BPEX Export Bulletin - Week 32 - Market Reports

AHDB Pork Weekly Export Bulletin

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11 August 2014

BPEX Export Bulletin - Week 32

The global pork market is moving into record territory in the current third quarter of 2014, Rabobank reports.

Pig and pork prices will continue to break records in countries such as the United States, Canada, Mexico, Japan and South Korea, where PEDv is present. These record prices are expected to continue into the fourth quarter. Rabobank expects that markets in European Union and China will improve seasonally but will not reach the highs experienced in other countries.

In response to sanctions over Ukraine, Russia has suspended food imports, including meat, from the EU, US and some other Western countries. However, the EU and US were already banned from Russia so no direct impact is predicted for the EU or UK markets. Of the other countries involved, Canada is the only significant supplier, accounting for 40% of Russian imports so far this year.

France

The French pig meat industry

The French pig herd is the largest in Europe, behind Germany and Spain. Brittany is the 4th largest region with Pays de Loire (below Brittany) the 19th largest in Europe. There are 22,280 pig farms including 13,000 with more than 20 pigs and 11,400 with more than 100 pigs. The national average is 620 pigs per farm, the average in Brittany is 1,340 pigs per farm, in the large west of France region the figure decreases to 775 and outside the west of France the average is 232. There are 400 organic pig farms representing 0.6% of national production. The French pig industry employs 113,300 people for a turnover of €6.185b.

Organic pig meat

Due to shortage of quantity and a decrease in the quality of organic proteinaceous crops in the EU, European authorities have decided to allow the introduction of 5% non-organic proteinaceous feed in the diet of organic pigs for the next three years: 2015, 2016 and 2017.

Markets

Pigs: The 56 TMP base price lost €c7 last Monday. Abattoir activity is currently low but pig requirements are easily covered.

Piglets: Prices are decreasing in Europe. Last week, FNP-FNCBV prices eased by €c 3 for 25kg weaners and fell €c71 cents for 8 kg piglets.

Cuts: According to France-AgriMer-Kantar Worldpanel, despite a disappointing late June and early July, purchases of fresh pork in France have improved. From December 2013 to 13 July 2014, they increased by 2.4% compared with the same period a year earlier, +2% for loin and +5.3 % for other cuts. Prices also increased, up 1.2%, with loins at €7.46 per kg and €5.93 per kg for other cuts.

Pork prices RUNGIS week commencing 4 August 2014
Cut name	Price range (Euro/Kg)
Back fat, rind-on	0.50
Trimmings	1.37
Leg	2.75
Loin including chump	3.17
Loin excluding chump	2.90
Belly extra without trimmings	2.88

Denmark

Markets

The European market is still dominated by the seasonal holiday period in many countries. Low slaughter pig availability, however, means that the market is balanced between supply and demand. This week, both fresh hams and other cuts on the European market traded at virtually unchanged price levels. The UK bacon market and third-country market activity was reported as stable.

Danish Slaughterhouses - payments week commencing 4 August 2014
Slaughterhouse	Danish Crown	Tican
Slaughter pigs (70.0 – 86.9 kg) Difference to last week	€1.422 unchanged	€1.422 unchanged
Sows (Above 129.9 kg) Difference to last week	€0.899 unchanged	€0.899 unchanged
Boars (Above 109.9 kg) Difference to last week	n/a	n/a

Germany

Export push

The German pork sector under the umbrella of German Meat is prioritising Asia. Exactly like the UK, they want more plants and trotter approval for China. They would also like to export processed pork products. For Korea and Japan, processed pork products come top of the agenda. German authorities are also negotiating market access to Taiwan and Australia.
(Source, Fleischwirtschaft)

Pork Prices Hamburg Market Week commencing 4 August 2014
Cut name	Price range (€ / kg)
Round cut leg	2.35/2.45
Leg (boneless, rindless max fat level 3mm)	3.15/3.30
Boneless Shoulder	2.45/2.60
Picnic Shoulder	2.00/2.25
Collar	2.70/3.00
Belly (bone in, ex-breast)	2.10/2.40
Sheet Boned Belly (rindless)	2.00/2.30
Jowl	1.25/1.35
Half Pig Carcasses U class	2.00/2.10

Spain

Pork prices Barcelona Market Week commencing 4 August 2014
Cut name	Price range (€ / kg)
Gerona Loin Chops	2.85/2.88
Loin Eye Muscle	3.73/3.76
Spare Ribs	3.38/3.41
Fillets	5.48/5.51
Round Cut Legs	3.30/3.33
Cooked Ham	2.74/2.77
Rindless Picnic Shoulder	1.78/1.81
Belly	2.63/2.66
Smoked Belly with Spare Rib Section Cut off	3.06/3.09
Shoulder chap or Head Jowls	1.16/1.19
Back Fat, Rindless	0.63/0.66

Bulgaria

Two new Bulgarian products get EU protection

The EU has approved two products from Bulgaria to be listed with “Preferred Geographical Indication” status. The two products are “File Elena” a dried raw meat product made from pork tenderloin originating from the town of Elena in northern Bulgaria, and “Lukanka Panagyurska” a traditional sausage made from fresh beef and pork. The denominations of the two products will be added to the list of more than 1,200 products already protected.
(Source, novinite.com)

Russia

Rosselkhoznadzor is considering different import opportunities

Sergey Dankvert, the Head of Rosselkhoznadzor, is planning to hold negotiations with the South African Republic and South Korea regarding import of pork to Russia. Mr Dankvert also mentioned that import of the South Korean pork may begin when Rosselkhoznadzor is certain which regions of South Korea are free from foot-and-mouth disease.
(Source, pigua.info)

Ukraine

Higher production

According to the State Statistics Service, during the January to June 2014 period, Ukrainian farmers produced 110,800 tonnes of pork, which is 13.4% more than during the same period a year ago. The biggest increase took place in Kharkivaska (190% higher on the year), Sumska (up 141%) and Dnipropetrovska (up 132%) oblasts.
(Source,Pigua.info)

Belarus

Lukashenko compared pig farms to nuclear plants

Aleksandr Lukashenko, President of Belarus, said that the rules used to protect pig farms from the threat of the ASF are extremely important and those who fail to follow them will be held responsible, even charged with a criminal offence. President Lukashenko urged the directors of the pig farms to arrange safety measures “as strict as those at nuclear plants” on the enterprises they manage. Also the President reminded the officials of the importance of recovery of pig population in Belarus.
(Source, belta.by)

China

Huanshan’s plans

The company based in Anhui plans to increase its production base from 10 to 50,000 sows by 2016 with integrated fatteners under contract. Two news farms of 10,000 and 12,000 sows are under construction. Their terminal product is (LW x LD) x (Du X Pi) using Nucleus genetics and one boar farm and two multiplication farms. The company now owns 21 feed mills, employs 3,000 staff and has a turnover of about £400m.
(Source, Porc Magazine)

Chinese wholesale prices week commencing 4 August 2014
	Price (RMB/Kg)	£/Kg	Change on week
Pig Carcases	19.12	1.85	+1.92%
Source: BOACL
Prices collected from wholesale markets in 36 medium and large Chinese cities