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Poland Seeks Greater Access to Chinese Market for Meat Products

Poland’s President Andrzej Duda has expressed a strong desire to open the Chinese market further for Polish meat products. Before departing for China on Saturday, Duda highlighted the importance of this initiative, particularly for Polish poultry and beef.

During his five-day official visit, President Duda will meet with China’s President Xi Jinping and Premier Li Qiang. He will also address economic forums in Dalian and Shanghai and present decorations at the Polish embassy. The visit aims to strengthen economic ties between the two countries, with several economic agreements expected to be signed.

Duda emphasised that the most crucial aspect of the visit is the ongoing efforts to secure a successful opening of the Chinese market for Polish poultry, followed by beef. He also mentioned that discussions with President Jinping would focus on increasing Chinese investment in Poland and addressing the need for new transport routes. The current import and export of goods from China are being hampered by the war in Ukraine and the migration crisis on the Polish-Belarusian border.

The president’s visit underscores Poland’s commitment to enhancing its trade relationship with China and ensuring long-term growth and stability for its meat industry.

Polish Press Agency

Danish lobby group urges swift solution to China’s threatened pork tariffs

COPENHAGEN, June 17 (Reuters) – Denmark’s pork industry could face significant challenges if China restricts imports of European meat, according to the Danish Agriculture & Food Council. The lobby group urged for a solution to be found before July 4, following China’s announcement of an anti-dumping investigation into imported pork and its by-products from the EU. This move comes in response to the EU’s curbs on Chinese electric vehicle exports.

While Chinese tariffs are not expected immediately, provisional tariffs on EU imports of electric vehicles are set to take effect on July 41. Spain, the EU’s largest pork exporter to China, has stated that it is working with EU officials to prevent the imposition of damaging tariffs1. The Netherlands and Denmark, the EU’s other major pork exporters to China, are also closely monitoring the situation.

The potential restrictions could have far-reaching implications for the European pork supply chain, affecting prices and profitability across the region.

Rival pork exporters could benefit from China-EU trade tensions

SINGAPORE, June 17 (Reuters) – Pork suppliers from South America and the U.S. could gain market share in China if Beijing restricts imports from the European Union in response to escalating trade tensions, according to traders and analysts. Russia, which began exporting pork to China in February and has become an increasingly close trading partner, could also increase its meat shipments.

China’s commerce ministry announced on Monday that it had opened an anti-dumping investigation into imported pork and its by-products from the EU, following the bloc’s imposition of anti-subsidy duties on Chinese-made electric cars. The investigation could last more than a year, and any impact on EU exports will take time to emerge.

Pan Chenjun, a senior analyst at Rabobank in Hong Kong, stated, “Brazil, Argentina and the U.S. can export more pork and offal to China if exports from the European Union are restricted.” This shift could provide new opportunities for these countries to expand their market presence in China.

The potential restrictions on EU pork imports come at a time when China’s demand for pork remains high, and alternative suppliers are well-positioned to fill any gaps that may arise.

Spain Calls for Negotiations to Avoid Tariffs on Pork Exports to China

MADRID, June 17 (Reuters) – Spain has called for negotiations to prevent tariffs on its pork exports to China, following Beijing’s announcement of an anti-dumping probe into pork imports from the European Union. The investigation appears to mainly target Spain, the Netherlands, France, and Denmark, in response to the EU’s curbs on Chinese electric vehicle exports.

Spanish Agriculture Minister Luis Planas expressed hope for a resolution, stating, “I hope and expect that there will be room for understanding, for negotiation, and to avoid the imposition of tariffs on agricultural and food products.” The probe, announced by China’s commerce ministry, will focus on pork intended for human consumption, including fresh, cold, and frozen whole cuts, as well as pig intestines, bladders, and stomachs

Spain, a leading EU pork exporter, is working with EU officials to avoid damaging tariffs that could impact the industry significantly. The investigation could last more than a year, and immediate measures are not expected.

