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ThePigSite Newsletter - 22 August 2011

ThePigSite Weekly Newsletter
Monday 22nd August 2011
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Welcome to this week's newsletter

Editorial – Focus on the Changing Industry in China

Rising costs and diminishing returns are changing the way that China, the world's top pork producer, raises pigs.

According to local official sources, small family farms are buckling under the combined weight of volatile prices, disease and rising costs.

At the other end, industrial-scale farms are becoming part of the landscape. But between these two options is a new cooperative venture that combines the personal attention of the family farm with the economic advantages of a corporation.

For example, one farmer in Qinyang in Henan province used to raise more than 100 pigs at a time, making him the most prolific pig farmer in his village. In May 2010, he built a new barn for 200 pigs but higher costs and lower returns took their toll and he quit the pig business earlier this year. Poultry inhabit the big new barn now.

The smaller farmers blame the high cost of feed as well as the attractions of better paid work in the cities and disease and may have quit the industry..

Henan produces 50 million hogs on average every year or nearly 10 per cent of the country's total. Qinyang's average production is more than 200,000, ranking it in the middle range. But of the 26,000 pig breeders in Qinyang, 90 per cent have fewer than 1,000 pigs and less than 25 have 1,000 to 4,000 pigs.

As the small-scale breeders withdraw from the market, the bigger producers have not expanded for fear of prices dropping due to oversupply in the market. The result is the current shortage and high price of pig meat across the country.

Central government has recently invested heavily in the industry to feed its growing middle class, which is consuming more meat, last month resuming a large subsidy to spur pig breeding and prevent future supply shocks. Family farms, with fewer than 500 pigs, however, do not receive any of this subsidy.

A recently emerging solution to the problem of supplying sufficient pork to the population are firms such as Chuying. Based in Henan, it sold about 660,000 hogs last year. It has developed what it calls a ‘staging’ system that has attracted thousands of participating farmers. Chuying has divided the traditional raising process into four stages – pregnancy, delivery, care of baby pigs and raising them to market size. Farmers are guided by trained technicians and are involved in just a single process.

Chuying has 80 other breeding bases in the province, each with a single stage. Workers, who are independent contractors, are paid according to how much work is required so they are no longer at the mercy of the fluctuating pig market.

In 2008, fewer than one per cent of China's pigs came from producers raising more than 50,000 pigs every year. Now, Chuying is investing heavily in a breeding farm in Henan that will have an annual capacity of one million hogs.

And Chuying is not the only company using large-scale production models. Sichuan-based New Hope Group (China's top animal feed producer) and Thailand's CP Group are also investing large sums in large pig facilities and many family pig farmers are signing up with these organisations.

Owing to a public holiday on Monday next week, the next newsletter from ThePigSite will be sent out on Tuesday 30 August.

Jackie Linden

ThePigSite Book Focus

Pig Journal Volume 65 Pig Journal Volume 65
Pig Journal Volume 65 abstracts are available on-line to review here: View abstracts
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Pigs for the Freezer Pigs for the Freezer
Pigs for the Freezer is aimed at the small-scale producer in a suburban or urban environment as well as smallholders who want to keep a few pigs for the first time. It guides the reader through the day-to-day routine of looking after pigs and provides essential information.
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Pig Production Training Courses on-line. Training! You know it makes sense

* This Week's Feature Articles

We have 6 new features this week:

