Quarterly Newsletter for Pigs Suppliers

Transcription

1 Quarterly Newsletter for Pigs Suppliers Issue 3 4 th Qr/2017

2 Dear, Soon we will welcome Christmas and New Year. Let us all celebrate and enjoy this special time with our families. I wish you all merry and exceptional Christmas, and prosperous New Year. Have 2018 full of both professional and family delights, and successes. Piotr Kowalski Livestock Procurement Managing Director Animex Foods

3 2017 was a Challenging Year Dear Readers! 2017 is about to be over. It was a very challenging year, a year of serious obstacles for pig suppliers. The African Swine Fever issue did not go away. ASF is still at loose and threatens production business. This year, the virus jumped from farm to farm travelling on wild boars. This December, the government adopted the special act on ASF. It includes some essential changes and the purpose of the act is to help fight the virus. We are now one step from the act, the government believes that, with the President s signature, it will be in force as of the end of December. More information about the ASF in Poland is presented in this newsletter.

4 Next year Pork and Poultry Good Times? The European Union Commissioner for Agriculture and Rural Development estimates an increasing trend on pork and poultry markets in Pork will grow in all businesses next year. Given the results of 2016, the EU analysts for Agriculture and Rural Development Commission estimated drop in both production and export. They envisage an increase of import with the consumption maintaining the same level. We will be aware of official data for 2017 soon. Poultry business will grow next year, showing an increase in all four categories. Pork - 1 st half of 2017: production and heads In the 1 st half of 2017, hog production equated 1182k tones and was 2.5% less vs. last year. With the production drop we had a growth the headcount, which by December 2016 increased by 4.9%, in March 2017 by 7.6% and in June by 4.5%. Given that, we could assume the production drop was incidental and probably partially caused by the ASF. The Institute of Agricultural and Food Economics - National Research Institute assesses that by the end of this year the headcount of pigs may go down by 2.5% giving ca. 11.3MM heads. The ongoing drop in pigs production profitability may lead to a minor (ca. 2%) drop of headcount in June 2018 ending with 11.1MM heads. Andrzej Pawelczak Press Spokesman and PR Director

5 African Swine Fever (ASF) Left of Wisła DETECTED ASF OUTBURSTS: YEAR BOARS PIGS TOTAL As of: Soon we open the fourth year of fight against ASF. The first case of the virus in Poland dates back to Since that time, we have had 742 infected boars and 104 outbursts on pig farms. This year only, we had 581 cases of ASF infected boars and last outburst on a pig farm was detected in November 2017 in Lublin province. Moreover, we can see more ASF cases in the central of Poland. Most of infected boars were found in Legionów, Piaseczno and Warszawa Zachodnia districts. Dead boars were found in the city of Warsaw. That, as the GIW data show, is due to human factor i.e. transportation of food. We all should be aware that the virus and its spreading pace will affect our economy and bring serious consequences. The losses are on both sides of the producers and the meat business. The ASF crossed Wisła hence we must fight the virus more quickly. A special act prepared by our government is to help with the fight. The key assumptions of the act include: - constructing a fence at the eastern board of Poland to prevent infected wild boars getting into our contry. - uniform hunting law to improve shooting of wild boars,

6 - paid holiday leaves for hunters to encourage them to do the emergency shooting, - Veterinary Inspection - possibility to call up epizootic investigation teams. We can only hope, that with the special act in-forced we will be able to reduce the number of ASF incidents. Sylwia Mazurek Analysis Manager

7 Internal and Local Cereals Markets I. Poland Typically for the before-christmas-time we experienced slow drop. Most of the processors have satisfied their demand and reduce their purchasing as far as by mid-january That minor demand is the result of little drop of prices which in turn cause cereals producers to cease from selling their products. Furthermore, due to delayed and prolonged in time corn harvest prices went up. Given no export, what so ever, and the market structure, which does not encourage any intensification of purchasing we will not see, long term, such high prices anymore. Cereals prices in Poland: Cereals Prices PLN/t Consumer wheat 12,5% protein Feed wheat Consumer rye Feed rye Triticale Feed barley Dry corn Corn moisture 30% Interestingly, the highest prices are in the South - East regions. II. International The EU and the USA s wheat is still no competition to the Russian one. Since the beginning of 2017/2018 season, Europe fails at competing with Russia s highest harvests of the season. Moreover, Russia struggles to keep export lead position in the Black Sea region. Despite the fact that American wheat has the lowest price, strong US dolar worsens even more the uncompetitive position of the wheat. Drops on Paris commodities stock is yet another,

8 unfavored phenomena granting more to our major competitor. Now, should Russia settle with Turkey on withholding bans on their products our situation would decline more. With winter period, and small and medium Russian harbours frozen, leading to a limited export pace, the EU and the USA may stand a chance with this competitor. We are talking January-March opening. This is the period that would not allow for better dynamics of reloading ports in Poland either. Our wheat is one of the most expensive in Baltic Sea region. We should look for possible export directions like Lithuania, where they have poor quality cereals or France demanding for high quality wheat. Krzysztof Ulas Raw Material Purchasing Manager

9 Christmas with Krakus Our life is much faster nowadays. Our primal focus is work. So simple and yet healthy meal solutions are what we are looking for. Convenience food is the major trend on Polish market today. All that due to the high pace of our days, this however does not mean that we do not want to eat healthy. We are aware of the importance of healthy diet on one hand, we are open to new tastes and we like sharing our culinary experiences on the other. We do have the energy but we lack time. What we want is to have healthy, nutritious food with the minimum time spend on preparing it. Krakus saw all that and came with a wicked reply. We launched the sous-vide meat line. This is the preparation method that was used and known to fine restaurants only. Sous-vide stands for vacuumed sealed meat with spices which is then slowly cooked for a long time at low temperatures guaranteeing juicy and full of taste meat. That Krakus, at home, takes about 30 minutes in the oven and it will give you a delicious meal. You can t miss our new offer: loin with plum and porcini mushrooms ham. Take them with you and amaze your family and friends at Christmas table. More about the sous-vide method is in Krakus campaign - This is how sous-vide meat tastes like. Aleksandra Gordziejko Trade Marketing Manager

10 Livestock Procurement Department Contact Ełk Animex Foods Division in Ełk ul. Suwalska Ełk tel: Starachowice Animex Foods Division in Starachowice ul. Krańcowa Starachowice tel: Szczecin Animex Foods Division in Szczecin ul. Pomorska 115b Szczecin tel: