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AHDB Pork Weekly Export Bulletin

29 March 2016

AHDB Pork Weekly Export Bulletin - 29 March 2016AHDB Pork Weekly Export Bulletin - 29 March 2016

British Pig Executive Weekly Export Bulletin

January 2016 was another great month for UK pork exports. These increased by 17% to 16,900 tonnes year-on-year, driven by a doubling in shipments to China. The value of UK pork exports also increased by 23% to £17.9 million led by high value exports to the USA and Australia. Exports of offal more than doubled, up 135% in January compared with a year earlier, continuing the strong export performance of recent months, with exports to China up 175% and exports to the Philippines also markedly up compared with January 2015.

The European Commission forecasts an increase of European pork production to 258.9m head in 2016, meaning an unwelcome net rise in an oversupplied market. The statistics from the Commission are unclear as one forecast indicates a tightening of supplies in the fourth quarter while another graph shows an expansion…

Copa-Cogeca, the European representative of European farmers welcomed the new support package for the pork and diary sectors but with some reservations, such as the lack of progress in reopening the Russian market. The UECBV, which represents meat processors, reacted more negatively, asking for more short term measures but did not push for a reopening of the Aid for Private Storage scheme.


Espuña expanding its facilities in Utrilla
Espuña has launched the expansion of its facilities located in the industrial area of Santa Barbara in Utrillas, a town in the province of Teruel. With this expansion, Espuña will increase its slicing capacity by 33% (Source, Alimarket)

Noel launches new factory
Noel Alimentaria has already started producing products at its new plant, following an investment of €30m. Their business broke a new record in 2015, for its increased commercial activity both domestically in Spain and on export markets. (Source: Alimarket)


Following two weeks of increasing prices, the German pig market is now coming under pressure. Due to the Easter holidays, several slaughter days will be lost, while the number of slaughter pigs is slightly increasing. In addition, the meat market had some impulses at the start of the week, but slowed during for the second half. As a result, almost all slaughter facilities demanded a price decrease of between €c3 and €c4 per kg. On the other hand, most producers expect the current situation to be temporary, with the ending of the Easter holiday and the beginning of the barbecue season on the horizon, they predict that the market for pork cuts will improve. Nonetheless, the recommended price was reduced by €c2 to €1.31 per kg. (Source, AMI)


The French taste for charcuterie
According to a survey completed by Opinionway for FICT (the Federation of pig meat processors), French consumers like charcuterie products very much. A sample of 1,010 people representing the French population above 18 years old were surveyed. 95% of French people eat charcuterie products and 67% consume charcuterie products at least once a week. The preferred product, not surprisingly, is cooked ham with 59% (65% women) consuming the product. The dry sausage “saucisson” is the second preferred product with 57% and received a higher score of 68% for younger consumers aged between 18 and 24 and 67% with people from the south east region. Finally, dry and raw ham takes third place on the podium at 56% (65% for elderly people and 68% for people from south west of France).

Transition year for special offers
The control of special offers of fresh pig meat set in June 2015 will cease in June this year. This is a worry for pig meat processors, especially when the offers are predicted to be high over the next six months. According to David Bazergue, General Manager of FICT, the commercial negotiations with French retailers started with a deflation request ranging from 3% to 10%. A survey organised with members of FICT shows that 35% of contracts with retailers have been signed during the last week of negotiations, and over 20% on the last day. 70% of processors have been threatened with delisting. At a time when the pressure increases to mention the French origin for raw material, FICT believes French retailers do not play a fair game.

Pork: A more auspicious European market and a domestic market in balance, particularly with a little less delays in moving pigs, has allowed French producers to begin the week with a small increase in the 56 TMP base price. Very little price progression is expected in the short term, especially as next week is only a 4 day slaughter week, this increases pressure on the offer in the short term.
Piglets: Fluidity remains in the French market. The rates keep on going back and forth between a consolidation and a slight increase depending on which categories and regions are concerned. This is due to supplies that are barely sufficient to meet demand and the uncertainty of what path charcuterie product prices will follow mid-term.


