Massive reduction of Chinese stocks of sows with far-reaching consequences
China's structural change in pig farms from backyard systems to commercial pig farms is associated with a significant reduction in stock. The most recent livestock census result with date 1 July 2014 resulted in a reduction of herds by 5.4%. The sow numbers decreased by 9.1% and 4.1 million sows as compared to the previous year. The loss of Chinese sows is almost the double of the entire German sows portfolio by 2.1 million units. The Chinese stock of sows is at the lowest level for four years.
In addition to problems with swine diseases and age-related task of backyard postures without successors, there are also considerable financial difficulties for pig farmers, who have just invested. High feed costs at fallen pig prices have resulted in heavy losses until recent times. Helping himself temporarily with the degradation of the stocks, to stay liquid.
The undecayed pigs or sows portfolios will have consequences well into the next year 2015 . Now prices have risen as a result of the declining pork offer again by almost 2-to-€2.45 / kg. It is assumed that in the next few months up to 1 year offering pork again strong will fall. Rising rates reflected ultimately in increasing consumer prices are the consequence.
High consumer prices for one of the most important foods in China be seen like neither the population nor the Government. There could be unrest. Is everything put by the Government, that the pain limits for food prices are not exceeded.Coming short only rising import volumes in question as a solution. The international market (United States, Canada, Brazil) is however not overly supplied. But the EU could help.
Over the medium term, improvements in productivity and investment are required. First measures are already underway. For the purchase of breeding animals and semen 195 million US dollars have been made available. $ 105 million are available for the rearing of gilts available.
