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News African swine fever

African swine fever will cost China dearly

26 September 2019 - Kimberly Bakker

Figures from a Chinese professor show that the African swine fever outbreak in China has already caused more than $140 billion in direct losses. In addition, the pig price in the country has risen again in recent weeks.

Li Defa, a lecturer at the Agricultural University of China and head of the College of Animal Science and Technology, writes that the outbreaks of African swine fever in China will cost the country dearly. According to him, the animal disease has already caused more than $140 billion in direct losses. Defa has not yet included the animal feed industry and retail sector in these calculations.

High prices
The outbreaks of the virus are not only causing heavy losses, but also record high pig prices. In mid-September, the price stood at 26,68 yuan per kilo (about €3,41 per kilo), making the price about 48% above the 5-year average (€2,36 per kilo). Since week 32 of this year, the average Chinese pig price has increased by 7,47 Chinese yuan (+38%).

In an effort to stabilize prices and feed domestic supply, the overheid promised to increase pork purchases on foreign markets (including from the United States and the European Union). In addition, it launched 10.000 tons of pork from state reserves last week.

South Korea hit by outbreaks
Although the animal disease has only been prevalent in South Korea for 1 week, the country is already weighed down under the virus. On Wednesday, September 25, the country's government reported that a sixth case of African swine fever had been found in the country. This latest outbreak was found in a city near the border with North Korea, reports the Ministry of Agriculture in the country.

In addition, the Ministry of Agriculture says that a seventh case is currently being investigated. Since Tuesday September 24, 20.000 animals have been culled and it is expected that another 30.000 will be added in the short term. In comparison, that is about 0,4% of the total South Korean pig population.

Bulgaria shifts production
A report by the Global Agricultural Information Network shows that outbreaks of African swine fever in Bulgaria ensure that a shift is visible from so-called 'backyard farming' to commercial production. So far, about 20% of the pig industry in the country has been culled, partly because backyard farms in 23 of the 28 regions were obliged to cull their animals. The Global Agricultural Information Network expects the country to rely more heavily on imports by 2020.

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Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

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