European Hog News:

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Pork Retail Sales Stay Strong
UK - Growth continues in retail sale of pig meat products.

 

Retail pork sales are still flying high according to the latest quarterly category report from BPEX, showing the strongest performance of all the red meats.

For the 52 weeks ending on 24 January, fresh pork sales were up 5.6 per cent in volume and 6.6 per cent in value.

Bacon and sausages were also performing strongly with the former showing a 2.8 per cent increase in expenditure while sausages were 6.6 per cent up.

BPEX head of Marketing, Chris Lamb, said: "Pork's impressive performance in 2009 is continuing into the early part of this year.

"Consumers are seeing more value in pork, bacon and sausages and they are taking up a greater and greater share of shopping trolley space across the range."

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Mistreatment of Migrant and Agency Workers
UK - An Equality and Human Rights Commission inquiry has uncovered widespread evidence of the mistreatment and exploitation of migrant and agency workers in the meat and poultry processing sector.



Workers reported physical and verbal abuse and a lack of proper health and safety protection, with the treatment of pregnant workers a particular concern. Many workers had little knowledge of their rights and feared raising concerns would lead to dismissal. While migrant workers were most affected, British agency workers also faced similar mistreatment.

The inquiry uncovered frequent breaches of the law and licensing standards in meat processing factories - some of which supply the UK’s biggest supermarkets - and the agencies that supply workers to them. It also highlighted conditions which flout minimum ethical trading standards and basic human rights.

The British Meat Processors Association (BMPA) has said that practices which the report has found in some parts of the industry are completely unacceptable in a modern food industry and in our society.

Stephen Rossides, Director of the BMPA said that he is meeting with the ECHR this week to discuss the report and aims to engage with other relevant agencies and the industry to address the important issues raised.

The inquiry also found examples of good practice with firms treating permanent and agency workers of all nationalities with respect. These firms benefitted as a result, by being able to attract and retain well motivated, loyal and increasingly skilled workers.

The inquiry, which was launched in October 2008, examined the employment and recruitment practices in the sector to identify differences in pay and conditions between agency and temporary workers and employees with permanent or directly employed status.

One third of the permanent workforce and over two thirds of agency workers in the industry are migrant workers. At one in six meat processing sites involved in the study, every single agency worker used in the past twelve months was a migrant worker. This is in part due to difficulties in recruiting British workers to what is physically demanding, low paid work. It may also be due to perceptions amongst employers and agencies that British workers are either unable or unwilling to work in the sector.

More than eight out of ten of the 260 workers that gave evidence said that agency workers were treated worse than directly employed workers. Seven out of ten workers said they thought they were treated badly in factories or by agencies because of their race or nationality.

Physical and verbal abuse were not uncommon, with a fifth of workers interviewed reporting being pushed, kicked or having things thrown at them by line managers; over a third of workers interviewed said they had experienced, or witnessed verbal abuse, often on a daily basis. Workers also reported being refused permission to take toilet breaks, and subsequently urinating or bleeding on themselves at the production line.

A quarter of those interviewed said they had witnessed mistreatment of pregnant workers, such as the instant dismissal of agency workers who had announced they were pregnant. Pregnant women were also forced to continue to undertake work that posed risks to their health and safety, including heavy lifting and extended periods of standing.

Despite finding their experience in the workplace distressing and degrading, nearly one third of workers endured this treatment without complaint both because of fears that their work would be terminated as a result and that it would affect their goal of securing stable employment. These workers also had little knowledge of their rights or how to make complaints.

Conversely, the Commission found examples of firms who treated workers, both permanent and agency, of all nationalities with respect and dignity. The supermarkets have an important role in supporting and monitoring their suppliers. However, the findings from the inquiry clearly show that the ethical auditing systems used by supermarkets are not uncovering the mistreatment and that more action is needed.

Recommendations

As a result of the inquiry, the Commission is making a number of recommendations. These include:

Processing firms and agencies to use fair and transparent recruitment practices and provide workers with a safe working environment free from discrimination and harassment, where they are able to raise issues of concern without fear of the consequences.


Supermarkets to improve their support to and auditing of suppliers


Government to provide sufficient resources for the GLA to deliver on its task of safeguarding the welfare and interests of workers and broaden its remit to include other sectors where low-paid agency workers are at risk of exploitation
The Commission will review action taken over the next 12 months by supermarkets, processing firms and recruitment agencies, and will consider taking enforcement action if necessary.

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United Kingdom Pig Meat Market Update - June 2010
James Park, senior economic analyst with AHDB Meat Services Economic and Policy Analysis Group, explains the latest trends in pig production in the UK and European Union.

 

UK Prices
The upward trend in the DAPP recorded since the beginning of the year has gained further momentum in recent weeks. This was largely as a result of firm domestic demand for pork relative to other red meats combined with some changes in consumer purchasing habits which have aided firm pig market conditions. The DAPP rose consistently throughput April and into May. In week ended 15 May, the DAPP was quoted at 145p per kg, an increase of seven pence since the start of the year, although producer prices remain seven pence lower than the corresponding week a year ago.


The average carcass weights of pigs in the DAAP sample averaged just over 79kg in April and fluctuated around 79kg in the first three weeks of May, almost one kilo heavier than the same period a year ago. Probe values reduced to below 11mm throughout April and remained around 11mm for the first three weeks of May, indicating that heavier carcass weights are not having an adverse affect on producing lean pigs. In week ended 29 May, the average carcass weight reduced to below year-earlier values for the first time since January and the average probe measurement reduced to 10.6mm. The indication is that although throughput is being maintained and the effects of challenging temperatures in January are filtering through the industry.

Following price increases in the sow market during the first quarter of this year, the average sow price reduced in April to 98p per kg, 18 per cent lower than a year ago. The sow price in week ended 15 May eased to 97p per kg, five pence higher than the start of the year, but three pence lower than the beginning of April. Germany, Denmark and the Netherlands all experienced a weakening in the price of sows in first two weeks of May. Although prices have fallen marginally since mid-March the German sow price in week ended 15 May was €1.11 per kg (95p per kg), four per cent higher since the turn of the year. Danish sows achieved €0.90 per kg (77p per kg) in the same week, over 23 per cent higher than in early January. Over the same period sows in the Netherlands also increased by 23 per cent to reach €0.95 per kg (82p per kg).

Improved finished pig prices have been reflected in higher prices on the spot weaner market and since the beginning of the year the weaner prices have also continued to rise on weekly basis. The 30kg GB weaner price increased to £55 per head in week ended 22 May, £5 higher than the start of the year. However, it was over two per cent lower than the corresponding week a year ago.


