European Hog News:

[Mustang Sally Farm]

UFU Warning on the Soaring Price of Grain
NORTHERN IRELAND, UK - The Ulster Farmers’ Union is warning that the soaring price of grain will be the single biggest challenge facing farmers this spring.


Since last spring farmers have seen the price of grain more than double and in this month alone the price of feed rose by £15 per tonne, and further increases are expected in the coming months. While all farmers are facing increasing production costs, the rising cost of feed is hitting pig and poultry producers particularly hard.

Speaking after this week’s UFU Pork and Bacon Policy Committee meeting, UFU President John Thompson said, “Feed costs make up 60 per cent of the cost of production and therefore the rising cost of compound feed has meant that the past few months have been extremely challenging for pig farmers. The situation has become so serious that some pig farmers are now at a crossroads as they consider whether or not to continue on in the business. However, the UFU has urged pig producers to review their own specific cost of production before making any decisions.”

Last week the UFU met with representatives from the NI Grain Trade Association (NIGTA) to raise awareness of the situation facing farmers.

Mr Thompson said, “NIGTA were sympathetic to farmers’ circumstances and have indicated that the high price of grain is the result of a number of global factors. Unfortunately, NIGTA have said that farmers can expect the price of grain and feed to continue to rise in the coming months. The intensive sector is feeling the brunt of rising feed costs at the moment, but this is something that is a concern across all the livestock commodities.”

As production costs continue to skyrocket, the UFU is calling on retailers to recognise the stark reality facing farmers and to ensure they are providing a fair farm gate price that takes into account the current cost of production.

Mr Thompson added, “If retailers want to continue to be able to source high quality raw materials from Northern Ireland, they must take in to account the current reality facing farmers and be prepared to offer a farm gate price that reflects this. The UFU is continuing with its retailer meetings this month in order to raise these concerns and will be strongly urging retailers to respond with sustainable and profitable farm gate prices that will help to ensure future supply.”

[Mustang Sally Farm]

Call for Retailers to Support Scottish Pig Producers
SCOTLAND, UK - NFU Scotland has written to major retailers asking for a renewed commitment to stocking home produced pork and bacon at a time when all pig producers face an unparalleled increase in the price of feed for their animals.
 

The engagement with UK retailers comes at a time when pig meat prices across Europe have collapsed, partly fuelled by the recent dioxin feed scare, leaving an abundance of cheap supplies. The European Commission decision yesterday (24 January 2011) to trigger Private Storage Aid (PSA) as a tool to help tackle the crisis in the sector is welcome but has come at a time when some stores continue to take the opportunity to import and stock non-UK pork.

In a welcome development, the major retailer Asda has indicated that it is to factor rising feed costs into its farmgate prices. A similar price pledge from all retailers, along with a greater commitment to stock home-produced pork and bacon is desperately needed to stabilise and improve returns to pig farmers in the country.

NFU Scotland’s Pigs Committee Chairman, Philip Sleigh said, “The decision to introduce PSA with a view to stabilising the European pig sector is a hugely welcome development and the news that measures may be in place as early as the end of this week recognises the predicament that European producers find themselves in.

“The recent dioxin feed scare has hit pig and poultry producers on mainland Europe hard with significant slumps in consumption creating an overhang on the market that is dragging prices down at a time when costs are flying upwards.

“Here in Scotland, soaring feed prices are hammering the margins being made on our pig farms and UK retailer support holds the key to profitable pig production. When asked, Scottish consumers have shown clear support for Scottish pork and bacon to be available on the shelves and retailers have an opportunity to meet that demand while underpinning the viability of the sector.

“We need all supermarkets to follow the Asda example and better recognise the rising cost of production. We need those same retailers to stand by our producers through this difficult period and not sell them out to cheaper, foreign imports. They have a chance to put the long-term interests of pig production in this country first rather than chasing the short-term gain presented by imported product.

“Retailers can also better recognise the higher welfare standards here in the UK where a ban on controversial sow stalls and tethers has been in place since the beginning of 1999 but will only come into force for other European pig producers at the beginning of 2013.

“Many European producers face the difficult decision of getting out of stalls and investing in the same kind of production systems found in the UK or getting out of pigs full stop. Given the current crash in the market, investment for some will be impossible and Europe should give some consideration to an out-goer’s scheme, so that those in Europe who do not see their future in pigs beyond 2012 have a way out of the sector.”

[Mustang Sally Farm]

Thursday, January 27, 2011
Agriculture Ministers Back Pig Meat Private Storage
EU - European Agriculture Ministers this week backed moves for private stoage of pig meat following a representations from a Belgian delegation about the difficult situation of the pig meat market in the EU.


The comments by the Belgians were a follow-up to the reflection day on “The pig meat sector towards 2020” held on 3 December 2010 in Brussels, during which an initial review of the pig meat market had been drawn up by Member States' experts in the sector.

Since then,the ministers at the Agroicultural Council meeting heard that the situation has further deteriorated, with a strong increase in the price of feed as a consequence of the increase in cereals prices and the dioxin crisis in Germany.

The Commission announced its decision to open support measures for private storage for pig meat.

In addition, an enlarged advisory committee (stakeholders from the sector and national experts) will be convened to evaluate medium-term measures for the pig meat sector Three items in particular were identified for further reflection: intervention measures in crisis situation, insurance systemsand mutual fund, and food promotion programmes for this sector.

The Council welcomed the information provided by the Commission and the establishment of the enlarged advisory committee.

A delegation from Germany also told the Council about the present situation in Germany following thedioxin contamination of animal feed affecting the egg, poultry and pig sectors.

Precautionary measures have been implemented for suspected farms (eggs, poultry and pig production), which were kept blocked until analytical results proved that there was no contamination by dioxin, the council heard.

Criminal action at the source of the crisis could not be excluded and judicial investigations are running. In addition, the German authorities announced a 10 points action plan to prevent the repetition of such contamination in the food chain.

The Commission recalled that this case had not presented any health threat for consumers and underlined that the existing EU food safety framework had allowed for rapid information and reaction.

Harmonised EU information towards third countries had been provided by the Commission to minimise the danger of restrictive measures against European products.

In reaction to the crisis, the Commission will propose four specific preventive actions: a compulsory approval system for the establishments treating fats for animal feed, an improved separation of production streams for fat for animal feed and other fats, stronger monitoring and sampling requirements and a reporting obligation for private laboratories performing dioxin analyses.

