Delays in NZ lamb imports due to shipping challenges

THE trade of chilled lamb from New Zealand into the UK remains significantly below the levels seen before the pandemic struck, according to industry body Beef and Lamb New Zealand.

The upheaval to supply chains during the COVID crisis had a marked effect, with perishable chilled goods deemed far more of a gamble to transport compared to their frozen counterparts.

While the complications directly tied to the pandemic have eased, persistent issues with shipping routes continue to cast a shadow over the chilled lamb market. Notably, the turmoil in the Gulf of Aden is a reminder of the heightened risks that come with such sensitive shipments. Insurance costs for navigating the Red Sea have skyrocketed, multiplying by as much as 20 times the usual rates.

New Zealand sent around 5700t of chilled lamb to the UK in 2022 and 2023. This year until February, only 1845t had been sent which is well short of chill lamb volumes of 18,000t in 2020.

Before covid more than 40% of chilled product was sent to the UK from New Zealand, whilst in recent years it has been 14%-18%.

By John Sleigh | South West Farmer

Also:

NZ and EU trade agreement to take effect on May 1

NZ: Value of red meat exports drops to $10b in 2023

NZ: Rollercoaster ride for red meat prices

Livestock & Meat Commission for N.Ireland weekly bulletin

Deadweight Cattle Trade

The deadweight trade for prime cattle in NI came under some pressure last week due to an increased supply, with 8,332 prime cattle slaughtered in local plants.

This was the highest weekly prime cattle throughput in NI since November 2023. There was also a peak in prime cattle imports last week with 334 head moving from ROI, with October 2023 being the last time a similar weekly import level was recorded. Consequently, the average price paid in NI for steers, heifers and young bulls was back2.3p/kg, 1.2p/kg and 1.7p/kg respectively.

Meanwhile the cow trade strengthened in NI with average cow prices up 3.6p/kg to300.7p/kg. Last week 2,304 cows were processed locally with 128 cows imported from ROI last week. Early next week a similar trade is expected with preliminary base quotes from the major processors remaining steady for all types of cattle.Across the water in GB, pressure on the prime cattle tradelastweek stemmed from the Midlands and Wales region where the trade was back for all types of prime cattle. This saw the overall GB average for steers and heifers come back.

Steers reported a0.7p/kg decline to 487.5p/kg while heifers reported a 1.5p/kg decrease to an average of 484.11p/kg. The trade for young bulls increased overall last week up 3.7p/kg to 471.7p/kg with the cow trade in GB also reporting improvements last week.

Sheep Trade

The deadweight hogget trade reported a strong recovery this week with a further strengthening expected next week.

Preliminary base quotes for early next week for R3 grade hoggets are in the region of 780-790p/kg up to 22.5kg. Base quotes for spring lambs are not currently available with small numbers being slaughtered relative to hogget throughput levels.

Last week the average price paid for a deadweight hogget in NI was up 8.4p/kg to 735.4p/kg, while spring lambs were back 8.4p/kg on the previous week to 787.1p/kg. The GB deadweight hogget price reached a record high last week surging 21.2p/kg week on week to 850.7p/kg. In ROI the hogget market also continues to strengthen with the average price paid last week up by the equivalent of 6.3p/kg to 750.8p/kg.

Continues..

 

Irish Sheep Trade & Prices w/e April 13th 2024

Quotes: Base quotes for hoggets from the major processors have improved this week with base quotes of 900-930c/kg (+QA bonus) on offer. Small numbers of spring lambs have started to be processed in Irish processing plants with quotes of 960c/kg (+QA bonus) available.

The strong deadweight trade at the minute is being driven by the tighter supplies of suitable hoggets for processing and spring lambs have been slow to come forward also.

 

The tight supply situation has not been confined to Ireland, with hogget throughput in the UK so far this year operating five per cent behind 2023 levels with reports of significant numbers of ewe lambs previously set aside for breeding now being processed.

