Export Bulletin. April/May 2012 Week 18

Transcription

1 April/May 2012 Week 18 Small German sow cull (down 18% in the first quarter to 226,000 heads) is driving up UK sow meat export prices to the terrific level of 1.50 /kg carcase. This represents a major turnaround from February 2011 when prices fell below 0.90 /kg. Well done to JSR for winning the prestigious Queen s Award for Enterprise in International Trade as recognition for outstanding export success. DENMARK Market The European markets show a positive trend. The weather is expected to improve and so is the demand for pig meat. The market for legs is stable and the market for front parts remains unchanged. Loins and backs are sold at satisfactory prices and quantities. As the barbecuing season is expected to start soon the demand for production meat and shoulders is improving. The market in China remains fine. Hong Kong remains closed leading to a stable demand for goods sold directly into China thus supporting Danish exports. Exports to Japan are satisfactory, and exports to Russia remain stable. (Sources, Danish Crown, Tican, Europa and Food Council). Danish Slaughterhouses - payments week commencing 30 April 2012 Slaughterhouse Danish Crown Tican Slaughter pigs ( kg) Difference to last week Euro Sows (Above kg) Euro 1,068 Difference to last week Unchanged Boars (Above kg) Euro Difference to last week Unchanged Euro Euro Unchanged Euro Unchanged

2 FRANCE Cartel? According to Figaro newspaper, the French authority in charge of trade controls suspects buyers at MPB (Marché du Porc Breton) in Plérin (Brittany) of discussing prices to the detriment of producers. Eight buyers have been listed by the newspaper: Cooperl, Kermené, Socopa, Gad (Cecab), Bernard, AIM, Bigard and Abera. Mountain pigs Georges Champeix, President of the Association of Mountain Pigs just launched, on 26 th April, a new collective brand Origine Montagne which gathers producers, slaughterers, cutting plants and charcuterie processors. This segment gathers together pigs and all parts of the industry agreed to distribute an added value product designed to compensate higher production costs. A survey showed that consumers claimed to be prepared to pay more for the final product, now they will have to prove this. Hénaff goes up The pâté manufacturer continues its progression and confirms an increase of 5.2% in its turnover in 2011 to 42.8 million. The launch of their glass jars (complementing the famous blue tinned range) was a success and supported an increase of 3% to reach 27% market share in value on the French market of pâtés and rillettes which decreased by 5.5% in value.. The launch of their fresh sausages is also a success with a growth of 14% in volume and 11% in value on a market which is decreasing in value by 2.7% and stagnating in volume with +0.8%. Piglets Nothing moves: prices remain firm overall, lack of movement of the supply and demand. No change is expected in the short term, even if fatteners may need to exercise more caution in their purchasing because of the weakness (temporary?) in the price for charcuterie pigs. 2

3 Cuts No surprises this week. Sales of regular cuts are more fluid thanks to the start of the month, the end of school holidays and especially the Bank holidays that focuses purchasing over three days. Nevertheless, supply is sufficient to meet the needs, and there is little change in prices. They might even tend to fall, due to falling prices of charcuterie pigs. Pork prices RUNGIS week commencing 30 April 2012 Cut name Price range (Euro/Kg) Back fat, rind-on 0,65 Trimmings 1,42 Leg 2,10 Loin including chump 2,82 Loin excluding chump 2,46 Belly extra without trimmings 2,46 GERMANY Market After a sluggish start to the week the trade has strengthened and a strong Wednesday alone was able to balance the previous days' deficit. The only products showing a slight increase in prices however are barbecue articles but still, the continuously poor weather forecast is causing concerns about the positive development coming to an end again soon. (Source, AMI) Production forecasts According to the farming institute AWI, pork production should hall by 1.9% in 2012 (Source, AWI). Food waste quantified One major area of environmental concern is the level of food waste. In Germany, early estimations gave the wide bracket of 6.5 to 20 million tonnes. A new detailed analysis from Stuttgart University shows that 26% of fruit, 18% of vegetables, 15% of bread, 8% of dairy products, 7% of drinks and 6% of meat and fish are wasted in the whole food chain. 3

4 Pork Prices Hamburg Market Week commencing 30 April 2012 Cut Name Price Range ( / kg) Round cut leg 2,15/2,25 Leg (boneless, rindless max fat level 3mm) 2,95/3,20 Boneless Shoulder 2,50/2,65 Picnic Shoulder 2,15/2,25 Collar 2,75/2,85 Belly (bone in, ex-breast) 2,30/2,45 Sheet Boned Belly (rindless) 2,25/2,45 Jowl 1,45/1,60 Half Pig Carcasses U class. 2,10/2,20 SPAIN Wholesale markets retain their importance The top 10 Spanish wholesale markets account for 5.5 m. tonnes of fresh and frozen food trade worth 9.8 bn. on 718 ha. Some 3,510 wholesalers, agents, importers, distributors and logistical companies operate there. Obviously the most active are Mercamadrid followed by Mercabana (Barcelona) and Mercavalencia (Source, Mercasa). Pork prices Barcelona Market Week commencing 30 April 2012 Cut Name Price Range ( /kg) Carcases (secondary grade) 1,703/1,709 Gerona Loin Chops 2,48/2,51 Loin Eye Muscle 3,41/3,44 Spare Ribs 2,88/2,91 Fillets 5,38/5,41 Round Cut Legs 2,42/2,45 Cooked Ham 2,05/2,08 Rindless Picnic Shoulder 1,63/1,66 Belly 2,20/2,23 Smoked Belly with Spare Rib Section Cut off 2,63/2,66 Shoulder chap or Head Jowls 1,23/1,26 Back Fat, Rindless 1,08/1,11 4

