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1 MARKET NEWS for pig meat Market analysis 10 December Week 50 MARKET SITUATION Europe: Trading in legs is at slightly falling prices. As regards other cuts trade is at unchanged prices. UK: Prices are reported as stable. Demand is reported as stable for both China and Japan. Slaughterings in Denmark Week 46 Week 47 Week 48 Week 1-48 /2017 Total 378, , , % Danish Classification Control Service representing around 98% of all finished pigs and sows slaughtered, excluding culled pigs. FUTURES, USA Chicago ($ per 100 lbs slaughter weight) 7/12 30/11 Change Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Conversion factors: 1 lb = kg $ =

2 EU 2 African Swine Fever According to the EU Commission s reporting system for the outbreak of disease, the following outbreaks of ASF were reported for the following countries and Ukraine up to and including 2 December. Countries Period Year to date 25 Nov - 2 Dec 1 Jan - 2 Dec Pigs Wild boar Pigs Wild boar Estonia Latvia Lithuania ,361 Poland ,224 Italy Ukraine Czech Republic 28 Romania , Hungary Bulgaria 1 4 Belgium Total ,423 4,868 CHINA African Swine Fever New outbreaks of African Swine Fever continue to be reported throughout China. Last week, outbreaks were reported at small farms around Beijing and in the provinces of Sichuan, Guizhou and Shaanxi. This is the first occurrence in Shaanxi province. 22 provinces have now officially reported a total of 80 outbreaks. According to a spokesperson from China s Ministry of Agriculture, the African Swine Fever situation is under control and the restrictions imposed to control new outbreaks have proved so effective that restrictions have been lifted in 35 areas in eight provinces. CHINA Ban on pig production in areas populated with wild boar Reuters reports that China s Ministry of Agriculture has announced that, in efforts to control African Swine Fever, pig production in areas populated by wild boar will be banned. Last month, African Swine Fever was reported among wild boar in the north-east province of Jilin. According to the authorities, the strain of the virus found in wild boar was different from the strain of virus found in pigs and the authorities have now warned against the risk of the new strain infecting pig production. RUSSIA Classical Swine Fever in wild boar Last week, Russia reported three outbreaks of Classical Swine Fever in wild boar in the region of Primorskiy Kray in eastern Russia close to the Sea of Japan.

3 DENMARK 3 Denmark s pig meat exports, tonnes January-September Byproducts Live pigs Processed Canned Bacon Whole and half pigs/sows Cuts Sausages Total Per cent Germany 21, ,521 6, , ,501 2, , Poland 1, , , , UK 5, ,979 34, ,130 8, , Italy 1,338 17, , , Sweden 6, , ,680 3,852 26, Holland 7,822 9, , , France 1,512 1, , , Spain 291 3, ,947 1,011 9, Other EU countries 8,722 9,953 2, ,900 2,821 65, Total EU 54, ,158 21,168 36,802 64, ,495 19,315 1,083, China 120, , , Japan 1, , ,983 1,316 88, USA 1, , ,700 1,016 30, Australia , , South Korea , , , Taiwan , , Ukraine 2, , , Philippines 4, , , Belarus 1, , , Other third countries 9, ,919 1, ,450 4,966 35, Third countries, total 143,758 1,612 15,636 1, ,653 7, , Exports, total 197, ,770 36,804 38,309 64, ,148 26,875 1,480, January-September 2017 Byproducts Live pigs Processed Canned Bacon Whole and half pigs/sows Cuts Sausages Total Per cent Germany 17, ,951 6, , ,616 1, , Poland 3, , , , UK 5, ,237 27, ,802 7, , Italy 1,386 16, , , Sweden 7, , ,727 3,645 26, Holland 8,026 9, , , France 1,143 1, , , Spain 385 3, ,532 1,074 11, Other EU countries 10,965 11,959 2, ,075 2,515 69, Total EU 55, ,765 19,943 29,429 63, ,448 17,237 1,026, China 125, , , Japan 2, , ,120 1,200 89, Australia , , USA 2, , , , South Korea , , , Taiwan 1, , , Hong Kong 1, , , Philippines 3, , Ukraine 3, , Other third countries 6, , ,149 5,682 30, Third countries, total 146, ,643 1, ,924 8, , Exports, total 201, ,684 36,585 30,916 63, ,373 25,274 1,428,

4 Top 10 importers of Danish pig meat according to value The following table lists the top ten countries for Danish pig meat exports ranked according to value for January-September. All pig meat (including live pigs) is included. Jan-Sept Jan-Sept 2017 Value in Value in Country DKK Tonnes DKK Tonnes million million Germany 5, ,333 5, ,011 Poland 3, ,237 3, ,165 Japan 2,530 88,208 2,821 89,629 UK 2, ,930 2, ,959 China/Hong Kong 1, ,880 2, ,385 Italy 1,335 99,497 1,441 91,248 USA , ,300 Australia , ,375 Sweden , ,902 France , ,002 Top 10 total 18,755 1,307,317 21,388 1,261,977 Other countries 2, ,061 3, ,016 Total 21,719 1,480,377 24,499 1,428,993 4 Top 10 importers of Danish pig meat, DKK million Mio. kr jan. - sept. jan. - sept Tyskland Polen Japan UK Kina/Hong Kong Italien USA Australien Sverige Frankrig Germany Poland Japan UK China/Hong Kong Italy USA Australia Sweden France Top 10 importers of Danish pig meat, tonnes Tons jan. - sept. jan. - sept Tyskland Polen Japan UK Kina/Hong Kong Italien USA Australien Sverige Frankrig Germany Poland Japan UK China/Hong Kong Italy USA Australia Sweden France

