WEEKLY PIG INDUSTRY REVIEW BY DR. ABRAHAM W32-33

Dear readers,

I am back to provide interesting market info from the pig business, starting with the good ones:

  • After the image of animal-based foods had only just emerged from its crisis last year, things have improved in Germany. Overall, the perception of meat as an indispensable part of the diet has risen to 64% , from  57% in September 2022. This is the highest figure since 2018. In 2024, 55% of Germans also agree with the statement that eating meat is healthy (2022: 48%), 7 percentage points more than two years earlier. Is “green” propaganda failing?
  • To protect the French pig farming model and to offer to the consumers the pork and pork products they want to buy , Inaporc has launched a new strategy: Demain le Porc, or Pork of Tomorrow. Pork consumption actually increased by 1.6% year-on-year, but the pork self-sufficiency rate fell just below 100% for the first time in the last decade. The first goal is to have the certified “Le Porc Français” logo on at least 50% of all pork products sold in the country. Secondly, all pig farms that become susceptible to relocation because the farmer retires or wants to give up pig farming should be taken over by a new owner “to secure production in the coming years”. Inaporc and its partners are therefore asking the government for support for young farmers and others entering the sector.
  • Danish Crown’s Board of Directors has appointed Niels Duedahl as the new CEO of the Group . With senior positions at, among others, Norlys, LEGO and TDC, he is an experienced senior manager in Danish business life who will be tasked with leading Danish Crown through a comprehensive transformation.
  • Danish Crown and TA-Logistics A/S have sold Agri-Norcold, one of Denmark’s largest operators in the field of freezing, frozen food handling and food storage. The buyer is Constellation Cold Logistics, one of Europe’s leading companies in the industry.
  • The American Meat Science Association (AMSA) has just launched The Meat Locker , a new website designed to provide valuable resources and technical information to meat processors . Developed with simplicity and accessibility in mind, the website addresses topics and challenges facing meat processors ranging from food safety, quality, processing, business operations, labeling, and other topics. The WEB address is:https://themeatlocker.org/
  • USDA announced plans to make an additional $300 million available through a program designed to help grow export markets for U.S. farm and food products.

Events calendar:

  • The FHT Food & Hospitality Thailand is an international trade fair that was created to represent the dynamic market for food, beverages, hotels, baked goods, restaurants, catering, and accessories in Thailand and the surrounding region. This year it will take place on 4 days from Wednesday, 21. August to Saturday, 24. August 2024 in Bangkok.
  • „Food Tech”, established in Peru, Lima in 2017, is an annual trade fair specializing in the presentation of the latest innovations in fields like engineering, technology, and solutions, catering to the food industry and other related sectors like hospitality. Food Tech takes place on 3 days from Wednesday, 21.08.2024 to Friday, 23.08.2024.
  • The Indian FoodEx in Bangalore is an international trade fair that focuses on the food industry, retail, food processing, packaging machinery, and associated sectors. Indian FoodEx takes place on 3 days from Thursday, 22.08.2024 to Saturday, 24.08.2024 in Bangalore.

Oh Well

From the Danish Crown group we had rather intriguing news lately. It is good, that it didn’t take to much from the announcement of the stepping down of the former CEO to the appointment of Niels Duedahl. Again, the cooperative has chosen a very experienced manager, but with almost no connection to the core business. To stay with the Danes: Danish Crown is  planning to increase production of male pigs from 450,000 to 1.7 million, and is now changing tack to do so by switching from the production entire male pigs to immunocastrated pigs. The decision is based  on a poorer return of investment on the entire boars due to a lower carcass value and fear of boar-taint with a negative consumer reaction.

The Frech plans for the pig business also state that 50% of sows should be kept in free-range conditions by 2035, while all newly built pig buildings must comply with this type of system. Another plan is to introduce audits to further guarantee biosecurity. In my opinion, this two targets are excluding each other.

For instance, African Swine Fever (ASF) virus has emerged on a small pig farm in the state Rhineland-Palatinate. It is the first time the virus emerged on a farm in that state.

            Our main  activity is in Hungary. Weekly, we are under the pressure of the slaughterhouses for lower prices. The reason: the retail asks reductions, due to lower consumption. Meanwhile, recent statistics show that pork price increased 10% in the shops, compared to last year. Oh well…

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