High Chinese pork prices lure increasing imports

China: pig prices in may 2016 at 3.54 euros per kg - current profits of 100-€130 per pig.

Chinese pork prices explode before the holidays during the months of May to July. At producer level obtained converted more than €3.50 / kg.

The pig of China is systematically been decimated over the years 2013 and 2014 due to high feed costs and low pork prices.  Alone in the sow housing, into approximately 11 million animals and 20% were held less until recently. Today, the pigs for fattening are missing. Compensation growing piglets performance has been achieved only limited. Rising slaughter weights go beyond do not exceed 90 kg per mortem.

The demand on the other side with increasing population and growing income according to the main meat type. Poultry meat in China is only slightly improved, because the consumer health hazards with the poultry virus suspect of some strains on people are transferable. It has been proven deaths.

For the year 2016 , an import requirement is estimated about 2 million tonnes of pork product based on. The EU has the edge in the delivery. The United States and Canada have must submit significant market share among others because of the strong U.S. dollar in the past time.  Also the growth of Ractopamine not allowed in China plays a role.

Imports but mainly comprise a long transportable less valuable pieces. Valuable fresh products are not suitable for the transport way and given the little-developed closed cold chain in China.

Take the reconstruction of pig farming in China is long time consuming. The backyard keeping disappear in increasing measure. Modern breeding and fattening plants are gaining importance. But such companies require much capital, which is limited to the available. Even worse, that the housing conditions and environmental regulations in China take a higher priority. Compliance is now sharply controlled. Despite high earnings prospects is not any company able to maintain production in the early days.

Feed rates are $35 each dt maize on $25 each dt has been reduced. But the soy meal prices are always still about $45 per dt. Feed efficiency is more than 1 in 4 as below. Feed costs in China are more than twice as high as in Germany.

According to Chinese estimates assuming for the medium to long-term future , that up to 10 to 15% of its pork consumption be import from China. Converted 6-7 Mio.t or a tripling of current import requirements would be.

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