China needs more pork

Correction in China's agricultural policy: abstain from high inventories of corn, to produce more pork

The Chinese pork prices reach with €3.60 / kg is unusual magnitude for a country that the economical security of supply concerned its population with the main food.  

Pork prices in China have risen particularly strongly at the beginning of 2014. The pig - sow housing in particular - has been reduced for reasons of a more protracted inefficiency by around 10%. Now missing the pigs for fattening and meat for the growing consumption.

The increasing inefficiency had its causes in a unilateral Government-controlled price guarantee for maize in order to incentive for more production and supply backup. The corn was acquired by the State for a price level from €35 each dt. So cheaper import corn prices not should be undermined, the import volumes were limited. The additional corn areas displaced the Chinese soybean. For this, China relies for more than 80% on soybean imports.

The import control except were including barley and sorghum. With the half as expensive alternative feed imports, a profitable farm in particular in the South of the country could be retained and partially expanded in the locations middle of port. Corn imports remained at a low level, for the barley and sorghum imports rose even more stronger.

The State supplies piled up at the key corn production areas in the Northwest of the country. Attempts to sell slightly lowered price, maize from government warehouses to one on the pig farmers largely failed due to lack of demand.

The high feed costs are ultimately the cause of shortage of pork and the high prices. Persistently rising demand is versechsfachten the Chinese pork imports within a few years. Extrapolating with a volume of imports by more than 1.3 million tonnes in 2015.

A continuation of this agricultural policy is hardly conceivable. China will have to make to claim of a high degree of self-sufficiency in corn swabs to take more account of the increasing pork consumption in a growing population with rising incomes.

The rising of China's pork imports essentially consist of less valuable pieces, which can be used only as a complement to the more valuable fresh meat cuts. The influencing segment of fresh meat may come needs covering almost exclusively from their own country.

Despite possible cheaper of feed costs it is China not be easyto push the pork production. The 30% backyard attitudes are must be replaced initially by modern new buildings in industry-like scale. This happens only with sufficiently high earnings prospects. It is connected to solve the big problem of land scarcity of China's environmental protection issues. Also lacking is still a regional cross-logistics and in particular a sufficiently closed cold chain.  

EU pork exports benefit while the Chinese deficit with rising volumes, however with limited value between 1.30 to €1.50 per kg. For basic price improvements in this country the export earnings are insufficient.

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