September 9, 2013

 

BPEX Export Bulletin - 6 September 2013 (Week 36)   

 

 

During the Resturant & Bar show in Hong Kong this week, Melton Mowbray pork pies have proven to be a surprising hit with the locals. Considerable technical development has taken place to ensure that the frozen product, when shipped, provides a positive eating experience once thawed. Distributors see high sales potential for the pork product, made with 100% British pork.

 

In Hong Kong, British sausages are currently distributed by four major importers. Two importers oversee the delivery of niche/organic pork products, with another three on British bacon.
 

 

France

La Lauragaise moving forward

The scandal involving abattoirs in south-east France and the supply of horsemeat from Belgium will not help the resurrection of La Lauragaise, the new company set up by Laurent Spanghero. The company's progress has been better than anticipated since trading resumes. Most employees, who worked on part-time contracts in August, were hoping to increase their working hours in September. Company activity is focused on the production of prepared meals (mainly cassoulet) as the meat trading business is seeing a slow progress. Nevertheless, three retailers (Auchan, Leader Price and Système U) are presently auditing the site before placing orders in the coming months.
 

Mountain pork

Produced in the centre of France, mountain pork production is pressured by high feed costs. In Auvergne - Limousin region, pig production has decreased by 25% over the past 10 years and the average herd size is now only 100 sows. Out of the 600 producers located in this region, 400 of them are in mountain areas producing 280,000 pigs, representing 40% of total French mountain pig production. The EU official label "produit de montagne" or produced in mountain area, requires 50% of feed to be sourced locally (in mountain) which is impossible in the Auvergne – Limousin regions where the majority of the land is permanent pasture. The association Euromontana wrote to the commission seeking to amend this requirement. A response from the Commission is expected this month.
 

Markets

Pigs

The 56 TMP basic price gained US$0.007 last Monday in Plérin. For the Marché du Porc Breton, the volume of trade is described as "fluid" as required at the start of the new term.

Piglets

The French market is quite stable in spite of firmer prices. Prices are firm for "charcutiers" pigs, the FNP-FNCBV price index gained US$0.08 for 25kg pigs and US$1.40 for  8kg piglets.

Cuts

According to the Marché du Porc Breton, exports from Europe have been stronger during the first six months of the year due to higher sales to the Chinese market (+37%) and the Philippines (+42%).
 

Pork prices RUNGIS week commencing 2 September 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.70
Trimmings	1.62
Leg	2.62
Loin including chump	3.29
Loin excluding chump	2.88
Belly extra without trimmings	2.58

 

Workers invest in pig production

The Job Steward Committee of Danish Crown is proposing to invest US$105.3 million of employees' wages in pig production over the next four years. The proposal is being negotiated with the management of the Group's pork division, DC Pork. The intention is to increase pig production by up to three million pigs over the next four years aiming to safeguard current jobs and create new vacancies. Funding will result in employee's salary being cut by approximately US$178 a month over the next four years. The money saved will be paid into an investment pool enabling farmers to borrow to expand production. In return, Danish Crown commits not to close Danish slaughterhouses during the period. It is expected that the slaughterhouse employees will agree to and accept the proposal in the next two weeks. (source, Danish Crown)
 

Tican investment

Tican predicts it will need to upgrade production equipment and increase capacity. The company is investing in a new cooling tunnel which it estimates will help increase slaughter throughputs to 80,000 pigs a week in the near future. (source, Lemvig Folkeblad)
 

New specialties

Danish Crown has teamed up with Aalbæk Specialities to develop a series of high class Nordic charcuterie products. The range, named 'Aera by Danish Crown' consists of air-dried hams, air-dried bacon and sausages. The new products will be sold to restaurants and caterers. Aera products are made from well-marbled Duroc pigs. (source, Danish Crown)
 

Markets

 

There have been significant price increases for shoulders on European markets and slightly firmer demand for legs which have reached record levels. Prices for fore-end cuts, loins and bellies have remained stable. The bacon market in the UK is described as satisfactory and contracts for September have been negotiated and entered into at slightly firmer prices. On third country markets, demand is unchanged, with firm demand from Russia and stable sales reported to Japan and China.
 

Danish Slaughterhouses - payments week commencing 2 September 2013
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 - 86.9 kg)	Euro 1.615	Euro 1.615
Difference to last week	unchanged	unchanged
Sows (Above 129.9 kg)	Euro 1.239	Euro 1.239
Difference to last week	0.027	0.027
Boars (Above 109.9 kg)	Euro 1.107	Euro 1.107
Difference to last week	0.027	0.027

 

Germany

 

Price fall expected

Slaughter pigs numbers increased last week to 950,000 and more were expected in the current week. In addition, meat sales and prices are comparably low and processors are losing money on many pork cuts. Demand for necks is extremely low. As a result, Tönnies announced US$3.11/ kg for the coming  week with Westlfleisch and Danish Crown following suit.  It appears that the recent price of US$3.24 will be the peak price for 2013. (Source, AMI)
 

Vion closes slaughterhouses

Vion has announced the closure of smaller slaughterhouses in Germany, namely the Kasel Golzig (Vion, Lausitz GmbH) and Minden (Atlas Handelsgesellschaft mbH), each slaughtering approximately 5,000 pigs per week. Pigs will be slaughtered at Vion's other slaughterhouses in Germany (source, Markedsnyt for Svinekoed)
 

Pork prices Hamburg Market Week commencing 2 September 2013
Cut name	Price range (Euro/Kg)
Round cut leg	2.70/2.85
Leg (boneless, rindless max fat level 3mm)	3.55/3.75
Boneless Shoulder	2.95/3.05
Picnic Shoulder	2.30/2.45
Collar	2.90/3.15
Belly (bone in, ex-breast)	2.55/2.70
Sheet Boned Belly (rindless)	2.55/2.75
Jowl	1.70/1.85
Half Pig Carcasses U class.	2.30/2.40

 

 

Spain

 

Lower exports

Spanish pork exports in the first half of 2013 fell by 13% to 469,000 tonnes against the same period in 2012. Exports to France, Italy and Russia fell by 10,000 tonnes to 131,000, 55,000 and 30,000 tonnes, respectively, in the six-month period. The Russian ban has started to affect Spanish exports, with Spain losing market share in France, Italy and Germany.  (Source, AHDB)
 

Pork prices Barcelona Market Week commencing 2 September 2013
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.93/2.96
Loin Eye Muscle	4.08/4.11
Spare Ribs	3.28/3.31
Fillets	5.58/5.61
Round Cut Legs	3.42/3.46
Cooked Ham	2.95/2.98
Rindless Picnic Shoulder	1.88/1.91
Belly	2.37/2.40
Smoked Belly with Spare Rib Section Cut off	2.80/2.83
Shoulder chap or Head Jowls	1.28/1.31
Back Fat, Rindless	0.88/0.91

 

Chinese wholesale prices week commencing 2 September 2013
	Price (RMB/Kg)	£/Kg	change on week
Pig Carcase	22.4	2.35	1.82%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities