November 19, 2012

                                                                                         

BPEX Export Bulletin-November 2012 (Week 46)

 

 

This week's export news

 

Pork exporters to Sierra Leone can now use Export Health Certificate 7522EHC, made available this week at Carlisle. Export enquiries for this African market have recently risen.

 

FHC Shanghai was satisfactory, although not as busy as the 2011 edition, on the joint BPEX-EBLEX stand. Foreign enterprise participation increased, particularly on the meat side. Pork from Belgium, Brazil, Canada, Chile, Denmark, Hungary, Lithuania, Spain, USA and the UK were on offer. Traders reported that prices for porcine by-products remain at a low ebb.

 

An unprecedented number of 47 British companies attended, as well as missions from the UK led by the new Secretary of State. Northern Ireland, Scotland and Wales were prominent at the fair. However, the show was stolen by the Northern Irish delegation, which included First Minister Peter Robinson, Deputy Martin McGuinness and Trade Minister Arlene Foster who presented a convincing case for Northern Irish food. The pork delegation was led by the main plants, together with the Northern Irish Pork and Bacon Forum.

 

Importantly, British pork was cooked for the very first time at a Chinese food fair. A photo will be made available on our website: www.eblex-bpex-export.org.uk

 

 

France

 

M. Le Foll rolls up his sleeves

 

"The pig industry needs to be modernised in order to strengthen its economic capacity, employment and to improve its environmental performance," Stéphane Le Foll, Minister of Agriculture, declared on October 30th. Following crisis in the poultry sector (the Doux bankruptcy), the French government cannot afford a similar crisis in the pig sector, which is already weakened by five years of turmoil. French pig production is expected to fall by between 2% and 3% in 2012 and by a further 5% or 6% in 2013. Dispensations for adapting to the new sow housing rules are being sought by farmers unions. Overcapacity at pig abattoirs is also a concern. The French food industry is facing testing times, with some experts anticipating job losses of 5,000 within months, including between 1,500 and 3,000 in the meat industry alone. Against this backdrop, the Ministry of Agriculture has set up four working groups with the objective of formulating a strategic plan by the end of January 2013. The recent 20% increase to the sanitary slaughtering tax is not perceived to be the best starting point by SNIV-SNCP.

 

Market

 

From the beginning of last week, the slowing of prices seems to have stopped. While supplies remain low, demand from abattoirs appears to have increased. However, they remain prudent, even if French consumption and exports have improved since October, as the market still appears calm for the time of year.

 

Despite a small improvement in the situation, operators are still concerned over their margins. There will be new promotional activity in the market, particularly for loins and chops. Demand for ham hasn't moved which impedes any price increases. On the export side, demand is dynamic for bellies while the Asiatic market remains calm.

Denmark

 

Danish fat duty

 

There are political indications that the Danish fat and sugar levy, introduced a year ago, is likely to be abandoned in the government's budget agreement, currently under negotiation. The tax was introduced to reduced consumption of fatty foods but reports suggest it has not worked. It has also shown to be a barrier for Danish food companies. (Source: Maskinbladet)

 

Market

 

  

 

Germany

 

Market

 

Prices have remained stable during the past week; grade E carcase prices were unchanged at €1.83 per kg. Demand ranges from moderate to brisk. The pig market can be described as well balanced from a supplier perspective. The piglet market is also well balanced with prices remaining stable nationally. Sow throughputs increased by 16% on the week which resulted in a small price fall.

Belgium

 

Carrefour to ban pork from castrated pigs

 

The major retailer has joined other Belgian supermarkets in requiring pork to be sourced from entire pigs. The measure is due to apply from 31 December 2013. (Source: The Pig Site)

 

 

Spain

 

Meat offensive

 

 

 

Slovenia

 

New PGI

 

Krăska Panceta has been awarded PGI status. It joins a growing band of Slovenian products including world-famous Krast Ham from the same region. (Source: European Commission)

 

 

China

 

Amazing China

 

On Singles' Day, a modern tradition created by Chinese students, people exchange gifts. Some 213 million people logged onto various Alibaba shopping sites spending RMB19.1 billion (£1.9 billion) in a single day. (Source: China Daily)

 

More amazing China

 

By 2020, some 20% of the Chinese population will earn incomes above US$40,000 per year compared with 12% today and therefore, considered to be "affluent". (Source: China Daily)

 

 

Japan

 

Imports: where's the UK?

 

Import tables do not show any UK sourced pork. However, the UK had exported 1,164 tonnes to Japan by the end of August. This is lower than other countries with similar levels of production to the UK. In January to September period, Ireland exported 5,300 tonnes, Austria 7,000 tonnes, Poland 14,600 tonnes and Finland 1,000 tonnes. In total, Japan imported 582,000 tonnes with the US, Canada and Denmark being the main sources. (Source: Markedsnyt)

 

 

Brazil

 

Warning for the industry

 

Analysts have confirmed the loss of competitiveness of pork due to its rise in price against beef. The beef price is now lower to the end consumer. (Source: Mercolleida)

 

 

Russia

 

New breeding complex

 

The Siberian Agrarian Group is planning to build a pig-breeding complex in Krasnoyarskiy Krai. Sberbank of Russia, have already approved credit of RUR4.4 billion, the amount necessary to implement the project.  Construction is due to begin in the spring of 2013. Target capacity for the complex is 216,000 pigs producing 24,800 tonnes liveweight annually. (Source: RIA Tomsk News)

 

 

Ukraine

 

Purchase price for pork increases

 

According to statistics from the Ministry of Agrarian Policy and Food of Ukraine, the average purchase price for pork increased by 1% during the last month. Early in November, the price reached UAH18,758 per tonne, equivalent to US$2,286 per tonne, which was up 1% on the month and 8% higher compared with year earlier levels.  The lowest purchase price was registered in Ivano-Frankivska oblast at US$1,706 per tonne and the highest in Sumska oblast at US$2,559 per tonne. (Source: PigUA.info)

 

 

US$1 = EUR0.78 (Nov. 19, 2012)