April 18, 2013
 

BPEX Export Bulletin- 12 April 2013 (Week 15)

 

Free Trade with Northern America
 

Guillaume Roué, Chairman of Inaporc has written to French president, François Hollande, Prime Minister Jean-Marc Ayrault and three other Ministers, cautioning them of the threat posed by the free trade agreement currently being discussed with Canada, with a probable extension to US. At a time when French producers are already dealing with fierce competition within the EU, the opening of supplies from northern America (between 20 000 and 240 000 tonnes) would be devastating for the industry. Mr Roué questions the logic of the Commission which, on one hand, imposes strict welfare and environmental rules that will lead to the closure of a large number of pig farms in France, while allowing the introduction of pork imports from countries where welfare and environmental regulations, feeding regimes and simple animal health requirements are well below European standards.
  

Label Rouge schemes abolished

A decision on March 25, 2013. confirmed that six specification lists for Label Rouge pork are to be abolished. These are "Fresh meat from pigs" (LAN°07-03); "Farm Pork" (LA N°20-99), Pork meat and offal (LA N°10-06); "Dried loin and dried shoulder clod" (LA N°40-89); "Superior cooked ham" (LA N°06-97) and "Farm pork reared outdoors" (LA N°05-99).
 

Markets

 

 

  

Markets

 

Germany

  

Pessimism for consumption

Pork consumption has remained stable with 54.5 kilogrammes in 2011, on par with levels of twenty years ago. However, it has seen a fall of 1.8 kilogrammes in 2012 and a further decrease of 1.1 kilogrammes is expected this year. (Source, Fleischwirtschaft)
 

Fewer producers

Germany has lost 1,500 producers in one year, leaving a total of 12,400. Bavaria and Baden-Wurttemberg were the most affected. Production is becoming more concentrated in the Northwest with gains of productivity expected to compensate for the smaller herd. (Source, Baromètre Porc)
 

Zur Mühle expands

Netherlands

 

Temperature-controlled livestock lorries gain popularity

Around 65% of new livestock lorries in the country are now fully closed or semi-closed. Producers include Berdex and Wanroij. The vehicles often use UV light sterilisers and diesel heaters. (Source, Boerderij Vandaag)

 

Pork prices Barcelona Market Week commencing 8 April 2013
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.58/2.61
Loin Eye Muscle	3.53/3.56
Spare Ribs	2.98/3.01
Fillets	5.43/5.46
Round Cut Legs	2.83/2.86
Cooked Ham	2.50/2.53
Rindless Picnic Shoulder	1.75/1.78
Belly	2.49/2.52
Smoked Belly with Spare Rib Section Cut off	2.92/2.95
Shoulder chap or Head Jowls	1.18/1.21
Back Fat, Rindless	0.93/0.96

 

Poland

 

Fewer pigs in Poland

Pig stocks in Poland decreased by about 15% last year, partly due to high feed costs, new welfare requirements and an inefficient production structure with several small and medium-sized farms. The number of pigs in Poland has decreased by about 40% over the past six years. At the same time, Poland's imports of live pigs increased by 43% during the first 11 months of 2012 to a total of 3.45 million heads. Approximately 50% were imported from Denmark with the majority of others from Germany and Holland. (Source, Landbrugsavisen)

    
 
EU

  

Decrease in pig production in the EU

The European Commission's report "Short term outlook for arable crops, meat and dairy markets" forecasts a decrease of 2% in EU pork production in 2013, whereas a small increase in production, at around 1%, is predicted in 2014. Exports of pork to third countries outside the EU is anticipated to decline in 2013 as a result of changes in production. This is followed by a marginal increase in 2014. (Source, Landbrug og Foedevarer)

 

US

  

Smithfield ramps up ractopamine-free production

The Clinton and Tar Heel plants in North Carolina now produce 43,000 ractopamine-free pigs daily. Tar Heel is reputed to be the largest pork plant in the world. (Source, Asian Pork)
 

American ban on stalls

The ban on sow stalls is spreading in North America; New Jersey is the tenth US state to announce that, in the future, pregnant sows must be loose. In Canada, the slaughterhouse company, Olymel, also announced that it will phase out the use of stalls for pregnant sows by 2022. This will align Olymel with similar announcements from other companies in North America such as Maple Leaf and Smithfield Foods. (Source, Markedsnyt for Svinekoed)
  

Increase in US pig stocks

USDA has published pig count results as of March 1, 2013; the stock was made up of 65.911 million pigs, 1.5% higher than at the same time last year. The report suggests producers increased production in hope of lower feed prices. Demand for pork is low and there are more pigs on the market than expected, which has resulted in producers reducing intentions to expand stocks. Iowa State University's latest index shows that pig farmers lost US$25.13 per pig in January compared with US$31.54 in the previous month.  (Source, Markedsnyt for Svinekoed)
 

Rib launch

Boston Market, the 471-strong restaurant chain noted for its roast chicken offering is planning a major launch with pork ribs under the slogan "The big rib-ate".  (Source, News Channel)
 
 
Thailand

  

Retail battle

More sales of local premium pork

Sales of pork from the Korean native black pigs (KNP) are increasing. The meat has a better colour and marbling, and more flavour than standard pork. It shows no difference in tenderness or juiciness. (Source, Asian pork)
 
 
Fiji

  

Import competition

With local producers unable to compete against US and EU pork imports, the representative organisations have asked for a new import levy of 32%, as already exists for chicken. At the moment, the country is 80% self-sufficient. (Source, Fiji Times)

 
FOOD LABELLING AND ATTITUDES TOWARDS SAFE FOOD IN CHINA
 

A review on Chinese attitudes towards food safety has been composed by a consumer science team at Gent University and published in Food Control (Liu et al., 33 : 93-104).

 

In China, there are three quality labels:

The review records 69 consumer studies.

 

Chinese consumers have confidence in the government but they still perceive a lack of information and transparency. About a third get their information on food safety from television, slightly more than from newspapers. The Chinese have an unclear idea of what constitutes safe food. It should be "free from additives" (44%) or "not polluted" (26%). When buying food, safety comes first, ahead of environmental credentials and nutrition. They are relatively distrustful of organic food and 72% question the validity of the claim, regarding the absence of hormones, antibiotics and feed additives in pork.  Some 40% distrusted the claim of non-polluted environment and the use of organic feed. Only 16% are ready to pay the existing premium for organic food.

However, they are willing to buy food with high safety credentials, with milk and eggs the most popular. In Nanjing, some 98% an 94% of people favour 'green' milk and safe eggs, respectively. Regarding pork, 71% are dissuaded by 'green' pork due to price (46%), quality and safety issues (22%), lack of availability (17%) and weak confidence in the certification (14%). Still other surveys point out to strong demand for fresh pork. 'Safe' food is more likely to be bought in supermarkets by the young and educated including teachers. Specialist 'safe' food stores are not popular yet but hold a "bright future".

 

In conclusion, despite a low level of detailed knowledge, Chinese consumers hold generally positive attitudes towards safe food". They are willing to pay more. Most of them are occasional buyers.