Pig prices affect production in China

From January 2021 to the end of June 2021, live pig prices in CHINA fell by almost 65% due to increased slaughter, low consumer demand and the abundance of pork available on the market. Price cuts are affecting production, which, along with other factors, means demand for imported pork remains strong, according to the latest USDA market report .

Between April and June 2021, excess pork production in that country drove prices down, forced small and medium-sized producers to liquidate stocks on farms, and limited the slaughter of pigs. Therefore, the Chinese authorities are creating a system to deal with wild fluctuations in the prices of live pigs and pork, trying to manage prices and support farmers.

Despite these actions, the continued decline in prices for live pigs and pork will create potential gaps in pig production in the second half of 2021, suggesting that imports will continue to be high. Industry sources said that since the resurgence of African swine fever (ASF) in Chinese swine herds in late 2020, producers have become increasingly concerned about the spread of the disease. Pig producers reportedly rushed to sell the pigs, driving prices down.

Farm restocking is another issue that could have a bigger impact on the industry. USDA sources indicate that breeding farms have responded by culling the least productive breeding sows, which has had a negative impact on piglet production. These trends will lead to a reduction in the number of breeding sows, especially among small and medium-sized producers, while at the same time supporting large producers with high-performance sows.

And this fact will be taken into account when preparing the monthly analytical report Meatinfo.ru

In addition, feed prices in China remain relatively high, although the Chinese industry is exploring the possibility of changing feed ingredients. Finally, the restocking of commercial pig farms with piglets is delayed, according to industry sources, and is expected to lead to lower pork production in the second half of 2021.

 

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