September 23, 2013

 

BPEX Export Bulletin - 20 September 2013 (Week 38)
 

 

This week's export news

 

The good results achieved this week for lamb and beef exports to Russia bode well for the opening of the Russian markets. Traders are reporting high stocks and lower prices. However, Rosderra, the Irish pork leaders reported bright business at the World Food Expo in Moscow.

 

 

France

 

More Omega 3 in school canteens

The food service specialist, Davigel, has signed an agreement with Bleu-Blanc-Coeur Association to launch several products containing a high proportion of Omega 3. The first product was launched this September, is a pork (shoulder) casserole targeted at school canteens.
 

Bell

Bell France, the subsidiary of the Swiss group Bell, is benefiting from the success of the brand "Môssieur Polette". Turnover of the company reached €40.6 million in the first six-months of the year, representing the sale of 6,200 tonnes of saucissons (dry sausage) and hams.
 

New site for Suchel

Suchel, the subsidiary of Cooperl will produce saucisson from the ex-Aoste owned factory which it purchased and has been closed for the last 3 months. The site could employ 25 staff and produce up to 6,200 tonnes of charcuterie.
 

Markets

Pigs

The 56TMP basic price lost €0.018 last Monday (September 16) at Plérin. The competitiveness of German meat is applying pressure on French origin meat on the home and export markets. French abattoir's requirements are limited due to the traditional slowdown of consumption after the summer holidays. Supplies are sufficient to meet current demand.

Piglets

Offers remain stable with regular sales at reasonably stable prices. Last week FNP-FNCBV gained €0.04 for 25kg pigs and €0.71 for 8kg piglets.

Cuts

According to L'Institut du porc, "If seasonal consumption of fresh products reduces, the market for processed products should take over, particularly in Eastern Europe." For the export market, everything will depend on the competitiveness of French origin pork against German and Spanish pork.
 

Pork prices RUNGIS week commencing 16 September 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.70
Trimmings	1.68
Leg	2.62
Loin including chump	3.24
Loin excluding chump	3.00
Belly extra without trimmings	2.79

 

 

Denmark

 

"No" to new wage agreement

The majority of Danish Crown employees have voted against a new wage proposal, see past bulletin. The proposal aimed to restore Danish finisher production to secure jobs in the slaughterhouse industry. (Source: Danish Crown).
 

Better animal welfare

The annual report from the Danish Food and Drug Administration shows that Danish pig producers had fewer warnings, instructions and charges in 2012 than in 2011. The report shows there are fewer pigs with bruises and shoulder bruises (Source: Fødevarestyrelsen).
 

Markets

German slaughter throughputs are high which is applying downward pressure on prices for production meat, trimmings and shoulders. Seasonal demand for necks is declining while the market for legs and loins is stable. For markets outside Europe, good activity to Russia is still reported with a fair trade to China and unchanged calm sales to Japan.
 

Danish Slaughterhouses - payments week commencing 16 September 2013
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 - 86.9 kg)	Euro 1.615	Euro 1.615
Difference to last week	unchanged	unchanged
Sows (Above 129.9 kg)	Euro 1.239	Euro 1.239
Difference to last week	unchanged	unchanged
Boars (Above 109.9 kg)	Euro 1.107	Euro 1.107
Difference to last week	unchanged	unchanged

 

 

Germany

 

Vion closes two more plants

The Dutch group has unsurprisingly closed two of its smaller abattoirs, Lausitz in Kasel-Golzig and Atlas in Minden. Both slaughter around 5,000 pigs per week. (Source: Vion)
 

Pork prices Hamburg Market Week commencing 16 September 2013
Cut name	Price range (Euro/Kg)
Round cut leg	2.55/2.70
Leg (boneless, rindless max fat level 3mm)	3.40/3.55
Boneless Shoulder	2.75/2.90
Picnic Shoulder	2.15/2.30
Collar	2.65/2.90
Belly (bone in, ex-breast)	2.50/2.65
Sheet Boned Belly (rindless)	2.50/2.70
Jowl	1.55/1.70
Half Pig Carcasses U class.	2.20/2.30

 

 

Ireland

 

Irish pork for Kerry

The Kerry Group, the largest pork further processor and importer in Ireland, has agreed to purchase more Irish pork for its Denny and Galtee brands. The Irish Farmers' Association (IFA) is also campaigning to increase the proportion of Irish bacon in stores, as 50% of the bacon products in Irish supermarkets use imported meat. (Source: Irish Farmers' Journal)
 

 

Netherlands

 

Profitability is up

In July, a finisher with 1,600 places made €12,000, €3,000 more than in July 2012 despite higher weaner prices according to research institute LEI.  (Source: Boerderij Vandaag)
 

 

Spain

 

Espuña's ambitions

The meat processor plans to increase exports by 60% from the current €32 million. The company already exports to 30 countries with France and Argentina being the main markets. The company is now targeting Brazil, Canada, Equator, Panama and Singapore. Some 56% of sales consist of prepacked sliced dry-cured ham and chorizo. It owns two plants in Ollot (Girona) and Utrillas (Teruel) and is planning to build a third plant in Mezquita de Jarque (Teruel).  (Source: Espuña)
 

 

Russia

 

ASF still on the agenda

The EU remains concerned about African Swine Fever (ASF). In August, 44 outbreaks were reported in Russia. There are various theories about the spread, one refers to the Russian Army's practice of taking live animals with it for catering purposes when moving around Russia. A conference on the issue will take place in Berlin in January 2014. (Source: European Commission – UECBV)
 

Pork fat detained

Four consignments of Ukrainian pork fat were detained in Pskovskaya oblast at the veterinary control station in Nevelskiy region. There was no accompanying documentation and the consignments were incinerated in accordance with rules to prevent the spread of the ASF in the region. (Source: Pigua.info)
 

 

Belarus

 

Wild boar cull

According to the Ministry of Forestry in Belarus, 25% of the wild boar population has been slaughtered in an attempt to lower the risk of spreading ASF. At the beginning of the year there were around 80,000 wild boars in Belarus. (Source: Interfax.by)
 

 

Australia

 

Very special ribs

Due to the lack of Australian pork production and the ban of import of bone-in pork, there are not enough ribs to supply demand. Hence, rib prices recently reached AUD15.00 per kg; this equates to a hefty £9.00 per kg! (Source: Own).
 

 

USA

 

Walmart expands its sustainability index

Wal-Mart Stores Inc. plans to expand its Sustainability Index beyond the United States to Wal-Mart Chile. South Africa's Massgmart already has begun to include key Index questions in its supplier sustainability surveys. The Sustainability Index has been rolled out across 200 product categories, and to more than 1,000 suppliers, Wal-Mart said. By the end of this year, it is estimated the Index will expand to include more than 300 product categories and as many as 5,000 suppliers. This includes for example packaging use and carbon footprint.
 

US$1 = EUR0.74 (September 23, 2013)