Thursday, April 20, 2017

Argentina's slow climb back to major protein exporter

An article in local media points to efforts of Argentina to regain its market share in red meat exports globally.
"At the beginning of the 2000s, Argentina was among the top five beef exporters in the world, only surpassed by great cattle powers such as the United States, Brazil and Australia.
However, during the last 17 years he has lost positions in that global ranking to the point that for this year it already ranks it in number 11, surpassed by nations like New Zealand, Canada, India, or partners in Mercosur: Uruguay And Paraguay. According to a document from the United States Department of Agriculture (USDA), for 2017 Argentina is reserved the 11th place, with a level of exports that will be about 250,000 tons, when a total of 9,641,000 tons of beef. According to the official agency of the United States, the three largest global suppliers this year will be India with 1,850,000 tons; Brazil with 1,800,000 tons and Australia with 1,400,000 tons."
http://eleconomista.com.mx/industrias/2017/04/18/exportaciones-carne-bovina-argentina-siguen-baja

In February 2017, beef exports totaled 18 thousand tons of product weight, equivalent to 25 thousand tons of beef, implying an increase of 10 percent over the final figure of the previous month, which fell to 23 thousand tons Weight res In the first two months of this year, shipments have remained firm and relatively stable. This is a consequence of the evolution of both chilled and frozen meat.
http://www.abc-consorcio.com.ar/

Tuesday, April 18, 2017

Australian lamb continues to do well in US market

Australian lamb continues to do well in the crowded retail and foodservice market in USA. USA Australian lamb arrivals to week 14 2017 were up 11% to 18,526 tonnes. Australian lamb was 73% of total arrivals of 25,233 tonnes compared with New Zealand lamb 26%. Only minor supplies from Canada and Iceland have been recorded.

"With the Easter holiday this weekend, lamb and veal retail activity sharply increased by 53.2%. The feature rate followed suit with an increase of 19%, while the special rate also rose by 0.2%. Lamb retail activity index
showed an increase of 60.4%. The amount of roasts showcased shot up by 82.9% while the amount of chops featured sank by 26.7%. Leg cuts, both bone-in and semi-boneless, were the most widely advertised item among the lamb features this week as the general price trend this period was steady to firm."
USDA retail report

3,845 million pounds (1,744 tonnes) of Australian and New Zealand were traded wholesale in USDA report for April 17 2017.

US Beef Board figures for 12 months to February 2017 show lamb at retail had a sales value of US$405 million, a rise of 1%. This compares with sales value falling 3.3% for beef and 6.6% for pork. Lamb volume for the 12 months at US retail (based on scan data) was almost 58 million pounds. Unit sales value of all lamb sold at retail was US$7.03 per lb.

Monday, April 10, 2017

Spanish bovine exports to Indonesia


Indonesia has tried a few different sources of imported beef and buffalo. These include Spain, which according to EU statistics, has exported over 500 tonnes of frozen bovine meat into Indonesia from June 2016 to December 2016. Unit values ranged from a low of Euro 3.34 to Euro 4.25 per kg in the last month of export in December. The latest value of 4.25 Euro is equivalent to 60,000 IDR. Spain is one of the larger EU beef processors after France and Germany. However, like other EU countries, a great deal of the bovine meat is produced from bulls. Ireland and the UK are unusual in that a large percentage of their beef comes from steers and heifers.

EU Meat Market Observatory - Beef & veal

Wednesday, March 22, 2017

China retail meat price trends

Beef and pork prices have trended up but mutton is on the downtrend and chicken prices on a weaker trend according to the National Bureau of Statistics in China.
In Australian dollar terms, retail beef prices are equivalent to AUD$12.50 per kg on average and mutton retail prices average AUD$11 per kg. 

Below table graphic highlights Chinese meat imports in January 2017 compared with the previous year.




Food safety, the meat industry and scandals - a perspective

Recent history is full of scandals in respect to food safety and the latest Brazilian meat inspection scandal is but the latest stage in a long line of unsavory episodes.

