June 18, 2013
BPEX Export Bulletin- 14 June 2013 (Week 24)
The ninth annual EBLEX Export Conference will, for the first time, include a round-up on pork exports in the afternoon. Exporters wishing to attend this event, happening on June 26 at Stoneleigh,UK, are invited to contact Alex Mobbs at: alex.mobbs@eblex.ahdb.org.uk
France
France falls behind
The French Pork and Pig Institute (IFIP) has produced a new competitiveness indicator for the pork sector in some European countries. This indicator includes parameters such as structure, home market, consumption, exports, production, processing, distribution and retailing. The scores range from 0 to 1. Denmark emerge as the top scorer with 0.79. The Netherlands, Germany and Spain are well placed with scores ranging from 0.49 to 0.52. France is at the bottom of the list with a score of 0.31. Although France performed well in production, distribution and retailing, the lack of productivity and abattoir investment hampered progress of an industry suffering from low consumption and weak exports. According to Guillaume Roué, President of Inaporc, the industry faces two major hurdles: administrative burden and the transmission of increasing overheads down the supply chain. He expects solutions from the French government on both issues and is relying on the impact of the viande porcine française (VPF) logo to boost home demand for pork and charcuterie products.
Poor start for Campofrio
The Charcuterie group Campofrio Food Group (Aoste, Cochonou, Justin Bridou, Jean Caby, etc) has had a weak start to 2013, sales for the first quarter were down by 1.3% compared with same period last year, and a negative net return of US$5.47 million compared with US$800,381 last year.
Salaisons Couturier in trouble
After being placed in receivership last December, the pork specialist, based in the North East of France, is still unable to find a buyer. With a turnover of US$7 million (a drop of 34% in 2012 compared to 2011) and a staff of 35 employees, there doesn't appear to be a solution in view.
Markets
Pigs
The supply of charcuterie pigs is now much tighter and should continue to decrease, in line with the seasonal trend at this time of the year. Demand across Europe should increase as its normal seasonal pattern resumes, due to the return of sunny conditions and, in some member states, the start of the holiday season.
Piglets
The European market was reported as "quiet" last week. No great evolution in supplies in the face of demand which shows little improvement. Prices remained steady.
Cuts
Prices for cuts will have to improve rapidly or margins will deteriorate. According to the Marché du Porc Breton, soaring prices in the US and Canada and upward movement in Europe may see certain large importers become more active, purchasing on the home market to avoid less attractive advertised tariffs.
|
Pork prices Rungis - Week commencing 10 June 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Back fat, rind-on |
0.60 |
|
Trimmings |
1.38 |
|
Leg |
2.64 |
|
Loin including chump |
3.04 |
|
Loin excluding chump |
2.80 |
|
Belly extra without trimmings |
2.77 |
Germany
Price increase squeezes margins
After the US$0.11 pig price rises to US$2.24/kg, processor demand is still comparably high. In some regions, pig supplies were lower than the demand from slaughterers. Elsewhere, however, the market situation is mainly balanced. However, retailers have been unable to pass on the higher pig prices in meat sales squeezing margins. Even with better weather and higher demand for barbecue cuts predicted, a further price rise is, therefore, unlikely in the coming week.
|
Pork prices Hamburg Market Week commencing 10 June 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Round cut leg |
2.30/2.40 |
|
Leg (boneless, rindless max fat level 3mm |
3.10/3.30 |
|
Boneless Shoulder |
2.50/2.70 |
|
Picnic Shoulder |
2.00/2.20 |
|
Collar |
2.65/2.85 |
|
Belly (bone in, ex-breast) |
2.45/2.60 |
|
Sheet Boned Belly (rindless) |
2.30/2.50 |
|
Jowl |
1.60/1.75 |
|
Half Pig Carcasses U class. |
2.02/2.10 |
Denmark
Markets
The European market has seen leg supplies tighten, resulting in higher prices. The market for loins is stable. The better weather has not been reflected by increased demand for fore-ends, shoulders or trimmings with the market for these cuts remaining under pressure. Markets in Russia and Japan are reported to be stable with slightly higher demand from China.