5 NETHERLANDS C1000 steps up the price war The supermarket chain now sends two folders per week to each Dutch household and is increasing the number of offers by 50%. The number of price promotions/stunts is up 7% so far this year. (Source, FoodHolland) Vion to lengthen payment terms Concerns were voiced as Vion plans to raise the time it takes to pay pig farmers from the current eight days. Vion blames the lengthening of payment terms by supermarkets. (Source, Boerderij Vandaag) IRELAND Success in Japan In 2011, Irish exports rose to 8,740 tonnes, which is a strong performance for the Irish pork sector. However, this only represents a bit more than 1% of Japanese imports. (Source, Irish Farmers Journal) RUSSIA Pig production to reach 4.53 million tonnes per year by 2020 According to the recently approved Strategy for Development of Food and Processing Industries of the Russian Federation, pig production should reach 4.53 million tonnes in live weight by If the target is achieved, Russia will be able to satisfy 88.3% of its need in meat products while in 2010 it was able to produce only 75% of the products needed. The average consumption of meat products per person in 2010 was 68 kg. To achieve the pig production target indicated in the 5

6 Strategy the Government is planning to invest RUR billion (~USD 3.37 billion) in the development of the meat production and processing industry. Yet, domestic pig-breeders and meat-processors may face serious problems increasing production due to Russia s entry into the WTO as the duty for frozen and cooled pork imported on quota (430,000 tonnes) will be cancelled and the import duty for live pigs will decrease from 40% to 5%. According to expert forecasts, this may lead to an increase of the share of imported pork on the Russian market from 30 to 45%. (Source, PigUA.info) ASF During the past 3 years, more than 218,000 pigs had to be culled in Sakhalin oblast due to ASF outbreaks. Now the Veterinary Agency is taking measures to prevent the spread of ASF in the region. The Government of Sakhalin oblast approved a 5-year plan of preventive measures, including the constant tracking of pig populations, regular veterinary examination, and vaccination. According to the data provided by an employee of the Agency, in 2011, 35,000 pigs were vaccinated against classical swine fever and in the first quarter of 2012 more than 8,000 pigs. (Source, Interfax-Russia) UKRAINE Purchasing price for pork growing According to the information provided by the Ministry of Agrarian Policy and Food of Ukraine, as of April 27 the average purchasing price for pork was UAH 18,229/t (~USD 2,267/t), a 2% increase compared to March 27 figures and 38% increase compared to the average price as of April 27, The wholesale market price also increased, and as of April 27 amounted to USD UAH 31.4/kg (USD 3.9/kg), also a 2% increase within last month period and 15% yearly increase. The retail market price was UAH 42.3 (USD 5.26/kg). The pork price increase in April was the result of the end of Lenten fast and celebration of Easter. (Source, PigUA.info) 6

7 USA Production, consumption and trade of pig meat upgraded The US Department of Agriculture USDA has updated its expectations for production, consumption and trade of pork in the world in Compared to recent figures from October 2011, there has been a revaluation of the estimated world production in 2012 from to now million tonnes. Production has been upgraded both for China, the EU, the US, Russia and Mexico. Also, the expected imports have been upgraded for Russia, China, South Korea, Japan and Canada, while exports have been written up for the EU, the US and Brazil. (Source, Markedsnyt for Svinekoed) BRAZIL No Brazilian pork for the EU The report on an audit by the Food & Veterinary Office (FVO) of the European Commission on Brazilian pork production shows a number of deficiencies in trichinella testing, microbiological testing a the ractopamine free programme. The report therefore concludes that full traceability and eligibility of pig meat with the potential to be exported to the EU cannot be guaranteed. (Source, European Commission) Aurora centralised semen sales Coopercentral Aurora, the pork producer has opened a central AI centre for pig semen with a R$ 2.3 m. investment in order to improve carcase standard. Previously, it operated three AI centres. 7

8 KOREA Opening for British pork products Waitrose has signed a marketing agreement to export its food to Department stores Shinsegae. Waitrose overseas sales are now worth 20 m. and are set to expand further (Source, Waitrose) AUSTRALIA Conversion on target So far 80% of sows are loose-housed in Australia and the country is well on target to convert totally from stalls and tethers by the deadline of (Source, AgraEurope) HUNGARY The future of Gyulai Húskombinat debated The historic company (created in 1868) and part of the Hungarian food heritage now in receivership (see bulletins passim) is still generating much anguish in Parliament and Government. Not only are hundreds of jobs at stake in difficult circumstances for the Hungarian economy but the great knowhow of traditional Hungarian sausages making could be lost. (Source, Élelmiszer) Total lack of confidence Processors, retailers and butchers are not passing the increase of pork prices are they worry about breaching psychological prices above which consumers stop buying pork. Nielsen has unveiled worldwide data showing that the Hungarian (natural pessimists, it must be said) are the least confident and score even lower than the Greeks and Portuguese. (Source, Élelmiszer). 8

9 SWEDEN Fewer pigs slaughtered During the first quarter of the year, 683,022 pigs were slaughtered in Sweden. This is a 10% decrease compared with the same period last year. The reason for the decline is the slaughtering of sows last year that resulted in 10,000 sows being taken out of production. Already last summer the Swedish pig producers organization warned about the development but now it is expecting that the decline will slow down during the third quarter of this year as some farmers have started investing again. (Source, Landbrugsmagasinet)