ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

BPEX Export Bulletin - August 2011: Week 33

by 5m Editor
16 August 2011, at 12:00am

The British Pig Executive's (BPEX) Export Bulletin for August 2011 reports pig industry trends from around the world.

Denmark

Market

The European markets are quiet and there is a reasonable balance between supply and demand. Front parts, shoulders and loins are sold at unchanged prices, whereas prices of collars are declining here at the end of the barbecuing season and due to the weather being far from summery in large parts of Europe. The market situation for trimmings and fatty products is positive. There is a fine demand for bacon on the British bacon market, and prices are fine as well. Third country markets remain unchanged with continuing fine exports to China, also as regards quantities.
(Sources, Danish Crown, Tican, Danish Agriculture & Food Council)

Danish slaughterhouses - payments week commencing 15 August 2011
Slaughterhouse Danish Crown Tican
Slaughter pigs (70.0-86.9kg)
Difference to last week
Euro 1.280
Unchanged
Euro 1.280
Unchanged
Sows (above 129.9 kg)
Difference to last week
Euro 0,962
-0.067
Euro 0,962
-0.067
Boars (above 109.9 kg)
Difference to last week
Euro 0.762
-0.067
Euro 0.762
-0.067

France

Piglets

Calm is still the word day after day. Supply remains higher than demand in this period of the year and prices are going down slowly. The market is expected to stabilise during the next few days or weeks.

Cuts

Sales are good and regular but still only in the tourist areas. In the cities, the market is very calm. The holidays are finishing and consumers will soon quickly return in the supermarkets to fill the empty refrigerators. The special offers will start in September, which will positively affect the markets.

Pork prices Rungis, week commencing 15 August 2011
Cut name Price range (Euro/kg)
Back fat, rind-on 0.55
Trimmings 1.25
Leg 2.37
Loin including chump 2.95
Loin excluding chump 2.52
Belly extra without trimmings 2.39

Germany

Market

Sales of collars and hams remain sluggish as particularly collars from the private storage scheme as well as imported products are coming onto the already sufficiently supplied markets. The poor weather conditions are additionally impacting on the situation. Shoulders, loins and filets, however, are sold at mainly stable prices and bellies as well as fatty products are sold smoothly.
(Source, AMI)

Moderate increase

According to the Federal Statistics Office (Destatis), approximately four million tonnes of meat have been produced in Germany during the first half of this year. This represents an increase by 42,700t or 1.1 per cent from 2010 figures. Due to an increased domestic production, pig slaughterings have increased by 0.6 per cent to a total of 28.8 million. While the slaughtering of German pigs has increased by 2.3 per cent, the slaughtering of imported pigs has decreased by 16.4 per cent. The volume of pig meat produced increased by 1.1 per cent to 2.7 per cent. Included in these figures is a higher slaughter weight partly due to amended cutting techniques for pig carcasses, which represent an about 300-g higher slaughter weight per animal.
(Source, Lebensmittel Praxis)

Gausepohl closes Chemnitz plant

The Gausepohl abattoir in Chemnitz in Eastern Germany will cease operating in relation to the company restructuring its production. Gausepohl aims to concentrate its production capacities in order to secure its position in a highly competitive industry. Due to a non-competitive municipal cost structure in Saxony – such as above average costs for veterinary services as well as for disposal or energy – the beef and pig abattoir will discontinue operation. The site's 60 full-time staff will be offered the transfer to an employment agency. Currently, Gausepohl Fleisch employs more than 750 staff, runs seven production sites and generates an annually turnover of € 500 million.
(Source, fleischwirtschaft)

Moscow warning

Moscow has warned once again of a ban on imports of products of animal origin from individual companies as well as from the regions of North Rhine-Westphalia, Lower Saxony and Bavaria, should any further breaches of the Russian quality requirements for imports be detected. According to the Russian authorities, the testing of several imported German products has revealed contents of antibiotics, salmonella as well as E.coli bacteria. The German ministry of agriculture has been asked to initiate an investigation and to report back to the Russian authorities as soon as possible. Apparently, two-thirds of the German production sites inspected in June 2010 and April 2011 failed to comply with the Russian requirements.
(Source, afz)

Tönnies law suit settled

More than four years after the investigation began, the law suit against Tönnies has been concluded earlier than expected. All proceedings against company owner, Clemens Tönnies, and nine members of the senior management have been settled against the payment of a monetary sum. Tönnies lawyer, Sven Thomas, stressed that this settlement was in no way accompanied by any evidence of guilt or even an admission of guilt by the persons involved. He said had been repeatedly made clear during the course of the legal proceedings that Mr Tönnies and the employees involved were innocent of the charges brought against them.
(Sources, afz, LZ)

Continuous investigation

The German cartel office is continuing its investigation into alleged illegal price agreements within the German meat industry. According to Andreas Mundt, head of the cartel office, no decision can be expected within the near future as the cartel office will further proceed with its investigations that started in summer 2009 following an anonymous tip-off. Suspicion of price-fixing among producers of meat and cooked meat products persists. The decision regarding the Tönnies/Tummel merger, however, is expected before the end of the month. Both parties had been given the opportunity to comment on any competitive concerns by then end of July.
(Source, fleischwirtschaft)

All Moksel shares now owned by Vion

Following the squeeze-out-resolution, the remaining five per cent of Moksel shares are now owned by the Vion group. The minority shareholders' interests will be transferred to Vion N.V as the principal shareholder in return for monetary compensation of €7.34 per individual share.
(Sources, Various)

