The Chinese government wants to encourage small and medium-sized farms to start fattening pigs again. Following the outbreak of African Swine Fever (ASF) in China in mid-2018, 40% of the national pig population is said to have disappeared, according to official figures.
Many large fattening facilities were completed quickly afterwards and are now replacing some of the losses. But millions of smaller farms are reluctant to resume pig farming. They lack capital and fear the risk of renewed ASF outbreaks.
China is the world's largest producer of pork and also the largest consumer. Up to now, 50% of production has come from small and medium-sized farms that fattened fewer than 500 pigs per year.
The plans of the government in Beijing are to ensure the supply of meat production in China as quickly as possible. However, this requires the many smaller fatteners. They suffered huge losses when their livestock was culled.
The purchase of a hygiene system is expensive and farmers cannot afford it. Cooperations with large cooperatives are now to provide the financing and also contribute with know-how.
The state wants to give farmers easier access to arable land, but with the condition that they take stricter environmental protection measures.
The Dutch Rabobank reported in November that smaller farms in China will not restart pig fattening.
Source
HANSA Terminhandel
