September 30, 2013
BPEX Export Bulletin– 27 September 2013 (Week 39)
This week's export news
Offal exports are one of the export success stories. We expect some 56,000 tonnes of pig offal to be exported from the UK this year, up from 48,000 tonnes in 2012 and 20,000 tonnes in 2009. The level of re-export from the Netherlands, Germany, Belgium, Ireland and Denmark is still too high but difficult to quantify. The figures include intra-company transfers and shipments from major European ports.
The joint EBLEX-BPEX meat dinner which is taking place on Monday 7 October during the Anuga fair is expected to attract the full 300 guest capacity. Late requests for tickets must hurry.
BPEX has produced enamel signs, 'British sausages served here', destined to pubs and eateries in overseas markets. These are available on request from the export office to sausage exporters.
See below very interesting news of major Chinese investment in the Ukraine.
Denmark
Small slaughterhouses prosper
While Danish Crown loses production, lays off employees and closes down factories, other small Danish slaughterhouses are doing well. In 2012, Brørup, owned by German Tönnies Fleisch, increased the number of animals slaughtered by 5.5% to approx. 25,500 pigs a week and it now reports that the slaughterhouse's maximum capacity of 30,000 per week has been reached. Danish Meat Company, which started up again in Vraa six months ago, also had a really good start. The company now slaughters 3,000 pigs a week and is heading for 4,000 next year. Near Vejle, slaughterhouse Danepork is having a fine period. Next year, the company expects to start construction of a new and large slaughterhouse with a total capacity of one million pigs. (Source: JyllandsPosten)
More people infected with MRSA bacteria
In 2012, 1,556 Danes got infected with antibiotic-resistant staphylococci, the so-called MRSA. This is an increase of 20% compared to 2011, and since 2009 the total number of infected persons nearly doubled, according to a report by the National Food Institute and the National Serum Institute. To a still larger extent the infection comes from pigs in agriculture, the report shows. The number of pigs with the dangerous bacterium has also increased significantly. In 2012, there was an occurrence of MRSA in 709 pigs studied in slaughterhouses. The number of infected pigs increased significantly from 44% in 2011 to 77% in 2012. (Source: Ritzau)
Market
In the European market, fresh legs are sold at slightly declining prices. Prices of fore-ends and shoulders are slowly declining. Collars are out of season now and prices are stable at a low level. Exports to the British bacon market are stable and unchanged but the market for fresh meat affects the spot market for backs in the UK and prices are under pressure. As to markets outside of Europe, exports to Russia, China and Japan are reported fine and unchanged.
|
Danish Slaughterhouses - payments week commencing 23 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 |
France
French ham to China
The famous "Foie Gras" manufacturer Delpeyrat diversified its production by purchasing two raw ham factories: Montagne Noire and Chevalier, allowing the group to be active on the top end market out of the "foie gras" season. Today, Delpeyrat is planning to export high quality dry ham with "Montagne Noire" brand and Bayonne Ham (with PGI) from Chevalier to China.
Salmonella
The bacteria was found in a number of long shelf life ham-based "saucissons" (dry sausage) manufactured by Polette and sold under Carrefour's own brand, several batches of this product with shelf life down to 5 December 2013 have been removed by Carrefour.
Biscuits for pigs
Bonda Nutrition Animale, as subsidiary of Agrifirm Group, is planning to feed 15 million piglets per year by 2014 with its range of by-products coming from the bread and biscuits factory Bondanut. This innovative range launched in 2010 adds value to Bondanut factory by producing a stable feed product for pig producers. The product consists of a white/beige flour with a distinct cake smell.
Market data for week 38
Pigs
The downward spiral of German prices is influencing all European countries. The 56 TMP price is going down too. Consumption in France is low due to the season. Last Monday, at Plérin, the base price lost 1.4 cent.
Piglets
Prices in France are stable even with a slight reduction in European prices. Offers are sufficient for demands. FNP-FNCBV prices lost 6 cents for 25kg and -1.06 € for 8kg last week.
