December 23, 2013

 

BPEX Export Bulletin– 20 December 2013 (Week 51)

 

 

This week's export news

 

As a successful exporting 2013 draws to a close, we wish our readers a happy and prosperous 2014.

Exporters should be aware of help available on the Internet. The site http://opentoexport.com from UKTI has a wealth of export resources. The 10 steps to export document https://www.fdf.org.uk/publicgeneral/FDF-10-Steps-to-Export-Success.pdf from the UK Food & Drink Exporters' Association and the Food & Drink Federation is also very valuable for new or inexperienced exporters.

 

 

Denmark

 

Tican expands UK range

Suffolk Crown, one of Direct Table Food's own brands, has expanded its range. As well as its classical back-bacon products a new range has been presented which includes ham steaks, bacon cubes and sausages wrapped in bacon. The products are sold by Tesco and Dairy Crest. (Source: Tican)

 

Research into new vaccine

The Danish Strategic Research Council has granted €1.5 million for a research project to develop a vaccine against PRRS using plants extracts. PRRS virus is the most important infectious disease with pigs worldwide and has a major impact on animal welfare and the agricultural economy. Substantial amounts of antibiotics are currently used to treat PRRS-associated respiratory problems. (Source: Landbrugsavisen)

 

Markets

The Christmas trade is almost over for most products on European markets. The consequence is lower demand, trading at slightly lower prices. Exports to both the British bacon market and to markets outside of Europe remain unchanged and stable.

 

Danish Slaughterhouses - payments week commencing 16 December 2013
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 – 86.9 kg)	Euro 1.534	Euro 1.534
Difference to last week	-0.027	-0.027
Sows (Above 129.9 kg)	Euro 1.013	Euro 1.013
Difference to last week	-0.80	-0.80
Boars (Above 109.9 kg)	Euro 0.880	Euro 0.880
Difference to last week	-0.80	-0.80

 

 

France

 

Locks are spotting France

Specialists in the belly trade to China and loins in Europe, the company of Philippe Van Damme has changed strategy, re-focusing on the home market, with added-value products. The company has organised sourcing of legs and shoulders to develop their range of products and also invested in a second Belgium site. The latest development was the purchase of Charcuterie des Flandres in Dunkerque (northern France), specialising in fresh sausages which help them to balance the carcase while opening the French market to the Belgian group. After a difficult start, orders are picking up with the development of a VPF range for French retailers and regional processed products, boosted by the recruitment of a new marketing manager.

 

CIWF approved

The French charcuterie manufacturer specialising in the supply of products for traditional counters in supermarkets has just been rewarded by CIWF. The company only buys free range pigs produced in Vendée and was one of three CIWF awards this year.

 

German organic ham

Martinshof is a German company specialising in fresh organic products has developed a range for French supermarkets: "La Ferme du Bio" includes 38 different organic and gluten free products. The objective of this medium-sized company is to compete with the leaders who currently fill supermarket shelves. Today, the company is listed with Auchan and Cora, but the new range of nine products at a fixed price of €1.00, will probably attract more French retailers. The "Ferme du Bio" range is also perfectly designed for drive-in stores.

 

Charcuterie processors in the red

The French federation of pig meat processing industry (FICT) is claiming that almost half of the industry is under threat, 2,000 jobs have been lost over the past two years. With increasing costs, processors' margins are now below 1%, way under retailers' estimated margins of around 9.1%.

 

Markets

After a general decrease in prices around the EU last week, the market in France also seems to have weakened. In Plérin, the 56 TMP base price lost €0.015 last Monday. Market activity this week should be good which should limit the Christmas effect with a positive start for 2014.

Piglets

Offers are a little weak which is good for prices. Nevertheless, due to the relative stability of prices at pork butchers; the FNP-FNCB prices lost €0.02 for 25kg pigs and €0.36 cents for post weaning piglets.

