June 13, 2013

 

BPEX Export Bulletin- 7 June 2013 (Week 23) 
             

 

In response to BPEX's request for the perfect submissions of Export Health Certificates for pork, particularly for China, Animal Health and the Veterinary Laboratories Agency (AHVLA) has provided the following statistics: out of the 431 certificates issued for China, during the first four months of 2013, about 11% had to be resubmitted and 6% were amended. 

 

Meanwhile, the Food & Drink Federation (FDF) Export Award, sponsored by the Food & Drink Exporters' Association, is taking place as the FDF celebrates its centenary. Entries must be posted on www.fdf.org.uk by June 14.
 
  
France
 

French charcuterie
 
In spite of higher priced raw materials, sales of charcuterie in 2012 did not fall. In value terms, sales increased by 2.4% despite a 0.5% fall in volume. The French still prefer ham which accounts for 29% of all charcuterie sales, followed by sausages (17%), saucissons or dried sausages (13%), lardons or belly cubes (10%), pâtés (7%), poultry charcuterie (5%), ouillettes and black pudding (5%), and rillettes (2%). The preference for ham leads to unbalanced distribution of cuts and, therefore, 20% of legs are imported.
 
Value imbalance
 
70% of French pig carcases are sold on the shelves of supermarkets, with legs having a dominant position. Less popular cuts in France, such as tails, ears, trotters and variety meats (stomachs) are better suited to markets in China or Malaysia. Another issue is the seasonality of the sales of some loin cuts: pork chops do not sell well during the winter. The loin represents 25% of the carcase and markets are needed in winter. Some research has been conducted to process loins into thin smoked dried slices and this is currently being tested in French supermarkets.
 
Gad Brittany

There are rumours that the Gad abattoir in Brittany may closed down by the end of August. The abattoir, which went into receivership in mid-February, could be saved if an agreeable offer is received by June 10.
 
Prices
 
French pig producers have been demonstrating in supermarkets in the west of France. Together with egg producers and dairy farmers, they are requesting higher prices. Pig producers need an increase of US$0.27/kg to stay in business. While the French Minister of Agriculture has appointed a mediator to reach an agreement on prices for the industry, French pig producers remain skeptical.
 
Markets
 
Pigs
 
On Monday, 56 TMP basic price gained US$0.02 in Plérin as a result of lower supplies. Demand was higher at the beginning of the month.

 

Piglets: It is difficult for the French market to remain stable. High production costs and offers tailored to market requirements resulted in prices remaining relatively stable. FNP-FNCBV prices were higher by US$0.01 last week for 25kg weaners and US$0.25 higher for 8kg piglets.

 

Cuts
 
Sunny conditions are favourable for the sale of seasonal cuts. Currently, market sales improved due to the start of the month. Supplies are sufficient to cover requirements and prices remain stable.
  

Pork prices Rungis - Week commencing 3 June 2013

Cut name 

Price range (Euro/Kg) 

Back fat, rind-on

0.60

Trimmings

1.27

Leg

2.58

Loin including chump

2.95

Loin excluding chump

2.74

Belly extra without trimmings

2.68


  

Denmark
 

Tulip bacon in Norway

Due to Norwegian customs regulations, Tulip sells bacon in Norway that is processed using only Norwegian raw materials which do not attract import duty. Packaging is similar to that of Danish Tulip packs used in Denmark. According to the Norwegian agricultural newspaper, Bondebladet, the bacon is processed in Denmark and Germany using Norwegian pork, before being shipped back to Norway. Tulip's CEO in Norway, Dennis Lucassen, says that Tulip cannot reveal the source of their pork for competitive reasons. However, he maintains that it comes from Norwegian slaughterhouses and Tulip insists that their Norwegian bacon can be traced back to farm of origin. Norwegian processor and Tulip competitor in Norway, Nortura, states that processing Norwegian pork abroad is not good for their food or agricultural sectors. (Source, Landbrugsavisen).
 
