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TheMeatSite Newsletter - 29 February 2012

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Wednesday 29th February 2012
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Welcome to this week's newsletter

EDITORIAL: EU and US See Higher Meat Prices

Meat consumption across the European Union is expected to fall as prices for beef in particular rise.

Beef production is expected to see higher heifer slaughterings and a reduction in the EU beef herd and across the board higher feed prices are forecast throughout this year and into next.

Overall meat production in the EU is expected to decrease by 1.1 per cent in 2012 and remain stable with a further small decrease of 0.1 per cent in 2013, while a decrease in total EU meat consumption is foreseen of 0.7 per cent in 2012 and 0.4 per cent in 2013, according to the European Commission's Short Term Outlook for February 2012.

The EU meat sector in 2011 was supported by a relatively strong level of demand on the world market characterised by the quite favourable global economic situation. Global import demand increased, partly as a consequence of animal disease related supply constraints in the Far-East.

Overall supply of meat was further constrained by high feed costs despite the reasonably good harvest in the EU, US, Canada and Russia. As a consequence world prices increased which contributed to the continued good performance of EU exports.

The outlook is characterised by a further contraction in total EU meat consumption, which is expected to decrease by 0.7 per cent in 2012 and 0.4 per cent in 2013. Only poultry meat has proven to be resilient, with consumption estimated to have grown slightly in 2011 and expected to increase further over the outlook period given its healthy image and relative cheapness.

Overall meat production in the EU should decrease slightly (by 1.1 per cent) in 2012, and remain stable in 2013.

In the US, beef prices on the retail market during January were at a record high for the fifth month in a row. Retail choice beef prices averaged $5.093 per pound last month, up 7.7 cents from December and up 55.1 cents from January 2011.

Beef prices were ahead of those a year ago for the twenty third consecutive month.

A shortage of poultry is expected to drive up chicken prices for consumers in the US.

The USDA Agricultural Projections to 2021 report predicts a decline in this year's poultry supply will drive up prices, however, the report suggests it is temporary, and in 2013 poultry supplies will increase.

According to the report, the supply of beef will also decline for the next two years, but in 2017 there could be a record level of supply and prices could fall.

In China, rising prices in the domestic pork market have been the main contributor to the country’s rising pork imports.

Over the years, Chinese pig prices have fluctuated within a relatively narrow range, but after a sharp increase during 2007-08, prices have been significantly higher than those in the US hog prices. During 2011, prices rose as high as $1.40 per pound.

The shift in prices has been seen as an indication of the general improvement of prospects for US pork sales to China.

In Brazil, poultry production for 2012 has been forecast to rise but only by three per cent compared to last year.

Domestic demand and a small recovery in exports are thought to be the main drivers behind this rise in production.

Chris Harris



* This Week's Feature Articles

We have 6 new features this week:

Trends in Remote and Mobile Information Access Technologies
As access to the Internet becomes more commonplace and more mobile, the ability to gather information from anywhere has moved from being a luxury to being an essential part of doing business, writes Sim Harbert from the Georgia Tech Research Institute.
Compound in Apples Inhibits E. coli O157:H7
A compound that is abundant in apples and strawberries inhibits the highly pathogenic E. coli O157:H7 biofilms while sparing a beneficial strain of E. coli that also forms biofilms in the human gut, according to a paper in the December 2011 issue of the journal Infection and Immunology.
Creating Products with Economical Processes
The latest generation of food production plants enables operators to conserve resources and minimize costs by optimising processes, boosting flexibility and improving products.
GLOBAL POULTRY TRENDS – Asia is a Significant Exporter and Importer
Asia accounts for around one–quarter of the world shell egg trade, according to Terry Evans in this second part of his analysis of the region’s egg industry.
Rising Prices and Costs for Chinese Pork
Rising prices in China’s domestic pork market were the main contributor to the country’s rising pork imports, write Fred Gale, Daniel Marti and Dinghuan Hu in a report entitled ‘China’s Volatile Pork Industry’ from the USDA Economic Research Service.
NZ Beef Mid Season Update 2011-12
Beef exports are likely to increase in 2012, whilst excellent seasonal conditions will push cattle weights higher. Farmgate prices are not likely to change much, according to the Beef and Lamb NZ Mid Season Update.
* Market Reports

 » USDA Dairy Product Prices Week 9
 » January Pork Production 5 Percent Above Last Year
 » Trout Value of Sales Increased 7 Per Cent from 2010
 » BPEX Export Bulletin – Week 8
 » UK Slaughter Statistics - February 2012
 » International Egg and Poultry Review: EU Animal Welfare for Laying Hens
 » USDA Poultry Slaughter: Ready-to-Cook Weight Down 1 Percent
 » AHDB European Market Survey - 24 February 2012
 » AHDB UK Market Survey - 24 February 2012
 » USDA GAIN Brazil Poultry and Products Semi-annual February 2012
 » Outlook for US Agricultural Trade February 2012
 » Irish CSO Livestock Survey (December 2011)
 » CSO Livestock Survey (January 2012)

