Livestock and Meat

On the meat wholesale markets, the demand for beef fell far short of the expectations of the market participants. Beef carcass prices, like cuts, often fell. Due to the catastrophic development for young bull meat, the slaughterhouses sharply reduced the payout prices last week. As a result, the bull fatteners mostly left their animals in the stalls that week. Due to the shortage of supply, the price decline was initially stopped, regionally the companies even had to invest a little more in order to get enough animals for basic needs.

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The Federal Research Center for Viral Diseases in Animals in Riems has confirmed two more BSE cases in Bavaria. It is a female Black and White cattle born on June 21.06.1994st, 20.01.2000 or a female Brown Swiss cattle born on January XNUMXth, XNUMX from Swabia. The animals were examined during slaughter or as part of BSE monitoring. In the final clarification by the Federal Research Institute for Viral Diseases in Animals, a TSE-typical prion protein was clearly detected.

These are the 7th and 8th cases of BSE in 2004 in Bavaria. In 2003 there were 21 cases of BSE, 27 in 2002, 59 in 2001 and five in 2000. Altogether there are 120 cases of BSE in Bavaria.

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Strengthened position in essential amino acids for animal nutrition

Degussa AG, Düsseldorf, acquires all shares in Agroferm Hungarian - Japanese Fermentation Industry Ltd. ("Agroferm"), a wholly owned subsidiary of Kyowa Hakko Kogyo Co., Ltd. ("Kyowa Hakko"), Tokyo. In the field of amino acids for animal nutrition, Degussa will also exclusively license industrial property rights and know-how for L-lysine, L-threonine and L-tryptophan. Upon completion of the transaction, Degussa will sell tryptophan, which is manufactured by a subsidiary of Kyowa Hakko as part of contract manufacturing. It was agreed not to disclose the financial conditions. The acquisition is still subject to the approval of the responsible antitrust authorities.

With the transaction, Degussa is further strengthening its activities in the field of essential amino acids for animal nutrition. The Hungarian company - it has sales of around 25 million euros and around 160 employees - will be integrated into Degussa's Feed Additives Business Unit from the summer of this year.

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Tight supply – rising prices

In April, German slaughterhouses only had a limited supply of slaughter calves from domestic production. The prices paid by the slaughterhouses therefore rose continuously over the course of the month. Only in the last week of April did prices tend to weaken slightly. Interest in veal was lively in view of the Easter holidays, family celebrations and due to the asparagus season, and in some cases preferred lots had to be allocated in the wholesale trade.

At the purchase level of the mail order slaughterhouses and meat products factories, the weighted federal average for slaughter calves billed at a flat rate climbed from March to April by 19 cents to 4,70 euros per kilogram slaughter weight, according to a preliminary overview. This exceeded the previous year's level by 61 cents.

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Slight increase in demand expected in 2004

The organic meat market in Germany continues to be affected by the weak economy. Demand is mostly stagnating, with only a few reports of an increase. However, since excess supply is gradually being reduced, a balance between supply and demand is gradually being restored.

In the current year there will probably only be a slight increase in demand for organic meat. Accordingly, producer prices are also likely to increase only slightly. It remains to be seen to what extent the seasonal fluctuations in demand, such as the barbecue season and summer holidays, will affect organic meat sales.

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Fresh produce predominates at the turkey market

When it comes to poultry purchases by German private households, the preferences for fresh or frozen goods vary greatly. In the first quarter of this year, frozen goods accounted for more than half of the total chicken meat purchases of almost 23.000 tons.
 
If turkey meat is on the shopping list, local consumers clearly prefer the fresh variety. Of the total turkey meat purchases from January to March 2004, which amounted to more than 8.000 tons, frozen turkey meat played only a minor role with less than 1.000 tons.

According to the data from the GfK household panel commissioned by ZMP and CMA, frozen poultry meat is mainly bought in discount stores in Germany. There, 52 percent of frozen chicken meat and 47 percent of frozen turkey meat were purchased in the first quarter of this year.

