BPEX Export Bulletin – Week 26 - Market Reports

AHDB Pork Weekly Export Bulletin

Reports » AHDB Pork Weekly Export Bulletin » BPEX Export Bulletin – Week 26

01 July 2013

BPEX Export Bulletin – Week 26

On the margins of the 9th EBLEX Export conference, we reviewed pork export data and export marketing activity on 26 June. The highlight, of course, is the strong export growth for pork, offal and sausages which stands at record levels in terms of share of production, together with a review of our recent successes at the Hofex and SIAL trade shows in Greater China.

France

New price index

FranceAgrimer will set up a new index for processors to calculate a buying price for the main pork cuts used to produce charcuterie products. The initiative is a consequence of the difficulties processors have experienced in passing on higher raw material prices further down the chain. The index will be calculated by FranceAgrimer from the collection of prices of 10 cuts from 50 processors, representing 80% of total charcuterie production. According to early results available, pig meat cut prices increased by 19% between January 2011 and April 2013. If ham is excluded, the price increase for all other cuts rose to 30%. The new index will be published on a weekly basis.

Animal welfare at a cost

From 2008 to 2013, 3,000 pig farms have requested support to comply with the new animal welfare housing requirements. The French state has, to date, spent €48.6m to improve the welfare of productive sows. The deadline to request support is 30 September 2013.

Markets

Pigs: In the South of France, prices were very firm for the third consecutive week. However, the rate at which prices have risen was slowed by the northern EU market. As in France, the Spanish average price was higher, but only by €0.024 in the face of limited charcuterie pigs. However, with higher prices in Germany, better prices in France, increases in Spain cannot be excluded in the coming few days.

Piglets: With higher charcuterie pig prices through Europe, finishers appear to be reassured despite the continued very high production costs.

Pork prices RUNGIS week commencing 24 June 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.60
Trimmings	1.52
Leg	2.45
Loin including chump	3.19
Loin excluding chump	2.79
Belly extra without trimmings	2.90

Denmark

Revised forecast

The pig quotation forecast has been revised down by €0.10 per kg for the July and October quarters this year. For the first two quarters of 2014, the forecasts have been lowered by €0.034 and €0.10 per kg, respectively. The downwards adjustment is due to reasonably high European pork stocks following disappointing sales of barbecue products in the spring, combined with lower than anticipated third-country exports. Furthermore, lower EU exports to Russia are resulting in more pork on the EU market. EU pork production forecasts remain in line with original predictions, falling in the range of 2-3% for 2013 as a whole.
(Source, Landbrugsavisen)

Russian approval

Approval for the important Russian market has now been reached for the Finnish-owned slaughterhouse, Danish Meat Company, based in Vraa in Northern Jutland. The slaughterhouse, which opened in April, can now begin exporting to Russia which was the aim when setting up the slaughterhouse. The company aims to commence exports to Russia, albeit with low volumes initially. Shipments have already started to Holland, Sweden, Portugal, and Italy. Additionally, the Finnish-owned company awaits a permit for the Chinese market. The slaughterhouse currently slaughters approximately 2,000 pigs a week, but has capacity for up to 4,000 per week.
(Source, Nordjylland Tidende)

Markets

On the European market, fresh legs are being traded at higher prices. Demand for collars and loins also resulted in improved prices. The market for trimmings, shoulders and fore-ends is unchanged, the market remains difficult. The market for bellies is stable with prices at similar levels. Market activity further afield is unchanged with stable sales to China and Japan.

Danish Slaughterhouses - payments week commencing 24 June 2013
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 – 86.9 kg) Difference to last week	Euro 1.507 +0.027	Euro 1.507 +0.027
Sows (Above 129.9 kg) Difference to last week	Euro 0.985 - 0.040	Euro 0.985 - 0.040
Boars (Above 109.9 kg) Difference to last week	Euro 0.853 - 0.040	Euro 0.853 - 0.040

Netherlands

22nd open farm

The latest farm where the public can visit to see pig production first-hand has opened in the Drenthe province. The farm has 400 sows and 110 dairy cows.
(Source, Boerderij Vandaag)

Spain

Stronger consumption

Fresh pork sales have held well and processed pork sales improved slightly during April following a depressed first quarter. The value of processed products is still falling while retail fresh pork prices are increasing. In total, some 170,000 tonnes of fresh pork and 191,000 tonnes of processed meat products were sold valued at €974m and €1,504m, respectively, in the first four months of the year.
(Source, Mercolleida)

Who is “Specific Pig”?

This is the name of a new technology company owned by Bioempren D.L., Semen Cardona and IRTA the research organisation based in El Prat de Llobregat on a three hectare plot. It is a pioneer in the selection, production and commercialisation of Specific Pathogen Free pigs for biomedical research.
(Source, Agrodigital)

Pork prices Barcelona Market Week commencing 24 June 2013
Cut name	Price range (€ / kg)
Gerona Loin Chops	2.68/2.71
Loin Eye Muscle	3.68/3.71
Spare Ribs	3.08/3.11
Fillets	5.28/5.31
Round Cut Legs	3.02/3.06
Cooked Ham	2.64/2.67
Rindless Picnic Shoulder	1.69/1.72
Belly	2.37/2.40
Smoked Belly with Spare Rib Section Cut off	2.80/2.83
Shoulder chap or Head Jowls	1.13/1.16
Back Fat, Rindless	0.68/0.71

Germany

Pork Prices Hamburg Market Week commencing 24 June 2013
Cut name	Price range (€ / kg)
Round cut leg	2.35/2.45
Leg (boneless, rindless max fat level 3mm)	3.15/3.35
Boneless Shoulder	2.55/2.70
Picnic Shoulder	2.00/2.25
Collar	2.75/2.90
Belly (bone in, ex-breast)	2.48/2.65
Sheet Boned Belly (rindless)	2.30/2.50
Jowl	1.60/1.75
Half Pig Carcasses U class	2.06/2.15

Ukraine

Imports banned from Belarus

The State Veterinary Service of Ukraine banned the import of pigs and their products from pigs from Belarus commencing 22 June in order to prevent the spread of ASF to the Ukraine.
(Source, Pigua.info)

Russia

New ASF outbreak

A new outbreak of ASF has been registered in the region of Voronezhskaya oblast. Laboratory tests confirmed ASF as the cause of death of several pigs in the region. Currently, local authorities are slaughtering 1,000 pigs in the area aiming to eliminate the disease. Trade in pigs and pork, transportation and grazing of pigs has been suspended.
(Source, Pigua.info)

USA

Pork promotion

In the USA too, pork is a price battlefield. High-profile Wegmans supermarkets have attractive fillets - still on their "fixed-price" list of 40 family items until the end August - at US$2.89 per lb. (£4.28 /kg). the normal price in the USA is US$4.99 per lb.
(Source, own)

Brazil

JBS new acquisition

JBS is buying poultry and pork processor Seara from Marfrig as well as the Zelda Uruguay leather business for €2.07b, a business Marfrig bought in 2009 from Cargill for €674m. This will allow Marfrig to concentrate on and reduce debt on its beef business. Moy Park and Keystone are not included in the sale. JBS now owns poultry businesses Pilgrim Pride (USA), Doux-Frangosul (Brazil) and Seara.
(Source, own)