF scheme, from 1st July 2012, all origins and movements of piglets will have to be recorded in the database BD porc and all producers included in the scheme who will introduce a foreign piglet will not be authorised to benefit from VPF scheme for 6 months. Also, all pigs badly identified will be removed from the scheme.

 

Pigs

 

The 56 TMP basic is price at €1,528, exceeded its previous record of the year, last February. This week, it is higher by 0.6 cent. This increase reflects the low level of the offer because this week has only four working days, bank holiday on 15 August. The breeders hope that this dynamic of the market will continue at the beginning of September while animal feedstuffs are still very expensive.

 

Piglets

 

The market is between stability and a slight surplus of the offer, according to areas in France. Prices remain stable. Otherwise, the FNP-FNCBV prices are higher by two cents for 25kg and +46cents for post weanings.

  

Cuts

 

The market is regular in holiday areas, and very calm in other areas. Many operators are closed during this week and the wholesalers see their activity slowing down considerably this week.

     

Pork prices Rungis - Week commencing 13 August 2012
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0,65
Trimmings	1,58
Leg	2,31
Loin including chump	3,09
Loin excluding chump	2,75
Belly extra without trimmings	2,87

 

 

Germany

 

Market

 

Following the increase in the German quote for slaughter pigs, pig meat is marketed at higher prices too. Exports are dynamic and demand on the domestic market is typical for this time of year with collars, shoulders, bellies and by-products being the most popular products. Sales of hams however remain rather sluggish. (Source: AMI)

 

GFS expansion

                                

The Cooperative for the promotion of pig breeding (Genossenschaft zur Förderung der Schweinehaltung, GFS) and Dutch AI organisation Fokkerij Centrum Nederland (FCN) have announced their future co-operation. According to Dutch agriculture magazine, Boerderij Vandaag, the franchising agreement between the two companies will enable FCN to use the entire stock of GFS genetics while the Dutch until now mainly offered Danish genetics. FCN will also take part in GFS's TOP-genetic scheme which only allows boars achieving the top third in performance. For GFS, the agreement will open opportunities on the Dutch market. GFS is Germany's largest AI organisation with 3.6 million semen doses sold in 2011.  (Source: topagrar)

 

Slaughter numbers down

 

For the first time since 2005, German pig slaughter numbers are decreasing.  According to the Federal Statistics Office, 28.8 million pigs were slaughtered during the first six months of the year, which is a decrease of 0.8% or 237,000 pigs compared with 2011 figures. Not only reduced slaughter numbers but also decreasing supply of imported pigs for slaughter is responsible for the development. During the first half of 2009, the highest number of imported pigs was registered, summing up to 2.75 million animals. This year, the number was about one fifth (18.7%) below this record height. (Source: ISN)

 

Pork prices Hamburg Market Week commencing 13 August 2012
Cut name	Price range (Euro/Kg)
Round cut leg	2,30/2,50
Leg (boneless, rindless max fat level 3mm	3,10/3,30
Boneless Shoulder	2,65/2,75
Picnic Shoulder	2,15/2,35
Collar	2,85/3,00
Belly (bone in, ex-breast)	2,45/2,55
Sheet Boned Belly (rindless)	2,30/2,50
Jowl	1,55/1,75
Half Pig Carcasses U class.	2,20/2,30

  

   

Russia

 

ASF Update

 

The epizootic situation with ASF in Kuban region keeps getting worse.  Some of the large pig-breeding complexes in the region reported outbreaks of the disease. Edward Kutygin, Vice Governor of the region and Minister of Agriculture of Krasnodarsliy Krai considers the main reason for the spread ASF to be the concealing of outbreaks by the managers of pig-breeding facilities. Within 2 months starting from August 13, the owners of 69 pig-breeding complexes with low veterinary protection level will now have to either invest in improving the protection or cease functioning. Pig-breeding facilities with a higher degree of protection against the disease were encouraged to buy all pigs from private households within a 20-km radius of the farms. On August 13 an ASF outbreak was registered in Smolenskaya oblast. (Source: Kazakh Zerno)

 

Market

 

Imported Pork Markets (August 14)
Moscow	St.Petersburg
Leg (with bone): USD 4.47 /kg	Neck (boneless): USD 4.32 /kg
Liver: USD 1.60/kg	Heart: USD 6.6/kg
　	Heart: USD 2.6/kg
(Source: Meatinfo.ru)

      

       

Spain

 

Pork prices Barcelona Market Week commencing 12 August 2012
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2,70/2,73
Loin Eye Muscle	3,66/3,69
Spare Ribs	2,98/3,01
Fillets	5,43/5,46
Round Cut Legs	2,81/2,84
Cooked Ham	2,34/2,37
Rindless Picnic Shoulder	1,77/1,80
Belly	2,34/2,37
Smoked Belly with Spare Rib Section Cut off	2,77/2,80
Shoulder chap or Head Jowls	1,33/1,36
Back Fat, Rindless	1,23/1,26

 

 

Ukraine

 

Market

 

As of July 31, the average purchase price for pigs of I and II categories in Kyivska oblast was UAH19700/tonne (US$2,432/tonne). The lowest price was registered in Odeska oblast (US$2,031/tonne), and the highest price in the Eastern regions of Ukraine: Luhanska oblast at US$2,555/tonne, Dniproetrovka, Kharivska, Sumska oblasts at US$2,1412/tonne.) (Source: PigUA.info)

  

 

USA

 

Pork price inflation predicted

 

Higher feed prices are likely to convert into higher pork prices. Following rises of 8.5%, further increases of 2-3% for 2012 and 2.5-3.5% for 2013 are predicted. (Source: USDA)

US$1 = EUR0.81 (August 21, 2012)