The economic challenges within some of the Euro-zone countries have resulted in further sharp falls in the euro against both the dollar and sterling in recent weeks. The Euro is now at its lowest level against the dollar since April 2006. In week ended 20 May, the Euro depreciated to below US$1.22 compared with $1.50 last autumn before the decline set-in last December. Sterling has shown a small strengthening against the Euro but is under some pressure against the dollar, not helped by ongoing concern about UK government borrowings and budget deficit. On 19 May, the Euro was worth 84 pence down from 90 pence in mid-March.

The EU pig reference price increased five per cent to €138 per 100kg dw in four weeks leading up to 16 May, three per cent lower than the corresponding week a year ago. In sterling terms, the EU pig price increased by two per cent to 119p per kg, as a gain in the value of the sterling softened the rate of increase.

In the week ended 16 May, the average EU reference price rose by almost two per cent compared with the previous week. Prices in Denmark and Spain increased by three per cent while the Polish price was five per cent higher than the week earlier. Over the same period, prices in Germany rose by two per cent.

UK Slaughterings and Production
Despite the adverse weather conditions earlier in the year, UK clean pig slaughterings totalled 854,000 head during April, seven per cent higher than that recorded in the corresponding month a year ago. However, the effects may have been seen in terms of reduced carcass weights and lower probe measurements. Throughputs at abattoirs in England and Wales were almost seven per cent higher and throughputs in Northern Ireland were considerably higher, up 18 per cent to 141 ,000 head, compared with the same month last year. In contrast, throughputs in Scotland were seven per cent lower in April than the same month a year earlier.


Cumulative UK clean pig slaughterings in January-April were 3.1 million head, nearly six per cent more than in the same period of 2009. Sow slaughterings in the UK totalled 77,000 head during the period, an increase of almost ten per cent compared with the corresponding period a year earlier.

GB sow cullings were 10 per cent higher to mid-May than at the same point in 2009. The UK sow market remained heavily driven by exchange rates and the international market which has been relatively static since the start of spring.

UK pig meat production during April totalled 70,000 tonnes, nine per cent higher than last year. Higher throughputs, combined with heavier carcass weights have resulted in pig meat production increasing during the first four months of 2010, up eight per cent to almost 257,000 tonnes.

In Great Britain, sow prices in Euro terms increased by almost 10 per cent between January and late-February but have since stabilised at prices not significantly different from Germany at €1.12 per kg, and 27 per cent higher than last year. In pence per kg equivalent however, there has been no stabilisation and prices have continued to fall to 96.59 pence per kg due to the further weakening of the GB sterling, representing a reduction of 15 percent to corresponding 2009 prices.

Feed Prices
In the US on 16 May, around 87 per cent of maize was planted for harvest 2010, some 16 per cent ahead of planting at the same point in 2009. The early planting will encourage good crop establishment. However, weather over the key yield forming month of July remains critical to the size of the crop.

The first forecast from the US Department of Agriculture (USDA) for 2010/11 maize production puts world output at a record of 835 million tonnes, some 27 million tonnes above the previous season. Feed demand is forecast to be 493 million tonnes, 11 million tonnes higher than the previous season. In the US, maize demand for use in ethanol production is forecast at 116.8 million tonnes rising by four million tonnes as higher Federal mandates for inclusion and strong blending incentives increase usage. Given the forecast of higher production and the generation of a surplus in 2010/11, global maize ending stocks are forecast to increase to 154 million tonnes, some seven million tonnes above the estimated ending stocks in 2009/10.

Maize remains the dominant driver in global markets, as the supply and demand balance is relatively tight, as opposed to wheat, which is expected to record 198 million tonnes of ending stocks in 2010/11, the highest for a decade. With regards to global production, wheat production is estimated to be down eight million tonnes at 672 million tonnes which, if achieved, will be the third largest global wheat harvest recorded. This reduction in output globally may seem positive, but total availability of wheat may actually increase in the 2010/11 season due to the expected 193.3 million tonnes of stocks being carried in to the new season. Total availability (opening stocks + production) of wheat in the 2010/11 season at current estimates equates to 865.5 million tonnes, some 20 million tonnes above the estimated availability in the 2009/10 season.

Currency markets have had a major bearing on the UK market over the past month. The election, and subsequent uncertainty, had the effect of causing a volatile euro-sterling exchange rate. As such the market was unsure of direction and new-crop Nov-1 0 LlFFE futures have been trading in a range of £1 04-£1 08 per tonne in the past two to three weeks.


In the physical markets in the UK, the average UK ex-farm feed wheat value was at £100.0 per tonne as at 13 May, up £6.20 per tonne from the average ex-farm price a month previously on 15 April. In the latest HGCA feed ingredients price survey, on 14 May, FEMAS soyameal, ex-mill Liverpool, was quoted at £326.50 per tonne for May delivery.

Consumption
In April, the average producer price of pigs rose by one per cent compared with March, although this was three per cent lower than in April 2009. In contrast, retail prices for pork eased month-on-month. As a result, there was a fall in the spread between the producer and retail pork price to 60.5 per cent. This meant that in April the proportion of the retail price producers received continued to edge towards 40 per cent. In April last year, producers received just over 40 per cent of the final retail price. The average retail price for bacon increased in April, returning to similar values to those recorded in February, following low quotations during March. Producers received approximately 31 per cent of the retail bacon price in April, compared with 32 per cent achieved in the same month last year.

The average retail price for boneless shoulders recorded the largest month-on-month price rise between March and April, up four per cent to 531p per kg. The increase in the retail price of fillet end leg was less marked, up one per cent to 620p per kg. In contrast, the price of boneless leg joints fell by three per cent to 622p per kg. The price of minced pork has been relatively stable over the last few months and week ended 8 May was 470p per kg.

Data from Kantar Worldpanel indicates that household purchases of pork over the four-week period ended 16 May 2010 were up eight per cent on the same period in 2009. Value of fresh and frozen pork purchases decreased five per cent. There was a significant increase in the quantity of pork belly purchased in the four weeks to 16 May compared with a year earlier. This appears to be the result of promotions during April as the price differential in the period was down marginally relative to the quantity purchased and value of expenditure. The increase in belly purchases appears to have been in preference to roasting joints.

The retail market appears to be, as ever, continually dynamic in order to maintain market share and customer numbers through the provision of special offers and promotions.



June 2010

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It Was a Buyer's Market Today
UK - A quiet day's trading with most contract buyers having enough pigs in the system to meet what was described as patchy retail sales and although the recent heatwave has boosted demand for parts of the pig, the loin remains hard to sell, writes Peter Crichton.

