epp congress 2011 in münster - pig producer · manten 12 - 13 16 – 17 simon, wittlich 8,5 18...

Germany´s role in pan-european trade

EPP Congress 2011 in Münster

Thursday 19.05.201115:00 Uhr

Lower SaxonieLower Saxonie

Dr. Albert Hortmann-ScholtenDepartment 3.1Business and marketChamber of Agriculture Lower SaxonyOldenburg

AHS FB 3.12011.05.19 EPP-Congress MünsterNr.: 1

Oldenburg

Agenda Germany´s role in pan-european trade

Trends and opportunities of the german pig productionTrends and opportunities of the german pig production

figures for production, import and export figures for production, import and export

structure of slaughterhouse sector, growth plans

Pricing system of the slaughter pig market

perspectives for the next years


Pi l ht b i GPig slaughter numbers in Germany All in Germany slaughtered (foreign and domestic) pigs

Forecast 2011

DestockingFMD

Eastern(EU27)enlargement Destocking

GDR

Swine fever

in NLe a ge e t

fever


S lf ffi i t (%) f k i G d EUSelf-sufficiency-rate (%) for pork in Germany and EU


C ti f k i G It l d EU 25/27Consuption of pork in Germany, Italy and EU 25/27


Feed import of Brake

Distributing 2 million tonnes a year

good infrastructureg y

50% by road (South Oldenburg)50% by rail or inland waterway transport

highway/waterway

modern

ports/harbours

iin

in North Westin North - West

GermanyAHS FB 3.12011.05.19 EPP-Congress Münster

Nr.: 6

Germany

P t f B k t th i W “Port of Brake at the river „Weser“

Challenge: Deepening of the river up to 12.80 m To make it usable for panmax bulkersTo make it usable for panmax bulkersImportant influence on feed pricesCorn, grain, soybeans etc.

jNew project

Deep-water-port


Jochen Klein; Mai 2011 Wilhelmshaven

S f th i th t 40Some reasons for growth in the past 40 years very often small arable-farms with poor soil In history cheap grain prices, which could not generate

enough income but allowed a profitable pig production family working constitution in traditional farms large family working constitution in traditional farms, large

families with a many children ======= cheap labour, good agricultural skills and know how in the sectorg g ecellent infrastructure (highway/waterway), good

connection to the world grain and feed componend markets (8 to 10 € feed cost advantage/fattener)markets (8 to 10 € feed cost advantage/fattener)

High standard of feedqualitiy and intensive competition of feed mills

tax privilegs of agriculture managed operations and tax privilegs in the case of descendence a farm to the next generation


generation

S f t b t k i i GSome facts about pork processing in Germany

In General: Small and medium enterprisesIn General: Small and medium enterprises

About 16.000 butchers for local marketswith about 27,000 outlets; mostly in South/South West Germanyy y(slaughtering, cutting and processing units)

Ab t 250 di d l i b tt i About 250 medium and large size abattoirs

About 600 cutting plantsAbout 600 cutting plants

About 2.300 processing plants


250 medi m and large si e abattoirs mainl250 medium and large size abattoirs mainlyin North-West-Germany


T 10 G i l ht iTop 10 German pigs slaughter companies


C fConcentration of the pig slaughtering industry in Germany since 2004

80%

Top 10

59,3 Mio.

75 %

70%

Top 10

- - - - Trend

75 %

60%54 %

50%

Top 340%

2004 2005 2006 2007 2008 2009 2010 2011 2012

Top 3


Quelle: LWK / ISN nach Unternehmensangaben

Groth Plans of German slaughterhouse companiesin next 18 month in 1.000 Units/weekSlaughterhouse abattoirs Capathety Week Groth plans target / week BMR, Garrel 27,5 32

D & S, Cappeln 12,0 ???

D & S, DC (DK) Essen 63,0 DC plans 80Dühringer Fleischkontor 23 - 26 23-26

EGO, Georgsmarienhütte 10 - 11 13

Goldschmaus, Garrel 30,0 30

Manten 12 - 13 16 – 17

Simon, Wittlich 8,5 18

Tönnies, Rheda 130 - 135 180

Tönnies, Weissenfels 50,0 80

Tummel, Schöppingen 22 - 23 25

Vion, Emstek 38,0 50

Vion, Lingen 17 - 18 22 – 25

Vogler (insgesamt) 40,0 45 – 50

Weidemark, Sögel 33,0 1. step 40 / 2. step 50 / 3. step 80

Wernke, (Sprehe) CLP 8,5 19,2

Westfleisch (insgesamt) + Barfuss 122,0 130 - 140 (mainly in Coesfeld)


(LWK Survey from April 2011)

ca. 647 - 659 ~ ca. + 20 %

i h d i EU i

Which region can produce more pigs in the next future???Who will meat the expansive demand of the german meat industry?

pig herds in EU regions DK12,5 Mio.PP ±0Fat.

S-H1,5 Mio.

Green region 41 million pigs

Region brown 10.3 million pigs

Fat.

NDS8,3 Mio.

NRW

PL14,9 Mio.

PP ±0Fat. ± 0

Piglet production = PPfattening = Fat

Deutschland

NRW6,4 Mio.

NL12,3 Mio. Germany

Fat. ± 0

PP PP ±0Fat ±0

fattening = Fat.

BY3,5 Mio.BW

2 1 Mi

Germany26,5 Mio.

B6,4 Mio.

PP Fat.

PP ± 0Fat.

Fat ±0

2,1 Mio.

Swizerland

Austria3,1 Mio.

FR14,1 Mio. PP

Fat. PP

PP Fat.


source: Statistisches Bundesamt Nov. 2010; EU Juli 2010

S e a d1,6 Mio.

Fat.

