UK gains access to China fresh pig meat market

The UK pig industry has gained direct access to the Chinese fresh pig meat market after several years of negotiations, opening the way for a potential £50-million-a-year deal over the next few years, according to British Pig Executive International Manager Peter Hardwick.
Much of the exported pork will be offal, trotters, ears and other parts of the “fifth quarter” which British diners do not eat, but the Chinese do. However, Hardwick said he believes a growing demand for higher quality cuts in China will lead to more exports of this nature, as well. “This is a great shot in the arm for producers and processors here,” said Hardwick, who has been involved in the talks over the past six or seven years and has made several visits to China to meet industry leaders and health officials there.
The first consignment of British pig meat is already waiting to be dispatched by Tulip, the UK’s biggest producer. “China is the most lucrative grocery market in the world, and from fashion to food its rapidly expanding middle class has an appetite for Western goods," said UK agriculture minister Jim Paice. “In particular, they are eating more meat, and our top-quality producers have got huge opportunities to meet that demand and help our economic recovery.”
According to Hardwick, at least five British pig meat plants, or “establishments,” have been approved to export directly to business in China, and he said he expects trade to start within weeks. A representative of the British Pig Association is already in China to do business with the Chinese importers. The UK currently exports 27,000 metric tons of pig meat to Hong Kong every year, and while much of this meat is thought to end up in China, demand grew by 54 percent in 2011.
“This is a wonderful achievement and something we have been working towards for several years in close cooperation with Defra and the British embassy in Beijing," said British Pig Executive Chairman Stewart Houston. "The process has been a long one, but I know it will prove to be extremely worthwhile."

Brazil pig meat exports continue strong in January

January saw Brazil’s exports of pig meat increase in volume by 8.47 percent and in value by 4.08 percent, compared with January 2011. The country shipped 37,756 tons of pig meat with a value of US$96.82 million. The average price of exports fell by 4.05% over the month, according to Abipecs, the Brazilian pig meat producers’ and exporters’ association. The first month of 2012 saw 37 percent of shipments go to Hong Kong, while Russia slipped back to sixth place in terms of importance, behind Hong Kong, Ukraine, Argentina, Angola and Singapore. January’s figures were also boosted by exports to China, which started in late 2011. Sales to Ukraine reached 5,140 tons during January, an increase of 473.43 percent by volume and 419.25 percent in value. To Hong Kong, shipments rose by 99.5 percent in volume and 122.48 percent in value, with Brazil exporting 13,900 tons of pig meat worth US$33.8 million. Despite achieving successes in many markets, the Russian market continued to be disappointing, with volumes down by 85.46 percent and the value of exports falling by 85.92 percent.

National Pork Producers Council supports US–EU free trade agreement

A coalition of food and agricultural organizations led by the National Pork Producers Council expressed its support for a free trade agreement between the U.S. and the European Union in a letter sent to the Office of the U.S. Trade Representative.
“Carried out properly, such an agreement would indeed generate economic growth and create many thousands of new jobs on both sides of the Atlantic," said the coalition. “Of course, this would require that the EU be prepared to negotiate and implement the type of high-standard, 21st-century agreement that is central to the [U.S. President Barack Obama] administration’s trade policy efforts."
The coalition also said that EU regulatory measures often conflict with the interests of the U.S. and with World Trade Organization rules, including regulations on “genetically modified” crop approval and labels, which restrict U.S. corn, soy and refined corn product exports and restrictions on production methods in poultry — antimicrobial use — and pork — ractopamine.
Nearly 50 organizations signed the letter to the Trade Representative's office

US pig meat exports highest ever in November 2011

U.S. pig meat exports in November 2011 were more than 505 million pounds, almost 25 percent greater than in 2010 and a new monthly volume record, according to the U.S. Department of Agriculture's latest report.
Shipments to China made the difference between a “strong” month and a spectacular one, said the USDA, coming in at almost 118 million pounds. This is the most U.S. pork ever shipped to China, and was almost four times greater than U.S. exports to China in November 2010. Twice in the last few years — 2008 and 2011 — China has imported U.S. pork in quantities sufficient to sharply accelerate U.S pork export volumes, and to move U.S. domestic pork prices higher, for sustained periods. The two Chinese “buys” have each been in response high domestic pork prices, brought about in each instance by disease outbreaks that reduced domestic pork production flows. Domestic pork production shortfalls and interruptions elevated consumer pork prices to a point where China dramatically increased imports of the animal protein most favored by Chinese consumers. Total U.S. pork exports in 2012 are forecast at 5.1 billion pounds, about the same as in 2011, according to the USDA. Pork imports in November 2011, at 75 million pounds, were slightly ahead of 2010 numbers — 1.7 percent compared with November 2010 — with most of the increase coming from Canada. Imports of live swine from Canada in November ran about 9 percent ahead of 2010. Import of early-weaned pigs accounted for most of the increase. Seasonally strong U.S. prices of early-weaned pigs likely drew more animals out of Canada.

