February 18, 2012

                                                                                            

BPEX Export Bulletin - February 2013 (Week 7)

 

 

This week's export news

 

At last, the letter from Australia authorising pork exports to commence has been received. This is perfect timing, as a small mission is flying to Australia on Monday (Feb. 18).

 

Results of our sausage promotion for the Horeca exhibition in Athens, Greece exceeded expectation. Greece has traditionally been a solid market for the product and we had not presented the product for some time.

 

The news of yet another fall of Polish production will be welcomed by European pig farmers. It indicates further tightening of EU production and will certainly support a rise of pig prices over the coming months.

 

Due to the Chinese New Year holiday, Chinese pork prices are unavailable for publication in this week's report.

 

 

France

 

Pig prices

 

2012 was a record year in France for pig prices. With falling production (also happening across Europe) and higher cereal prices, the average price reached €1.454 in 2012, 11% higher compared with 2011. In spite of this positive trend, Guillaume Roué, President of Inaporc claims that a 15% rise is necessary to cover costs. Jean-Michel Serres, president of the French Pig Producers' federation is requesting a minimum price of €1.80/kg. Mr Serres also anticipates that the number of pig producers will decrease by 10% in France, this figure could reach 15% in some regions, including northern France.

 

Ham on sticks

 

Socopa is completing their brochette range with the addition of ham sticks. A 400g retail pack containing four sticks (brochettes) with ham is sold at a fixed price at retail costing €4.20.

 

La Bresse growing

 

The French dry charcuterie processor based in Mézériat (Ain, east of France) is almost ready to build a new site totalling 7,000 sq. metres (an additional 1,000 sq. metres compared with present site) and move the 100 staff there. In 2012, the turnover of the company reached €17 million compared with €15.5 million in 2011.

 

Market

 

Pigs:

The 56 TMP basic price was firmer last Monday (Feb. 4) at the Plérin market, up €0.005. Offers are sufficient for demand, even if numbers are slowing down.

 

Piglets:

According to "France AgriMer", French exports were down 62.2% in the first 11 months of 2012 as compared with 2011, falling from 20,900 to 8,000 head. Exports to Spain were down 88.3% (4,600 head) and shipments to Italy fell by 87.5% (5,600 head). Exports to Belgium increased by 70.8% (1,200 head). French imports during the period totalled 111,200 head.

 

Pork prices Rungis - Week commencing 11 February 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.65
Trimmings	1.44
Leg	2.69
Loin including chump	2.75
Loin excluding chump	2.55
Belly extra without trimmings	2.71

  

 

Denmark

 

Slaughterhouse bankruptcy

 

Jutland Meat, the Dutch-owned slaughterhouse based at Struer, Denmark has gone bankrupt. Jutland Meat was started by Frans Stortelder, through his company, Meat Business Europe when the competition authorities ordered Danish Crown to sell its slaughterhouse at Struer. In 2010-11 Jutland Meat slaughtered 750,000 pigs. The latest published results for the 2010-11 year report losses of €1.8 million and that equity fell from €4.4 million to €1.9 million. (Source: Landbrugsavisen)

 

Higher earnings for pig farmers

 

In 2012, pig farms in Denmark achieved an average increase in earnings of €100,000 with surpluses expected to increase by approximately €40,000. Gross profit increased by €130,000 or nearly 25%. Farms included in the survey averaged 215 hectares with 460 sows and 6,000 finishers. (Source: Landbrugsavisen)

 

Lower pig prices

 

Dutch Rabobank predicts lower pig prices in 2013 than previously anticipated due to the predicted fall in global production as a result of higher feed prices not materialising. Rabobank points out that there has been a slight rise in numbers in the United States and that in China, Russia and Brazil, pig numbers continue to rise sharply. Therefore, Rabobank expects global pork prices will not rise sharply in 2013 but may fall in the first and second quarters of the year due to pressure from the increase in production. Forward pricing on pigs in 2013 will largely depend on how much European production decreases due to the new legislation, how China's import demand evolves and whether the US will continue to expand pig production. (Source: markedsnyt for Svinekoed)

 

Market

 

Fore ends and legs were sold at similar prices, as was the case for loins and backs. Prices for bellies remained under pressure. With regard to third countries, the market in China is at a standstill due to Chinese New Year holiday. The market in Russia is somewhat uncertain, while good demand is reported from the Japanese market.