Most of the member states thanked the German authorities and the Commission for the prompt and transparent actions taken and welcomed the initiative of the Commission to take further steps to ensure the proper functioning of the EU food safety system.

[Mustang Sally Farm]

Farm Incomes to be 'Slashed' in Downturn
UK - Huge hikes in animal feed bills are driving the dramatic downturn in the incomes being forecast for England’s farmers according to the NFU, as Defra’s Farm Business Income Forecasts for 2010/11 were published.

According to the figures:

Dairy farmers are expected to see a 24 per cent fall in incomes
Grazing livestock farms look set to see farm incomes decrease, compared to the previous two years, with a massive 48 per cent drop predicted for lowland grazing units
Although sustained sheep prices are currently cushioning the drop for livestock producers in less favoured areas, farm incomes are still forecast to fall by a third
Poultry farmers’ incomes could see a fall of six per cent with the average poultry farm seeing less than half the level of income recorded in 2007/08
Pig farmers could also face a huge drop in income. A combination of higher feed costs and lower prices could see incomes for pig farmers fall by two thirds.
However, figures do show a 73 per cent increase in farm incomes in the cereal sector. This year’s positive forecast follows a fall in cereal sector incomes of 34 per cent in 2009/10 when, without Single Farm Payments from the CAP, many arable farmers would have faced losses.

NFU President Peter Kendall said: “In a week where Government was urged to increase food production by its chief scientific adviser Professor John Beddington, to feed a growing world population estimated to reach nine billion by 2050, today’s farm income figures are bitterly disappointing.

“For England’s farmers to play their part in meeting our future food production challenges, they require sustained investment in productive capacity. For many sectors, the indications are that the current returns from farming barely cover the costs of production, let alone provide the cash for re-investing in farming businesses. This is economically unsustainable.

“Farmers cannot carry on producing at little or no profit indefinitely. Like any business they need to turn a profit – and soon.”

NFU senior economic adviser Phil Bicknell said: “Arable incomes are the obvious bright spot yet even these need to be considered in context. The global supply situation has led to stronger grain prices, boosting England’s arable incomes while the headlines focus on the current high prices of commodities. However, it is important to remember that a significant amount of grain will have been sold forward or under contract at prices nearer to last year’s lows in March of £92.50/t rather than the highs of £201/t in January 2011.

“A major consequence of higher cereal prices for agriculture is higher livestock feed costs. While Defra’s forecasts don’t provide a breakdown of input costs, buying feed typically represents the primary cost for livestock farmers and higher grain prices will have exaggerated feed bills still further.

“This situation has been further compounded by a severe lack of fodder crops from last summer and the extended winter feeding needed in 2010 due to bad weather and prolonged winter. Farmers already predicted this increased need for purchased feed and for many these forecasts won’t come as too much of a surprise.

“However rising costs for farming don’t stop at animal feed. NFU members have seen rocketing input costs over the past twelve months across the board from increases to bank charges through to other major inputs costs such as fertiliser.

“Farm gate prices are the other obvious factor impacting on farm incomes and many farmers have seen revenues weaken. Beef prices for much of 2010 were down on 2009 levels, and pig prices spent much of the year under pressure. The NFU has well-documented the situation in dairy where, despite rising global commodity prices, the price paid to farmers for their milk remains painfully slow to increase.”

[Mustang Sally Farm]

Wednesday, February 02, 2011Print This Page
Pig Producers Pile on the Pressure
SCOTLAND, UK - NFU Scotland has met with a leading pig industry official to ensure current efforts to improve the prospects for all pig producers are well co-ordinated.
 

NFU Scotland’s pigs committee met (Monday, 31 January) with Stewart Houston, who chairs both the British Pig Executive (BPEX) and the National Pig Association (NPA) and who also sits on SAC board as a non-executive director.

Ongoing NFUS and BPEX/NPA campaigns are targeting a significant improvement in pig prices to reflect increased feed costs backed-up by calls for a greater commitment from major retailers to home-produced pork and bacon, consistently produced to the highest welfare standards in Europe. The organisations have agreed to regular updates on how the campaigns are progressing.

Speaking after the meeting, NFUS Pigs Committee Chairman Phil Sleigh said: “Speaking with Stewart, it was reassuring that the pig campaign being developed by NFU Scotland’s pigs committee dovetails perfectly with the high level of activity taking place through BPEX and NPA. All parties have clearly told the other parts of the pig supply chain that we are proud of the way we look after our pigs and that we deserve a price that reflects the true cost of producing pigmeat to such high standards.

“We need retailers to better reflect soaring feed costs in their pricing structures, and at the same time to better support home-produced pigs in this difficult period. To that end, we are calling on the public to help ensure that more of our pork and bacon makes its way onto our supermarket shelves.

“To encourage the public to get involved, Scotland now has its own banner campaign, following the huge uptake of a similar NPA/BPEX promotion in England and Wales. The message reads: “Perfect Scottish Pork and Bacon – Made in Scotland”. Backed by the Specially Selected Pork, Red Tractor and Scottish SPCA logos, the banners send out a call to consumers to keep asking for Scottish pork and bacon and we look forward to these banners appearing in prominent sites on roadsides around Scotland in the coming days.

“Last week’s investigation of shop shelves by NFUS clearly showed that in some supermarkets, support for Scottish pork and bacon could be considerably better than it currently is. Stocking Scottish product in favour of imports not only responds to consumer demand but supports and recognises the higher welfare standards that producers here meet.

“As with NPA/BPEX, we have written to major retailers regarding the need to support home produce, to address cost issues and to better recognise the higher welfare standards delivered here and we look forward to a prompt response.

“Wearing his SAC hat, this was also an opportunity for the committee to discuss with Stewart ongoing SAC work in the pig sector. Given the current pressure on margins, it is reassuring that much of that work will help the long-term efficiency of our industry. We will continue to work with Stewart and SAC to ensure such important work benefits grassroots pig farmers in Scotland.”

[Mustang Sally Farm]

Pig Herd Sees Some Stablility
UK - Latest census figures show the total number of pigs in England has fallen slightly but the breeding herd has remained unchanged.
 

Latest census figures show the total number of pigs in England has fallen slightly but the breeding herd has remained unchanged.

BPEX Senior Analyst James Park said though there now seemed to be some stability in the herd that was only part of the picture.

The total number of pigs in England decreased by 1.7 per cent from 3.6 million in December 2009 to 3.5 million in 2010.