Philippines may begin pig meat exports to Malaysia in 2012

The Philippines may begin exporting pig meat to Malaysia in early 2012, pending the approval of a triple A slaughterhouse facility by Malaysian regulators, according to agriculture officials.
The owners of the slaughterhouse filed for accreditation in October, and a team from Malaysia's Department of Veterinary Services must visit the facility before it can give the approval to begin shipments. “Our target is to start shipping 100 tons of pork per month there,” said Jane C. Bacayo, executive director of the Philippines' National Meat Inspection Service. "[Malaysia's] requirement is 1,000 heads per day." According to Bacayo, Malaysia wants to buy pork from the Philippines so they will have an available supply for tourists.
In December 2009, the Philippines voluntarily suspended a shipment of pork to Singapore after detecting the Ebola Reston virus in a farm in Luzon. In May, the country received certification from the World Organization for Animal Health that it was completely free of foot-and-mouth disease without the need for vaccination.
The Philippines also has plans for expansion, and has earmarked P180 million (US$4.16 million) for the construction of five triple A slaughterhouses in 2012.

CarmOlimp expects pig meat exports to rise in 2012

Romanian cold meats producer CarmOlimp expects EU pig meat exports to account for 9% of its 2012 turnover, contributing to a 20% increase in its overall turnover, after the European Commission lifted the ban on the country's exports to the EU market beginning January 1, 2012.
The ban of meat and processed pork products from Romania to the EU was put in place in 2003 due to the swine flu, and the European Commission extended the block in 2007. The company is predicting an overall turnover of €29 million in 2012.

Hong Kong to become Brazil’s main pig meat export destination

By the end of 2011, Hong Kong will become the main market for Brazil's pig meat exports, according to Brazil’s pig meat producers’ and exporters’ association, ABIPECS.
Brazil has been keen to reduce its dependency on trade with Russia and, as well as boosting trade with Hong Kong, it has also succeeded in exporting more to the Ukraine, Angola, Singapore, Uruguay, Albania, Venezuela and Haiti. In 2012, exports to Hong Kong and China should overtake those to Russia, which is still Brazil’s main export market. Exports to Russia in October fell by 83.77% in comparison with October 2010. The first shipments to China are due to occur in November.
Between January and October 2011, Brazil exported 120,730 tons of pig meat to Russia, traditionally its main export market, while exports to Hong Kong reached 105,500 tons.

Brazil pig meat producers coping with Russian restrictions

Over the first nine months of this year, the volume of Brazil’s pig meat exports fell by 5.32% compared to 2010; however, the value of sales rose by 5.53% to US$1.06 billion.
Despite Russia’s restrictions on Brazil’s pig meat exports, the country remains the main overseas purchaser of Brazilian pig meat. The Ukraine, Hong Kong and Argentina, however, have continued to grow in importance as markets for Brazilian producers, helping to offset reduced Russian demand. “Despite Brazil exporting very little to Russia, overseas sales were not so bad in September, with 41,393 tons shipped with a value of US$113.74 million,” said Pedro de Camargo Neto, president of the pig producers and exporters association, ABIPECS.

South Korea pig meat imports to drop in 2012

South Korea's pig meat imports will drop by 16% in 2012 from their record high of an estimated 580,000 metric tons in 2011, according to reports.
The 2011 rise, caused by an outbreak of foot-and-mouth disease, is expected to ease off as the country re-establishes its herds. Roughly 3.3 million animals were culled in the aftermath of the outbreak. "The industry is steadily rebuilding," said USDA attachés in South Korea, noting that sow numbers are increasing by 20,000 a month. A rise of 15% in feed prices, year on year, caused by strong grain markets "has not discouraged farmers from rebuilding their herds, since swine and pork prices are at record levels."
Even with the drop, imports are still expected to remain above normal levels through 2012, at 490,000 metric tons. Pork imports for 2010 were 382,000 metric tons.

