China is known to be the largest producer and consumer of pork in the world. The high market supply with very low prices has long impact on the global market.
China's demand in the US is much weaker. In the US, pig populations have recently reached record levels, as they have also built large fattening facilities and slaughterhouses there.
If China now limits the pig fattening, because the mills and slaughterhouses write losses, this does not mean that foreign suppliers profit from it. Beijing has already threatened punitive tariffs on US pork in the wake of the US trade dispute.
In the strongholds of the Chinese pig fattening Henan, Hebei and Shandong the males receive at present approximately 1.28 € / kg SG. The today's unification price for German slaughter pigs is 1,42 € / kg SG.
In China, feed prices are also significantly higher than in the previous year. Feed costs account for around 80% of production costs. Producer associations are predicting that males in China are currently losing more than € 24 per pig. The government in Beijing warns the market participants to more supply discipline.
Text: HANSA Derivatives TradingGmbH /
