September 4, 2013

  

BPEX Export Bulletin- 30 August 2013 (Week 35)

 

 

This week's export news

 

Putting China aside, Russia, the Dominican Republic and Taiwan are our three key priorities for market access negotiations for pork. Followed by Bosnia, Malaysia, Macedonia, the Ukraine and Mexico. For processed pork products Australia and China are our most significant targets. It is difficult to give a time frame for market access, as we experienced for China but we are aiming for progress on every dossier.

 

 

France

 

Reprieve for Gad

 

In receivership since February, Gad was given a reprieve as the Trade Court of Rennes decided to suspend the observation period until 16 October.
 

Directors of GAD presented a plan that included the transfer of the slaughtering activity from Lampaul-Guimiliau (Finistère) where 343 of the 800 staff moved to join the 600 staff of the second abattoir, located in Josselin (Morbihan).

 

This plan has not been finalised yet and the Court requested a final plan to be ready by 18 September at the latest. This plan also includes the closure of a processing unit located in St Nazaire (Loire-Atlantique) employing 80 staff and the closure of the head office located in Saint-Martin-des-Champs (Finistère) employing 54 staff.

 

According to some rumors Gad SAS has been struggling since 2008 and may have lost €20 million in 2012.

 

This is precisely the amount that Cecab (7,000 staff cooperative group owning 65% of Gad) would apparently be prepared to pay for the rescue of Gad (and partly their rescue too!).

 

The future of Gad is obviously in the hands of the banks who would have to erase some debts and in the hands of the other shareholder Prestor (group of producers).

 

Jean Caby on the move

 

It is time now for Jean Caby to move away from their old site located near Lille.

Following the transfer of the ham production to Landivisiau (7,000 tonnes per year) and the planned transfer of dry sausage manufacturing activity in 2014, a new site will have to be found and at the moment the co-owned company (Foxlease 51% and Campofrio Food 49%) has not made a decision.
 

Cooperl investments

 

With a net result of €6 million, a turnover of €2.08 billion and 4,800 staff, the cooperative is planning to improve productivity and invest €50m this year in automation. €4 million was invested in 2011 and in 2012.
 

Market data for week 34

 

Pigs

On Monday, 56 TMP basic price gained 1 cent. Demand is outstripping supply at the moment. Marché du porc Breton says: "This is the result of a reduction in the number of breeding sows during 2012 due to the new rules for their wellbeing; the cherry on the cake for the breeders who haven't seen an increase since 2007."
 

Piglets

The French piglets market is still not moving this week even if the market is better and firmer than the same period in previous years. Last week, the FNP-FNCBV prices gained 2 cents for 25kg and +36 cents for 8kg.
 

Cuts

It's the final push before the promotions that will take place at the beginning of September. We still don't know how consumption will react to a strong increase in pork prices. For export, there is no difference between prices in Germany, Spain and France which does not advantage French exports. The French internal market is firm.
 

Pork prices RUNGIS week commencing 26 August 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0,65
Trimmings	1,57
Leg	2,55
Loin including chump	3,27
Loin excluding chump	2,91
Belly extra without trimmings	2,54

 

 

Germany

 

Further price rise

 

After the third price increase in a row the recommended price reached €1.93/kg last Friday.
 

Even though the number of available pigs in Germany is increasing slightly and the live exports to Poland decrease, slaughter pigs remain scarce.

 

Despite the difficulties of passing the price rises on meat, no one is expecting a decrease in the foreseeable future. For the upcoming price round, the majority of operators expect another slight increase.

 

However, an unchanged price also seems reasonable to enable the marketers to catch up with the price of pork cuts. (Source: own)

 

 

Spain

 

Low supplies drive up prices

 

Pig prices are steady on a high basis around €1.50/kg live, close to last year's high. There are not enough pigs to send to slaughter. (Source: various)
 

After three years of crisis...

 

...producers of Iberian pigs are making money on the back of higher prices. Some are already considering reopening units closed over the last few years. (Source: agroinformación)
 

 

China

 

Stability according to the census

 

The June census shows a total of 50.68 million sows (-0.1%) and slaughter for the first six months of the year 342 million head (+1.1%). Live prices are still high at £1.69/kg. (Source: various)
 

 

Ireland

 

Imports under scrutiny

 

With imports to the end of June from the UK up 37%, from Denmark 45% and from the Netherlands up 27% against last year, they are under scrutiny, particularly at retail level. Most of these end up in food service with an estimated 60% of pork served in catering establishment being imported. (Source: Irish Farmers' Journal)
 

 

Slovakia

 

No food inflation

 

In Slovakia, food inflation does not really exist. A Subway sandwich - the same in the UK - retails at £ 1.35. (Source: own)
 

 

Netherlands

 

Van Rooi expands its Helmond plant

 

 

 

Russia

 

Meat export in January-July increase by 20%

 

During the period January-July 2013 Russia exported 20,000 tonnes of meat, which is 20% more than during the same period last year.
 

