December 4, 2012

                                                                                           

BPEX Export Bulletin-November 2012 (Week 48)

 

 

This week's export news

 

Eurotier demonstrated, once again, that it remains the most important livestock show in the world. British pig breeders were out in force. A dinner was organised in honour of the Chinese Animal Agricultural Association (CAAA), as has been the case at the last three Eurotier shows.

 

 

Germany

 

Frightened by the 2 Euros limit?

 

German retailers and processors are worried by the psychological impact that €2.00/kg of carcase will have. German consumers have reacted badly to high pork prices. It must be remembered that despite their wealth, German consumers are amongst the most price-conscious in the EU. At the moment, the market is heading down. (Source: BPEX)

 

Pig price under pressure

 

Due to reduced retail demand and lower export volumes, pig prices in Germany are under pressure. Prices from the biggest German slaughter companies on Friday were reported at €1.73/kg, down €0.05 on the week. There is hope that the price will stabilise, as the supply of pigs is reported to be tightening.

 

Pork prices Hamburg Market Week commencing 26 November 2012
Cut name	Price range (Euro/Kg)
Round cut leg	2.30/2.45
Leg (boneless, rindless max fat level 3mm	3.15/3.35
Boneless Shoulder	2.80/2.95
Picnic Shoulder	2.32/2.45
Collar	2.40/2.60
Belly (bone in, ex-breast)	2.65/2.85
Sheet Boned Belly (rindless)	2.50/2.80
Jowl	1.60/1.75
Half Pig Carcasses U class.	2.15/2.25

 
Denmark

 

Tican wants to produce pigs

 

The co-operatively-owned company, Tican, is planning to start pig production. The increase in live piglet exports has resulted in declining slaughter pig numbers. "The aim is to produce 50,000 to 60,000 pigs a year in-house" said Tican's CEO, Ove Thejls. It is a model that has been used elsewhere in the world, and provides the opportunity to strengthen the growth and commodity basis at Tican. (Source: Tican)

 

Danish Crown helps pig producers invest in sow stables

 

Danish Crown is trying to curb the trend of declining pig supplies from finishers by offering a new grant to farmers wanting to invest in new sties with the aim of sourcing an additional 500,000 finished pigs annually. The company will offer €0.02/kg over five years for new housing and €0.01/kg over five years for conversions of piglet producing to finishing units. (Source: Landbrugsavisen, Danish Crown)

 

Friland has large exports

 

Over the last 10 years, Danish Crown's company for organic and loose-housed production, Friland, has doubled its turnover. In 2011-12 the turnover increased by 24% to €84 million. Higher exports of organic pig meat to Germany and loose-housed product to the important Australian market helped the increase. Friland reports that its total turnover from organic pig meat was €30 million. Exports of loose-housed pig meat increased by 42% with Australia accounting for as much 56% of total exports. (Source: Landbrugsavisen)

 

Market

 

Demand for Christmas products has started on the European markets including loins, bellies and legs. In contrast, forequarters, collars and shoulders are not selling as well. Demand is reported to be fine for loins, backs and bellies, where the buyers are building up stocks for the Christmas trade. The British bacon market is stable, and exports to the markets in Asia are satisfactory. Exports to Russia remain slow. (Sources: Danish Crown, Tican, Danish Food Council).

 

Danish Slaughterhouses - payments week commencing 26 November 2012
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 – 86.9 kg)	Euro 1.627	Euro 1.627
Difference to last week	+0.040	+0.040
Sows (Above 129.9 kg)	Euro 1.185	Euro 1.185
Difference to last week	Unchanged	Unchanged
Boars (Above 109.9 kg)	Euro 1.015	Euro 1.015
Difference to last week	Unchanged	Unchanged

 

France

 

Fleury Michon: a strong brand

 

Although the pace is slowing, the rate of growth of Fleury-Michon's turnover remains strong, increasing by 8.2% in the first quarter, up 7.2% in the second quarter with a further 6.2% increase in the third quarter of the year. Over the nine-month period, turnover increased by 7.2% to €516.9 million. For charcuterie products alone, turnover of Fleury-Michon increased by 9.9% over the third quarter of the year.

 

Charcuterie household purchases

 

In the rolling year ended October 7, household purchases of charcuterie products increased by 1.1% in volume, with the average retail price rising by 2.4% to €9.78/kg. Top sellers, in volume terms, were bacon up 14.4%, black pudding up 7%, lardons or belly mini cubes up 5.2%, poultry sausages up 5.1% and cooked ham up 3.6%.

 

Market

 

Piglets

Production costs are high and it's a difficult time for fatteners. The French market is stable, in a restricted market. Last week, FNP-FNCBV prices lost €0.04 for 25kg and €0.83 for post-weaning.

 

Cuts

 

Pork prices Rungis - Week commencing 26 November 2012
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.85
Trimmings	1.68
Leg	2.48
Loin including chump	3.02
Loin excluding chump	2.69
Belly extra without trimmings	2.84

 

Netherlands

 

Only 2% of Dutch pig holdings will not meet the 2013 deadline

 

The Secretary of State Verdaasin reports that 93% of holdings will comply with the regulations on sow housing, another 5% will close, leaving 2% of farms to adapt to the new standards. (Source: Boerderij Vandaag)

 

Tighter regulation in Brabant

 

The Province of Noord-Brabant wants to tighten rules regarding livestock production. On the other hand, the stricter rules must be workable and affordable. (Source: Boerderij Vandaag)

 

Vion sells non-strategic assets

 

The group has sold Pharmacaps, a US maker of gelatine capsules, to Canadian concern Patheon. It is also aiming to sell an important frozen vegetables and chip producer, Oerlemans, in the Netherlands, Poland and the UK, that it purchased in 2007. Vion is aiming to concentrate on core activities. (Source: Boerderij Vandaag)

 

For Farmers listed in 2016?

