China invests in pig places

China's pig farming will continue to grow - Megafarms in focus

Recent publications of the Chinese Ministry of Agriculture report of 35 investment projects in the pig sector with significant meaning.  Here are 5 major investors over the densely populated eastern part of China distributed some already at work or have put forward concrete plans to create up to 15 to 20 million pig places by 2018. The total planned investment including upstream and downstream measures amounted 10.74 billion on $.

4 million pig places should lead to the province of Jilin in northeastern China , invested by the Chuying agro pastoral group. The company has its focus in the pig, is still busy with the hens. The investment amount is approximately 150 million $. The region is particularly favorable, because it is located in an area of cereals and are the distribution centers in larger cities such as Beijing, within easy reach.

Further South, construction projects in the provinces of Henan and Hubei are planned with more than 3 million pigs . Muyuan foods Foodstaffs Co Ltd operates 5 construction projects, of which it will be biggest 2 million additional pig places.

Further to the South the build Consortium who Foodstaffs in Hunan rd. 5 million additional pig places and in the province of Guizhou for more 4 million units. The company employs currently 35,000 people and belongs to the largest in the industry.

Despite the large Western conditions dimensions, the share of the mega farms still under 10% of pigs is in China. About a third of the pigs are still in backyard attitudes, but with greatly decreasing numbers.

China has experienced a strong reduction of the herds in the last 2 years. The background was a minimum price policy for grain, which the feed was so expensive that the pig is designed more than a year completely unprofitable. Many small and medium sized businesses have abandoned the business particularly in the sow housing.  Higher slaughter weights have temporarily ensured that the quantities of meat have decreased only slightly. Again, current rates of €3.35 / kg represent an incentive for investment, especially since the Chinese Government will significantly lower its minimum price policy in the cereals sector.

In China , there are twice as many pigs as in Europe. Chinese pork consumption still increasing, even if currently because of subdued economic growth the growth rate no longer reach the high growth rates of previous years. Pork imports to aspire to 2 million tonnes per year. A growing share comes from the EU, while the United States had to give considerable export shares.

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