Regulations and operations of pig production in the EU

Transcription

1 Regulations and operations of pig production in the EU Knud Buhl, Director, Department for International Trade Danish Bacon and Meat Council 2009 Global Pig Forum, May 2009

2 Agenda EU pigmeat s position in the world Forecast 2009 Specific EU regulations Conclusions

3 World meat production in mio. tonnes Total: 155 Mio. Tonnes 1992 Total: 230 Mio. Tonnes 2008 Total: Mio Tonnes 2009 (est.) Sheep and lamb Beef 1992: 5% 2008: 4.6% 1992: 30% 2008: 22.8% Pigmeat Poultry 1992: 25% 2008: 32.5% 1992: 40% 2008: 40.1% Source: GIRA 3

4 Development in World Meat production 1000 tonnes Poultry Pigmeat Beef Lamb Source: GIRA 4

5 World Trade in Meat ( 1000 t cwe ) GP share Pigmeat % Poultry ,6 % Beef ,7 % Sheep and Lamb ,4 % Source: GIRA 5

6 World pigmeat production (millions tonnes) Total: 83,6 mil. tonnes 1999 Total: 93,8 mil. tonnes 2009 (est.) China 46,0 mil. t 49,0% Source: GIRA Others: Canada 2,0 mil. t 2,1% Brazil 3,0 mil. t 3,2% Russia 2,1 mil. t 2,2% Japan 1,2 mil. t 1,3% Others 7,4 mil. t 7,9% EU-27 22,0 mil. t 23,5% USA 10,1 mil. t 10,8% 6

7 Development in world pigmeat production 1000 t Slaugtherweight China EU-27 USA Brazil Canada Russia Japan Others (est.) 38,8 22,1 8,6 1,7 1,3 1,5 1,3 5,6 46,0 22,0 10,1 3,0 2,0 2,1 1,2 7,4 2012(DS) 98/12 55,1 22,1 10,5 3,8 1,9 2,3 1,2 7,9 +16,3(+42%) 0,0(0%) +1,9(+22%) +2,1(+123%) +0,6(+46%) +0,8(+53%) -0,1(-7,7%) +2,3(+41%) Total 80,9 93,8 104,8 +23,9(+30%) Source: GIRA 7

8 EU net trade of pigmeat IMPORTS EXPORTS Tonnes product weight Jan- Jan

9 Destinations Destinations EU exports of selected PIG products: Trade figures (COMEXT tonnes product weight) Jan-Jan 09 Compared tonnes % tonnes % tonnes % tonnes % tonnes % to 07 Russia % % % % % + 4% Hong Kong % % % % % + 35% Japan % % % % % - 17% Ukraine % % % % % +++ China % % % % % + 12% South Korea % % % % % - 32% Croatia % % % % % - 6% USA % % % % % - 27% Belarus % % % % % - 9% Angola % % % % % + 8% Australia % % % % % + 4% Philippines % % % % % - 65% EXTRA EU % change + 8% - 9% + 34% + 5.9% 9

10 Pig slaughter in the EU - 15 and EU - enlarged in 1000 Tonn EU - 15 New Member States EU 27 as from

11 Pig Herds EU 2008 (selected EU-countries representing app. 80% of EU-prod.) Country Census Total 1000 head Total %-change Sows in pig %-change Germany Dec 26, ,6 Spain Dec 26, ,7 France Dec ,1 Poland Dec 14, ,6 Denmark Jan 09 12, Netherlands Dec 11, Italy Dec 9, Romania Dec 6, Belgium (est.) Dec 6, UK Dec EU Source: EU-Commission

12 Pig Production in the EU %- change 2008: Quarter Quarter Quarter Quarter Total Estimate (-) 2.1% Source: EU-Commission

13 Global production of pig forecast for 2009 EU-27: -2-4% USA and Canada: -2-3% China:+ Brazil: +/- Total: (-) 13

14 Consumption forecast for 2009 Financial/economic crisis Influence by beef and poultry on pork consumption North America and Western Europe: +/- China and rest of Asia: + Russia and Eastern Europa: - Total: (+) 14

15 Price 2009 Production: (-) Consumption: (+) Prix = (+) Unknown factors: financial/economic factors, exchange rates, protectionism veterinary/sanitary obstacles Financial situation for producers: (pork price) + (production costs)= +/-? 15

16 Key factors influencing European competitiveness Costs (feed, labour, investment, etc.) Efficiency (feed conversion, pigs born, slaughtred pigs per sow, time allocation) Legal factors (manure and odor, transportation, food safety, animal health, animal welfare, access to biotechnology) Trade factors (trade access strategies and promotion, ability to gain trade access) Quality factors (consistency, uniformity, ability to supply value for money )

17 Specific EU regulation Environmental Obtaining of environmental licences according to the IPPC-directive which implies compliance with the Nitrate, Habitat and Water-directives. GMO (negative attitude towards GMO)

18 Specific EU regulation cont Animal welfare (91/630/1991, 88/2003, 93/2003) Loose housed pregnant sows from 4 weeks after service in all new buildings Weaning of piglets no earlier than 28 days Tranportation of pigs (max. 12 hours without rest) Space requirements for different catagories of pigs Tail docking, castration and tooth clipping only allowed within 7 days after birth Rooting and manipuable materials Sick pens and house facilities

19 Specific EU legislation cont Food safety High cost to food safety (veterinary control costs) Meat- and bonemeal Antibiotic Growth Promoters prohibited in 2006

20 LOOSE HOUSING SYSTEMS FOR SOWS 1998

21 Environmental cont Manure (9 months storage capacity in DK since 1993, 6 months in EU, UK 2013) Environmental approval ( 75 AU in DK, 250 AU in EU) Application of manure 140 kg N/ha in DK/ 170 kg N/ha in EU yearly fertiliser account, Only apply 10 pct. below economic optimum Buffer zones near vulnable areas (Only 70 kg N/ha) Green duties 8,9 øre pr. kwh Duties on pesticides Duties on water use

22 FARROWING SOWS

23 PEN DESIGN

24 Animal welfare (housing facilities): Rooting materials of natural origin (Plastic/ rubber ect. not allowed

25 Animal welfare housing facilities: Cooling facilties in all new housing units (Sprinkling systems)

26 Other animal welfare requirements Housing facilities ½ solid floor in pens for weaners (full slattered floor allowed in the EU) 1/3 solid floor in pens for finishers (full slattered floor allowed in the EU) Veterinary issues Pain relief during castration Vets not allowed to sell medicine Health advisory agreements based on monthly visits Teeth clipping banned Tail docking only allowed within 2-4 days after birth

27 Spe. Danish regulation - food safety Food safety Veterinary burden on slaugtherhouses ( 17 d.kr. pr pig) Salmonella plan (The annual cost to the industry of running this programme amounts to around DKK27m per annum) Antibiotic Growth Promoters prohibited in 2000 ( cost of 7-8 d. kr. pr. pig due to loss of production efficiency)

28 COST OF PRODUCTION JUNE 2008

29 Cost of production 1. Q ,00 12,00 10,00 8,00 6,00 Finance Labour Breeding/Veterinary etc. Feed 4,00 2,00 0,00 Brazil Canada USA France UK Denmark Netherlands Spain Germany

30 Feed Cost in Denmark Foderomkostning i kr. pr. kg slagtekrop 9,00 8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00 Kr. pr kg 8,24 4, Danmark

31 Conclusions Reduced production in 2009 Increasing pig meat prices in 2009 Improved economy from negative to positive in 2009, depending on production cost Specific EU-legislation (animal welfare, feed cost, environment, food safety etc.) Long term relative loss of global market share