July 1, 2013

BPEX Export Bulletin- 28 June 2013 (Week 26)            

On the margins of the ninth EBLEX Export conference, BPEX has reviewed pork export data and export marketing activity on June 26. The highlight is the strong export growth for pork, offal and sausages, which stands at record levels in terms of share of production, together with a review of BPEX's recent successes at the Hofex and SIAL trade shows in Greater China.

 

      
France
 

New price index

FranceAgrimer will set up a new index for processors to calculate a buying price for the main pork cuts used to produce charcuterie products. The initiative is a consequence of the difficulties processors have experienced in passing on higher raw material prices further down the chain. The index will be calculated by FranceAgrimer, from a collection of prices for 10 cuts from 50 processors, representing 80% of total charcuterie production. According to early results, pork cut prices increased by 19% between January 2011 and April 2013. If ham is excluded, the price increase for all other cuts rose to 30%. The new index will be published on a weekly basis.
 

Animal welfare at a cost

From 2008 to 2013, 3,000 pig farms have requested support to comply with the new animal welfare housing requirements. The French state has spent US$63.3 million to improve the welfare of productive sows. The deadline for request of support is September 30, 2013.
 

Markets

Pigs

In the south of France, prices were very firm for the third consecutive week. However, the rate, at which prices have risen, is hampered by the northern EU market. As in France, the Spanish average price was higher, but only by US$0.03, in the face of limited charcuterie pigs. However, with higher prices in Germany, better prices in France and Spain cannot be excluded in the coming days.

Piglets

With higher charcuterie pig prices through Europe, finishers appear to be reassured despite the present high production costs.
 

Pork prices RUNGIS week commencing 24 June 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.60
Trimmings	1.52
Leg	2.45
Loin including chump	3.19
Loin excluding chump	2.79
Belly extra without trimmings	2.90

 

Denmark

Revised forecast

The pig quotation forecast has been revised down by US$0.13/kg, for the July and October quarters this year. For the first two quarters of 2014, the forecasts have been lowered by US$0.044/kg and US$0.13/kg, respectively. The downwards adjustment is due to reasonably high European pork stocks following disappointing sales of barbecue products in the spring, combined with lower than anticipated third-country exports. Furthermore, lower EU exports to Russia are resulting in more pork on the EU market. EU pork production forecasts remain in line with original predictions, falling in the range of 2-3% for 2013 as a whole. (Source, Landbrugsavisen).
 

Russian approval

Approval for the important Russian market has now been reached for the Finnish-owned slaughterhouse, Danish Meat Company, based in Vraa, Northern Jutland. The slaughterhouse, which opened in April, can now begin exporting to Russia. The company aims to commence exports to Russia, albeit with low volumes initially. Shipments have already started to Holland, Sweden, Portugal, and Italy. Additionally, the Finnish-owned company awaits a permit for the Chinese market. The slaughterhouse currently slaughters approximately 2,000 pigs weekly, but has a maximum capacity of up to 4,000 per week. (Source, Nordjylland Tidende)
 

Markets

On the European market, fresh legs are being traded at higher prices. Demand for collars and loins also resulted in improved prices. The market for trimmings, shoulders and fore-ends is unchanged, the market remains difficult. The market for bellies is stable with prices at similar levels. Market activity further afield is unchanged with stable sales to China and Japan.
 

Danish Slaughterhouses - payments week commencing 24 June 2013
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 – 86.9 kg)	Euro 1.507	Euro 1.507
Difference to last week	0.027	0.027
Sows (Above 129.9 kg)	Euro 0.985	Euro 0.985
Difference to last week	0.04	0.04
Boars (Above 109.9 kg)	Euro 0.853	Euro 0.853
Difference to last week	0.04	0.04

 

 

Netherlands 
 

22nd open farm

The latest pig production farm has opened in the Drenthe province. The farm has 400 sows and 110 dairy cows. (Source, Boerderij Vandaag)
   
 
Spain 
 

Stronger consumption

Fresh pork sales have held well and processed pork sales improved slightly during April following a depressed first quarter. The value of processed products is still falling while retail fresh pork prices are rising. In total, some 170,000 tonnes of fresh pork and 191,000 tonnes of processed meat products were sold at US$1.3 billion and US$2 billion, respectively, in the first four months of the year. (Source, Mercolleida)
 

Who is "Specific Pig"?

This is the name of a new technology company owned by Bioempren D.L., Semen Cardona and IRTA, the research organisation based in El Prat de Llobregat. It is a pioneer in the selection, production and commercialisation of Specific Pathogen Free pigs for biomedical research. (Source, Agrodigital)
 

Pork prices Barcelona Market Week commencing 24 June 2013
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2.68/2.71
Loin Eye Muscle	3.68/3.71
Spare Ribs	3.08/3.11
Fillets	5.28/5.31
Round Cut Legs	3.02/3.06
Cooked Ham	2.64/2.67
Rindless Picnic Shoulder	1.69/1.72
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

Chinese wholesale prices week commencing 24 June 2013
　	Price (RMB/Kg)	£/Kg	change on week
Pig Carcase	20.19	2.14	0.85%