In this file:
· Pork prices set to rise after swine fever sweeps China
· African Swine Fever takes toll on Chinese pork firms
Pork prices set to rise after swine fever sweeps China
Deirdre Hipwell, The Times (UK)
April 9 2019
The price of pork is likely to rise worldwide after African swine fever took a heavy toll on livestock in China.
Since last year, China, which produces half the world’s pork, has reported about 115 outbreaks of the fever to the World Organisation for Animal Health.
The outbreaks cover all commercially significant swine-roducing regions and by the end of this year China’s total swine inventory could fall by as much as 13 per cent to 374 million head, with its pork production potentially falling by 5 per cent to 51.4 million tonnes...
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African Swine Fever takes toll on Chinese pork firms
By Mark Godfrey, GlobalMeatNews
Results coming out from China’s leading pork firms show a collapse in profits due to the drag on prices from African Swine Fever.
The drop in pig prices means leading pig breeding firm Chuying Agro-pastoral Group is projecting a CNY1 – CNY1.6 billion loss for the first three months of 2019, a collapse on the CNY357 million in profits in the first quarter of 2018.
Likewise, leading pig and feed producer Tian Bang (also known as Tech Bank Food Co) has said its profits were down 1,032% after a 10% year-on-year fall in pig prices in its key base of Guangxi province. The company sold 762,600 pigs in the first quarter at an average CNY11.17/kg.
That price had stabilised in March to CNY13.34/kg, but that figure remains way off the CNY22/kg paid for pigs in 2015 at the high end of the last surge in China’s highly cyclical pig prices.
The huge losses are worrying for Chuying, which has been seeking to expand into downstream activities to improve margins. The company has partnered with leading petroleum distributor Sinopec to distribute its products, while also expanding branches of the ‘Sha Xian’ chain of fast food restaurants across southern China and has invested in a plant and farm in Tibet to produce smoked legs of pork for a high-value artisanal food market.
The fallout from African Swine Fever will have a transformative impact on China’s pig sector, according to industry analysts. Big companies’ investment channels, costs and output are all more efficient compared to smaller firms, which are likely to be forced out of business, according to a note published this week by Ouyang Yu Jian at Chuan Cai Securities. “Large-scale firms account for only 10% of output in China’s pig sector in numbers, compared to 90% in the EU and USA,” according to the note.
That will change due to the recent epidemic, according to other industry voices. The top 22 companies will breed 15% of China’s total pig numbers in 2020, predicted Xie Zhiyou, a meat industry analyst at Galaxy Securities...