EU pig meat exports drop as demand from China falls

Exports of pig meat have been falling in recent months, pushing the market further into oversupply, and putting further pressure on prices. Demand for the important Chinese market, which had been importing more while its own domestic herd struggled with African Swine Fever (ASF), has fallen.

The Chinese pig herd has been growing, although progress has stalled more recently. Wholesale pork prices are now where they were before the disease outbreak.

Spanish exporters, in particular, had expanded volumes on the back of Chinese import demand, and volumes from this country have shown the most marked decline in recent months. Germany cannot send any pig meat to China at the moment, as it contends with its own ASF challenges.

While the UK was never the biggest exporter to China, these volumes have played an increasingly important role in balancing our market, and have also been in decline recently, along with exports to the EU itself.

 

 

by Duncan Wyatt / AHDB

What’s the latest on global cattle and sheep prices?

Cattle

For the most part, cattle prices around the world have continued to rise over the last few weeks, reflecting lower supplies in key producing nations and strong demand from importers, particularly China and Southeast Asia.

Australian cattle prices have gone from strength to strength, with Meat and Livestock Australia reporting that improved seasonal conditions are adding confidence to the market. Demand is also reportedly strong domestically and overseas, the latter helped by supply constraints in South America.

In South America, the price picture has been more mixed. There are currently bans in place on beef exports from Argentina in an aid to control domestic prices, and more recently, China banned shipments from Brazil due to BSE. Brazilian prices have fallen of late, reflecting increased supplies and weaker industry demand. Close by, prices in Uruguay and Paraguay have continued to strengthen, possibly in response to neighbouring supply situations.

Prices have also increased in the US, fuelled by strong demand domestically and for export (particularly to Asia). Tighter supplies of cattle are also expected to keep prices elevated going forward, as severe droughts across regions of the country during summer have led to increased liquidation of herds.

Sheep

Prices have also strengthened on the global sheep market. In Australia and New Zealand, deadweight lamb prices are currently around 30% higher than they were at the same point a year ago (in GBP terms). New Zealand lamb prices have been on an upwards trajectory for several months, recovering from the lows in 2020 caused by COVID-19 disrupting international demand.

Australian prices continue to be supported by tighter supplies as producers rebuild their flocks following droughts.

 

By Hannah Clarke / AHDB

EU pig meat exports in decline

Exports of pig meat have been falling in recent months, pushing the market further into oversupply, and putting further pressure on prices.

Demand for the important Chinese market, which had been importing more while its own domestic herd struggled with African Swine Fever (ASF), has fallen. The Chinese pig herd has been growing, although progress has stalled more recently. Wholesale pork prices are now where they were before the disease outbreak.

Spanish exporters, in particular, had expanded volumes on the back of Chinese import demand, and volumes from this country have shown the most marked decline in recent months.

Germany cannot send any pig meat to China at the moment, as it contends with its own ASF challenges. While the UK was never the biggest exporter to China, these volumes have played an increasingly important role in balancing our market, and have also been in decline recently, along with exports to the EU itself.

 

By Duncan Wyatt / AHDB

AHDB

Sheep prices fall, throughputs lower

Both liveweight and deadweight sheep prices fell in the latest week, although there were lower throughputs in the markets, and a lower estimated slaughter. Similar to other meat sectors there are various challenges currently which may be bring downward pressure to prices.

  • Ongoing staff shortages for the slaughter line and boning hall
  • Lorry driver shortages across the supply chain.
  • There are also reports that demand from the continent is limited at the moment.

The GB liveweight SQQ fell by nearly 5p in the week ending 22 September, to average 218.19p/kg. Auction market throughputs were 100,400 head, 8% lower than in the previous week and over a fifth lower than the same week last year.

Deadweight prices didn’t fair any better, falling by 18.5p/kg in the week ending 18 September to average 508.4p/kg. Estimated slaughter at GB abattoirs was 238,500 head, 1% fewer than in the previous week and 8% down on the same week last year.

Estimated clean sheep slaughter in the year so far is 7.8 million head, 11% down on 2020. In a typical year we would now be in the heart of peak kill season, but kill levels have not picked up the way we would expect.

There is no reason to think the lambs are not out there, so the question is when will they come forwards?

 

AHDB

AHDB

Quality Pork Ltd: Talks ongoing but Pilgrim’s UK says situation ‘unsustainable’

The future of Scotland’s only pork processing plant is hanging in the balance as crisis talks are held to find a way forward for Brechin’s state-of-the-art abattoir.

Pilgrim’s UK is the sole customer for the pigmeat processed at Quality Pork Ltd’s (QPL) Brechin plant, and the company says it has held talks over the future of the site and discussions are ongoing.

However, Pilgrim’s emphasised the current situation is “unsustainable”.

The news comes in the week the plant, which employs about 120 people, announced it had stepped up production to four days after operating a three-day week since January, when an outbreak of Covid resulted in it giving up a lucrative export licence with China.

That licence has not been reinstated by China despite the plant getting the all-clear by public health authorities a few weeks after the outbreak, and it is generally believed this is related to ongoing political tensions between China and the UK.

Pilgrim’s said: “We remain deeply committed to Scottish pig farmers and customers of Scottish-reared pork however the surrender of its China export licence has meant that the QPL abattoir in Brechin has become unsustainable.”

The chief executive of Scottish Pig Producers, Andy McGowan, played down the urgency of the situation, but confirmed talks with Pilgrim’s and other stakeholders – including the Scottish Government – had been taking place for some time.

