Impact of China’s plan to restore 80% of Normal Pig herd on Feed: 01-19-2020

According to officials, China is planning to restore the nation’s pig herd to 80% of its normal level by the end of 2020. The Agriculture Ministry Bureau announced on Nov 22, 2019, about its plan to further improve pig rearing in next year’s first half as pork prices gradually started to fall. Though pig prices will gradually fall the herd ay not increase significantly until the second half as the damaged caused by the epidemic ASF will take time to recover.


Pig recovery will take time as the pig reproduction has its own rules and will mostly depend on the number of sows leftover in the second half and according to Yang Zhenhai, chief of Agriculture Ministry Bureau in charge of animal husbandry and veterinary medicine, the sow headcount in recovering. China’s pig production has now entered a transitional phase as supportive policies come into play, Yang said. The imbalance between the supply and demand is easing and the monthly decrease in the number of live pigs is further contracting.


China has the potential to produce over 3million tons of poultry, 1.6 million tons of milk, over 0.8 million additional tons eggs and 03 million tons of beef and mutton to offset the impact of African Swine fever on the market. Currently, the ministry believes that the country is enabling to ensure a supply of livestock products as an increased output of poultry, egg, beef, and mutton- especially more poultry will ease the tight pork supply.


All these measures will not only improve the pig farming industry but will also have an impact on the feed demand in the country, which was reported to be at its lowest after the onset of African Swine Fever in the country last year. Based on the report by Rabobank, the hog feed consumption, which is the largest application area for animal feed in China dropped by 35% in 2019. However, this decrease in feed demand was only experienced by the Chinese swine feed sector; other animal protein segments experience tremendous demand and growth. Industry experts believe that China’s plan to restore pig herd will fast rebound the animal feed demand in the country and more international, domestic feed manufacturers will in cash from this opportunity. Moreover, the feed market is also expected to become more customized as small-scale pig farms will phase-out and pig farms will be consolidated which will demand more professional feeding approaches.


View more Amino Acid News and email emarket1@cnchemicals.com for market intelligence in China.



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