June 24, 2013

 

BPEX's marketing efforts for the second half of 2013 include activities at food fairs in FHC China 2013 (Shanghai, China), CIMIE (Beijing, China), IFEA (Johannesburg, South Africa) and FFA (Sidney). In addition, a trade mission will take place in West Africa. For more details, refer to the agenda and/or contact the export office.

 

BPEX has announced that the 7594EHC certificate for pork exports to the Maldives has been made available. This represents a limited potential outlet for British pork as the country's population of 300,000  is mainly Muslim. Lamb and beef imports are likely to head for tourist resorts.

 

The European Commission has meetings in South Africa regarding the effects of  measures, against the Porcine reproductive and respiratory syndrome virus (PRRS),  on trade. Some 73% of pork imports in the African nation comes from the EU. BPEX have yet to receive a reponse to its proposed list of PRRS-free cuts.

 

CP Foods (Charoen Pokphand), the giant Thai conglomerate, and Brazil's JBS were preparing bids to take over Smithfield Foods before being beaten to by Shuanghui.

 

   

France

     

Aoste

 

Aoste belongs to the Spanish group, Campofrio, which is part of US food giant Smithfield Foods. Therefore, it may come under the new Chinese ownership. The main brands of Aoste in France are Aoste, Justin Bridou, Cochonou, Jean Caby, Calixte and Weight Watchers.

 

Fleury Michon joints

 

Following their Spanish model, Fleury-Michan has launched a new range of cooked joints that can be eaten cold or conveniently microwaved. Four traditional products are presented in modern packaging: two poultry products together with a pork knuckle and small pork joint selling for between US$6.94 and US$11.66 at retail.

 

Gad

 

As no offer has been received to take over the group, the situation is in serious deterioration. Employees, who owns 65% of Gad, have been demonstrating in Theix at Cecab's head office and interrupted an annual board meeting by burning pallets at the site entrance. The company may be forced to close in August, thus threatening 1,700 employees and 4,000 indirect jobs.

 

 

 

Pork prices Rungis - Week commencing 17 June 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.60
Trimmings	1.44
Leg	2.39
Loin including chump	3.15
Loin excluding chump	2.75
Belly extra without trimmings	2.99

 

     

Denmark

              

Broerup losses

 

The Broerup slaughterhouse, owned by German Tönnies Fleisch, has reported annual losses of US$5.2 million in 2012, with negative equity now totalling US$17million. It is the third consecutive year in a row that the company has reported losses despite turnover increasing by 18% on the year. Significant growth is planned for 2013 following a US$24 million cash injection from Tönnies to expand operations and optimise production (source, Foodsupply, Landbrugsavisen).

 

Danish export more piglets

 

Danish piglet exports have continued to increase in 2013. However, the rate of on-year growth is less obvious than in 2012. Last year, piglet exports increased by 15%, setting a new record exceeding nine million head, in the January – April 2013 period. Shipments were 4% up on the year at 3.2 million head. As in previous years, it is mainly 30kg pigs that are exported. (Source, Markedsny for Svinekoed).

 

Market

 

The European market for legs has improved resulting in higher prices. Collars and loins have also seen slightly higher prices. In contrast, demand for trimmings, shoulders and fore-end cuts has been reported to have eased. Sales to third countries remain stable.

 

Danish Slaughterhouses - payments week commencing 17 June 2013
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 – 86.9 kg)	Euro 1.480	Euro 1.480
Difference to last week	0.027	0.027
Sows (Above 129.9 kg)	Euro 0.945	Euro 0.945
Difference to last week	0.027	0.027
Boars (Above 109.9 kg)	Euro 0.813	Euro 0.813
Difference to last week	0.027	0.027

 

     

Netherlands

     

Higher pork prices not passed to weaner producers

 

The price of weaners remains around US$62 per head which does not reflect firm prices for pork. (Source, Boerderij Vandaag)

 

Higher welfare but who will pay?