But there was no real change in the number of breeding pigs at 415,000 in December 2010.

An 18,000 head reduction in sows in-pig was offset by a 7,000 head increase in gilts in-pig and an 8,000 increase in other sows.

Mr Park said, "The census results indicate that, year on year, the breeding herd remained stable in December 2010 with a continuation of increased numbers of gilts in-pig and other sows offsetting the decline in the sows in-pig population.

"However, these results do not reflect the consequences for the industry of rocketing feed costs and falling prices since last August."









 

[Mustang Sally Farm]

Thursday, April 07, 2011
Recent Successes & Future Challenges for Pig Sector
EU - Farmers' group, Copa-Cogeca, has highlighted measures taken to help improve the drastic situation in the EU pig meat sector, which were called for by Copa-Cogeca and proved successful, and outlined new measures to improve the long-term situation.


The move came after debates in Copa-Cogeca's Pig Meat Working Party. Chairman of Copa-Cogecas' Pig Meat Working Party, Mr Tavares, said: "In view of the crisis which has been hitting the EU pig meat sector since 2007, Copa-Cogeca has been working hard to ensure measures are introduced to relieve the crisis. Feed costs in particular increased sharply recently which hit producers hard as they account for between 60 and 65 per cent of total production costs and producers have been squeezed by high input costs and low prices.

"The EU Commission's decision to temporarily open private storage aid in February for pig meat, which was called for by Copa-Cogeca, helped to relieve the difficult market situation in the short term, as excess supplies were taken off the market. Prices picked up a bit in the main pig meat producing countries. The first meat will come out of storage in May and now we need to ensure that the stored meat will be exported once its put back on the market, in order to prevent prices from dropping again.

"I am also glad that the EU recently agreed on new EU rules to allow imports into the EU of animal feed with traces of unauthorised genetically modified materials up to a limit of 0.1 per cent. We worked hard to ensure this was introduced and it is a step in the right direction. Without it, feed prices would have risen further, costing EU farmers hundreds of millions of Euros.

"We also welcome the Commission's TSE road-map and new draft report by MEP Dagmar Roth- Behrendt which includes the proposal to lift the feed ban for non-ruminants, provided conditions in the TSE road-map, such as validated tests, are respected. We have been urging for this for sometime to reduce our dependence on imported soybean," Mr Tavares stressed.

Copa-Cogeca Secretary-General, Pekka Pesonen, said: "To improve the situation in the longer term, current tools to manage the pig meat market must be maintain and strengthened. Pig meat also needs to be promoted better in EU and non-EU markets. In addition, farmers positioning in the food chain needs to be reinforced, in view of the huge buying power of supermarkets. The EU must enforce existing legislation to prevent and penalise abusive situations and anti-competitive practices. An unfair commercial practices directive must be developed.

"Farmers must also be rewarded for their commitment to ensuring high environmental, welfare and food safety standards and this must be reflected in the final price. Imports must also meet the EU’s high standards. After all, a new study by Copa-Cogeca on an agreement in the trade liberalising talks between the EU and the Latin American Trade Bloc Mercosur shows it would have a devastating impact on the EU agriculture sector and cause a huge rise in pork imports which do not meet the EU's standards," Mr Pesonen warned.

[Mustang Sally Farm]

BPEX Export Bulletin - March/April 2011
The British Pig Executive's (BPEX) Export Bulletin for March/April 2011 reports pig industry trends from around the world, with the focus on the trade show, Alimentaria, which took place in Lisbon recently.
 

Portugal used to be a good market for British pork but Spanish pork now represents more than 95 per cent of fresh and frozen imports and the great majority of processed pork imports, although the UK still exports frozen sausages. Nonetheless, during Alimentaria in Lisbon recently, there was some good demand for pork ribs and offal from Angola, a country with strong links and a common language with Portugal and a major importer of EU meat. A green light is awaited from Defra regarding Angola but traders would still import the product as exporters’ risk as there seem to be a general agreement to allow EU meat in the country.

Denmark
Market
On the European market, fresh legs and loins are sold at increasing prices. As to shoulders and production meat, the trade is stable with unchanged prices. Exports to the British bacon market are fine with increasing prices for the April contracts. For markets outside the EU the situation remains unchanged meaning continuing good activity for the Asian markets in South Korea, Japan and China.
(Sources, Danish Crown, Tican, Danish Agriculture & Food Council)

Effects of the earthquake in Japan
Still it is difficult to evaluate the effects of the earthquake and the tsunami on imports of pork to Japan. Danish Crown was quick to report that there were no changes in the fine demand from Japan. In the US, the immediate reaction to the disasters in Japan was declining prices of pork futures due to American fear that a damaged Japanese infrastructure would prevent meat and other food products from reaching the consumers. Afterwards, the US future prices have adjusted and presently the US expect that Japan now and also on the longer term will need to increase its imports due to the catastrophe.
(Source, Markedsnyt for Svinekød)

Tulip invests in packaging lines
Investments in three new packaging lines ensure that the Tulip canning factory at Vejle has the lowest production costs in the entire group of companies. It is also a prerequisite for keeping jobs in Denmark in the long run, says head of factory, Keld Nielsen. The investments are necessary because the factory cannot keep up with the demand. Today, there are approximately 300 employees at the plant at Vejle, which exports to 83 countries including Japan, Korea, the US and the UK. The plan is to invest €8 million in the new packaging lines during 2011 and 2012. With a capacity of 360 packaged cans per minute, equivalent of 54 tonnes daily, one of the new lines replaces two old ones.
(Source, Vejle Amts Folkeblad)

Danish Slaughterhouses - payments Week 13
Slaughterhouse Danish Crown Tican
Slaughter pigs (70.0-86.9kg)
Difference to last week Euro 1.334
Unchanged Euro 1.334
Unchanged
Sows (Above 129.9 kg)
Difference to last week Euro 0,854
+0.027 Euro 0,854
+0.027
Boars (Above 109.9 kg)
Difference to last week Euro 0.721
+0.027 Euro 0.721
+0.027

France
Fleury-Michon
“The ham segment does not generate impulsive purchases,” claims Patrick Lerüe Head of Charcuterie marketing for Fleury-Michon (FM). The new brands developed by FM should improve the already excellent health of the cooked ham market in France (+3 per cent in volume and value last year compared with 2009). The ‘New fresh’ offer described in the BPEX report a month ago should respond to a demand for authenticity detected by the French leading group. Four ‘kingdoms’ have been re-marketed: hams from our countryside, hams from pigs reared in mountains, prepared hams and organic hams. The new packaging includes crystal trays, with 50 per cent less plastic but 63 per cent paper, with photographs of producers for countryside range, photos of mountains for the mountain range and photos of green countryside for the organic products. Fleury-Michon is the third contributor to multiple’s growth in value behind Nestlé and Procter & Gamble, the group will increase its activity in the charcuterie market and in the prepared meals sector. FM increased its market share of the self-service charcuterie market in value by 16.7 points with 10.7 per cent market share in front of Herta with 10.3 per cent market share and Madrange. Own brands represent 50.4 per cent of the market and hard discount own brands represent 6.9 per cent of this market. The new base line: ‘Obsessed with goodness’ will appear on all products, including prepared meals.

