October 16, 2012

                                                                                             

BPEX Export Bulletin - October 2012 (Week 41)

  

  

This week's export news

 

Three prepacked English pork lines in the Excellent range of Albert Heijn supermarket were launched this week in the Netherlands (see www.ah.nl). They rate 2** under the Beter Leven animal welfare scheme. For memory, standard Dutch pork does not get a star; Albert Heijn basic pork with its higher specification carries 1* whilst organic pork is awarded 3***. The timing of the launch coincides with the rise of continental pork prices above British prices, making English pork good value on the Dutch market. This is the culmination of more than two years of work and is a strong recognition of the high English standards. Let's hope that other Dutch retailers such as Jumbo follow suit.

  

BPEX is once again alongside EBLEX a sponsor of the English Meat Dinner on Monday 22 October in Paris. Some 300 guests are expected. There are only a few places left and exporters are asked to contact rapidly the AHDB office in Fontainebleau if they require tickets.

 

 

Belarus

 

Pork prices up 30%

 

Maximum selling prices for all types of meat in Belarus were fixed by  the Belorussian government. According to experts, the pork and beef production companies have become unprofitable in recent months due to the rising feed prices. In the view of the Belarusian government, a price increase of 30% should be sufficient to return the producers to the level of profitability. "Meat processing organisations have been given the opportunity to increase the selling prices of these products, but not to exceed the limit of a maximum sale prices," added the Ministry of Economy in an official report. (pigprogress.net)

 

 

Bulgaria

 

Subsidy plan announced

 

The government will provide Lev22-25 million (£9-10 million) to producers from November, Deputy Farming Minister Tsvetan Dimitrov said at the annual livestock show. The whole Bulgarian livestock and poultry sector is facing an acute financial strain. (Source: Reuters)

 

 

China

 

Sales up for Golden Week

 

Retail consumer sales growth slowed slightly for the Golden Week, when millions of Chinese take their yearly holiday. Retail sales were up 15% against 17.5% last year. Food service sales were particularly buoyant. Wholesale prices of pork remains stable or slightly down. (Source: Reuters)

 

 

Denmark

 

Market

 

The European markets remain unchanged and stable. There is a fine demand for legs, shoulders, and loins. The market for collars is somewhat weaker. On the British bacon market, the demand is fine and at a stable level. As to markets outside of Europe, sales and prices to Japan and Russia remain unchanged. The market in China is a little weaker because of national holidays. (Sources: Danish Crown, Tican, Danish Food Council).

 

DAT-Schaub growth in the US

 

The Danish Crown subsidiary, DAT-Schaub takes a significant leap forward in the United States. The company becomes major shareholder of a new American casing company resulting from the merger of Casing Associates LCC and America's largest casing company Wolfson Casings. DAT-Schaub already owned 50% of the shares of Casing Associates, but through the merger grows to a turnover of $ 160 million on the US market. Through the merger with Wolfson Casing, DAT-Schaub now has access to the company's sales network as well as own production in the United States. Altogether, DAT-Schaub and DCW Casings prepare and sell more than 70 million pig intestines, which makes it one of the largest players in the global market. (Source: Landbrugsavisen)

 

Danish Slaughterhouses - payments week commencing 08 October 2012
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 -86.9 kg)	Euro 1.654	Euro 1.654
Difference to last week	Unchanged	Unchanged
Sows (Above 129.9 kg)	Euro 1.265	Euro 1.265
Difference to last week	Unchanged	Unchanged
Sows (Above 129.9 kg)	Euro 1.095	Euro 1.095
Difference to last week	Unchanged	Unchanged

 

 

Fiji

 

Harsh competition

 

Imports of Australian bacon, made with Canadian pork at prices much lower than local products, are threatening the very existence of the Fijian pig sector says the Pig Producers' Association. (Source: Fiji Times)

 

 

France

 

"The éleveur"

 

Inspired by the famous French silent movie, "The Artist", young members of the Porelia group of pig producers have launched a short film titled "The éleveur", available on You Tube to describe the progress achieved by pig producers in the last 30 years and the high level of technology involved in the industry today, in pig marketing, feeding systems, price reporting.