Cuts
We are at the end of the month and it's not a good period for consumption. In France, and for export, everything will depend on the competitiveness of French meat as compared to Northern European meats.
|
Pork prices Rungis - Week commencing 23 September 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Back fat, rind-on |
0,85 |
|
Trimmings |
1,73 |
|
Leg |
2,77 |
|
Loin including chump |
3,17 |
|
Loin excluding chump |
2,95 |
|
Belly extra without trimmings |
2,85 |
Germany
Stabilisation in sight
After a heavy price fall (€c18 from 1.93 to €1.75 /kg cw in only 3 weeks) pig prices for the new week will probably be unchanged. Supplies are still large at over 1 million. pigs per week but demand is increasing. The beginning of autumn with colder temperatures should improve pork sales. The slaughterers and deboners are trying to stabilise prices after the fall, with necks down €c10 to 2.40 /kg and loins down €c15 Cent to €3.45.
Fall in the breeding herd
The number of breeding sows has fallen by 5.4% over the last twelve months according to the July census, due, to the implementation of the stall and tether ban. This decrease allied to similar falls in Spain and Poland should mean a firm market over the next six months. (Source: Eurostat)
More restructuring at Vion
Vion has announced on Friday (27 September) that the company will sell its division "Convenience Retail Germany". This is seen as part of its restructuring programme.
|
Pork prices Hamburg Market Week commencing 23 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
Kepak now in pork
Kepak has bought McCarren a family owned pork processor employing 180 people and a turnover of £40 million. The company processes 4-5,000 pigs per week and produces bacon and ham. The McCarren family who has been involved since 1860, will keep a minority stake in the business. Kepak is one of the main beef and lamb processors in Ireland and own, the Wakefield abattoir in England. (Source: various)
Netherlands
Tesco pork commented
The Dutch press widely reported on the pork mislabelling issue with Dutch pork found for British. The tone was neutral: "Mystery of Dutch-British chop" was the title of the large Boerderij Vandaag article. (Source: Boerderij Vandaag)
Another success for the 'pig weekend'
Some 37,500 people visited the 40 pig farms opened for the annual open weekend. This is about the same number as last year despite the poor weather. (Source: Boerderij Vandaag)
Belgium
Rush to slaughter
The price fall has led producers more pigs than the market could cope with, leading to a further price fall. Output in Belgian plants was up 9% last week. (Source: Mercolleida)
Spain
Record price
The Mercolleida price climbed to €1.553 /kg liveweight, a new record. However, prices are now on the way down led by weaker demand for legs. The July census shows a fall of 6.5% in the national breeding herd, more than was expected. However, a rebound is expected on the back of higher profitability. (Source: Mercolleida, various)
Strong meat sector?
Turnover of the Spanish meat processing sector rose to a record €18.2 billion in 2012 from €17.0 billion in 2011 and €15.8 billion in 2009. Volumes are up 0.7% against 2011 to 2.435 million tonnes and meat exports are now worth €4.3 billion. This is by far the largest food and drink sector in Spain representing 34% of total output in value. However, there are still major difficulties. Expenditure on processed meat products has fallen by 8% between 2007 and 2012 and by 13.6% for fresh and frozen pork but has increased by 23.1% for prepared fresh and frozen meat. (Source: Alimarket)
Still massive investments in the pork sector
Despite a general slowing down of investments in the food sector, the processed pork sector was the liveliest in 2012. Among the 30 largest investments feature Fuertes/El Pozo with €80 million, Campofrio €71.4 million, Incarlopsa €44.5 million (+Martinez Loriente €14.5 million), Guissona €37 million, Sola €15.7 million, Olot Meat €9.1 million and Jorge €9.0 million. Embutidos Monter is investing €24 million between 2013 and 2017 in its slicing and prepacking plant. Argal, Costa Brava, Casa de la Carne, Macoba (Bages abattoir), Embutidos Martinez also feature in the top 20, meaning that a whopping €350 million+ were invested in the Spanish pork sector in 2012. (Source: Alimarket)
More casualties
More reports of difficulties. Carniques Vic (Barcelona), Agroalimentaria de Teruel, Carnes Mondúver (Valencia) and Cárnicas Vaquero (Madrid) have been liquidated or placed in administration. The Teruel pork plant has had financial troubles over the years but was a respected quality operator. Magnus the major lamb plant blames its troubles on the investment of €3 million on a new pig slaughter line in an area of massive overcapacity. There are still too many pig abattoirs in Spain. (Source: Alimarket, our comments)
