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Export Bulletin Export Bulletin January 2012 – Week 04 Exports to end of November show a healthy rise of 12.2% to 133,446 tonnes. Exports to Germany at 29,098 tonnes are stable but exports to Hong Kong and China confirm their rapid rise with 28,998 tonnes. Other strongly performing markets include France (6,379 t.), Belgium (5,422 t.), Korea (1,911 t.), the Philippines (942 t.) and Japan (554 t.). DENMARK Market The European markets for fresh meat have normalised after the seasonal decline after the turn of the year. Fresh legs are still under pressure and are sold at slightly decreasing prices. There is a fine demand for front parts and shoulders as well as for bellies. Loins are in low demand. The poor market for loins is affecting the back market in the UK, which is characterised by oversupply. The situation on markets outside the EU remains unchanged meaning slow sales to Russia and a stable export to the markets in the Far East. (Sources, Danish Crown, Tican, Danish Agriculture and Food Council) Tesco requirements result in changed requirements at Danish Crown The approximately 1,250 employees at the Danish Crown slaughterhouse at Gedved north of Horsens are not allowed to have any nuts in their lunch packages. Also all products containing nuts have been removed from the canteen. The reason is that the British supermarket chain Tesco that annually buys meat for billions of Danish Kroner from Danish Crown wants to avoid that traces of nuts end up in meat resulting in allergic reactions with customers. The employees have accepted the ban on nuts. (Source, Horsens Folkeblad) January 2012 – Week 04 Export Bulletin Scientists expect lower mortality among piglets in new report Danish piglets seem to have better chances of surviving in the farrow stables in the future. This is the conclusion from a working group that just finalized its report to the Danish Food Minister. In 2004 22% of the piglets died in the breeding stocks before weaning. After a change of the Danish breeding goals just 16% of the piglets die in the breeding stocks before weaning. However, the decrease in mortality has yet not worked through in the production herds, but the working group expects that it is going to happen as the sows will be replaced with sows that have piglets with lower mortality. The working group recommends that in 2015 the sector accounts for the development in the production herds. (Source, Landbrugsavisen) Danish Slaughterhouses - payments week commencing 23 January 2012 Slaughterhouse Danish Crown Tican Slaughter pigs (70.0 – 86.9 kg) Euro 1.320 Euro 1.320 Difference to last week Unchanged Unchanged Sows (Above 129.9 kg) Euro 0,946 Euro 0.946 Difference to last week Unchanged Unchanged Boars (Above 109.9 kg) Euro 0.813 Euro 0.813 Difference to last week Unchanged Unchanged FRANCE Sauerkraut January is inevitably the sauerkraut month, this very traditional Alsacien dish accompanied with local white wine (Riesling, Edelzwicker) is one of the most popular winter dish served in France. All retailers prepare special offers in January for all necessary ingredients. As far as meat is concerned pork is the only meat included in the recipe: shoulder cuts (smoked or cured), belly (smoked or cured). An authentic Alsacien sauerkraut needs to include slices of the large Morteau sausage (medium coarse smoked sausage) and a few Montbéliard sausages (medium coarse smoked pork sausage). Now Strasbourg sausages (very fine coarse red pork sausage) are indispensable but the addition of Frankfurters is debatable… The sauerkraut itself is cooked with white wine or possibly Champagne together with some lardons. 2 January 2012 – Week 04 Export Bulletin Retail prices in €/kg of meat included in sauerkraut are as follows: Morteau sausage Strasbourg sausage Shoulder Belly Intermarché 10.80 5.90 4.90 5.00 Leclerc 9.90 6.25 4.95 5.55 Pork The upstream of the market considers that a new increase is completely possible on Thursday in Plérin, due to a moderate offer for a good demand, in particular on the European side. At the same time, the buyers are very prudent with their purchases due to a lack of real dynamism of the meat market. Cuts The market remains not very good. Everyone is waiting for the restocking of the retailers in anticipation of the beginning of the month. The market is waiting to know if exports will be good enough to allow the sector to come to the aid of the internal market. It is a subject which divides: some do not expect good exports before February, whereas others think that the market is already better. Pork prices RUNGIS week commencing 23 January 2012 Cut name Price range (Euro/Kg) Back fat, rind-on 0,75 Trimmings 1,35 Leg 2,04 Loin including chump 2,90 Loin excluding chump 2,33 Belly extra without trimmings 2,50 GERMANY Market Quantities sold are mostly satisfying although increased prices for live animals could not be maintained at sales of cuts and the loss of margin negatively affects the atmosphere on the 3 January 2012 – Week 04 Export Bulletin markets. Half carcasses were purchased at 9 Eurocents more than last week. Information about supply varies. While some report of ample supply, others report of a tight supply situation. In terms of cuts shoulders and legs were demanded well and could be sold at slightly increased prices. Collars, chops and meat for processing were ordered in good quantities for freezing. Half sow carcasses of German origin were purchased at 1 Eurocent/kg more than last week; prices for imported products remained unchanged. (Source, AMI) Tönnies plans China expansion Tönnies aims to significantly grow its business in China. Therefore, a new joint venture will be set up, MD Clemens Tönnies announced. The company aims to support the countrywide installation of large deboning plants that will eventually also be supplied with German pig meat. Packaging and transport logistics for the new venture are currently being built at the Tönnies headquarters in Rheda Wiedenbrueck. Target is for Tönnies to benefit financially from the re-structuring of the meat supply chain in China, where currently small traders are selling meat throughout the country - with nearly no refrigeration in place. Means of transport often is a small motorbike. “These hygienic circumstances leave us speechless, really,” Clemens Tönnies said. He also stressed that the company still aims to take over Schöppingen based Tummel GmbH. Last year, the German cartel authorities had stopped the takeover due to competition concerns. According to Tönnies the company has appealed to the Higher Regional Court against this decision. (Source,ISN) „We produce meat” failed The platform for public relation and communication that was only founded in June 2010 could not be secured financially and will cease operating. The internet presence www.fleischexperten.de however that contains ample information on meat will largely be maintained. (Source, Topagrar) Premium for boars From 1st of July 2012 Tönnies will pay for entire pigs for fattening according to the market value. Until now, a flat reduction of 3 Eurocent from the basic price was in place. From October 2012 Tönnies will also pay a premium of € 1 per entire male piglets to those farmers using genetics from boars that produce progeny with less strong odor. The applicable genetics are marked accordingly at the AI centres. The premium will only be paid if a minimum of 80% of fattening pigs per plant descent from these boars. Furthermore, the consistent use of these genetics has to 4 January 2012 – Week 04 Export Bulletin be documented. Tönnies will randomly check the pedigree for the according genetic marker using SNP technology for which a meat sample will be taken and tested. (Source, Topagrar) Exports According to the newspaper Süddeutsche Zeitung, Germany has grown to be one of Europe's largest meat exporters. Since 2005, exports of meat and meat products have increased by nearly 60% (2005: 2,3 Mio. t; 2010: 3,7 Mio. t). Due to this increase, Germany has moved from being a net-importer to being a net-exporter of meat. While 10 years ago the level of self-sufficiency for meat was at 94% it was at 113% in 2010. (Source, Lebensmittel Praxis) Antibiotics in fattening pigs Careless disposal of residues of dairy production has led to the closure of 26 pig fattening sites in Southern Germany, one of which was reopened shortly afterwards. The antibiotic Chloramphenicol got into pig feed due to a diary farm's employee having incorrectly disposed of laboratory waste. It is expected that some of the farms will be reopened next week. (Source, Various) Nürnberger Bratwurst must use Franconian pork According to a new German law, the famed pork and marjoram grilling sausage, probably the most famous produced in Germany (some 1.5 billion of them are produced annually) must now use local pork from Franconia the distinctive region of Northern Bavaria. Franconia produces 1.7 million pigs per year. (Source, AFZ) Pork Prices Hamburg Market Week commencing 23 January 2012 Cut Name Price Range (€ / kg) Round cut leg 2.05/2.25 Leg (boneless, rindless max fat level 3mm) 2.90/3.10 Boneless Shoulder 2.25/2.45 Picnic Shoulder 1.95/2.10 Collar 2.20/2.45 Belly (bone in, ex-breast) 2.20/2.35 Sheet Boned Belly (rindless) 1.90/2.20 Jowl 1.30/1.45 Half Pig Carcasses U class. 1.97/2.07 5 January 2012 – Week 04 Export Bulletin NETHERLANDS Academic scandal Last August, Diederik Stapel from Tilburg University and Roosje Vonk from Radboud University Nijmegen issued a press release regarding an investigation on the psychological meaning of meat suggesting that meat eaters were “more selfish”.
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