According to "Le Marché du porc Breton" exports from France to EU markets totaled 175,891 tonnes in the first nine months of the year. This represents a 3% increase compared with last year. EU28 exports remained stable at approximately 2.3 million tonnes.

 

Pork prices Rungis - Week commencing 16 December 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.70
Trimmings	1.54
Leg	2.72
Loin including chump	2.85
Loin excluding chump	2.60
Belly extra without trimmings	2.83

 

 

Netherlands

 

Vion again in the dock

Vion acknowledged and apologised to consumers that back in the summer of 2012 they sold 24 tonnes of legs labeled as organic, despite the fact that 11 tonnes of it came from non-organic production. The case has come up on the basis of a Dutch television program. In the broadcast, it was suggested that the Vion Encebe action was deliberate. This is denied by the firm who say that there was a single incorrect labeling issue that will not happen again. Farming paper Agrarisch Vandaag believes that the problem lies with shop floor practices and company culture rather than a swindle. (Source: various)

 

New vision for the sector

Sustainability is the cornerstone of the new joint strategy of NVV (the producers' Association), COV (the processors) and LTO (the main Dutch scientific body). This strategy clearly aims to wrestle back the initiative from Dutch retailers. (Source: Boerderij Vandaag)

 

 

Germany

 

Lower pig price to end 2013

The forecast for the forthcoming quotation for the German pig market is a likely reduction €0.06 to €1.54 per kg. Reduced slaughter activity over the Christmas period will result in the supply of pigs being higher than current demand. Although retail sales are reported to be strong, manufacturing and export demand is currently subdued. The producer price for E grade pigs in December 2013 is likely to level at €1.62 per kg, compared with €1.71 per kg in December 2012. The gross margin of fattening pigs for December is predicted to be €13 per head against €19 in November. To cover all costs, a margin of €15 to €20 per pig is required.

 

Lower prices at discounters

German discounters Lidl, Aldi North, Aldi South and Norma have slashed the prices of sausages and salami leading to Christmas. In Aldi, the price of premium 150g sliced salami has been reduced from €0.99 to €0.89. Desperation? (Source: AFZ)

 

Design award

The salami producer Olami has won the German design award with its new packaging of mini-salamis. See www.olami.de. (Source: AFZ)

 

More renewable energy for pig farmers

German pig and poultry farmers are betting on bio-gas, solar and wind energy. Some 73.9% of them produce their own energy according to Agridirect. (Source: Boerderij Vandaag)

 

Pork prices Hamburg Market Week commencing 16 December 2013
Cut name	Price range (Euro/Kg)
Round cut leg	2.35/2.55
Leg (boneless, rindless max fat level 3mm	3.25/3.45
Boneless Shoulder	2.45/2.70
Picnic Shoulder	2.00/2.20
Collar	2.50/2.70
Belly (bone in, ex-breast)	2.30/2.50
Sheet Boned Belly (rindless)	2.25/2.50
Jowl	1.40/1.60
Half Pig Carcasses U class.	1.99/2.09

 

 

Italy

 

New black pudding festival

Italy now has its own black pudding festival, following France, Spain, Belgium, Germany, etc. The event called Sangue blu took place recently in San Miniato near Pisa. (Source: Eurocarni)

 

 

Hungary

 

Fall of VAT confirmed

The government has lowered the rate of VAT on pigs and pig carcases from 27% to 5% in an attempt to reduce the black market trade. (Source: Agra Europe)

 

Major pork campaign launch

The Minister of Agriculture, Sándor Fazekas, has launched a major campaign to promote national pork. Hungarian pork consumption is now down to 25kg per person per year. The aim is to increase pork consumption by 12% in 2014. This forms part of a pig sector strategy that also includes the development of a national pork mark. (Source: Ministry of Rural Development)

 

 

Portugal

 

Exports rise

Portugal exported a record 27,000 tonnes of pork in the first nine months of the year. Spain (10,000 tonnes), Angola (7,000 tonnes) and Russia (2,000 tonnes) are the main markets. (Source: Agra Europe)