|
Pork prices Barcelona Market Week commencing 23 September 2013 | |
|
Cut Name |
Price range (Euro/Kg) |
|
Gerona Loin Chops |
2.78/2.81 |
|
Loin Eye Muscle |
3.78/3.81 |
|
Spare Ribs |
3.13/3.16 |
|
Fillets |
5.58/5.61 |
|
Round Cut Legs |
2.90/2.93 |
|
Cooked Ham |
2.56/2.59 |
|
Rindless Picnic Shoulder |
1.93/1.93 |
|
Belly |
2.37/2.40 |
|
Smoked Belly with Spare Rib Section Cut off |
2.80/2.83 |
|
Shoulder chap or Head Jowls |
1.28/1.31 |
|
Back Fat, Rindless |
0.88/0.91 |
Italy
Prices way down
Following a fall last week of €c16 /kg, a further fall of €c4-5/kg is expected as demand from abattoirs has weakened. (Source: Mercolleida)
Poland
Herd still falling
The July census shows a further fall of 8% of the national sow herd to less than a million (995,000). This represents a record low and this fall is likely to cause tension on the European pork market over the winter. Surprisingly, Eurostat shows a different data with a 1.1% rise. The Polish data must be trusted. (Source: Eurostat, various)
Untied Kingdom
Waitrose overseas expansion
Waitrose is expanding its range of food products in the upmarket department store chain Manor to 120 lines. Waitrose already exports its own brand foods in 47 countries, including Australia (Coles), UAE (Spinneys), Hong Kong (Park n Shop), Singapore (Cold Storage), Thailand (Villa), Barbados (Super Centre), etc. Last April, Waitrose announced deals with Rustan supermarkets in the Philippines, Solomon's in the Bahamas and Graceway Gourmet in Turks and Caicos. Earlier additions include Hi-Lo in Trinidad, Korea and Taiwan. This adds up to a tremendous collection of some of the best supermarkets in the world. Waitrose, own label, bacon, sausages and pies chilled or frozen are often included in ranges, access permitting. (Source: Waitrose)
Ukraine
Meat production increases 10%
According to the Ministry of the Economic Development, during January-August 2013, the production of meat in Ukraine increased 9.8% (compared to the results of the same period in 2012) - to 1.5 million tonnes. The imports were 224,000 tonnes (-21% against January-August 2012) and export 109,000 tonnes (+63%). Meat consumption for the reporting period was the following: poultry 45%, pork 42%, beef 13%. (Source: Pigua.info)
Xinjiang rents KSG Agro lands and invests US$2.6 billion
The Chinese enterprise Xinjiang Production and Construction Corps signed the agreement with the Ukrainian KSG Agro for the lease of 100,000 hectares of the agricultural lands (in Dnipropetrivaska oblast). The area will gradually increase to 3million hectares. The lands will be used for growing crops and breeding pigs to be sold to China. The amount of money to be invested in the project is US$ 2.6 billion (£1.7billion). (Source: latifundist.com)
Russia
Pig production and prices development update
Pig production in January to August reached 1,614,900 tonnes liveweight, which is 28.9% (361,600 tonnes) more than during the same period of 2012. As of September 23, the average price for pigs in liveweight was £2.56/kg and £2.51/kg deadweight. The price for frozen imported sides was £2.43/kg. (Source: Piginfo.ru)
ASF still not eliminated in Russia
As of 17 September, there are still 29 outbreaks of the African Swine Fever in Russia, located in Moskovskaya, Volgogradskaya, Yaroslavskaya, Tverskaya, Tambovskaya and Pskovskaya oblasts. (Source: Piginfo.ru)
USA
Smithfield takeover approved by shareholders
In spite of rumblings by some shareholders and politicians, 92% of Smithfield shareholders representing 76% of shares approved the Shuanghui offer of US$34 per share. The US Committee on Foreign Investment has already approved the deal. (Source: various)
China
Beijing - Berlin a "new special relationship"
This is how the European Council on Foreign Affairs describes the emerging relationship between Germany and China. This is expressed at political level with a string of high level bilateral visits, at trade level with the involvement of the powerful German Chambers of Commerce and the German trade promotion machine, and with a high level of German investment in China with vise versa Chinese investment in Germany. The results are there to be seen. Germany concentrates about half EU exports to China; China is now the third largest trading partner of Germany; in 2012, Germany posted for the first time a trade surplus with China with exports of €66 billion and imports of €61 billion. There is no real secret: constant and long-term investment on the Chinese market. (Source: Süddeutsche Zeitung, Le Monde)
US$1 = EUR0.74 (September 30, 2013)
