June 12, 2012

 

BPEX Export Bulletin - June 2012 (Week 23)

Export Health Certificate 7377 EHC for the export of pork to Angola has been made available. Angola is the second largest market for pork in Africa. Following a scoping mission last year, we have good contacts in the country. Exporters interested in the Angolan market should contact the export office.

 

 

DENMARK

 

Market

 

In Europe sales of fresh meat has stabilised. Legs and front parts are sold steadily and the level is slightly higher than last week. Prices of loins and bellies are increasing supported by smaller supplies over the past weeks due to holidays in Denmark and fine exports to third countries. Exports of bacon to the British markets are stable. Exports to third countries remain unchanged at a satisfactory level. (Sources: Danish Crown, Tican, Europa and Food Council)

 

Decline in Vion earnings

 

International news media report of a financial result for the Vion Food Group in 2011, showing a decline in earnings compared to 2010. Earnings before taxes for 2011 amounted to €90 million, a decrease of 53% compared to the previous year. After taxes profits amounted to €14 million. Vion's CEO and Chairman of the Board, Uwe Tillmann denotes the result as disappointing and he indicates that it is caused by high purchase prices for pigs and cattle, which Vion has not been able to transfer to its customers. (Source: Markedsnyt for Svinekoed)

 

Danish Slaughterhouses - payments week commencing 4 June 2012
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 - 86.9 kg)	Euro 1.482	Euro 1.482
Difference to last week	0.027	0.027
Sows (Above 129.9 kg)	Euro 1.001	Euro 1.001
Difference to last week	Unchanged	Unchanged
Boars (Above 109.9 kg)	Euro 0.868	Euro 0.868
Difference to last week	Unchanged	Unchanged

 

 

FRANCE

 

Purchases of lean and less salted charcuterie products are increasing steadily in France. The omega 3 content is an additional selling point and altogether these healthy products only represent less than 5% of total charcuterie sales in volume and in value, the trend is still very positive. According to Kantar Worldpanel, today 81% of French consumers believe food has an essential role for their health and 89% are aware of a link between cancer and food. Main targets of charcuterie manufacturers are the elderly and housewives with children. The main challenge for processors is to find the correct balance between a significant reduced content of salt and fat to convince shoppers and the organoleptic characteristics of the product which could be deteriorated by too strong a reduction of fat and salt. As far as omega 3 oils are concerned there is an additional hurdle as most consumers associate omega 3 with fish. All operators have developed healthy ranges: Fleury Michon (ham, pork joints), Herta (ham, lardons and sausages), Own brands with Intermarché, Carrefour, casino. In average these healthy products cost between 10% and 20% more at retail.

 

Pigs

 

The French market is very fluid in this beginning of week. Offers are just sufficient to suit to the needs of the moment, the basic price 56 TMP increased by 0.2 cent.

 

Piglets

 

No evolution for prices at the beginning of this week. We could see a light return of offers. At the same time, demand is quite good. FNP-FNCBV prices are increasing, a rise of 10 cents for 25 kg and €1.46 for post weaning.

 

Cuts

 

Activity is very good. The retailers resupply correctly due to the beginning of the month and after a rather good weekend for the consumption of pork. This tendency should go over the next few days. This will allow the operators to maintain their efforts to re-evaluate their sale prices to echo the last increases of the basic 56 TMP price.

 

Pork prices RUNGIS week commencing 4 June 2012
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0,65
Trimmings	1,46
Leg	2,12
Loin including chump	2,92
Loin excluding chump	2,74
Belly extra without trimmings	2,51

 

 

GERMANY

 

Market

 

Following better sales of barbecue products over the bank holiday weekend the markets are now balanced. Available products are marketed without difficulties but there is no demand for large quantities. Sales of loins have slowed down but hams are sold easier than last week. Prices remain mostly unchanged. Exports of larger quantities of bacon products to Poland and Russia are going well. Sow meat is marketed well. Shoulders, collars and loins are well demanded but prices remain unchanged. Sales of bellies are sluggish. (Source: AMI)

 

Positive results

 

2011 has turned out to be a record year for Westfleisch. The total turnover rose to €2.2 billion (2010: €1.93 billion), sales figures increased by 14.3%. A record number of more than seven million pigs were slaughtered. Exports to China have increased "beyond expectations" by 104% in value and 60% in volume. Exports to Russia accounted for 15% of exports. Overall (pork, beef and veal products), sales have increased by 6.3% and with 883 tonnes were higher than ever before.

