November 18, 2013

 

BPEX Export Bulletin - 14 November 2013 (Week 46)

 

 

This week's export news

 

BPEX-EBLEX joined 38 British companies on the "Great British" pavilion at this week's FHC trade fair in Shanghai. Seven meat export companies were present on the jointly branded BPEX-EBLEX and reported strong enquiry from the market.

 

 

France

 

The scream

Because his boss did not offer guidance or adequate equipment to protect against pig screams, one employee of a pig farm recruited in 2001 became deaf in 2008. His condition was approved as a professional disability by a French court in September. The noise produced by the pigs reached 85 decibels…
 

No to Canadian pork in France

SNIV-SNCP is not too enthusiastic about the agreement signed on 18 October between the EU and Canada. The 83,000 tonnes of pig meat expected (at preferential import duty) on top of free access for processed products are seen as a threat by the French professional organisation. Pig meat imports from Canada could amount to a third of total French imports. SNIV-SNCP is also concerned about the lower requirements in Canada in terms of food safety, traceability, environment and animal welfare and the lower cost of production, some 25% below French costs. SNIV is calling for an active campaign through MEPs in order to avoid confirmation of the agreement, expected in 2015.
 

Go to China!

As only six French charcuterie processors have responded to FranceAgriMer in order to get an agreement to export to China, SNIV-SNCP is pushing its members to react, especially as an official Chinese delegation is expected to visit France soon.
 

Madrange still restructuring

Madrange decided to close three boning sites in the Limousin region. 136 jobs will be lost or transferred within 6 to 12 months. Within the last five years, 300 jobs have been cut in Haute –Vienne and today Madrange operates with 430 permanent staff and 120 outside workers.
 

Markets

Pigs

To the surprise of European operators, prices in Germany gained €0.03 last Friday. Belgian prices are stable while Southern European countries are looking for stability in their prices too. France, and possibly Spain, have not benefited from this, due to last Monday's Bank Holiday.

Piglets

On one hand, European offers are measured while, on the other, fatteners are very prudent. Prices in some countries are stable and slowing down in others. For the time of year, prices remain reasonably high.
 

Pork prices RUNGIS week commencing 11 November 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.70
Trimmings	1.60
Leg	2.46
Loin including chump	3.11
Loin excluding chump	2.61
Belly extra without trimmings	2.79

 

Germany

 

News of the Chinese ban

The German meat giants Westfleisch and Tonnies have concerns for their major export market of China. Some weeks ago, the Chinese authorities imposed a ban on imports of meat products from the Westfleisch Group. Then followed a provisional suspension for meat from Tönnies' main plant in Rheda-Wiedenbrück.

According to Chinese authorities, meat from plant Rheda-Wiedenbrück was wrongly labelled. Apparently, the English information has not been translated correctly into Chinese on bilingual labels. With Westfleisch, 20 ear tags were found in a shipment of 50 tonnes of whole pig heads.  According to the company, in early 2014 a Chinese delegation is expected to hold veterinary talks. Westfleisch hopes to end the ban after the visit of the Chinese delegation. Some analysts are pointing that downward on pressure pork prices in China may explain the harsh ban on exports from Tönnies' Rheda plant. The business is hugely profitable for Tönnies, accounting for around for 5% of total sales, especially the lucrative sale of prized China pigs trotters. (Source: Der Spiegel)
 

Increasing gap between pig and pork prices

The increase of the recommended pig price by €0.03 per kg last Friday came as a surprise to many market participants. Lower pig supplies are reported to be the main driver behind this increase, with processors unable to fill available capacity. However, meat marketers report low demand and are not able to pass on higher prices for most cuts. A number of the large slaughter facilities in Germany are still only offering €1.63 per kg.
 

Heparin production

Tonnies Group and Action Pharmaceuticals GmbH plan to jointly produce Crude Heparin, the raw material for anticoagulant. If the new modern plant works at full capacity, around 30% of Europe's raw material for heparin (mucosa) will be processed in Rheda-Wiedenbrück.
 