  

Danish Slaughterhouses - payments week commencing 11 February 2013
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 – 86.9 kg)	1.493	1.52
Difference to last week	Unchanged	Unchanged
Sows (Above 129.9 kg)	0.933	0.933
Difference to last week	Unchanged	Unchanged
Boars (Above 109.9 kg)	0.80	0.80
Difference to last week	Unchanged	Unchanged

  

Germany

 

New animal welfare label

 

The German equivalent of the RSPCA has launched its own star-rated welfare labelling scheme for pigs, similar to the Dutch scheme. Please visit http://www.tierschutzlabel.info

 

Pig production is increasing

 

The results of the national census show a 2% increase in the number of pigs. The two main producing states, Niedersachsen, with 9 million pigs and Nord-Rhein Westfalen with 7 million head, showed the largest growth with respective increases of 3% and 10%. The national pig herd now stands at 28.259 million head. (Source: AFZ)

  

Pork prices Hamburg Market Week commencing 11 February 2013
Cut name	Price range (Euro/Kg)
Round cut leg	2.25/2.70
Leg (boneless, rindless max fat level 3mm)	3.00/3.25
Boneless Shoulder	2.53/2.70
Picnic Shoulder	1.98/2.20
Collar	2.45/2.60
Belly (bone in, ex-breast)	2.43/2.60
Sheet Boned Belly (rindless)	2.30/2.60
Jowl	1.55/1.75
Half Pig Carcasses U class.	2.03/2.13

 

 

Spain

  

Poland

 

Production still falling

 

Results of the November census are grim. The total number of pigs is 15% lower and the number of sows is down 10%. (Source: Mercolleida)

 

 

Japan

 

Lower Japanese pork imports

 

The US Department of Agriculture has prepared its Country Report on the Japanese market. The report predicts a slight decline in Japanese pork production in 2013 due to rising feed costs. In 2012, Japanese pig slaughterings increased by 2% during the first 9 months of the year. However, declining slaughterings in the last quarter of 2012 are expected to lead to only a marginal increase for the entire year. The report also predicts a slight decline in Japanese imports of pork in 2013. The reason for any decline in Japanese pork consumption is due to strong competition from cheap poultry meat. (Source: Markedsnyt for Svinekoed, USDA)

Russia

 

Prices of feed hurting

 

According to Yuriy Kovalev of the Pig Producers Association, pork producers are in the red due to high feed prices. On the other hand, one must point out that Russian pork prices are considerably higher than EU prices and efficient producers are very profitable. However, there are many Russian producers who are not. (Source: Agra Europe, our comments)

 

Russia's US meat ban criticised

 

Thomas Wilsack, Secretary of US Ministry of Agriculture and Ron Kirk, US trade representative, criticised Russia for banning meat imports from the United States. Russia banned imports including beef and pork from the United States until measures are taken to eliminate any ractopamine content in meat. Wilsack and Kirk claimed that ractopamine is a harmless feed additive used in 27 countries. They said the UN International Service of Food Safety also acknowledged it as safe. The officials addressed Russelkhoznadzor, requesting the ban to be lifted. (Source: meatinfo.ru)

  

 

Ukraine

 

Increased pig numbers

 

The Ministry of Agrarian Policy and Food for the Ukraine has forecast that the pig population will increase by 2.2% and total 7,681,000 pigs in 2013. The main driver for the increase is the implementation of a state support programme in the sphere of meat production in Ukraine. In 2012, pig numbers increased by 1.9% to 7,516,000 head. (Source: PigUA.info)

  

 

US$1 = EUR0.75 (Feb. 18, 2013)