Archive for ‘African swine fever’

20/04/2020

China sees higher 2020 soybean, pork imports aid industry challenges

BEIJING/SHANGHAI (Reuters) – China expects to import more soybeans and pork this year following the novel coronavirus outbreak and African swine fever, which has decimated its pig herds.

Soybean imports are forecast at 92.48 million tonnes this year, rising to 96.62 million tonnes in 2025 and 99.52 million tonnes in 2029, an official from the agriculture ministry told a video conference on the outlook for agriculture released on Monday.

Pork imports this year are seen rising to 2.8 million tonnes, a 32.7% increase from the previous year.

China is a key buyer and consumer of soybeans and pork globally, and typically imports millions of tonnes of soybeans per year to crush for meal to feed its livestock.

The African swine fever outbreak, however, had slashed China’s pig herd by over 40% last year, reducing supplies in the world’s biggest pork consumer.

Combined with the coronavirus outbreak, which hit the transport of pigs and delayed the restart of slaughtering plants, prices of China’s favourite meat rose to record levels in February.

China has been increasing pork imports in recent months to make up for the drop in domestic supply.

Despite the expected surge in imports, China’s 2020 pork consumption is forecast to fall to 42.06 million tonnes, down 5.6% year-on-year, hit by high prices and a fall in consumer demand due to the coronavirus outbreak, according to the agriculture ministry.

In line with the slowing consumption, China’s slaughtered pig herd this year will fall 7.8% year-on-year to 501.49 million heads. Pork output this year will also decline to 39.34 million tonnes from 2019, but will rebound to around 54 million tonnes in 2022.

In the longer term, however, pork imports are expected to gradually fall, the ministry forecast, while beef and mutton imports are set to increase in the next decade.

Meanwhile, China’s domestic soybean output is seen at 18.81 million tonnes in 2020, a 3.9% gain from the previous year, while crushing volumes were pegged at 85.98 million tonnes.

Soybean consumption will increase steadily and continue to rely mainly on imports in the next 10 years, said a ministry official.

The ministry also said China’s corn acreage and output are both set to increase in 2020, with production forecast to reach over 260 million tonnes this year, while annual rice output is expected to hold steady above 200 million tonnes per year in the next 10 years.

Source: Reuters

02/04/2020

China’s race to produce ‘super pigs’ destined to fail amid haphazard biosecurity, experts say

  • China’s pig herd has begun to build again after African swine fever devastated hog populations across the country 18 months ago
  • Scientists are racing to create disease-resistant pigs, but analysts say that will be undermined by basic hygiene problems in China’s pork industry
China’s pork industry has been severely dented by African swine fever disease in the past 18 months. Photo: Bloomberg
China’s pork industry has been severely dented by African swine fever disease in the past 18 months. Photo: Bloomberg

China should focus less on developing disease-resistant “super pigs” to protect its hog herd from infection and do more to improve basic biosecurity, analysts say, as several companies claim to be close to a breakthrough treatment for African swine fever.

China’s hog herd has begun to steadily rebuild after swine fever spread across the country a year and a half ago, killing or forcing the culling of 60 per cent of the pig population, according to authorities.

But poor biosecurity – including the transport of pigs in filthy trucks and a lack of disinfection at farms – still threaten the industry, observers said.

There is no commercially available vaccine for the disease – which is not harmful to humans – but a number of researchers claim they are close.

Swine fever could kill 25% of the world’s pigs, scientists say
China’s Harbin Veterinary Research Institute, the country’s top research body on animal diseases, said last month it had developed a vaccine for African swine fever (ASF) that laboratory testing showed was safe and effective. However, it did not give a timetable on when it would be available for commercial use.

Meanwhile,Shandong Landsee Genetics, a company in China’s eastern Shandong province, was reported this week to have successfully bred ASF-resistant pigs. The pigs, called Lansibai-2, are from the large white breed, one of the most common raised in China.

When approached for comment, a spokeswoman for the company said the research was confidential and she was not authorised to speak to media.

Despite the apparent progress, analysts are generally sceptical that a silver bullet to prevent the disease will be developed on a large scale any time soon.

“Because this disease has been found in many countries, I don’t think there has been major progress [when it comes to eliminating the disease],” said Chenjun Pan, senior analyst for animal protein at Rabobank. “There have been some vaccines, but the effectiveness of the vaccines is not that satisfactory. So far there haven’t been any solutions from a medical perspective.”

There have been some vaccines, but the effectiveness of the vaccines is not that satisfactory – Chenjun Pan

China’s swine fever problem was complicated by an unwillingness from local governments to diagnose and report ASF cases, said E.W. Johnson, of Enable AgTech Consulting in Beijing. It was also complicated by basic hygiene problems, he added.

“Pigs with ASF are sold to slaughter every day, and dirty trucks are going everywhere, spreading the disease as much as they did when the ASF outbreak began,” Johnson said.

“There is no doubt that people are very excited and extremely zealous about these super-pigs. [But] China seems intent on living with ASF rather than getting rid of it.”

