China’s climate agenda sparks pork modernisation

China is likely to see increased levels of industrialised pig farming in 2017

Environmental regulation on the meat industry in China will drive a surge in modernisation for the country’s pork sector, according to Rabobank.

New environmental pig farming policies, such as the tax on proper handling of effluent, will reshape the country’s distribution of pork production, promoting both industrialisation and modernisation. While expansion in south China will be restricted, more industrialised farms will emerge in the north and west of China.

This is outlook painted by Dutch firm Rabobank in its Q1 quarterly report on the global pork industry.

Pig meat production declined by 5% last year, which kept pork prices high, but as China overhauls its output in 2017, productivity could lead to an increase in Rabobank’s five-nation hog price index.

Price influence
A lower-than-expected decline in imports will support prices in key exporting countries, while exchange rates remain the other important variable influencing prices,” said Albert Vernooij, Rabobank’s animal protein analyst.

Prices will also be affected by the slow increase in global supply, supported by growing productivity and rising sow numbers.

Pig farmers in China are also experiencing record levels of profitability and the second half of this year will see pork production increase by 2%, according to Rabobank.

High imports still expected

Slow recovery of domestic production for the world’s largest pork importer, means meat prices will remain above the average levels of 2013-15.

While production is expected, local demand for pork will see China continue to import large volumes of pig meat. European countries will be the main beneficiaries of this, but the US, Canada and Brazil will continue to gain ground.
Exports of pork, particularly to China, will be crucial to Brazilian pig farmers and analysts tip production in Brazil to rise by 3%.

We expect the export growth of Brazil to continue, based on rising production, competitively priced pork (also due to the value of the real) and good demand in Asia, especially China,” Vernooij added.

Related News

China will see smaller farmers squeezed out of the market by big meat companies

Meat trends: Change for production-ruling China

Domestic broiler chickens are big business for China

China's poultry, pig businesses grow sales

There is a big 'opportunity' to positively impact animal welfare in China, a UK charity claims

China to employ European animal welfare standards

Donald Trump and Xi Jinping spoke about beef trade, among other issues, at the meeting

US and China to ‘flesh out’ beef deal

China negotiates only with individual EU states, not with the EU as a whole

France prepares response after China lifts meat import ban

Metro’s retail sales in China have grown at an average of 10% a year in the past decade

China pork retailer nears deal with Metro

China is the world's largest pork importer - and pig meat is one of Denmark top exports

Denmark to sell millions of pork products to China

Pork prices have continued to help the FAO's meat price index rise in 2017

Global meat prices grow despite overall food decline

Imported pork is still the top meat found in Chinese consumer shopping baskets

EU pork sales boost to China may be short-lived

The Trump administration has been praised for the speed of the beef deal

US inks ‘historic’ beef deal with China

One shipment of Olymel pig trotters contained traces of the banned drug ractopamine

Farmers probed as China finds banned drug in pork

China's young pork industry is reaching out to foreign investors for sustenance

Danish investment firm breaks ground in Chinese pig breeding project

Atria hopes to export around 3,000 tonnes of pork to China this year

‘Historic’ day as Atria closes China pork deal

Brazilian pork continues to win ground in the high-value Chinese pig meat market

China’s pork imports boom, but EU share slumps

China has mobalised a livestock pollution taskforce to crackdown on slurry that has polluted local water sources

China's pork industry grapples with pollution crisis

The money that can be made in China is likely to create pork export arms race

China’s pork imports will hit record highs

China's growing trend for luxury organic pork heralds big money opportunities

China invests in luxury pork

Europe's ractopamine ban means it will still enjoy strong pork exports to China in 2017

Europe’s China-bound pork exports set to fall

Related Products

See more related products

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.