|
Danish Slaughterhouses - payments week commencing 10 June 2013 | ||
|
Slaughterhouse |
Danish Crown |
Tican |
|
Slaughter pigs (70.0 – 86.9 kg) |
Euro 1.453 |
Euro 1.453 |
|
Difference to last week |
0.027 |
0.027 |
|
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 |
Netherlands
Price drop for Dutch piglets
Dutch piglet prices have fallen by around US$53.39 per head to US$13.35 for 30kg pigs. One of the drivers for the downward trend is the drop in demand from Spain. Shipments from the Netherlands to Spain have fallen from 16,000 to 1,500 piglets per week. (Source, Markedsnyt for Svinekoed)
Finland
Finland
HK Scan acquires Nordic Genetics
Finnish HK Scan has acquired the remaining 28.5% of shares in the Swedish Nordic Genetics company. HK Scan already owned 71.5% of the shares and now has exclusive rights over Nordic's NG Hampshire race. HK Scan has signed a letter of intent to continue the development of the NG Hampshire genes in Sweden as well as in international markets with its partner, JSA Genetics. HK Scan also owns Finnpig in Finland and Quality Genetics in Sweden. (Source, Markedsnyt for Svinekoed)
Spain
Spain
|
Pork prices Barcelona Market Week commencing 10 June 2013 | |
|
Cut Name |
Price range (Euro/Kg) |
|
Gerona Loin Chops |
2.48/2.51 |
|
Loin Eye Muscle |
3.43/3.46 |
|
Spare Ribs |
2.93/2.96 |
|
Fillets |
5.23/5.26 |
|
Round Cut Legs |
2.83/2.86 |
|
Cooked Ham |
2.53/2.56 |
|
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 |
Russia
Two new cases of ASF
Two new cases of African Swine Flu (ASF) were registered in the Bogucharskiy region of Voronezhskaya oblast. Thirty-four pigs were slaughtered and Rosselkhoznadzor experts are taking measures to prevent the spread of ASF. Inspection stations were placed around the village where the outbreak was registered. (Source, Piginfo.ua)
German and French pork detained
Rosselkhoznadzor inspectors detected violations in two consignments of frozen pork from Germany and France, totalling 70 tonnes which has been held at the border. On the German batch, discrepancies were detected between the veterinary certificate and product labels, together with a mismatch between the veterinary stamp on the product and the veterinary certificate. The French company indicated on the veterinary certificate was not on the approved list to export to Russia. (Source, Piginfo.ru)
Ukraine
Increased pig population
Increased pig population
According to the National Statistics Committee, the pig population of the Ukraine has increased by 4.8% to 8,091,000 head in June. The population of pigs in private households decreased 0.3% while the population of pigs on agricultural holdings increased 11.3%. (Source, Piginfo.ua)
Australia
Imports, the punch bag
With elections looming, food labelling has once again become a political issue. Some politicians are advocating the use of a red flag on packaging if the product contains less than 95% Australian ingredients, on the basis that imported food is "unsafe". This is disingenuous as Australia is a major food and drink exporter and would strongly object to reciprocal treatment. Furthermore, the Australian origin of food, including pork, is already highly prominent on packs. Finally, EU legislation on pork is much more restrictive concerning feed additives and EU pork is generally of higher standard. (Source, ABC, own)
Labour costs, the issue
Labour costs, the issue
The very high minimum wage in Australia and the inflexible labour market are a major drain on the economy. The Australian manufacturing base is declining and unemployment is rising. The all-mining economic model is questioned as mining operations are feeling the effects of a slow global growth. In these conditions, pork production lacks competitiveness and is unable to expand. (Source, ABC, various)
French Polynesia
Pork consumers
Across Polynesia, pork is the main meat for consumption; pigs were the only livestock on several islands before the arrival of the Europeans and remain the key source of locally produced meat for the subsistence economy. (Source, own)
China
Where next?
Chinese consumers are likely to overtake Europeans in terms of consumption per capita by 2022… This poses a major but interesting challenge. (Source, OECD-FAO World Outlook)
Please note
Due to the Public Holiday, Chinese pork prices have not been published this week.
