The Pink Pages Facts and Figures - AHDB Pork · foreign FMCG companies find themselves in China....

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The Pink Pages Facts and Figures Over the last decade, the UK’s self- sufficiency in pig meat has increased from around 47% to 55%, as production has increased by a quarter, while consumption has risen more slowly. However, the UK’s share of the domestic pig meat market has stayed stubbornly low, at around 40%; much of the extra pork has ended up on export markets, with shipments nearly doubling, to account for over a quarter of production. So what is preventing UK pork from growing its market share? The answer is carcase balance. For example, even if all the loins from all UK pigs were sold as back bacon, there still wouldn’t be enough to satisfy demand. As several popular fresh pork cuts, such as chops and steaks, also come from the loin, it’s clear the demand can currently only be satisfied by importing loins. On the other hand, demand from UK consumers only uses up around 70% of British pork shoulders and 50% of bellies, so export markets have to be found for the surplus. Expanding production so we need to import fewer loins (and legs) would mean an even bigger excess of other cuts, so output can only grow as new markets are developed. Therefore, unless consumer preferences change radically, any future expansion of the UK herd will be steady rather than spectacular. Carcase balance limiting UK pig meat’s market share UK weekly clean pig slaughterings Comparison of UK and EU pig reference prices Sources of pig meat consumed in the UK GB average retail pork carcase price and DAPP Number: 24 | December 2015 Source: Defra Source: Defra, HMRC Source: AHDB Market Intelligence, EU Commission Source: AHDB Market Intelligence AHDB, Defra and Kantar Worldpanel Estimated number of pigs required to satisfy UK demand for different pig meat products

Transcript of The Pink Pages Facts and Figures - AHDB Pork · foreign FMCG companies find themselves in China....

Page 1: The Pink Pages Facts and Figures - AHDB Pork · foreign FMCG companies find themselves in China. Foreign companies and brands are losing market share against local competitors. This

The Pink PagesFa

cts

and

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Over the last decade, the UK’s self-sufficiency in pig meat has increased from around 47% to 55%, as production has increased by a quarter, while consumption has risen more slowly. However, the UK’s share of the domestic pig meat market has stayed stubbornly low, at around 40%; much of the extra pork has ended up on export markets, with shipments nearly doubling, to account for over a quarter of production.

So what is preventing UK pork from growing its market share? The answer is carcase balance. For example, even if all the loins from all UK pigs were sold as back bacon, there still wouldn’t be enough to satisfy demand. As several popular fresh pork cuts, such as chops and steaks, also come from the loin, it’s clear the demand can currently only be satisfied by importing loins.

On the other hand, demand from UK consumers only uses up around 70% of British pork shoulders and 50% of bellies, so export markets have

to be found for the surplus. Expanding production so we need to import fewer loins (and legs) would mean an even bigger excess of other cuts, so output can only grow as new markets are developed.

Therefore, unless consumer preferences change radically, any future expansion of the UK herd will be steady rather than spectacular.

Carcase balance limiting UK pig meat’s market share

UK weekly clean pig slaughterings Comparison of UK and EU pig reference prices

Sources of pig meat consumed in the UK GB average retail pork carcase price and DAPP

Number: 24 | December 2015

Source: Defra

Source: Defra, HMRC

Source: AHDB Market Intelligence, EU Commission

Source: AHDB Market Intelligence

AHDB, Defra and Kantar Worldpanel

Estimated number of pigs required to satisfy UK demand for different pig meat products

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Producers are still being urged to sign up to the Significant Disease Charter – especially members of the original Swine Dysentery (SD) Charter.

Those previous members will not be switched across automatically to the new one so need to rejoin as there are new terms and conditions.

The Charter aims to make it easier and faster to identify, control and eradicate new and emerging diseases not covered by compulsory notification.

The terms and conditions for the Charter have changed to include both PED and swine dysentery so those who were in the original SD Charter will still need to sign up to agree to the updated terms.

The charter is run by AHDB Pork on behalf of the Pig Health and Welfare Council. AHDB Pork veterinary team manager Martin Smith said: “The more producers we can get signed up to the Charter the better it will operate in the event of an outbreak. It is part of a joined-up approach across industry which has proved extremely effective in Canada.

“Allied to this is a series of standard operating procedures which have all been published on the AHDB Pork website. These tell people across the supply chain what their responsibilities are in the event of a PED outbreak and also define the lines of communication.”

Videos of speakers at the first round of AHDB Practical Pig Events are now available to watch on the AHDB Pork website. Plus there are still three events running this month:

• 1 December at Exeter Golf and Country Club

• 2 December at the Holiday Inn Winchester

• 9 December at Diss Rugby ClubThe events are run for stockmen

and unit managers and aim to provide practical information that they can take back to the farm and implement the next day. Topics include achieving a marketable pig – looking at managing variation and selection for sale – as well as land and health management.

Keeping tabs on what is happening on-farm and when can be a trial but the popular AHDB Pork wall planner means it can be done at a glance. They are a common fixture on farm office and staffroom walls and some 1,500 copies of the new 2016 wall planner have been posted out across the country.

Sign up to the disease Charter

Help keep feed costs under control

Event catch-up via video

Sign up to the Charter via the Pig Hub, using the same log-in details as for eAML2: www.pighub.org.uk/iip/home.eb

To view the videos or register for an event, go to: pork.ahdb.org.uk/events/conferences/

Anybody who has not received one but would like one, should contact Clancy Smith: [email protected] or 0247 647 8792.

New 2016 wall planner

AHDB Pork’s feeder review factsheet has been updated. It includes more than a dozen different types of feeder, looking at how easy they are to adjust, how they are built and feed wastage. It also now provides a guide as to the cost of the units and how many pigs per feeder are recommended.