 

FICT

 

Robert Volut, President of the French Federation of the "charcuterie" processors (FICT) claimed that last year, for the first time in twenty years, the processing industry reduced the number of employees by 2%.

 

Salmonella

 

This dangerous bacteria has been found in a batch of "andouilles" (smoked sausage made with tripes of stomach and intestines) marketed under the Asselot brand in Vire area in Normandy.

 

New PGI

 

The Montbéliard sausage which is very similar to Morteau sausage and also processed in the east of France has applied for PGI and should get PGI status in nine months.

 

Pigs

 

A new slowing down for prices is not to be excluded on Thursday at Plérin. Everything will depend on offers proposed by breeders. On the abattoirs' side, nothing new is to be envisaged. The professionals in the meat sector stay prudent due to the calm market. In EU, prices are stable and to regain some competitiveness, French producers should reduce their prices.

 

Cuts

 

The market is just correct for some, still too quiet for others. Altogether, orders are average for the season. The retailers maintain the pressure on their purchase prices. If the price for ham is slowing down, it is stable for other cuts.

  

Pork prices Rungis - Week commencing 08 October 2012
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0,85
Trimmings	1,77
Leg	2,82
Loin including chump	3,26
Loin excluding chump	2,98
Belly extra without trimmings	2,98

 

 

Finland

 

Danish genetics

 

DanAvl signed an agreement to export breeding boars to AI stations in Finland, which are going to serve approximately 100,000 sows.  For a start, it is just boars that deliver better Danish genetics to the pig producers in Finland as veterinary restrictions prevent DanAvl from exporting female pigs to Finland. Hereby, DanAvl at last gained access to the Nordic market, and the company expects to expand its exports to the Nordic region over the coming years. (Source: Landbrugsavisen)

 

 

Germany

 

Market

 

Production and trade volume in large parts of Northern Germany have been reduced due to the autumn holidays in the region causing the trade with pork to be rather subdued.There are hardly any changes from last week and the situation is only expected to change after the end of the holiday season. Shoulders and bellies are marketed well. Loins and filets are sold in good quantities but at too low prices. The market for sows for slaughter remains unchanged. An average level of demand is met by sufficient supply and prices have remained stable. (Source: AMI)

 

Tönnies' lead increases

 

The Rheda based group slaughtered 15.4 million pigs in 2011. Group turnover has now reached €4.6 billion, making it the largest meat business in Germany and one of the largest businesses overall. The 8,000 employees on four sites export 55% of their production. The gap with Vion is widening. The Dutch group slaughtered 10.3 million pigs in 2011 with 4,905 employees on 43 sites. Some 32% of production is exported. Westfleisch keeps the third place with 7.16 million pigs, 2,000 employees and 41% of production exported. Then follows Danish Crown (3 million pigs), Vogler (2.15 million pigs) and Müller, Böseler, BMR, Tummel and Gausepohl (all around 1.3-1.5 million pigs). All large groups bar Vogler increased their turnover in 2011. (Source: AFZ)

 

Pork prices Hamburg Market Week commencing 08 October 2012
Cut name	Price range (Euro/Kg)
Round cut leg	2,45/2,60
Leg (boneless, rindless max fat level 3mm	3,35/3,50
Boneless Shoulder	3,00/3,05
Picnic Shoulder	2,45/2,55
Collar	2,75/2,90
Belly (bone in, ex-breast)	2,70/2,80
Sheet Boned Belly (rindless)	2,55/2,75
Jowl	1,65/1,85
Half Pig Carcasses U class.	2,33/2,43

 

 

Ireland

 

Olhausen ceases trading

 

The well-known German style sausage producer that has operated for 100 years has ceased trading. The company employed 160 staff. It was one of the very last German pork business that was set up before the First World War when hundreds of pork butchers migrated from Germany to the British Isles. (Source: various)

