BPEX Export Bulletin - Week 42 - Market Reports

AHDB Pork Weekly Export Bulletin

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21 October 2013

BPEX Export Bulletin - Week 42

Following requests from Papua New Guinea, currently supplied from Australia, a new export certificate at exporter’s risk 7635EHC has been made available.

Denmark

Lower Danish pork exports

Growing exports of piglets to Poland and more pork to Russia are the biggest changes in Danish exports this year. In the first seven months, exports of pigs and pork have increased by 12.7% to Poland and 17.6% to Russia. Russia imported 60,740 tonnes of pork from Denmark in the period. Poland’s imports almost doubled, of which 41,000 tonnes stem from live shipments. However, overall Danish exports fell by 1.6% compared with year earlier levels. Lower exports of Danish bacon to the UK and a 16% decline in exports to the lucrative, high-end Japanese market, are two of the drivers behind this fall. With fewer pigs in Denmark there has been less pig meat available to be sold on export markets.
(source, Markedsnyt for Svinekoed)

Tican slaughters more pigs

Tican slaughtered an extra 100,000 pigs in the last financial year, ended September. In 2012/13, Tican slaughtered 1.86 million pigs compared with 1.76 million pigs a year earlier. The additional pigs came from producers who previously supplied the bankrupt slaughterhouse in Vraa.
(source, Tican)

Tulip succeeds with new product

Since Tulip launched pulled pork in February in Denmark, sales have exceeded all expectations, as they have in Sweden and Finland. Tulip customers from all over Europe were at Anuga to talk to Tulip about it. The product is sous-vide cooked to exploit the flavour, giving a very tasty product with a long shelf life without the use of additives such as preservatives. Pulled pork is only one of the products in the range of slow-cooked products from Tulip.
(source, Danish Crown)

Tomorrow's markets outside Europe

According to international news media, the director of Vion Food International, Patrick Ballering, was quoted as saying "the future meat market is located outside Europe". Patrick Ballering has offices in Hong Kong and is responsible for Vion's sales to North and South America, Asia, Africa, and Australia. He predicts that Vion will export around 150,000 tonnes to markets outside Europe in 2013. According to Ballering, the largest market for Vion’s exports outside Europe is definitely Greater China at around 52,000 tonnes, followed by Australia, Japan and South Korea with roughly the same volumes.
(source, Markedsnyt for Svinekoed)

Markets

European markets are quiet. Prices are stable for legs and fore-ends, while loin prices have been under pressure. In the UK, the bacon market is stable. For markets outside Europe, good activity is still reported to Russia and China, while sales to Japan are unchanged.

Danish Slaughterhouses - payments week commencing 14 October 2013
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 – 86.9 kg) Difference to last week	Euro 1.588 unchanged	Euro 1.588 unchanged
Sows (Above 129.9 kg) Difference to last week	Euro 1.159 unchanged	Euro 1.159 unchanged
Boars (Above 109.9 kg) Difference to last week	Euro 1.027 unchanged	Euro 1.027 unchanged

France

Gad

GAD’s continuation plan has been accepted by the Rennes Court enabling the company to maintain its activity in Brittany, albeit at a slower pace. Altogether, 889 jobs have been cut across three sites of the Cecab cooperative’s subsidiary, closing operations in Lampaul Guimiliau with further job losses in St Nazaire and at head office in Saint-Martin-des-Champs. The Josselin site with 600 employees has not been affected. Despite all the positive words following the verdict, including those from the French Prime Minister, claiming he’d do everything to help the staff to find alternative jobs, the news is still bitter to Gad’s employees. They are well aware of the current fragile economic environment.The Court's decision could have been more dramatic if compulsory liquidation had been pronounced and 1,700 jobs would then have been involved. Employees continue to demonstrate at the gate of the Lampaul factory, hoping that the emergency meeting held on Wednesday 16th October at the French Prime Minsiter’s office would brighten their future. As part of the continuation plan, the Prestor group of producers (owning 35% of Gad) will secure the supply of 26,000 pigs per week to the Gad group.

South-West pork PGI

The marketing strategy of the South-West PGI is clearly focused on fresh pork retail packs. These CPM units packed with flushed controlled atmosphere offering extended shelf life should be launched this month in French supermarkets with a 15% mark up.

Difficult summer for Fleury-Michon

Fleury-Michon’s growth over the first semester increased by 2% yet stagnated for the second quarter. This is essentially due to poor weather and general economic pressure. The net margin of the group over the first six months decreased from 3% to 2.3%.

Markets

Pigs: In spite of stabilisation for Northern European prices, French prices are still slowing down. The base price lost €0.014 last Monday in Plérin. According to “Marché du porc Breton”, supplies are high and easily cover current demand.

Piglets: Offers are moderate, as is demand resulting in prices at similar levels. The French market is stable.

