November 25, 2013
BPEX Export Bulletin– 22 November 2013 (Week 47)
This week's export news
UK pork exports continued their strong performance in September, up 9% on 2012 levels. At 17,200 tonnes, this was the highest monthly figure since 2000. For the first three quarters of the year, exports are up 18.3% to 132,800 tonnes, worth £161 million. Star destinations include the USA up 28% to 1,900 tonnes, Côte d'Ivoire up 400% to 1,700 tonnes and the Philippines up 200% to 1,200 tonnes. Exports of offal are up 7% for the period, but weakened over the summer with only 3,600 tonnes shipped in September (-36%). Good news for sausage exports, up 46% in September to 1,100 tonnes.
Following the commercial mission with the European Commission to Japan, we have produced a market brief, which is available from the export office.
Denmark
Danish Crown increased its turnover from €7.5 billion to €7.8 billion during the latest financial year according to the recently published financial report. The net result decreased from €240 million in 2011/12 to €209 million in 2012/13. The company announced a residual payment of €0.12 per kg finisher. (Source: Danish Crown)
Tican's turnover increased by 8% in 2012/13 to €680 million. However, the annual profit fell from €19 million a year ago to €13.3 million this year. The residual payment will be €0.113 per kg finisher. Interestingly, the management attributed the poor results to difficulties in the UK during the first half of the year related to the horse meat scandal and demand for fresh meat and ready-made dishes. (Source: Tican)
Danish slaughterhouses have to pay their pig producers competitive prices in order to ensure sufficient supplies of pigs. A new assessment shows that the Danish pig meat price remains well above the German price. Presently, the German settling price corresponds to €1.563 per kg, while the Danish price reaches €1.634 per kg, including anticipated residual payments. (Source: Landbrug og Fødevarer)
At the beginning of 2014, DC Pork will raise the base weight by 4kg per pig. It should strengthen earnings both to producers and slaughterhouses, The market has evolved, making it possible to sell slightly heavier cuts, and this potential must be exploited. Danish Crown's weight limits are controlled by the market situation. Calculations from the Danish Research Center for Pig Production show that, if the average slaughter weight has increased by 4kg, the result is an improved gross margin of €1.1 per piglet and €1.9 per finisher. (Source: Danish Crown)
On the European market, fresh legs are sold at slightly improved prices with other cuts being sold at, by and large, unchanged prices. Exports to the UK bacon market are stable at similar price levels. Third-country markets are reported as stable.
|
Danish Slaughterhouses - payments week commencing 18 November 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 1.066 |
Euro 1.066 |
|
Difference to last week |
unchanged |
unchanged |
|
Boars (Above 109.9 kg) |
Euro 0.933 |
Euro 0.933 |
|
Difference to last week |
unchanged |
unchanged |
Ireland
The deadline for the Sow Welfare Scheme and the updating of sow housing to European welfare standards has been extended from the end of September to 28 February 2014. The legal deadline was 1 January 2013. (Source: Pig e-news)
Germany
Despite a balanced pig market, the recommended price was reduced by €0.02 per kg last week. Low meat demand and the fact that several slaughter companies were only paying €1.63 per kg were reported as the drivers behind the price drop. The new price at €1.64 per kg appears to have been accepted by all market participants. The available numbers of slaughter pigs is slightly higher than last week. Nonetheless, all pigs are being sold without problems. Although meat demand is still not high, it has slightly increased compared with last week.