 

 

USA

 

Pork plan to 2020

The National Pork Board has named a new taskforce that will examine consumer needs, animal welfare, sustainable pork production and other challenges currently facing the industry to define a future vision of the levy spend and, on a larger scale, the entire pork industry for a five-year strategy to 2020. (Source: AgriNews)

 

 

Russia

 

Import restrictions justified

Rosselkhoznadzor is entitled to impose a ban on the import of meat and meat products from certain European Union countries which infringe the veterinary health standards of the Customs Union, according to the head of Rosselkhoznadoz, Sergey Dankvert. He says "We are seriously concerned, as the attempts to import meat product of unidentified origin from the EU take place too often, we regularly find cases when the customs declaration indicates one type of product, while the inspection reveals a different type". He mentions the shipment of pork from Germany arrested in Smolensk, because the veterinary certificates accompanying the shipment were absent on the database of the veterinary service of Germany. (Source: interfax.ru)

 

 

Ukraine

 

Six million pigs vaccinated

Ukraine has for some time been operating enhanced veterinary health monitoring, due to the threat of African Swine Fever from neighboring Russia and Belarus. This has helped Ukraine to stay free of the disease and resulting economies implications. In nine months the state veterinary service vaccinated almost six million pigs for swine fever. In addition, since the beginning of the year almost 1,600 samples were taken from wild boars and more than 11,000 domestic pigs for laboratory monitoring of ASF. In 2013 there have been no cases of ASF registered in Ukraine. (Source: agroperspectiva.com)

 

 

China

 

More pork in 2014

USDA forecasts an increase of 2% of Chinese pork production next year mainly due to the £9.90 sow premium. With the forthcoming Chinese New Year, the market is fairly buoyant. (Source: Asian Pork)

 

KFC still in the doldrums

The Chinese are eschewing chicken and still harbour doubts regarding its safety. Kentucky Fried Chicken is also losing ground against McDonald and Burger King. The recent 16% price discount attracted more customers but sales have now fallen back. (Source: Daily Finance)

Pork prices under scrutiny

China's pricing regulator said it will crack down on price manipulation in agricultural products, widening its probe on antitrust violations that has targeted some well-known global firms. The National Development and Reform Commission (NDRC) said it will look into pork, fertiliser, cotton, vegetable oil and sugar - all commodities with a disproportionate impact on low-income people in China. (Source: Reuters)

  

Chinese wholesale prices week commencing 16 December 2013
	Price (RMB/Kg)	£/Kg	change on week
Pig Carcase	21.68	2.18	-0.91%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities

 

 

Indonesia

 

Genetics needed

Pig farmers from Solo Co-operative in central Java face a decline of the genetic quality of the stock, according to Alexander Kassim of the organisation. Indonesian authorities are making semen import too difficult, he says. (Source: Asian Agri-biz)

 

 

Malaysia

 

Imports needs

Pork self-sufficiency in Malaysia has fallen to 93% – 94% which means the need to import pork, particularly in the Sarawak region. However, production is rising in order to satisfy increasing demand. (Source: Asian Agri-Biz)

 

 

Korea

 

Growth of pork processing

From a low base, the production of processed pork products is increasing at a rate of more than 30% per year with a value of £397 million in 2010 rising to £681 million in 2012. Canned and chilled hams represent the majority at £536 million, followed by sausages and the mini-sausages category. (Source. Korean Agro-Fisheries and Food Trade Corp)

 

 

Thailand

 

Fewer sows

Low prices experienced for some time have forced many small farmers in the South of the country to leave pig farming. The shortage of weaners has impeded further price collapse. Pig prices were around £1.45 per kg in November. Production has also been perturbed by floods with 120,000 pigs evacuated and 70,000 pigs lost. (Source: Asian Pork)

 

US$1 = EUR0.73 (December 23, 2013)