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AHDB Pork Weekly Export Bulletin

29 July 2013

BPEX Export Bulletin - Week 30BPEX Export Bulletin - Week 30

EBLEX and BPEX have reached an agreement to be represented in Mainland China by Holly Chen via China Britain Business Council’s Launchpad scheme. Holly has worked with us in the past and is well known to exporters to China. The role includes preparation, planning, attendance at shows and events, mission support, industry liaison, communication and contact with Embassy and Chinese authorities, including on-going work on market development and market access.
British Pig Executive Weekly Export Bulletin

Export health certificate 7579EHC for the exports of PRRS-free pork cuts to South Africa has been made available. Ribs and bacon are included in the UK cuts list agreed with South African veterinary authorities. We are pleased to report that we are among the first countries to agree PRRS-free cuts certificate with South Africa. Trade that stalled on 31 May can now restart.


PGI for the South West

The European Journal has published the allocation of PGI status to pig meat from South West France. The pigs must be fed on a diet including 30% maize from 12 weeks. The area of production includes three entire French regions: Aquitaine, Midi-Pyrénées and Poitou Charentes. Total production in these regions in 2012 totaled 1.7m pigs.

PGI for the East

A specialty from the East of France has been allocated PGI status; this is the Montbéliard sausage, manufactured in four French “départements”: Doubs, Jura, Haute-Saône and Belfort territory. The PGI covers 26 manufacturers and 129 pig producers.

Opale Label Rouge

The quality mark developed within the Bleu-Blanc-Coeur program which focuses on the benefit of linseed and omega within the diet has a tight list of specifications:

  • 1 sqm per pig above 100kg liveweight
  • Inclusion of linseed “Cocholin” in the diet for pigs above 70kg liveweight
  • No GM soya or added palm oil
  • Wet grain maize: maximum 40% of dry matter content
  • Maximum carcass weight of 100kg (average per batch)
  • Meat pH between 5.5 and 6.2
  • Regular controls of Omega 3 content.

Gene+ strong results

The genetic group led by Christian Gasnier posted a profit of €1.2m for 2012-13. The company sold 150,000 gilts and 1m doses of semen, the main product being the Youna Chinese-crossed gilt with an established reputation for Piétrain. Main overseas markets are China, Korea (Harim), Spain and Canada (Coop Fédérée du Quebec is a shareholder). It plans to open a new selection unit South of Tours. It has launched a new boar called Stargen which is the result of a collaboration with PIC, the latter bringing a higher food conversion ratio and Gene+ a higher lean meat content (Hal +/-). The new boar claims to deliver an additional gain of €5 per pig.
(Source, Porc Magazine)


Pigs: Prices on European markets continue to improve. Demand remains firm for the season as the barbecuing weather continues. However, availability for butchers remains limited in most of production areas. According to “Marché du porc Breton”, German slaughter numbers were down 5% on the week and in Spain supplies are insufficient to meet current demand. Prices are up €0.06 in German, €0.05 in Belgium and €0.058 in Italy.

Piglets: European fatteners seemed more serene last week due to lower production costs and higher prices for finished pigs. Prices remained stable or slightly higher depending of the market.

Pork prices RUNGIS week commencing 22 July 2013

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.65
Trimmings 1.51
Leg 2.87
Loin including chump 3.17
Loin excluding chump 2.94
Belly extra without trimmings 2.76


"The piglet challenge"

The number of weaners exported from Denmark, mostly to Germany, has risen steadily from 3.8m in 2007 to a forecast 9.8m in 2013. In the meantime, slaughtering has fallen from 21.4m to 19m. There are many reasons: land availability, efficient weaner production, high finishing costs, strong German prices and the lack of inclination of new entrants to breed rather than grow pigs.
(Source, Landbrug Fødevarer)


The pork market in the EU is currently dominated by the low supply of pigs. At the same time, the good weather across most of Europe continues to drive demand. On European markets, fresh legs are traded at stable or slightly higher prices. Loins are subject to steady trade at similar prices, shoulders and manufacturing meat are also traded on a stable market. Demand from the UK bacon market is reported as unchanged. Sales to the Far East have remained stable while there is a positive trend reported to the Russian market.

Danish Slaughterhouses - payments week commencing 22 July 2013
SlaughterhouseDanish CrownTican
Slaughter pigs (70.0 – 86.9 kg)
Difference to last week
Euro 1.534
Euro 1.534
Sows (Above 129.9 kg)
Difference to last week
Euro 1.078
Euro 1.078
Boars (Above 109.9 kg)
Difference to last week
Euro 0.946
Euro 0.946


Vion’s point of view

Heinz Schweer, Vion’s Agriculture Director, believes that the group should retreat from exports and concentrate on local markets. He says that European production will lose share of the world market and that pork consumption has reached its peak in Europe.
(Source, Porc Magazine)

What pig farm in the future?

