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· Chinese Ministry Calls for ‘Reasonably Priced’ Pork Imports
· China's pork imports may hit record 4.6 million tonnes in 2020: Rabobank
Chinese Ministry Calls for ‘Reasonably Priced’ Pork Imports
As China is forced to rely on imports to replenish pork stores depleted by African swine fever, top officials are pleading with the country’s trade partners not to take advantage of an agricultural crisis.
Fu Danni, Sixth Tone (China)
Nov 08, 2019
The Ministry of Commerce is calling for international meat companies to set “reasonable” export prices for their pork and not take advantage of African swine fever decimating China’s pork supply.
At the China International Meat Conference, held Thursday at the ongoing China International Import Expo (CIIE) in Shanghai, Ministry of Commerce official Wang Bin said meat prices have risen globally since the beginning of this year, with the current pork price of around $5,000 per ton nearly twice as high as in April and May.
“The pork supply and soaring prices are the two main problems internationally in 2020,” Guillaume Roue, president of the International Meat Secretariat, said at the conference.
On the opening day of CIIE, Chinese officials announced that the country had resumed importing pork from Canada. Meat companies from around the world — including over 20 from France alone — attended this year’s expo.
China is the world’s largest consumer of meat. But African swine fever — a viral disease that’s highly fatal to pigs — has greatly reduced the country’s pork supply, causing a year-on-year decrease of 17.2% in the first three quarters of 2019. Over the same period, pork prices in the country have risen by 46.7% year-on-year.
From January to September, China imported 813,400 tons of pork from Europe (up 41.6%) and 139,400 tons from the U.S. (up 73.3%), the Ministry of Commerce said at the conference. The country has also begun importing pork from South America.
Wang, the official, believes maintaining China’s pork supply will remain a top priority ahead of the Spring Festival holiday in late January, when families are reunited over lavish feasts and meat consumption soars. According to Wang, the upcoming holiday presents a potentially lucrative business opportunity for the meat producers attending CIIE.
“The meat-trading enterprises and purchasing agents should establish long-term, stable, and sustainable trade relations,” Wang said. “Don’t raise prices too much under the current market, set reasonable prices.”
Over the past year, China’s central government has taken measures to mitigate the effects of African swine fever and stabilize pork prices...
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China's pork imports may hit record 4.6 million tonnes in 2020: Rabobank
Reporting by Dominique Patton; Editing by Dale Hudson, Reuters
Nov 8, 2019
BEIJING (Reuters) - China’s pork imports will reach record levels of as much as 4.6 million tonnes next year, Dutch financial services firm Rabobank said on Friday, as domestic output falls to a historical low following a devastating disease outbreak.
China’s pork imports are already set to surpass previous records this year, reaching between 3.1 million and 3.3 million tonnes including offal, the bank said in a report, up from 2.1 million tonnes last year.
It comes after African swine fever, a fatal pig disease, spread through the world’s largest hog herd, killing millions and discouraging many farmers from replenishing their farms.
Though soaring hog prices recently have spurred large producers to begin restocking empty farms and speed up plans for new ones, the sow herd will begin recovering only next year, with pork supply picking up again from 2021, Rabobank said.
“We expect to see record-high imports in 2020, with record-low production,” the report said.
China’s pork production is expected to shrink by a quarter this year versus 2018 to about 40.5 million tonnes, and by another 10 to 15% in 2020, the bank said.
Poultry production meanwhile has jumped by around 10% this year, and will grow faster next year.
Rabobank estimated pork meat imports of between 2.3 million and 2.6 million tonnes next year, or a quarter of global trade, with offal imports of between 1.5 million and 2 million tonnes.
The forecast is in line with other estimates.
Though imports will decline when domestic production recovers beyond 2020, the average level of imports between 2021 and 2025 will stay high, at around 3 million tonnes including offal, as high biosecurity costs on farms in China keep pork prices elevated.
In line with the views of another consultancy, Gira, the bank does not expect China’s pork production to fully recover, with part of its market share permanently lost to other proteins such as poultry and beef.
“We expect pork production to reach a balance around 47 million and 49 million metric tonnes,” said the report.
The farming structure will also change...