Feed makes up at least half the

cost of finishing pigs so AHDB Pork commissioned the on-farm review aiming to help producers to make more informed decisions about which feeder type is most suitable for their situation.

A range of feeders from different manufacturers were installed on a single pig unit to compare wastage and ease of adjustment.

To download the updated feeder review, go to: pork.ahdb.org.uk/media/74405/ahdb-pork-feeder-review-october-2015.pdf

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Pig ProductionThere are currently five AHDB Pork

field trials underway looking at a number of different aspects of pig production with a view to being able to recommend ways to improve performance. There are a further four trials investigating carcase cooling, nitrate leaching in soils, ammonia emissions and electronic ear tagging. None of the trials is as yet completed but there are updates on what they have so far shown available on the AHDB Pork website.

The first pig production trial is investigating the effects of varying space allowance (stocking density) on the performance of growing-finishing pigs. This trial is ongoing at two sites, one a commercial unit in Yorkshire and one a research site.

The next is looking at the effect of allocating either 50% or 100% more feeder space on the performance of growing-finishing pigs and is currently taking place at research sites.

The third is examining how to optimise the potential of the small pig through implementation of best practice in the farrowing house. A pre-trial survey of high performance breeding units in the UK and Denmark to help identify elements of best practice to include in the trial was conducted by John Richardson of Production Performance Services; it is now well underway on a commercial unit.

Another is looking at the effect of different metabolic status indicators of sows during gestation and lactation on subsequent performance of sows and piglets. Various measures on commercial pig units are used as proxies for the metabolic status of the sow and it’s important to monitor, as sow tissues are in a continual state of metabolic flux as the sow supplies nutrients for foetal development during the dry period but also to piglets during lactation.

The final trial involves supplementation of feed with omega-3 polyunsaturated fatty acids and its effects on the reproductive performance of sows. It is being carried out at two research sites, both of which operate batch farrowing systems. The target on these two sites is to have 200 and 230 sows on trial, respectively.

A recording of a webinar presenting the findings of the producer study tour to Denmark is already proving a popular download from the AHDB Pork website.

The webinar was hosted by AHDB Pork’s Nigel Penlington and Sue Rabbich and offered producers the chance to learn about a range of building technologies and techniques which could help improve the bottom line.

Nigel said: “The aim was to help provide producers with a ‘tool box’ of new technologies and techniques to help improve resource efficiency and consistency of production.”

The technologies covered include:• The pH slurry reduction system• Straw distribution robots• The Intellifarm concept for pig buildings which uses the smart

farm concept of building design, ventilation, climate control and air cleaning.

Field trials update online

Building technologies ‘tool box’

For those who couldn’t make the webinar, the recording can be downloaded at: pork.ahdb.org.uk/events/ahdb-pork-webinars/

Current field trials, in summary:

• Sow metabolic status • Omega-3 supplementation • Small pig management • Feeder space• Stocking density • Electronic ear tagging • Nitrate leaching in soils• Ammonia emissions • Carcase cooling

To find out more about the field trials, go to: pork.ahdb.org.uk/research-innovation/field-trials/current-field-trials/

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Pig

Mea

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arke

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For more information

Tel: 024 7647 8811

pork.ahdb.org.uk

© Agriculture and Horticulture Development Board 2015. All rights reserved.

AHDB Pork is a division of the Agriculture and Horticulture Development Board (AHDB).

What next for UK pork in China?

Our commercial position on the Chinese pork market looks good, following the success of the Food & Hotel China (FHC) event in Shanghai and World Food in Beijing this month, as well as the visit by the Secretary of State for the Environment Liz Truss to China. The five major pork processors were all represented at FHC and fielded full teams. All now have representation in Mainland China,

a testimony of our commercial progress. They are highly positive regarding prospects and report brisk sales although they expect some price fall in the first part of 2016 from the current high position. The question is, where next for us in China with pork?

Local competition in China An article in the Economist (31/10)

summarises well the situation in which foreign FMCG companies find themselves in China.

Foreign companies and brands are losing market share against local competitors. This is happening as the growth of FMCG sales is slowing from 18% in 2011 to about 5%. Until now, foreign companies had the clear advantage of “superior technology as well as slicker marketing”. However, Chinese companies are catching up fast and are winning over Chinese shoppers as overcapacity and competition have intensified and consumers, even in smaller cities, have become more sophisticated.

For the meat category, the safety criteria and keener prices won outright. But the growth agenda is a danger. Branding and differentiation have become vital. In response to this new situation, an alignment with government’s goals, strong marketing, efficiency and partnership with local partners are advocated. There are many good examples of successes from Yoplait to L’Oréal to emulate. Foreign firms “still have some strengths in technology and marketing”.

Globally competitive UK pork

It is increasingly clear that the UK pork sector has become more export focused than at any time in its history. One could quote three sizeable pig abattoirs which generate a clear majority of their business from export due to higher margins. Despite our high pig prices, we are globally competitive in delivering a high welfare, differentiated product to an increasingly sophisticated market place in the Far East, Europe and North America.

News from around the world

FHC Show in China

Second burst for pulled pork

The Pulled Pork campaign will be back for a second bite following the success of its first outing on TV. The campaign set out with the twin aims of rejuvenating the image of pork and increasing the use of shoulder – a less popular cut. It was a huge success, seeing a sales uplift worth £7.8 million following TV advertising and a PR campaign. Pulled Pork was integrated across the entire supply chain and pulled in processors and retailers who had a large part to play in its success. Now the go-ahead has

been given for a second round, which is planned to take place in February/March 2016 and it could be the first part of a double burst with the second a couple of months later.

Recipes, the television advertisements and videos are still available on the LovePork website, lovepork.co.uk.