Inside Pigs
Chinese pig price skyrocketing for the time being?
China is busy restoring the domestic pig population. This is not yet reflected in the pig prices, which remain at an extreme level. It is expected to take months before calm returns to the market and prices fall.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Chinese pig prices have risen sharply after the country has been struggling with African swine fever (ASF) since 2018 and had to cull a large part of its livestock. Since then, significantly more meat has been imported and prices have risen to record levels. On September 2, the Chinese pork price averaged 37.02 yuan per kilo, equivalent to €4,55.
China is now busy recovering its domestic pig herd. Previously known work Chinese real estate giants are moving into pig farming and e-commerce companies also see potential in the pig market. In the first half of 2020, the Chinese government approved the start-up of 20.000 new pig farms. These companies have room for more than 150 million pigs in total.
Recovery is still some time away
Major players in the Chinese market are working to grow the pig herd again. For example, Muyuan Foodstuff aims to double sales this year. New Hope Liuhe wants to triple the number of pigs slaughtered in 2021. The net result of major players in the market, including Muyuan Foodstuffen and New Hope Liuhe, more than doubled in the first half of the year compared to last year.
According to Pan Chenjun, senior livestock analyst at Rabobank, the recovery of the pig herd will take a lot of time and will not fully recover until 2023 at the earliest. He also believes that more focus should be placed on importing breeding animals, that will speed up the recovery.
Meat imports remain high
Chinese pork imports will remain at high levels if domestic meat supplies have not yet been restored. In July, the import volume of pork was almost 1 million tons. The value of this amounted to approximately $2,90 billion, an increase of 87,1% compared to last year.
According to Chinese customs, approximately 7 million tons of meat were imported in the first 5,75 months of the year, an increase of no less than 74,2% compared to the same period last year. Pork in particular has contributed to this significant increase. Pork supplies, including by-products, increased by 98,2% to 3,38 million tonnes respectively.
The figures for the month of July show that almost 1 million tons of pork were imported. The value of this amounted to approximately $2,90 billion, an increase of 87,1% compared to last year.