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”

Irish Sheep Trade & Prices w/e June 1st 2024

Quotes: Base quotes for hoggets from the major processors have tightened this week with base quotes of €8.80-€9.20/kg (+QA bonus) on offer. Small numbers of spring lambs have started to be processed in Irish processing plants with quotes of €9.10-9.20/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: Last weeks reported price increased to €9.12/kg, an increase of 11c/kg from the week previous. In the corresponding week in 2023 the reported price was €7.41/kg. The deadweight trade has also remained firm in the UK regions with reported spring lamb prices the equivalent of €10.48/kg (+1c/kg) in mainland GB last week while the reported price in Northern Ireland was €9.54/kg (-1c/kg) for w/e June 1st 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 €4.18/kg and €3.57/kg respectively last week.

Throughput: The total sheep kill in DAFM approved plants for week ending June 1st 2024 was 42,815 head, back marginally from the corresponding week in 2023. Throughput for the year to date has totalled 1,042,642 head, 10% behind the corresponding period in 2023. The hogget kill for the year to date has totalled 852,215 head, operating 9% behind 2023 levels. Meanwhile the ewe/ram kill year to date is back by 14,870 head (-13 %) to 101,896 head. Spring lambs have started to increase for processing with 88,612 processed so far this year.

Bord Bia

Jais Valeur to step down as Group CEO of Danish Crown

In May, the Board of Directors of Danish Crown and the Executive Board started work on a new group strategy, which is expected to be ready for presentation in the autumn.

Prior to this, Group CEO Jais Valeur has discussed with Chairman of the Board Asger Krogsgaard the need to find a long-term CEO profile to take Danish Crown through the next strategy period. The Board of Directors has now decided to accelerate this process.

“Both the Board and Jais have come to the conclusion that Danish Crown needs a new leadership and one that will be in place for the duration of the comprehensive task ahead of us. Jais is handing over a core business which in many ways is geared to delivering positive and long-term value creation for us, its owners. However, it is vital for the Board of Directors that we always pay competitive settlement prices to our owners, and the situation at the moment is such that Danish Crown’s competitiveness must be improved. Therefore, we believe it is important for all parties to start the forthcoming strategy process in the knowledge that the strategy will be executed by a new CEO,” says Asger Krogsgaard.

The process of appointing a new Group CEO has commenced. It has been agreed that Jais Valeur will head the business until a replacement has been found to ensure no momentum is lost during the recruitment process.

“Earlier in the year, I informed Danish Crown that I do not see myself as CEO of the company in the longer term. I can therefore appreciate why the Board of Directors wants to accelerate this process and look further ahead to ensure that the company can embrace its new strategy with a new Executive Board in place for the longer term.

Danish Crown has come a long way while I’ve been at the helm, but there is still a huge and also highly exciting task facing the company in the coming years. It will call for a massive and persistent effort by the Executive Board. I will now focus on steering Danish Crown through the coming period to create the best possible conditions for my replacement.

Danish Crown is a fantastic company with dedicated employees and huge unfulfilled potential,” says Jais Valeur.

“Jais has worked extremely hard for Danish Crown for the almost nine years that he has headed our business. Under his leadership, the group has been extensively developed and professionalised. It says everything about Jais’s sense of dedication to Danish Crown that he has agreed to stay on to ensure consistent leadership focus in the organisation until his replacement is ready to take over. I have great respect for that,” says Asger Krogsgaard.

Danish Crown

Australian Red Meat Continues to Gain Popularity in the USA

Lamb

During May, 36,703 tonnes of lamb were exported, which is the highest lamb export on record for a single month. The United States (US) continues to be the largest market for Australian lamb, followed by China and the Middle East and North Africa (MENA) region.

The increase in total export volume has led to a diversification in markets. For example, exports to Iraq have increased fivefold from last year to 1,386 tonnes, becoming Australia’s eighth largest lamb market in May. As Australian exports maintain a strong pace, it will present opportunities to develop market share both in Australia’s traditional key markets and emerging markets.

Key points:

Lamb exports have reached record highs, and beef exports are the highest since December 2019.
Strong demand from the United States makes it the largest market for lamb, beef and goatmeat.

Beef

There was a rise of 9% from April and 25% (113,923 tonnes) when compared to May 2023 for beef exports. This makes May the biggest month for beef exports since December 2019, and the largest May export figure since 2015.