“The most important problem now is how to control the ASF epidemic, and this is not the way to do it,” said Feng Yonghui, chief analyst at pork industry website Soozhu.com. “The whole global industry recognises that the greatest preventive measure is improving biosecurity.”

he whole global industry recognises that the greatest preventive measure is improving biosecurity – E.W. Johnson

Improved hygiene can lower the risk of disease in production, said Feng, including sickness caused by bacteria and viruses, like transmissible gastroenteritis, a coronavirus found in pigs.
“It’s a system – you can’t just do one step in the process,” he said. “The whole industry has to study it, and we still need time to improve.”
Basic controls – like keeping pig transport trucks clean, or disinfecting protective equipment used by workers on pig farms – is simple but comes at a price, and some smaller pig farms are struggling to keep up.
China’s outbreak of African swine fever pushes pork off the Lunar New Year menu
“What we’re worried about are the people on the lower rungs of the ladder who aren’t able to keep up with better practises,” Feng said. “If we are to get pig stocks back up to where they were before the outbreak within three years, this is the key issue that stands in the way.”
China’s pork industry is at a turning point in production unlike at any other time in history, he said.
“In the past, when it came to upgrading production, or when the industry went into loss, all producers big and small began again at the same starting line,” he said. “That’s because there was no threat of disease. Now, those with money get to run first.”
Pork prices in China, the world’s top consumer and producer of pork, have surged since AFS began cutting back supply, driving margins up for both domestic and imported pork.
The world’s biggest pork processor, Hong Kong-listed WH Group, reported a 32 per cent jump in profits last year as record high pork prices in China boosted the value of the company’s exports from the United States and lifted margins on its China sales.
China’s deadly African swine fever epidemic is spreading across Asia
China’s total pork production in 2019 was 42.55 million tons, a decrease of 21.3 per cent from 2018, data from the National Bureau of Statistics showed. In 2018, the total pork output was 54.037 million tons, down 0.9 per cent from 2017.
While researchers race to find a cure for swine fever, new cases keep cropping up across the country. On Wednesday, the Ministry of Agriculture and Rural Affairs said local authorities in Sichuan had detected infections in piglets transported from outside the province.
Another outbreak was recorded in Inner Mongolia, where local authorities detected the disease in a herd of 200 piglets on a farm in Ordos city, which killed 92 of the animals, according to the agriculture industry.
Authorities are also monitoring cases of ASF in piglets smuggled into the country and would launch a 60-day investigation into illegal transport of hogs this month.
Source: SCMP
05/03/2020

Special Report – Before coronavirus, China bungled swine epidemic with secrecy

(Reuters) – When the deadly virus was first discovered in China, authorities told the people in the know to keep quiet or else. Fearing reprisal from Beijing, local officials failed to order tests to confirm outbreaks and didn’t properly warn the public as the pathogen spread death around the country.

All this happened long before China’s coronavirus outbreak, which has claimed more than 3,000 lives worldwide in less than three months. For the past 19 months, secrecy has hobbled the nation’s response to African swine fever, an epidemic that has killed millions of pigs. A Reuters examination has found that swine fever’s swift spread was made possible by China’s systemic under-reporting of outbreaks. And even today, bureaucratic secrecy and perverse policy incentives continue undermining Chinese efforts to defeat one of the worst livestock epidemics in modern history.

Beijing’s secretive early handling of the coronavirus epidemic has troubling similarities to its missteps in containing African swine fever, but with the far higher stakes of a human infection. After the coronavirus was found in December 2019 in Wuhan, the capital of Hubei province, local and national officials were slow to sound the alarm and take actions disease experts say are needed to contain deadly outbreaks. Beijing continues to gag negative news and online postings about the disease, along with criticism of the government’s response.

With swine fever, Beijing set a tone of furtiveness across government and industry by denying or downplaying the severity of a disease that the meat industry estimates has shrunk China’s 440-million-hog herd by more than half. The epidemic has taken a quarter of the world’s hogs off the market, hurt livelihoods, caused meat prices to spike globally and pushed food inflation to an eight-year high. (For a graphic on soaring China pork prices, click here)

Cover-ups across China – coupled with underfinancing of relief for devastated pig farmers and weak enforcement of restrictions on pork transport and slaughter – have enabled the spread of the livestock virus to the point where it now threatens pig farmers worldwide, according to veterinarians, industry analysts and hog producers. Since the China outbreak, African swine fever has broken out in 10 countries in Asia.

The vacuum of credible information has made it impossible for farmers, industry and government to tell how and why the disease spread so quickly, making preventive measures difficult, said Wayne Johnson, a Beijing-based veterinarian who runs Enable Ag-Tech Consulting.

“To get it under control, you have to know where it is,” Johnson said.

China’s Ministry of Agriculture and Rural Affairs said in a statement to Reuters that it has repeatedly communicated to all regions the importance of timely and accurate reporting of African swine fever outbreaks and had zero tolerance for hiding and delaying the reporting of cases.

Interviews with farmers, industry analysts and major suppliers to China’s pork sector indicate otherwise. More than a dozen Chinese farmers told Reuters they reported disease outbreaks to local authorities that never made it into Beijing’s official statistics. Those infections are going unreported to central authorities in part because counties lack the cash to follow a separate requirement from Beijing to compensate farmers for pigs killed to control the disease.

Local officials have also avoided reporting outbreaks out of fear of the political consequences. And they have routinely refused to test pigs for the virus when mass deaths are reported, according to interviews with farmers and executives at corporate producers.

A farmer surnamed Zhao, who raises a herd in Henan province, said local officials told him as much when they resisted recording the outbreak he reported on his farm, which wiped out his herd.

“‘We haven’t had a single case of African swine fever. If I report it, we have a case,’” Zhao recalled an official telling him. The local officials could not be reached for comment and a fax seeking comment went unanswered.

When the coronavirus hit, Chinese authorities reacted with a push to reassure the public that all was well. The first reported death from the virus, also known as SARS-CoV-2, came on Jan. 9 – a 61-year-old man in Wuhan. In the following days, Chinese authorities said that the virus was under control and not widely transmissible.

The assurances came despite a lack of reliable data and testing capacity in Wuhan. Testing kits for the disease were not distributed to some of Wuhan’s hospitals until about Jan. 20, an official at the Hubei Provincial Centre for Disease Control and Prevention (Hubei CDC) told Reuters. Before then, samples had to be sent to a laboratory in Beijing for testing, a process that took three to five days to get results, according to Wuhan health authorities.