Pork prices Hamburg Market Week commencing 11 November 2013
Cut name	Price range (Euro/Kg)
Round cut leg	2.30/2.50
Leg (boneless, rindless max fat level 3mm	3.15/3.30
Boneless Shoulder	2.45/2.65
Picnic Shoulder	2.05/2.18
Collar	2.50/2.65
Belly (bone in, ex-breast)	2.35/2.65
Sheet Boned Belly (rindless)	2.30/2.60
Jowl	1.25/1.55
Half Pig Carcasses U class.	2.02/2.15

 

New strategy

In a new strategy, Danish Crown focuses on increased efficiency, increased global sales, higher prices and the establishment of new pig production abroad in order to get a better balance in its economy. In addition to higher prices and lower production costs, Danish Crown would also like to increase sales in Asia; the group has already been very successful in selling meat to China. Furthermore, there is a new company in the pipeline that will be responsible for the marketing of by-products. The strategic plan also includes plans for on-farm productivity improvements. (Source: JyllandsPosten).
 

New robot

Attec, the machine manufacturer, together with the slaughterhouses Tican and Danish Crown the Danish Technological Institute, have developed a new and advanced robotic cutting machine. The robot very accurately trims fat off pork loins, taking only four seconds per loin. The result is a more consistent product with less waste. The robot is being installed at Tican and Danish Crown (Source: Landbrugsavisen).
 

Stable pig population

Statistics Denmark has just published the result of the October pig count which shows a stable pig population in Denmark compared with a year ago. By October 2013, the total population was 1.2% lower than last year's count. The decrease is primarily due to a lower number of pigs above 50kg. Disregarding the group "finishers above 50kg", the total population is less than 1% lower on the year. For the breeding herd, the number of pregnant sows increased by 0.3%, while the number of first-time pregnant sows and gilts are respectively 3.2% and 5.8% higher than last year. (Source: Danmarks Statistik)
 

Market

On the European market, fresh legs are traded at slightly higher or stable prices as is the case for loins while shoulders and manufacturing meat are traded slowly at unchanged prices. There are stable exports to the UK bacon market. Markets outside Europe are reported as fine to China and Japan with stable sales to Russia.
 

Danish Slaughterhouses - payments week commencing 11 November 2013
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 – 86.9 kg)	Euro 1.561	Euro 1.561
Difference to last week	unchanged	unchanged
Sows (Above 129.9 kg)	Euro 1.066	Euro 1.066
Difference to last week	unchanged	unchanged
Boars (Above 109.9 kg)	Euro 0.933	Euro 0.933
Difference to last week	unchanged	unchanged

 

 

Spain

 

Russian developments

Rosselkhoznadzor has communicated the list of 15 abattoirs following the visit of 9 to 20 September for which the organisation "could study the lifting of temporary export restrictions, when detected breaches have been resolved". (Source: Mercolleida)
 

Fecic signs Chinese agreement

The Catalan Meat Federation (Fecic) and the Association of Importers and Food Markets of China (CAWA) have signed an agreement to develop relations between both organisations and create trust between Chinese importers and Catalan exporters (which export the great majority of Spanish pork). (Source: Eurocarne)
 

Pork prices Barcelona Market Week commencing 11 November 2013
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.53/2.56
Loin Eye Muscle	3.30/3.36
Spare Ribs	2.93/2.96
Fillets	5.53/5.56
Round Cut Legs	2.98/3.01
Cooked Ham	2.76/2.79
Rindless Picnic Shoulder	1.79/1.82
Belly	2.29/2.32
Smoked Belly with Spare Rib Section Cut off	2.72/2.75
Shoulder chap or Head Jowls	1.25/1.28
Back Fat, Rindless	0.70/0.73

 

Still overproduction

With no agreement on how to deal with the current situation of overproduction, analysts fear bankruptcies will occur particularly with the younger, recently established pig farmers. (Source: Nortura)
 

 

China

 

European processed pork products given access

Chinese authorities announced that two Danish Crown companies, Tulip in Svenstrup and Danish Crown in Faaborg, would be given permission to export processed meat products to China. This week, vice-chairman of Danish Crown's board of directors, Asger Krogsgaard, is visiting China together with Karen Hækkerup, Minister for Food, Agriculture and Fisheries of Denmark. (Source: Pig Progress)
 
US$1 = EUR0.74 (November 18, 2013)