The export growth was led by strong exports to the US, which lifted by 74% year-on-year to 31,294 tonnes, making up 27% of total exports. US declines in production are now having a noticeable impact on export flows; Australian exports to the US have been consistently high this year, and lower US exports to Japan and Korea have caused increased demand for Australian beef in those markets. Exports to Japan rose by 31% year-on-year to 19,366 tonnes, and exports to Korea lifted 9% year-on-year to 17,096 tonnes.

China was the only major market to see a decline in volumes, with exports falling 22% year-on-year to 15,359 tonnes. Brazil is the major exporter to China, and with Brazilian production currently running at near-record highs, this is impacting the Australian market share.

Mutton

Australian exports of mutton rose 11% year-on-year to 21,664 tonnes, the largest single month figure since November 2019.

China was the largest market for the month, though exports fell 38% year-on-year to 5,363 tonnes. Most of the export growth came from markets in MENA; Exports to Saudi Arabia doubled to 1,950 tonnes, exports to Oman rose by 146% to 1,284 tonnes and exports to Qatar lifted eightfold to 1,229 tonnes.

Exports to our other key markets (outside of China and MENA) remained robust; exports to Malaysia rose 26% year-on-year to 2,365 tonnes, exports to the US also rose by 26% to 936 tonnes and exports to Singapore lifted 11% to 889 tonnes.

MLA

What is happening in the Australian lamb market right now?

Over the past year, the lamb market has seen a turnaround, with strong sentiment and an improved weather outlook. The industry has seen prices improve by 10–20% compared to a year ago.

When it comes to lambing season, the availability of high-quality feed is critical to not only produce lambs of high quality but to additionally ensure healthy lamb fertility into the following year.

The 2024 lambing season is approaching and with the late autumn break in the southeast of Australia there will be an impact on the upcoming lamb crop. With lower rainfall in key sheep country will be an increase in demand for grain and fodder producers focusing on ewe survival for next year’s lamb crop to maintain the fertility and health of their ewes.

Also: Quarterly Australian Lamb Slaughter Hits All-Time High

Given the current market situation, the Heavy Lamb and Trade Lamb Indicators are diverging from the Light Lamb and Restocker Lamb Indicators. After starting the year at approximately 750¢/kg cwt, the gap between these indicators has now grown to around 30%. The largest gap between the indicators was seen in August 2023 to October 2023, when the price eased from both market sentiment and the forecasted weather outlook.

What does this mean for you? The seasonal conditions have driven the divergence in price between the Trade Lamb and Heavy Lamb Indicators vs The Light Lamb and Restocker Lamb Indicators. This is where heavier lambs are entering the market as a result of protein demand both domestically and in the United States, resulting in week-on-week record cattle and sheep slaughters. A lower supply of light lambs has been driven by the west-to-east transfer of restocker style lambs combined with drier conditions in Victoria leading to a divergence in price.

Key points:

Lamb prices are strong from improved weather outlook.
Heavier lambs are entering the market before lambing begins.
Drier conditions in Victoria leading to less demand for lighter lambs.

MLA

China Approves Import of Danish Processed Pork Products

BEIJING (Reuters) – China has given the green light for the import of Danish salami, frankfurter sausages, and canned pork, as announced by top processor Danish Crown this week. This approval paves the way for shipments of higher-value processed meat to the world’s largest pork consumer.

The agreement, which follows more than nine years of negotiations between China and Denmark, allows two factories owned by Danish Crown subsidiary Tulip Food Company to export six products to China: pepperoni, salami, frankfurter sausages, hotdogs, canned luncheon meat, and canned sausages.

Tulip Food Company chief executive Kasper Lenbroch stated that exports of these products to China could be worth 250 million Danish krone ($42 million) annually in a few years. “I expect the first container to be shipped off within the next few weeks,” Lenbroch said in a statement on Monday. The company already has agreements in place with Chinese distribution partners.

Reuters

Irish Sheep Trade & Prices w/e May 19th 2024

Quotes: Base quotes for hoggets from the major processors have tightened this week with base quotes of €9.30-€9.50/kg (+QA bonus) on offer. Small numbers of spring lambs have started to be processed in Irish processing plants with quotes of €9.55-9.65/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.

Prices: Last weeks reported price decreased to €9.16/kg, an reduction of 11c/kg from the week previous. In the corresponding week in 2023 the reported price was €7.48/kg. The deadweight trade has also remained firm in the UK regions with reported spring lamb prices the equivalent of €9.78/kg (-8c/kg) in mainland GB last week while the reported price in Northern Ireland was €9.60/kg (+39c/kg) for w/e May 19th 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 €4.11/kg and €3.52/kg respectively last week.

