December 27, 2012

                                                                                          

BPEX Export Bulletin-December 2012 (Week 51)

 

 

This week's export news

 

We wish our readers a happy and prosperous New Year. 2012 has been momentous year, marked by the access of British Pork to Mainland China. By the end of October, 127,000 tonnes had been exported (+5%). We aim for similar successes in 2013.

 

Companies exporting to the US need to quickly re-register with the US Government after it overhauled its licensing rules. The FDA has said that foreign and domestic food companies must again sign up again by 31 January 2013, otherwise they will temporarily lose access to the US market. Exporters can apply at http://www.access.fda.gov/

 

 

France

 

Innovation from Madrange

 

The R&D department, initiated by Monique Piffaut (owner of CCA which manufactures charcuterie products branded Madrange), is focusing on convenience products for the food service sector. Philippe Bossuet, sales director of CCA, recently launched new packaging for cooked ham. A tray containing 20 slices, simply needs to be turned upside down in order to present carefully spaced ham slices which are easy to serve.

 

45th Porcine Research days

 

Every year, IFIP and INRA research institutes jointly organise this event. In 2013, the event will be held on February 4 and 5 at Espace Reuilly in Paris. In addition to the usual 6 discussion themes (economy, sociology, animal welfare, herd management, reproduction, genetics and quality, animal health, environment, feeding), a special session will be dedicated to the results of the European programme, Q-Pork Chains. The objective of the programme was to develop innovative production supply chains, integrated and sustainable with limited impact on the environment and producing better quality meat. The presentations will be translated into English and more details will be available at http://bit.ly/journees-recherche-porcine

 

Markets

 

 

 

 

Pork prices RUNGIS week commencing 17 December 2012
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.85
Trimmings	1.65
Leg	2.41
Loin including chump	3.01
Loin excluding chump	2.62
Belly extra without trimmings	2.89

 

Germany

 

Pork prices Hamburg Market Week commencing 17 December 2012
Cut name	Price range (Euro/Kg)
Round cut leg	2.30/2.45
Leg (boneless, rindless max fat level 3mm	3.10/3.30
Boneless Shoulder	2.70/2.85
Picnic Shoulder	2.20/2.35
Collar	2.40/2.60
Belly (bone in, ex-breast)	2.55/2.75
Sheet Boned Belly (rindless)	2.40/2.70
Jowl	1.60/1.75
Half Pig Carcasses U class.	2.05/2.15

 
Denmark

 

Risk of swine fever in Denmark

 

Swine fever in Latvia and African swine fever in Russia and the Ukraine, pose a risk to Danish pig producers. An outbreak of swine fever in Denmark would have disastrous consequences. The Knowledge Centre for Pig Production advises precautions must be taken, particularly when employees return to Denmark from a number of Eastern and Southern European countries. Employees are encouraged not to bring food back from their home countries and must have at least 24 hours quarantine if they have visited a pig herd. (Source: Landbrugsavisen)

 

Markets

 

On the European market, fresh legs have been sold at slightly lower prices. The market situation for other cuts is also under some pressure, prices for some cuts have been maintained while others have eased marginally. Exports to the British bacon market remains stable, while sales to third countries have been slightly lower. (Sources: Danish Crown, Tican, Danish Food Council).

 

Danish Slaughterhouses - payments week commencing 17 December 2012
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 - 86.9 kg)	Euro 1.573	Euro 1.573
Difference to last week	-0.027	-0.027
Sows (Above 129.9 kg)	Euro 1.039	Euro 1.039
Difference to last week	-0.093	-0.093
Boars (Above 109.9 kg)	Euro 0.869	Euro 0.869
Difference to last week	0.093	0.093

 

Spain

 

Production decelerating

 

Following a very strong first half year, pig slaughterings fell by 3% in August and 9% in September. It looks as if the current growth spate is coming to a halt. (Source: Mercolleida)

 

Pork prices Barcelona Market Week commencing 17 December 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	2.52/2.55
Rindless Picnic Shoulder	1.77/1.80
Belly	2.54/2.57
Smoked Belly with Spare Rib Section Cut off	2.97/3.00
Shoulder chap or Head Jowls	1.23/1.26
Back Fat, Rindless	0.98/1.01

 
Netherlands

 

Price discussions

 

Wyni Zwanenburg, of NVV pig producers' association, is holding "constructive" talks with retailer, Jumbo, concerning pig prices. Relations were fraught earlier in the year when the supermarket chains unilaterally cut the price it pays for pork. (Source: Boerderij Vandaag)

 

'Fair Share' score changes

 