The latest supply forecast for the EU has indicated a two per cent decline in throughput during the first half of 2024 which equates to a 580,000 head reduction in the sheep kill. Tighter supplies are expected until the 2024 lamb crop starts to come forward for processing in significant numbers.

 

Demand for lamb on both the domestic and export markets has shown some signs of recovery as indicated by Kantar figures and Bord Bia’s own market insights. However, while consideration for lamb has recorded some improvement in recent months lamb continues to be the most exposed to shifts in consumer buying habits as the highest priced protein.

 

Prices: Rising demand for lamb in the run up to Easter and Ramadan combined with the tighter supply situation outlined above contributed to the significant strengthening in the Irish deadweight trade year to date.

Last weeks reported price increased to 877c/kg, an uplift of 7c/kg from the week previous. In the corresponding week in 2023 the reported price was 705c/kg. The deadweight trade has also remained firm in the UK regions with reported prices the equivalent of 993c/kg (+25c/kg) in mainland GB last week while the reported price in Northern Ireland was 870c/kg (+13c/kg) for w/e April 13th 2024.

Southern Hemisphere prices remain well below European prices which makes Southern Hemisphere product very competitive on EU markets, even with the extra costs of transport factored in.

Deadweight lamb prices in Australia and New Zealand were the equivalent of 398c/kg and 342c/kg respectively last week.

 

Throughput: The total sheep kill in DAFM approved plants for week ending April 13th 2024 was 45,971 head, back marginally from the corresponding week in 2023.

Throughput for the year to date has totalled 770,908 head, five per cent behind the corresponding period in 2023. The hogget kill for the year to date has totalled 693,854 head, operating three per cent behind 2023 levels.

Meanwhile the ewe/ram kill year to date is back by 5,717 head (-7 %) to 73,678 head. Small numbers of spring lambs have started to appear for processing with 3,323 processed so far this year.

Bord Bia

See also: Irish Cattle Trade & Prices w/e April 13th 2024

Irish Cattle Trade & Prices w/e April 13th 2024

Throughput: There were 34,425 cattle processed in DAFM approved plants during the week ending April 13th 2024, taking throughput for the year to date to 529,442  head.

This is a 14,293  head or 11% increase on the corresponding period in 2023 when a total of 515,149 cattle were processed. There have been 375,573 prime cattle processed in the first 15 weeks of 2024, a 3% increase from the same period last year (+10,960 head).

Cow throughput has remained strong with 130,494 cows processed so far this year, a notable increase of 16,527 head (+13%)

 

Prices: Prime cattle supplies have steadied, and this has been reflected in a steadying of the base quotes from the major processors, with base quotes remaining to be unchanged from last week.

Base quotes this week are in the region of €5.10-5.15/kg for steers while starting quotes for heifers are around €5.15-5.25/kg. The trade for the smaller numbers of young bulls on offer remains steady with €5.25-5.35/kg available for R grading animals under 24 months of age.

The cow trade has remained solid, particularly this week despite the strong throughput in recent weeks.

Well fleshed O grading cows are being quoted at €4.60 with €4.70-4.80c/kg available for good quality R grading cows. A significant proportion of the cow kill have achieved a conformation score of P in recent months and the prices available for these animals vary significantly based on grade, weight and quality.

For the week ending April 13th 2024, the average price paid by Irish beef processors for R3 steers decreased slightly by 1c/kg to €5.20/kg. This was 5c/kg behind the corresponding week in 2023 when the R3 steer price was €5.27/kg.

Note that reported prices exclude VAT but include all bonus payments such as in-spec bonus, breed-based producer groups etc.

EU and UK prices:

European young bull prices have held relatively stable in the early weeks of 2024. The average reported price for R3 grading young bulls was €5.04/kg (excluding VAT) for the week ending April 13th 2024.

This is the same as Week 14 last year. Tighter cattle supplies and firm demand have meant deadweight beef prices in the UK have remained strong.

This week the average R3 steer price remained steady to be €5.69/kg (equivalent to £4.88/kg).

