October 28, 2013
BPEX Export Bulletin– 25 October 2013 (Week 43)
This week's export news
Latest customs data shows continued growth for UK pork exports. August shipments were 6% higher than year earlier levels. Exports to Greater China were nearly a third higher than a year ago and accounted for 22% of the total export market. At the end of August, year to date volumes were 20% higher than year earlier levels. In the January to August period, pig meat offal shipments increased by 30% on the year. Demand for sausages was again evident, shipments in the 8-month period totalled 6,700 tonnes, 6% higher on the year.
France
Madrange's come back
Over the past 12 months, the charcuterie market has increased by 2.5% in value, Fleury-Michon remains the largest contributor to added value in this market with an increase of 6.8%. Fleury-Michon represents 12% of the market in value terms. Standard own brands represent 48% of the market in value and economy range own brands 5.2%; Herta remains the second player with 10.9% and Aoste third with 2.8%. Interestingly, Madrange is coming back with an increased turnover of €11.8 million (+26.5%) representing 1.1% of total charcuterie market share in value.
Competitiveness down
Last June, the Federation of charcuterie processors (FICT) pointed to the paradoxical situation of the industry, turnover increased in 2012 (following two years of stagnation) but net margins decreased. Volumes increased by 3.3% in 2012 with the share of imported products increasing from 9.8% in 2007 to 12.1% last year. The price ex-factory increased by 3% over the year but by only 4% over the last decade, inflation reached 18% over the same period. Increased costs to the industry have not been passed on to the retail sector. Exports have also decreased. Competitiveness of the industry decreased from around 3% to 4% in the 1980s to only 0.5% in 2011 before becoming negative in 2012. This situation is reflected by the loss of 1,000 jobs over the last two years, not including the recent dramatic restructure of Gad with the loss of a further 889 jobs cut.
Markets
Pigs
The slowdown in prices last Monday in Plérin was less marked than in previous weeks, falling by €0.005. According to "Marché du Porc Breton" in order to reverse this trend, demand must improve.
Piglets
Prices are sometimes higher and sometimes lower, depending on demand. FNP-FNCBV prices continue to decrease. Last week, they lost €0.10 for 25kg pigs and €1.77 for 8kg piglets.
Cuts
Meat market professionals are being pulled in two directions: weak French consumption and firmer export demand albeit at lower levels. In the medium-term, stability for prices cannot be excluded.
|
Pork prices Rungis - Week commencing 21 October 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Back fat, rind-on |
0.70 |
|
Trimmings |
1.64 |
|
Leg |
2.40 |
|
Loin including chump |
2.92 |
|
Loin excluding chump |
2.67 |
|
Belly extra without trimmings |
2.65 |
Denmark
Pig quote increase in 2014
Danish Agriculture & Food Council, Pig Production department, Market analyst, Karsten Flemin released a new forecast for the pig quote. According to the forecast in 2014 the average pig quote will be €1.541 per kg, €0.028 more per kg than the projected 2013 average price. This forecast would generate an additional €53.3 million for Danish producers. However, forecasts are somewhat uncertain, a year ago the 2013 forecast was €1.60 per kg while it is now predicted to be around €1.513 per kg. There are several reasons for the shortfall, including no barbecue weather, negative currency movements and the decrease in Russian imports of pig meat, according to Karsten Flemin. (Source: Landbrugsavisen)
Larger piglet exports to Poland
Over the past two years, the share of Danish piglet exports destined for Poland has doubled and now accounts for a quarter of the total market. The market in Poland is increasingly important. Over the latest year Poland has had a strong influence on the price. In 2011, 75% of Danish piglet exports were to Germany with 11% heading for Poland. In 2013, 66% have been to Germany with 25% going to Poland. (Source: Landbrugsavisen)
Danish Crown expands in Sweden
Danish Crown's Swedish subsidiary, KLS Ugglarps, is expanding. According to Swedish ATL in Trelleborg the company is applying for environmental approval to slaughter 8,800 pigs weekly, up from the current 5,000 and in Kalmar KLS wants to increase slaughterings of all species. (Source: Landbrugsavisen)
Markets
On European markets, the trade remains stable for fresh legs and other cuts which are sold at similar price levels. Exports to the British bacon market remain stable and unchanged. On third-country markets, activity is reported to be good with stable exports to Russia, China and Japan.
|
Danish Slaughterhouses - payments week commencing 21 October 2013 | ||
|
Slaughterhouse |
Danish Crown |
Tican |
|
Slaughter pigs (70.0 – 86.9 kg) |
Euro 1.588 |
Euro 1.588 |
|
Difference to last week |
unchanged |
unchanged |
|
Sows (Above 129.9 kg) |
Euro 1.159 |
Euro 1.159 |
|
Difference to last week |
unchanged |
unchanged |
|
Boars (Above 109.9 kg) |
Euro 1.027 |
Euro 1.027 |
|
Difference to last week |
unchanged |
unchanged |
Germany
|
Pork prices Hamburg Market Week commencing 21 October 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Round cut leg |
2.45/2.65 |
|
Leg (boneless, rindless max fat level 3mm |
3.30/3.50 |
|
Boneless Shoulder |
2.60/2.75 |
|
Picnic Shoulder |
2.10/2.30 |
|
Collar |
2.60/2.75 |
|
Belly (bone in, ex-breast) |
2.40/2.60 |
|
Sheet Boned Belly (rindless) |
2.45/2.65 |
|
Jowl |
1.35/1.65 |
|
Half Pig Carcasses U class. |
2.14/2.24 |
Spain
Where is Spanish production heading?