 

LTO proposals for higher pig welfare (1sqm per growing pig, 0.4sqm per weaner, weaning at 28 days, four yearly water controls, green energy, 50% of feed from EU origin and barns to be opened to the public) are facing difficulties as there is no willingness to pay the additional costs in the chain. Additional costs of US$0.17/kg to US$0.20/kg deadweight have been mooted. (Source, Boerderij Vandaag)

Tail docking pact

 

Dutch pig producers have agreed to end tail docking but, so far, no timescale has been put forward. About 2.1% of Dutch pigs suffer from tail lesions. (Source, Boerderij Vandaag)

 

Agreement on salt and fat content of meat products

 

The Dutch meat processors' association has agreed to lower the salt content of hams and sausages by 10% and saturated fat content by 5%. (Source, Boerderij Vandaag)

 

Pigture Group losses

 

The owner of genetic companies, Topigs and Varkens KI, has posted losses of US$7917,100 for 2012. Company profits were US$2 million in 2011 and US$4.7 million in 2010. Turnover is unchanged at US$123 million. The group is present in 20 countries and expanded its operations in Brazil during 2012. Managing director, Marin Bijl, refutes the suggestion that the company has structural problems. (Source, Boerderij Vandaag)

 

     

Germany

                

Vion to restructure

 

The departure of Norbert Barfuss, the MD of Vion Germany, is the first sign of a pending restructure. He has been at the helm since 2009. Vion also aims to improve its image with farmers and the trade. (Source, Boerderij Vandaag)

 

Price stunt condemned

 

German pig farmers have condemned Aldi and Norma's hard-hitting price promotions. This has led to cuts in farm gate prices. (Source, Boerderij Vandaag)

 

Success for the Prince of Wales

 

The Prince visited the Schwäbisch-Hällischen quality pork chain that uses the eponymous pig breed. The visit was a great success. (Source, AFZ)

 

Environmental difficulties

 

Despite the development of 6,000 biogas stations since 2000, the nitrate level in Northern German soils is rising. The country also has to manage 1.7 million tonnes of manure from Holland. The Green Party (die Grüne) is consolidating its position in the governments of Lower Saxony. NRW and Schleswig-Holstein are targeting the intensive livestock sector, demanding air cleaning and manure management be covered by planning permission. The cost of air cleaning is estimated at US$5.24 – US$9.16 per pig and the costs for manure disposal at an additional US$6.54 – US$9.16 per pig. (Source, Porc Magazine)

Spain

     

Resumption of exports to Russia

 

The Catalan Meat Federation (FECIC) held a meeting for 50 companies to review Russian legislation on pork trade. Meanwhile, the Spanish veterinary authorities audited 23 plants recommended for export to Russia and approved 17. There are another 155 on the waiting list. The Russians have a weak confidence in Spanish controls and are planning further inspections. (Source: Mercolleida, Fedecarne, Fecic)

 

What next for Campofrio?

 

The future of the major Spanish pork processor partly owned by Smithfield Foods (37%) is uncertain following the takeover by China's Shuanghui. Smithfield ditched a bid to acquire the group in 2011. The Spanish unions are concerned with the jobs of 7,700 employees in Spain. (Source, Agra Europe)

  

Pork prices Barcelona Market Week commencing 17 June 2013
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.63/2.66
Loin Eye Muscle	3.58/3.61
Spare Ribs	3.03/3.06
Fillets	5.28/5.31
Round Cut Legs	2.98/3.01
Cooked Ham	2.56/2.59
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/.071

         

     

Ireland

                

Higher exports

 

The Republic exported US$655 million worth of pork in 2012, 20% more in value than in 2011. Irish processors export a third of shipments outside the EU, with three-quarters bound for Russia and China. However, the situation is described as "challenging". (Source, Irish Farmers' Journal)

 

Callan Bacon

 

The Irish bacon processor is aiming for a turnover of US$65.5 million in 2013, says M.D John Walshe.  The company now employs 200 staff in a new factory. Great Britain accounts for 60% of the business. The business is affected by the strength of the Euro and the lack of financial support in Ireland. In December 2011, Callan bought Rib World out of receivership. Rib World has markets in Britain, Sweden, Finland, Holland and Denmark. (Source, Irish Farmers' Journal)