Bord Bia

See also: Irish Sheep Trade & Prices w/e April 13th 2024

Pig Prices: SPP falls for third week in a row as slaughter numbers rise

SPP falls for third week in a row as slaughter numbers rise

The headline pig price continues to fall, as prices in Europe stagnate, while last week saw a notable increase in estimated slaughter numbers.

The EU-spec SPP fell for the third consecutive week during the week ended April 13, dropping back by a further 0.34p to stand at 210.67p/kg. The SPP has now lost nearly 1p over the past three weeks and 3p since the end of 2023, despite barley moving during February and March. It is now nearly 7p behind where it was a year ago, when pig prices were still rising.

The much more volatile APP, which includes premium pigs, gained 0.78p during the week ended April 6, more than cancelling out the previous week’s losses, to stand at 211.93p/kg. This put it nearly 1p ahead of the SPP for the week.

Having gained 16.5p in the February and March, the EU reference price dropped back by 0.7p during the week ended April 7 to stand at 187.3p/kg. This meant the gap to the equivalent UK reference price expanded slightly to 21.3p, albeit still much more manageable than the 37p gap at the start of February.

Estimated GB slaughterings for the week ended April 13, were 13,000 up on the previous four-day week at 158,699. This was 5,000 more than the same week a year ago, but still 19,000 below the 2022 figure, when extra kills were taking place to get through the backlog.

Carcase weights fell back by more than 0.5kg to 91.15kg in the SPP sample during the week ended April 14, still more than 1kg up on the same week in 2023.

 

Alistair Driver | National Pig Association

Danish Crown closes slaughterhouse in Denmark

COPENHAGEN, April 20 (Reuters) – Danish Crown will close one of its major slaughterhouses in Denmark and will lay off about 800 employees as part of a restructuring process, the meat producer and exporter said on Thursday.
The company said it expects to hire up to 450 new employees for three other slaughterhouses within the next six months, as production is moved.
The weekly number of pigs for slaughter in Denmark has fallen by more than 10% over the past year, and the current overcapacity is costing the company some 300 million Danish crowns ($44.12 million) annually, it said.
See also:

Danish Crown closes abattoir, lays off 800 employees

Danish Crown acquires Denmark factory from ‘bankrupt’ Skare meat packers

Danish Crown Says Chinese Pork Demand Subdued, Set To Cut 550 Jobs

Danish Crown closes German pork plant

China lifts ban on some German beef imports

BEIJING, April 16 (Reuters) – China has lifted mad cow disease-related bans on some German beef imports, Chinese customs authorities said, after German Chancellor Olaf Scholz pressed Chinese counterparts for better market access in a visit to Beijing.
The easing applies to de-boned beef from calves under 30 months imported from Germany, China’s General Administration of Customs said in a Wechat post.
The change takes effect from April 16, the date of the announcement.
China also agreed to open its borders to beef and apple imports from Germany and facilitate pork imports, Scholz said on Tuesday.
Scholz was speaking on the final day of his three-day trip to China, during which he met with President Xi Jinping and pressed Chinese counterparts for better market access, saying Germany did not want to “decouple” from China.

 

By Reuters

 

See also:

China bans German pork imports over African swine fever case

Slow down in China’s beef demand hits key suppliers

China’s beef imports are dwindling amid slowing consumption and ample domestic supply, dealing a blow to its biggest supplier, Brazil.

Official data shows the value of China beef imports fell last year for the first time since at least 2016, with prices plunging to the lowest level in almost three years. Import volumes are expected to fall 4pc this year, ending 12 straight years of meteoric rise, according to the US Department of Agriculture.

The predicament highlights the risks in relying heavily on a single customer: China was the destination for more than 52pc of the South American country’s beef sales last year even after halting imports for roughly two months over a case of mad cow disease. While the nation’s meatpackers have sought to diversify their exports, alternatives remain limited.