As a result, the spot sector was more of a buyers' market and most of those out shopping were able to agree deals in the 142–144p range, but some warmer-hearted types were prepared to pay a penny or two more than this but often on a tighter spec.

The DAPP has held almost unchanged at 147.27p but could ease back in the weeks ahead, although one bit of slightly more positive news is that pig numbers appear to be tight with the hot weather slowing down growth rates.

The euro closed the week marginally firmer worth 83.6p, up from 82.9p only seven days ago.

Unfortunately, this did nothing to lift the gloom in the cull sow sector where prices have generally eased by a further 2p with quotes of between 92p and 96p on a collected/delivered basis. Following the suspension of slaughtering at A. and G. Barber, an extra 1,000 sows were looking for space with the two remaining export outlets in Britain, who are selling to a lack-lustre European mainland sow market.

A return to a more competitive situation in this sector would be welcomed, and a few more baskets to put all our eggs in.

Weaner prices have also eased reflecting a combination of rising feed prices caused by the drought and indifferent finished pig prices forecast over the next 10/12 week period.

The latest Agriculture and Horticulture Development Board 30kg ex-farm weaner average has dropped again to £53.23 per head, although this still probably represents a better return for the breeder than the finisher.

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United Kingdom Pig Meat Market Update - July 2010
James Park, senior economic analyst with AHDB Meat Services Economic and Policy Analysis Group, explains the latest trends in pig production in the UK and European Union.

 

UK Prices
The deadweight average pig price continued to rise in May and into June. However, by the third week of June the price stabilised and actually recorded a marginal fall. The slow-down in the increase in the DAPP has matched the trend experienced in 2009 although not to the same extent with current prices five per cent lower than a year earlier. The DAPP sample has reported carcase weights of just over 78kg in recent weeks following a sharp decline which occurred in May from over 79kg. This coincided with a reduced probe measurement which has, since mid- May, returned to around 11mm.

The weaner market in Great Britain has been firm so far in 2010 with prices increasing in the first five months of the year. This largely reflects the good finished pig market. However, as with the finished pig market the Great Britain weaner price is no longer above year earlier levels.


The June average of £54.32 per head is five per cent lower than in June 2009, which is similar to the year-on-year reduction in the finished pig price. However, compared with January 2010, the weaner price in June was nine per cent higher. During June, the weaner price levelled out and this trend could well continue in the coming weeks given that the finished pig price is becoming more stable.

In the first six months of 2010, throughput of the main companies handling weaners was well above the volumes of a year earlier and demand in recent months has been reported as good. Some shortages of weaners were reported earlier in the year, which may have contributed to the price increases. Despite this, increasing availability of weaners is expected given the three per cent rise in UK breeding pig numbers, as shown by the December 2009 survey, and increases in piglets reared per sow. The December 2009 survey also showed that the number of piglets was four per cent more than a year earlier.

Exchange Rates and EU Prices
European sow prices increased in early 2010, peaking in mid-February. However, since the start of spring, prices have tended to stabilise and remain below those of the same time last year.

In Denmark, sow prices are approaching 30 per cent higher than at the beginning of the year, but remain four per cent lower than mid-May in 2009. Despite slaughterings being 35 per cent lower in January 2010 than January 2009, sow cullings to mid-May increased and are currently only one per cent lower than in mid May 2009.

In Germany, prices rose by over 10 per cent between January and mid-February but then decreased until late March. Prices have since stabilised around €1.13 per kg, at almost 10 per cent lower than the same period 2009. Sow cullings have remained at similar numbers to 2009, with very little deviation.

The Netherlands has experienced similar price increases in 2010 but with less variation. Prices are currently at 10 per cent higher than 2009.

In Great Britain, sow prices in euro terms increased by almost 10 per cent between January and late-February but have since stabilised at prices similar to Germany. In week ending 22 May 2010, prices were €1.12 per kg, 11 per cent lower than last year. In pence per kg equivalent, prices have continued to fall. As of week ending 22 May 2010, the price had fallen to 97 pence per kg due to the further weakening of the euro, representing a reduction of 15 per cent, compared with a year earlier.

Over the course of the last month, the EU pig reference price has increased by five per cent compared with a month earlier. However, the average monthly price of €139 per 100kg was more than three per cent lower than 12 months ago. In a number of member states, the differential in the monthly average price between May this year and the corresponding month last year is negative. In Germany, prices were down almost three per cent on the year, as too were prices in the Netherlands whilst prices in France were over two per cent lower than corresponding month a year ago. In contrast, in Denmark, pig prices increased by almost four per cent in May compared with a year earlier and were firmer in Spain and Italy.

The EU reference price has increased significantly in June with rises recorded in all major pig producing countries of Europe.


UK Slaughterings and Production
UK clean pig slaughterings totalled 690,000 head during May, 11 per cent higher than in the corresponding month a year ago. In the first five months of the year, clean pig slaughterings in the UK increased by seven per cent year-on-year to 3.8 million head.

Sow slaughterings in the UK totalled 16,000 during May, an increase of 12 per cent compared with the corresponding month a year earlier. In the year to date, sow cullings are up 10 per cent.

UK pig meat production during May totalled 57,000 tonnes, 12 per cent higher than last year. For most of 2010 average clean pig carcase weights have been approximately one kilogram higher than last year.

Increased slaughterings and carcase weights have resulted in nine per cent increase in pig meat production to 315,000 tonnes over the period January to May 2010.

The latest trade data indicates that UK exports of fresh, chilled and frozen pork in the first four months of 2010 increased by 22 per cent compared with a year earlier. The value of exports has increased by 25 per cent over the same period to over £45 million. With increased availability exports in April alone increased by 42 per cent compared with April 2009. The Netherlands increased deliveries from 960 tonnes in April 2009 to over 2,500 tonnes in April 2010. Their primary requirement is for bellies and shoulder cuts. Although there have been increased volumes exported to the EU, there has been a 14 per cent reduction in trade with non-EU countries between January and April compared with the same period a year earlier.

UK imports of fresh, chilled and frozen pork reduced by 12 per cent in the first four months of the year, largely due to imports from Denmark falling by almost 15,000 tonnes during the period. During April alone, Denmark exported 26 per cent less pork to the UK than in the same month last year. As a result, imports from Denmark accounted for only 22 per cent of all UK imports in April, compared with 24 per cent in the same month 2009. Reduced shipments from Germany and Spain also contributed to the reduction in imports into the UK over the first four months of the year. Despite a notable reduction in the volume of product delivered there has only been an eight per cent reduction in the value of pork imported to the UK.