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The Central Association of Danish Mail Order Slaughterhouses is providing the equivalent of around 1,3 million euros this year for research projects on "healthy, tasty pork" and the importance of meat in preventing obesity, as well as for certain nutrition-related information activities and accompanying projects. These initiatives aim to meet the desire of many consumers to include pork as part of a healthy and nutritionally balanced diet.

In connection with this campaign for a nutritionally appropriate meal plan, the association wants to educate consumers about healthy everyday food and slimming dishes, among other things, through the brochure "Spare fat - it's your choice" and through targeted recipe and information activities on the Internet. In addition, it wants to enter into partnerships with public services, research, social and educational institutions as well as companies and retailers to promote the consumption of healthy and nutritious food.

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More imported, less exported

According to the Federal Statistical Office, Germany imported almost 2003 billion eggs in the form of egg products in 1,29, which was 16,7 percent more than in the previous year. The lion's share was liquid, frozen whole egg and liquid egg yolk. The main suppliers of egg products are the Netherlands; from there, 941 million eggs came to Germany as egg products, 1,5 percent more than in 2002. However, the Dutch share of total imports fell by eleven percentage points to 73 percent most recently. These changes could be due to the avian influenza rampant in the Netherlands in the first half of 2003 and the associated shifts in the flow of goods. Significant quantities of egg products also reached the local market from Italy, France and Belgium.

Imports from third countries, which almost exclusively supply dried egg products, have also increased significantly. The main supplier here is India with the equivalent of 31,6 million eggs, which was 140 percent more than in 2002. Imports from the USA also rose significantly to the equivalent of 12,8 million eggs.

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In 2003, too, frozen food was one of the most successful ranges in the entire German food industry, despite the economic slump in retail and gastronomy. The total consumption of frozen food was almost 2,86 million tons. The industry thus achieved a volume increase of 0,3 percent. Per capita consumption climbed to 34,6 kilograms. Frozen baked goods and frozen vegetables were particularly in demand. Frozen pizzas were also very popular in 2003. This is reported by the German Frozen Food Institute (dti) in Cologne.

Everyone is talking about frozen food: the per capita consumption of frozen food in Germany has climbed by 30 kilograms in the last 22,7 years to 34,6 kilograms in 2003.

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As reported by the Federal Statistical Office, the consumer price index for Germany rose by 2004% in April 2003 compared to April 1,6 and by 2004% compared to March 0,3. This is the highest annual inflation rate since March 2002 (+ 2,0%). In February and March 2004 the annual rate of change was +0,9% and +1,1% respectively. The estimate for April 2004 based on the results from six federal states was thus confirmed.

The significantly higher annual inflation rate in April is mainly due to the fact that the prices for petroleum products rose month-on-month in April 2004, while they had fallen significantly in the same period of the previous year (April 2003 compared with March 2003) (base effect). For the first time this year, the prices for light heating oil and motor fuels in April 2004 no longer had a dampening effect on the annual inflation rate. Without heating oil and motor fuels, the inflation rate in April 2004 would have been 1,5%. Compared to the previous year, petroleum products increased in price by 2,9%, compared to the previous month by 3,4%.

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According to the Federal Statistical Office, in April 2004 the index of wholesale selling prices was 2,4% above the previous year's level. This was the highest year-on-year change since June 2001 (+2,8%). Compared to March 2004, the wholesale price index increased by 0,4%.

Within a month in April 2004, among other things, the wholesale prices for ores, iron, steel, non-ferrous metals and semi-finished products rose (+ 7,3%). These groups of goods have also become much more expensive compared to the previous year (+ 15,9%); The prices for grain, seeds and animal feed increased even more (+24,5%). On the other hand, compared to the previous year, price declines in the wholesale of office machines (– 5,7%) were observed.

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