 

Rosderra exports

 

The Irish pork leader exports 50% of its pork to China (12%), Britain (11%), Russia (6%), Germany (4%), Japan (4%) as well as other EU markets and Belarus, South Africa, Korea, Singapore, Australia, New Zealand and the Philippines. As these are in value terms, the share of Chinese exports in volume is much higher. Total turnover is US$393 million. (Source, Irish Farmers' Journal)

          

 

Croatia

                

Loss of CEFTA access

 

With Croatia becoming the 28th Member State of the EU on July 1, the country will lose its CEFTA status. The CEFTA free trade area includes Bosnia-Herzegovina, Kosovo, Macedonia, Moldova, Montenegro and Serbia. Croatia was a vital destination for pork within the region. (Source, Agra Europe)

 

 

Canada             

                

COOL retaliation

 

Following the decision by the US to maintain mandatory Country of Origin Labelling (COOL) rules, Canada released a statement outlining potential retaliatory measures. The COOL measures are seen by Canada as being protectionist and potentially harmful, and are preparing to move to the next phase of the World Trade Organisation dispute settlement process. It released a list of US commodities that may have measures put in place against them, including live cattle and pigs, pork and beef, among a number of other agricultural products. Canada is waiting for WTO approval before acting on any retaliatory measures. (Source, Canadian Government)

 

Regular progression

 

Despite difficulties, the Canadian pork sector continues to produce and export more pigs. Exports have doubled between 2000 and 2012 to 1.2 million tonnes and the share of exports has increased from 38.8% in 2000 to nearly 65%. Exports to Japan have the highest value at US$3.98/kg. Meanwhile, exports to the US are at US$2.95/kg, and Russia at US$2.29/kg. Exports to the US still represent 26.9% of volumes, ahead of Japan with 17.9% and Russia with 17.4%. Interestingly, imports have also increased to 198,000 tonnes. (Source, Fleischwirtschaft)

          

                

Thailand

          

Betagro's tenth pig farm

 

The Thai conglomerate opened its tenth Landrace, Large White and Duroc GGPs-GPs pig farm in Lopburi province. The farm will hold 2,500 sows in 2014. (Source, Asian Pork)

          

     

China

     

Drop in consumption

 

The recent scandals are affecting consumption, according to official statistics, although no data is quoted. Prices remain weak. (Source, Asian Pork)

Russia

               

Russia and the US negotiate

 

Sergey Dankvert, head of Rosselkhoznadzor, reported that a letter has been received from their US counterparts, requesting technical negotiations to resume trade. Trade was suspended due to the use of ractopamine by American meat producers. Alfred Almanza, the administrator of USDA's Food Safety Inspection Service, and Rosselkhoznadzor have agreed to hold meetings in Moscow. (Source, emeat.ru)

 

Salmonella detected Hungarian pork

 

During laboratory tests on frozen pork imported from Hungarian companies, Hungary Меat Kft and Pick Szeged Szalamigyar es Husuzem, salmonella was detected. Rosselkhoznadzor has intensified laboratory controls on products from the companies in question. (Source, emeat.ru)

 

ASF detected in Smolenskaya

 

Rosselkhoznadzor reports several carcasses of wild boars found in the Sychevskiy region of the Smolenskaya oblast. During laboratory tests on meat samples, experts detected the African Swine Fever (ASF) virus. Previously, ASF had not registered in this region. (Source, piginfo.ru)

 

 

Belarus            

                     

Temporary import ban

 

The Department of Veterinary and Food Surveillance of Belarus has introduced a temporary ban on the import of domestic animals and meat products from Yunnan Province in China and Karachayevo-Cherkesskaya Republic of the Russian Federation. The measure is taken to prevent the spread of foot-and-mouth disease from these areas. (Source, Piginfo.ua)