Germany´s role in pan-european trade
EPP Congress 2011 in Münster
Thursday 19.05.2011
15:00 Uhr
Lower Saxonie
Dr. Albert Hortmann-Scholten
Department 3.1
Business and market
Chamber of Agriculture Lower Saxony
Oldenburg
2011.05.19 EPP-Congress Münster
Nr.: 1
AHS FB 3.1
Agenda Germany´s role in pan-european trade
Trends and opportunities of the german pig production
 figures for production, import and export
 structure of slaughterhouse sector, growth plans
 Pricing system of the slaughter pig market
 perspectives for the next years
2011.05.19 EPP-Congress Münster
Nr.: 2
AHS FB 3.1
Pi slaughter
Pig
l
ht numbers
b
in
i Germany
G
All in Germany slaughtered (foreign and domestic) pigs
Forecast 2011
Destocking
FMD
in NL
Eastern(EU27)
enlargement
e
a ge e t
GDR
Swine
fever
2011.05.19 EPP-Congress Münster
Nr.: 3
AHS FB 3.1
S lf
Self-sufficiency-rate
ffi i
t (%) ffor pork
k iin G
Germany and
d EU
2011.05.19 EPP-Congress Münster
Nr.: 4
AHS FB 3.1
C
Consuption
ti off pork
k iin Germany,
G
Italy
It l and
d EU 25/27
2011.05.19 EPP-Congress Münster
Nr.: 5
AHS FB 3.1
Feed import of Brake
Distributing
g 2 million tonnes a yyear
50% by road (South Oldenburg)
50% by rail or inland waterway
transport
good infrastructure
highway/waterway
modern
ports/harbours
in
in North - West
Germany
2011.05.19 EPP-Congress Münster
Nr.: 6
AHS FB 3.1
P t off Brake
Port
B k att th
the river
i
„Weser“
W
“
Challenge:
Deepening of the river up to 12.80 m
To make it usable for panmax bulkers
Important influence on feed prices
Corn, grain, soybeans etc.
New project
j
Deep-water-port
Wilhelmshaven
2011.05.19 EPP-Congress Münster
Nr.: 7
Jochen Klein; Mai 2011
AHS FB 3.1
S
Some
reasons ffor growth
th in
i the
th pastt 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,
farms large
families with a many children ======= cheap labour,
g
good agricultural
g
skills and know how in the sector
 ecellent infrastructure (highway/waterway), good
connection to the world grain and feed componend
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
2011.05.19 EPP-Congress Münster
Nr.: 8
AHS FB 3.1
S
Some
facts
f t about
b t pork
k processing
i in
i Germany
G
 In General: Small and medium enterprises
 About 16.000 butchers for local markets
with about 27,000 outlets;
mostlyy in South/South West Germanyy
(slaughtering, cutting and processing units)
 About
Ab t 250 medium
di
and
d large
l
size
i abattoirs
b tt i
 About 600 cutting plants
 About 2.300 processing plants
2011.05.19 EPP-Congress Münster
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AHS FB 3.1
250 medi
medium
m and large si
size
e abattoirs mainly
mainl
in North-West-Germany
2011.05.19 EPP-Congress Münster
Nr.: 10
AHS FB 3.1
T 10 G
Top
German pigs
i slaughter
l
ht companies
i
2011.05.19 EPP-Congress Münster
Nr.: 11
AHS FB 3.1
Concentration off the pig slaughtering industry in
C
Germany since 2004
59,3 Mio.
80%
Top 10
75 %
70%
- - - - Trend
60%
54 %
50%
Top 3
40%
2004
2005
2006
2007
2008
2009
2010
2011
2012
Quelle: LWK / ISN nach Unternehmensangaben
2011.05.19 EPP-Congress Münster
Nr.: 12
AHS FB 3.1
Groth Plans of German slaughterhouse companies
in next 18 month in 1.000 Units/week
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 80
Dühringer Fleischkontor
23 - 26
23-26
EGO, Georgsmarienhütte
10 - 11
13
30,0
30
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
122,0
130 - 140 (mainly in Coesfeld)
ca. 647 - 659
~ ca. + 20 %
Slaughterhouse abattoirs
Goldschmaus, Garrel
Manten
Westfleisch (insgesamt) + Barfuss
2011.05.19 EPP-Congress Münster
Nr.: 13
(LWK Survey from April 2011)
AHS FB 3.1
Which region can produce more pigs in the next future???
Who will meat the expansive demand of the german meat industry?
pig
i herds
h d in
i EU regions
i
DK
12,5 Mio.
PP ±0
Fat. 
Green region 41 million pigs
S-H
1,5 Mio.
Region brown 10.3 million pigs
Piglet production = PP
fattening
= Fat.
Fat
NRW
6,4 Mio.
NL
12,3 Mio.
B
6,4 Mio.
FR
14,1 Mio.
source: Statistisches Bundesamt Nov. 2010; EU Juli 2010
2011.05.19 EPP-Congress Münster
Nr.: 14
PL
14,9 Mio.
NDS
8,3 Mio.
PP
±0
Fat
±0
Deutschland
PP 
Fat. 
Germany
26,5 Mio.
PP ± 0
Fat. 
PP
Fat.
PP ±0
Fat. ± 0
BW
2 1 Mi
2,1
Mio.
BY
3,5 Mio.
Austria
3,1 Mio.


Swizerland
S
e a d PP
1,6 Mio. Fat.


PP

Fat. 
AHS FB 3.1
Marketing opportunities for pigs in Germany
Farmers have the choise to sell their pigs on different ways
42 %
3000
Livestock
traders
(Limited
company)
30 000
Pig
farmers
25 %
100 Pi
Pig
farmers
cooperative
Slaughter
house
60 Pig
producers
(VEZG Retail Price) association
25 %
8 % di
directplacement
t l
t
2011.05.19 EPP-Congress Münster
Nr.: 15
AHS FB 3.1
Rends
Rendsburg
*
■
* ** *
*
**
*
*Hamporc
**
*
* *
C
Coesfeld
f ld
Marschenland
Hoya
Members of the „union of
Leizen
producers associations for
VzF
Sulingen
*
Steyerberg
livestock and meat e.V.“
Altmark
Fläming-Fleisch
Minden
(VEZG)
Borken
Paderborn
Lippborg
Rheinland
Sonsbeck
*
Altenburg
Main focus on pig and
piglet marketing
■
ESO Knölling
Hohenlohe/
Franken
VZ
Stuttgart
Schleker /
Ehingen /
Graißmaier
Franken /
Schwaben
Südostbayern
Pocking
Oberbayern
Pfaffenhofen
Main focus on pigletmarketing
Waldkraiburg
Comitees office
Oldenburg
german legal basis:
for this unique pricing
system is
„market structure law“
law
Stand: April 2011
2011.05.19 EPP-Congress Münster
Nr.: 16
AHS FB 3.1
Tasks of the VEZG
regularly:
• Retail price: market for slaughter pigs
price: „„M“ slaughter
g
sows Thursday
y 14 o`clock
• Retail p
• Price conference on every Friday at 12 o`clock
• (Retail price: market for piglets 28 kg 200 groups)
o clock)
• (Price conference on every Monday at 14:00 o`clock)
• Price information two times the week
2011.05.19 EPP-Congress Münster
Nr.: 17
AHS FB 3.1
The formation of the "Vereinigungspreis"
2011.05.19 EPP-Congress Münster
Nr.: 18
AHS FB 3.1
P i comparison
Price
i
for
f pork
k in
i the
th EU
prices/100 kg in € - colt
2011.05.19 EPP-Congress Münster
Nr.: 19
AHS FB 3.1
DK
Ferkel
6,7 Mio.
SVG in Süd-OL
30-35 Prozent
12,3
47
4,7
Ostdeutschland
Piglet im- and
7,0
NL-Ferkel
(6,3 Mio.)
= 3,3 Mio.
nach DE
exports in 2010
surplus
 1,9 Mio.
-11,6
Germany
Nordwestdeutschland
1,5 Mio piglets
Südwestdeutschland
surplus
1,8 Mio.
davon in Bayern
Süddeutschland
-5,1
Percentage change
OstOst
Anzahl Schweine
-22,3
-6,7
-22,3
S
Anzahl Sauen
1999 – 2009 ohne Stadtstaaten
-37,3
2011.05.19 EPP-Congress Münster
Nr.: 20
-24,8
Quelle: AMI; PVE, BMELV, FAL
AHS FB 3.1
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 ??)
2011.05.19 EPP-Congress Münster
Nr.: 21
AHS FB 3.1
The implementation of the new EU-regulation
EU regulation in swine
housing in 2013
Question
Q
ti in
i late
l t 2010:
2010 How
H
many ffarms already
l
d fulfill
f lfill all
ll off EU
requirements (including group housing of sows)
Denmark
65 - 70 % of the sow places
(Nds, SH + NRW)
Southern Germany
60 - 65 % of the sow places
30 - 40 % of the sow places
BE/NL/Lux
~ 70 % of the sow places
Spain
~ 10 % of the sow places - but 20 % sows
France
~ 27 % of the sow places
Irelands
~ 35 % of the sow places
Poland
Small farmers
(20 sows limit)
~ 70 - 80 % (professional large companies)
2011.05.19 EPP-Congress Münster
Nr.: 22
5 - 10 %
AHS FB 3.1
W k points
Weak
i t off G
German pig
i production
d ti

densely populated livestock areas

small size farms (cropland + livestock)

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

high costs of land (rent/buying costs) driven by the „biogas-sector“

pig diseases cause still a lot of problems
(PRRS, AP, Ileitis etc.)

p
trading
g habits (to
( many
y pig
p g dealers))
unprofessional

pig meat quality problems/security --- salmonella etc. - -
2011.05.19 EPP-Congress Münster
Nr.: 23
AHS FB 3.1
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 9696 98 kg/pig low processing costs
 good infrastructure (waterways, highways modern harbours)
 good trade relations to Eastern Europe
 privileges
i il
by
b law
l
off inheritance
i h it
 rel. low financial obligations of pigfarmers compared to DK/NL
2011.05.19 EPP-Congress Münster
Nr.: 24
AHS FB 3.1
perspectives for the next years-will Germany keep its leading role???
EU - Gross production of pigs - 2011 forecast s
148,1 Mio. Pigs
= 58 %
259
258
256
256
252
246
Pig total production = EU 27
2006 2007 2008 2009 2010 2011
2011.05.19 EPP-Congress Münster
Nr.: 25
AHS FB 3.1
Biggest challenge of the future:
social acceptance of meat consumption and the meat sector
2011.05.19 EPP-Congress Münster
Nr.: 26
AHS FB 3.1
NGO´ Where
NGO´s:
Wh
do
d they
th wantt us to
t go ??
Sure, it is posible to feed the peolpe
without
ith t a modern
d
agriculture
i lt
and
d
meat sector.
historyy shows,, it functionend
already in the past!!!
2011.05.19 EPP-Congress Münster
Nr.: 27
AHS FB 3.1
www.diefleischexperten.de
Which is the right way to feed people??
Thank you very much
for your attention !!
2011.05.19 EPP-Congress Münster
Nr.: 28
AHS FB 3.1