China

China's pig herd is down by 60 million head

Pork

A process of liquidation due to low prices and the ASF outbreak have taken their toll on the world's largest pig herd.

Posted on Dec 18 ,07:52

China's pig herd is down by 60 million head

Inside sources from China's pig industry affirmed that the estimate swine feed tonnage countrywide is down 10% from a year ago. That also means a decline in the world's largest pig herd, according to Jim Long, President-CEO of Genesus Inc., Canada.
"Last week a good source in China’s feed industry told us that the estimate swine feed tonnage countrywide is down 10% from a year ago. This we expect in a combination of 1.5-1.7 million sows liquidated due to low prices prior to African Swine Fever (ASF) outbreak. The rest we expect is from ASF complications. 10% would be roughly 60 million fewer pigs over a year. That's a big number!

As we go forward the hog prices in China will be the indicator of supply. Currently, it stands at about CNY13.3 per kilogram ($1.92). Any price surge would indicate a further cut in supply in China due to transport restrictions. There is a range CNY10 ($1.45) to CNY19 ($2.75) from province to province translated in a $150 per head difference. Some provinces are making huge profits; other provincial producers are losing big. We expect major liquidation ongoing in low market price provinces", declared Mr Long.
In the last 4 months, China has been confronted with more than 90 ASF outbreaks but there are suspicions that not all the cases have been reported through the official channels. Currently, 22 provinces in China have reported ASF outbreaks.

 NEWSLETTER - Stay informed with the latest news!

Comments





Similar articles

Australia

Australia expects disruption in domestic meat market

New safety measures have been imposed in Victoria (Australia) by the local government to reduce t...


Read more Read more
India

India's beef exporters suffer losses of $668 million

The second quarter of the year shows a grim image for the beef industry in India. Losses may come...


Read more Read more
USA

Tyson Foods plans thousands of COVID-19 tests per week

Tyson Foods announced that intends to intensify the security measures in its US plants by doing t...


Read more Read more
Websolutions by Angular Software and SpiderClass