Markets

European markets remained unchanged with a stable market for hams, necks, and tenderloins. Loin sales are reported to have been slightly weaker. Shoulders and trimmings are sold on a difficult market. The bacon market in the UK is also under some pressure, as there is currently a large supply of backs. On third country markets, sales are unchanged with satisfactory volumes to Japan and China, and a reasonable trade with Russia.
 

 Danish Slaughterhouses - payments week commencing 3 June 2013

Slaughterhouse 

Danish Crown 

Tican 

Slaughter pigs (70.0 – 86.9 kg)

Euro 1.426

Euro 1.426

Difference to last week

unchanged

unchanged

Sows (Above 129.9 kg)

Euro 0.918

Euro 0.918

Difference to last week

unchanged

unchanged

Boars (Above 109.9 kg)

Euro 0.786

Euro 0.786

Difference to last week

unchanged

unchanged

 

 

Germany
 

Tight supply

In the first full slaughter week since mid-May, pig throughputs were barely sufficient to meet slaughterers' requirements. A number of producers are reported to be holding pigs back in anticipation of higher prices next week. At the same time, the demand for pork remains comparably low.  Flooding in several German regions also subdued demand. However, analysts expect demand to increase due to the long overdue improvement in the weather. As a result, a price rise is anticipated for next week.
 

Pork prices Hamburg Market Week commencing 3 June 2013

Cut name 

Price range (Euro/Kg) 

Round cut leg

2.30/2.35

Leg (boneless, rindless max fat level 3mm

3.00/3.20

Boneless Shoulder

2.40/2.60

Picnic Shoulder 

1.90/2.10

Collar

2.55/2.75

Belly (bone in, ex-breast)

2.40/2.55

Sheet Boned Belly (rindless)

2.25/2.45

Jowl

1.55/1.70

Half Pig Carcasses U class. 

1.94/2.02


  
Spain
 

Spain working to resume export to Russia
 
Miguel Arias Canete, the Spanish Minister of Agriculture, Food and Environment, says that the Ministry has conducted a thorough inspection of meat, fish and cheese processors and hopes that exports to Russia can resume. Rosselkhoznadzor suspended Spanish imports in April following sanitary violations. Currently, Spain is waiting for Russian inspectors to confirm the fulfillment of Russian veterinary and sanitary requirements. (Source, PigUa.info)
 

Pork prices Barcelona Market Week commencing 3 June 2013

Cut Name 

Price range (Euro/Kg)

Gerona Loin Chops

2.38/2.41

Loin Eye Muscle

3.23/3.26

Spare Ribs

2.93/2.96

Fillets

5.23/5.26

Round Cut Legs

2.68/2.71

Cooked Ham

2.51/2.54

Rindless Picnic Shoulder

1.66/1.69

Belly

2.37/2.40

Smoked Belly with Spare Rib Section Cut off

2.80/2.83

Shoulder chap or Head Jowls

1.13/1.16

Back Fat, Rindless

0.68/0.71

  
  
Portugal

 

Value talks

In a difficult economic climate, Portuguese consumers have given the thumbs up to pork. Consumption is up around 6% in volume. Penetration is rising although purchase frequency has declined. The basket value has increased despite cheaper cuts being purchased. The two largest retailers, Continente and Pingo Doce, are benefiting from the trend due to their aggressive pricing policy. All other retailers, including butchers, are losing market share. Overall, there are few demographic or geographical differences in pork consumption in Portugal. (Source, Kantar)
 
  
China
 
Behind the Smithfield deal
 
Behind Shuanghui's  bid to take over Smithfield is a group of savvy investors and global deal makers who hold a substantial stake in the Chinese company: Goldman Sachs, CDH Investments, Singapore's sovereign wealth fund and New Horizon Capital, a private equity firm co-founded by the son of former Chinese prime minister, Wen Jiabao. (Source, New York Times)
 

Chinese wholesale prices week commencing 3 June 2013

 

Price (RMB/Kg)

£/Kg

change on week

Pig Carcase

19.56

2.05

3.93%

Source: BOACL

Prices collected from wholesale markets in 36 medium and large Chinese cities

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