(Source: Lebensmittel Praxis)

 

Pork prices Hamburg Market Week commencing 4 June 2012
Cut name	Price range (Euro/Kg)
Round cut leg	2,15/2,30
Leg (boneless, rindless max fat level 3mm	2,95/3,25
Boneless Shoulder	2,45/2,60
Picnic Shoulder	2,00/2,20
Collar	2,80/2,95
Belly (bone in, ex-breast)	2,30/2,45
Sheet Boned Belly (rindless)	2,25/2,45
Jowl	1,50/1,60
Half Pig Carcasses U class.	2,10/2,20

     

   

SPAIN

 

Pork prices Barcelona Market Week commencing 4 June 2012
Cut Name	Price range (Euro/Kg)
Carcases (secondary grade)	1,797/1,803
Gerona Loin Chops	--/--
Loin Eye Muscle	--/--
Spare Ribs	2,93/2,96
Fillets	5,38/5,41
Round Cut Legs	2,42/2,45
Cooked Ham	2,05/2,08
Rindless Picnic Shoulder	1,63/1,66
Belly	2,20/2,23
Smoked Belly with Spare Rib Section Cut off	2,63/2,66
Shoulder chap or Head Jowls	1,23/1,26
Back Fat, Rindless	1,08/1,11

   

   

RUSSIA

 

Pork from Spain held at the border

 

Rosselkhoznadzor inspectors in the Kaliningradskaya oblast suspended delivery 19.4 tonnes of frozen pork from Spain because in the course of customs clearance of the consignment the officials noticed that the plate number of the trailer used for transportation did not correspond to the plate number indicated on the veterinary certificate. Import operation is suspended until Rosselkhoznadzor receives an explanation from the exporting country. Also, the possibility of holding the owner of the pork administratively responsible is under consideration. (Source: Emeat.ru)

 

Imported Pork Moscow Market (Jun 4):	Imported Pork St. Petersburg Market (Jun 4):
Leg (with bone): US$4.23/kg	Neck (with bone): US$5.14/kg
Leg (no bone): US$5.1/kg	Leg (no bone): US$5.0/kg
Liver: US$1.6/kg (Source: Meatinfo.ru)	Liver: US$1.47/kg (Source: Meatinfo.ru)

 

 

UKRAINE

 

April exports down

 

In April 2012, exports of pork from Ukraine amounted to 1,716 tonnes (15% less than in March), but in comparison to April 2011 increased by 3.3 times. Almost 100% of the exported pork was delivered to the Russian Federation. Imports of pork in April 2012 amounted to 17,549 tonnes which is 48% up compared to March 2012 and three times more than April 2011. At the 80th General Session of OIE in Paris Ivan Bisiuk, Head of the Ukrainian Veterinary and Phytosanitary Service has met his foreign counterparts to discuss new export and import possibilities. During the meeting with the chief veterinary authority of Sweden, Loif Danneberg Mr. Bisiuk signed the veterinary certificate permitting export of meat and meat products to Ukraine. Also, Mr Bisiuk met Deputy Chief Veterinary Inspector of Canada, Dr Francine Lord. They discussed the possibility of permitting the export of Canadian live pigs, fresh pork and frozen boar sperm to Ukraine. (Source: PigUA.info)

 

 

KAZAKHSTAN

 

Industry entrepreneurs meeting

 

On May 25, for the first time in the history of Kazakhstan there was meeting held of entrepreneurs involved in the pig breeding industry. Kazakh officials and entrepreneurs, as well as guests from Russia and Belarus were present. Participants discussed the ways of improving genetic potential of breeding pigs, foundation of selection and selection hybrid centres, participation in the creation of a national policy on development of pig breeding and identification of the most important ways to use funds allocated by the government to boost the development of pig breeding. According to opinions of the participants made public during the meeting, Kazakhstan can become self sufficient in providing the needs of the population in pork and can even create a surplus that will allow export. (Source: IA Kazakh-Zerno)

 

 

CZECH REPUBLIC

 

Production down, prices up

 

The Czech pig population has decreased by nearly 10% during the last 12 months. On the other hand, prices are well on the way up. Just in the first quarter of this year, prices have gone up by 20%. At the same time most manufacturers now meet EU animal welfare requirements. Also, the previous decline in pork production has turned into a small increase, so there are indications that things are moving in the right direction. According to Agra Europe, figures from the Czech Ministry of Agriculture show that 94% of the producers are ready for 2013. The decline in domestic production also made imports of pork rise by 13%. (Source: Markedsnyt for Svinekoed)

 

 

FINLAND

 

HK Scan deficit

 

The Finnish meat group HK Scan announced financial results for the first quarter of 2012 showing a deficit of €7.7 million compared to a loss of €3.3 million during the same quarter the previous year. HK Scan indicates large problems in the Swedish market as the reason for the poor financial results. On the Swedish market, HK Scan has high purchase prices for pigs and cattle, while the supply of pigs and cattle are declining. Thus the slaughter capacity is poorly utilized. During the first quarter of 2012 the number of slaughtering of pigs in Sweden decreased by 10.1% compared to same quarter last year. (Source: Markedsnyt for Svinekoed)

 

US$1 = EUR0.80 (June 12, 2012)