China: Pig prices on the upswing

Pig prices on the upswing

Imago / Fotostand
High piglet prices provide an incentive to expand production.
High piglet prices provide an incentive to expand production.

CHINA, Beijing. In China, meat production increased noticeably in the first half of 2022. The pig sector continues to be volatile.

According to the National Bureau of Statistics in Beijing, total production increased by 5.3% to 45.19 million tons compared to the first half of 2021. This was largely due to the significant expansion in pork production, which grew by 8.2% to 29.39 million tons. However, beef and sheep meat production also increased, by 3.8 and 0.7% respectively. Only poultry meat reported a moderate year-on-year decline in production of 0.8%.

Strong fluctuations in sow numbers

The higher volume of pork in the People's Republic resulted from a significant increase in the supply of slaughter pigs, which rose 8.4% year-on-year to 365.87 million head, according to Beijing statisticians. More animals came on the hooks of large industrial farms in particular. On the other hand, the increased disposal of pigs led to a reduction in stock. At the end of June, there were 430.57 million pigs in China, according to the statistics bureau; that was 1.9% fewer than a year ago. The number of sows kept was reported at 42.77 million, down 2.87 million head or 6.3% year-on-year. However, compared to the previous quarter, the sow herd was increased by 920,000 head, or 2.2%.

Expansion of production lucrative

The recent weakening of pig supply has caused prices in China to rise sharply since mid-March. According to the national survey, the average producer price for fattening pigs yesterday was CNY 22.52/kg live weight (€ 3.30); it has thus doubled within four months. Piglet prices have risen between 70 and 80% during this period, depending on weight. The national average price for a 25-kg piglet is now more than € 150 again. However, the expansion of pig production, which has become lucrative again due to the higher prices, is causing concern for the Beijing government. At a meeting of the National Development and Reform Commission (NDRC), it was emphasized that stable production without major fluctuations was the goal and that this would also be ensured by monitoring measures.

Source: afz - allgemeine fleischer zeitung 29/2022; AgE


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