 

 

Jamaica

 

Innovative response to pork glut

 

In order to solve the current pork glut, promoters are organising an all day and night pork festival in Montego Bay with the input of local bands. Earlier, Farming Minister Roger Clarke encouraged Jamaicans to eat more pork to help with the current oversupply. (Source: The Gleaner)

 

 

Netherlands

 

Supermarkets' meat offer

 

Despite wide variations in quality of the fresh meat offer, all supermarkets fare well with consumers, according to new research by Deloitte with all scoring from 7.3 to 7.8, out of 10. Still, Jumbo and Albert Heijn Extra score best. (Source: Deloitte)

 

 

Norway

 

Increased import duties

 

Farmers' pressure has led to an increase of import duties for meat and cheese. We are trying to ascertain what the implications are. Obviously, consumers' associations, retailers, importers and exporters are upset. Denmark and the European Union have registered protests for breaking trade agreements. (Source: various)

 

Norwegian farming policy

 

The Norwegian agricultural policy is strictly governed according to the domestic demand however it can be a difficult discipline to produce exactly the amount of butter, tenderloins or cheese that the market demands. Next year, pork production in Norway is expected to increase by 2% to 135,000 tonnes, while the Norwegians are expected to consume no more than 131,600 tonnes. Further, Norway usually allows an annual import quota of 2,000 tonnes of pork, so the surplus is expected to be even larger. (Source: Markedsnyt for Svinekoed)

 

 

Russia

 

ASF in pork products

 

According to Rosselkhoznadzor, a consignment of bacon produced by Lipetsk JSC Meat Master and sold at an Agricultural Fair in the Leningradskaya region was found to carry the ASF virus.  Consumers were urged not to feed the products to animals without prior heat treatment and not to dispose of them unless disinfected. It is the first officially confirmed case of ASF-contaminated pork slipping through to the shops in Russia. (Source: retail.ru)

 

New pig-breeding complexes

 

Agro-Belogorye holding launched five new pig-breeding complexes in the Belgorodskaya region, bringing the total number of pig breeding units in different regions up to 17. Total production capacity of the new complexes will be 30,000 tonnes of pork per year, increasing the total production capacity of the holding to 135,000 tonnes.(Source: Kazakh-Zerno)

 

Imported Pork Markets (October 7)
Moscow	St.Petersburg
Leg (with bone): USD 4.47 /kg	Leg (no bone): USD 5.5 /kg
Liver: USD 1.60/kg	Loin (with bone): USD 5 /kg
　	Liver: USD 1.54/kg
(Source: Meatinfo.ru)

     

 

Switzerland

 

Environment conflict

 

A new study of the environmental balance sheet of pork, poultry and beef production from Agroscope Reckenholz-Tänikon confirms that organic and extensive systems in Switzerland and other countries have a higher carbon footprint than more intensive farming. (Source: AFZ)

  

  

Thailand

  

Betagro expands

  

The Thai giant has invested £13 million in a new pig farm and feed plant in Cambodia. The farm was stocked with 1,500 parent gilts. The company has also invested in a smaller pig farm in Laos. It plans to build an abattoir there. The group is also looking at opportunities in Myanmar. Regarding Thailand, it is building a new high health pig farm in Lopburi province that will house 2,500 GPs, an investment of £2 million. It is expanding its Lopburi abattoir at a cost of £6 million to a capacity of 2,400 pigs per day. Presently, Betagro operates three other smaller abattoirs and will open a small plant in Krabi province for a total capacity of 1,200 pigs per day. In 2011, Betagro had a turnover of £1.2 billion, the great majority poultry and feed production. (Source: Asian Pork)

USA

           

Possible bankruptcies

     

Chris Hurt from Purdue University believes that the high financial stress pig enterprises will be facing over the next two quarters could lead to bankruptcies in the industry. Recent figures point to a rebound of grain and soy prices in 2013 and even of possible shortage (Source: Pork Network)

   

    
US$1 = EUR0.77 (Oct. 16, 2012)