Irish Pig Market Update 12th June

There was no announced change to Irish pig prices on Friday.  Producers are reporting quotes of at least €2.26 – €2.33 available from processors in ROI, with some reporting up to €2.35/kg.  

This  signals strong demand for pigs with the average price circa €2.30/kg following an increase of 2c/kg delivered to many producers.

According to the Commission the average European price for a grade E carcass pig for week 22 was €2.21/kg (Excluding vat). This price   is still 8% less on prices for the same week last year, however it is up 1% on last month’s average EU grade E carcass price.

The weekly throughput for week ending June 9th  was 53,573 of which 1,493 were sows.

German authorities have reported a 9th pig farm to be infected with African Swine Fever. The virus was confirmed in a finishing farm in the state Mecklenburg-Vorpommern, in the country’s north east just 20km from the border of Poland. There were 3,000 finishers on the farm. Authorities have stated that there has been no wild boar infected in the surroundings.

IFA

Irish Cattle Trade & Prices w/e June 8th 2024

Cattle & Beef

Throughput: There were 28,736 cattle processed in DAFM approved plants during the week ending June 8th  2024, taking throughput for the year to date to 782,949 head. This is a 14,280 head or 2% increase on the corresponding period in 2023 when a total of 768,669 cattle were processed. There have been 560,851 prime cattle processed in the first 23 weeks of 2024, a 3% increase from the same period last year (+7,723 head). Cow throughput has remained strong with 189,745 cows processed so far this year, a notable increase of 17,809 head (+10%)

Prices: Base quotes this week are in the region of €5.10/kg – €5.15/kg for steers while starting quotes for heifers are around €5.15/kg-€5.20/kg. The trade for the smaller numbers of young bulls on offer remains steady with €5.40/kg available for R grading animals under 24 months of age.

The cow trade has remained solid. Well fleshed O grading cows are being quoted at €4.50/kg with €4.70-4.90c/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 June 8th 2024, the average price paid by Irish beef processors for R3 increased by 4c/kg to be €5.17/kg. This was 3c/kg behind the corresponding week in 2023 when the R3 steer price was €5.20/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 €5.07/kg (excluding VAT) for the week ending June 8th 2024. This is the same as Week 23 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 increased slightly by 1c/kg to be €5.68/kg (equivalent to £4.87/kg).

 

Bord Bia 

EU Pork Industry Faces “Nightmare Scenario” Amid Potential Chinese Import Restrictions

HAMBURG/LLEIDA, June 14 (Reuters) – Europe’s pork industry is bracing for a “nightmare scenario” of lower prices and falling profitability if China restricts imports from the region, according to industry executives and analysts. The concerns arise after Chinese firms requested an anti-dumping probe into pork imports from the European Union, as reported by state-backed Chinese media on Friday. This development escalates tensions following the EU’s imposition of anti-subsidy duties on Chinese-made electric vehicles.

In 2023, China imported $6 billion worth of pork, including offal, with more than half of these imports coming from the EU, according to Chinese customs data. A halt in these orders would result in a significant loss of business for Europe’s meat industry. Justin Sherrard, global strategist for animal protein at Rabobank, stated, “The full suspension of EU pork exports to China would be a potential nightmare scenario for the pork supply chain, with implications across the EU.”

The potential disruption could lead to lower prices and reduced profit margins for European pork producers, who may struggle to find alternative markets for their products. The ability to export pork parts such as ears, noses, and feet to China has been crucial for generating higher value from the whole carcass. While alternative markets might be found for pork muscle meat cuts, it is doubtful that the same could be achieved for variety meat exports currently shipped to China.

Germany’s pork industry, already affected by an import ban from China since 2020 due to swine fever, could face further challenges. Spain, another major exporter, may also need to seek new markets, potentially leading to downward pressure on EU pork prices.

The situation underscores the interconnectedness of global trade and the potential ripple effects of trade disputes on various industries.

