In this file:
· Europe and Brazil help fill China’s 10m-tonne pork shortfall
· Brazil wants China to authorize more meat plants for exports
· China approves 25 Brazilian meat plants for export
Europe and Brazil help fill China’s 10m-tonne pork shortfall
Imports surge after African swine fever cull reduces pig stocks by a third
Tom Hancock and Wang Xueqiao in Shanghai, Emiko Terazono in London and Andres Schipani in São Paulo, Financial Times
Sep 10, 2019
China’s pork imports from Brazil and Europe are surging as it attempts to fill a 10m-tonne domestic shortfall of meat this year, caused by the mass pig culls it carried out after African swine fever was diagnosed in its domestic herds last year.
Chinese pork producers began preemptively culling their herds last year to avoid infection, resulting in a boost to meat supply that temporarily kept prices low and damped demand for imports. Since then the virus, which is harmless to humans but deadly to pigs, has been recorded in every province and China’s pig stock has dropped by a third.
Domestic pork prices have nearly doubled since July, reaching Rmb38 per kilogramme, according to official statistics.
With the surge in prices, import demand is back. The value of pork imports grew more than 150 per cent year-on-year in August to Rmb2.5bn ($350m), according to Financial Times calculations based on figures published by China’s state media on Sunday, which showed that pork imports by value jumped 66 per cent year-on-year in the first eight months of the year.
Beijing has imposed a 72 per cent tariff on US pork as part of its trade war with Washington, so China has turned to farmers in Europe and Latin America to step up their supplies. Analysts project that China will import more than 2m tonnes of the meat this year.
“China’s need for pork and protein substitutes will disrupt traditional meat trade flows,” said Ricardo Santin, chief executive of the Brazilian Animal Protein Association. “The sales outlook to China is positive for the entire international market, but is especially valuable for Brazil.”
Gilberto Tomazoni, chief executive of Brazil’s JBS, the world’s largest meatpacker, told investors in August that sales to China had grown by 70 per cent to 80 per cent in the latest quarter from the previous three months.
“I think we are at the beginning of the effects of increased protein demand due to African swine fever,” he said.
In the first half of the year Spain increased the value of its sales to China by 90 per cent to €442m, partly as a result of the rise in prices, said Daniel de Miguel, international director for Interporc, which represents Spanish pork producers.
“The strong Chinese demand for pork has provoked not only an increase in international export prices but also an important increase in domestic pork prices,” he said.
Chinese import demand has coincided with spreading African swine fever in other parts of the world such as eastern Europe and south-east Asia, including Vietnam, Cambodia and Laos. In recent days the Philippines has become the latest country to confirm an outbreak of the disease.
As a result, leading producers in Europe have remained cautious about increasing production.
“With ASF spreading [mainly among wild boars] in Europe at the moment, the biggest producers like Germany are frightened of expanding,” said Peter Duggan of the Irish Food Board…
Brazil wants China to authorize more meat plants for exports
Reporting by Ana Mano; Editing by Cynthia Osterman, Reuters
September 9, 2019
SAO PAULO, Sept 9 (Reuters) - The Brazilian government will seek Chinese export approval for more meat production facilities such as slaughter houses and packing plants plants beyond the 25 authorized on Monday, according to Orlando Ribeiro, trade and foreign relations secretary at Brazil’s agriculture ministry.
Speaking at an event hosted by the Brazil-China Business Council on Monday, Ribeiro said the government is working with China to introduce a system of pre-approved meat establishments. He said...
China approves 25 Brazilian meat plants for export
By Aidan Fortune, GlobalMeatNews
The Chinese Ministry of Agriculture and Rural Affairs has approved 25 meat processing plants in Brazil for export.
Announced by the Ministry of Agriculture, Livestock and Supply (MAPA), this increases the number of plants approved from 64 to 89.
Of the new establishments authorized, 17 produce beef, six process chicken, one pork and one donkey. The approved sites can export immediately.
Negotiations were conducted by MAPA, and followed a visit by Minister Tereza Cristina and her entourage to China and other Asian countries with the objective of expanding the sale of Brazilian agricultural products.
Two BRF plants have been authorised for export to China. One is a poultry plant and the other is a pork facility, both based in Lucas do Rio Verde. The plants have a daily slaughtering capacity of approximately 300,000 birds and 5,000 hogs, respectively. This brings the number of BRF plants authorised to export to China to nine.
Minverva also had two plants approved - beef sites in Rolim de Moura and Palmeiras de Goiás, which have a combined slaughter capacity of 3,500 heads per day.
These two, combined with the Barretos plant that is already certified to export to China, mean Minerva can offer up to 4,340 heads per day to the China market, which represents 45% of Brazilian Division slaughter capacity.
Minerva highlighted that its Athena Foods division is also certified to export to China through four plants: three in Uruguay and one in Argentina, totalling 5,600 heads/day, creating a combined capacity of 9,940 head per day.
Full list of newly-approved plants ...