Pigs
They are enough slaughterings to cover needs, both in the export and the French market. With the beginning of spring, the prices of porkers should continue to rise. The increase in the cost of raw materials is always in the news. The cost of the feed is still very important for the breeders.

Piglets
No big changes in the market.

Cuts
Putting aside the normal monthly evolution of the prices of cuts, prices are increasing slightly. Besides, prices may increase if the nice weather settles for any length of time.

Pork prices RUNGIS week commencing 28 March 2011
Cut name Price range (Euro/Kg)
Back fat, rind-on 0.40
Trimmings 1.19
Leg 2.21
Loin including chump 2.93
Loin excluding chump 2.61
Belly extra without trimmings 1.67

Germany
Market
Due to unsatisfactory margins, abattoirs and deboning plants are currently reducing the production of pig meat. Regional promotions offer collars, loins and chops at very competitive prices. Pig meat for processing, however, is marketed at mostly stable prices and sales of ham remain stable thanks to continuous demand from Italy. With the weather being relatively warm already, hopes are set on the barbecue season to start early this year.

Rising consumption
According to the Federal Bureau of Statistics, meat consumption in Germany keeps increasing. On average, every German consumed 300g more meat in 2010 than in the previous year with pig meat and poultry accounting for the highest increase.
(Source, afz)

Pork Prices Hamburg Market Week commencing 28 March 2011
Cut Name Price Range (€ / kg)
Round cut leg 2.25/2.45
Leg (boneless, rindless max fat level 3mm) 3.25/3.40
Boneless Shoulder 2.40/2.60
Picnic Shoulder 2.25/2.45
Collar 2.45/2.60
Belly (bone in, ex-breast) 1.90/2.25
Sheet Boned Belly (rindless) 1.88/2.12
Jowl 1.05/1.20
Half Pig Carcasses U class. 1.92/2.02

Spain
Sánchez Alcaraz business increases by 28 per cent in 2010
The company from Toledo raised its turnover by 28 per cent in 2010 to €31.22 million, a figure double of 2004 turnover, the year before they started business with the German company, Abraham (owned by Bell Holding). The company’s growth is mainly due to the commercial arrangement with Abraham. Sánchez supplies whole pieces and processed ham in blocks, which are then sliced by Abraham. Most of the Spanish deliveries are distributed in Germany – in chains such as Aldi, Rewe and Lidl – and the rest in other European countries (Great Britain, Switzerland, Poland, Holland, etc). In 2010, these foreign expeditions accounted for a volume of 2,639t (2,551t of cured ham from white pigs and 88t of Iberian) compared with 1,856t sold in 2009, giving the company an export turnover of €16.96 million, a 52 per cent more than in 2009 (€11.17 million). Meanwhile, its business in the domestic market is estimated at €14.27 million.

Spanish government to complain at the Council of Ministers
The Government want to put pressure on France for a rapid cessation of French attacks on Spanish pork lorries.

Pork prices Barcelona Market Week Commencing 28 March 2011
Cut Name Price Range (€ / kg)
Carcases (secondary grade) 1,664/1,670
Gerona Loin Chops 2,43/2,46
Loin Eye Muscle 3,49/3,52
Spare Ribs 2,71/2,74
Fillets 5,83/5,86
Round Cut Legs 2,53/2,56
Cooked Ham 2,20/2,23
Rindless Picnic Shoulder 1,60/1,63
Belly 1,85/1,88
Smoked Belly with Spare Rib Section Cut off 2,28/2,31
Shoulder chap or Head Jowls 0,88/0,91
Back Fat, rindless 0,68/0,71

Portugal
The Portuguese pork sector
  2005 2009 Variation
05 – 09 (%)
Production 326,850 373,529 14,3
Imports 104,231 114,316 9,7
Exports 2,770 12,891 365,4
Consumption 428,311 474,954 -10,8

Pork meat production between 2005 and 2008 was very positive but in 2009, the production fell two per cent. There are great contrasts between different operators: some are highly specialised groups and others are small farms. The majority of the breeding farms are located in the regions that are close to large populations (Leiria area, Alto Alentejo, Alentejo Litoral). The degree of self-sufficiency in pork is estimated at 65 per cent, leaning more and more to the need for imports to supply the local market. The production of this kind of meat is highly integrated within the farms but not so much with the slaughterhouses where there is no relevant groups within the sector. Portugal is a country with a large number of quality meats and processed meats. According to the EU records, there are 32 protected geographical denominations for fresh meat and 36 for processed meat (sausages and cured pork meat). In addition, it should be mentioned that in the case of the Iberian pork’s production, the Quality Standard that protects these products also protects the meat and meat products made with raw materials from animals reared in Portuguese pastures.

Demand for pork and places of purchase
The consumption of pork has remained stable. Despite the growth recorded at the beginning of the past decade, has not exceeded 454,000t. This makes the consumption per capita quite stable and is estimated at 43kg per person per year. With regards to places of purchase, retail shops and traditional butchers are the most visited but gradually, sales from supermarkets and hypermarkets are gaining in importance. The main companies in the retail industry are: Soae (Continente, Modelo and Modelo Bonjour), Jeronimo Martins (Pingo Doce and Feira Nova), Grupo Os Mosqueteiros (Intermarché and Ecomarché), Auchan (Pao de Açucar and Jumbo) and Carrefour (Minipreço and Día). There are also other companies engaged in the distribution but specialised in the field of wholesellers, such as Makro and Recheio. There are large groups that own establishments known as ‘entrepostos’. These centres are dedicated to cutting and filleting meat (both for domestic and imported meats) and also serve as logistical points from which they distribute to other commercial supply chains.

