Export Bulletin. June 2011 Week 24

Transcription

1 June 2011 Week 24 EU pork exports registered yet another record in the first quarter with 356,000 t. (+31% against the same period of last year), whilst porcine offal jumped to 242,000 t. (+36%) led by a growth of 44% of volumes to Hong Kong. Exports of pork to Korea (58,300 t.), China (14,100 t.) and Belarus (17,900 t.) more than doubled. Exports of ham and canned pork (16,000 t.), sausages (28,000 t.) and live pigs (22,000 t.) and others like fats bring the total to more than 700,000 t. We believe that some analysts overstate the importance of the - US$ exchange rate to explain this sparkling performance which is due to a great number of factors including the responsiveness of European exporters. Lets hope the European Commission s forecasters finally acknowledge it DENMARK Market After several weeks of slow atmosphere on the European markets some positive trends have appeared. There is a fine demand for legs, collars and backs. Exports of shoulders and production meat are stable and the same applies to tenderloins. Exports to the British bacon market are stable as well now that the June contracts were settled at a lower price compared to the May contracts. As to markets outside the EU the trade is stable to Japan and the positive development in prices to China continues and further, an increasing interest has appeared from Russia, which is due to the fact that several Brazilian companies are excluded from the Russian market for the time being. (Sources, Danish Crown, Tican, Danish Agriculture & Food Council) Mortality of piglets is decreasing in Denmark The high mortality rate among piglets has been broadly discussed in the Danish media. Now the pig vet Kristian Viekilde points at the fact that the mortality rate is going down due to an active effort through breeding objectives and through the concept of taking care of the piglets in the

2 stables. Kristian Viekilde is surprised by the figures on mortality that have emerged in Danish media stating a mortality of 23.9 %. He finds that one has to look at the piglets that were live born and did breathe. The mortality among the live born piglets is 14 % in the entire country and with many producers it is lower than 10 %. These are the piglets that we must focus on during the daily work, but on the long term we must make an effort to reduce the number of dead born piglets he says. At the same time, Viekilde acknowledges that Danish sows have an exceptionally high number of piglets and that the farmers must make an extraordinary effort to save as many as possible. But he also criticises the lack of professionalism in the debate. (Source, Landbrugsavisen, DR) Danish Slaughterhouses - payments week commencing 13 June 2011 Slaughterhouse Danish Crown Tican Slaughter pigs ( kg) Difference to last week Sows (Above kg) Difference to last week Boars (Above kg) Difference to last week Euro Euro 0,935 Unchanged Euro Unchanged Euro Euro 0,935 Unchanged Euro Unchanged FRANCE A new brand A new brand has just been jointly launched by the French Confédération des Charcutiers Traiteurs (Independent charcuterie stores) and the Fédération des Industriels Charcutiers, Traiteurs, Transformateurs de Viande (pig meat processors / charcuterie manufacturers). The brand is Savoir Faire Charcutier Français or French Charcuterie Know How and is designed to add value to the French expertise in terms of Charcuterie. This brand includes all products listed in the French Charcuterie Code of Practice which hes been used for the last 30 years. The French labelling authority approved the new brand and logo. The SNIV SNCP did not approve this initiative as the logo could be used for products manufactured in France with imported meat. 2

3 Madrange Aoste Monique Piffaut One rumour chases the previous one and who knows today who will be the next owner of the Madrange group. Negotiations with Aoste seem to weaken whereas Monique Piffault is coming back in leading position. Bigard As part of a vast investment on their main site in Quimperlé ( 30 million over 4 years), Bigard will increase their storing capacity from 800 to pigs. The Quimperlé site has employees. Ongoing crisis Last year pig abattoirs lost 40 million and this sum could double in 2011, part of the problem is that retailers have not passed on the price increase of raw material. Pig breeders loose 0.20 per pig because of the price increase of feed which represents 60% of the total cost of production. Some producers reduce or stop production and slaughtering is already reduced by 1.87% in the west of France over the 4 first months of the year. Within 10 years the slaughtering of sows in Brittany decreased by 30% and most sows are now exported, mainly to Germany. Producers will not be able to cope with a fourth difficult year in a row, they hope consumption will improve with increased usage of the VPF logo, wait and see. Finally, from 1 st January 2013 pregnant sows will have to be reared in groups, this entails significant refurbishment in production units. Piglets The offer continues to progress on the French market. Prices are going down. It is a tendency which should continue in the next months. Cuts The market is correct. The exchanges are regular and prices are stable. No changes are envisaged in the short term. Everything will depend then on the weather. Pork prices RUNGIS week commencing 13 June 2011 Cut name Price range (Euro/Kg) Back fat, rind-on 0,50 Trimmings 1,25 Leg 2,21 Loin including chump 3,01 3

