CHINA, Beijing. In the People's Republic, 87% of the slaughterhouses are back on line. However, the supply situation with domestic goods has not yet normalized.
In the People's Republic of China, the pig population continued to recover in February. As the joint prevention and control committee of the State Council recently reported at a press conference in Beijing, the number of breeding sows increased by 1.7% in February compared to the previous month, according to data from 400 districts nationwide.
This was the fifth monthly increase in a row and the total increase since September 2019 is now 10%. For the first time since last autumn, the number of piglets born on large farms with more than 500 pigs also increased, by 3.4% compared to January. Overall, the pig population grew by 2.8% month-on-month, according to government figures. This is untypical for the season, he said, as the number of pigs kept usually decreases after the spring festival.
There were also good customers regarding the resumption of production in the animal finishing sector, which had suffered as a result of the measures taken to prevent the spread of the coronavirus. According to the Chinese Ministry of Agriculture, 87% of the more than 9,700 approved feed companies had resumed operations by mid-March, and 85% of the veterinary drug companies had. In addition, according to the government, 87% of the 5,520 pig slaughterhouses in total have returned to largely normal operations.
However, the supply situation with domestic pork is far from normal. According to analysts, a total of 15.3 mill. pigs were produced in February in eleven large listed companies, which represents a decrease of 39% compared to the same month last year. However, the Chinese government remains optimistic about production growth for the rest of the year. In addition to the numerous state aids, the high profitability of pig farming should also contribute to this. Normally, the break-even point would be a ratio of slaughter pig price to feed price of six to one, but at the moment the ratio is 18 to one.