The number of pigs in Spain is in constant decline, having fallen from 82.6 million in the April 2007 census to 69.6 million in January 2013. In contrast, extensive production has remained stable around 13.5 million. Mixed systems show a small increase at two million head. Increased productivity has so far compensated for the fall in numbers with a record 3.5 million tonnes in 2012. (Source: Eurocarne)
Incredible Northern Catalonia
The two provinces of Girona and Barcelona account for 71.6% of the total Spanish exports of 1.157 million tonnes. Strong 'pig countries' like Lleida, Burgos, Huesca and Saragoza only account for 17% together. (Source: Eurocarne)
Grupo Jorge invests
The Zaragoza concern is investing €15.5 million in its Zuera plant. Slaughter capacity has increased to 10,000 head per day and cutting to 5,000 per day. (Source: Eurocarne)
Additive with PDO?
Cochineal from the Canarias, the expensive insect-based red taint widely used in meat products for decades has applied for Protected Denomination of Origin status. The islands have their own subspecies Dactylopius coccus. Technically, the carminic acid content would need to be more than 18%, giving the product a higher tinctorial capacity than competing products from Peru and Mexico. In addition, cochineal has strong antiseptic properties that need to be relativized in view of the low content in the end product. (Source: Eurocarne)
Alliance for R&D centres
Spain has a unique network of regional meat R&D, centres including Teica (Andalucia), CTC (Galicia), Asturias (Asincar), Extemadura (CTA-EX) and La Rioja (CTIC). These provide valuable support to local SMEs. They are creating a 'technological alliance' with the added participation of the Portuguese research centre of the Baja Alentejo. In another technical development, Martinez Loriente has built a pilot plant near Valencia. Finally, the national meat association ANICE has signed an agreement with Universitad Complutense de Madrid for the development of an institute (Visavet) which will cover microbiological studies and surveys for meat production and processing including microbial resistance and will be used as a reference laboratory for meat. (Source: Eurocarne)
|
Pork prices Barcelona Market Week commencing 21 October 2013 | |
|
Cut Name |
Price range (Euro/Kg) |
|
Gerona Loin Chops |
2.65/2.68 |
|
Loin Eye Muscle |
3.58/3.61 |
|
Spare Ribs |
3.03/3.06 |
|
Fillets |
5.53/5.56 |
|
Round Cut Legs |
3.18/3.21 |
|
Cooked Ham |
2.79/2.82 |
|
Rindless Picnic Shoulder |
1.82/1.85 |
|
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 |
0.78/0.81 |
Italy
Cinta Sinese pork
Fresh pork from the Tuscan pig breed is increasingly sold in pre-packed form at retail in Italy, trying to emulate the development of Iberian pork. Although the product is well presented, it does not measure in terms of butchery and muscle choice, with the pork looking excessively fat. However, this represents a useful development in a stale category. (Source: own)
Slovenia
National pork scheme
Slovenia now has its own national pork scheme called "PIGI" with farm assurance standards and minimum 56% lean meat content for the carcase. (Source: Slovenian Ministry of Agriculture)
Russia
Irish consignment detained
At customs control in St. Petersburg port, Rosselkhoznadzor detained 24 tonnes of frozen pig offal being imported to the Russian Federation from Ireland. During inspection, officials found that the dates of production indicated on the boxes of products did not correspond to those indicated on the veterinary certificate. Also, the shelf life indicated on the English label is 24 months which did not correspond with the label in Russian indicating 12 months. Until the Veterinary Service of Ireland provides an explanation and the results of laboratory tests are received the offal remains detained. (Source: fsvps.ru – the official Rosselkhoznadzor website).
Ukraine
Meat imports
According to forecasts from the Ministry of Economic Development and Trade, imports to Ukraine from the start of 2013 to 1 October totalled 254,000 tonnes of meat and meat products, including 170,000 tonnes of pork. (Source: latifundist.com)
Brazil
Lower exports
Exports of pig meat from Brazil have decreased over the first 9-months of the year and are 10% lower compared with the first nine months of 2012. Lower exports are primarily due to a 45% fall in shipments to the Ukraine due to the latest import restrictions. Exports to Russia increased by 6% on the year, Russia is the largest importer of pig meat from Brazil. Exports to Hong Kong increased by 2% in 2013. Brazil's exports had a value of R$1.95 billion in the 9-month period. (Source: Markedsnyt for Svinekoed)
Mexico
US-backed pork campaign
The US Meat Export Federation campaign (USMEF) designed to improve Mexican consumers' perceptions of pork – and raise consumption levels - is generating positive results after its launch two years ago. The USMEF campaign is funded through a broad-based coalition that includes Indiana Soybean Alliance, Indiana Corn Marketing Council, Illinois Soybean Association, United Soybean Board, Pork Checkoff and the USDA Market Access Program (MAP) and focuses on 25-45 year olds. Mexicans currently consume about 16kg of pork per person each year. While Mexico is about 65% self-sufficient in pork production, the United States supplies the lion's share of imports - about 90% - and is well positioned to gain from a growth in Mexican pork consumption. Some key results include: a 23% increase in consumers reporting pork consumption over the past month (from 52% to 75%), improved association between pork and good nutrition and health (from 31 % to 58%). In addition, feedback is very positive from Mexican retailers participating in the campaign. Soriana, the second-largest supermarket operator in Mexico with more than 600 stores, reported that its pork sales jumped 58% in the first year of its participation in the campaign.
Philippines
EU exports rising
According to European Commission statistics, pork exports to the Phippines could exceed 100,000 tonnes this year, making the country one of the major markets for EU pork. (Source: European Commission)
China
|
Chinese wholesale prices week commencing 21 October 2013 | |||
|
|
Price (RMB/Kg) |
£/Kg |
change on week |
|
Pig Carcase |
22.70 |
2.30 |
-0.01 |
|
Source: BOACL | |||
|
Prices collected from wholesale markets in 36 medium and large Chinese cities | |||
