GB pig prices for week ending July 24, 2021 – SPP increases again

AHDB Pork’s weekly pig prices, slaughter data and commentary for Great Britain

Finished pig prices continued to climb in the latest week – the EU-spec SPP lifted 0.78p to average 160.66p/kg in the week ending June 17.

Despite recent gains, prices remain 4.95p below the same week last year, but up 8.46p on the five-year average.

Estimated slaughter fell notably on the week, down 3.7% (6,400 head) on the week before, and 10,700 head less than the same point in 2020. This is the first time slaughter levels have dropped noticeably below year-earlier levels since February. Recent reports have indicated challenges with staffing in processing plants and this may be reflected in the kill level.

All weight bands grew in price, with those weighing between 100 to 104.9kg seeing the largest weekly increase at 1.63p. The average carcase weight stood at 86.34kg, 210g heavier than those seen a week ago.

by Pig World / AHDB

Pilgrim’s UK announces 100 new jobs at Westerleigh

A MAJOR employer IN South Gloucestershire has announced 100 new jobs.

Pilgrim’s UK, one of Britain’s leading food and farming businesses, is looking for 100 skilled and unskilled workers to join its team at the Tulip site in Westerleigh from this month.

The company purchased Tulip Ltd in 2019 for £290million – a company that had been struggling financially for several years.

Tulip Ltd was sold to the US business Pilgrims Pride Corporation in October 2019.

The Tulip site at Oakleigh Green Farm in Westerleigh was a working farm up until 1978 when it was converted to a multi species abattoir.

The site is now increasing the size of its team in order to support the 50% increase in new business over the past 12 months and the opening of the site’s newest department, dedicated to supplying fresh pork joints.

The vacancies include roles in the butchery and packaging departments, as well as for abattoir workers. Opportunities are available for those with previous or no experience.

By Matty Airey / Gazette

UK ‘closing in’ on NZ free trade deal

July 31 (Reuters) – Britain is nearing an agreement in principle on a free trade deal with New Zealand, its trade ministry said on Saturday, as London looks to bolster its post-Brexit trade ties with non-EU partners.

The European Union is Britain’s single largest trade partner and the two sides have signed a post-Brexit trade pact, but business groups say they still face extra red tape dealing with European customers and suppliers as a result of Brexit.

Trade minister Liz Truss said that “great progress” had been made in a sixth round of discussions which ran from July 19-30.

A trade agreement with New Zealand could see the removal of tariffs on British and New Zealand goods making products available at lower prices, the ministry said.

A deal would also enable small and medium enterprises to export more goods and services to New Zealand, it added.

“We’re closing in on an agreement in principle, with 6 more chapters now complete,” Truss said.

Reuters

Russia becomes top-supplier of beef to China

Russia has overtaken Australia, Argentina and Brazil in beef exports to the Chinese market, the Centre for Industry Expertise (CIE) of Russia’s Rosselkhozbank says.

China bought some 3.7 thousand tons of Russian beef in the first quarter of 2021, 20 times more than during the same period last year, the industry department of the agricultural bank reported.

Over 55% of Russia’s total cattle meat exports go to the Chinese market. Overall, Russia sent about 6.5 thousand tons of cattle meat abroad in January-March, nearly two and a half times more than a comparable period in 2020.

The CIE explains the export growth as “the effect of a low base and a competitive price,” which makes Russian beef popular among Chinese consumers. Also, China’s own meat production was damaged by the African swine fever in 2018-2019, which forced the country to increase meat imports. Experts say this trend will continue for at least five more years.

“The need to keep meat imports at a high level will remain for at least the next five years, while the effects of the African swine fever outbreak are felt. Therefore, in the coming years, imports of Russian beef to China will continue to grow at a high rate,” the head of the CIE, Andrei Dalnov, predicts.

By RT.COM

Over half of small abattoirs expect to close within 5 years

Over half of small and local abattoirs expect to close within the next five years if action is not taken to safeguard their future, new research shows.

The National Craft Butchers (NCB) surveyed small and local abattoirs throughout England, Scotland, and Wales from March to May this year.

It highlighted the importance of the local abattoir network to farmers and the challenges it currently faces, including increased regulation, lack of training and loss of income.

Of the abattoirs surveyed, 70 percent of owners are aged over 51, with 11 percent over the age of 66, highlighting the sector’s aging workforce.

Over half (59 percent) expect to close the business within the next 5 years if action is not taken, and 56% do not have a succession plan or someone to take over the business.

Increases in one size fits all regulation, loss of income through hides and skins and lack of education in the meat industry as a skilled and attractive career choice is leading to a ‘cliff edge’, the NCB said.

by Farming UK

UK lamb exports plummet by a quarter in May

Lamb exports from the UK continue to be under pressure as new figures show exports declined by nearly a quarter last month.

