In this file:

 

·         China Pulls Back On U.S. Pork Increases Need for More Trading Partners

Pork variety meats have little value domestically, but provide significant return on the export market

 

·         Pig trough: China hog prices plunge after farm building boom

... pig prices hit their lowest in nearly four years this week, plunging farmers in the world’s top pork market into the red and underscoring concerns that a rapid expansion of large pig farms in China has outpaced slowing demand growth...

 

·         China pork crisis

... The downturn is also set to slow imports by China, which is the world’s top buyer of pork products...

 

 

China Pulls Back On U.S. Pork Increases Need for More Trading Partners

Pork variety meats have little value domestically, but provide significant return on the export market

 

Sara Brown, FarmJournal's Pork

March 12, 2018

 

In last week’s U.S. Meat Export Federation report of January meat export numbers, pork remained steady in volume and increased in value—an overall good report.

 

But in the current trading environment, every number matters. Drilling down into those numbers, one area that fell behind was variety pork exports, down 16% in volume compared to a year ago, although the segment had a small increase in value.

 

“So that tells you those pork variety meat items are still demanding a good price overseas. But with lower demand in China, we are going to see a little bit more pressure on the variety meat volumes we’ll be shipping this year,” Joe Schuele, USMEF president, told AgDay’s national reporter Betsy Jibben.

 

Pork variety meats include pork livers, hearts, kidneys, and stomachs, as well as bones, ears and tongues. These items have little value domestically, but provide significant return on the export market.

 

“We need to further diversify our destinations,” Schuele says...

 

more, including video

https://www.porkbusiness.com/article/china-pulls-back-us-pork-increases-need-more-trading-partners

 

 

Pig trough: China hog prices plunge after farm building boom

 

Dominique Patton, Reuters

March 9, 2018

 

BEIJING (Reuters) - Chinese pig prices hit their lowest in nearly four years this week, plunging farmers in the world’s top pork market into the red and underscoring concerns that a rapid expansion of large pig farms in China has outpaced slowing demand growth.

 

The sudden downturn - one of the steepest declines over such a short period ever - will mark the first serious test for many companies that have rushed into pig farming in the last two years.

 

It will also slow imports of pork by the world’s top buyer, traders and analysts say. The price is set to recover when demand picks up later in the year but will come under renewed pressure in 2019 as more new farms start production, analysts say.

 

Live pig prices are now hovering just above 11 yuan ($1.74) per kilogram in major producing areas such as Henan. That’s below average production costs, after plunging more than 20 percent from early January when they were close to 16 yuan per kg.

 

“The reason is very clear. There are a lot of pigs on the market,” said Feng Yonghui, chief researcher at trade website Soozhu.com.

 

The sudden plunge in prices is the result of conflicting trends in the industry over the last year. On the one hand, big producers have expanded rapidly to grow market share, but on the other, a government crackdown on pollution that intensified in 2017 shut many small farms, making it difficult to get an accurate picture of supply.

 

Monthly government data continues to show a drop in the number of breeding pigs, suggesting supply has not yet caught up with demand.

 

That kept market prices high throughout the winter and led Beijing to release some pork from its reserves. Though volumes released were small, it was another signal of insufficient supply that “misled” the market, said Pan Chenjun, senior analyst at Rabobank.

 

NEW YEAR’S ABUNDANCE …

 

BETTING ON REBOUND

 

Plentiful supplies will curb appetite for overseas pork, extending last year’s slowdown in purchases. China imported 1.2 million tonnes of pork last year, down 25 percent on the prior year.

 

“With the large drop in domestic pig prices, the space for imported pork is less and less,” said Feng.

 

For now, most farmers are preparing to ride out the downturn, betting on a rebound in a few months time…

 

more   

https://www.reuters.com/article/us-china-pigs/pig-trough-china-hog-prices-plunge-after-farm-building-boom-idUSKCN1GL10W

 

 

China pork crisis

 

By John Swire, Pig World (UK)

March 9, 2018

 

Chinese pig prices hit their lowest mark in nearly four years this week, according to Reuters. As a result the world’s top pork market has gone into the red and has increased fears that the rapid expansion of large pig farms in China has outpaced slowing demand growth.

 

The downturn is also set to slow imports by China, which is the world’s top buyer of pork products. Experts are saying that the price will recover later in the year but will come under further pressure in 2019 when even more new farms start production.

 

Reuters report that while many new large scale operations were coming online, many smaller units were closed down due to pollution problems. This meant that the authorities could not get a firm grip of numbers. So monthly data continued to show a drop in breeding sows which kept prices high during the winter months and so pork was released from the reserves...

 

more

http://www.pig-world.co.uk/news/china-pork-crisis.html