China approved 6,200 new pig farms
6,200 new swine farms have been approved by the Chinese government for construction in 2020, as authorities would like to limit pork imports, which have already surpassed during H1 total volumes imported in 2019. "According to the latest data released by the GACC, the import of pork and by-products in July was 560,000 tons up 87.1% year on year. Pork imports alone amounted to 430,000 tons, up 120.2% year on year," said Lyle L. Jones, Director of Sales China, Gensus Inc, in his latest report. A new outlook for 2019 talks about pork imports to reach 3.9 million tons for the full year, almost double than the volume imported in 2019.
Restocking of the pig farms seems to enjoy not only governmental subsidies but also large investments from abroad. Domestic production is expected to recover during the second half of 2020 but may still be below normal levels as ASF has not been eradicated and is still reoccurring, making restocking even more challenging. Also, Covid-19 is now well under control in China so pork consumption in restaurants, schools, and other businesses is rapidly recovering so demand is expected to increase at the same time.
This year, so far, China has imported 0,637 head of swine genetics from foreign countries. "It’s predicted China will import 15,000 head by the end of 2020 making a new record for swine genetic imports. With 26 million breeding sows in China, even 15,000 head is a small number.
As a result of the shortage of breeding pigs, many large scale producers implemented a strategy to save back market gilts from their commercial farms for restocking sow units. No doubt the productivity of these animals will not be at the same level as high-quality genetics. We are hearing reports of 20-30% lowered production with these market gilts versus high-quality genetics," added Mr Jones. Pork prices have started to rebound since May and have reached $5.50 in mid-September as the foodservice sector is slowly increasing demand for pig meat.
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