… Slower production growth of pork, beef and poultry as consumer demand increases has driven Chinese importers to source meat produced abroad. Market volatility in China's huge pork sector, in particular, can have a big impact on global markets…
Rabobank: Slower production growth in China to drive increased animal protein imports in 2018
By Louis Harkell, Undercurrent News
Dec. 29, 2017
China will import more animal proteins next year from South America, North America and Europe, as structural changes to the country's livestock sector limit domestic production growth, according to a recent Rabobank report.
"The Chinese market will continue to be key [for global meat trade]," said Rabobank in its Global Animal Protein Outlook 2018. "Due to China's rising imports in recent years, many exporters are turning to the country to grow trade business."
Slower production growth of pork, beef and poultry as consumer demand increases has driven Chinese importers to source meat produced abroad. Market volatility in China's huge pork sector, in particular, can have a big impact on global markets.
Over 18 months from 2014, for instance, China’s hog herd to decrease by 100 million head, according to Rabobank, the biggest fall in inventories recorded in China’s history, due to low prices. The subsequent big rebound in prices caused imports to soar to over 1.6 million metric tons in 2016, according to International Trade Center.
Over the past two years, many small to medium-sized pig farms in China have closed since the government implemented ever-stricter environmental policy, the bank said. In the first half of 2017, for instance, 213,000 livestock farms were closed, according to China's Ministry of Environmental Protection, with larger, industrial farms expanding in their place.
Beef producers faces similar environmental and resource constraints in China, turning the country into the world's biggest importer of frozen beef...