The 10th China International Meat Conference of the 2nd
China International Import Expo was held on November 7 in Shanghai, China. At
the conference, Wang Bin, the Deputy Director of China’s Market Operation and
Consumption Promotion of the Ministry of Commerce, said that with China’s
recent policy on stabilizing pork production and market supply, pork production
is rising again. He predicted that pig production would resume, and the market
supply of pork will increase if African swine fever is kept under control and
does not reemerge during the second half of 2019.
Wang Bin also reported that pork production in China was
mainly affected by African swine fever and therefore the volume of pork
production has decreased since August 2018. The number of pigs slaughtered in
China was 155 million in the first three quarters of 2019, which is a decrease
of 13.8% compared to the same period last year. Pork production was 31.81
million tonnes, a decrease of 17.2% compared to the same period in 2018. Also,
due to effect of African swine fever, many farmers chose to keep pigs on their
farms to allow more pigs to be born in the future, and therefore pork
production in the third quarter reduced in the market by 40%.
Additionally, pork consumption in China has also been
decreasing due to the increasing price of pork. Demand for pork has decreased
between 20% and 30% on average since October. The winter in China is considered
to be a busy season for meat consumption, especially during Chinese New Year
and New Year’s Day. As a result, the increase in pork demand will affect the
pork market supply.
China imports pork from Europe, North America, and South
America
Wang Bin also mentioned that China’s pork imports are
becoming diversified. From January to September, China has imported 813.4
thousand tonnes of pork from Europe, which is an increase of 41.6% compared to
the same period last year. The volume of pork imported from Europe from January
to September also accounts for 61.4% of the total volume of pork imports. In
particular, 247.1 thousand tonnes of pork comes from Spain, up 42.5%, and 221.5
thousand tonnes of pork comes from Germany, up 27.5%. In addition, 139.4
thousand tonnes of pork is imported from the United States, accounting for 10.5
% of the total volume of pork import, an increase of 73.3% compared to the same
period last year. Wang Bin stated that although pork imports come primarily
from Europe and North America, the import volumes from other countries are
rapidly increasing; for instance, the percentage of Chinese pork imported from
South America has recently increased from zero to 16.3%. On the day of the 2nd
China International Import Expo, China resumed the importation of Canadian
pork.
China’s meat production becoming diversified
Wang Bin explained that for a long period of time in the
past, pork played a primary role in meat production in China; in the 1980s,
pork composed more than 90% of all Chinese-produced meat.
In recent years, China’s meat production has become more
diversified, and due to the influence of African swine fever, pork production
has largely decreased, and the proportion of Chinese meat made up by pork has
fallen significantly. In 2018, pork accounted for only 62.7% of all meat
produced in China, 31.4% less than in 1980. Wang Bin also explained that the
spending habits of Chinese citizens are constantly on the rise, and therefore
pork is playing an increasingly less significant role in Chinese meat
production, with poultry, beef and mutton products taking the place of pork.
On October 25, the Agricultural Department held a news
conference detailing the situation of China’s farming economy during the first
three quarters of the year, mentioning specifically a recovery in the
production of live pigs, as well as in increase in the production of beef,
mutton, and poultry. The level of pig production should continue to recover
during the last part of the year, and it is expected to return to normal by
2020.
For more information on China’s food and feed market, please
check our related
resources, Amino acid China E-news, Vitamins China E-news and corn products E-News.