During that gap, city hospitals reduced the number of people under medical observation from 739 to 82, according to data from Wuhan health authorities compiled by Reuters, and no new cases were reported inside China.

China’s top leadership has dramatically ramped up the public-health response since its early missteps. Beijing built new hospitals in days to treat the sick and launched an unprecedented blockade of the disease epicentre on Jan. 23, first quarantining Wuhan’s 11 million residents at home, then suspending transport in all major cities of Hubei province, home to about 60 million people.

Still, the initial attempts to tightly control information left many people unaware of the risks and unable to take precautions that might have prevented infection – and the suppressing of news and commentary continues today. Wuhan authorities reprimanded eight people they accused of spreading “illegal and false” information about the disease. One of them, 34-year-old doctor Li Wenliang, later died from coronavirus, triggering an angry backlash on social media.

Some critical posts were allowed during a brief and unusual period of online openness in late January. But Beijing’s censors – the Cyberspace Administration of China (CAC) – have since cracked down on posts about Li and other information that authorities deem negative, according to CAC censorship orders sent to online news outlets and seen by Reuters. One CAC notice ordered online outlets to guard against “harmful information.” Another ordered them not to “push any negative story.”

The CAC did not respond to a request for comment sent by fax.

UNREPORTED OUTBREAKS

Beijing had years to prepare for African swine fever. Veterinarians have frequently warned Chinese authorities of the risks since the disease started spreading through the Caucasus region in 2007.

Pigs infected by the virus initially suffer high fever, loss of appetite and diarrhoea. Then their skin turns red as internal haemorrhaging starts and their organs swell, leading to death in as little as a week.

With no vaccine or cure available for the disease, experts recommend that infected pigs and others housed in the same barn are culled, with the carcasses either burned or buried to prevent further infection. Farms, equipment and vehicles that could be contaminated need to be thoroughly cleaned and disinfected.

The first case in China was discovered on Aug. 1, 2018, on a farm near Shenyang, in the northeastern province of Liaoning. Just two weeks later, the virus was found more than 1,000 kilometres to the south in pigs bought by the country’s top pork processor, WH Group(0288.HK), from another northeastern province, Heilongjiang. It took Beijing another two weeks to block pig exports from the whole region, and that and other transport restrictions were poorly enforced, said Johnson and other industry experts. WH Group declined to comment.

One factor behind the epidemic: Chinese consumers prefer fresh pork – straight from the slaughterhouse, rather than chilled. This means hundreds of thousands of live pigs are moved long distances every day to supply processors in major cities. That mass movement spread the disease relentlessly.

Over the first four months of the outbreak, Beijing reported swine-fever cases almost daily as the virus spread from the northeast down through central China, west into Sichuan, and to the huge province of Guangdong by year-end. Veterinarians believe the virus spread quickly because it can survive for weeks on dirty farm equipment or livestock trucks.

And yet gaps in counting and tracking the pig disease have been routine across China. Reuters found a striking absence of reported outbreaks in some of the nation’s most productive pork regions.

For instance, almost none of the reported outbreaks have come from the major hog-raising provinces of Hebei, Shandong and Henan. The three contiguous northern provinces were the source of some 20% of the 700 million pigs China slaughtered in 2017. Many came from backyard farms, which make up a large part of China’s industry and have proven fertile breeding grounds for the disease. Yet each of the three provinces has reported just a single case of African swine fever, despite widespread anecdotal reports of outbreaks there that industry sources believe killed millions of pigs.

Neither Shandong nor Henan authorities responded to requests for comment. Hebei’s department of agriculture said it had “strictly reported and verified the epidemic” and that the disease situation was currently “stable.”

Six Henan farmers told Reuters they reported outbreaks during late 2018 and the first half of 2019. In some cases, local authorities helped deal with dead pigs, they said, but never tested for the virus.

That’s what happened when Wang Shuxi, a farmer in Henan’s Gushi County, lost more than 400 pigs in March 2019. Wang said he had no doubt that his pigs had African swine fever, even though authorities never tested them – and he couldn’t test them himself, because Beijing did not permit the commercial sale of disease test kits at the time.

His pigs showed telltale symptoms of the disease.

“The whole body went red,” he said. He injected the animals with an anti-fever medication to no avail. “At the start, they didn’t eat, and even after injections, it kept returning,” he said. “If you can’t cure it, you know it’s swine fever.”

Provincial and county governments had strong incentives to avoid verifying and reporting outbreaks because of Beijing’s rules on compensating farmers, said Huang Yanzhong, specialist in health governance with the Council on Foreign Relations in New York.

Under an African swine fever contingency plan drawn up in 2015, Beijing ordered the culling of all pigs on farms where the disease is found and on every farm within a three-kilometre radius. The central government raised compensation from 800 yuan ($115) to 1,200 yuan for every pig culled in 2018. Beijing typically promised to provide between 40% and 80% of the money, depending on the province. Localities would fund the rest.

In April 2019, the national agriculture ministry said the central government had allocated 630 million yuan to cull 1.01 million pigs to contain the disease. But that money either wasn’t sufficient or regularly did not get paid out, farmers told Reuters. None of about a dozen farmers who told Reuters they tried to report outbreaks said they had received the promised 1,200 yuan for each pig.

Many got nothing. Wang, the Gushi County farmer, said that almost a year after his pigs died, he has received no recompense. Gushi County officials could not be reached for comment.

Many farmers, eager to salvage value from their herds, have resorted to sending their pigs to slaughter at the first sign of illness – thereby thrusting the virus into the human food supply. The swine fever virus does not threaten people. But its presence in meat – where it can survive for weeks – creates a cycle of infection because many backyard farmers feed pigs with restaurant scraps that include pork.

