Report: ASF already causing drop in animal feed demand

 

By Emma Penrod, WATT AgNet

May 14, 2019

 

Prices for milk permeate and dry whey have dropped 20-50 percent since February, analysts say

 

African swine fever (ASF) may be on the decline, but industry analysts fear the impact on related industries has only just begun.

 

Pig losses in China have caused demand for dairy-derived animal feed ingredients to plummet in recent months, according to a May report by agribusiness analysts from Rabobank, a Dutch multinational financial services firm. Chinese imports of dry whey and milk permeate began to decline in November 2018, and were down 27 percent as of March 2019. Thanks to the ongoing U.S.-Chinese trade war, imports from the U.S. have been particularly hard hit, falling 60 percent since this time last year.

 

And this, according to the report’s authors, is probably just the beginning.

 

“We think the impacts from ASF are two to three years minimum, just with what it would take to replace the swine population in China,” said Mary Ledman, global dairy strategist for Rabobank.

 

Rabobank estimates China will lose 150 to 200 million pigs to ASF this year — pigs that would have consumed 54,500 to 72,500 metric tons of lactose or lactose-equivalent in feed. On top of these losses, in July 2018, China imposed a 25 percent tariff on most dairy exports. As a result, while U.S. whey and permeate exports are down by more than half, the EU has seen a 5 percent increase. Total Chinese imports of dry whey and permeate contracted 16 percent in the first quarter of 2019, according to the Rabobank report.

 

The overall decrease in demand has already...

 

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https://www.wattagnet.com/articles/37708-report-finds-asf-already-causing-drop-in-demand-for-animal-feed