* Company News

Innovations at Anuga FoodTec
GERMANY - The international food technology sector will once again meet at Anuga FoodTec in Cologne at the end of March for an exhibition offering the international food business an information and purchasing platform coverinng the entire spectrum of technology and investment requirements for production in all segments of the food industry.
Packing Fresh Meat Cost-effectively
GERMANY - With the R 515 machine MULTIVAC is bringing a new model of its high performance thermoforming packaging machines onto the market, a model which is designed for the particular requirements of the fresh meat industry.
LIMA - Serving the Industry with New Separators
FRANCE - After a busy 2010 with IFFA and the sale of the 1000th separator produced by LIMA in Quimper, The 4th agents sales meeting took place in 2011 with the gathering in Quimper of more than 50 distributors from the five continents.
* Global Meat Industry News

   United Kingdom

 » Freeing up Farming to Reach its Full Potential
 » Freedom Food Uptake Grows
 » NFU AGM - Farmers Attack CAP Reform Proposals
 » Pork Still Selling Well in the UK
 » Masterclass Highlights Quality & Versatility of Pork
 » Slight Rise in Beef and Pork Production in January
 » LMC: Tightening Supplies Across UK
 » Thousands Sign Legaleggs.com Pledge
 » Beef Market Prospects Set to Remain Firm
 » UK Red Meat Export Values Rose in 2011
 » Schmallenberg no Risk to Humans
 » Wind Blows Worker from Shipping Container

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   Australia

 » Study Backs Queensland Abattoir
 » Mapping Out a Food Secure Future
 » Welfare Complaint at Two Indonesian Abattoirs
 » Varied Week for Lamb Prices, Quality Mixed
 » Teys Installs CCTV in Abattoirs

   United States

 » Study Finds Origins of MRSA Strain in Food Animals
 » Pork Checkoff Advances 2012 Pork Industry Research
 » CME: American Cheese Stocks Lower Than Prior Year
 » Groundbreaking Commitment to Animal Welfare
 » CME: Beef, Pork & Poultry Stocks Down
 » Meat Company Owners Jailed for Fraud
 » Hormel Foods Earnings Down
 » Fewer Farms, Less Land but Greater Production
 » CME: Weekly Dairy Slaughter Picks Up
 » Cattle Outlook - Beef Prices Record High
 » Chicken Prices Expected to Rise
 » Will Consumers Come Back to Pork? Yes!
 » CME: CME Butter Market Comes Under Pressure
 » Beef Producers, Exports Hurt by Stalled BSE Rule
 » Combat Fish Fraud with Better Seafood Board
 » CME: CME Cash Markets Find Support

   Pakistan

 » Chicken Being Sold at High Prices

   South Africa

 » Rainbow Chicken's Profits Increase
 » Foreign Secretary Backs British Pork Trade Mission

   Norway

 » Salmon Still Make Omega-3 Despite Plant Diet
 » Norway's Butter is Shortage Under Control
 » Breivoll Marine Products Banned from Russian Market

   Brazil

 » Brazilian Poultry Production Estimates Up in 2012
 » Marfrig Announces Changes in Business Structure

   Mexico

 » SuKarne Starts Work on Beef Processing Complex
 » Mexican Meat Production Rises
 » Mexican Meat Exports in 2011 Increased by 41%
 » 2011 Fisheries Production up 1.6 Per Cent

   Kuwait

 » Salmonella in Imported Chicken

   Ukraine

 » Ukraine Meat and Dairy Production to Increase

   Canada

 » Irradiation to Eliminate Pathogens from Ground Beef
 » Addressing Pork Industry’s Integrated Market
 » New Revelations to Reduce E. Coli Outbreaks

   Global

 » Canada and US Strengthen Ag Trade Relationship
 » Call for End to Restrictions Imposed by M-COOL
 » US Beef and Pork Exports Up in 2011
 » Sustainable Intensification to Meet Growing Demand
 » Scientific Proof of Resistance Pathogens Pathway

   New Zealand

 » Tegel Recalls Frozen Pre-Cooked Chicken Range
 » Lockout of Workers at Meat Plants
 » Dairy Exports Rise as Meat Falls

   India

 » Bangs to Expand Fried Chicken Outlets

   Ireland

 » Strong Mixed Trends in December Livestock Survey
 » Irish Pig Prices Remain Stubbornly Static

   Finland

 » Atria Centralises Swedish Meat Processing

   European Union

 » EU Meat Consumption Falls Along with Production
 » CAP Reforms Face Bumpy Ride with EU Parliament
 » EU Pig Prices: France & Spain Continue to Rise

   Poland

 » Industrial Salt Sold to Cure Ham

   Russian Federation

 » Cherkizovo: Rearing Facilities at New Pork Complexes
 » Slump in Broiler Imports to Go into Reverse
 » ABH Miratorg's Operational Activity for 2011

   Hong Kong

 » Fujian Pork Supplier Aims for Retail Investors



That's all for this week!

Ed.
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