December 9, 2013
BPEX Export Bulletin– 6 December 2013 (Week 49)
This week's export news
We visited India this week at the invitation of UKTI to study the possibility of exporting pork products there, as we enjoy a new working export health certificate. We are also pushing for the re-opening of the market to British breeding pigs. We last exported porcine genetics to India in 1984. There is a shortage of meat in India, particularly of pork products of Western safety standards and growing demand for the expanding middle classes. The mission included a small agri-tech and livestock conference in Chandigarh, the capital of wealthy Punjab and a number of meetings and interviews.
France
The Workers union FGTA-FO, has managed to reach an agreement with CECAB by which extra compensation will be paid by the cooperative. Olivier Le Bihan, the new General Manager of the plant (replacing Christophe Peter), said the causes of the disaster are:
-
Loss of expertise with departure of Gad family and executive managers
-
Drop of 6% of sales in volume since 2009 (especially with Auchan and Intermarché)
-
Reduced turnover at Brocéliande (dry charcuterie) following the take-over by CooperlNet
- Loss of €13 million in 2010 and €19.3 million in 2012
The debts have been reduced by €35 million (Cecab). 70% of debts are with social and fiscal organisation, as well as financial organisations over 10 years, also there has been an extension of suppliers' debts for 10 years
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A contract for slaughtering of 40,000 pigs per week
- €35 million investment in improved cutting equipment.
Trend of the charcuterie market
Pigs
|
Pork prices RUNGIS week commencing 2 December 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Back fat, rind-on |
0.70 |
|
Trimmings |
1.53 |
|
Leg |
2.75 |
|
Loin including chump |
2.78 |
|
Loin excluding chump |
2.59 |
|
Belly extra without trimmings |
2.60 |
Netherlands
With the economic recovery in sight, Dutch consumers are more positive with the confidence index moving from - 44 in February to -18 in November. A separate study by Vion shows that the image of meat is up again with buyers increasingly interested in the Dutch origin of the product. (Source: various)
Denmark
A new Danish Crown company needs to find new outlets for by-products that would otherwise be disposed of or sold very cheaply, including blood, hides, fat and bone. Achieving higher by-product value is part of the seven point Group Strategy. Danish Crown has established a subsidiary under the intestinal company DAT-Schaub with its own director and a group of employees who will be working across the many Danish Crown companies, both at home and abroad. The new company will work across all fields including pigs and cattle. (Source: Landbrugsavisen)
On European markets, the Christmas trade is now well underway. There is a good demand for legs, shoulders and fore-end cuts at slightly higher prices. On the UK bacon market, the situation is stable. For exports further afield to Russia, China and Japan, demand is also reported as stable.
|
Danish Slaughterhouses - payments week commencing 2 December 2013 | ||
|
Slaughterhouse |
Danish Crown |
Tican |
|
Slaughter pigs (70.0 – 86.9 kg) |
Euro 1.588 |
Euro 1.588 |
|
Difference to last week |
0.027 |
0.027 |
|
Sows (Above 129.9 kg) |
Euro 1.093 |
Euro 1.093 |
|
Difference to last week |
0.027 |
0.027 |
|
Boars (Above 109.9 kg) |
Euro 0.960 |
Euro 0.960 |
|
Difference to last week |
0.027 |
0.027 |
Germany
Having failed to sell its frozen food convenience operation, Vion has decided to close the Wunstorf factory with the loss of 163 jobs. (Source: Vion)
|
Pork prices Hamburg Market Week commencing 2 December 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Round cut leg |
2.35/2.60 |
|
Leg (boneless, rindless max fat level 3mm |
3.25/3.45 |
|
Boneless Shoulder |
2.55/2.75 |
|
Picnic Shoulder |
2.10/2.28 |
|
Collar |
2.55/2.70 |
|
Belly (bone in, ex-breast) |
2.40/2.55 |
|
Sheet Boned Belly (rindless) |
2.35/2.55 |
|
Jowl |
1.45/1.65 |
|
Half Pig Carcasses U class. |
2.11/2.21 |
Spain
The major Chinese processor has obtained a £800m credit line from the Bank of China and could well bid for the totality of the Campofrio business, according to Spanish daily El Mundo. (Source: El Mundo)
|
Pork prices Barcelona Market Week commencing 2 December 2013 | |
|
Cut Name |
Price range (Euro/Kg) |
|
Gerona Loin Chops |
2.53/2.56 |
|
Loin Eye Muscle |
3.33/3.36 |
|
Spare Ribs |
2.93/2.96 |
|
Fillets |
5.53/5.56 |
|
Round Cut Legs |
2.98/3.01 |
|
Cooked Ham |
2.69/2.72 |
|
Rindless Picnic Shoulder |
1.75/1.78 |
|
Belly |
2.24/2.27 |
|
Smoked Belly with Spare Rib Section Cut off |
2.67/2.70 |
|
Shoulder chap or Head Jowls |
1.20/1.23 |
|
Back Fat, Rindless |
0.65/0.68 |
USA
The number of new cases has risen to a record 117 for week ending 17 November from 92 the previous week. The total number of herds affected has now reached 1,279. The epidemic is expected to keep expanding with the cold weather. (Source: American Association of Swine Veterinarians)
South Africa
Another new outbreak has struck the Mozambican border region. (Source: OIE)
China
The top ten pig producers still only represented 1.4% of Chinese sow population at the end of 2011. Among the main players feature Wens Family Farms with 350,000 sows, Luo Niu Shan with 60,000, Muyan with 50,000, Chaï Taï Conti 50,000, Zhengbang 45,000, Cofco 30,000, New Hope 20,000 and Shuanghui with 16,000 sows. Chaï Taï Conti is a co-venture between CP from Thailand and Conti Group from the USA; it is reputed to be the largest feed manufacturer in China. (Source: Porc Magazine)
Russia
Cherkizovo, the largest meat producing and processing company in Russia, has published its financial results for January-September of 2013. The data shows the consolidated revenue of the company for the period reached US$1.195 billion, 5% more than during the same period in 2012. However, specifically in the third quarter of the year, the gross income decreased by 26% and amounted to US$89.6 million compared with US$120.6 million in 2012. The company cites one of the biggest achievement this year as the three new pig-producing complexes, launched in 2012, reached full production capacity. This has allowed considerable increases in pork production, during the nine-month period by 59%. (Source: Pigua.info)
US$1 = EUR0.72 (December 9, 2013)