Pork is winning market share
Pork consumption is winning against beef and, to a lesser extent, against chicken. Pork is less than half the price of beef in Portugal and just slightly above chicken prices. Pork penetration reached 85.2 per cent in 2010 helped by the low prices of the ever-expanding supermarket chains and cheap imports from Spain. It gained new consumers mainly in the middle and lower classes. The latter eat more meat and meat products than the Portuguese average.
(Source,Kantar).

Price deflation at an end
Food prices are already rising in Portugal following years of retail price deflation and retail price wars due to the general increase of commodity prices. According to analysts, this will not affect fresh food volumes in Portugal but non-food budgets will suffer. For memory, GDP is expected to fall by 0.9 per cent in 2011.
(Source, Kantar).

Who is winning the retail war?
Sonae-Continente wins on confidence, quality and fidelity. Pingo Doce–Jeronimo Martins on convenience and Intermarché with people most affected by the crisis with its low prices. In balance, Sonae is the winner. The combined market share of its two store brands, Continente and Modelo, is 29 per cent, ahead of its competitors Jeronimo Martins with 16.1 per cent and Intermarché with 9.7 per cent.
(Source, Distribuição Hoje).

Pork producers destocking
In Portugal pig producers faced with losses are cutting back their sow numbers. Recently, productivity has increased and, despite the lack of national statistics, the number of 24.5 piglets born alive per sow is now considered the Portuguese average. Producers’ organisations are looking at solutions to the crisis. Much of the blamed is put on supermarkets that are paying their bills at 90 or even 120 days.
(Source, Vida Rural).

Russia
Feed grain in circumvention of the exchange auctions
Vladimir Putin, Prime-Minister of Russia, has signed the resolution on the distribution of feed grain to the animal producers without participation in the exchange auctions. The document states that soft 5th grade wheat and barley will be sold throughout Russian Federation at the price level of $211 per ton (VAT included).
(Source, RBK)

Cherkizovo expects more federal budget subsidies in order to level down negative impact of grain price increase and to secure profitability
The largest meat producer in Russia foresees a difficult year due to increasing primary cost of the products, which cannot be fully compensated by the increase of the final price for the consumers. Mr Putin instructed the Ministry of Finances and the Ministry of Agriculture to take a decision regarding direct subsidy assistance to the producers of pork and poultry within 10 days. According to the information provided in different mass-media sources, it is foreseen that more than $440 million will be allocated to the pig and poultry industry. A similar mechanism of state support was implemented in 2008 when the grain prices significantly increased and Cherkizovo received $33 million from the federal budget.
(Source, Finam)

New outbreak of ASF in Leningrad region
An outbreak of African swine fever on a farm in the Leningrad region has been confirmed on 18 March by the National Research Institute for Veterinary Virology and Microbiology of Russia. Following this confirmation, the Estonian Veterinary and Food Department introduced the ban on the import of pig meat and the products derived from it from Russia.
(Source, meat.info)

Belarus
Belarus to lift temporary ban from the import of meat from Germany
The Ministry of Agriculture of Belarus announced that the ban on the import of pork and products derived from pig meat produced in Germany after 1 November 2011 has been lifted. The import of each batch of the these products should be accompanied by the negative results of the tests on the content of dioxin carried out by one of the certified laboratories in the EU. The temporary ban on the import of live animals for fattening and slaughtering, feed additives (exclusive of chemical and microbiological synthesis) and animal feed is still valid.
(Source, Infobaza.ru)

Sweden
New initiative from Scan Sweden
By adding rapeseeds to the feed, Swedish company, Scan produces pork with more omega-3 fatty acids and less saturated fat. Scan hopes that it will increase the demand for Swedish pork. In Finland, HK Scan researched in fat composition of pork after feeding with a crop closely related to rapeseed, and the result after 40 years of research is a higher proportion of omega-3 fatty acids and a lower proportion of saturated fat. Furthermore, a consumer survey showed that the meat was juicy, tender and easy to cook. So now Scan in co-operation with the Swedish pig producers will develop the rapeseed pig concept. The concept offers many health advantages, which Scan evaluates that the Swedish consumers demand. Scan and its suppliers want to establish competitive advantages that will strengthen and secure Swedish pork. Scan also wants to make its suppliers believe in the future, says Dennis Mattson of Scan. It is planned to produce 200,000 rapeseed-fed pigs.
(Source, Maskinbladet)

Japan
Japan likely to increase pork imports
In private discussions, Japanese operators have told BPEX that the nuclear incident had undermined confidence in Japanese food including pork and that this is likely to lead to higher imports. Meanwhile, domestic pork prices are soaring.

Taiwan
Foot and mouth outbreak
According to an unconfirmed US report, an outbreak of FMD has been detected in the country.
(Source, Pork Network Report)

April 2011

[Mustang Sally Farm]

United Kingdom Pig Meat Market Update - April 2011
James Park, senior economic analyst with AHDB Meat Services Economic and Policy Analysis Group, explains the latest trends in the UK and EU.
 

UK Prices
During the first two months of the year, the DAPP weakened whilst in a number of other EU markets prices were on an upward trend. However, since the beginning of March, the DAPP has shown small but steady increases week-on-week on the back of tightening supply rather than a significant increase in demand. In the week ended 19 March the DAPP rose for third consecutive week to average 135.6p per kg, up over half a penny compared with the previous week. Nevertheless, producer prices are around five per cent lower than what they were a year ago and are two per cent lower than the start of the year. Pig producers are currently losing an average of £22.00 (AHDB MI estimate) on every pig produced; with little sign of conditions improving as the volatility of feed prices likely to undermine any recovery in the DAPP.


Average carcass weights in the DAPP sample remained at around 80kg in the first three weeks of March, one kilo heavier than the year-earlier values. Probe measurements reduced to 11.1mm throughout March, indicating that heavier carcass weights are not having adverse affect on producing lean pigs.

The average weaner price has followed the movements in the finished pig market as the price has slowly crept up since the beginning of March. In week ended 26 March, the average price increased marginally on the previous week to £41 per head. There are reports of a tightening in the supply of weaners in the market place. However, prices continued to be significantly below year-earlier quotations. Similarly to pig market, the weaner trade continued to be affected by increased feed costs.

Following the dioxin crisis, the average reference price for weaners in the EU increased 25 per cent in the eight weeks to 13 March. However, in week ended 20 March, the EU average weaner price was 11 per cent lower than in the corresponding week a year ago.