Ukraine hit with African swine fever
A farm in the Kirovograd region of Ukraine has had to slaughter more than a dozen pigs after the ASF disease was detected by health officials this week (Source,

Higher pork exports
According to State Fiscal Service data, total pork exports in February 2016 totalled 425 tonnes compared with 293 tonnes in January. For reference, December 2015 shipments totaled 1,562 tonnes. (Source,


Prestage Farms to build new pork plant
The new abattoir in Mason City, Iowa will have a capacity of 10,000 pigs per day for a total investment of US$240m (£167m). The plant will employ 1,000 staff. (Source, Meat & Poultry News)

Yet another antibiotics conference
On 16 March, The National Pork Producers’ Council hosted an Antibiotics Conference in Washington DC in a Forum context with an impressive array of speakers. (Source, own)

USDA consolidates trichinae regulations for pork
The USDA’s Food Safety & Inspection Service (FSIS) is announcing a proposed rule that would consolidate and streamline existing regulations for meat and poultry products. The rule would eliminate redundant trichinae control requirements for pork and pork products and consolidate regulations for thermally processed, commercially sterile meat and poultry products. (Source: Pork Network)


Québec pork sector in good stead
Production from the export-orientated Québec pork sector has remained relatively constant at 700,000 tonnes since 2008 and is concentrated in the Southern provinces: 29% in Montégérie, 20% in Chaudières and 13% in Centre from 1,905 pig farms. It was very profitable in 2014 and 2015, helped by the devaluation of C$ against US$. The main abattoirs are Agromex-Ménard, Olymel St Esprit, Du Breton and Asta. Market prices have been replaced by contracts and quotes based on US prices. Prices also benefit from a stabilisation mechanism called ASRA. An average liveweight of 130kg is sought. Olymel, the leader, slaughters 160,000 pigs per week and has a turnover of £1.3b. Ménard, an integrator slaughters 22,000 pigs per week for a turnover of £160m. The company owns 25,000 sows with controlled genetics, including meat pH and has recently built a further processing plant. Du Breton is specialised in organic pork. The whole filière represents 22,000 employees. Some 70% of the production is exported to 70 countries, representing 8% of world pork trade. It is expected that production will grow by 10% over the next few years and more than £500m will be invested in the sector in pig health, welfare and infrastructure. Finally, Porc du Québec benefits from strong consumer marketing and political lobbying with a much improved image. The pork campaign led by Marketing Director Danielle Vaillant shows pork as a premium yet affordable food and is concentrating on cooking methods to avoid dry pork. Communication is done by television, web, magazines and jazz festivals. (Source, Porc Magazine)

Second Pork Show
This conference-cum-exhibition, the main meeting of the Quebec pork sector, has held its second edition. The theme were unsurprisingly pig welfare, antibiotics use and new emerging diseases. (Source, Porc Magazine)


Agri-food agreement with the USA
The visit by President Obama, included the signing of an agri-food collaboration agreement. With food imports worth £1.4b, including pork, the Cuban market is attractive to US exporters. (Source, Eurocarne)


Brazilian Pork Exports a step closer to South Korea
For Brazil, the opening of this market is a step closer, the market could result in business of up to US$153.6m per year for Brazilian exporters . (Source, The Pig Site)

El Salvador

Tariff reduction threatens pig production
Currently, there is a tariff of 24% on imported product, but by 2019 it will be reduced to zero, following the agreement of the tariff reductions agreed as part of the Free Trade Agreement (NAFTA) in 2001. The concern is that El Salvador already imports 50% of its pork requirement and the removal of the tariff will favour foreign imports. (Source, Eurocarne)


Stricter controls
The Bureau of Customs (BoC) has gained new powers to control and clear meat consignments. These include verifications of the value of containers of frozen meat. A secondary examination for consignments of chilled meat will also take place. In 2015, the BoC seized and destroyed 3,000 tonnes of smuggled meat from the Manila International Container Port. The consignees were Jcore, Lucky Sisters and Lean Pasture. (Source, The Standard)

New Caledonia

New genetic centre
The territory wants to increase pork production as part of an effort to diversify the economy. Also, New Caledonia is well placed to supply pork in the region, a large importer, ADN from France, will supply genetic material. (Source, Porc Magazine)


Record weaner prices
Weaner prices reached a record high of Yuan 39.75 per kg (about £4.00 per kg), more than double the price they fetched at the same time last year. This indicates that the strong run of pig prices will last at least until the summer. (Source, CNAgri)

New food safety laws
The new 2016 laws regarding food safety will regulate the use of more than 1,000 pesticides and 100 veterinary drugs. Although new regulations regarding food safety are decreed every year, the issue of controls and enforcement remains. (Source, CNAgri)

Guanxi to control pig population
In order to lessen the impact of pig production on the environment, the southern province will forbid pig production in some areas. According to the local government, overall pork production is expected to remain stable. However, one would expect some fall of the order of 5-10% (Source, CN Agri, our comment)

Qiglian Food is listed on New Three Board
The Zhejiang pork producer and processor has a turnover of Yuan 1,033m (£100m) with profits of Yaun 4m (£400,000). (Source, CNAgri)

Da Bei Nong Group expands
The group is buying Riquan Agriculture & Animal Husbandry and will invest in Xiaomin Agriculture. It is also investing Yuan 2.44 billion (£240m) in pig production, feed mills and pork processing plants in Heilonjiang and Jilin provinces. (Source, CNAgri)

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