August 28, 2012

 

BPEX Export Bulletin - August 2012 (Week 34)

 

 

This week's export news

 

Half year export figures show a growth of 1% of pork exports to 69,558 tonnes. This is a commendable figure in view of the drop of exports to Greater China of 15% due to difficulties at entry. The very high figure of 3,330 tonnes to Sweden is still queried. The main markets remain Germany (22.3%), Ireland (18.4%), Greater China (15.7%) and the Netherlands (14.0%). For Third Countries, the UK is bucking the trend with rising exports to Korea (1,128 t.), Japan (744 t.), Singapore (576 t.) and we register a good start in South Africa (422 t.). In total, we have shipped pork to 54 destinations including new markets such as Qatar and Oman.

 

Defra has published guidance notes for meat plants wishing to export to Russia. Although no pork abattoir or cutting plant is yet registered for export and a certificate does not yet exist, exporters willing to export to this important market in the future are advised to take note of this document. It is available on demand from the Export Office.

 

After eighteen years of negotiations, Russia became the 156th Member of the World Trade Organisation last Wednesday, 22 August 2012. Still, the European Commission mentioned in its press release the need to query recent legislation.

 

 

Austria

 

Pig numbers down

 

Pig numbers in Austria have fallen below the 3 million mark. According to Statistik Austria, the total number of pigs decreased by 1,4% compared to December 2011 figures to a total of 2,96 million. (Source: ISN)

Denmark

 

Market

 

The European markets continue on their positive trend. Due to ongoing low supply of pigs in most of Europe and to good demand because of the warm weather the Danish exporters can raise prices of legs, front parts, shoulders and loins. Exports to the British bacon market are stable. Exports to third countries remain unchanged with fine sales to Japan and Russia. China is buying good quantities as well, however at decreasing prices. (Sources: Danish Crown, Tican, Danish Food Council).

 

ASF at Danish owned farm in Russia

 

Danish owned pig farm Dankub located in the southern part of Russia has been hit by ASF. All 17,000 pigs have been culled and burnt to prevent further spreading of the infection. Dankub is owned by Dan-Invest A/S, which has 70 shareholders of which the majority are Danish farmers. The farm has developed during the last six years. The outbreak of ASF now results in one year of quarantine. (Source: JyllandsPosten)

 

China resumes supporting acquisition of pig meat

 

The Chinese authorities announced that the country will resume buying up pig meat to stock in order to stabilize prices and to prevent pig producers from big losses. The Chinese "National Development and Reform Commission", which decided to stock up on pig says that it is expecting a low price level for pig meat for a while yet. According to the "National Bureau of Statistics" the Chinese production of pig meat increased by 5.9% during the first six months of 2012 compared to the same period of 2011. (Source: Markedsnyt for Svinekoed)

 

Danish Slaughterhouses - payments week commencing 20 August 2012
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 - 86.9 kg)	Euro 1.560	Euro 1.560
Difference to last week	Unchanged	Unchanged
Sows (Above 129.9 kg)	Euro 1.131	Euro 1.131
Difference to last week	0.04	0.04
Sows (Above 129.9 kg)	Euro 0.961	Euro 0.961
Difference to last week	0.04	0.04

 

 

France

 

ADN + Nucleus + Gene+ = France Génétique Porc

 

The challenge for the French pig meat industry is to develop a powerful tool in terms of genetic selection for the future. The recent merge of R&D departments of ADN, Gene + and Nucleus should provide the French industry with an impressive know how in terms of genomic with a selection base of 7 000 sows and the development of a new single testing station with a capacity of 1000 to 1 200 places.

 

Performances

 

In 2011 French pig producers improved their performances and gained +0.1 weaned piglet per productive sow per year and +0.1 pig produced per sow per year, also the consumption index during the finishing period decreased by 0.01 point.

 

Pigs

 

The German reference price continues its progress and recorded + 5 cents last week. This tendency is due to a very low offer. This is seen all over Europe where prices have been going up. The Spanish prices reach record levels and Belgium and the Netherlands followed Germany. With the entrance of Russia in WTO (World Trade Organization) EU exports to this country could be easier and more dynamic in the second half of the year. The customs duties on the imports of live pigs should pass from 40 % to 5 %. To be noted also that American exports of pigs remain good, in particular to China and Mexico.

 

Piglets

 

The strong progress of the price of pigs seems to have repercussions on the price of piglets.