C1000 scores an index of 138 for meat sales, the second best score after smaller retailer, Emté. Aldi scores only 52 and Dirk van den Broek at 77. The latter chain has a very poor meat counter. In the past, Coop and Plus have held the crown. (Source: Vlees Magazine)

 

More organic pigs

 

Groene Weg, the organic division of Vion, aims to process 1,550 pigs per week from 55 producers, up from 1,250 this year. Some will be exported to Germany. (Source: Boerderij Vandaag)

 

 

Greece

 

EU help

 

Stricken Greek farmers will receive EU financial help amounting to €6.5 to €7 million for pig farmers. (Source: BPEX)

 

 

Italy

 

Help to combat African Swine Fever (ASF)

 

The European Union will contribute €1.4 million to eradicate ASF in Sardinia, the only place in Europe where the disease is currently present. (Source: Agra Europe)

 

 

Brazil

 

Pork sector on the fence

 

Investment has stalled as profitability in the pork chain has fallen due to high feed costs and low meat prices on both home and export markets. Processors are waiting for next year's harvest before making decisions. Some 5% of pig farmers have left the industry, expansion is driven by productivity rather than a larger sow herd. The good news is that consumption keeps rising, although some 70% of pork is consumed in processed form. The level of government subsidies should be maintained. (Source: GIRA)

 

 

Russia

 

Pig prices still on the up

 

Forecasts for wholesale pork prices could rise to €3,300 per tonne (€3.30kg or £2.68kg) in 2013. In comparison, EU and Chinese prices could hit €1,900 per tonne. (Source: GIRA)

 

Pork import violations detected

 

At the end of November, Rosselkhoznadzor detected several irregularities on imported pork products in Moscow and Tula oblasts. Violations included, veterinary certificates that did not correspond to the product identification tags, certificates with no signature from veterinary officer and no identification tags in Russian. (Source: Rosselkhoznadzor)

 

 

Belarus

 

According to the Department of Veterinary Supervision and Food Control in Belarus, no cases of ASF were registered in the country. For reference, earlier the Lithuanian newspaper, Verslo Zinios, claimed that outbreaks of ASF were registered in Belarus. At the same time, Belarus partially lifted the ban imposed earlier on pork imports from Smolenskaya oblast in Russia. (Source: Belta)

 

 

China

 

Food safety concerns

 

In a consumer survey in Beijing, Shanghai and Guangzhou, some 89% of consumers prefer buying foreign pork compared with only 9% with a preference for Chinese pork. This is the highest proportion of any food category. (Source: Mintel)

 

Hormel has launched SPAM, canned luncheon meat in China. "USDA controlled" is prominent on the can. When we are able to master retail distribution of pork in China, Red Tractor quality and safety assurance scheme will be recommended. (Source: Mintel)

 

Some 26% of the sample of shoppers said they bought organic pork products in the last 12-months. (Source: Mintel)

 

Forecasts

 

CP projects

 

Chia Tai, the Chinese subsidiary of CP Thailand, has been given the task of setting up 13 new farms. The project is led by government, banks and private interest. The overall scheme, which also includes shrimp and poultry farming, is worth £2 billion. (Source: Asian Pork)

 

New Hope expansion

 

The Chinese group, including feed mills and poultry farms in the Philippines, Cambodia, Vietnam (since 1999) and Indonesia are planning further expansion in Egypt, South Africa and Eastern Europe. (Source: Agra Europe)

 

 

Philippines

 

Swift changes hand

 

RFM Corp. has sold its Swift pork processing business to Pacific Meat Co. (Century Pacific Group). (Source: Asian Pork)

 

Meat hygiene progress

 

In order to eliminate diseased meat (locally called botcha) from the food chain, the government is planning to open nine AA abattoirs in nine provinces. The total cost is small at £1.2 million each, split between local and central government. The government recently announced it is also planning two new AAA export abattoirs in Luzon. The National Meat Inspection Service has tightened its controls in wet markets. (Source: Asian Pork)
 
 
Vietnam

 

Saigon to produce pork

 

Saigon Ag. Incorp, a state enterprise, plans to expand its supply base to 3 million pigs per year according to Nguyen Van Tan of First Grade Breeding. The firm plans a 1,200 head sow GGP farm in 2013. It will supply two GP farms of 14,400 sows, which in turn will supply breeding gilts to contract farmers. (Source: Asian Pork)

 

Genesus signs new agreement in China

 

The Canadian breeder will supply 1,000 purebred GPs to Fujian's Yichan Ag. Dev. Co. for a new nucleus in Fujian Province. (Source: Asian Pork)

 

 

US$1 = EUR0.76 (Dec. 27, 2012)