5 DENMARK 5 Exports of live pigs Jan-Sept The table below shows Statistics Denmark s figures for the export of live pigs for Jan-Sept compared to the same period last year. Piglets < 50 kg. Product code Jan-March April - June July- Sept Jan-Sept Jan-Sept 2017 Poland 1,610,463 1,677,392 1,732,462 5,020,317 4,586,855 Germany 1,613,409 1,689,734 1,639,157 4,942,300 5,083,729 Italy 197, , , , ,058 Holland 118, ,753 99, , ,062 Croatia 24,826 23,862 20,591 69,279 69,951 Czech Republic 19,276 19,372 24,901 63,549 74,884 Hungary 22,139 6,551 10,333 39,023 67,690 Slovakia 16,805 9,855 3,297 29,957 28,707 Other 54,508 32,829 23, , ,667 Total 3,660,362 3,793,648 3,706,875 11,160,885 10,904,896 Pigs and sows kg. Product code Stk. Jan-March April-June July-Sept Jan-Sept Jan-Sept 2017 Germany 21,229 25,659 25,424 72,312 87,780 Spain 9,342 13,738 13,799 36,879 23,302 Belgium 8,183 7,321 6,384 21,888 10,604 Italy 3,282 4,447 5,470 13,199 9,268 France 2,062 2,307 2,384 6,753 9,179 Poland 1,979 1,512 3,056 6,547 7,343 Other 6,146 5,612 5,817 17,575 12,370 Total 52,223 60,596 62, , ,846 Sows > 160 kg. Product code Jan-March April-June July-Sept Jan-Sept Jan-Sept 2017 Germany 6,196 8,419 8,632 23,247 10,717 Italy Total 6,196 8,419 8,632 23,247 10,768 Pigs, breeding stock Product code Jan-March April-June July-Sept Jan-Sept Jan-Sept 2017 Germany 47,950 39,519 41, , ,668 Spain 936 3,549 6,572 11,057 16,950 Slovakia 2,365 1,771 2,328 6,464 7,775 Poland 559 1, ,358 3,363 France ,491 1,842 Belgium ,623 Holland Other 6,022 8,398 8,823 23,243 29,931 Total 58,411 54,920 60, , ,765

6 USA 6 10 largest pig producers The following table lists the 10 largest pig producers (measured in terms of the number of sows) in the U.S. (source: Successful Farming magazine). 10 largest pig producers in the U.S Sows Producer 2017 Per cent change :17 1 Smithfield Foods/WH Group 950, , Seaboard Foods 340, , Pipestone System 251, , Iowa Selected Farms 235, , The Maschhoffs 204, , Prestage Farms 182, , Carthage System 180, , JBS 167, , Christensen Farms 142, , AMVC Management Services 135, , Total 2,787,800 2,676, In addition to the 950,000 sows in the U.S., Smithfield has 148,000 sows in Mexico, 95,000 sows in Poland and 52,000 sows in Romania. In global terms, therefore, Smithfield s sow population totals 1,245,000. Increasing pig production in the U.S. is being driven primarily by expansion in slaughtering capacity. As meat processors have posted good results over the past few years, new investments have been made in slaughtering machinery and expansions of existing systems. With a total of 2,787,800 sows, the 10 largest U.S. pig producers account for 44 per cent of the U.S. s total sow population. CANADA Five largest pig producers in The following table lists the five largest pig farms (measured in the number of sows) in Canada. 5 largest pig producers in Canada Sows Producer 2017 Per cent change :17 1 Olymel 106,000 84, HyLife 84,000 78, Maple Leaf Agri-Farms 74,000 74, The Progressive Group 38,500 38, Provista Agriculture 35,000 34, Total 337, ,

7 CHINA 7 Cockroaches used for crunching kitchen waste Reuters reports that China has begun to use cockroaches to break down kitchen waste. Chinese cities are generating more food waste than they can accommodate in landfills. The newly introduced ban on using kitchen waste as pig feed is spurring the growth of alternative methods of handling kitchen waste. On the outskirts of Jinan, capital of eastern Shandong province, a billion cockroaches are being fed with 50 tonnes of kitchen waste a day. Shandong Qiaobin Agricultural Technology Co. is responsible for operating the plant and plans to set up three more plants next year, aiming to process a third of the kitchen waste produced by Jinan, home to about seven million people. JAPAN Classical Swine Fever The authorities in Japan continue to report new outbreaks of Classical Swine Fever among wild boar in the Gifu region. JAPAN Development in pig meat storage Tonnage Own Imported production volumes Total storage Fresh Frozen Fresh Frozen End January ,843 7, , ,644 End February 17 1,454 16,149 7, , ,104 End March ,433 9, , ,519 End April ,360 8, , ,020 End May ,341 8, , ,202 End June ,974 7, , ,216 End July ,767 6, , ,069 End August ,058 9, , ,066 End September ,244 6, , ,053 End October ,305 6, , ,017 End November ,897 11, , ,626 End December ,129 11, , ,826 End January ,805 9, , ,758 End February ,485 8, , ,816 End March ,511 7, , ,974 End April ,083 6, , ,966 End May ,366 7, , ,286 End June ,790 5, , ,521 End July ,772 6, , ,037 End August ,495 5, , ,030 End September ,391 4, , ,559 End October ,418 5, , ,907 ISRAEL Foot and mouth disease Last week, the authorities in Israel reported two outbreaks of foot and mouth disease among wild boar and in a herd of cattle. S:\EA\Svin\Markedsnyt\\Markedsnyt uge 50.docx / 10. december

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