4 Loin excluding chump 2,56 Belly extra without trimmings 2,36 GERMANY Zimbo closes Steinheim plant Bochum based meat processor Zimbo, part of the Swiss Bell group, aims to bundle capacities in its convenience division. As of October 2011, the production from its Steinheim plant will be relocated to the much larger site in Bad Wünnenberg. Here, Zimbo had taken over convenience specialist Hoppe GmbH at the beginning of the year. Steinheim staff will be offered to continue work in nearby Bad Wünnenberg. The relocation is expected to be finalised by the end of Zimbo and Hoppe will continue to operate separately. (Source, fleischwirtschaft) THE NETHERLANDS Labelling of meat replacers At last and after years of abuse, the Dutch legislators have decided to clamp down on misleading labelling for meat replacers (Source, Food Holland). RUSSIA Rosselkhoznadzor proposes negotiations with Brazil on meat supplies The Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) of the Russian Federation proposed to have negotiations with the Department of Plant and Animal Protection at the Ministry of Agriculture of Brazil concerning the supplies of meat to the Russian Federation in the third week of June The official explanation is that the ban prohibiting the import of meat produced on 89 Brazilian enterprises into Russia will come into effect on 15 th June. 4

5 Earlier, the enterprises were found to have violated standards and regulations. At the negotiations in Moscow on May 18, the Brazilian representatives promised to fulfill the requirements in the future. However, according to the press service of Rosselkhoznadzor, no actual changes took place, and therefore the decision to limit the supplies was made. (Source, rbc.ru) UKRAINE Ukrainian animal breeding to decrease growth rates in 2011 The expected decline of the profitability of producing all kinds of meat due to the dramatic growth in prices on feed will result in decreased growth rates of production and further market redistribution, according to the director of analytical department of UCAP (AgriSurvey) Taras Gagalyuk. According to the annual survey Agrarian Business in Ukraine 2011 by the Ukrainian Club of Agrarian Policy (UCAP), the meat production in 2011 will grow by 3-4%, while the last year saw a 7% growth. Only the share of pork will remain unchanged in the overall structure of the market 32%, says Gagalyuk. (Source, Meatinfo.ru) Tver Region: 42 days quarantine in Kalinin District because of ASF Due to the detection of infected animals in the village of Danilovskoe quarantine restrictions have been imposed. It is prohibited to bring in or take out agricultural animals, to gather and bring out products and raw material of animal origin and plant products from the epidemic area. (Source, PigUA.info) ITALY Prosus a unique company The meat processor from Vescovato (Cremona) is fully owned by 105 pig farmers and employs 210 people. In 2010, they slaughtered 728,000 heavy pigs, a new record. The company exports 5,000 dry-cured hams every week to the USA (Source, Eurocarni). 5

6 BRAZIL Brazil Foods seeks partner in China Recently three Brazilian plants were allowed to export pork to the Chinese market. One of the plants is Brazil Foods in Rio Grande do Sul. Brazil Foods informs that they negotiate with the Chinese company Dah Chong Hong on a future co-operation to market the Sadia brand in China. (Source, Markedsnyt for Svinekød) Brazilian pork to Japan At the end of May the Brazilian head of the vet administration paid a visit to Indonesia, Malaysia and Japan aiming at the opening of these markets for Brazilian meat products. According to information from Brazil the administration in Japan just finished its risk analyses and plans a vet visit in Brazil by the end of (Source, Markedsnyt for Svinekød) USA Smithfield drops bid on Campofrio International news media report that Smithfield has withdrawn its bid to buy more shares in Campofrio for a sum of 500 million. Originally Smithfield made an offer to increase its shareholding in Campofrio from 37% to 88% by acquiring shares at a price of 9.50 per share followed by delisting it from the exchange. In a statement Smithfield now says that the new decision is caused by the bad economic climate in Spain in combination with the recent decline of the Smithfield share price, which made it difficult to fund the acquisition. (Source, Markedsnyt for Svinekød) More money for promotion Just one month since the launch of the industry s new Pork. Be Inspired consumer promotion, the National Pork Board announced it is adding US$ 5 m. to extend the reach and impact of the campaign (Source, National Pork Board). 6