Marketing opportunities for pigs in GermanyFarmers have the choise to sell their pigs on different ways

42 %

3000 Livestock

traders

25 %

(Limited company)

Slaughter100 Pi25 % Slaughter house

100 Pig farmers

cooperative

30 000 Pig

farmers

25 % 60 Pig producers

8 % di t l t

producers association(VEZG Retail Price)


8 % directplacement

Rends-

Members of the „union of producers associations for ■** *

Leizen

Rendsburg

Marschen-land

VzFHoya * livestock and meat e.V.“(VEZG)

*** **

***** Fläming-Fleisch

Altmark**VzF

Minden

Steyerberg

Hoya

Sulingen*

C f ld

Hamporc

* *

* Main focus on piglet-marketingRheinlandBorken

Coesfeld

LippborgPaderborn

Sonsbeck

Main focus on pig and piglet marketing

■ Comitees office

Alten-burg

Oldenburg

german legal basis: for this unique pricing

Hohen-lohe/Franken

Franken /

ESO Knölling

VZ for this unique pricing system is

„market structure law“

SüdostbayernPocking

Schwaben

Waldkraiburg

Schleker /Ehingen / Graißmaier

OberbayernPfaffenhofen

Stuttgart


Stand: April 2011

„market structure law

Tasks of the VEZG

regularly:• Retail price: market for slaughter pigs• Retail price: „M“ slaughter sows Thursday 14 o`clockp „ g y• Price conference on every Friday at 12 o`clock

• (Retail price: market for piglets 28 kg 200 groups) • (Price conference on every Monday at 14:00 o`clock)(Price conference on every Monday at 14:00 o clock)

• Price information two times the week


Price information two times the week

The formation of the "Vereinigungspreis"


P i i f k i th EUPrice comparison for pork in the EUprices/100 kg in € - colt


12,3

4 7SVG in Süd-OLDK

Ferkel

Piglet im- andOst-deutschland

4,7SVG in Süd-OL30-35 Prozent

Ferkel6,7 Mio.

NL-Ferkel (6,3 Mio.)= 3,3 Mio. surplus exports in 2010

7,0

nach DE 1,9 Mio.Germany Nordwest-

deutschland

-11,6

1,5 Mio pigletsSüdwest-

davon in BayernsurplusSüd-

deutschland

deutschland

Ost- S-5,1

davon in Bayern

Percentage change

surplus1,8 Mio.

-22,3 -6,7

Ost SAnzahl Schweine

Anzahl Sauen-22,3

1999 – 2009 ohne Stadtstaaten


Quelle: AMI; PVE, BMELV, FAL-37,3 -24,8

Challenge “piglet supply”

Up to 2015 we loose at least one third of the EU sow population specially in GB, IR, FR, SP and Eastern Europe (16 up to 10 mio sows ??)


The implementation of the new EU regulation in swineThe implementation of the new EU-regulation in swine housing in 2013Q ti i l t 2010 H f l d f lfill ll f EUQuestion in late 2010: How many farms already fulfill all of EU requirements (including group housing of sows)Denmark 65 - 70 % of the sow placesDenmark 65 70 % of the sow places(Nds, SH + NRW) 60 - 65 % of the sow places Southern Germany 30 - 40 % of the sow placesBE/NL/Lux ~ 70 % of the sow placesSpain ~ 10 % of the sow places - but 20 % sowsFrance ~ 27 % of the sow placesIrelands ~ 35 % of the sow placesPoland ~ 70 - 80 % (professional large companies) Small farmers (20 sows limit) 5 - 10 %


(20 sows limit) 5 - 10 %

W k i t f G i d tiWeak points of German pig production

densely populated livestock areas

small size farms (cropland + livestock)

farm growth is necessary but in some regions nearly impossible farm growth is necessary but in some regions nearly impossible

the German society becomes the biggest enemy of the sector

a lot of unprofessional producers a lot of unprofessional producers

high costs of land (rent/buying costs) driven by the „biogas-sector“

pig diseases cause still a lot of problems pig diseases cause still a lot of problems (PRRS, AP, Ileitis etc.)

unprofessional trading habits (to many pig dealers)p g ( y p g )

pig meat quality problems/security --- salmonella etc. - -


Strong points of German pig production

fair feed prices in the past (danger – biogas) is pushing feed grain prices at the moment between 195 - 220 €/t and land price

high level of competition between ~ 200 slaughterhouses

low wages in slaughterhouses/meat industry high competition

high slaughter weight 96- 98 kg/pig low processing costs high slaughter weight 96 98 kg/pig low processing costs

good infrastructure (waterways, highways modern harbours)

good trade relations to Eastern Europe

i il b l f i h it privileges by law of inheritance

rel. low financial obligations of pigfarmers compared to DK/NL


perspectives for the next years-will Germany keep its leading role???

EU - Gross production of pigs - 2011 forecast s

148,1 Mio. Pigs58 %= 58 %

259 258256

252

256256

246

2006 2007 2008 2009 2010 2011

Pig total production = EU 27


2006 2007 2008 2009 2010 2011

Biggest challenge of the future:social acceptance of meat consumption and the meat sectorsocial acceptance of meat consumption and the meat sector


NGO´ Wh d th t t ??NGO´s: Where do they want us to go ??Sure, it is posible to feed the peolpe

ith t d i lt dwithout a modern agriculture and meat sector.

history shows, it functionend y ,

already in the past!!!

AHS FB 3.12011.05.19 EPP-Congress MünsterNr.: 27 www.diefleischexperten.de

Which is the right way to feed people??Which is the right way to feed people??

Thank you very much


for your attention !!

epp congress 2011 in münster - pig producer · manten 12 - 13 16 – 17 simon, wittlich 8,5 18...

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