 

The owner of Hendrix and BOCM Pauls increased its turnover from €5.2 to €6.7billion, reports CEO Bert-Jan Rumpol. It produced 6.5 million tonnes of feed and is aiming to reach 10 million tonnes by 2016-17. Currently, the company's traded certificates are undervalued and the market for these is illiquid. (Source: Boerderij Vandaag)

 

Van Rooi introduces a sustainability index

 

The second largest Dutch processor has developed a new index in conjunction with LEI institute. It uses four 'P' components: Pig (health and welfare), Planet (environmental performance), Profit (economic performance) and People (working conditions) according to Marc van Rooi. Each component is scored between 0 and 9. Studying a sample of pig enterprises, the score for breeding farms stands between 11.6 and 19.3, for fattening farms, its stands between 10.6 and 19.7. Of course, there should be discussions if high scores are converted to high pig prices but this has not happened yet. (Source: Boerderij Vandaag)

 

Topigs unveils new feed efficiency strategy

 

Hans Olijslagers, Topigs' Technical Director unveiled the "Total Feed Efficiency" system in Berlin. This is a new calculator to evaluate feed efficiency in pork production. (Source: Boerderij Vandaag)

 

 

Belgium

 

Pork trade difficult

 

Lower export demand is leading to excessive offers of pigs and pork in the home market. The situation is described as difficult. (Source: Mercolleida)

 

 

Spain

 

New pork giant

 

The turnover of Càrniquès Celrà's cutting plant near Girona has risen to €150 million. Some 4,200 pigs are now cut daily for export and home markets. The firm is investing €18 million in a new 16,000 sq. metres extension, which will increase capacity to 6,000 pigs per day. (Source: Alimarket)

 

Martínez Loriente renovates its pork range

 

The Mercadona supplier is introducing Iberian pork chops, pig heads marinated in garlic and marinated roast pork for Christmas. The company hopes to market 500 tonnes of elaborated pork products, five times more than in 2011. (Source: Alimarket)

 

Fragile fresh pork consumption

 

Pork sales have stopped falling while processed pork sales have clearly recovered. The issue now, is the trading down in this category. (Source: Mercolleida)

 

Catalan subsidies

 

Catalonia has approved €8.6 million for the adaptation of 288 pig farms to the new norm on group housing of sows. (Source: Agrodigital)

 

Pork prices Barcelona Market Week commencing 26 November 2012
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.60/2.63
Loin Eye Muscle	3.53/3.56
Spare Ribs	2.98/3.01
Fillets	5.43/5.46
Round Cut Legs	2.73/2.76
Cooked Ham	2.59/2.62
Rindless Picnic Shoulder	1.84/1.87
Belly	2.54/2.57
Smoked Belly with Spare Rib Section Cut off	2.97/3.00
Shoulder chap or Head Jowls	1.28/1.31
Back Fat, Rindless	1.03/1.06

 

Italy

 

Market well balanced

 

The positive balance on the Italian market may be unsettled by heavier carcase weights, up 3kg, which may force abattoirs to decrease prices. (Source: Mercolleida)

 

 

Russia

 

Austrian pork returned

 

In Kaliningradskaya Oblast, officers from Rosselkhoznadzor detected irregularities of import regulations on a consignment of 20 tonnes of frozen pork by-products from Austria. During inspection, inconsistencies were detected in relation to the production dates indicated on the pallet and individual cartons. The goods were returned to the manufacturer. Inspectors also detected similar violations on documentation for a consignment of 27 tonnes of Canadian pork, the production date, on the veterinary certificate did not correspond with the labels and the consignment was banned. (Source: kaliningradnews.ru)

 

 

Belarus

 

Import restrictions from Moscow

 

The Belarus Department of Veterinary and Food Monitoring of the Ministry of Agriculture banned pork imports from Moscow, following the introduction of the pork import ban from Moskovskaya oblast (see bulletins passim). The ban covers the import of live pigs, pork, processed products derived from pigs, skins, other by-products, feed materials and equipment for breeding or slaughtering of pigs. (Source: PigUa.info)

 

 

Ukraine

 

Lower production

 

Pork production in October decreased by 4.3% to 14,000 tonnes, compared with the corresponding month a year ago, compared with September production was 15.7% higher. Total production in the January to October was 139,000 tonnes, 7.2% lower than in the same period a year earlier. (Source: PigUa.info)

 

 

USA

 

Record pig slaughter

 

US pig slaughter reached a record 10.86 million head in October, up 9% on 2011. (Source: USDA)

 

 

Dominican Republic

 

Pork consumption up

 

Despite recent scandals (see bulletins passim), pork consumption is rising. Pork consumption has now risen from 7 to 11kg per person per year (end product weight) plus 18kg of processed pork products. Like other Caribbean countries, poultry dominates at about 32kg per person per year. The number of sows has risen to 65,000, producing more than one million pigs per year. (Source: Noticias Centro Sur America)

 

 

Thailand

 

Pork claims

 

"Pathogen-free" Thai pork marketed in Hong Kong from Betagro is declared "free from antibiotics, harmful microorganisms, antibacterial chemicals, pesticides, beta-antagonists, growth hormones and preservatives". It is e-traceable, uses biodegradable trays and claims it obeys to international auditing standards.  (Source: S-Pure)

 

  

US$1 = EUR0.77 (Dec. 3, 2012)