Mercedes Vega, General Director for Spain, Italy & Portugal, Genesus Inc.
The Spanish market is in a totally unusual situation at this time of year. We find a price of € 1,451 / kg live and weighing 110.53 kg live and 85.77 kg carcass, both the highest of the last 5 years in this week of October, as can be seen in the comparison of the graph.
Data source: Mercolleida
There is the strong demand due to two very important factors:
The packing plant of the Pini Group has started operating last August, absorbing part of the production.
The packing plants number to export to China have increased. Currently there are 35 certified plants. Exports are being slowed down only because freezing capacity has been reached.
The weight of processing is significantly higher due to demand and because the producer is interested in optimizing its costs by increasing the sales weights.
All production that is not going to export to Asia, stays in the EU (fresh meat) at prices that do not help the industry to recover sales margins as usual in previous years.
In the first seven months of the year, exports have increased 9.2% compared with 2018, (1,119,583 tons in 2018 vs.1,222,188 tons in 2019).
Export to Asia have increased from 32.75% (2018) to 38.40% (2019) of total exports. Exports to China lead the way with an increase from 15.80% (198,424 tons in 2018) to 22.4% (306,645 tons in 2019) from total exports.
The EU still accounts for 50% of exports, but in 2015 France was our largest market with 347,601 tons per year, while China imported already 306,645 tons from January to July this year
2019 vs 2018 (January to July)
Data source: Datacomex
ZAFRA INTERNATIONAL LIVESTOCK FAIR and
IX Technical Conference on Iberian Pork
This week we had the opportunity to attend the IX Technical Conference on the Iberian Pig organized by IngaFood, a leading company in the production of Iberian pig in the Iberian Peninsula. These days are a meeting point and debate between farmers and professionals regarding issues of relevance of the Iberian hog sector.
Interesting topics were discussed as “Marketing of pork meat. Expansion Opportunities.“ by Mr. Manuel García Lorenzo (General Director of INGA FOOD and President of INTERPORC); and “New commercial horizons for the Iberian in Extremadura” by Mr. Fernando Rodríguez (Director-General Industrias Cárnicas Villar, Costa Food Group). We were also presented the project of a new processing plant that will begin construction before the end of the year with a capacity to process 400,000 hogs a year. Seven pork industry companies are involved as partners in this important project for the area and the Iberian sector. It will be in Zafra (Badajoz) and will be certificated for export to countries outside the EU.
From here, I would like to congratulate IngaFood for the excellent organised event, for the capacity of the call, that development year by year, for their enthusiasm, and for giving the opportunity to all attending to recognise and share the progress of Iberian Pig Production as meat of excellent quality worldwide not only in Spain but worldwide.
Get acquainted with the
Global Mega Produce
A program of recognition led by National Hog Farmer sponsored by Genesus Inc.
The origin of the COSTA FOOD GROUP is linked to Piensos Costa, a leading company in the Spanish pork industry founded in 1966 in Fraga (Huesca). The business began its activities by trading grain; since then, it has applied models of integration, expansion and growth that have allowed it to strengthen its position as a swine industry leader. Its first foray into integration with pig farming marked the beginning of an innovative business model that still lives on today with Piensos Costa providing shared service coverage to farmers (the supply of animals and feed, veterinary monitoring, etc.). Today, Grupo Empresarial Costa, which includes the meat-producing holding COSTA FOOD GROUP, operates in 107 countries and has an annual turnover of $880 million.
COSTA FOOD GROUP, the meat-producing holding of Grupo Empresarial Costa, is a leader in the domestic and European agribusiness sectors. It is made up of Piensos Costa, Costa Food Meat, Villar, Casademont and La Nuncia brands.
Since 2018, Piensos Costa has been nominated among Genesus-National Hog Farmer’s sponsorship select group of Global Mega Producers, a list comprising 31 operators around the world with over 9 million sows.
Costa’s international expansion plan is based on a model of strategic partnerships with local companies to work together in areas such as technology, sales, legal aspects and logistics, for example the recent successfully implemented by Casademont in Russia.
Costa Food Group numbers:
880 million dollars expected aggregate turnover in 2019
38.5 million dollars investment to be implemented in 2019
107 countries exported to
8,820,000 lb/day of feed 170 t/hr of feed
Over 650 integrated farms
30,000 tons processed meat/year
120,000 sows- adding 10,000 more sows by the end of 2019
287 million pounds of pork processed/year
3,000,000 market hogs/year
Over 1,250,000 Serrano hams/year
Photo left to right: Mercedes Vega, General Director for Spain, Italy & Portugal; Eduardo Costa, Production Manager Piensos Costa; Jorge Costa, President-CEO, Piensos Costa and Jim Long, President-CEO, Genesus Inc.