Throughput: The total sheep kill in DAFM approved plants for week ending May 19th 2024 was 40,730 head, back marginally from the corresponding week in 2023. Throughput for the year to date has totalled 960,701 head, 10% behind the corresponding period in 2023. The hogget kill for the year to date has totalled 818,302 head, operating 9% behind 2023 levels. Meanwhile the ewe/ram kill year to date is back by 12,126 head (-12 %)

Bord Bia

Irish Cattle Trade & Prices w/e May 19th 2024

Cattle & Beef

Throughput: There were 31,984 cattle processed in DAFM approved plants during the week ending May 19th 2024, taking throughput for the year to date to 692,034 head. This is a 18,573 head or 3% increase on the corresponding period in 2023 when a total of 673,461 cattle were processed. There have been 494,448 prime cattle processed in the first 20 weeks of 2024, a 3% increase from the same period last year (+11,520 head). Cow throughput has remained strong with 167,808 cows processed so far this year, a notable increase of 18,817 head (+10%)

Prices: Base quotes this week are in the region of €5.00/kg for steers while starting quotes for heifers are around €5.10/kg. The trade for the smaller numbers of young bulls on offer remains steady with €5.20-5.30/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 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 May 19th 2024, the average price paid by Irish beef processors for R3 decreased by 6c/kg to be €5.16/kg. This was 7c/kg behind the corresponding week in 2023 when the R3 steer price was €5.23/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 €5.02/kg (excluding VAT) for the week ending May 18th 2024. This is the same as Week 20 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 decreased slightly by 2c/kg to be €5.70/kg (equivalent to £4.85/kg).

Bord Bia

Opportunities at the Saudi Food Show for British Lamb Exporters

This week, British lamb and dairy businesses headed to Saudi Arabia in a bid to meet growing consumer demand and build on long term export opportunities.

Exporters from both sectors have joined us at the Saudi Food Show in Riyadh from 21−23 May.

The show is Saudi Arabia’s leading event for food and beverage sourcing. It provides UK lamb and dairy exporters with the opportunity to meet key buyers from across the Middle East region.

Dr Awal Fuseini, AHDB Senior Halal Manager, said:

“Although Saudi Arabia is not our biggest market for lamb in the region, it has been identified by AHDB as one of the markets with strong growth potential for our exporters.

“With this in mind, participating in the Saudi Food Show is a great opportunity for us to meet with key industry buyers and emphasise our high-quality lamb production credentials with a view to increasing our presence in this growing market.”

AHDB

The Saudi Food Show 2024 | Riyadh

Irish Sheep Trade & Prices w/e May 12th 2024

Irish Sheep Trade Prices – Week Ending 12 May 2024

The latest data confirms that Irish sheep trade prices May 2024 remain strong, supported by tight supplies and resilient demand. Base quotes for hoggets from major processors tightened this week, ranging between €9.30/kg and €9.40/kg, with the Quality Assurance (QA) bonus included. Small numbers of spring lambs also entered processing plants, with quotes of €9.55–€9.65/kg plus QA bonus.

Processors reported that the firm deadweight trade reflects limited availability of suitable hoggets. Spring lambs have been slow to appear, adding further pressure to supply. Across the UK, hogget throughput is currently 5% behind 2023 levels, with reports of ewe lambs once reserved for breeding now redirected into processing. According to EU forecasts, throughput is expected to decline by 2% in the first half of 2024, cutting around 580,000 head from the sheep kill.

Prices

For the week ending 12 May 2024, Irish reported lamb prices eased slightly to €9.05/kg, down 23c from the previous week. In the same period last year, prices were €7.51/kg, showing the scale of year-on-year improvement.

Across Great Britain, spring lamb averaged €10.57/kg (down 8c/kg), while Northern Ireland reported €9.21/kg (down 29c/kg). In the Southern Hemisphere, Australian prices held at €4.09/kg and New Zealand climbed to €3.52/kg, keeping their products competitive in EU markets despite added freight costs.

Throughput

In Ireland, DAFM-approved plants processed 41,258 sheep during the week ending May 12, 2024, slightly below the 2023 level. Year-to-date throughput stands at 920,033 head, a 10% decline. Hogget kill totalled 795,287 head (down 9%), while ewe and ram throughput fell by 12% to 88,932 head. Spring lamb processing is gradually increasing, with 35,749 head handled so far this year.

With supply tight and demand steady, Irish sheep trade prices May 2024 highlight strong returns for producers and an increasingly competitive international market.

Bord Bia