Breaking News on Global Meat Trading and Processing

Headlines > Environment

Read more breaking news



China’s climate agenda sparks pork modernisation

Post a comment
Oscar Rousseau

By Oscar Rousseau+

Last updated on 06-Feb-2017 at 14:11 GMT2017-02-06T14:11:53Z

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

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Related products

Related suppliers