October 30, 2012
BPEX Export Bulletin - October 2012 (Week 43)
This week's export news
At SIAL, the world's largest food and meat fair held in Paris this week, the mood in the meat hall for short-term prospects was ambivalent. Now that Russia has filled its quota, reduced exports there are effectively balancing the current shortage in Central Europe.
Some Continental processors are reportedly freezing pork. However, higher prices are generally seen as unavoidable despite supermarkets trying to limit increases to their purchase price. A major German retail buyer was quoted as being worried about possible shortages of pork in the New Year - a rare admission from a supermarket chain. Three English pork product manufacturers were at the Paris fair and all reported brisk business.
Around 300 guests attended the traditional English Meat Dinner held at SIAL, which is jointly sponsored by BPEX and EBLEX and now in its 23rd year. Guests included buyers from South Africa, Canada, the Far East and many European countries and everyone complimented the English hospitality.
Denmark
Market
Most European markets remained stable resulting in current prices remaining unchanged, despite some pressure on German quotes. Prices of legs and shoulders were similar while collars met reduced demand being out of season. Loin and belly availability is reported as satisfactory, making good prices. There is good demand for bacon to the UK at stable prices. (Sources: Danish Crown, Tican, Danish Food Council).
Decline in EU production leads to predicted higher pig prices
Agro Markets, like many analysts, are predicting higher pork prices in 2013 in their latest weekly update. The analysis focused on the relationship between EU pig production and prices over time. Agro Market concluded that next year pig prices are expected to increase by 11.5% based on a 2% fall in EU pig production, they stress that the estimate is based on a simple calculation model. (Source: Landbrugsavisen)
Supermarket negotiations
Negotiations between supermarket chains and processors remain fierce. Neither supermarkets nor processors have made comment on annual negotiations. President of the Manufacturers Association (DLF), Niels Jensen says, "supermarket chains tighten the thumbscrews on producers; negotiations are not on fair terms as the major retailers use their power to squeeze margins". (Source: Borsen)
Tican bought fewer pigs from non-members
In 2011-12 Denmark's second largest meat company, Tican, reported a decline in slaughterings of 1.4% or 24,500 head. During the year, Tican slaughtered 1.765 million pigs, lower pig numbers in Denmark were one of the drivers behind the decline. At the same time, Tican souced fewer pigs from non-members. (Source: Tican)
|
Danish Slaughterhouses - payments week commencing 22 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 |
|
Boars (Above 109.9 kg) |
Euro 1.095 |
Euro 1.095 |
|
Difference to last week |
Unchanged |
Unchanged |
Germany
|
Pork prices Hamburg Market Week commencing 22 October 2012 | |
|
Cut name |
Price range (Euro/Kg) |
|
Round cut leg |
2.40/2.55 |
|
Leg (boneless, rindless max fat level 3mm |
3.25/3.45 |
|
Boneless Shoulder |
2.90/3.00 |
|
Picnic Shoulder |
2.40/2.50 |
|
Collar |
2.40/2.65 |
|
Belly (bone in, ex-breast) |
2.65/2.80 |
|
Sheet Boned Belly (rindless) |
2.50/2.75 |
|
Jowl |
1.60/1.85 |
|
Half Pig Carcasses U class. |
2.25/2.35 |
France
Return to basics
The economic crisis has a positive impact on retail sales of charcuterie products such as cooked ham, pâtés, rillettes and saucissons, but also on sales of lardons. Over the first seven months of the year, the total retail charcuterie market increased by 4.2% in value and by 1.1% in volume. Best scores were in value are: cooked ham (+10.1%), prepared charcuterie meals (7.5%), culinary aids, mainly lardons (+6.9%) and thin coarse sausages (+6.9%).
Cooperl in the race
The pig cooperative Cooperl Arc has launched a new range of microwaveable prepared meals. These include five pork based recipes with pork kidneys, pork tongue, pork cheek (eye of), and a blanquette (stew with sauce) with shoulder or neck cuts. Each of the prepared meals contains 52% to 60% meat content which is quite unusual. Cooperl is now clearly confirming its interest in further processing with significant production capacity, recently increased by the purchase of the ex Socopa factory in Lamballe. In terms of marketing, the Cooperl brand still needs to be clearly positioned and promoted.
Bigard-Disney
A new co-branded proposition has been launched by Bigard for mini sausages with no colouring or preservatives which are attractively packaged for marketing.
Pigs
A slowing of prices is planned on Thursday in Plérin. Demand at abattoirs remains very quiet. This is no surprise at the end of month and no revival is expected until at least November.
Cuts
Combined with current low activity, slaughtering for cuts is under pressure from retailers. Prices are low. This tendency will only come to an end with stabilisation of prices for pork butchers in France as in the rest of the EU.
|
Pork prices RUNGIS week commencing 22 October 2012 | |
|
Cut name |
Price range (Euro/Kg) |
|
Back fat, rind-on |
0.85 |
|
Trimmings |
1.76 |
|
Leg |
2.61 |
|
Loin including chump |
3.23 |
|
Loin excluding chump |
2,90 |
|
Belly extra without trimmings |
2.98 |
Spain
|
Pork prices Barcelona Market Week commencing 23 October 2012 | |
|
Cut Name |
Price range (Euro/Kg) |
|
Gerona Loin Chops |
2.78/2.81 |
|
Loin Eye Muscle |
3.83/3.86 |
|
Spare Ribs |
3.03/3.06 |
|
Fillets |
5.43/5.46 |
|
Round Cut Legs |
2.93/2.96 |
|
Cooked Ham |
2.75/2.78 |
|
Rindless Picnic Shoulder |
1,95/1.98 |
|
Belly |
2,54/2.57 |
|
Smoked Belly with Spare Rib Section Cut off |
2,97/3.00 |
|
Shoulder chap or Head Jowls |
1.48/1.51 |
|
Back Fat, Rindless |
1.23/1.20 |
Russia
Trichinosis-infected pork in Krasnoyarsk
According to The Federal Service for Control in the Sphere of Protection Consumers' Rights and Public Well-Being (Rospotrebnadzor), 21 people have been infected and one person has died after consuming Trichinosis contaminated pork. Veterinary experts say that there is no reason for introducing full quarantine, but consumers should refrain from buying pork until more details are available. (Source: Pigprogress.net)
Pigs slaughtered in Krasnodarskiy Krai due to ASF
The veterinary services of Krasnodarskiy Krai have slaughtered 500,000 pigs since the beginning of 2012 to prevent the spread of ASF. The pig population in Krasnodarskiy Krai has declined threefold compared with 2010 numbers. (Source: foodcontrol.ru)
Ukraine
Small fall in pig numbers
According to the National Statistics service, the Ukrainian pig population at 1 October 2012 stood at 8,089,000 head, only a slight decrease of 0.7% compared with year earlier levels. 3,635,000 pigs are bred on pig-farms with 4,453,000 pigs being bred in private households. Donetska Oblast is the largest breeder with 588,300 pigs. (Source: PigUa.Info)
Liveweight pig sales
According to the National Statistics Service, during the January to September period this year, Ukrainian agricultural companies sold live pigs totalling 297,354 tonnes. The average selling price for pigs was UAH6.211 per tonne (US$1.985 per tonne). Processors purchased 57% of the total with the balance being sold to different retail chains and shops. (Source: PigUa.Info)
US$1 = EUR0.78 (Oct 30, 2012)
