August 20, 2013
BPEX Export Bulletin - 16 August 2013 (Week 33)
This week's export news
The European pork market seems to have reached its summer peak. But, unlike in 2012, limited supplies are keeping prices up and this situation should continue over the coming months. Rabobank is also betting on a firm market for the second half of the year, despite high frozen stocks.
France
Moc'Hyz
The Ansamble Group is number five in the social catering market with a turnover of €154 million serving 37 million meals in 592 restaurants (mainly schools). Ansamble is using "Bleu Blanc Coeur" pork supplied by "Nature et Terroirs" for its latest successful recipe: "Moc'Hyz". This is a main course prepared with beans, broad beans, lentils and pork. There are three different recipes: Spanish Moc'Hyz with onion, curry, egg whites and chives; Mexican Moc'Hyz with parsly, chili spice, onion and egg whites; and finally, Indian Moc'Hyz which uses the same ingredients at the Mexican without the chili spice.
AIM in trouble
According to local press reports, the abattoir and meat cutting plant located in the Manche region is suffering due to European competition. 400 staff are employed in the Sainte Cécile abattoir.
Markets
Pigs: The German reference price gained €0.03 last Friday (August 9). School holidays have finished in some "Lander" and nearly finished in others, which has helped boost demand. In Spain, prices are stable, driven by good consumption levels, boosted by the tourist trade. In Italy, the market is firm.
|
Pork prices Rungis - Week commencing 5 August 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Back fat, rind-on |
0.65 |
|
Trimmings |
1.55 |
|
Leg |
2.55 |
|
Loin including chump |
3.25 |
|
Loin excluding chump |
2.72 |
|
Belly extra without trimmings |
2.95 |
Denmark
Stable pig population
Statistics Denmark has published results from July 2013 pig census. The count is based on approx. 2,500 farms. The total population, at 1 July, was 1.3% lower than a year ago. The decrease is due to a lower number of pigs above 50kgs. If this group is excluded, the count is only 0.1% lower than a year ago. For breeding herds, the number of in-pig sows is on a par with the last year, while the number of first time in-pig sows and gilts were 1.6% and 0.5% higher respectively. (Source: Danmarks Statistik)
Markets
The fresh leg market remained stable with other cuts also being sold at similar prices on the week. Exports to the UK bacon market remained stable. Third country markets remained unchanged with firm demand reported from Russia and stable exports to China and Japan.
|
Danish Slaughterhouses - payments week commencing 5 August 2013 | ||
|
Slaughterhouse |
Danish Crown |
Tican |
|
Slaughter pigs (70.0 – 86.9 kg) |
Euro 1.561 |
Euro 1.561 |
|
Difference to last week |
unchanged |
unchanged |
|
Sows (Above 129.9 kg) |
Euro 1.132 |
Euro 1.132 |
|
Difference to last week |
unchanged |
unchanged |
|
Boars (Above 109.9 kg) |
Euro 1.000 |
Euro 1.000 |
|
Difference to last week |
unchanged |
unchanged |
Netherlands
Further rationalisation for Vion
Vion is to close its Helmond plant with the loss of 130 jobs. Production will be transferred to Boxtel. The move leaves nine Vion processing facilities in the Netherlands. In a separate development, the sales of the Oerlemans frozen vegetable business announced in January was cancelled due to disagreements on the price with the prospective buyer. (Source: Vion)
KDV pork
KDV stands for Keten Duurzam Vlees (sustainable, energy-neutral pork chain), representing an output of 17-18,000 pigs per week. The pigs, supplied by 200 producers, are slaughtered in Westfort and Lunenburg. KDV includes three sub-brands: KDV, Beter Leven (mainstream animal welfare scheme) and organic. They aim to develop exports to the UK, Germany, Belgium and Australia. (Source: Boerderij Vandaag)
Sweden
Slaughter overcapacity
HK Scans Swedish business is currently streamlining slaughterhouse capacity, to match the lower availability of pigs to become profitable. The company's CEO, Göran Holm, said results still need to be improved after reducing staff in slaughterhouses in Linköping, Kristianstad and Skara. In 2012, HK Scans Swedish business reported a deficit of almost €6 million. However, in the second quarter of this year the company reported a positive result. Last week the HP Scan Group, based in Finland, revised its forecast for the year down from €5 million to €4 million. (Source: Landbrugsavisen)
Spain
New price rise
Spanish prices are following the French market with a further rise. Supplies are limited and slaughter weights are down due to the heat. Demand for loins is particularly good. (Source: Heraldo de Aragón)
Pork production slightly down
Pork production over the first five months of the year fell by 1.26% to 1.49 million tonnes compared with the same period of 2012. (Source: Infocarne)
Cárnicas Villar new range
The large processor from Soria, well known for dry-cured ham and chorizo, is launching a new brand of frozen Iberian pork cuts, Tierra Ibérica. Iberian pork is increasingly popular both in Spain and on export markets. (Source: Eurocarne)
Ireland
Consumer attitudes are affected by the horse meat scandal
According to a survey by the Food Safety Authority of Ireland conducted in May, half of the respondents claimed they are now more conscious of ingredients, traceability and general food safety as a result of the horse meat incident. In the short term, sales of processed meat products were affected. Interestingly, most quoted food safety (wrongly) as a concern. (Source: Food Safety Authority of Ireland)
Germany
German Genetic offensive
The large Piétrain breeding organisation, with 1,500 boars in AI, is reorganising its sales with more efforts towards Benelux, which is now managed from North Germany. (Source: Boerderij Vandaag)