Garbage feeding caused 23 outbreaks in 2018, Huang Baoxu, deputy director of the China Animal Health and Epidemiology Center, told reporters at a briefing in November that year. His remarks were a rare instance where the central government revealed findings about the spread of the hog virus. The centre declined to comment for this story.

Farmers visiting slaughterhouses dealing in sick pigs also likely picked up the virus on their trucks or equipment, spreading it back to their farms, Johnson said.

In the southern province of Guangxi, the disease raged through the spring of 2019 and early summer, several farmers told Reuters last year. Bobai County was hit hard.

A Bobai farmer surnamed Huang said she lost almost 500 pigs during April and May. She said she tried to report the diseased pigs to the local government but was ignored. The official she spoke to by phone never came to her farm. He told Huang that her pigs could not be saved – but that they didn’t have African swine fever. His advice, she said: “hurry and sell the pigs while they could be sold.”

Huang said she sold more than 30 pigs that she believed had the virus. They looked healthy when she sold them, she said. Others sold obviously sick pigs at very low prices. “Traders took all the pigs, including the sick ones – as long as they could walk to the trucks,” she said.

Huang buried her dead pigs daily for weeks on a relative’s land. Others simply dumped their dead pigs on the roadside or in the mountains, she said. The government provided no help.

Eventually, in late May, Bobai County reported one pig dead from the disease, official statistics show.

Authorities in Guangxi did not respond to a request for comment, and officials in Bobai county’s agriculture bureau could not be reached.

Beijing’s agriculture ministry said in a statement that it had issued an August 2019 order requiring punishments in situations where localities failed to report outbreaks. The ministry said it meted out unspecified discipline to more than 600 local personnel for what it called failures to manage the disease that were uncovered in its investigations of problem areas.

The practice of processing infected hogs has persisted despite new rules from Beijing in July that required slaughterhouses to test all batches of pigs for the virus. The agriculture ministry said in January that 5% of the more than 2,000 samples taken from slaughterhouses in November tested positive for the disease.

An Australian study in September found 48% of meat products confiscated from Asian travellers arriving at its ports and airports contained the virus.

“It showed there’s an awful lot of unrevealed infection not being reported to the authorities,” said Trevor Drew, director of the Australian Animal Health Laboratory.

One such information gap is at the top of the industry – China’s large corporate pig producers. They have also been hit hard by the disease, despite taking more extensive measures than backyard farms to disinfect trucks and require workers to change clothes and shower before and after shifts.

None of China’s top publicly traded producers have publicly announced any swine fever outbreak, but executives of major hog producers acknowledged in interviews with Reuters that their herds were hit by the disease.

Thai conglomerate C.P. Pokphand(0043.HK), one of China’s leading pig producers, has had swine-fever outbreaks on farms in Liaoning, Shandong, Henan and Jiangsu provinces, Bai Shanlin, chief executive of China operations, told Reuters in a rare admission by a listed firm. Executives at three other listed companies, also among China’s top pig producers, acknowledged outbreaks at several farms but declined to be identified.

None of the outbreaks that these large companies have confirmed to Reuters were reported by Beijing, according to a Reuters review of the agriculture ministry’s data on outbreaks.

By August 2019, a year after the first case was found in China, pork prices had passed a record set back in 2016. And they were still climbing rapidly. With a crucial national celebration approaching in October – the 70th anniversary of the founding of the People’s Republic – China’s top leaders took note. Pork is a staple of Chinese cuisine, and rising meat production has been among the many signature achievements in the Communist Party’s decades-long drive to bring prosperity to China.

In a video conference that month with officials from all 34 provinces and regions, Vice Premier Hu Chunhua issued a warning: Sufficient pork was vital to people’s lives and the country’s stability. He called for the urgent recovery of the herd as a key “political task.”

A raft of new production policies and incentives emerged from Beijing. And as the provinces rallied to replenish the nation’s herd, reports of African swine fever grew even more rare. Disease outbreaks reported by the agriculture ministry have tailed off since August. In January, Agriculture Minister Han Changfu said the situation has stabilized.

The government’s statistics are rife with contradictions, however. The ministry has reported 163 outbreaks of African swine fever since August 2018 and said 1.19 million pigs have been culled, a fraction of 1% of China’s total herd. Separate ministry data tracking the herd monthly show that, by September 2019, the herd had shrunk by 41% from the prior year. (For a graphic on the decline in China’s pig herd, click tmsnrt.rs/38lkOcx )

These official estimates of the decline are far too low, three major industry suppliers told Reuters.

“It’s at least 60%,” said Johan de Schepper, managing director of Dutch feed ingredients firm Agrifirm International. His assessment, based on sales to about 100 large pig producers, echoed those of others in the industry.

The virus is still killing pigs nationwide and the herd may still be shrinking, say farmers and industry suppliers. “Half of the herd was gone before this winter, and I think half of the rest will be gone by the end of the season,” said Johnson, the veterinarian, citing conversations with clients from across China.

The problem: Some areas were hit with a second wave of the disease.

Henan province is among them, farmers told Reuters. Last year, about 60% of Henan’s herd was wiped out, mainly in the densely farmed areas in the south and west of the province, analysts at Guotai Junan Securities wrote in an internal memo seen by Reuters. Recently, the memo noted, the virus has moved through east Henan, taking out another 20%.

The vicious disease ruined Zhao, the farmer in central China’s Henan province. The virus struck in October, causing high fever, internal bleeding, vomiting and diarrhoea in his pigs. Just two survived. The other 196 died in a week.