According to organisations DLV and LEI, the number of pig farms will fall from 7,000 to 4,000 between 2010 and 2020. The number of farms with 1,000 sows or more will fall to only 150 due to environmental constraints. There will still be 770 holdings with fewer than 500 pigs. This means a relatively small average farm size. The weaner trade to Germany will be even stronger than it is now.
(Source, Boerderij Vandaag)


Hot weather and hot price

In spite of the second price increase in a row to €1.80 per kg, demand for slaughter pigs is still high and exceeds available supply. Last week, slaughter numbers were about 4% lower compared to the corresponding week in 2012 and this trend seems to continue. In addition, the hot temperatures have slowed growth rates and therefore reduced slaughter weights. The barbecue season is at its peak and demand for pig meat is high, especially for necks. The holiday season in most parts of Germany is not significantly reducing demand either. Even though processors were not able to fully pass on the €0.12 price increase onto their meat sales, most market participants expect an at least stable price with a further increase being the most likely scenario.
(Source, own)

VDV stops quote

On 27 June, the German Livestock Traders’ Association (VDV) published its first ex-farm price. Now the price forecast has been "temporarily" suspended. In a meeting on 8 July, the Board unanimously decided to "suspend" the price forecasts for sows and slaughter pigs. VDV justified this decision on the lack of meaningful volumes.
(Source, VDV)

Tönnies Russian exports halted

The German slaughterhouse Tönnies in Rheda has lost the right to export to Russia. Other Tönnies’ departments have previously lost the export rights. It is due to the discovery of enterobacteria in the meat destined for Russia. The same applies to meat from slaughterhouses in Denmark, Belgium, China, Latvia, Poland, Chile and Argentina.
(source, Landbrugsavisen)

Pork Prices Hamburg Market Week commencing 22 July 2013
Cut namePrice range (€ / kg)
Round cut leg 2.50/2.60
Leg (boneless, rindless max fat level 3mm) 3.40/3.60
Boneless Shoulder 2.70/2.85
Picnic Shoulder 2.70/2.85
Collar 2.95/3.10
Belly (bone in, ex-breast) 2.50/2.60
Sheet Boned Belly (rindless) 2.50/2.60
Jowl 1.70/1.80
Half Pig Carcasses U class 2.14/2.22


Handl in good health

Handl, the speck and salami manufacturer has increased its turnover to €115m. It has a stronger export focus with sales to thirty markets including Germany, Italy, Benelux and Eastern Europe. The firm was founded in 1902 and owns three plants.
(Source, AFZ)


Meat consumption down

The Swiss have lost their appetite for meat with per capita consumption of 51.7kg in 2012, down 1.8 kg (-3.4%). Pork still represents 45.5% of all meat consumption but shrank by 4.1% in 2012 to 23.5kg. The share of locally produced meat increased to 81.3%.
(Source, AFZ)


Vaquero the latest casualty

This important Madrilène pork abattoir and cutting plant has ceased trading. The company posted losses of €1.1m for a turnover of €58m (-26.8%) for 2011-12. Losses amounted to €1.3m in 2010-11.
(Source, Alimarket)

Pork prices Barcelona Market Week commencing 22 July 2013
Cut namePrice range (€ / kg)
Gerona Loin Chops 2.73/2.76
Loin Eye Muscle 3.83/3.86
Spare Ribs 3.18/3.21
Fillets 5.38/5.41
Round Cut Legs 3.18/3.21
Cooked Ham 2.67/2.70
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


Pig breeding ban

The Vice Prime Minister of Russia indicated that pig breeding could be banned in households and on farms where biological safety rules are not adhered to, in order to stop the spread of ASF in the country. The ban, if introduced, will mainly affect private households and small farms.


Wild boar control

The Belarus Government has made the decision to decrease the population of the wild boars in order to prevent the spread of the ASF. The Chief Veterinary Officer, Yuriy Pyvovarchyk, said the population of wild boars in the country exceeds 80,000 head and the measure must be taken to avoid possible damage to future pig-breeding. There have been two ASF outbreaks registered in Belarus so far, in 2013, in Grodnenskaya oblast in June and Vitebskaya oblast in July.


Pork processing: who and where?

BRF has the largest share of pig processing with 30%, ahead of Seara with 13%, Aurora with 11% and Frimesa with 3%. Some 66% of the pigs are still slaughtered in the South. The Southern plants still export 75% of Brazilian pork.
(Source, University of Sao Paulo)


Record pork stock and excess production will lead to lower prices

Cold stores held a record 254,000 tonnes of pork as of 30 June according to USDA. US exporters shipped 928,000 tonnes (-13%) in the first five months of the year. Government projections predict pork output to rise 0.6% in 2013 and 3.1% in 2014. Hence, the Chicago lean-Hog index is down 2.8% from a 22 month high on 24 June.
(Source, USDA)


Oversupplied market

Following the Foot and Mouth outbreak in 2011, imports rose to a record 487,000 tonnes but declined to 381,000 tonnes in 2012 and are expected to stabilised around 310-320,000 for 2013-2014. The Korean market remains oversupplied and local prices are very low, with calls to cut production. In the medium term, Korean pork self-sufficiency is expected to continue to decline.
(Source, US Meat Export Federation)

Falling duty for EU pork but...

The Free Trade Agreement between the EU and Korea that includes elimination of pork tariffs by 2020 was deemed a success. However, the Chileans will achieve it by 2014 and the USA by 2016, giving them a strong advantage against EU pork.
(Source, various)


Dear offal

At a recent meeting, a specialist from Tyson Foods quoted pig tails (£3.20 per kg) and pig hearts (£1.20 per kg) among the most interesting commodities for export to China.
(Source, Tyson Foods)

Cooperl in China and Vietnam

The French pork leader offers ‘breeding solutions’ including equipment, knowhow, genetics (Nucleus), health and nutirtion. It signed some contracts with Chinese operators in 2012 and is also present in Vietman. Regarding pork sales, Cooperl is active in China with its own office there. Other markets include Japan, Vietnam, the Philippines and Korea.
(Source, Cooperl)

Chinese wholesale prices week commencing 22 July 2013

 Price (RMB/Kg)£/KgChange on week
Pig Carcase 20.66 2.19 -0.15%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities

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