Feed Prices
At this point in the year, the majority of the Northern Hemisphere wheat crop will be forming yield. With approximately 80 per cent of global production going through the same growth stages, the weather over this period can greatly affect the yield and quality of grain crops. Global markets will react accordingly to any weather event that is seen to have either a positive or negative impact upon final production.

Rains across much of west, central and eastern Europe over recent days are seen to have benefited wheat crops by adding to soil moisture. However, there have been reports of some localised flooding. Soil moisture across Europe is seen to be adequate for the current wheat crops needs. European trade organisation COCERAL have made reductions to their forecasts for the main grain and oilseed crops in the EU for harvest in 2010. COCERAL estimates that in 2010 the EU will produce 132.2 million tonnes of soft wheat, down from 133.5 million tonnes made in the previous estimate in March. However, the estimate for 2010 production is above 2009 output of 130.7 million tonnes.

COCERAL has also released estimates for individual countries. The forecast for UK wheat production in 2010 is put at 15.88 million tonnes, which is well above the 14.3 million tonnes estimated for production in 2009. Markets across Europe are awaiting more information on the size and quality of the European feed grain crop before finding a direction.

Internationally, rains across Canada have dominated markets as flooding and poor soil conditions led to planting being at a virtual standstill. Production estimates are now 30 per cent below 2009 at 18.9 million tonnes for 2010 harvest. In the US, dry weather has led to some concerns over the developing maize crop, however a recent USDA crop progress suggests that 75 per cent of the crop is in a good or excellent condition (on 20 June) compared to 70 per cent a year previously.

In the UK, prices have been under pressure from a stronger sterling against the euro, making UK exports less competitive into European destinations. Nearby LIFFE wheat futures have fallen from £105.90 per tonne on 28 May to £98.50 per tonne on 23 June. Physical prices have followed with spot East Anglia delivered feed wheat down from £109.50 per tonne at the end of May to £103 per tonne on 18 June.

A recent HGCA feed ingredients price survey put FEMAS soybean meal, ex-mill Liverpool, for August delivery at £284.50 per tonne. Spot FEMAS soybean meal was quoted at £288 per tonne. The soybean meal market has been under pressure from heavy supplies of soybeans from South America, strong demand for beans from China and a positive start to the US soybean growing season.


Consumption
The producer pig price rose by one per cent between April and May, while the average retail pork price fell by a similar amount in the period. As a result, during May, the proportion of the retail price which producers receive edged over 40 per cent. In May last year, producers received almost 42 per cent of the final retail price.

The average retail price for bacon fell during May following higher quotations in April. Producers received over 33 per cent of the retail price in May, compared with 32 per cent achieved in the same month last year.

In the four-week period ended 16 May, households purchased eight per cent more pork than a year ago. As a result of strong promotional activity, combined with some shift in consumers' buying patterns, there was a significant increase in household purchases of shoulder roasting joints and loin roasting joints, up by 62 per cent and seven per cent, respectively. There is some evidence that consumers have substituted beef and lamb with pork, particularly in the roasting cuts. In the four weeks ended 16 May, purchases of pork belly were up 32 per cent.

Household expenditure on pork increased by three per cent year-on-year to £66 million. Expenditure on shoulder roasting joints increased by 38 per cent compared with the same period a year ago, whilst spending on loin roasting joints was almost four per cent higher. Consumer purchases of bacon also soared in the latest four-week period, volume purchases increasing nine per cent year-on-year. During this period, consumers spent £93 million on bacon, almost four per cent more than in the corresponding period in 2009.



July 2010

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Meat Consumption and Prospective Weight Change
UK - Meat intake may be related to weight gain because of its high energy and fat content, according to research conducted at Imperial College.



The study, which appears in the American Journal of Nutrition, states that Some observational studies have shown that meat consumption is positively associated with weight gain, but intervention studies have shown mixed results.

The objective of the study was to assess the association between consumption of total meat, red meat, poultry, and processed meat and weight gain after 5 y of follow-up, on average, in the large European population who participated in the European Prospective Investigation into Cancer and Nutrition–Physical Activity, Nutrition, Alcohol, Cessation of Smoking, Eating Out of Home and Obesity (EPIC-PANACEA) project.

A total of 103,455 men and 270,348 women aged 25–70 y were recruited between 1992 and 2000 in 10 European countries. Diet was assessed at baseline with the use of country-specific validated questionnaires. A dietary calibration study was conducted in a representative subsample of the cohort. Weight and height were measured at baseline and self-reported at follow-up in most centers. Associations between energy from meat (kcal/d) and annual weight change (g/y) were assessed with the use of linear mixed models, controlled for age, sex, total energy intake, physical activity, dietary patterns, and other potential confounders.

Total meat consumption was positively associated with weight gain in men and women, in normal-weight and overweight subjects, and in smokers and nonsmokers. With adjustment for estimated energy intake, an increase in meat intake of 250 g/d (eg, one steak at {approx}450 kcal) would lead to a 2-kg higher weight gain after 5 y (95 per cent CI: 1.5, 2.7 kg). Positive associations were observed for red meat, poultry, and processed meat.

The results suggest that a decrease in meat consumption may improve weight management.

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BPEX Export Bulletin - July 2010
The British Pig Executive's (BPEX) Export Bulletin for June/July 2010 reports pig industry trends from around the world.

 

British pork exports for the first four months of the year rebounded as expected to 41,933 tonnes (+25 per cent on 2009). All main destinations are up.

Traders are reporting increasing difficulties with the re-export of meat from Hong Kong to mainland China. Many cold stores are said to be full. The tightening by Chinese authorities results from the finding of a haul of 120kg of drugs in one container.

