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AHDB Pork Weekly Export Bulletin

16 May 2016

AHDB Pork Weekly Export Bulletin - 16 April 2016AHDB Pork Weekly Export Bulletin - 16 April 2016

British Pig Executive Weekly Export Bulletin

AHDB once again hosted the British Meat pavilion at SIAL China in Shanghai. Eight pork exporters joined AHDB Pork on the pavilion at this leading meat show. Due to the unique market conditions in China and unprecedented demand, business can only be described as frantic, with high attendance during the whole duration of the event. Chef Louis Chen showcased innovative British pork dishes. AHDB Pork Chair, Meryl Ward, hosted a British Pork dinner to coincide with the show at the iconic Peace Hotel in Shanghai. The menu highlighted the quality of British pork that major importers were able to taste for themselves.

A Canadian meat mission will visit the UK next week for exchanges in view of the new EU-Canada Free Trade Agreement. The party will include a representative of the Canadian Pork Council.

A Chinese mission including agriculturalists from large Chinese processors will also visit the UK next week, specifically to study pig welfare systems and standards in the UK. Visits to pig farms are on the agenda.
Export was the theme of the successful AHDB Pork stand at the Pig & Poultry fair. This allowed us to present our work to producers and allied trade.


Decline for cooked hams
Retail sales of cooked ham declined in volume last year, as it did the previous year. However, in 2015 the value of sales also declined. The negative impact of media reports on cancer and charcuterie last year and animal cruelty videos taken in abattoirs did not help the market. The industry is now focusing on innovation to attract shoppers, be it with new brands such as “J’aime” by Fleury Michon, new claims: like “without antibiotics” by Brocéliande and an increased focus on local and regional supply as “100% Britton” by Terres de Breizh are needed to compete with poultry charcuterie, which has not been hit by negative news. Gradually, market share is being gained by poultry based charcuterie products, which can also benefit from the growing interest for halal products.

Paris cooked ham represents 33% of the total cooked ham market (compared with 25% in 2011), this is reflected in a price decrease of 1% during the past four years but also an improvement in terms of quality: less polyphosphates, less salt and gluten free. Finally, the ranges “Le Bon Paris” by Herta, with a new sub-range ”Tendre and Epais” for thick slices and “Le Paris” by Fleury-Michon, with new smoked ham, are pulling the development of Paris ham.

Pork: Prices were stable last Monday at “Le marché du porc Breton”. The 56 TMP base price increased by €c0.3 in a context of regular demand and important offers. The average weigh for carcasses lost 240grams.
Piglets: Prices were stable or slightly increasing, according to the region. This tendency is to connect with stable offers for a better demand. FNP-Coop de France prices increased by €c1 for 25kg weaners and increased by €c21 for 8kg piglets.
Cuts: According to “Le marché du porc Breton”, Japanese imports increased by 20,6% in the first quarter compared with the same period of 2015. The leading supplier remained the United States, which increased their sales by 11.4% to 62 876 tonnes. Next came Canada (+10.3% to 42 437 tonnes) and Denmark (+26.7%, 28 834 tonnes). At the foot of the podium came Spain and Mexico. With an increase of 84.6%, France came in ninth position with 1,625 tonnes.


Large demand for slaughter pigs in Germany
Higher temperatures, the start of the barbecue season and family celebrations in May resulted in a lift in demand for pork cuts and an overall active meat market in Germany over the past few weeks. This was also true for the current week, when available cuts were barely sufficient and some, especially necks,were scarce. As a result, slaughter facilities ordered high numbers of pigs, while their availability has decreased. Particularly, producers mention an undersupply in Northern and Western Germany. Even though some slaughter facilities demand an unchanged pig price to allow the prices for pork cuts to catch up, the current situation enables the producers to increase the price even further. Therefore, the recommended price once more increased to €1.42 per kg. (Source, AMI)


Higher exports
According to Interporc, in 2015, Spanish exports were 8.41% higher than in 2014 and 22.58% higher than 2013 values. A characteristic that stands out for the sector is the extent of its penetration into the world’s markets. In fact, in 2015 the sector exported to 126 different countries, with 73% destined within the EU and 27% to third-countries. (Source:

Campofrio has closed the first quarter of year 2016, with sales of €444.25m, with a product volume of 105,636 tonnes, representing a slight decrease of 0.5% and 0.1% respectively. However, the evolution of business in Southern Europe, especially Spain, and the USA (up by 1% and 3.8% respectively) partially offset poor results registered in the whole of France, Germany, Belgium and Holland. (Source, Alimarket)


HK invests in pork processing
HK Scan the Finnish meat concern is investing €12m in a new bacon plant located in Swinoujscie, near Szczecin on the Baltic. The plant will be operational from 2017. (Source, HK Scan)


Have we reached the peak?
Carcase prices this week rose again to RMB26.51 per kg (£2.82 per kg). However, it looks like domestic supplies are now increasing, meaning a possible downwards readjustment. The high price of pork is raising concerns. The City of Ningbo is putting 30,000 “reserve” pigs on the local market to cool down prices and the City of Beijing is releasing 3,000 tonnes of frozen pork from its reserve. (Source, CNAgri, various)

Shineway’s results helped by imports
With the high price of local pork hitting margins, Shineway has benefited from cheaper US imports from Smithfield Foods in 2015, as the company declares revenues of RMB42.697b (+2.9%; £4.5b) and profits of RMB5,675b (+5.63%; £604m). The group hopes to market 300,000 tonnes of end product in 2016. (Source, CNAgri)


Protectionist policies
Regarding meat, Argentina has one of the most protectionist policies in the world. With reference to EU pork, only Denmark has (limited) access to the market. (Source, UECBV)


Brazilian pork is more competitive
The continuing weakening of the Real due to the internal political and economic difficulties of Brazil are making pork exports highly competitive against EU pork. The value of the Real against the US$ has fallen from 0.63 to 0.28 over the last five years. Still, much of this advantages has been eaten by inflation. (Source, Rabobank)


Market for EU pork?
The UECBV, the European processors’ organisation is bullish with regards to pork exports to Cuba, particularly for Spanish exporters of fresh and processed pork. (Source, Global Meat News)


Organic standards
After many years of prevarication, USDA has started to work on national organic standards for livestock products. At the moment, there are different levels defining what is “organic” and the situation is unclear. (Source, Boerderij Vandaag)


Prospects for 2016
Artur Loza, President of the Pig Producers Association, outlined some factors impacting the pork market in Ukraine, in an interview on 11 May. The first was falling demand for pork produce, followed by the record dispersion of ASF, 40 cases were registered in 2015. A third factor was the cancellation of a special VAT scheme, which is also harmful for the pork industry. Currently, there are 3.8m animal units in the commercial sector and 3.5m animal units in private household. In 2015, the share of households in pork production reached 51% for the first time. (Source,

Volodymir Lapa, Head of the Government Service for Safety of Food Products and Protection of Consumers, has stated that attempts to contain ASF outbreaks in Ukraine have not been successful. Two more cases were registered in April in the Odesa Region. According to Mr Lapa, the reason for ASF eruption lies in the pork production culture, as many households and small farms do not comply with the sanitary and veterinary requirements. Apart from control measures it is important to raise awareness among small farmers as to the risks of the disease spreading and the necessity of compliance. (Source,


Primorye Territory aims to supply Russia’s Far East
A number of new livestock breeding farms are scheduled to open in the Primorye Territory, aiming to provide enough pork for the entire Russian Far East Region. A new pig-breeding farm with a capacity of 83,000 pigs will be opened by October this year. Sixteen more farms will be in operation by 2020. (Source,

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