“Brazil depends a lot on China – if there’s a hiccup in China, it will affect Brazil very badly,” said XP Investimentos analyst Leonardo Alencar.

China’s share in the global meat trade has plunged from a 2020 peak following an increase in domestic meat supplies. The nation is expected to produce 7.7 million metric tons this year, up 1 million tons from 2020, according to the USDA. An economic slowdown has prompted consumers to seek cheaper proteins.

Clarice Couto and Gerson Freitas | Irish Independent

 

Also:

Brazil says China clears 38 more meat plants for export

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Brazil says China clears 38 more meat plants for export

SAO PAULO, March 12 (Reuters) – The Brazilian government has said 38 additional meat plants have been cleared to sell products to China in what it said was an historic move as both countries celebrate 50 years of diplomatic relations, according to a statement on Tuesday.

China is the main destination for Brazilian exports of beef, pork and chicken, the Brazilian government noted.

The Asian country imported 2.2 million metric tons of meat valued at more than $8.2 billion from Brazil last year, the statement said.

The 38 new licenses include eight export permits for chicken slaughterhouses, 24 for cattle slaughterhouses, one for a beef processing unit and five for chicken, pork and beef warehouses.

“This is an important moment for both sides,” the Brazilian government said, adding China will import products at competitive prices while Brazil develops its own industry, creating jobs and boosting the local economy. “It is a historic day in the Brazil-China trade relationship, a historic day for our agriculture,” Agriculture Minister Carlos Favaro was quoted as saying in a statement.

ABPA, a meat lobby representing pork and poultry processors including BRF BRFS3.SAand JBS JBSS3.SA, welcomed the decision.

The group said the last time China cleared a chicken plant to export into the Asian country was five years ago.

 

By Ana Mano and Roberto Samora | Reuters

 

Also:

Brazilian beef industry adopting to lower prices for Chinese demand

Brazilian Beef Exports At Record Levels

“Wronged” red meat gets global academic approval

A group of highly-respected, independent international academics have banded together to project positive news about eating red meat as a result of their mutual concerns about the impacts of inaccurate and partisan work in the same field of research.

The group, including Professor Dr. Peer Ederer, instigated the Dublin Declaration which states that livestock systems are “too precious to society to become the victim of simplification, reductionism or zealotry.” Prof. Dr. Ederer is also co-founder and director of GOALSciences, the Global Observatory of Accurate Livestock Sciences, which has the mission to research and communicate scientific evidence about the role of animals in the global food system.

“The vast majority of scientists are positive about red meat’s nutritional, ecological, environmental and ethical role in society,” Prof. Dr. Ederer told Hybu Cig Cymru – Meat Promotion Wales (HCC) ahead of Great British Beef Week (23 – 30 April), a week-long celebration of locally produced beef – including Welsh Beef – and its taste, quality and world-leading sustainability credentials.

Professor Dr Ederer, who was the keynote speaker at Hybu Cig Cymru- Meat Promotion Wales’ (HCC) annual conference last year, cited examples of where inaccurate research had been corrected or was to be corrected by scientists seeking to redress the balance – “examples of where science is able to heal itself,” he told HCC.

He said an article in the Lancet linking deaths to red meat had been proven to be wrong and the revision accepted by the authors and the publishers. Similarly, a recent piece published in the American Journal of Clinical Nutrition suggesting support for dietary recommendations for limiting consumption of red meat had been rebuked. “This same information has been republished again and again and again – and yet the scientific community has disproved it again and again and again”, he said.

“We need to ask ourselves a question – how come they keep on publishing this nonsense? It is always headline news in all scientific journals and then also in mainstream media. Yet the studies that are debunking it – well, they seem to get buried in some scientific and academic material that never sees the light of day.

 

Hybu Cig Cymru

 

Also:

Welsh Beef producers shine during Great British Beef Week

PGI Welsh Lamb campaign “a major success”, says HCC

Welsh lamb to be showcased in the US

Welsh secure new lamb deal with Japan

 

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