Dear readers,

First some reasons for optimism in our industry:

• Croatian food group Podravka is set to purchase a number of food and drinks companies belonging to local agri-food business Fortenova Group. The deal will also include Belje, which produces wines, dairy products, cured meats and tomatoes under its namesake brand for the domestic and global markets. Another food and beverage group included in agreement is Vupik, which works in cattle and pig farming.
• With the pressure of the environmental activists, converting pig urine into hydrogen is one of the latest ideas and innovations. In Belgium, a test setup has been built on a pig farm in the municipality of Flobecq, working together with the University of Mons, among others.
• Through a joint venture between Topigs Norsvin and Muyuan Foods, a nucleus farm is starting near Wuwei in China’s Gansu province. Muyuan Foods is the largest pig farming company in the world, while Topigs Norsvin is a leading swine genetics company. According to the statements, the new high-health nucleus farm will have a capacity of 1,200 sows and will house both maternal and terminal sire lines. This herd will form the foundation of a breeding infrastructure that will provide high-quality genetics for Muyuan as well as other producers in China.
• The USDA announced the allocation of $110 million for processors through the Meat and Poultry Processing Expansion Program (MPPEP) and the Local Meat Capacity (Local MCap) Grant Program. Over $83 million in grants to 24 independent processors in 15 states are allocated  under MPPEP, to support the construction of new processing plants, job creation and expanded business opportunities, while the Local MCap is awarding $26.9 million to 33 projects in 23 states.
• Smithfield Foods Inc is preparing for a U.S. initial public offering (IPO) aiming to raise at least $1 billion, according to a Bloomberg report. The company enlisted Bank of America, Goldman Sachs and Morgan Stanley to manage the listing, which could occur as soon as this year, according to the report

Events calendar:

• The Malaysian International Food & Beverage Trade Fair (MIFB), established in 1990, is the premier event of its kind in Malaysia. This year’s edition will take place at the Kuala Lumpur Convention Centre on 3 days from Wednesday, 17. July to Friday, 19. July.
• From July 17 to 19, the Porkcolombia Association will hold its Porkaméricas 2024 International Congress at the Cartagena Convention Center. The event will host  23 renowned national and international speakers within the academic agenda and over 50 brands present in the commercial exhibition of more than 1,000 m².
• Within the series of events dedicated to our sector of activity, Nebraska pork expo  will take place on July 17, at the Holthus Convention Center in York.

Paris is Always Paris

An interesting news came up from another major player of the North-American pig industry. According to a statement “Maple Leaf Foods will continue to pursue its vision to be the most sustainable protein company on Earth, now as a more focused, brand-led consumer packaged goods company that will meet the world’s growing need for sustainably produced protein. By spinning off its pork business, the name of which will be announced in the coming months, Maple Leaf Foods will unlock significant growth potential by unleashing a world-leading organization which produces sustainable meat the right way and can fully take advantage of its own unique business model to unlock its own significant growth potential.” While we see more often consolidation and integration on the market, this is the opposite. For sure, by splitting the activities in this way, it will be easier to communicate sustainability.

In Spain a new decree put pressure on the pig sector. Depending on the method of calculating the useful surface area and the acceptance of rounding by pen. The reduction in places ranges between 7.06% and 16.34%, meaning a loss of between 4 and 8 million fattened pigs per year. The calculations made by the farmers indicate an additional cost of over €300,000 to adapt the farms to the reduction in densities per square meter, which in the case of wanting to expand the surface area of ​​the farms to maintain the level of production, would exceed €500,000. Will we see the new king of the pig sector also losing its crown?

We had high expectations for the pig sector during the European Football Championship in Germany, but the trend was reversed. Olympic games follow and French pig prices already increase. We have new hopes, Paris is always Paris.