Some 90% of the meat is supplied to CIS countries - Kazakhstan is the biggest buyer with 60% of shipments. Speaking of pork, market experts forecast further increases of pork exports to China. (Source: PigUa.info)

 

New large pig-breeding complex

 

The construction of a new pig-breeding complex will soon be completed in the Ural Federal region. This is the joint project of Romkor Meat Corporation and the local government.
 

The total cost of the project is RUB 1 billion (£20 million). The capacity of the complex to be built will be 65,000 pigs which will allow the processing of 7,800 tonnes of pork. The pigs will be brought to the complex in 2014. (Source: agroru.com)

 

 

Belarus

 

Almost 3,000 pigs slaughtered to stop African Swine Fever

 

In order to eliminate the outbreak of the ASF, as of 15 August, the authorities in Vitebskaya oblast confiscated and slaughtered 2,916 pigs from private households.
 

Some 1,000 more pigs in private households in the vicinity (5km zone) of larger pig farms and 3,000 pigs in the area of the possible spread of the ASF are to be confiscated and slaughtered before 1 September.

 

The amount allocated for compensation for the pigs is BYR 4 billion. (£300,000). (Source: region.ej.by)

 

 

Ukraine

 

Over 3 million pigs vaccinated against Classical Swine Fever

 

Starting from the beginning of 2013, the Ukrainian State Veterinary and Phytosanitary Service vaccinated over 3 million pigs against the classical swine fever.
 

Moreover, the veterinary officers have examined 1.7 million pigs on farms and private households. As a result, over 1,000 owners were held administratively responsible for violations of veterinary and sanitary requirements. (Source: PigUa.info)

 

 

Vietnam

 

Low interest rates for pig farmers

 

The government has asked commercial banks to limit interest rates for pig farmers to 10% as they shoulder losses due to higher input costs and lower pork prices.
 

Typical interest rates are 20%. Pork imports are blamed again for the low prices and the country is expected to increase its imports when it joins Asean in 2015. At the moment, Vietnamese processors are importing a rising volume of US pork to produce sausages and canned meats. (Source: Asian Pork)

 

Autogrill in Vietnam

 

The Italian leader in road catering plans to open 80 outlets in the country in a joint venture with Imex (IPP). (Source: Asian Pork)
 

Austfeed new breeding farm

 

The feed miller has opened a 1,200 GGP / GP farm and an AI station in Hung Yen, using European and US genetics (no detail given).
 

Dao Manh Luing, the Managing Director, says the company will market parent gilts from its own lines. The company also opened a small plant in Hanoi for processed meats under the Mavin brand and has hired a German technologist and plans to expand. (Source: Asian Pork)

 

 

Indonesia

 

Strong pork potential

 

The island counts 900,000 pigs for a population of 3.5 million, 250,000 of which on commercial farms and 650,000 in backyards with 1-5 pigs. Consumption stands at 19kg per capita per year.
 

Bali has two abattoirs, a small one in Sesetan owned by the local government and one private plant in Badung with a capacity of 500 heads per day. Consumption reaches a peak during Hindu festivals when up to 10,000 pigs are slaughtered. The national dish is babi guling or Balinese suckling pig.  (Source: Asian Pork)

 

 

Korea

 

Good news for meat consumption

 

Meat consumption has risen by 22% between 2009 and 2012 to 44.7kg per capita or 2.2 million tonnes. Pork still represents exactly 50% of total meat consumption. (Source: Asian Pork)
 

 

Thailand

 

Betagro retail expansion

 

The Thai conglomerate is adding 50 meat stores in Bangkok to its 100-strong chain where it sells pork, chicken and sausages. This represents only 3% of the £1.5 billion group turnover.
 

The company is also investing a further £22 million in Cambodia. It aims to increase sales in Hong Kong of its S Pure and Better Food branded pork and chicken products by 55% this year and introduce ham and bacon.  (Source: Asian Pork)

 

 

Malaysia

 

Profeed Agronutrition chooses French genetics

 

The company that manages three farms in Selangor took delivery of 45 breeding pigs from Penarlan. PA slaughters its pigs at Tip Top and operates retail outlets. (Source: Asian Pork)
 

US$1 = EUR0.75 (September 3, 2013)