China pork production increased by 2.1% to 15.4 million tonnes in the first quarter of 2018 compared to the same period last year. The Mäster pushed for sales of their slaughter pigs and thus forced an extreme price decline.
Live pig prices fell by 30% in Q1; that's one of the biggest price slumps ever. New fattening systems had started their production and provided for an oversupply.
Falling prices prompted many fatteners to deliver even more pigs, fearing the price erosion will continue.
The slaughter figures increased by 1.9% to 199.8 million animals, the Chinese pig population decreased in the period under review by 1.2% to 515.2 million animals.
China is the world's largest producer of pork - half of all slaughter pigs in the world are fattened in China.
In addition to the rapid construction of modern industrial fattening systems, a snowstorm has delayed the transport of pork to the south of the country in eastern and central China shortly before the New Year celebrations in mid-February.Deliveries arrived in the south only after the holidays and hit a market that was no longer receptive, which also put prices under pressure.
Now analysts believe that the price of slaughter pigs in China will remain at a very low level for at least another year. The entire pig industry in China is currently in the red. Due to the losses, even more small backyard moths will probably give up pig breeding.
Chinese meat production from pork, beef, lamb and poultry reached 23.2 million tonnes in Q1. An increase of 1.8%.
Text: HANSA Derivatives Trading GmbH /