US pig meat exports to China surge over 2010 numbers

The cumulative volume of pig meat exported from the U.S. to China was 200 million pounds in first seven months of 2011, a five-fold increase from the same period of last year, reported China Business News, citing the U.S. Department of Agriculture. China has become the fifth-largest market for U.S. pork exports.
China's domestic pork output was 50.7 million tons in 2010, with 667 million pigs sold for slaughter. Domestic demand for pork is currently strong and expected to remain so, and the number of pigs sold to slaughter will increase, according to analysts. The selling price or pork, at 30.86 yuan (US$4.83) per kilogram on Sept. 9, may fall in the second half of 2011.

Denmark pig meat exports increase

Denmark's exports of pork and pigs between January and April 2011 reached 698,000 metric tons, worth 9.87 billion Danish kroner, reports the national council for agriculture and food. These figures represented increases of 6% in volume and 8% in value compared with export sales in the first four months of 2010.
The strongest growth was in exports to Korea, up by 256% to 4,098 metric tons after the setback to Korean pork production from foot-and-mouth disease. About 29% more than in 2010 was sold to Ireland, while sales to France and to China increased by 13%. The destination buying much less Danish pork this year was Australia, with purchases down by 32% in volume at 19,318 metric tons and 30% lower in value at 362 million Danish kroner.

EU pork entering Korea market as tariffs ease

EU pork imports are increasing in the Korean market as the country's retailers take advantage of the temporary reduction in pork tariffs implemented by the Korean government to alleviate a chronic shortage of pork bellies.
The recent implementation of the Korea-European Union free trade agreement has also provided incentive for the increased imports, according to reports. Korea's pork prices spiked after the country experienced a shortage due to an outbreak of hoof-and-mouth disease; cheaper imports have helped to offset those costs. The market share of pork bellies, which are very popular in Korea, have seen an 880% increase over last year, according to local retailers. Overall, said the Korea Meat Trade Association, 75,709 tons of pork belly was imported in the first half of 2011, a 32.5% rise from the same period in 2010.

Brazil’s pig meat exports continue higher in June

The volume of Brazil’s exports of pig meat in June grew by 12.35% in comparison to 2010. Exports by value rose by 29.65%, partly due to the average price achieved for pig meat during the month. This increase occurred despite the Russian embargo that came into force on June 15. The fact that the embargo was announced at the beginning of the month led to a rapid increase in trade during the first two weeks of the month prior to it coming into force.
While sales to Russia may have been curtailed, exports to Hong Kong and Argentina – Brazil’s second and third most important markets for pig meat – were higher during the month. Sales to Ukraine, however, fell.
While coming too late to affect June’s export figures, the Brazilian pig producers’ and exporters’ association, ABIPECS, notes that the reopening of the South African market at the month end was excellent news. 

South Africa reopens market to Brazil pig meat

South Africa has reopened its market to Brazilian pig meat. As a result of an outbreak of foot and mouth disease in the state of Mato Grosso do Sul in 2005, South Africa banned all Brazilian exports of beef and pig meat. Although the restrictions on beef were lifted in 2009, restrictions on pig meat remained in place.
Brazil’s pig producers have urged the government to conclude any bureaucratic measures as quickly as possible to allow producers to access the market and emerge from the crisis currently facing the sector.

US pig meat exports up for 2011

Pig meat exports for 2011 were revised upward to 4.872 billion pounds, up 15.3% over 2010, due mostly to a greater-than-expected demand in the first quarter of 2011 from Asian markets like South Korea and China, according to the U.S. Department of Agriculture.
April U.S. pork exports were over 421 million pounds, up about 19.5% from the same time in 2010. Second-quarter pork exports are forecast to be almost 1.27 billion pounds, up 17% from 2010. The revised number for all of 2011 is expected to account for 21.5% of U.S. commercial pork production. Year to date, the five largest destinations of U.S. pork exports are Japan, Mexico, South Korea, Canada and China.
Tighter than anticipated corn supplies are expected to translate to higher feed costs for producers for the rest of 2011 and into 2012, decreasing the expected dressed weights of hogs. Lighter weights are expected to marginally lower commercial production to 22.6 billion pounds in 2011 and 22.9 billion pounds in 2012.