Denmark
Market
European fresh meat markets are under pressure. Thus, everywhere it is very difficult to sell at the present prices. However, there are no reports on prices decreases yet. Especially the leg markets are under pressure and there are reports on slightly decreasing prices. The Danish exporters explain the decreasing prices of legs by the fact that they are unable to sell these products on third country markets. Accordingly, it is expected that prices will be sagging over the next period. Other cuts are traded at unchanged prices. The UK bacon market remains unchanged. The same applies for exports to third country markets. The prices in China have been under pressure due to imports through Hong Kong and Vietnam being closed. The closure did not directly affect the Danish exporters but the market has been affected on liquidity due to many stranded containers.
(Sources, Danish Crown, Tican, Danish Agriculture and Food Council)

Prognosis points at rising pork prices
New forecast made by Agriculture & Food predicts higher prices for pork than previously expected. The average quote is now expected to be €1.26 per kg. or seven Euro cents more than the slaughterhouses paid last year. Compared to the latest forecast of the quote made three months ago, the upward revised expectations equals extra income of €33,000 for a typical pig producer with an annual production of 10,000 slaughter pigs. Now Agriculture & Food expects that the aggregate economic result for a farmer having both piglets and slaughter pigs will be €0.70 in profit per pig, and the president of the organisation's pork activities, Lindhart Nielsen, sees the better prospects as a signal to among others, the financial sector, that investments and consolidation in the agricultural sector will increase again.
(Source, Borsen)

Swedish criticism of Danish pig feed
In Sweden, a general anger has developed due to the fact that blood and fat from pigs can be used in feed for pigs. The Swedish Minister for Agriculture calls it ethically offensive; however, the issue is not discussed elsewhere in the EU. When BSE shook Europe in the 1990s, meat and bone meal was prohibited in feed for e.g. pigs. Blood and fat from pigs were never covered by the regulations. In Sweden, large producers like Scan and other companies in the meat industry made agreements to keep blood and fat away from animal feed on ethical grounds. But much of the feed is imported from Denmark and Germany where this type of feed is used. In Denmark, this type of feed is manufactured by Daka.
(Source, Landbrugsavisen)

Danish Slaughterhouses - payments week 26
Slaughterhouse Danish Crown   Tican
Slaughter pigs (70.0-86.9 kg)
Difference from last week €1.389
Unchanged   €1.389
Unchanged
Sows (Above 129.9kg)
Difference from last week €0.895
Unchanged   €0.895
Unchanged
Boars (Above 109.9kg)
Difference from last week €0.761
Unchanged   €0.761
Unchanged

France
Prestor No. 3
The group of producers presided by Guillaume Roué has joined with two other groups of producers in Brittany to become the third group of producers in France. Cooperl remains number one in front of Aveltis. With 800 producers, Prestor collects and sells 2.4 million pigs per year. Prestor and Cecab also control almost 70 per cent of the Gad group (slaughtering and processing) presided by Loïc Gad.

Clitravi
Robert Volut is the new President of Clitravi, the European association of meat processors representing 27 national Federation of meat processors. Clitavri represents 560,000 employees and a turnover of €66.3 billion. The President of the Charcuterie federation (FICT) in France is now an essential interlocutor of the EU Commission and the European Parliament, he will also be a key spokesperson to producers associations, distributors associations and consumers associations.
For more information, please contact AHDB France on 00 33 1 60 71 04 49.

Germany
Market
The European markets for slaughter pigs have been very inconsitent. While in some memberstates prices remained unchanged quotations in Germany, Austria, The Netherlands and Belgium dropped. The most significant decrease was reported in Germany and Austria where prices fell by eight Euro cents due to continuosly difficult sales of cuts. However, a reduction in prices is not unusual at this time of the year and prices are expected to recover and at least remain unchanged over the next week.
(Source, ISN, Landwirt.com)

Re-affirmed forecast
Due to the shoppers' ongoing desire to spend their money despite the governments' economy measures as well as due to the positive effects of the football World Cup, the German retail industry still expects stable profits in 2010. Turnover is expected to reach last year's level of €400 billion.
(Source, afz)

Standardisation of carbon footprint needed
As part of its 'Carbon Footprint' and sustainability project, Westfleisch does not intend to impose constraints on pig suppliers. According to Jörg Bartel, in charge of Westfleisch's quality management, the carbon footprint must not be considered a competitive tool but every company should aim to optimise its carbon dioxide emissions in order to identify changes and proof improvements. Of particular importance should be the implementation of standardisation in the calculation of the carbon footprint as there are currently no binding guidelines for agriculture, animal husbandry and feeding. In particular, in the field of by-products being used as feedstuffs, there is still ample freedom as to the calculation undertaken – protein of animal origin derived from by-products could, for instance, be attributed a positive impact. In order to achieve comparable and consistent results, system boundaries for calculation as well as for evaluation would need to be clearly defined. Mr Bartel stressed that, as a mission statement, Westfleisch have set a comprehensive definition of sustainability with carbon footprint just being one part of it.
(Source, topagrar)

The Netherlands
Proviande bankrupt
Proviande is the latest Dutch company to go into bankruptcy. Van Rooi is taking over the concern with its 140 employees in its two plants of Gieten and Leek. Proviande retail packs for Dutch supermarkets and restaurants chains. Its operates a complete supply chain for under its top pork brand Porc d'Or. (Vlees Magazine on line)

Belgium
Flemish pork promotion
Vlam, the Flemish food marketing body is planning to spend €5.6 million on meat promotion over the next three years, a third of which will be funded by the EU.

Spain
ElPozo promotes 'Bienestar'
From 1 July, ElPozo launches a new campaign on national television for cooked ham 'ElPozo Bienestar' (Bienestar means well-being in Spanish).

ElPozo will open its new plant for cooked ham in late 2011
ElPozo Alimentación has planned to launch in late 2011 its new cooked ham and comminuted products plant. The plant suffered a fire on 15 January, just months before of their chosen date for its official opening. Some 18,000 square metres was affected by the fire. The total cost for the reconstruction is of €90 million for a combined area of 50,000 square metres. ElPozo achieved sales of €622 million in 2009, an increase of 1.3 per cent over the previous year €614 million, and has 3,500 employees.

The Jamón Serrano's Fundation works to improve the Serrano ham image
The Foundation has taken on the task of enhancing the image of Serrano ham with various promotional activities. Sought by the disclosure and the participation of expert nutritionists, dieticians, chefs, etc., the objective is to remove some myths about the ham, in relation to its nutritional profile, and to assist and advise consumers how to cut and use the product.

Russia
Top 10 pork producers produced 367,000 tonnes of pork in 2009
According to Inventica company, this accounts for 36 per cent of the industrial pork production and 12.9 per cent of the market share in general (including all types of producers and imported meat). The top five largest producers include the Group of Companies Miratorg, Agro-Belogorye Ltd, PRODO Management Ltd, Cherkizovo Group and OJSC Belgorodskiy Bekon. A total production volume of above-mentioned companies adds up to 266,900 tons of pork in carcass weight. The share of the market leader Miratorg Group of Companies equals 7.4 per cent of overall pork production.

Miratorg new plans
Miratorg holding includes 10 automatically controlled pig complexes. In 2010-2012, the company plans to launch nine new pig complexes, of which five are currently under construction. The capacity of new complexes will allow the company to secure a 5.7 per cent share in carcass weight or 10.6 per cent in overall volumes of the pork produced in Russia.

