August 28, 2013

BPEX Export Bulletin - 23 August 2013 (Week 34)

 

 

This week's export news

 

Export performance for the first six months of the year was outstanding, pork shipments increased by 22% to 85,600 tonnes, offal up 41% to 26,200 tonnes and sausages up 5% to 4,700 tonnes. In contrast, exports of processed pork surprisingly fell by 16% to 5,300 tonnes and bacon exports were also down to 6,500 tonnes.

 

 

France

 

Reduced red tape

Today, the opening of new pig sheds to house less than 450 pigs is quite straightforward in France with a simple registration being required by French authorities. For sheds housing between 450 and 2,000 pigs, compulsory administrative tasks are a real burden, especially the completion of an environmental assessment. Producers have managed to convince the French Minister of Agriculture to reduce this burden, a new procedure will be ready for implementation by the autumn of 2014. This new procedure will include local authorities ("préfet") who will decide whether an environmental assessment is required. This is in line with EU directives, aiming to reduce pollution and nitrate levels. However, it will inevitably provoke a reaction from environmental protection groups and some producers also fear it could open the door to local discrimination.
 

New Labels Rouges

Following the publication of "arrêtés" four new "Labels Rouges" products will be covered by AFPSO (Association of Farmed Products from the South West). These new certified products are:

LA N°47-88 Farmed pork fresh sausages

LA N°02-13 Farmed pork "pâté"

LA N°45-88 Farmed pork superior cooked ham (whole or pre-sliced)

LA N°1988 Farmed fresh pig meat and offal.
 

Markets

Pigs

The French market is firm following the recent long holiday weekend. The 56TMP basic price gained €0.05 last Monday (August 19) in Plérin. Higher prices are anticipated in the next few days due to the end of the French holidays.

Piglets

There is still no movement on the French piglet market, prices are stable as they are on neighbouring European markets.

Cuts

Pork prices RUNGIS week commencing 19 August 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.65
Trimmings	1.56
Leg	2.57
Loin including chump	3.24
Loin excluding chump	2.92
Belly extra without trimmings	2.56

 

 

Denmark

 

Higher prices in Germany

According to a new report, German pig prices are settled at €0.11 per kg more than for Danish pigs. The German price is currently equal to €1.798 per kg. The level is assessed by the Danish Agriculture and Food Council, prices account for expected residual payments. (Source: Landbrugsavisen)
 

Markets

The market is currently balanced due to low pig supplies in Germany combined with the holiday period in southern Europe. On European markets, fresh legs are traded at increasing prices. Other cuts have also met improved demand. On the UK bacon market, sales are reported as stable. On third-country markets, demand from Russia is good with stable exports reported to market in the Far East.
 

Danish Slaughterhouses - payments week commencing 19 August 2013
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 - 86.9 kg)	Euro 1.588	Euro 1.588
Difference to last week	0.027	0.027
Sows (Above 129.9 kg)	Euro 1.172	Euro 1.172
Difference to last week	0.04	0.04
Boars (Above 109.9 kg)	Euro 1.040	Euro 1.040
Difference to last week	0.04	0.04

 

 

Spain

 

Pork prices Barcelona Market Week commencing 19 August 2013
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.83/2.86
Loin Eye Muscle	3.93/3.96
Spare Ribs	3.23/3.26
Fillets	5.48.5.51
Round Cut Legs	3.28/3.31
Cooked Ham	2.72/2.75
Rindless Picnic Shoulder	1.72/1.75
Belly	2.37/2.40
Smoked Belly with Spare Rib Section Cut off	2.80/2.83
Shoulder chap or Head Jowls	1.18/1.21
Back Fat, Rindless	0.73/0.76

 

Austria

 

Wiesbauer has plans

The major pork processor is injecting a €20 million investment in its two Austrian and Hungarian plants (Gönyü) this year. The largest 'slice' is for the development of a sliced cooked meat plant in Vienna. (Source: AFZ)
 

 

Germany

 

Pork prices to a new level

Slaughter pigs prices in August have been moving up. A new top level at €1.88 per kg was achieved last Friday (August 23). Pig supplies remain significantly below the level recorded over the last few months. Some 908,042 pigs were slaughtered last week in Germany which is a weekly fall of 8,000 head. Higher exports to Poland are applying additional pressure to the current situation. Further price increases are expected next week. (Source: own)
 

More imports of slaughter pigs

This year, Germany is expected to import more slaughter pigs - imports of piglets should, however, remain at similar levels. According to the Trace database, in the first half of 2013 around 300,000 more pigs (4%) were imported than in the same period last year. So far this year, some 4.4 million animals have been imported from the Netherlands (+8%) and 3.2 million from Denmark (-2%).
 

New meat museum for Black Forest ham

Black Forest ham now has its own museum. Click here to access it. On our list, this represents the 12th German meat museum and the third specialised on ham. (Source: AFZ)
 

Pork prices Hamburg Market Week commencing 19 August 2013
Cut name	Price range (Euro/Kg)
Round cut leg	2.60/2.75
Leg (boneless, rindless max fat level 3mm	3.45/3.65
Boneless Shoulder	2.85/2.95
Picnic Shoulder	2.25/2.35
Collar	2.85/3.10
Belly (bone in, ex-breast)	2.50/2.65
Sheet Boned Belly (rindless)	2.50/2.65
Jowl	1.65/1.80
Half Pig Carcasses U class.	2.25/2.32

 

 

Croatia

 

Growth of imports

Over the last ten years, pork imports to the newest member of the European Union have risen from 28,000 to nearly 50,000 tonnes. However, German, Italian and Austrian exporters are better placed and have keener prices to serve the market. (Source: various)
 

 

Russia

 

Higher production

According to the Russian State Statistic service, Russian meat and offal production (excluding poultry) increased by 27.4% in the January to July period compared with the same period a year ago, totaling 921,000 tonnes. (Source: finmarket.ru)
 

 

Ukraine

 

Higher fresh pork production

According to the Ukrainian State Statistic service, frozen pork production decreased by 38.6% on the year in the first seven months of 2013. In contrast, fresh and chilled production increased by 7.1% to 113,000 tonnes. In July 2013, the volume of fresh and chilled pork produced increased by 28.6% to 17,400 tonnes. (Source: PigUa.info)
 

Pork purchase price

According to the Ukrainian State Statistic service, as of August 20, the average purchase price for pork was UAH18,312 per tonne (US$2,251). The highest price for 1st and 2nd quality pork categories were registered in Kharkivska oblast (US$2,643) and the lowest in Ivano-Frankivska oblast (US$1,844). The average retail pork price is US$5.01 per kg. (Source: PigUa.info)
 

 

China

US$1 = EUR0.75 (Aug 28, 2013)