When Zhao tried to report the outbreak to the county veterinary authority, he said, officials strongly encouraged him to keep quiet. A local official reminded him of the national mandate to cull all pigs within three kilometres of an infected farm. That could spell disaster for his neighbours if Zhao spoke up.

“If it’s found to be African swine fever, people nearby will have to stop raising pigs,” Zhao recalled a local official telling him. Zhao decided against filing a report to protect his neighbours, he told Reuters on a recent visit to his farm.

Further up the political hierarchy, the deputy governor of Henan province was quoted by the provincial agriculture bureau as saying in December that Henan had been free of the disease for 14 months, after a single reported case in September 2018. The provincial government did not respond to requests for comment.

The disinformation game continues. Zhao says that when county officials came by his farm in January, they recorded that he still had 180 pigs. In fact, he said, he had just the two hogs that survived the October outbreak.

“The country is being kept in the dark,” he said.

Source: Reuters

11/09/2019

China aims to become self-sufficient in pork production despite African swine fever

  • Agriculture ministry says long-term goal is achievable despite the loss of a third of domestic livestock owing to impact of disease
  • Observers believe foreign producers will never be able to produce enough to satisfy the world’s largest market for the meat
A pork vendor sleeps at a stall at a Beijing wholesale market. Photo: Simon Song
A pork vendor sleeps at a stall at a Beijing wholesale market. Photo: Simon Song

China will continue to strive for self-sufficiency in pork production although its farming industry has suffered a devastating blow after African swine fever wiped out about one-third of its hog herds, officials said on Wednesday.

Yu Kangzhen, a vice-minister for agriculture, said it was unrealistic for China to pin its hope on imports in meeting the country’s demand for pork.

Last year, China consumed about half of the world’s pork but more than 95 per cent was sourced from domestic supplies, which have taken a serious hit this year due to swine fever.

The disease is deadly for pigs, although not for humans, and there is currently no cure or vaccine.

“Even at its highest level, imports accounted for about 2 per cent of China’s domestic production,” said Yu at a press conference in Beijing.

“So from the statistics alone, we can see that we must adhere to the principle of self-sufficiency if we are to meet our demand for meat, and this also explains why we have put forward a 95 per cent self-sufficiency target.”

According to Yu, the total global trade in pork last year was 8 million tonnes – less than 15 per cent of China’s total production of 54 mi

Peng Shaozong, an official from the pricing department of the National Development and Reform Commission (NDRC), expressed confidence that foreign suppliers would be interested in filling any gaps in the Chinese market.

“Imports are guided by the market. If there is money to be made [in selling to China], they will definitely come,” said Peng on the sidelines of the press conference.

Pan Chenjun, from agribusiness bank Rabobank, said China’s pork production was expected to continue to fall in the coming year, putting pressure on the country’s US$140 billion pork industry.

In July, China’s pig population had fallen by 32.2 per cent from a year earlier, and was down 9.4 per cent compared with the previous month, according to latest government figures.

However, Pan said the government’s 95 per cent self-sufficiency target was in line with market realities.

China’s domestic pig stocks have fallen by a third. Photo: AP
China’s domestic pig stocks have fallen by a third. Photo: AP

“In any case, the 95 per cent [self-sufficiency] goal is reasonable, as China’s pork market size is too big, and imports, despite rising this year, still represent just a small part,” Pan said.

Although China’s domestic shortfall may offer a windfall to foreign suppliers, they must obtain government approval before they could sell to China.

On Monday, Beijing approved imports from 25 Brazilian meat factories, bringing the country’s total number to 89.

On Wednesday, Danish officials completed a three-day trip to China, saying they expected to increase pork exports to China.

Danish food minister Mogens Jensen attended the opening of a new meat processing facility near Shanghai operated by Danish Crown.

China imported 230,000 tonnes of pork from Denmark in 2018, according to the country’s foreign ministry.

On Tuesday, the Chinese State Council issued a new set of guidelines to support the industry, outlining measures such as increased subsidies to boost domestic production in the face of worsening pork shortages that have sent prices to record highs.

The consumer price index released on Tuesday reinforced the bleak picture of a tight market supply as the data showed that pork prices rose by 46.7 per cent in August compared with a year earlier, almost double the 27 per cent rise witnessed in July.

Prices of pork are one of the major indicators used by Chinese citizens to gauge their well-being and, at the moment, that well-being is being eroded rapidly.

According to NDRC, China has already spent a total of 3.23 billion yuan (US$454 million) in subsidies so far this year to tackle the pork shortage crisis.

“As much as 1.1 billion yuan has been newly added under the budget of the central government, with the focus on supporting western provinces in the Yangtze River basin to carry out farm improvement works to control pollution and reduce livestock and poultry waste,” Peng from the NDRC said.

However, a report published by research firm Gavekal Dragonomics on Wednesday cautioned that the government’s plans to soften the blow on the industry might not be effective.

“As the overhaul of pig-raising practices to eliminate the disease would take years even if the government was moving more aggressively, high prices and pork shortages are going to persist,” the report said.

