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AHDB Pork Weekly Export Bulletin

13 January 2014

BPEX Export Bulletin - Week 2BPEX Export Bulletin - Week 2

A meeting was hosted this week to review progress on the new computerised system for Export Health Certificates (EHCs) by AHVLA.
British Pig Executive Weekly Export Bulletin

The service based in Carlisle processes 45,000 EHCs and 4,500 Intra-EU Trade Animal Health Certificates (ITAHCs – TRACES system) per year employing 43 staff to do so. The plan developed over the last four years would mean replacing the current free delivery of certificates with a charge paid over the Internet or on an account basis; this would be interactive with details directly input online. The certificate on Crown paper will still be sent by first class post or courier. A paperless system will eventually be offered. There are still a number of hurdles, mostly political, to be overcome and the implementation of the new system for the autumn of 2014 is more than likely to be delayed again. The good news is that the cost for a standard certificate is likely to be in the low £20’s.

A programme for China Central Television reported on UK pork exports on the back of David Cameron’s visit to Beijing. The programme was broadcast to an estimated 85m viewers. Click here to view.

Notes for guidance for export to Japan have been revised and are available on the Defra website under 1292NFG.

European prices over the festive season have been depressed due to lack of demand. They have fallen by 14% over the last couple of weeks of 2013.


New CEO for Vion

With effect from 15 January 2014, Michiel Herkemij will act as CEO. It is reported in the statement that Michiel Herkemij, 49, has international experience from the food and beverage industry and management of several companies in "periods of transition". These include ABN Amro, Rabobank, Mexican brewer Femsa (Heineken), Sara Lee and Friesland Campina.
(Source, Vion, Boerderij Vandaag)

New name for Vion?

This was mooted at the annual congress of ZLTO co-operative, Vion’s owner, as members are scathing over the losses and loss of reputation of their major investment.
(Source, Boerderij Vandaag)


New classification machines

Six months after the implementation of the CSB-System, image analysis system, Uniporc-Ouest, the association pig producers in Brittany, is pleased with the early results. The project involving 18 abattoirs was very ambitious, but it has been confirmed that comparable results from all 18 abattoirs have established a satisfactory average rate of muscle in cuts (TMP). Using only two operators, compared with 3 or 4, the CSB-System is easily integrated on the chain (two cameras: one operating and a replacement one) and can calculate the TMP at any pace between 200 and 850 pigs per hour. Uniporc-Ouest paid CSB €3m for equipment and software which should be redeemed within 7 years. The fee per pig to finance the investment should remain at €0.35 per pig. The next step is to develop the technology further to measure specific cuts such as legs, bellies, loins and shoulders.

€20m investment in cooked ham

Intermarchés’s own brand, Monique Ranou, represents 6.6% of the total French charcuterie market. The Brittany-based company (Saint-Evarzec) processes 49,000 tonnes of ham, cocktail sausages, lardons, etc. Monique Ranou own brand products represent 66% of the factory turnover and 82% of the factory’s turnover is dedicated to Intermarché. The processing of lardons will move from Saint Evarzec to another subsidiary of the Mousquetaire’s group Onno, also part of Intermarché, and €20m will be injected into the manufacture of hams. Over the last six years, €49m has been invested at this site.

Hénaff pâté for US cosmonauts

As the only French charcuterie (especially pâté) processor with USDA approval, the French family company Hénaff has developed a special range for NASA cosmonauts. The famous French Chef Alain Ducasse is keen to improve the diet of cosmonauts on special days such as Christmas and has worked together with the R&D department of Hénaff to prepare a new high-quality range of tinned food. So far, 3,000 tins have been sent to NASA.


Pigs: In spite of the Christmas and New Year holiday, the 56 TMP base price gained €0.004 cent last Monday in Plérin. According to “Le marché du porc Breton” even if the increase is tiny, it shows an improvement for the market. Promotions are back in stores and the processing industry is buying again.

Piglets: The market is stable. Supplies, orders and prices are also stable. FNP-FNCB prices lost €0.06 for 25kg pigs and €1.06 for post weaning piglets during week 1 of 2014.

Cuts: It's promotion time! According to leaflets, pork is the leader to encourage consumers into stores. The professionals are hoping that 2014 will start well after a poor end to 2013 for the cut market.

Pork prices RUNGIS week commencing 6 January 2014

Cut namePrice range (Euro/Kg)
Back fat, rind-on 0.70
Trimmings 1.52
Leg 2.64
Loin including chump 2.98
Loin excluding chump 2.56
Belly extra without trimmings 2.71


More Danish sows in the Netherlands

Due to demand from Germany many Dutch pig farmers in recent years have changed to Danish sows. Estimates show that almost a quarter of Dutch sows are now from Danish genes. In the Netherlands, there are several suppliers of Danish breeding animals, and experts estimate that the three largest suppliers account for 200,000 Danish sows. In addition, Danish breeding companies and exporters sell Danish gilts directly to the Dutch market. Danish sows take market shares from the largest Dutch breeding organisation Topigs.


On the European market, activity is quiet with the trade for cuts taking place at largely unchanged price levels. Likewise, on the UK bacon and third country pork markets, New Year trading has been reported as quiet.