US pig meat producers urge free trade agreement approval

The National Pork Producers Council is urging the U.S. Congress to implement legislation approving free trade agreements with Colombia, Panama and South Korea.
Deals with Colombia, Panama and South Korea would add more than $11 to the price U.S. pig meat producers receive for each hog and would generate more than 10,000 jobs, according to Iowa State University economist Dermot Hayes. Failing to implement the agreements, said Hayes, could lead to the U.S. pig meat industry losing its foothold in all three markets within 10 years.
“For us to remain a successful and viable industry, we need new and expanded market access," said Doug Wolf, NPPC president. “The way to get that is through free trade agreements.”

Ukraine pork exports rise in 2011

Pork exports in Ukraine were up for the first quarter of 2011.

Ukrainian pork exports have shown a sharp rise in 2011, with the first quarter reaching 4.3 thousand metric tons exported, mostly to Russia.
Exports increased largely because the domestic market couldn't absorb an increase in production in 2010, according to A. Yaroslavsky, deputy director general of the Ukrainian Agrarian Confederation. "Purchase prices for hogs fell and companies engaged in growing pigs in 2010 were losses," said Yaroslavsky. "The level of profitability of their activities amounted to -7.4%. In this situation, the only salvation for the industry was increasing exports."
In January through March 2011, pork imports decreased by 50% compared to the same period last year. At the same time, there was a 12% increase in the import of by-products, indicating an increase in demand from refineries for low-grade, relatively cheap raw materials.
Ukrainian pork exports have shown a sharp rise in 2011, with the first quarter reaching 4.3 thousand metric tons exported, mostly to Russia.
Exports increased largely because the domestic market couldn't absorb an increase in production in 2010, according to A. Yaroslavsky, deputy director general of the Ukrainian Agrarian Confederation. "Purchase prices for hogs fell and companies engaged in growing pigs in 2010 were losses," said Yaroslavsky. "The level of profitability of their activities amounted to -7.4%. In this situation, the only salvation for the industry was increasing exports."
In January through March 2011, pork imports decreased by 50% compared to the same period last year. At the same time, there was a 12% increase in the import of by-products, indicating an increase in demand from refineries for low-grade, relatively cheap raw materials.
Ukrainian pork exports have shown a sharp rise in 2011, with the first quarter reaching 4.3 thousand metric tons exported, mostly to Russia.
Exports increased largely because the domestic market couldn't absorb an increase in production in 2010, according to A. Yaroslavsky, deputy director general of the Ukrainian Agrarian Confederation. "Purchase prices for hogs fell and companies engaged in growing pigs in 2010 were losses," said Yaroslavsky. "The level of profitability of their activities amounted to -7.4%. In this situation, the only salvation for the industry was increasing exports."
In January through March 2011, pork imports decreased by 50% compared to the same period last year. At the same time, there was a 12% increase in the import of by-products, indicating an increase in demand from refineries for low-grade, relatively cheap raw materials.

Brazil pig meat exports fall

Brazil's pig meat exports for the first four months of 2011 fell 4.3% by volume, but sales were 7.16% higher by value. Between January and April, the country exported a little over 169,000 tons with a value of US$456.49 million.
During April, exports were 0.6% lower compared with April 2010, totaling just under 60,000 tons with a value of US$145.41 million, an increase of 9.99%. “The numbers for April are no surprise," said Pedro de Camargo Neto, executive president of the Brazilian Pork Industry and Exporter Association. "Volumes continue to be relatively stable when compared to last year. Fortunately, unit prices have continued to rise, compensating for exchange rate difficulties. Brazil is losing, however, the opportunity to grow sales.”

EU to benefit from growing global pig meat demand

Demand for pig meat globally is set to grow in the coming years and the European Union is well placed to take advantage if it, according to a new report written British Pig Executive market analyst James Park.
He points out opportunities exist for the EU to export to countries such as Russia and to the Far East. In addition, as far as the domestic market is concerned, he believes demand for pig meat has increased of late and could grow considerably further.
“There is obviously a great deal of potential for exports outside the EU and the UK can take advantage of that,” said Andrew Knowles, BPEX head of supply chain development. “We have a very good reputation on the international scene in terms of the quality of our product and Britain is still an important player in selling breeding stock across the globe.”

UK pork exports rise in Asia

Britain expects its exports of pigmeat to Hong Kong to grow from 17,000 tonnes last year to some 19,000 tonnes this year, making it the country’s second biggest market after Germany, which took 33,000 tonnes of British pigmeat in 2008.
“This is all very encouraging and makes us more determined to focus on the Far East,” says British Pig Executive (BPEX) international manager Peter Hardwick, who added the UK had also started exporting breeding pigs to the Ukraine, which he described as a “sizeable and active” market.