Ukraine
Kalita secures new loan
The large integrated concern Kalita Group of Companies, part of an agricultural holding Sagro, received an unsecured loan totalling €2.3 million. The cheap loan from Crédit Agricole will allow the purchase of the pig rearing equipment manufactured by a French company I-TEK Elevage in order to modernize the existing pig complex. During the last five years, Kalita has imported British genetics.

Iceland
EU opens accession talks
At the recent EU summit in Brussels, the Council accepted the opening of accession negotiations with Iceland. European Parliament Foreign Affairs Committee backed the bid. At this stage, Croatia is the country most likely to join the EU in the near future.

Hungary
Two new protected denominations
Famous Hungarian sausages, kolbász Csabai and Gyulai kolbász, are the latest meat products to be awarded PGI status. They were already protected under national legislation.

US
Rebuilding cash flow
The US pig breeding herd on 1 June shrank 3.6 per cent from 12 months earlier to 64.4 million, a sign that some producers are repaying debt rather than expanding after a return to profit in March ended more than two years of losses. US hog farms have slashed herds after losing about $6 billion from late 2007 until early this year, as corn prices jumped and the recession and swine flu curbed pork demand, said Ron Plain, a livestock economist at the University of Missouri in Columbia. Hog producers made about $39 per animal sold for slaughter in May, the third straight month of profits, he said.

"Producers tend to make changes in response to money in the bank, rather than money in the future," Dr Plain said. "I don't see any expansion, given the current conditions. Producers are waiting until their bankers are a little happier."

Stock market rumours
Smithfield Foods shares have risen five per cent on rumours of a takeover by JBS.

New pork plant planned in Illinois
Triumph Foods is planning to build a major new abattoir in East Moline, Illinois. This could open in a couple of years' time.

Debate on antibiotics
The prophylactic use of hormones in pig production has been questioned by the Principal Deputy Commissioner of the Food & Drug Administration (FDA), Joshua Sharfstein. The FDA may not be yet seek an outright ban but has sought marked lowering of use of antibiotics since 1977. Unsurprisingly, the US pork sector has already reacted quoting control measure on usage and residues.
(Meat Importers’ Council of America / Washington Post)

South Korea
Free Trade Agreement still not ratified
The Commission, Council and Parliament are still in discussions regarding safeguards in the Korean Free Trade Agreement (FTA) which is likely to benefit hugely European pork producers. The Council is yet to submit the FTA to Parliament.

Pork Prices Hamburg Market Week commencing 28 June 2010
Cut Name Price Range (€/kg)
Round cut leg 2.30/2.40
Leg (boneless, rindless max.fat. 3mm) 3.20/3.40
Boneless shoulder 2.40/2.55
Picnic shoulder 1.70/1.90
Collar 2.50/2.75
Belly (bone-in, ex-breast) 1.55/1.80
Sheet boned belly (rindless) 1.75/1.95
Jowl 1.05/1.15
Half pig carcasses 1.88/2.08


Pork prices Barcelona Market Week Commencing 28 June 2010
Cut Name Price Range (€/kg)
Carcasses (secondary grade) 1.672/1.678
Gerona loin chops 2.43/2.46
Loin eye muscle 3.53/3.56
Spare ribs 2.68/2.71
Fillets 5.83/5.86
Round cut legs   
Cooked ham 2.23/2.26
Rindless picnic shoulder 1.53/1.56
Belly 1.84/1.87
Smoked belly with spare rib section cut off 2.27/2.30
Shoulder chap or head jowls   
Back fat, rindless 0.58/0.61


July 2010

[mikey]

Forecast for Pork is Looking Good!
UK - Moves by BPEX to open the Chinese market to British pig meat are to take on a new importance according to the latest forecasts.

 

The International Meat Market Review predicts stronger demand for pig meat from Asia during the second half of 2010, particularly from China and Hong Kong and the lifting of H1N1 trade bans in China will help this further.

From an EU perspective, higher import requirements from Russia will benefit production and that, in turn, may lead to knock-on benefits for the UK.

These are just some of the highlights in the latest IMMR produced by the Agriculture and Horticulture Development Board (AHDB) Red Meat Market Intelligence.

Stable consumer demand in the current economic climate, improved export opportunities as the Euro weakens and lower feed costs have improved profitability and confidence in the EU pig sector.

As a result production is also forecast to increase in Germany, Denmark, the Netherlands and the UK in 2010, while production in other major pig producing states is forecast to remain stable.

Senior Analyst James Park said, "Overall production of pig meat within the EU fell by two per cent in 2009 compared with 2008.

"Major restructuring of the pig herd, particularly in new member states with a move away from small scale farming, was the primary reason for this decline.

"However, it is forecast that this decline may have bottomed out and the introduction of more efficient farming practices, in particular in Poland, will lead to an increase in production or a reduced decline in new member states in 2010."

The June 2010 issue of International Meat Market Review is now available by contacting Dorian Harris (024 7647 8850) for further information.

Prices for an annual subscription are £84 for EBLEX/BPEX levy payers, £93 for UK based non-levy payers and £125 for overseas customers.

Also just published is the EBLEX/BPEX Pocketful of Meat Facts 2010, a handy guide containing a host of information relating to the red meat production sector in the UK and EU. This is £12 for UK customers and £15 for overseas customers.

Pig Year Book 2010 is also out providing key industry statistics and technical performance data on the pig sector at £18 to BPEX levy payers, £22 for UK based non-levy payers and £28 for overseas customers.

[mikey]

EU Pig Prices: Inconsistent Trend for Quotations
EU - The European slaughter pig market proves to be characterised by the trend being inconsistent this week.

 

The changes range from minus 7 cents to plus 0.4 cents. While the quotations fell in Germany, the Netherlands, Spain, Belgium and Austria, the price went up slightly in France. Unchanged quotations were reported on from Denmark, Ireland, Great Britain and Sweden. Slight displacements, connected to quotations in Great Britain and Sweden, are the result again of exchange rate changes.

The price slide observed on the German pig market, which was triggered by the German slaughter companies, made several neighbouring countries feel being put under pressure, too. In Spain they say the price decrease was caused by the slaughter companies trying to improve their margin. Clearly increased quantities of pigs for slaughter as much as the pressure to follow the German price slide are said to be the reasons for the minus noted in the Netherlands. The supply being limited with regard to current demand, the prices went up slightly in France.

Trend: Following the clear price decrease, the extensive quantities of pigs for slaughter can still be sold on the market without problems. Thus, the pig prices are currently expected to remain unchanged.