Danish Slaughterhouses - payments week commencing 6 January 2014
SlaughterhouseDanish CrownTican
Slaughter pigs (70.0 – 86.9 kg)
Difference to last week
Sows (Above 129.9 kg)
Difference to last week
Boars (Above 109.9 kg)
Difference to last week


New abattoir in Flanders

Noordvlees Van Gool and feed producer Vanden Avenne are jointly investing in a new abattoir with a capacity of 2m pigs per year for an investment of €20m. The new plant will be located in Oevel and will be operational in 2015. Bens Vlees (Vanden Avenne) currently operates an abattoir with a capacity of 500,000 pigs in Lokeren and Noordvlees and an abattoir with 1.25m capacity in Kalmthout as well as a rendering plant. Noordvlees was created in 1955 while Vanden Avenne dates back to 1889 and owns the Welda processed pork brand. The new group will account for 30% of Belgian slaughter and will become a major European player.
(Source, Boerderij Vandaag)


More live imports

In 2014, Germany will import an estimated 15.3m weaners and slaughter pigs according to market analysts AMI; this is 0.7% more than in 2013.
(Source, Boerderij Vandaag)

Record slaughter

Over weeks 50 and 51, German slaughter reached a new record at 1.122m pigs. The previous record held at 1.114m for week 51 of 2009.
(Source, Boerderij Vandaag)

Vion closes Weimar

As part of the restructuration of its German operation, Vion is closing its Weimar abattoir in Eastern Germany. The output of 8,000 pigs per week will be transferred to Perleberg and Altenburg.
(Source, Boerderij)

Strong demand

The retail industry is restocking and demand is, therefore, comparably high and the availability of slaughter pigs is satisfactory to meet demand despite not being as generally high as expected at the beginning of a year due to high slaughterings at the close of 2013. In some regions, a small shortage of slaughter pigs has been reported. As a result, many producers expect an increase in the upcoming price round. However, processors point out that demand will fall as soon as retailer restocking is complete.

Pork Prices Hamburg Market Week commencing 6 January 2014
Cut namePrice range (€ / kg)
Round cut leg 2.15/2.40
Leg (boneless, rindless max fat level 3mm) 3.00/3.30
Boneless Shoulder 2.40/2.65
Picnic Shoulder 1.90/2.10
Collar 2.40/2.60
Belly (bone in, ex-breast) 2.20/2.40
Sheet Boned Belly (rindless) 2.15/2.40
Jowl 1.20/1.35
Half Pig Carcasses U class 1.91/2.01


Campofrio new ownership

Mexican frozen food company Sigma and China's Shuanghui International Holdings have reached an agreement to share ownership of the Campofrio Group (Campofrio, Aoste, Moroni, Stegeman, Imperial, Fiorucci, Nobre, Caroli), which will be delisted from the Spanish stock exchange. Under the deal, Shuanghui will hold 37% of Campofrio, and Sigma an initial 44.7%, the two companies announced in a joint statement. Trading in Campofrio shares was suspended at €7.50 ahead of the announcement.
(Source, Reuters)

Better prospects for processed meats

Following a retraction of turnover of 0.3% in 2013 (on a higher volume) to €6.5b, analyst DBK believes that the market should expand by 2% in value in 2014 as the economy starts to recover. Exports were worth €813m in 2013 and the 4,200 companies in the sector employ 63,000 people.
(Source, Eurocarne on line)

Pork prices Barcelona Market Week commencing 6 January 2014
Cut namePrice range (€ / kg)
Gerona Loin Chops 2.53/2.56
Loin Eye Muscle 3.33/3.36
Spare Ribs 2.93/2.96
Fillets 5.53/5.56
Round Cut Legs 2.98/3.01
Cooked Ham 2.66/2.69
Rindless Picnic Shoulder 1.72/1.75
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


HKScan exits Nyhlens

Finnish food group HKScan has entered a deal to sell its 49% interest in Swedish meat company Nyhlens & Hugosons Chark AB. Under the terms of the agreement, Swedish meat processor Alviksgården Lantbruks will shell out €2.2 million in cash, meaning an asset loss of €2.1m. for HKScan. The company employs 230 people in four plants in Sweden.
(Source, Wall Street Journal)


Major agricultural restructuration

The number of farms in Poland fell by a huge 900,000 between 2007 and 2011 according to European Commission data.
(Source, EC)


More on the VAT rebate on pork

In an interview, Tamás Éder, corporate relations director at Sándor Csányi’s Bonafarm Holding (which includes major processors Herz and Pick), explains the background to the decision of cutting VAT from 27 to 5%. Firstly, the decision will not affect the VAT rate on end products which will remain at 27% but on intermediary sales in order to tackle fraud. The second reason for this decision is what happened in Pápa, Gyula, and Kaposvár (Kometa), where the large processors have been quasi-nationalised and the government needs to run these companies profitably. The reduction of the VAT on end products has been proposed by all political parties but to no avail.
(Source, Budapest Business Journal)


2014 import quotas remain unchanged

The Russian Federal government has approved the 2014 meat import tariff quotas, they will remain the same as in 2013. Specifically, pork import quota for all foreign countries is 400,000 tonnes.