Cuts: If promotions continue in supermarkets, the volume sold should be higher with little effect on prices. It’s already the third week of the month and there is no sign of improvement in the market. In the medium term, prices will remain under pressure.

Pork prices RUNGIS week commencing 14 October 2013
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.70
Trimmings	1.67
Leg	2.43
Loin including chump	2.93
Loin excluding chump	2.71
Belly extra without trimmings	2.62

Germany

High demand, high pig numbers

As in previous weeks, the German pig market is widely balanced. Comparably high numbers of slaughter pigs are sufficient to meet current demand. Only markets in parts of Northern Germany reported a minor lack of pigs. Overall however, shortages are as rare as excesses. In addition to satisfactory sales for producers, meat traders also report increasing demand for pig meat. Most pork cuts are reported to be sold at stable prices, with some cuts receiving slightly higher prices. Stable prices, with the possibility of a slight positive move, are most likely over the coming weeks.

Pork Prices Hamburg Market Week commencing 14 October 2013
Cut name	Price range (€ / kg)
Round cut leg	2.48/2.65
Leg (boneless, rindless max fat level 3mm)	3.30/3.50
Boneless Shoulder	2.60/2.75
Picnic Shoulder	2.10/2.30
Collar	2.60/2.75
Belly (bone in, ex-breast)	2.40/2.60
Sheet Boned Belly (rindless)	2.45/2.70
Jowl	1.40/1.50
Half Pig Carcasses U class	2.14/2.24

Netherlands

Vion's Asian ambitions

The Dutch-German group is planning to approve four additional plants for export to Mainland China and increase its business there by 20% in 2014.
(Source, Vion)

Spain

Pork prices Barcelona Market Week commencing 14 October 2013
Cut name	Price range (€ / kg)
Gerona Loin Chops	2.68/2.71
Loin Eye Muscle	3.63/3.66
Spare Ribs	3.03/3.06
Fillets	5.53/5.56
Round Cut Legs	3.18/3.21
Cooked Ham	2.79/2.82
Rindless Picnic Shoulder	1.82/1.86
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	0.83/0.86

Portugal

Not everything is going wrong

Food consumption rose by 2.1% in the first semester whilst non-food sales kept falling. Nobre, the major processor and brand leader has launched a new premium range of pork products including cooked ham called Senior Cândido supported by a large advertising campaign.
(Source, Distribuçao Hoje)

Poland

Has Polish production bottomed?

The June census shows an increase of 4.8% in the number of pigs on farms to 12.518m. The country could recover its third place in the European leagues due to further falls in France, Holland and Denmark.
(Source, European Commission)

Bulgaria

Loans to Bulgarian pork

The European Bank for Reconstruction and Development has granted a loan of €10.5 million to the Bulgarian company Boni Holding JSC, an integrated pork company which operates two slaughterhouses and five pig farms. Part of the loan will be invested in the early stages of the construction of a new modern slaughterhouse.
(source, Markedsnyt for Svinekoed)

Romania

VAT cut?

The country is considering cutting VAT on meat products from 24 to 9%, thus following bread. The country is increasingly plagued by VAT fraud with such a high tax level.
(Source, various)

Russia

CPF buys Russian Baltic Pork

The major Thai business plans to acquire the Russian grain and pork producer for the sum of £62m for 78% of the company. CPF already owns feed mills and operates integrated pig farms in Lukhovsky Oblast.
(Source, Asian Pork)

Ukraine

Seaboard Foods may invest

The US company Seaboard Foods, may invest in the construction of a pig-breeding complex in Kharkivska oblast, Ukraine. The Governor of the oblast shared this information with mass media, saying that the US company is negotiating with potential Ukrainian partners. According to unofficial information, the investors are planning to invest about £350 million in the breeding complex and about £60 million in the construction of a meat-processing plant.
(Source, Piginfo.ua)

China

Genetic resources

Native breeds now only represent 5-10% of the Chinese national herd. Some four breeds have disappeared between 2004 and 2008 including the Shenxian (Hebei) and Xiangcheng (Henan) and 31 breeds are “on the verge of extinction”. The four most popular native breeds are the Rongchang, used in Sichua “twice cooked pork”, the Jiuhuan pigs used for ham production, the Taihu used for a meat ball soup called “Yangzhou style lion head” and the Ningxiang.
(Source, Asian Pork)

US genetics imports

This year a shipment of some 865 US breeding pigs was imported (company not quoted) worth US$3.26m, arecord average price of £2,500 per gilt.
(Source, Asian Pork)

Chinese wholesale prices week commencing 14 October 2013
	Price (RMB/Kg)	£/Kg	Change on week
Pig Carcases	22.85	2.32	-1.47%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities

Hong Kong

Raising pork consumption and prices

Fears regarding the safety of poultry are benefiting pork consumption, particularly for imported pork. Wholesale prices for local pork in the territory have increased. There are three producers: Ng Fung Hong, Guangnan and HK Agriculture.
(Source, Asian Pork)

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