UK sheep meat exports declined 23 percent year-on-year in May to stand at 4,850 tonnes, data by HMRC shows. The vast majority – 95 percent – were to the EU.

Volumes of fresh carcase exports only recorded a modest 2% on the year with most of the reduction being in cuts of sheep meat.

Looking at the figures, AHDB said there had been continuing trade friction between the UK and the EU which had ‘no doubt put volumes under pressure’.

“Equally domestic farmgate prices remained high during May which would have reduced the competitiveness of British lamb,” said Rebecca Wright, AHDB analyst.

“British exports totalled 24,600 tonnes in the year to May, down 6,500 tonnes year-on-year.”

by Farming UK

Many farmers are still missing carcase spec, says QMS

A “SIGNIFICANT proportion” of Scottish livestock are still failing to meet market specification, according to Quality Meat Scotland.

The red meat promotion body said that close to 40% of sheep and 30% of beef cattle in Scotland were being presented off-spec, resulting in financial, productivity and efficiency costs up and down the chain.

To remedy this, the levy-funded body wants more farmers to use its virtual carcase grading tool Meat the Grade, which was launched in late 2020.

QMS cattle and sheep specialist, Beth Alexander, who helped develop the tool, said that two of the most common reasons for ‘out of spec’ carcases were livestock which were overfat and overweight.

“Only 72.7% of the steers and 60.9% of lambs processed by Scottish price reporting abattoirs in 2020 met specification,” said Ms Alexander.

By Gordon Davidson / Scottish Herald

2 Sisters posts annual loss of £25.9m

2 Sisters Food Group has recorded an annual loss of £25.9m in its latest financial results covering the year to 1 August 2020. This is an improved result on the year before, when losses reached £69.3m.

2 Sisters Food Group is a wholly owned subsidiary of Boparan Holdings. During the course of the year, in November 2019, the company acquired the trade and assets from 2 Sisters Poultry, a fellow group subsidiary.

Turnover for the period was £1.275 bn, up 6.3% from the previous year. The company attributed this growth to the acquisition of trade and assets from 2 Sisters Poultry. The gross margin increased compared to the previous year from 3.4% to 8.8%, which the company said reflected improvements to operating performance.

The company said the COVID-19 pandemic had brought volatility and uncertainty to the business, specifically through the lack of labour caused by the requirement to self-isolate.

By Chloe Ryan / Poultry News

Treasury to become majority shareholder of Isle of Man Meat Plant

Government equity in the Isle of Man Meat Plant is to be transferred to the Treasury after Tynwald backed the move.

Currently the plant’s majority shareholder is the Department of Environment, Food and Agriculture.

Meat Plant chairman Tim Baker argued the organisation was a private firm run at arm’s length from government.

However, it was widely argued that DEFA’s role as the majority shareholder and Mr Baker’s role as political chair meant it was not independent.

The report said the £2m grant paid to the plant did not offer value for money as the majority of Manx meat was exported, and DEFA had a “potential conflict of interest” because there was not “clear separation of functions and responsibilities”.

Although a tender process for a private operator of the Tromode plant was run in 2017, no firm was appointed and Isle of Man Meats was set up with the department as majority shareholder.

While the report itself did not have any recommendations, it expressed a view that ownership should be transferred.

Chris Thomas MHK put forward an amendment to make that happen, along the review and reform of the governance, regulation and management of the plant “as soon as is practical”.

Backing the amendment, committee chairman Clare Barber the transfer would “ensure separation of powers” and was a “pragmatic solution to a problem”.

“We believe that if we don’t fix some of the issues raised within this report we won’t have food security at all,” she added.

“We will rely on 100% of imported meat if we don’t have a change in strategic direction for the meat plant.”

BBC

Job losses as AHDB cuts costs by £7.8 million in major restructure

Staff cuts including some in its senior leadership team will see AHDB reduce its operational costs by £7.8 million.

As part of a major restructuring programme announced earlier this year, the number of senior managers will be cut from 20 to 14.

But the majority of the savings from its £29m staff and overheads budget come as a result of the winding down of the horticulture and potato sectors following two levy payer ballots.

The board also plans to save money by subletting some of its office space at its Stoneleigh headquarters.

AHDB chair Nicholas Saphir said: “This new structure puts a clear focus on day-to-day delivery across all our knowledge exchange, technical, market intelligence, exports and marketing work.

“At the same time there will be absolute focus on levy payer engagement and involvement in planning sector priorities and programmes.

“With our new team now taking shape, this autumn we will be ready to unveil fundamental changes to the way levy payers can have a better say regarding what we provide, including the introduction of regular votes on a wide range of services and delivery.

“The revised senior management team will be in place at the beginning of September ready for the arrival of the new chief executive Tim Rycroft.”

Farmers Guardian