Exchange Rates and Prices
European pig prices have strengthened throughout February and into the first three weeks of March as markets responded to the private storage aid (PSA). In week ended 20 March, the average EU pig meat reference price at €149.62 per 100kg was more than one per cent higher than the previous week and almost nine per cent higher than the beginning of the year.

Prices in almost all Member States were significantly higher compared with the start of the year as demand in key countries appeared to be strengthening, with the exception of the UK. Prices in Spain recorded the largest increase, up 23 per cent, while prices in the Netherlands rose by 11 per cent since the beginning of the year. Germany and France also recorded improvements in the prices quoted, both increased by 10 per cent during this period.

In contrast, UK was the only major producer to record a decline in price during this period. The price premium which the UK has over the European average dipped significantly from 16p per kg at the start of the year to one penny per kg in week ended 20 March. However, with the UK and EU reference price being closer to parity there should be less incentive for retailers to import cheaper product.


UK Slaughterings and Production
The February slaughter data for the UK suggests that the regional trends were similar to January and show increased slaughterings across all the regions. More than 767,000 clean pigs were slaughtered in the UK in February, nine per cent more than in the corresponding month last year.

Throughputs at abattoirs in England and Wales at 595,000 head were nine per cent higher year-on-year and accounted for 76 per cent of total UK throughputs. Similarly, throughputs in Northern Ireland and Scotland also increased by nine per cent to 123,000 head and 48,000 head, respectively.


During the first two months of the year, clean pig slaughterings in the UK were up by eight per cent to 1.7 million head. Combined with an increase in carcass weights and the increase in throughputs resulted in pig meat production recording a nine per cent rise year-on-year.

In the first quarter of 2011, sow cullings were 13 per cent higher than in the same period in 2010. This incorporates a period where sow prices dropped considerably as a result of the dioxin crisis which occurred in Europe in mid-January. However, prices recovered and increased 10 per cent in March, despite higher supplies, further encouraging pig producers to reduce their herd through better returns for their cull sows.

Total UK exports of fresh and frozen pork in January 2011 totalled almost 10,000 tonnes, down eight per cent year on year. Exports to other EU member states declined by nearly 16 per cent with the largest decline recorded in exports to Germany. Shipments to this primary destination fell by almost 47 per cent year on year, a combined result of the dioxin crisis and poor weather across Europe. Exports to the Netherlands also fell considerably, down 19 per cent compared with same period last year. In contrast, this fall was offset in volume terms by increased exports to Ireland which rose by 13 per cent year on year.

Imports of fresh and frozen pork were three per cent lower in January 2011 in comparison with same month last year. However, imports from Denmark were up 23 per cent, but there was a 19 per cent decline in shipments from the Netherlands. Reduced shipments from Ireland and Germany also contributed to the fall in imports during February.

Feed Prices
On 24 March, prices consolidated after two weeks of high volatility. With the USDA planting and stock report released on 31 March, attention turned to this key part of new-crop information.

According to the International Grains Council’s monthly global supply and demand updates, the global wheat production for 2011/12 is forecast at 673 million tonnes, up by 24 million tonnes in 2010/11, and global maize production for 2011/12 at 841 million tonnes up by 33 million tonnes in the previous season. However, these higher figures are not new to the market as expectations of larger crops remain after the period of higher prices. The USDA report released on 31 March will take greater precedence as it likely to contain information on US maize plantings which will be an important factor in determining the long-term market trends.


In Europe, MATIF wheat was trading at €225 per tonne on the afternoon of 24 March; €1 per tonne lower than that recorded on 21 March; nearby LIFFE wheat in the UK was trading at £194 per tonne some £0.85 per tonne higher than at close of 21 March, with November 2011 trading at £157 per tonne, down £2.25 per tonne from close of business on 21 March. US markets are especially quiet ahead of the publication of the USDA report. CBOT wheat was trading at $263.8 per tonne on the afternoon of Thursday 24 March, down from $264.9 at close on 21 March. CBOT maize was trading at $266.9 per tonne relatively unchanged from Monday’s close of $270 per tonne.

Late news on Friday 25 March involved the sale of one million tonnes of US maize to an unknown destination. Trade sources believe that the destination for the maize was China, which is likely to have an impact on trading at the start of the week commencing 27 March as China is not normally a significant importer of grain.

The nearby European rapeseed market has seen some support in the first half of the last week as the need to ration demand for the old-crop supported the May contract and unfavourable growing conditions in Europe kept the November contract firm. As of 24 March, May MATIF rapeseed had gained six Euros per tonne over the week to trade at €456 per tonne, whilst November 2011 MATIF rapeseed had kept firm trading between €418 per tonne and €419 per tonne over the week so far.

Consumption
Data for the four weeks to 20 March 2011 bucked the longer term trend for fresh and frozen meat and, in particular, the volume of pork purchases. In the four weeks to 20 March, three per cent less pork was purchased than in the same period last year. This was a result of fewer purchases, year on year, of pork loin and leg roasting joints. The reason behind the decline was a result of strong promotions by retailers in 2010. However, purchases of pork steaks were 19 per cent higher than a year ago while belly and chop purchases were also up, by three and six per cent, respectively.

The 12-week period is affected by similar circumstance, with pork volumes purchased down year-on-year with the average price being higher. However, the long term (52-week) period remains relatively strong with increased purchases of pork products.

Relative performance throughout 2011 at retail will be compared against 2010 where there had been strong growth in the pork market at consumer level.



April 2011

[Mustang Sally Farm]

Monday, June 06, 2011
Timely Boost for Scotland's Pig Producers
SCOTLAND, UK - NFU Scotland has welcomed the announcement on Friday (3 June) that the Brechin abattoir in Angus will now be used for slaughtering pigs, as Tulip and A P Jess enter into a long term contract in the East of Scotland.
 

The move will greatly increase the processing capacity for pigs in Scotland to the benefit of both producers and consumers.

Philip Sleigh, Chairman of the NFU Scotland Pigs Committee said: “Today’s news is a timely boost to Scottish pig farmers who have been enduring rocketing costs and poor prices, sending many producers out of business.

“The contract at Brechin should ensure that the majority of pigs produced in Scotland will now be processed in Scotland. And competition for pigs in the market can only be a good thing for producers.

“Of course all pigs being processed in Scotland does not necessarily equate to profitability for the pig sector. We still need a decent return from the market that reflects the high quality and high welfare product we produce.