Import restrictions lifted

Rosselkhoznadzor has lifted temporary restrictions on the import of pigs and pork products from Brestska oblast (Belarus) meat-processing enterprises. The restrictions came into effect in August last year due to the threat of the ASF spread. Restrictions were cancelled following a Russian and Belorussian veterinary inspection. Rosselkhoznadzor also lifted import restrictions from two Ukrainian companies, Konotopmyaso and Svizhenka.

New transport rules

As of 2014, the Russian ministry of agriculture and veterinary authority, Rosselhoznadzor, have changed the rules for the transport of pigs in Russia to combat ASF. Pig farmers must now only use government approved transporters.
(Source, Market news for pig meat)


Antibiotics not out

In December 11, the FDA’s Michael Taylor, deputy commissioner for foods and veterinary medicine, William T. Flynn, deputy director for science policy and USDA’s Thomas J. Myers, associate deputy administrator, told reporters that the government is asking drug makers to voluntarily restrict antibiotic use. Despite the pressure of lobby groups, the government is so far limiting its action to voluntary guidelines. Meanwhile, the main players Smithfield, Tyson, McDonald, Burger King and Yum are under pressure to revise their antibiotics policy with Tyson with the most pressure on poultry.
(Source, various)

Wild fluctuations

Following the festive season, pork prices are sharply down 5c/lb to 84c (£1.13/kg). Bellies lead the fall at 101.5c/lb (£1.37/kg) with low demand for bacon; they reached recently 140c/lb (£1.90/kg). Leg prices are also down.
(Source, USDA)

Cargill new pork promotion

The company launched its "Protein Punch" winter promotion in support of its Tender Choice pork brand. Consumers are encouraged to visit to build a "personalised protein plan" based on pork recipes and flavour preferences. The programme includes humorous exercise recommendations such as “Tenderloin Tuck Crunches,” “Rib-raiser Lat Lifts” and “Tone-Your-Pork-Butt Leg Curls.” Consumers visiting the site can enter to win one of five 1-year memberships to a gym or workout centre of the winners’ choice. The retail promotion entails POS material and money-off coupons.
(Source, Cargill)


No change in pork sales

Pork still only represented 10.6% of the meat and seafood retail category in 2013. The market for processed pork (called small goods in Australia) is also stable at A$2b (£1.1b), with ham accounting for 32.1% in value, bacon 23.2%, salami 11.4%, cooked sausages 6.1%. Bacon and sausage sales are falling while salami and cooked ham sales are rising, respectively by 4.8 and 3.7%. Primo has the largest market share with 32.9% in value, followed by Hans with 14.3%, Weston 11.3%, D’Orsogna 8.8%, Bertocchi 7.7%, Inghams 4.7% and Castlemaine 3.6%. Supermarket brands only account for 10.8% of sales.
(Source, Retail World)

New Zealand

Producers lose appeal

As expected, the Pork Industry Board has lost its appeal to the Supreme Court to ban pork imports as unlawful and dangerous. The whole debacle has cost the Board some £900,000 in legal fees.
(Source, Radio New Zealand)


Bird flu still prevalent

Health authorities in southern China's Guangdong province are on high alert against the H7N9 bird flu after four new human cases were confirmed last week, raising the total cases in the province to six. The four victims are all in critical condition. “According to expert assessments, Guangdong faces an extremely high risk of sporadic human H7N9 infections this winter and next spring," said Zhang Yonghui, Head of the Provincial Centre for Disease Control and Prevention. Meanwhile, critics voice concerns on the apathetic response from the provincial authorities to the crisis.
(Source, Asian Agri-Biz, various)

Smithfield push

Smithfield Vice President, Robert Manly, has been appointed Chief Synergy Officer. At a meeting with US analysts, he said that he expects Smithfield to increase exports of pork and by-products to China by several hundred thousand tonnes annually and develop sales of fresh/chilled products to China via Shineways traditional marketing channels.
(Source, various)

Chinese wholesale prices week commencing 6 January 2014

 Price (RMB/Kg)£/KgChange on week
Pig Carcases 21.60 2.17 -1.95%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities


US genetics imports

Tam Ro Farm in southern Dong Nai province has imported 152 GGP hogs from the US worth US$ 300,000. Nguyen Tan Hau, owner of Tam Ro farm, told Asian Agribiz, that orders have been flying in from as far as Hanoi. The new breed includes Duroc, Landrace and Yorkshire and includes 26 boars.
(Source, Asian Agri-Biz)

Vissan wants its own pigs

Vietnam's top pork processor is expanding its farms to better control supply says Director Van Duc Muoi. The company is aiming to produce 30% of its demand by acquiring some existing farms in Xuan Loc district of the Dong Nai province with a total of 3,600 sows. The company owns a modern abattoir and processes products like sausage, ham and canned meat. A majority of Vissan's pig meat comes from CP, San Miguel, and some local industrialised farms. With a processing capacity of 3,000 pigs per day, the company currently fulfils 28% of Ho Chi Minh city's pork demand.
(Source, Asian Agri-Biz)

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