African swine fever also affects dairy market

There is African swine fever in China, which will also affect the global dairy market. Rabobank expects a fall in the demand for dairy residual flows for animal feed in the short term. On the other hand, dairy exports to China could actually increase in the long term.

Previously released Rabobank We know that the outbreaks of African swine fever could cause pig production in China to fall by 2019% to 25% in 35. China is by far the largest player in the world when it comes to pig production. The country accounts for 50% of global pig production and consumption. The impact of such a percentage decrease therefore weighs heavily.

Expectations
Due to the expected shrinkage of the Chinese pig herd, the demand for pig feed will drop considerably. This in turn has a direct influence on the price of the most important dairy ingredients for animal feed (including whey powder and lactose).

In the long term, dairy exporters will benefit from the situation in China. African swine fever is increasing the demand for beef in the country. This is expected to have an inhibitory effect on the milk productionbecause dairy cows are slaughtered. This in turn offers more sales opportunities for dairy exporting countries.

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

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