“Tulip and AP Jess have recognised that processing within Scotland makes commercial sense, and this investment sends a clear signal that the Specially Selected Pork brand is getting the recognition it deserves.”

[Mustang Sally Farm]

Friday, June 24, 2011
UK Slaughter Statistics - June 2011
UK - The latest National Statistics produced by Defra on UK slaughterings of cattle, sheep and pigs were released on 23 June 2011 according to the arrangements approved by the UK Statistics Authority.
 

Key points
Cattle: UK prime cattle slaughterings were 4 per cent higher than in May 2010 at 170 thousand head. Beef and veal production was 74 thousand tonnes, 7 per cent higher than in May 2010.
Pigs: UK clean pig slaughterings were 3 per cent higher than in May 2010 at 718 thousand head. Pigmeat production was 59 thousand tonnes, a rise of 3 per cent on May 2010.
Section 1: UK monthly slaughter estimates
This table shows monthly estimates of the number of cattle, sheep and pigs slaughtered for meat for human consumption in the United Kingdom. The survey is run according to statistical, rather than calendar months, the number of weeks in the statistical month is specified below.

Table 1: UK monthly slaughter estimates
Thousand Head
United Kingdom March 2011
4 weeks April 2011
5 weeks May 2011
4 weeks
Steers 84 100 79
Heifers 65 76 61
Young Bulls 23 28 29
Cows and Adult Bulls 44 48 46
Calves 8 8 6
Clean Pigs 763 891 718
Sows and Boars * * *
* Data are confidential

Section 2: UK average dressed carcase weights
This table shows the monthly average dressed carcase weight of livestock slaughtered for meat for human consumption in the United Kingdom.

Table 2: UK average dressed carcase weights
Kilogramme
United Kingdom March 2010 April 2011 May 2011
Steers 369.2 367.3 368.0
Heifers 321.4 320.9 319.6
Young Bulls 339.3 340.1 344.3
Cows and Adult Bulls 320.4 321.6 321.1
Calves 38.5 42.5 42.4
Clean Pigs 79.0 77.5 77.6
Sows and Boars 145.5 151.1 154.4

Section 3: UK monthly home-killed production of meat
This table shows the monthly volumes of meat produced in the United Kingdom. Data is shown according to statistical, rather than calendar months, number of weeks in statistical month as specified.

Table 3: UK monthly home-killed production of meat
Thousand Tonnes
United Kingdom March 2011
4 weeks April 2011
5 weeks May 2011
4 weeks
Beef 74 86 74
Pigmeat 63 73 59

Section 4: UK average weekly slaughterings
This following table shows the average weekly slaughter figures for the last thirteen months. The monthly slaughter figures in section one are affected by the number of weeks in the statistical month. To get a clearer measure of trends weekly averages are calculated by dividing the number of livestock slaughtered each month by the number of weeks in the statistical month.

Longer term trends can be seen in the charts following this table.

Table 4. UK average weekly slaughterings
Thousand Head
United Kingdom 2010 2011
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Steers 19 18 18 18 21 22 21 18 20 20 21 20 20
Heifers 14 14 13 13 14 15 17 15 17 17 16 15 15
Young Bulls 7 8 8 8 7 6 6 5 6 6 6 6 7
Cows and Adult Bulls 9 9 10 10 11 13 16 11 14 12 11 10 11
Calves 1 1 1 1 2 2 2 1 1 2 2 2 1
Clean Pigs 174 171 171 181 184 190 197 179 181 192 191 178 179
Sows and Boars 4 4 4 4 * * * * * * * * *
* Data are confidential




United Kingdom average weekly slaughtering – Cattle



United Kingdom average weekly slaughtering - Pigs
Section 5: UK slaughterings by country
This table shows monthly estimates of the number of cattle, sheep and pigs slaughtered for meat in England and Wales, Scotland, Great Britain and Northern Ireland. Data are shown in statistical months, rather than calendar months. The totals for the countries may not add up to the Great Britain totals or the United Kingdom totals in section one, due to rounding.

Section 5. UK slaughterings by country
(Thousand Head)
  March 2011
4 weeks April 2011
5 weeks May 2011
4 weeks
England & Wales
Steers 51 62 49
Heifers 38 46 37
Young Bulls 16 19 20
Cows and Adult Bulls 34 37 35
Calves 8 7 5
Clean Pigs 593 688 551
Sows and Boars * * *
Scotland
Steers 20 23 19
Heifers 16 18 14
Young Bulls 2 4 4
Cows and Adult Bulls 4 5 5
Calves 0 0 0
Clean Pigs 49 60 45
Sows and Boars 0 0 0
Great Britain
Steers 71 85 68
Heifers 54 64 51
Young Bulls 18 23 23
Cows and Adult Bulls 38 41 39
Calves 8 7 5
Clean Pigs 641 748 596
Sows and Boars * * *
Northern Ireland
Steers 13 15 11
Heifers 11 12 10
Young Bulls 5 5 6
Cows and Adult Bulls 6 7 7
Calves 0 0 0
Clean Pigs 122 143 122
Sows and Boars 1 0 0
*Data are confidential

[Mustang Sally Farm]

Monday, June 27, 2011
European Pig Herd in Decline?
EU - During difficult periods within the European pig industry, many producers generally react by curtailing production levels by depopulating herds, reducing sow numbers or by exiting the industry, writes David Owens, Meat Division, Bord Bia - Irish Food Board.


This generally results in a decline in pig supplies and a lift in pig prices as per the ‘pig price cycle’. During the last feed crisis, in 2007/2008 production declined across Europe with reductions of over 20 per cent in many Eastern European countries. The more developed pig industries in EU-15 nations, due to the structure of the industry and the level of investment, react more slowly to difficult market periods.


Following only a few months of increased feed costs, last December’s European pig herd census reported a decline in EU sow numbers of two per cent compared to the previous year. Most nations within the EU reported declines in sow numbers, with greater falls evident again in Eastern Europe. The UK survey was in contrast to the rest of Europe with an increase of two per cent in sow numbers.

However, since these census figures were collected, on-farm issues have become much deeper and sow disposals have increased. A more recent April census return from Denmark, reported that sow numbers were down by six per cent with replacement gilts falling by 14 per cent. Sow disposals for Denmark and the UK have increased strongly this year, by eight per cent and 16 per cent, respectively.

For more detailed information on the EU pig herd census, please click here.