[mikey]

Study: Agri-Food Industry’s View on Animal Cloning
IRELAND - The sale of food from cloned animals and their offspring is legal in the USA. The US Food and Drug Administration in 2008 stated that such products were indistinguishable from those of non-cloned animals.



Following this, researchers at Teagasc, Dublin Institute of Technology and University College Cork decided to investigate the views of Irish agri-food stakeholders’ on the topic of animal cloning. The researchers carried out in-depth interviews with expert Irish stakeholders with the aim of framing the likely policy debate and assess the prospects for the future commercialisation of animal cloning. The results feature in an article in the autumn edition of TResearch, the Teagasc research and innovation magazine.

“Cloned animals intended for use within the agri-food system do not have approval in Europe, and how the technology will be legislated is currently under discussion. The European Food Safety Authority deems that food products from healthy clones do not present any additional risk to consumers, but the European Group for Ethics has objected to the use of cloning because of the current animal welfare implications, including the low survival rate for cloned animals, and the potential for welfare problems with the surrogate dams,” explains Dr Maeve Henchion, Head of the Food Market Research Unit, Teagasc Food Research Centre, Ashtown.

“The acceptability of these welfare standards from a European Union (EU) perspective can be linked to their utility; for example, the European Medicines Agency approved the production of human anti-thrombin from cloned transgenic animals in 2006. The protein produced treats a hereditary anti-thrombin deficiency that increases the risk of pulmonary embolisms or deep vein thrombosis,” said Dr Henchion. “However, the views of European citizens and consumers must also be factored into the risk process. Early indications from the European public are that they are wary of the technology and that it poses an ethical dilemma. This research provides an opportunity to examine animal cloning in terms of barriers and opportunities, specifically pertaining to its potential role within the Irish agri-food system.”

“The views of Irish stakeholders in the discourse on animal cloning for the agri-food sector are of particular interest because, unlike the GM debate in relation to crops, Ireland is a significant producer and exporter of meat and livestock. For this reason the exploitation of cloning in other trading blocs looks set to pose a challenge for Irish and EU policy makers, industry and citizens,” Dr Henchion said.

Interview findings
Overall, animal cloning for food purposes was not viewed as a likely commercial prospect by any of the interviewees. Awareness of the recent commercial development of such technology in the US appeared to be low, with only a single interviewee identifying it as an impending regulatory dilemma for the EU. Knowledge about the role of assisted reproductive technologies in animal breeding varied, with artificial insemination being the primary reference point for most interviewees. Respondents with a technology background, and who demonstrated knowledge of assisted reproductive technologies, differed in opinion on the commercial viability of techniques such as embryo transfer/splitting. This cohort was quick to differentiate cloning from other reproductive techniques, a trend that was not repeated among other stakeholders. The main reason for the differentiation was that cloning was not seen to assist reproduction, but instead to supersede the fertilisation process and be more closely aligned to a sort of genetic modification process (though no genetic modification actually occurs).

The data from the in-depth interviews highlighted that, as yet, there has been little debate on the topic, and the commercialisation of cloning elsewhere has gained little attention. Regardless of when the debate does occur, the animal welfare and consumer acceptability perspectives are likely to have a central role in how the technology is regulated. Further research in this project will focus on examining Irish citizens’ perspectives on cloning technology and the issues raised by the expert stakeholders during the current study.

[mikey]

France to Lead Wave of European Pig Farm Closures
FRANCE - The hog sector in Europe is to suffer a wave of closures as farmers sell up rather than fork out on meeting tighter animal welfare red tape, helping depress the region's herd to its smallest in at least a decade.



A "high percentage" of European Union pig farmers are expected to shut up shop rather than meet the costs of ammonia-emission limits, which would require some to install air treatment equipment, and sprucing up buildings to meet fresh limits on animal accommodation.

According to Agrimoney.com, many farmers also face extra costs for castrating pigs, after a furore in many countries over pork obtained from animals neutered without the use of full anaesthetic procedures, as had been a common practice.

With margins tight since 2007, and facing further pressure from rising grain prices, "farmers are reluctant to invest in their farms", a report from US officials in Europe said.

The French sector was set to see a particularly high rate of closures, after suffering from particularly poor profitability and failing to follow a modernisation drive implemented in top producing states such as Denmark, Germany and the Netherlands.

The shutdowns look set to fuel a decline in EU pig numbers, which are set to fall to 150.7m animals by the end of next year, down by nearly 11m in five years.

A fall in demand for pork during the global economic crisis has already brought the "termination of the most inefficient farms throughout the EU, and a reduction in backyard farming", the report said.

And stagnant demand within the region for pork, coupled with growing competition on meat export markets from Brazil and Thailand, will act as an disincentive for expansion.

Furthermore, Europe faces a collapse of one-quarter in exports of live animals for slaughter this year following the decision by Russia, historically responsible for about half of trade, to join Belarus and Kazakhstan in a customs union.

The tie-up prompted a jump from 5 per cent to 40 per cent in Russia's import duties on live pigs.

The continuing troubles in Europe's hog industry contrast with those in the US, where pig and pork giant Smithfield Foods on Wednesday hailed a turning in the cycle, and its first quarterly profit on hog production since 2007.

Many European countries are attempting to improve prospects for their farmers and meat producers by agreeing trade deals with China, the biggest pork consumer.

Denmark, France and Spain have already received consent to export directly to China, with the Netherlands expected to be approved this year.

[mikey]

Six New Outbreaks of Aujeszky's Disease in France
FRANCE - The French veterinary authorities have reported six new outbreaks of Aujeszky's disease in the country.



The World Ogranisation for Animal Health (OIE) received follow-up report no.4 yesterday, 20 October. According to the report, the outbreaks occured at several farms in the Pyrénées-Atlantiques region.

A total of 15 animals were affected. All affected animals were slaughtered.

The source of the outbreak has not been discovered.

Further Reading

Aujeszky's disease AD,
This is an important disease of pigs caused by a herpes virus. The virus can remain hidden in nerves of the pig in a carrier state for long periods of time and then be reactivated. Once introduced into a herd the virus usually remains there and it can continually affect reproductive performance at varying levels. The virus can survive for up to three weeks outside the pig. Acute outbreaks of disease occur when virulent strains of the virus first infect an unvaccinated susceptible herd. The virus crosses the uterus and placenta and infects the foetuses.
The pig is the main host. Dogs and cattle may become infected, show nervous signs and die.