Pork Prices Hamburg Market Week commencing 15 August 2011
Cut Name Price range (€/kg)
Round cut leg 2.20/2.40
Leg (boneless, rindless max fat level 3mm) 3.00/3.20
Boneless Shoulder 2.45/2.60
Picnic Shoulder 1.95/2.20
Collar 2.35/2.50
Belly (bone in, ex-breast) 2.30/2.50
Sheet Boned Belly (rindless) 2.20/2.40
Jowl 1.40/1.50
Half Pig Carcasses U class. 1.95/2.05

The Netherlands

Sow producers expected to decrease stock numbers

Following the catastrophic economic conditions for pig breeders, it is expected that sow stocks in the Netherlands will decrease significantly over the coming months. According to Dutch AI centres, the number of inseminations has decreased by seven per cent, which is considered a first indication of a downward trend. High feed costs and low margins for piglet producers are continuously stressing the sector. According to calculations by the University of Wageningen published in the agricultural magazine Boerderij, about €20 more per piglet would be necessary for producers to become profitable again.
(Source, topagrar)

Cargill takes over Provimi

US concern Cargill has announced the takeover of Dutch feed producer Provimi. According to the German food sector magazine, Lebensmittel Zeitung, the previous Provimi owner, Pemira, which has re-structured the company since 2007 will receive a sum of approximately €1.5 billion. Provimi employs some 7,000 staff and has an annually turnover of €1.1 billion (2010). During the last financial year, Cargill invested approximately €2.1 billion in take-overs and business expansions. Globally, the concern employs some 130,000 staff.
(Source, topagrar, LZ)

Spain

Pork prices in Barcelona Market, week commencing 15 August 2011
Cut Name Price range (€/kg)
Carcasses (secondary grade) 1,671/1,677
Gerona Loin Chops 2,46/2,49
Loin Eye Muscle 3,53/3,56
Spare Ribs 2,76/2,79
Fillets 5,83/5,86
Round Cut Legs 2,79/2,82
Cooked Ham 2,11/2,14
Rindless Picnic Shoulder 1,60/1,63
Belly 1,85/1,88
Smoked Belly with Spare Rib Section Cut off 2,28/2,31
Shoulder chap or Head Jowls 1,07/1,10
Back Fat, rindless 0,98/1,01

Russia

Russian-German animal production project to be launched

Agroimport Group together with German Tönnies Fleisch is starting a project to build 10 pig units in Voronezh Region with a total capacity of 62,500 tons of commercial pork a year. The value of the investment is US$261 million. Negotiations with the German company started in 2009 and as a result, it was decided to go forward with the project with the distributor whose experience is believed to be most useful in the search for new marketing channels. The Governor of Voronezh Region, Alexey Gordeev, and the President of Agroimport Company Group, Sergey Dinkevich, signed an agreement to build the 10 pig units at the territory of Ostrogozhsk District. The company has already bought 3,000 hectares of land in the district.
"This is enough to start the actual execution of the project and commence in October with the construction of the first unit with a capacity of 2500 breeding sows," Mr Dinkevich said.
The investors are also planning the construction of a feed mill with a capacity exceeding 220,000 tons a year and grain storage with a holding capacity of 156,000 tons. In the long term, the project will involve the construction of the largest complex in the Central Black Earth Region complex for the advance processing of pork. The scheduled period for the execution of the project is five years from the signing of the investment agreement.
(Source, Meatinfo.ru)

Unique breeding centre

A new breeding centre specialising in breeding and improving pedigree stock of pigs, has been opened in Luchki village in Prokhorovsky District.
“This kind of enterprise being opened is an event of great significance not only for the region, but for the whole country,” commented the Governor Evgeniy Savchenko. "The centre is meant to solve the issues of food and genetic safety. We have solved the issue of food safety. But we still have issues with genetic safety and genetic dependence. I’d like to ask Agro-Belogorye Company to pioneer this project of breeding our own pigs in Russia."
Pedigree animals were brought to the centre from Canada and France, and now the specialists will develop special meat breeds to supply a population to commercial pig producing farms. The pedigree pig breeding enterprise under construction is unique in its technical equipment in Russia. The first offspring were produced in August. The centre employs 46 staff. Construction started in 2010, at an estimated total cost of US$16.6 million.
(Source, Piginfo.ru)

Agroprime Holding puts the largest fattening unit in Odessa Region into operation

On 11 August 2011, Agroprime Holding LLC commissioned the fattening farm with a capacity of 24,000 pigs a year. The unit includes six sections for raising and fattening pigs. The maternal herd is supplied by the breeding farm owned by Agroprime Holding LLC. The core of the maternal herd is formed with first generation crossbred sows and purebred boars of Large White and Landrace of French and English origin. Commercial sows and boars deriving from this maternal core gain 100kg of live weight in 170 days with the feed conversion of 3.2 to 3.4. The feed mix for fattening pigs contains 96 per cent of grain, legumes and silage crops, raised by Agroprime Holding LLC. Other components do not exceed four per cent of the total mix composition. This ensures the production of ecologically clean meat complying with international food safety standards. Once the planned capacity is achieved, the unit will be capable of producing about 3,000 tons of top-quality meat a year.
(Source, Press-Service of Agroprime Holding LLC)

August 2011