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·         China's pork imports to peak in 2022, driven by fatal swine fever: consultancy

·         American Pork Officials Expect China To Continue Focusing On Domestic Pork Trade

 

 

China's pork imports to peak in 2022, driven by fatal swine fever: consultancy

 

Tom Polansek, Reuters 

November 6, 2019

 

CHICAGO (Reuters) - Global meat shippers have three years to make the most of the outbreak of a fatal pig disease in China before Chinese pork imports peak, according to a report released by the U.S. pork industry, which is competing for sales against Europe and South America.

 

The forecast issued on Wednesday starts a clock ticking for companies to profit from the epidemic of African swine fever (ASF), which has killed up to half of China’s hog herd since August 2018 and pushed Chinese pork prices to record highs.

 

China’s pork imports will top out in 2022, before declining as domestic production recovers from the disease, according to the report that food consultancy Gira prepared for the U.S. pork industry. Import volumes will stay high through 2025, but prices will ease, Gira said.

 

“This will be a very different period to the 2019-21 distressed market opportunity,” the report said.

 

U.S.-based processors like Seaboard Corp (SEB.A) and Smithfield Foods, a unit of WH Group Ltd (0288.HK), face a disadvantage for sales, compared with other suppliers, because Beijing imposed steep tariffs on U.S. pork as part of the countries’ trade war.

 

Still, Smithfield retooled a U.S. slaughterhouse to supply pig carcasses to China, the world’s biggest pork consumer, according to employees. Tyson Foods Inc (TSN.N) and JBS USA [JBS.UL] are halting the use of a livestock drug banned by Beijing.

 

Chinese processors need pork in the short term to keep slaughterhouses running, said Jack Shao, international sales and marketing manager for Hormel Foods Corp (HRL.N).

 

“There is a huge void right now,” Shao told reporters on a conference call.

 

China will likely recover from African swine fever by 2027, but production will be 13% below where it was before the country’s first case was confirmed in 2018, according to Gira. High pork prices as a result of the outbreak will change Chinese diets over the long term, with some consumers switching to cheaper chicken, the consultancy said.

 

By 2040, China’s pork imports are expected to fall back to 2017-2018 levels, according to the report…

 

more

https://www.reuters.com/article/us-china-swinefever-imports/chinas-pork-imports-to-peak-in-2022-driven-by-fatal-swine-fever-consultancy-idUSKBN1XG2S4

 

 

American Pork Officials Expect China To Continue Focusing On Domestic Pork Trade

 

Radio 570 WNAX (SD)

Nov 7, 2019

 

National Pork Board officials say China is in the process of modernizing its pork industry in dealing with African Swine Fever. Minnesota pork producer Randy Spronk chairs the U.S. Meat Export Federation’s Pork Committee. He says the Chinese have been accelerating their modernization efforts they began earlier., and that in the next ten years they hope to have increased their pork production although much of that depends on how they can control ASF.

 

National Pork Board Vice President of international marketing Paul Bessac doesn’t see China as a chief competitor for global pork markets with the United States as he says they’ll concentrate on their domestic needs.

 

He says historically China has focused on their own domestic needs and he doesn’t see that changing despite their modernization of their pork industry...

 

more, including audio [1:14 min.]  

https://wnax.com/news/180081-american-pork-officials-expect-china-to-continue-focusing-on-domestic-pork-trade/