Chinese sow herd shrunk by 20 percent

The sow herd in the country even fell by almost 20% in the same period. China slaughters approximately 700 million pigs annually, so a percentage decline of this magnitude is heavy.

African swine fever
The number of pigs in China clearly shows a downward trend, because during the count in February about 5% fewer animals were counted compared to last January. The Ministry of Agriculture bases this result on counts in 400 'counties' (Chinese regions) spread across the country.

The reason for the contraction is the outbreaks of African swine fever in various production regions in the country. The number of reports is officially 112, but there are rumors that the actual number is much higher. The outbreaks initially led to a surplus on the Chinese market, as many producers offered pigs en masse. This also explains the shrinkage in the pig herd.

In the meantime, this surplus has turned into shortage, resulting in rising prices. According to various Chinese analysts, the market development is actually encouraging tightness, because producers are now holding onto pigs and hinting at further price increases.

Consequences noticeable in Europe
European meat exporters also report an increasing Chinese demand for pork. This also exposes the shortage on the European pig market. Partly because of this alley the DCA Exchange Price 2.0 with €0,05 to €1,37 per kilo. The last time this increase was on the boards was more than six months ago.