Source: SCMP

09/09/2019

China’s Guangdong to release another 3,150 tonnes of pork from reserves to secure supplies

BEIJING (Reuters) – China’s Guangdong province said it will release 3,150 tonnes of frozen pork from reserves during the upcoming holidays, part of a campaign to secure supplies of the country’s favorite meat, local media reported on Monday, after a devastating disease ravaged the hog herd.
The pig herd in the major pork consuming region has fallen 34% from the previous year in the first half of 2019, while the sow herd dropped 43%, the Nanfang Daily reported, citing government statistics.
“Hog supplies will face an unprecedented, grave test,” the newspaper said, quoting an unnamed official with the provincial agriculture bureau, as it will be increasingly difficult to transport pigs into Guangdong from outside provinces due to falling production nationwide.
Various factors, including the environmental crackdown on illegal pig farming and outbreaks of African swine fever, are behind the fall, the official said.
Guangdong relies on supplies from other provinces. Authorities in Guangzhou, the capital city of the province, have said they will release 1,600 tonnes of frozen pork from reserves in September.
Major pig producers in the region including the Guangdong branch of agribusiness giant New Hope Liuhe, said they will further expand hog production in the area to help with supplies.
Liuhe, which currently supplies about 300,000 hogs a year in Guangdong, will add another 50,000 pigs to the market in the second half of the year, and expand pig production by 700,000 heads next year, according to Li Weifeng, general manager in charge of the Guangdong new district at the firm, the newspaper reported.
Local authorities are also promoting modern and large scale pig farms, to secure pork supplies in the region in the long run, the paper said.
China’s state planner said on Monday it will issue subsidies of up to 5 million yuan ($700,000) to support the construction of large-scale pig farms.
Source: Reuters
29/04/2019

Canadian soybeans, peas and pork face new delays at China’s ports

  • Are increasing diplomatic tensions behind tighter inspections and cancelled orders?
  • Farmers switch to other crops in bid to beat barriers
Canadian exporters of pork, soybeans and peas say they are facing delays and increased inspections at Chinese ports. Photo: Reuters
Canadian exporters of pork, soybeans and peas say they are facing delays and increased inspections at Chinese ports. Photo: Reuters
A growing list of Canadian farm exports is facing obstacles at Chinese ports, raising concerns that a bitter diplomatic dispute between the two countries may be to blame.
Sellers of Canadian soybeans and peas say they are experiencing unusual obstacles and Ottawa also warned last week that China was holding up pork shipments over paperwork issues.
China has already blocked Canadian canola from Richardson International and Viterra, two of Canada’s biggest farm exporters, saying that shipments had pests. Other China-bound canola cargoes have been cancelled, forcing exporters to re-sell elsewhere at discount.

Canadian politicians have said the concerns are baseless, and noted that China detained two Canadians after Canada arrested an executive of Chinese telecom company Huawei Technologies Co Ltd in December at the United States’ request. China has used non-tariff barriers before during diplomatic tensions, most recently against Australian coal.

China has already blocked canola from two of Canada’s biggest farm exporters, while other China-bound canola cargoes have been cancelled. Photo: AP
China has already blocked canola from two of Canada’s biggest farm exporters, while other China-bound canola cargoes have been cancelled. Photo: AP

Increasing tensions with China, a top buyer for most Canadian farm commodities, have forced farmers to plant other crops, such as wheat, that they hope will not face barriers.

China bought US$2.01 billion worth of Canada’s canola and $381 million worth of its pork last year.

The spread of African swine fever through China’s pig herd has reduced China’s need for canola and soybeans to process into feed ingredients but, since January, port soybean inspections that routinely take a few days now require three weeks, causing Chinese buyers to avoid Canadian products, according to Dwight Gerling, president of Canadian exporter DG Global.

“They’re basically sending out the signal, ‘You buy from Canada, we’re going to make your life difficult,’” Gerling said.

Earlier this year, a Chinese buyer told Gerling that a government inspector had found ants in 34 containers (roughly 680 tonnes) of the Canadian soybeans he shipped there.

Such a finding would be rare, since the soybeans were stored in concrete silos in Canada and shipped in sealed containers in late autumn, said Gerling, who concluded the buyer was trying to avoid the new hassles of buying from Canada.

“It’s just them playing games. (Beijing) is just going to keep putting the screws to us,” he said.

China’s General Administration of Customs did not reply to a request for comment. Government officials have said their canola ban is a regular inspection and quarantine measure to protect China’s farm production and ecological safety.

In a statement, the Canadian agriculture department said it could not confirm that China had imposed stricter measures against farm goods other than canola. Ottawa said this month it hoped to send a delegation to China to discuss the issue.

Gerling’s company has halted soybean sales to China and found other buyers in Southeast Asia.

An official at a state-owned crusher in southern China confirmed that port inspections had tightened on Canadian soybean cargoes.

“We don’t have Canadian cargoes coming in as we can’t blatantly commit such wrongdoing when the atmosphere is so intense,” the official said on condition of anonymity.

Soybeans from Canada are facing delays when they reach Chinese ports, according to traders. Photo: Reuters
Soybeans from Canada are facing delays when they reach Chinese ports, according to traders. Photo: Reuters

Another official in northern China said his crushing plant scrapped plans to buy Canadian soybeans when the trade dispute flared.

Canada shipped $1.2 billion worth of soybeans to China in 2018, up sharply year over year, according to the Soy Canada industry group, as China and the United States fought a trade war. But sales have now slowed to a trickle.

Canola has taken the brunt of China’s measures.

Chinese buyers have cancelled at least 10 cargoes of Canadian canola in the past few weeks, according to a Singapore-based trader at a company that runs crushing facilities in China. Some cargoes, around 60,000 tonnes each, have been resold to buyers in Pakistan and Bangladesh at deep discounts, the trader said.

“It is devastating for exporters,” the trader said.

Canada gets tough with China on canola ban, demands contamination proof

Intercontinental Exchange (ICE) canola futures fell to a more than four-year low on Tuesday as supplies piled up. Growers intend to sow the smallest crop in three years.

On Monday last week, Ottawa said some Canadian pork exporters used an outdated form to certify shipments to China, causing delays. Such issues arise regularly in commodity trading, but rarely with damaging consequences, said Canadian Pork Council spokesman Gary Stordy.

Canadian pea exporters fear they could be next. China imported C$533 million worth of Canadian peas in 2018, according to industry group Pulse Canada, but the pace has slowed.