Symptoms
Sows
Coughing.
Fever
Nervous signs
Reproductive failure.
Abortions.
Mummified piglets.
Stillbirths.
Birth weak litters.
Piglets
Nervous signs.
Incoordination.
Sneezing.
Coughing.
High mortality.
Low / poor viable piglets.
Weaners & Growers
Fever.
Sneezing.
Coughing.
Pneumonia.
Nervous signs including incoordination, fits and meningitis.
Some strains of the virus can cause severe respiratory disease and others severe rhinitis.
Usually low mortality.
All Other Species
Nervous signs.
Death.
Causes / Contributing factors
Movement of carrier pigs.
Virus airborne - at least 3km (2 miles).
Infection from feral (wild) pigs.
The role of mechanical spread by birds is questionable.
Contaminated carcasses may spread infection.
Mechanically on people.
Contaminated vehicles.
Through infected semen via AI or a carrier boar.
From infected slurry.
Within herds it may be spread by nose to nose contact, or by aerosol droplets.
Periods of stress may activate disease.
Continual production systems perpetuate disease.
Additionally:
The presence of other infections such as PRRS and leptospira may increase the severity of disease.
Diagnosis
When a susceptible breeding herd first breaks down with this disease the clinical signs described above strongly suggest aujeszky's disease and are almost diagnostic. Laboratory tests are required to confirm the diagnosis.

[mikey]

Belgian Pig Industry Shrinks
BELGIUM - The number of farms with pigs in Belgium has shrunk by 4.6 per cent compared with last year.

 

A provisional count showed the country has 5,879 farms, of which 5,125 were in Flanders, the northern part of the country – which mostly consists of flat countryside.

The total number of pigs, however, grew slightly by 1.2 per cent to almost 6.4 million animals. The majority of this number, more than six million, can also be found in Flanders. The greatest growth was seen in finishing pigs.

[mikey]

Low Stress is Key to Optimum Breeding Performance
UK - Removing stress factors in gilts and sows is key to good reproductive performance. That was a clear message from Dutch pig expert Dr Nicoline Soede at last week's Two-Tonne Sow (2TS) Focus on Breeding events, organised by BPEX.

 
English pig producers were keen to hear what it is that helps the Dutch industry achieve an average 27 pigs weaned per sow per year. They took the chance to quiz Dr Soede and her colleagues Professor Bas Kemp and Dr Hanneke Feitsma on many aspects of reproductive management.

Dr Soede emphasised that one of the most important factors for successful insemination timing and establishing pregnancy is to minimise stress and focus on 'animal-directed' management.

Professor Kemp explained the delicate balance between under- and over-feeding during early lactation and gave clear advice on the different requirements of sows and gilts.

The importance of close attention to detail was highlighted by Dr Hanneke Feitsma, as she shared her knowledge on current and future AI technologies.

There were 190 attendees between the two events, held in Wetherby and Milton Keynes.

Producer Simon Watchorn said afterwards: "It was one of the best events I've been to and the most I've ever learned. I'll be reviewing whether there are things I can change on my own unit."

Look out for more advice and information from the conference at the special web site [click here] in the next few weeks. Also check for local meetings on the events pages, where there will be more discussion of these topics.

Professor Bas Kemp and Dr Nicoline Soede are both from the Animal Science Department at Wageningen University and Dr Hanneke Feitsma is from IPG Netherlands.

[mikey]

UK Signs Deal to Export Breeding Pigs to China
UK - Britain today signed a deal that will allow the export of its breeding pigs to China, home to half of the world's pig population, the government said.



Citing Reuters, The Business Times reports that the deal and future business stemming from the agreement is expected to be worth around 45 million pounds (US$72.8 million) to the British pig industry over the next five years.

The agreement coincided with Britain's biggest ever trade delegation to China, the world's second-largest economy.

"This agreement gives a valuable boost to the British pig industry and is already delivering results," Business Secretary Vince Cable said.

Mr Cable is part of the British government team visiting Beijing this week. Prime Minister David Cameron will arrive on Tuesday.

The pigs will begin to be flown out shortly, the first export of British breeding pigs to China for three years. With artificial insemination techniques, an adult boar can sire 6,000 piglets a year.

Two British firms, JSR Genetics based in Yorkshire and JJ Genetics in Cambridge, are already planning to expand their business in China on the back of the deal.

Agreement has also been reached on health certification to allow a start to be made on the export of UK pigmeat to China.

British industry officials say that pig meat exports to China have the potential to rise to over 40 million pounds per annum if all UK meat processing plants are approved.

Meanwhile, in Scotland....
This trade agreement could be worth millions of pounds to the Scottish economy.

Richard Lochhead Cabinet Secretary for Rural Affairs welcomed the re-opening of potentially lucrative livestock markets with China following a ten-year closure.

Trade was suspended between the UK and China due to animal health issues including the global H1N1 outbreak. Scotland's First Minister Alex Salmond discussed the resumption of import protocols with Shuping Zhi, Deputy Minister for General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), when he visited Beijing in July.

Mr Lochhead said, "Re-opening trade with China is fantastic news for Scottish farmers and exporters. Scottish pig exports can now resume and this could lead to lucrative new markets with the potential of bringing in millions of pounds for the industry.

"Both breeders and processors stand to benefit from gaining access to such a significant customer base. Scotland has a long standing reputation for producing quality livestock and our high health status should help ensure that a large proportion of the farms providing breeding pigs for export to China are based here.

"There is already £1 million worth of orders in place for Scottish stock and more could be made in royalty payments and contracts over the next five years. I know the pig industry in Scotland is primed to make the most of this exciting export opportunity."

Managing Director of Scottish Pig Producers Ltd, Gordon McKen said: "This is excellent news for the industry in Scotland as it opens up new opportunities for the export of our breeding stock. Scotland has a reputation for a high health herd and we are in a good position to take advantage of the new protocol.

"This agreement could also lead to the eventual export of other products and that's certainly to be welcomed."

BPEX Chairman, Stewart Houston, commented: "This is wonderful news for the industry and something we have really been looking forward to.

"It will offer enormous opportunities for pig meat, particularly with a range of fifth quarter products – the parts of the carcass that command a premium in China.

"We are very grateful for the hard work and spirit of co-operation shown not only by the Chinese but also Defra's international animal health division and the British Embassy and UKTI team in Beijing, to bring these negotiations to a successful conclusion.

"The process did get delayed somewhat by the outbreak of foot and mouth disease in 2007 which temporarily halted the talks"”

The process of approving the list of UK pig processing plants for export to China is now nearing completion. A joint Defra and BPEX delegation is due to travel to China on 24 November 2010 and will present several more plants for approval during the trip. Plus, an increasing number of plants are interested in joining the list as a result of these developments.