Anyone who read "The Jungle", the famous book by Upton Sinclair, which launched the US government oversight of meat inspection, would be familiar with the very poor state of industry practices in the early 20th century in the meat packing districts of Chicago.

Australia - meat substitution scandal 1983. Corruption and criminality and the subject of a Royal Commission. Substitution of horsemeat and kangaroo meat in beef shipments to USA and discovered by US port of entry inspection. Species testing was carried out and it ushered in a range of revised Commonwealth oversight and meat inspection as well as the AUS-MEAT product description system and additional oversight and cost imposts.

USA and Australia - organochloride residues 1987. I was closely involved in this dispute as I was Australian representative of the Australian Meat & Livestock Corporation in New York at the time. It involved cattle grazing on sugar cane and potato remnants in pastures and beef was tainted with DDT and Dieldrin, products which had been banned in USA. The whole beef trade worth $1 billion from Australia to USA was in jeopardy and for a short time there was an embargo placed on Australian beef imports, at that time our largest beef export market.

USA E coli 1993. A deadly outbreak of E. coli 0157 in California in a chain restaurant called "Jack in the Box" which was using both domestic and imported beef.

UK Ireland Europe meat substitution scandal 2013. Corruption and criminality, substitution of horsemeat in meat sold in retail chains and other outlets. Possible breakdown in meat inspection protocols.

China chicken and food scandal OSI Foods 2014. Corruption and criminality. Poor oversight by firms and end users and out of date and contaminated meat and meat products.

Brazil meat inspection corruption scandal March 2017. Corruption, criminality. Dubious oversight of meat inspection and enforcement. Rotten meat found and inspectors dismissed. Implication of large international companies.  Early days.


Sunday, March 5, 2017

Indonesian beef market

Australia's populous closest neighbour is a large beef consumer given it is a developing country. Beef prices remain high in spite of a range of Indonesian government initiatives to keep beef prices stable and preferably around
IDR 80,000.  Recent Australian beef shipments have fallen in line with reduced cattle slaughter following a number of high production years caused by drought. February figures below, source: DAWR
The market takes a wide variety of beef cuts and beef offal and fancymeat, mostly in frozen form, due to the limited cold chain infrastructure and the stage of development. However, supermarkets and food service consumption is rising in line with population increases and relatively strong economic growth.

Government efforts to limit beef price increases in recent years have included relaxation of rules to allow import of Indian buffalo meat and also relaxation of weight limits on slaughter cattle imports from Australia. A wider search for alternative supplies has been conducted with small tonnages imported from as far away as Spain.

Below graphic indicates a range of commodities and shows recent increases in beef prices as well as other commodities. This has revived discussion of possible cartels in relation to the beef market in the country. Source: Jakarta market monitoring agency.

http://www.tribunnews.com/bisnis/2017/03/03/pemerintah-serius-perangi-kartel-daging-sapi TRIBUNNEWS.COM, JAKARTA - The Ministry of Finance signed a cooperation agreement with the Business Competition Supervisory Commission (KPPU) to suppress the price of beef in the market.In monitoring the government, the price of beef is currently very strong cartel practices. You see, in addition to local production, the supply of beef in Indonesia is still filled by imported meat.However, although imports of cattle and meat products increased by up to a dozen times, but prices continue to remain high. This confirms the existence of cartel practices in the meat market.To that end, the government together with the Commission to prepare a fine of up to Rp 25 billion to provide a deterrent effect.

Tuesday, January 3, 2017

Sheep, lamb and goatmeat exports have a bumper year in US market

2016 was a bumper year for Australian sheepmeat and goatmeat in the USA market. USDA statistics show a 34% lift in mutton imports from Australia. Goatmeat imports from Australia increased 20% and Australian lamb imports increased 17%. USA imports of Australian goatmeat reached 19,203 tonnes. MLA Goatmeat report in 2016 noted that in 2015 that the majority of Australian goatmeat was shipped to USA.
Goatmeat carcase is by far the most significant goatmeat item exported to USA market. A breakup to all markets for 11 months by cut is shown below: