SHANGHAI — China’s pork prices surged again in August, as the government dips into national reserves to stabilize costs and ensure supply in the world’s biggest consuming nation of the meat.

The country’s headline consumer price index (CPI) slowed in August to 2.5%, according to official data Friday, while producer inflation eased to its lowest level in 18 months at 2.3% — far lower than in the U.S., U.K. and other nations battling decades-high inflation rates.

But the price of pork, a staple in China that is used in a wide variety of dishes, has bucked the trend by surging in recent months with average prices jumping 22.5% on-year in August after a 20.2% jump in July as output reductions squeezed supply.

Pork has the heaviest weighting among foodstuffs in China’s CPI.

The fresh data came after the government this week said it was dipping into frozen pork reserves for the first time this year in a bid to rein in prices as China gears up for this weekend’s Mid-Autumn Festival and National Day on Oct. 1.

But Chinese pork traders warned that the release of more frozen supply may not help much.

“Most of our customers prefer fresh pork to frozen pork,” said one seller in Shanghai. “Customers these days are buying less than before the lockdown in April because household incomes are flat and pork prices are rising,” he added, referring to a two-month COVID-19 lockdown in China’s financial capital earlier this year.

The government intervention was likely to ease supply concerns only in the short term, said Deng Shaorui, an analyst at Huatai Securities.

“Pork prices are going to stay at high levels,” Deng was quoted as saying by the Shenzhen Securities Times on Friday. “As the weather cooled and pork consumption recovered seasonally, demand is expected to grow ahead of the Mid-Autumn Festival and National Day holidays.”

 

By CK TAN / Nikkei Asia

The Far East has remained an important destination for UK red meat exports during the first half of the year, adding significant value to the UK red meat sector.

According to the latest data from HMRC, despite an easing of shipments due to a number of challenges on the market, China remains the largest importer of pig meat from the UK, with exports valued at nearly £88 million so far this year.

From January to June, more than half of the 108,294 tonnes of pig meat exported to non-EU countries, was imported by China, followed by the Philippines – which has become the world’s third largest importer of pork from the UK.

Shipments to the Philippines were valued at £25.9 million in the first six months of the year – up 14.8 per cent compared to the same period last year. AHDB led the first commercial mission to the Philippines in May, hosting nine UK exporters in Manilla to facilitate the all-important business to business meetings with leading importers.

And Japan is becoming a valuable export market for the UK’s red meat sector, with shipments of both pig meat and beef significantly up on last year.

After securing market access for beef in 2019, shipments have been steadily increasing, with £9.2 million worth exported in the first six months of 2022 – up from £2.8 million. Pig meat shipments have also increased, with exports worth almost £3.2 million.

AHDB Head of Exports Jonathan Eckley said: “Asian markets continue to prove a hugely valuable market for the UK’s red meat sector, despite many challenges on the global stage this year. While volumes to some countries may be quite low, these markets are vital in addressing the issue of carcase balance and utilising cuts that are less popular here in the UK but attract significant value in the Far East.

 

 

AHDB

September may have brought essential rain to build grass covers and get winter root crops growing to service demand for an anticipated bumper store lamb season.

National figures from Defra and AHDB suggest many lambs remain on farms after creep prices and dry weather slammed the breaks on lamb growth rates.

High lamb production was forecast in the AHDB summer outlook, which pegged flock expansion at 3% this year, and a prime lamb uplift of 2% in the second half of the year.

June and July slaughter figures are back 6% on the year, to 188,690, after being 14% up on the year from March to May.

August slaughter figures are still to be finalised, but liveweight throughputs are back 12.4% on the year, at 290,068 for the four weeks in August. Deadweight surveys suggest processors have had 9% fewer lambs on the year for the same period, at 169,188 head.

Store sales through markets in July and August have totalled 314,293 head, which is 14.5% back on the year. Average prices have levelled at £79, about £1.50 a head up on last year.

 

 

by Michael Priestley /  Farmers Weekly

RIYADH: Saudi Arabia plans SR17 billion ($5 billion) investment to boost poultry production as the Kingdom aims to achieve a poultry meat self-sufficiency rate of 80 percent by 2025, Saudi Press Agency reported.

By targeting 1.3 million tons of broiler chickens per year, the ministry will ensure national food security, increase local content, and create employment opportunities, the Saudi Minister of Environment, Water and Agriculture Abdulrahman Al-Fadley said.

This move follows a jump in self-sufficiency in poultry meat from 45 percent in 2016 to 68 percent in 2022.

The financing provided by the Agricultural Development Fund for companies seeking to expand the poultry production industry reaches 70 percent when top-notch technologies are used, Al-Fadley said.

In a related development, Ibrahim Qassem, the director-general of the Animal Resources Services at MEWA, told CNBC Arabia that the volume of livestock projects exceeded 980 across all regions of the Kingdom.

However, the feed prices soared by more than 90 percent due to the prevalent global factors, which are reflected in the prices of livestock, Qassem said.

He added that the ARS had developed an initiative to investigate and combat animal diseases, reducing losses by 25 percent.

 

 

Arab News

According to a report from Rabobank, China’s pork industry has begun a new cycle which will offer considerable growth potential and opportunities for local and global players. 

The new ‘upward’ cycle began in June 2022, say Rabobank, and is expected to run for less time than its previous cycles – five of which ran from January 2003 to June 2022, lasting for roughly three to four years each.

“We expect the new cycle to have less price volatility and a slightly shorter length compared to previous cycles,” says Chenjun Pan, senior analyst of animal protein at Rabobank. “Where cost leaders were the survivors from the previous cycle, in the longer term, winners will be those who are not only cost leaders but are also able to integrate supply chains.”

Rabobank research suggests that the newest cycle will see less price volatility and more government monitoring, with the main drivers and influencers of the cycle including policies, new industry structures, sustainability demands, and consumer trends.

 

By Meghan Taylor / Pig World

This week the security of UK Co2 supplies to critical industries like health, nuclear and food took a a major blow.

We had the twin announcements of the imminent cessation of production at CF Industries’ last remaining UK fertiliser plant alongside the planned September shut down for maintenance of the only other significant Co2 manufacturing plant at Ensus in Teeside.

Coupled with similar closures and the scaling back of production right across Europe, this looks set to herald a supply squeeze and steep price rise that has not been seen before as industries compete for a dwindling supply of the gas. In fact, reports are already surfacing of huge price hikes from the big wholesale gas suppliers like BOC and Nippon.

So far, the line taken by Government is that it’s up to industry to sort it out amongst themselves with one spokesperson commenting: “While the government continues to examine options for the market to improve resilience over the longer term, it is essential industry acts in the interests of the public and business to do everything it can to meet demand.”

Given this week’s developments, this approach could result in more of a darwinian free-for-all than an orderly free market adjustment.

 

By The British Meat Processors Association

ABP Food Group has begun flying beef from Ireland to a high-end retailer in Singapore, where certified Angus striploin steaks are retailing at around €72/kg.

Ryan’s Grocery, will also stock lamb from Irish Country Meats (ICM), ABP’s specialist sheepmeat company, at their two locations in Singapore.

This is the first retail listing for Irish sheepmeat in the Singapore market.

Speaking to Agriland in Singapore, Martin McMahon, general manager of ABP international sales, explained that the beef is flown out fresh from ABP Cahir in Co. Tipperary weekly.

“We started exporting some chilled high-value products to Ryan’s Grocery about three or four months ago and the business is growing,” he said.

ABP is planning to run promotions in the supermarket in the coming months to establish a foothold in the market.

 

By Aisling O’Brien / Agriland

Spanish slaughterhouses will have to install video surveillance to ensure animals are not mistreated before being killed, the government has announced, claiming a first in the EU.

“This rule puts Spain at the forefront of Europe in this area and, as well as ensuring the welfare of animals during their passage through abattoirs, it also improves food safety guarantees for consumers,” said Consumer Affairs Minister Alberto Garzón.

The measure was approved at Tuesday’s cabinet meeting and will now be pushed quickly through parliament for approval.

It has already been agreed with the industry, government spokesperson Isabel Rodríguez told a press conference.

“We will be the first country in the European Union to have a compulsory video surveillance system in abattoirs,” said the consumer affairs ministry of Pedro Sanchez’s left-wing government.

Guillermo Moreno, executive director of Equalia, an NGO that lobbied for the reform, told AFP he was satisfied with what he called “a necessary and important first step to raise animal welfare standards in abattoirs”.

He added that England, Scotland and Israel had already introduced the measure in their slaughterhouses.

Under the Spanish rules, abattoirs will be required to retain the video images for later verification by the authorities.

“Large abattoirs have one year to implement the new standard” with smaller operations granted two years, the ministry said.

 

 

EURACTIV.com 

Walmart is acquiring a minority stake in a rancher-owned, premium beef company to expand its sourcing of sustainable meat, the retail giant has announced.

Terms of Walmart’s deal with North Platte, Nebraska-based Sustainable Beef LLC were not disclosed. But Walmart said the transaction would give the retailer representation on the beef company’s board.

Walmart’s investment will help Sustainable Beef open a beef processing facility at its Nebraska headquarters. The facility is expected to break ground next month and open by late 2024 and will hire more than 800 workers, the company said in a statement.

“At Walmart, we are dedicated to providing high-quality, affordable beef to our customers, and an investment in Sustainable Beef LLC will give us even more access to these products,” Tyler Lehr, Walmart’s SVP of merchandising for deli services, meat and seafood, said in a statement. “We know Sustainable Beef LLC has a responsible approach to beef processing, one that includes creating long-term growth for cattle ranchers and family farmers. This investment provides greater visibility into the beef supply chain and complements Walmart’s regeneration commitment to improve grazing management.”

Sustainable Beef LLC began early in 2021 to focus on vertical integration of beef production, according to an agricultural industry report. The company grew out of supply chain disruptions caused by the pandemic. The new processing plant has a goal of processing 1,500 head of beef per shift, per day, the report said.

The processing facility, located atop a city wastewater lagoon, will cost at least $325 million, the report noted.

“We set out on a journey two years ago to create a new beef processing plant to add some capacity to the industry and provide an opportunity for producers to integrate their business of raising quality cattle with the beef processing portion of the industry and do it in a sustainable manner,” David Briggs, CEO of Sustainable Beef, said in a statement. “During this journey we found that Sustainable Beef and Walmart aligned on continuing to improve how we care for our animals and crops and provide consumers the positive experience of enjoying quality beef.”

 

 

By Heather Lalley / Winsight Grocery Business