 

Pork prices Rungis - Week commencing 20 August 2012
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0,65
Trimmings	1,60
Leg	2,51
Loin including chump	3,11
Loin excluding chump	2,88
Belly extra without trimmings	2,88

 

 

Germany

 

Market

 

Despite continuously increasing prices, pig meat is marketed with no difficulties. Quantities ordered are normal for this time of year. Main demanded cuts are collars and bellies. Sales of hams are improving. Meat for processing is marketed well. As for sow meat, prices are on an upwards trend too. Supply remains rather limited with both foreign as well as domestic slaughter numbers lagging behind last years' level. (Source: AMI)

 

No antibiotics in German pig meat

                                

According to the Organisation for Sustainable Agriculture (FNL), German pig meat is practically free from residues of antibiotics.  The organisation refers to data obtained under the Federal Office for Consumer Protection and Food Safety's "Residue Control Scheme". In 2010, meat from 9.500 pigs was tested and only five samples showed antibiotic residues, which represents a percentage of 0, 05%. In addition, 11.600 meat samples were tested for residues of further veterinary drugs. No residues were detected. All samples had been collected directly from the producer or the abattoir.  (Source: topagrar)

 

AutoFom change

 

With apparently no previous notice to or consultation of farmers and producers, the Vion AutoFOM system North/East will change with effect as of coming Monday, 27 August. Bellies with a lower muscle content will be graded better however the maximum index for pigs 88kg+ will be capped at 1,02 points (previously 1,5). For pigs below 88kg the cap will be set at 1,00. A new premium payment will be introduced depending on a producer's average index points - the lower the average, the higher the premium payment. ISN considers this step to show Vion's aim to push exports. (Source: ISN)

 

Pork prices Hamburg Market Week commencing 20 August 2012
Cut name	Price range (Euro/Kg)
Round cut leg	2,35/2,55
Leg (boneless, rindless max fat level 3mm	3,20/3,40
Boneless Shoulder	2,75/2,85
Picnic Shoulder	2,20/2,40
Collar	2,90/3,10
Belly (bone in, ex-breast)	2,55/2,65
Sheet Boned Belly (rindless)	2,40/2,60
Jowl	1,60/1,75
Half Pig Carcasses U class.	2,25/2,35

    

        

Russia

 

ASF Update

 

An outbreak of ASF was reported in the Tselinskii area of Russia's Rostovskaya oblast. The disease was registered on August 13 on a private farm. The head of the Rostov Region veterinary service, Sergei Kartashov, qualified this outbreak as 'very dangerous' as it happened some time ago, but the farm management failed to report it. Near the farm, more than 100 dead pigs were found that seem to have been disposed of in order to avoid consequences.  Pathological samples from the dead pigs were examined at the Rostov Regional Veterinary Laboratory and indicated that ASF was the cause of death. As a result, about 1,150 animals (960 on the affected farm and 190 pigs within a 5 km radius) will be slaughtered. (Source: Pigua.info)

    

Yaroslavskaya oblast:  the first case of ASF in Nekouzskiy region was registered on August 17. All pigs in the village are to be slaughtered. The movement of live pigs and the trade with pig meat from Yaroslavskaya oblast have been banned. (Source: Interfax.com.ua)

 

Krasnodarskiy Krai: the disease continues to spread. A new outbreak of ASF was registered in Briukhovetskiy region among pigs on a private pig farm. It should be mentioned that the disease is spreading mainly due to local farmers concealing the cases of ASF, which doesn't allow officials to take the necessary measures. As of August 18, there were 6 criminal cases initiated against farmers suspected of the above. (Source: Kazakh-Zerno)

 

Market

              

Spain

 

Pork prices Barcelona Market Week commencing 20 August 2012
Cut Name	Price range (Euro/Kg)
Gerona Loin Chops	2,80/2,83
Loin Eye Muscle	3,81/3,84
Spare Ribs	3,08/3,11
Fillets	5,43/5,46
Round Cut Legs	2,91/2,94
Cooked Ham	2,34/2,37
Rindless Picnic Shoulder	1,77/1,80
Belly	2,34/2,37
Smoked Belly with Spare Rib Section Cut off	2,77/2,80
Shoulder chap or Head Jowls	1,33/1,36
Back Fat, Rindless	1,23/1,26

 

 

Switzerland

 

Shopping tourism

 

With meat and meat products being considerably cheaper in Germany than in Switzerland, many Swiss have taken to "Meat tourism" which is increasingly putting pressure on the Swiss meat industry. According to the newspaper "Neue Zürcher Zeitung", meat is the product with the most significant price difference between the two countries. Annual losses for the Swiss meat industry are assessed at a minimum of 1 billion Swiss Francs (approx. € 830 million). On the basis of this development, Switzerland is now considering to gradually open its meat market with the reduction of import duties being a possible first step on this way. This could be done unilaterally by Switzerland. The next step would then be the liberalisation of the meat trade with the EU, for which the EU's consent would be required. (Sources: ISN, topagrar)

Ukraine

 

Imports up

 

Pork imports reached 24,234 tonnes during the month of July. This is twice as much as in July 2011. As for pork exports the total volume summed up to 2,204 tonnes which is 4.5 times more than in July 2011. (Source: PigUa.info)

 

 

US$1 = EUR0.80 (August 28, 2012)