7 Carbon footprint for pork production A new carbon footprint tool calculating data based on farm location, feed use, size of barns, manure storage facility, number of animals, barn ventilation and many other variables was launched at the World Pork Expo. Information and recommendations that the calculator generates are private and only for the producer s use. CHINA Record pork prices China's pork prices recently hit a record 18.8 Yuan ( 1.90) per kilogram due to supply shortage and rising feed costs. Average pork prices have hit Yuan /kg ( 2.80 /kg) a 79% increase from The price surge, which began in June 2010, is expected to continue, according to analysts, as corn prices continue to rise and a pig shortage persists. "Although we can gain about 600 Yuan from a live pig, no one wants to take the risk of raising more pigs since the market is unstable," said Wang Shoujing, a pig farmer from Tancheng County in the city of Linyi in Shangdong. Zhongpin keeps expanding China meat and food processing company Zhongpin Inc. is expanding in northern China with a new pig meat production facility, according to the company. The US$ 49 m. plant, which will be built in Tangshan city, Hebei province, will have an annual capacity of 60,000 t. of chilled pig meat, 20,000 t. of frozen pig meat and 22,000 t. of prepared pig meat products. Tianli Agritech to supply supermarkets The Wuhan (Hubei) -based pig breeder and producer has entered in an agreement with An Puolo to supply pork franchises in 32 supermarkets that include Walmart outlets (Source, Asian Pork). 7

8 THAILAND Betagro opens its third abattoir The company which supplies Thai supermarkets and its own retail shops with the upmarket Hymeat brand has opened its third abattoir in the Southern province of Pattalung. The two other plants are in located in the North and Norteast. The company also processes chickens (Source, Asian Pork). Abattoir structure The country counts around 4,700 unlicensed pig abattoirs and 1,060 licensed abattoirs, 516 of which are specialist pig plants and 203 dual purpose cattle and pigs plants. The Department of Livestock Development aims to license all plants by 2012, a very ambitious target (Source, Asian Pork). KOREA Canadians and US breeders faster off the mark Clayton Agri-marketing will supply 225 GGP from the USA to repopulate the Korea pig sector devastated by the foot and mouth epidemic (Source, Asian Pork). VIETNAM Ho Chi Minh City to build new abattoir The municipal plant designed to slaughter pigs, cattle and poultry will open by Meanwhile, Sagrifood also in Ho Chi Min City has invested US$ 15 m. in a plant to slaughter 2,500 pigs per day. Vietnam counts 17,000 abattoirs and health control is limited causing diseases to spread widely in the country (Source, Asian Pork). 8

9 MALAYSIA Abattoir developments The country counts 52 registered pig abattoirs but no cold chain. However, Tip Top meat, the top processor is raising the bar. It is now able to slaughter 3,500 pigs per day within its five year old French plant (Source, Asian Pork). FINLAND Atria-Oy profits down on weak domestic pork market Finnish meat processor Atria Oyj on Monday cut its full-year forecast for earnings to 21.6 m. citing high raw material prices in meat production and a weak pork market in Finland. The company has not been able to offset an increase of 7% of producers prices (Source, Wall Street Journal). AUSTRALIA Live export scandal A gruesome television programme showing animal welfare abuses in Indonesia with cattle imported live from Australia has rocked the whole Australian meat sector with scores of petitions and demonstrations due this week end that have led the government to ban all live exports. This hot issue was always carrying great risks for the Australian beef and sheep sector. The pork sector is yet unaffected but nonetheless very anxious. 9