Chinese authorities have begun scrutinising import documents and product samples more closely, according to Taimy Cruz, director of logistics at Toronto-based BroadGrain Commodities.

China Inspection and Quarantine Authorities now tests samples of each pea shipment before authorising it for import. They also restrict in some cases the number of soybean shipments allowed under one licence, slowing the flow, she said.

Similarly, import authorities now require soybean shipments that change vessels in Singapore and Shanghai – a routine practice called trans-shipping – to reach their destination on a single ship, she said.

While BroadGrain has not seen its cargoes turned back, it has reduced sales to China to avoid risk, concentrating on the Indian subcontinent and South America, she said.

“We have to be extra careful,” Cruz said. “They are very strict now.”

Source: SCMP

15/04/2019

How China’s swine fever outbreak is upending global soybean market

  • Getting rid of the disease in a nation that consumes half the world’s pork could take three to five years
  • Demand for soybeans used in feed is expected to be curbed
A decline or slower growth in Chinese soy imports has been forecast for the next couple of years. Photo: Reuters
A decline or slower growth in Chinese soy imports has been forecast for the next couple of years. Photo: Reuters
Forget Donald Trump’s trade war. It’s a deadly pig disease spreading through China that will really reshape the global soybean market for years to come.
Getting rid of the disease and rebuilding the herd in a nation that consumes half the world’s pork will take three to five years, curbing demand for soybeans used in feed, according to analysts.
Given China is the largest soybean importer and most of its shipments usually come from the US, the oilseed has been the poster-child for the tit-for-tat tariff spat. While trade tensions have prompted China’s feed makers to curb the oilseed’s usage, it is the pig virus that will upend the market.

The US Department of Agriculture and Intl FCStone are already forecasting a decline or slower growth in Chinese soy imports for the next couple of years.

“Today, African swine fever is the bigger story as it relates to demand,” said Corey Jorgenson, president of the grain unit of US crop handler The Andersons, which buys and sells corn, wheat and soybeans from American farmers. “It will impact us for a crop year or more. This is not a 2019 event.”

African swine fever, first spotted in Africa in the 1900s, kills most infected pigs within 10 days, although it isn’t known to harm humans. China has already culled more than a million pigs after 122 outbreaks in 30 provinces. The disease shows no signs of abating.

Cargill, one of the top agriculture commodity traders, said quarterly earnings from animal nutrition and Chinese oilseed crushing were hit by the virus. Andersons also has soybean demand destruction built into its projections.

Pork production in China probably will decline about 30 per cent this year, a drop roughly the size of Europe’s entire annual supply, according to Rabobank, a top lender to the agriculture industry.

Pork production in China is expected to drop about 30 per cent this year, according to Rabobank, a top lender to the agriculture industry. Photo: Bloomberg
Pork production in China is expected to drop about 30 per cent this year, according to Rabobank, a top lender to the agriculture industry. Photo: Bloomberg

The number of breeding sows in China already slumped 21 per cent in March from a year earlier, according to a report by the Ministry of Agriculture and Rural Affairs published on Friday.

The bank says it will take at least three years to rebuild the herd. Informa’s Agribusiness Intelligence is betting on three years, while brokerage FCStone expects at least five years.

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The structure of China’s pork industry makes it “nearly impossible” to stop the spread of African swine fever, said Arlan Suderman, chief commodities economist for FCStone.

That is because a large part of the production and slaughter is in small family-owned operations. Many farmers who had the disease and tried to repopulate their herds ended up getting it again, according to Informa.

“We are seeing that the Chinese hog producer today is not repopulating those facilities because either they are afraid they are going to get African swine fever from a neighbour or it is still in the building and they cannot get it cleaned,” said David Williams, director of global proteins at Informa.

Chinese soy imports dropped 14 per cent in the first quarter, partly as the trade war pushed feed makers to switch to alternatives.

Why are the little piggies no longer going to market in China’s Shandong?

While some fear that could be a permanent change, Jim Sutter, the chief executive of the US Soybean Export Council, says feed makers would return to using whatever is more economical when the trade war ends, and that includes soy.

Soybean imports by China are forecast to decline for the first time in 15 years to 88 million tonnes this season and FCStone says purchases could drop again to 71 million tonnes in 2019-20 due to the impact of African swine fever – the firm’s forecast also assumes the continuation of the tariff dispute.

Soybean imports by China are forecast to decline for the first time in 15 years to 88 million tonnes this season. Photo: Reuters
Soybean imports by China are forecast to decline for the first time in 15 years to 88 million tonnes this season. Photo: Reuters

The USDA’s Foreign Agriculture Service still expects imports to grow next season, albeit at a slower pace. They would remain below levels reached in 2017-18.

China is buying enough soybeans “that they don’t need to try to influence the trade talks”, said Suderman. “That is masking the drop in consumption right now, but that means they will have more soybeans in storage that they can use down the road as well, so eventually we will see that full drop in demand.”

Pork group scraps big trade event over African swine fever fears

It’s not all bad news for the soybean market. In the medium term, China will need to import more pork and other meats. As a result, American pork exports will probably jump 20 per cent this year, while European Union shipments could climb 10 to 15 per cent, Informa estimates.

All of that will require expansion of herds, boosting demand for soy meal and increasing crush margins for the likes of Archer-Daniels-Midland and Bunge.

Soybean-based feed for pigs was already becoming pricier before the swine virus outbreak, because of the trade war. Photo: AFP
Soybean-based feed for pigs was already becoming pricier before the swine virus outbreak, because of the trade war. Photo: AFP

China’s appetite for pork is already starting to pick up. The nation bought a record 77,700 tonnes of US supply in the week ended April 4, even as 25 per cent tariffs on American product remained in place, according to USDA data. The purchase sent Chicago futures up by the daily maximum allowed by the exchange.

