The Chinese government is urging local governments to provide subsidies to pig farmers. The aim is to maintain pig production in the country, which has shrunk considerably due to the outbreaks of African swine fever.
It is well known that pig production in China is under pressure. The total pig herd in February was considerably lower than in the same month 1 year earlier and also the sow herd showed a significant decline. This is mainly due to the many outbreaks of African swine fever.
In order to maintain pig production in the country, the Chinese government has decided to provide subsidies. These will largely be provided to sow farmers, in particular because they determine the maximum number of pigs that can be kept. The amount of the grants has not been disclosed.
splits
The Chinese government is in a proverbial split with regard to African swine fever. On the one hand, the country wants to prevent the spread of the animal disease as quickly as possible, but on the other hand pig production must also remain high. These 2 things often clash.
At the same time, the measures to slow down the spread of the virus result in restrictions on production and slaughterhouses; think of transport bans and the culling of pigs. This disrupts the pig trade and also ensures that the cost price rises, which puts pressure on the margins of the pig farmers and the slaughterhouses.
Rules
The major European pig countries are closely monitoring the situation in China, and have asked the country to comply with the rules of the World Health Organisation. This means that it is not only examined whether a country is struggling with animal disease, but also whether the animal disease only occurs among wild boars. If that is the case, the country may still be able to export pork. In this way, the European countries hope that China will lift the import ban on meat from Belgium, for example.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/varkens/ artikel/10881798/china-trek-portemonnee-voor-varkensproductie]China pulls wallet for pig production[/url]
The distance to China is unfavorable for Europe. America has an advantage despite import duties on pork.