Michael Hogan and Belén Carreño | Reuters

China firms seek anti-dumping probe of EU pork imports, ramping up tensions

BEIJING, June 14 (Reuters) – Chinese firms have formally applied for an anti-dumping probe into pork imports from the European Union, the state-backed Global Times reported, escalating tensions after the bloc imposed anti-subsidy duties on Chinese-made electric vehicles.
The move opens a new front in bilateral strains in one of the world’s key trading relationships after Brussels slapped tariffs of up to 38.1% on EVs made in China to shield its auto industry from competition.
China imported $6 billion worth of pork in 2023, including offal, with the EU accounting for more than half, customs data showed.
The Global Times report, posted on X, gave no details of the requested anti-dumping probe, and it was unclear which pork products would be targeted.
Pig parts that are not favoured in Europe such as feet, ears and offal are popular among Chinese consumers, providing a valuable and important market for Europe.
“Much of the imports from Europe are not muscle meat … If also (offal), China would need to import more from other countries where (offal) is not consumed in the local market,” said a livestock analyst who declined to be named due to the sensitivity of the matter.

Is the Australian lamb market becoming more volatile?

Key points:

  • Lamb prices are more volatile as market players become more reactive to market conditions.
  • Slaughter can help indicate the overall supply of the market.
  • Relying on the lamb production life cycle to predict prices without considering the overall market can lead to unfavourable outcomes.

Many will be asking themselves what has happened to the lamb market in recent years, with the uncertainty of the market having resulted in unexpected price changes.

Prices are at the highest they have been in last two years, following good weather conditions since the El Niño was announced in 2023. There has been a rebound in prices in the previous couple of months. With lambing season beginning, prices typically rise during this time.

Historically in 2018–2019 and 2021, a clear trend appeared which reflected the seasonality where prices start to increase at the start of lambing season, reaching its peak at the beginning of spring. This trend completely breaks down in the following years due to reasons such as unpredictable world events and foot-and-mouth disease (FMD).

In 2020, prices peaked in March and continued to ease into August where prices were at their lowest. This trend is unusual but can be explained the COVID-19 outbreak.19. During this period, demand eased from processors which were unable to process more animals. This diverges from the standard yearly seasonal trend. Notably, there are a multitude of factors that influence price, but overall supply will have a larger impact on the operating environment. Lamb slaughter typically begins to dip from lambing season up until spring flush. In 2020, slaughter hovered around 300,000 to 350,000 head. This is well below the figures of 2018–19 where drought led to increased destocking. During 2020, the dynamic flipped into a rebuild where slaughter eased and there was increased attention on restocking.

During 2022 there continued to be a buck in the trend. Prices reached their peak in November at 833¢/kg carcase weight (cwt), with a dip in prices in July to 667¢/kg cwt. July is when prices would typically rise in line with the beginning of lambing season. Although the prices bucked the seasonal trend, the combination of a FMD scare, a strong season and decent processor capacity meant there was minimal price volatility. Slaughter figures were consistently strong throughout 2022 without seasonal dips. This points to increased supply in the market after a strong rebuild in 2021.

MLA

 

Browns Food Group Partners with AK Stoddart

AK Stoddart has become Scotland’s largest privately-owned meat business, thanks to a multi-million pound investment from Browns Food Group.
This move creates Scotland’s largest privately-owned meat business and reinforces investment in the Scottish meat sector.
The combined company’s market position will accelerate processing capacity and export capabilities, positioning the new entity as the largest Scottish owned meat business with £300 million turnover and plans to reach £500 million via a committed investment programme.
This alliance between Browns and Stoddart’s ensures the long-term sustainability of the pork and beef sectors from farm to fork.
Grant Moir, Managing Director, and Julie Fancourt, Finance Director, the remaining shareholders of Stoddart’s, will continue to manage day-to-day operations as usual.
Both companies will work together to develop and grow, maintaining the high standards of quality and brand reputation.
Mr Moir said “The key message here is that nothing changes. We have known the Browns team for many years and feel confident that this is the right decision for our business providing greater stability and growth opportunities”
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