The aftermath of the horsemeat scandal
A third of German consumers claim to have changed their purchasing behaviours, seeking higher quality processed meat products and reassurance. This is less than in the UK, France and Ireland and is not really reflected in sales. (Source: AFZ)
Higher live imports
According to AMI in Germany, German slaughterhouses increased imports of finisher pigs during the first six months of 2013. Germany imported 7.876 million live pigs in the first half of the year, compared with 7.606 million in the corresponding period a year ago. Imports from Denmark fell by 1.9% on the year. In contrast, imports from the Netherlands increased by 7.9% on-year. Imports of Dutch finishers increased significantly. (Source: Markedsnyt for Svinekoed)
|
Pork prices Hamburg Market Week commencing 5 August 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Round cut leg |
2.50/2.65 |
|
Leg (boneless, rindless max fat level 3mm |
3.35/3.60 |
|
Boneless Shoulder |
2.75/2.85 |
|
Picnic Shoulder |
2.15/2.30 |
|
Collar |
2.80/3.10 |
|
Belly (bone in, ex-breast) |
2.45/2.60 |
|
Sheet Boned Belly (rindless) |
2.40/2.55 |
|
Jowl |
1.60/1.80 |
|
Half Pig Carcasses U class. |
2.17/2.25 |
Croatia
Export drive short-lived
Exports of live pigs, pork and pig meat products from Croatia, lasted only 14 days after the country became a member of the European Union, before they were halted, as they had been over the previous eight years. The ban was due to the vaccination for swine fever and the absence of monitoring of Aujeszky's disease. The President of the Central Union Association of Croatia Pig Producers (SUS), Stjepan Kusec, said that exports did not last 14 days but only 7 days because in the first week nobody knew what export papers should be prepared. (Source: In Serbia)
Ukraine
Brazilian pork back on the market
Following the lifting of restrictions for Brazilian pork imports on 15 July, exports from Brazil destined for the Ukraine have surpassed year-earlier levels. Brazilian companies are reported to have shipped 8,700 tonnes of pork to the Ukraine in the second half of July, 2,000 tonnes more than in the corresponding period a year ago. Increased shipments, combined with the seasonal uplift in slaughter throughputs during the autumn months could apply downward pressure on prices in the Ukraine. (Source: PigUa.info)
Russia
Germany restrictions
Rosselkhoznadzor will forbid 133 German manufacturing companies exporting goods to Russia due to non-compliance with the RF and CU veterinary requirements. Violations of these requirements were detected during inspections conducted by the German authorities, further to Rosselkhoznadzor requests. The companies listed include 14 manufacturing pork products. Germany is one of the biggest EU exporters of food to Russia, prior to the inspection 85 companies were permitted to export pork to Russia. (Source: 1prime.ru)
Canada plant approvals
According to Rosselkhoznadzor, Canada is ready to provide the list of companies that are certified to export products complying with the veterinary standards of Russia. One of the requirements is that the meat is ractopamine free. Companies can only be approved following inspection by Rosselkhoznadzor experts. Earlier this year Rosselkhoznadzor reduced the number of permitted Canadian companies from 60 to 18. In 2012, Canada exported US$500 million worth of pork to Russia. (Source: Itar-Tass.com)
USA
The Maschhoffs buy Agfeed
The major Illinois-based pork producer, the third largest in the country, has bought the assets of Agfeeds who had recently filed for bankruptcy for £53 million. This does not include their Oklahoma and Chinese interests (16,000 sows, 5 feed mills). Agfeed produces 1.3 million pigs annually and is the country's 22nd largest producer. (Source: The Maschoffs, Agfeed)
Mexico
Exports up
Mexican pork exports are up 16% for the first half of 2013 to 41,000 tonnes. The main markets are Japan, Korea, the USA, Vietnam and Singapore. (Source: Eurocarne)
Vietnam
Green offal: the green light
In July 2010, Vietnam introduced a ban on imports of offal, in response to a number of cases of contamination. This global ban, which was imposed without prior consultation or notification to trading partners, was considered by the EU not in line with WTO rules, disproportionate and unjustified. Indeed, Vietnam later confirmed that there had not been problems with offal imported from the EU. In spring 2011, Vietnam partially lifted its ban for so-called red offal (heart, kidney and liver) of pork, poultry and bovine origin. Vietnam has announced that on 1 September 2013, they will lift the remaining ban on green offal. However, Vietnam is imposing several new conditions on imports of green offal, such as a limitation to use only three ports of entry into Vietnam and additional registration and certification requirements. (Source: European Commission)
China
Retail battles
The news that Tesco is merging its retail interests, 131 stores, with China Resources' 3,000 supermarkets for a 20% stake in the joint company can be taken as a glass half full or half empty. On balance, this can be judged as a setback for Tesco, who has invested heavily in the country since 2004. Out of the foreign competition, Auchan allied with Ruentex from Taiwan fares best, ahead of Walmart and Carrefour. (Source: various)
Dabeinong invest
Beijing Dabeinong Breeding-Pig Technology plans to set up in Fenyi County, Jiangxi, a pig production base with 2,000 GGP sows and 3,000 GP sows. (Source: CN Agri)
|
Chinese wholesale prices week commencing 5 August 2013 | |||
|
|
Price (RMB/Kg) |
£/Kg |
change on week |
|
Pig Carcase |
21.55 |
2.26 |
+1.32% |
|
Source: BOACL | |||
|
Prices collected from wholesale markets in 36 medium and large Chinese cities | |||
US$1 = EUR0.75 (August 19, 2013)