“The situation is difficult and we have commercial challenges but we are not under any imminent threat of closure as far as I’m aware,” he said.

 

 

 

Saudi Arabia lifts suspension of Brazil meat imports from five plants

SAO PAULO, Sept 17 (Reuters) – The Saudi Food and Drug Authority (SFDA) has lifted a suspension of Brazilian meat imports from five meatpackers imposed this month after two cases of mad cow disease, according to Brazil’s Agriculture Ministry and a document seen by Reuters.

The SFDA document, dated Thursday, shows that the five plants are now authorized to ship beef to Saudi Arabia.

Brazil’s Agriculture Ministry confirmed to Reuters that the Saudi government has lifted its suspension.

Brazil, the world’s largest beef exporter, has seen sales to some countries, including No. 1 customer China, halted over the disease.

Two cases of so-called atypical mad cow disease, which develops spontaneously and is not related to animals eating contaminated foods, were identified in meat plants in the states of Mato Grosso and Minas Gerais, the ministry has said.

US to accept British lamb for first time since 1989

The United States will lift its ban on imports of British lamb, Boris Johnson has announced, a move the sheep sector says will help maximise trade opportunities for UK farmers.

A ban on both British lamb and beef imports to the US has been in place since 1989 due to concerns around BSE, commonly known as ‘mad cow disease’.

Boris Johnson made the announcement following talks with President Joe Biden at the White House.

“I can tell you today that what we’re going to get from the United States now is a lifting of the decades-old ban, totally unjustified, discriminating on British farmers and British lamb,” the prime minister said.

“It’s about time too. And what we’re wanting to do is make solid incremental steps in trade.”

The National Sheep Association (NSA) welcomed the announcement, saying it would increase demand for British sheepmeat within the US.

According to the trade body, the UK is the third largest exporter of sheepmeat globally, but American consumption of the meat is currently ‘very low’.

However, it said the new deal could help stimulate interest in lamb and mutton through “exporting high quality British sheepmeat that reinspires interest”.

NSA chief executive Phil Stocker said: “This creates another opportunity for our industry to maximise trade opportunities and we have always seen the US as being a potentially important market.

 

 

by Farming UK

Butchers fined over £40k for selling poor quality chicken – owner legs it

A local butchers in Barking selling Halal meat has been found guilty in court for attempt to sell poor quality chicken to customers. 

Following an inspection by Barking and Dagenham Council enforcement officers on 23 August 2018 of Barking Halal Meat & Fish, officers discovered 500kg of untraceable chicken. While officers investigated the rest of the business, the manager, Mr Azar Irshad, quickly removed an unknown quantity of poultry. The initial 500kg was detained by officers.

As the investigation continued, intelligence showed that Mr Irshad was suspected of obtaining rejected supermarket chicken, which was understood to have been destined for pet food and was reselling it for human consumption for approximately a year.

During the inspection of the butchers located on 14 East Street Barking, council enforcement officers were subject to attempted bribes, which were obviously rejected. Fake receipts were also provided stating that he had received 1000kg of chicken in an attempt to legitimise the supply chain. The company on the receipts was contacted and satisfied officers that they had not supplied Barking Halal with the chicken, nor were they aware of Mr Irshad.

Due to Mr Irshad missing a number of court hearings and because of the Covid pandemic, the case was only heard at Barkingside Magistrates Court on Tuesday 14 September, where the defendant was found guilty in his absence.

The Court fined the company £40,000 plus £5,075 costs and a £170 victim surcharge, which must be paid within 28 days.

In addition, a warrant has been put out for Mr Irshad’s arrest since February 2020.

 

 

www.lbbd.gov.uk

Lamb price dips despite lower numbers

New-season liveweight lamb prices fell in the week to Tuesday, with markets seeing an SQQ average of 225.29p/kg.

This was a 9.6p/kg drop on a 6% lower throughput than the previous week. The fall came mostly in the first two days of the week, when the average was 6p/kg lower than for the week to Saturday (11 September).

The week to Saturday price showed the second consecutive weekly fall, after a steady trade since mid-August, and put the SQQ average about 20p up on year-ago levels.

Demand remains strong, however, especially for best export types. Finished lamb throughputs have been lower than in 2020 for most weeks since the new-season lamb crop started coming to market in significant numbers.

A very small drop in cull ewe numbers in markets for the week ended Tuesday saw trade hold steady at just over £76.50 a head.

 

 

By Suzie Horne and Charlie Taverner / Farmers Weekly

Biden administration plans tougher action to rein in meat prices

WASHINGTON, Sept 8 (Reuters) – The Biden administration plans to take a tougher stance toward meatpacking companies it says are causing sticker shock at grocery stores.

Four companies control much of the U.S. meat processing market, and top aides to President Joe Biden blamed those companies for rising food prices in a blog on Wednesday.

As part of a set of initiatives, the administration will funnel $1.4 billion in COVID-19 pandemic stimulus money to small meat producers and workers, administration aides said in the blog post. They also promised action to “crack down on illegal price fixing.”

Four companies slaughtered about 85% of U.S. grain-fattened cattle that are made into steaks, beef roasts and other cuts of meat for consumers in 2018, according to the most recent data from the U.S. Department of Agriculture (USDA).

The big four processors in the U.S. beef sector are: Cargill (CARG.UL), a global commodity trader based in Minnesota; Tyson Foods Inc, the chicken producer that is the biggest U.S. meat company by sales; Brazil-based JBS SA, the world’s biggest meatpacker; and National Beef Packing Co, which is controlled by Brazilian beef producer Marfrig Global Foods SA.
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