Chinese capital closes 321 pig farms

Beijing, the capital of China, has closed 321 pig farms in the past year. The reason for this decision is to protect the environment and drinking water in the area. Production shifts to less populated areas.

In and around Beijing, the number of pigs fell by more than 12% last year to approximately 2,4 million. Pig keeping is now prohibited on more than 5.200 square kilometers, approximately 1/3 of the city area. In addition to the stricter environmental requirements, the falling pig price in China, pig farmers decide to stop.

Head northeast
A number of companies have moved to northeastern China to continue operations there. In this less populated area it is easier to increase scale. The Chinese government encourages pig farming there; Integrations that take care of the entire production chain (from feed to slaughter) are particularly welcome. Also Guangdong Wen's Foodstuff, China's largest pig integration company, has growth plans in this area.

Analysts expect the number of pigs in northeastern China to double to 120 million in the coming years. It is reported that around 20% of China's pig production will be relocated in the coming years. In terms of size, this is equal to the number of pigs slaughtered per year in the Netherlands USA. However, sounds can be heard that the transition too quickly goes. 

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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