The spread of the virus combined with China’s voracious appetite for pork means June hog futures are already up 21 per cent this year, the best performing agricultural benchmark in the Bloomberg Commodity Index.

China to expand soybean crop, subsidies to cut reliance on US imports

Pork prices are expected to rise by more than 20 per cent in the US this year and 15 per cent in western Europe, according to Informa forecasts.

“People are continuing to want to eat pork,” USSEC’s Sutter said in an interview after returning from a trip to China.

“They might in the short run be eating other meats because the price of pork has gone up. But people did not think when we asked them the question that there would be a long-term loss in demand for pork in China. People did not think that was the case.”

Source: SCMP

27/02/2019

Chinese vice premier stresses control over African swine fever

CHINA-BEIJING-HU CHUNHUA-AFRICAN SWINE FEVER-MEETING (CN)

Chinese Vice Premier Hu Chunhua, also a member of the Political Bureau of the Communist Party of China (CPC) Central Committee, presides over a meeting on effective prevention of and control over African swine fever, in Beijing, capital of China, Feb. 26, 2019.(Xinhua/Yin Bogu)

BEIJING, Feb. 26 (Xinhua) — Vice Premier Hu Chunhua on Tuesday called for more efforts on the effective prevention of and control over African swine fever to ensure a stable pork supply.

Hu, also a member of the Political Bureau of the Communist Party of China Central Committee, made the remarks when presiding over a specialized meeting on the prevention and control of the disease.

Hu said the situation remained very grave and it was a pressing task to intensify control efforts.

Hu called for strengthened supervision over pig farms, transport links and pork plants to ensure that all control efforts were firmly implemented.

Source: Xinhua

20/02/2019

China to deepen reforms of agriculture sector to boost rural areas

  • Policy statement outlines broad goals including plan to revive domestic soybean production
A farmer picks tea leaves in Mianxian county, Shaanxi province. Beijing’s policy document reiterated a strategy to improve income levels and living standards in China’s countryside. Photo: Xinhua
A farmer picks tea leaves in Mianxian county, Shaanxi province. Beijing’s policy document reiterated a strategy to improve income levels and living standards in China’s countryside. Photo: Xinhua
China will deepen reforms of its agriculture sector to promote its rural economy, the government said in its first policy statement of 2019, as it seeks to bolster growth and offset trade challenges.

Beijing’s statement, released late on Tuesday, comes after the world’s second-largest economy saw its weakest growth in 28 years in 2018 and remains entangled in a trade war with Washington.

“Under the complicated situation of increasing downward pressure on the economy and profound changes in the external environment, it is of special importance to do a good job in agriculture and rural areas,” the government said in the document issued by the State Council and published by official news agency Xinhua.

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Known as the “No 1 document”, this year’s policy reiterated a rural rejuvenation strategy first laid out in 2017 to improve income levels and living standards in China’s countryside.

It also highlighted a plan to boost domestic soybean production but did not offer further details.

Chinese President Xi Jinping visits a farm in northeastern Heilongjiang province during an inspection tour in September. Photo: Xinhua via AP
Chinese President Xi Jinping visits a farm in northeastern Heilongjiang province during an inspection tour in September. Photo: Xinhua via AP

Industry analysts said on Wednesday they were eagerly awaiting further details to assess the impact of the plan, which had already been flagged by Agriculture Minister Han Changfu earlier this month.

China has been overhauling its crop structure in recent years, reducing support for corn after stocks ballooned, and seeking to promote more planting of oilseeds that it mostly imports.

That goal has become increasingly important since a trade war with the United States, which led China to slap tariffs on soybean imports, tightening domestic supplies.

Han has previously urged authorities in China’s northeast to support soybean production through subsidies and called for rotating of soybeans with other crops including corn and wheat.

Beijing also aims to support the production of rapeseed in the Yangtze River Basin, according to the document.

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As in previous years, it also called for stable grain production, but also an increase in imports of agriculture products where there are shortages in the domestic market.

“The focus now is on retaining production capacity, in the form of high quality farmland, and using the international market to make up production shortfalls,” said Even Rogers Pay, an agriculture analyst at China Policy, a Beijing-based consultancy.

The reference to imports is positive for trade partners like the United States, said Cherry Zhang, analyst with Shanghai JC Intelligence, who said it raised the likelihood that China will buy more US agriculture products.

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Shares of Chinese livestock companies, along with pig and poultry breeders, rose on Wednesday following the release of the policy paper.

The document also outlines plans to accelerate development of a new farm subsidy policy system and further crack down on the smuggling of agriculture products.

Additionally, the government said it plans to strengthen the monitoring and control of African swine fever outbreaks, after more than 100 cases were reported in China since August.

Other plans include continuing to tackle rural pollution and promoting recycling of agricultural waste such as manure and agricultural film.

Source: SCMP

19/02/2019

China warns pork food firms over African swine fever risks

BEIJING, Feb. 18 (Xinhua) — China has urged pork food firms to enhance their management of pork to guard against African swine fever after media reports of suspected contaminated dumplings.

Samples from three batches of pork-filled dumplings from Sanquan Foods tested positive for the nucleic acid associated with African swine fever, according to media reports.

The State Administration for Market Regulation and the Ministry of Agriculture and Rural Affairs urged the company to trace the source of the pork and dispose of related products.

The two ministries required local governments to beef up risk control measures, regulate information disclosure and crack down upon unscrupulous firms.

The African pig plague is a highly contagious viral disease that is believed to only infect pigs. No humans or other species have thus far been infected.

Source: Xinhua

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