|
Pork prices Hamburg Market Week commencing 18 November 2013 | |
|
Cut name |
Price range (Euro/Kg) |
|
Round cut leg |
2.30/2.50 |
|
Leg (boneless, rindless max fat level 3mm |
3.15/3.35 |
|
Boneless Shoulder |
2.45/2.65 |
|
Picnic Shoulder |
2.05/2.18 |
|
Collar |
2.50/2.65 |
|
Belly (bone in, ex-breast) |
2.33/2.48 |
|
Sheet Boned Belly (rindless) |
2.28/2.50 |
|
Jowl |
1.35/1.55 |
|
Half Pig Carcasses U class. |
2.03/2.13 |
Spain
Sigma Alimentos from Mexico is bidding to acquire Campofrio from new owner Shuanghui with an OPA worth €695 million for 100% of Campofrio's capital. The offer is worth €6.80 per share. (Source: Alimarket)
The second largest Spanish pork processor exported €145 million worth of fresh, frozen and processed pork in 2012 (+54% in value). This represented 108,000 tonnes of pork from the giant Murcia plant. (Source: Alimarket)
|
Pork prices Barcelona Market Week commencing 18 November 2013 | |
|
Cut Name |
Price range (Euro/Kg) |
|
Gerona Loin Chops |
2.53/2.56 |
|
Loin Eye Muscle |
3.33/3.36 |
|
Spare Ribs |
2.93/2.93 |
|
Fillets |
5.53/5.56 |
|
Round Cut Legs |
2.98/3.01 |
|
Cooked Ham |
n/a |
|
Rindless Picnic Shoulder |
1.75/1.78 |
|
Belly |
2.24/2.27 |
|
Smoked Belly with Spare Rib Section Cut off |
2.67/2.70 |
|
Shoulder chap or Head Jowls |
1.20/1.23 |
|
Back Fat, Rindless |
0.65/0.68 |
Italy
After a momentous year, the Italian pork market is showing more stability with a better balance between the offer and demand for legs for curing and manufacturing pork. (Source: Mercolleida)
Norway
Nortura is closing its Rendalen plant and slaughter line in Sarpsborg to increase the efficiency of its operation. (Source: Nortura)
Russia
During inspection of a consignment of 20 tonnes of frozen pork from Germany, Rosselkhoznadzor officers detected violations of veterinary import requirements. The products bore the veterinary stamp of a company that does not have approval to supply pork to the Russian Federation. In 2011, the company was banned from exporting meat products to Russia after lab tests detected products contained salmonella. The consignment was returned to Germany. (Source: Piginfo.ru)
According to the latest data from the State Statistics Service of the Russian Federation, the pig population increased by 2.5% to 20.2 million head between October 2012 and October 2013. (Source: Piginfo.ru)
China
Profits in the pork division are down 56% to HK$30 million (£3 million) in the third quarter due to low pig prices. The company aims to reduce the impact of the traditional pig wholesale business and is speeding up the construction of its pig breeding base in the Southern Mainland. The company also produces the best selling beer in China, Snow (it sold nine billion litres of beer in the first nine months of the year!) and operates the largest retail operation in the country with 4,500 stores. Profits in the retail division fell as higher labour costs dented margins. China Resources also owns fruit and rice processing plants. (Source: South China Daily)
|
Chinese wholesale prices week commencing 18 November 2013 | |||
|
|
Price (RMB/Kg) |
£/Kg |
change on week |
|
Pig Carcase |
22.63 |
2.29 |
0.80% |
|
Source: BOACL | |||
|
Prices collected from wholesale markets in 36 medium and large Chinese cities | |||
Japan
Despite sky-high standards for food, the food chain has been affected by a spate of food scandals that have shaken Japanese consumers who are now looking for additional safety guaranties. (Source: own)
Korea
The 50 million Koreans have incomes similar to Europeans at around £20,000 per year per capita. Food expenditure is growing by 10% per year on the back of fast rising incomes. Consumers' behaviour responds to the DRAGON principle:
D: Do it yourself (convenience)
R: Renewal (innovation)
A: Age-old products (health)
G: Good buy (value)
O: Organic (natural/organic)
N: No sugar
(Source: various)
The market for canned, cured meats and sausages is growing strongly. Unlike the retail market, large companies dominate: CJ with 31.3% market share, Daesang with 24.4%, Lotte 11.6% and Down Won with 11.4%. (Source: Korea Food Processors' Association)
US$1 = EUR0.73 (November 25, 2013)