Pig supplies in the EU
An anticipated decline in pig production across the EU has been slow to emerge. The EU Commission forecast meeting from last April has indicated that production for the first half of 2011 will be around two per cent ahead of last year, aided by an increase in sow disposals. Looking ahead to the second half of the year they suggested stable output in quarter three with the decline expected to commence in the final quarter. For the year as a whole, production across the EU is forecast to increase by 0.9 per cent.

[Mustang Sally Farm]

Monday, June 27, 2011
Premier's Visit Boosts Poultry & Pork Exports
UK - Britain and China are expected to announce business deals worth UK£1 billion (US$1.60 billion) today, including increased exports of British poultry and pork to China.


Chinese sources say that the deals include the reopening of British poultry exports to China and increased UK pork exports.

The deals will be announced following talks in London today, 27 June, between British Prime Minister David Cameron and Chinese Premier Wen Jiabao, who is in the middle of a European tour taking in Hungary, Britain and Germany.

Deals worth more than UK£1 billion are set to be announced after the talks between Mr Cameron and Mr Wen.

It gave no details but a government source said agreements could be reached in the energy, retail and design sectors.

The two sides are expected to announce the reopening of the Chinese market for British poultry exports, potentially worth £10 million a year, British officials said. China banned poultry products from Britain following an outbreak of bird flu at a farm in eastern England in 2007.

Britain and China will also announce an expansion of trade in pork products, following agreements last November to export British breeding pigs and British pig meat to China.

A further deal to supply 800 breeding pigs will be signed. Five more British farms will be approved to export pig meat to China in a deal worth more than £25 million pounds, Britain said.

Premier Wen's visit is the latest of several recent high-level diplomatic exchanges between Britain and China, including a visit to China by Mr Cameron last November.

Britain wants to double trade with China by 2015 to some US$100 billion, in line with the British government's strategy of expanding business with fast-growing emerging markets to help offset subdued domestic demand at a time of sharp spending cuts.

[Mustang Sally Farm]

Wednesday, June 29, 2011
End to Slaughter Without Stunning Welcomed
NETHERLANDS - Welfare campaigning organisation, Eurogroup for Animals, has welcomed the vote earlier this week by the Dutch Parliament which makes stunning prior to slaughter, including for religious slaughter obligatory in the Netherlands.


This is a step forward for animal welfare as it ends the exemption for religious slaughter where animals are killed fully conscious without stunning on religious grounds and this will alleviate the suffering of up to one million animals in the Netherlands, says Eurogroup for Animals.

The Bill, which received overwhelming support in the Parliament (116 out of 150 votes), is based on the strong scientific consensus that animals rendered unconscious prior to slaughter suffer less than animals bled while fully conscious.

Dr Michel Courat, Policy Officer for Farm Animals at Eurogroup for Animals, commented: "This is a major step forward for animal welfare and we urge all of the 26 other European Union member states to follow the example of the Dutch government. It will however be possible for religious groups to get an exemption, but only when they provide indisputably proof that their alternative method will not cause more harm to animal welfare than pre-slaughter stunning."

The ban is not directed against religious slaughter as such, it only states that religion is not a sufficient reason to let animals suffer unnecessarily, according to Eurogroup. As such it is an invitation to religious groups to explore the boundaries of what their faiths allows and to implement new, innovative animal welfare friendly methods.

Eurogroup has been monitoring the number of animals slaughtered without prior stunning in the EU and is very concerned that the amount of meat coming from animals slaughtered in this way is much higher than the amount required to meet the needs of the religious communities in the EU.

Dr Courat added: "It is a disgrace that consumers are buying meat from animals that have being slaughtered in this way without their knowledge and against their wishes. The Dutch have now sent a very clear signal and the European Commission must act to ensure that in future this is the standard across the European Union."

[Mustang Sally Farm]

Thursday, July 07, 2011
Spanish Hog Markets, June 2011
SPAIN - The Spanish pork market normally runs at its higher prices through spring and the summer seasons characterized for higher consumption pushed mainly by the tourism industry, writes Javier Santamartina, PhD, Genesus Representative in Spain, Italy and Portugal.
 

Pork Price Seasonality was broken this year (Thanks goodness!)
This condition is paired with a poorer hogs offer due to the warmer weather which impacts pigs growing. This scenario has been the standard way of fluctuation over the last 15 years. This trend has been broken this year with a flat price in May and June.

The performance of the price for this year compared to 2009 and 2010 shows us a completely different behavior for the price trend. 2010’s prices moved following the traditional pattern with higher prices occurring in May and in the summer months. The prices decreased around the weeks 32/33 as usual.

On the other hand in 2011 pork prices goes up earlier in the year and keep going through the spring showing no major increases around the week 20 as usual.

Some of the reasons supporting this new reality of the Spanish market as follow: - Lower price of meat in Europe. Spain exports at least 20% to the EU. – Dioxins crisis in Germany decreased pork consumption in this country and affected the continental pork price in Europe, and finally a good portion of frozen has been released into the European markets.From today until the week 33 are expected light increases in prices. After that week it seems like a question mark for the prices. It depends actually on how seasonal effect would impact the market. What I mean by that is if the pork offer will be lower we would have better prices than a year ago.

The packing industry is taken advantage of the decent hog prices today. As we wrote in the previous report the packing industry would be suffering, as usual, in the summer months, because the price is normally (and seasonally) higher. It will not be the case for this year so far. In a way is good for the producers because at the end of the day they are the buyers.

At this point in time the producers are working under breakeven basis and very few of them with light profit margins. The main cloud over their heads continues to be the cost of the grain and everyone is asking what would be the scenario in fall. Nobody wants to predict, simply because there is not crystal ball showing the future. The market has become almost unpredictable and totally volatile. Spain is getting a nice harvesting time right now with good yields for barley and wheat. Unfortunately it hasn’t been the same in Northern Europe; France, the UK and Germany have experienced not exactly a severe drought, but dryer season than average anyway.

The general comments are if the cost of production is going to keep these levels most of the protein production would be affected by liquidation. On the other hand there are people predicting a different picture. They say that today’s market is pretty much like 2008 when higher grain prices at the harvesting time were decreasing in the fall. There are also some measurements to control speculation implemented by the European Community. The new regulations have been directed by French Prime Minister Sarkozy.

Summary
The pork price seasonality was broken this year. May and June prices did not increase, as usual. The key point in swine production in the near future depends basically on the grain prices that highly affect cost of production. The big question is how the market will react after the summer months. Today is a big gap between the hog prices and the pork prices.