Feeder Management - Fine Tuning Your Feeders
Research from Kansas State University suggests that optimum feeder gap setting may differ with growth phase, according to Doug Richards, Swine Grower-Finisher Specialist with OMAFRA in the latest Pork News and Views from Ontario's Ministry of Agriculture.
Shoulder Sores
The causes, treatment and prevention of shoulder sores in sows are set out in Knowledge Transfer Bulletin No. 17 from BPEX.
US Pork Outlook - August 2011
High feed prices will curb production next year, according to the USDA Economic Research Service in its Livestock, Dairy and Poultry Outlook for August 2011.
United Kingdom Pig Meat Market Update - August 2011
The DAPP in the UK continued its redent upward trend in June but then fell back again during July, according to James Park, senior economic analyst with AHDB Meat Services Economic and Policy Analysis Group in his latest explanation of the trends in the UK and EU.
Feed Outlook - August 2011
Lower projected yields have reduced global production prospects, according to the latest report from the USDA Economic Research Service.
BPEX Export Bulletin - August 2011
The British Pig Executive's (BPEX) Export Bulletin for August 2011 reports pig industry trends from around the world.
The first and only vaccine for the control of Porcine Proliferative Enteropathy.
* Company News

Western Australian Pork Industry Training a Success
AUSTRALIA - Western Australia's pork industry has been strengthened with a specialised skills training programme producing nearly 70 graduates from two courses held over the past year.
BPEX Offers Producers Chance to Benchmark KPIs
UK - The latest Key Performance Indicators (KPIs) have just been uploaded to the BPEX web site so producers can work out their efficiency.
Review: The Pig Journal, Volume 65 (2011)
UK - The latest edition of the Pig Journal, published by the UK Pig Veterinary Society is now available.
* Global Pig Industry News

   United States

 » CME: Estimated Pork Production up for 2012
 » Market Preview: USDA Crop Estimates
 » Listeria Prevalence in RTE Meat, Poultry Declines
 » No Room to Increase Corn Consumption
 » Team Addresses Climate Change, Animal Agriculture
 » CME: Disappointing Pork Shipments
 » Weekly Roberts Market Report
 » President Obama Urged to Stop GIPSA Rule
 » Perfect Timing for Conference on Feed Efficiency
 » US Hog Margins, 16 August 2011
 » CME: Lean Hogs Futures Down
 » Study: PRRS Costs Industry $641 Million Annually
 » CME: June Meat and Poultry Prices Steady
 » International Pork Trade Sails Smoothly

   United Kingdom

 » Studies Examine Bio-Reduction of Carcasses
 » Meaty Reward for Top Training Scotland Players
 » Red Tractor Caters for Twice as Many
 » Coming Dialogue on Antibiotic Use in Food Animals
 » Govt Welfare Committee Seeks New Expertise
 » Contract Prices Disappoint Sellers

Circovac - Nothing protects earlier

 » New Rules on Slatted Floors from 2013
 » Danish Pork Production Remains Strong


 » Villagers Taken Ill After Consuming Pork

Performance, Unleashed

 » Agricultural Output up Five Per Cent


 » Rwamagana Farmers Embrace Pig Rearing


 » Urban Public Urged to Be Part of Lake Debate
 » Lack of FTA Impedes Canadian Pork Exports to Korea
 » Encouragement to Share Story of Food Production
 » Government to Invest in Farming

SowComfort - Never before has standing been so easy!

 » Cargill to Acquire Provimi
 » USGC Works to Smooth the Way for DDGS Exports
 » Canada-Colombia FTA Comes into Effect
 » Reduced Pork Production and Strong Demand


 » Marfrig Reports Net Revenue up 50 Per Cent
 » Net Revenue up Four Per Cent for JBS
 » July Pig Meat Exports Drop in Volume and Value

   European Union

 » EU Pig Prices: Unchanged to Slightly Weak Levels


 » Research Community Helps Kickstart New Pork CRC


 » Pork Commentary: Road Trip to China
 » Pig Shortage Boosts Tianli's Results
 » China to Import More Pork
 » Shuanghui's H1 Net Profit Goes Down
 » Continued Government Support for Pork Breeders
 » Chinese Pig Farmers Hope to Breed Success

   Russian Federation

 » Two More Outbreaks of CSF in Western Russia
 » Russia Reports Two New Outbreaks of ASF


 » Ukraine to Build up Pig Meat Exports


 » Ag Minister to Push for Expansion of Pig Industry

MSD Animal Health - It's a New Day for Animal Health

That's all for this week!

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