SOUTH EAST ASIA - Paul Anderson, General Manager South East Asia, discusses the current hog market situation in South East Asia.
Breeding pigs: pig herd size continues to be maintained at a stable level. Estimates of the total number of pig’s nationwide rose 3-3.5 per cent, but in 2017 numbers will start to increase and continue throughout 2018 with some completely new companies entering into the pig business and some of the current producers expanding their existing production. These farms are using the latest equipment and technology, with good genetics suitable for the Asian climate, nutrition, bio-security and staff training get all these right and these farms are set to have a high output of pigmeat.
Pig prices in Vietnam continue at a high level aided by the demand from China. Exports of these live pigs through sub-border gates to China have risen significantly recently given the high demand from China, according to the Vietnamese ministry with up to 3,000 live pigs per day are being transferred to China. Many of these pigs are weighing between 120 - 140kgs and the price per kg/liveweight is up to USD 2.4.
Vietnam’s Ministry of Industry and Trade has issued a warning to local traders regarding unofficial exports of these live pigs to China. The ministry said exports of live pigs from Vietnam to China through sub-border gates and paths linking the two countries are likely to face difficulties because China does not include Vietnam on its list of countries and territories from which it allows pig imports.
Spain plans to export 9,000 tonnes of pork to Vietnam in 2016. Interporc organised a conference in Madrid recently and invited Vietnamese media. Vietnam, the fifth largest pork market in the world, is attracting interest from Spain, France, the USA and Canada.
The pig price is on a downward trend and is currently around 64 baht ($1.83 US).
The extreme hot weather has been causing a reduction in growth rate which due to the fixed amount of pig housing means that the live weight pig to market continues to be sold at a lower slaughter weight of between 95 and 105 kg live weight when the normal target should normal between 110-120kg. This is causing a loss of income about 1150 baht (USD 32.6) per pig sold.
Genesus has entered the Malaysian market with the first shipment arriving early May 2016, first customer feedback is how much quicker they have settled in on arrival compared to other genetics. They are eating well and growing fast.
Like other Asian Countries Malaysian pig farmers are enjoying a good pig price and a period of profitability, they are investing in new genetics with a second shipment of Genesus breeding stock being planned and it also provides cash to adapt the pig housing to the closed system.
This period of profitability is much needed due to the Government law enforcing that all pig housing must be operating on the closed housing system by 2018
The market remains stable with the pig price between 225-275 USD/100 kg liveweight. The current herd size of 550,000 sows is producing a little over 11 million pigs a year. Profit for a 110 kg pigs is close to 1,000 Taiwan dollars (USD31) at the moment. The pig producers are concerned about cheap pork imports from the USA which will have a negative effect on their home market pig price, they worry that all profit for the hard working pig farmers will be gone. Taiwan is an island with hardly any feed raw material produced to rise the pigs.
A group of Pig producers from Taiwan will be making their first trip to tour Genesus farms in Manitoba during October 2016.
The high appetite and calm nature of the Genesus pig is consistently increasing our Asian customers PWSY with lower mortality and reducing the days to market. Customer’s managers much preferred the Genesus animals – a lot easier to manage and feed. In the hot climate especially this would be a huge advantage.
Reduce the number of lost kilos in the hot months of the year due to restricted appetite use Genesus Genetics the pigs with a proven large appetite.
This period of profitability in your region is the time to get your business in shape, I’m pleased on my travels to see a lot of conversions to closed and ventilation and cooling systems which will have a very positive effect. But don’t forget to invest in suitable genetics that perform in your climate also – Genesus can deliver on this.
Faster growth means more kilos can be produced on the same farm in the same time, either by growing pigs to heavier weights or putting more pigs through the same buildings. More kg = higher income. The second advantage of more kilos is lower fixed costs. In pig production, we have only 1 real variable cost. That is finisher feed. Every extra kg we produce needs only food. The cost of the farm, labour, finance, utilities the sow etc…. all remain the same. More kg = higher income and lower fixed costs per kg!
Secondary drivers are earlier maturing gilts. Breeding gilts at 210 days of age rather than 240 saves 30 days-worth of feed. Lower sow and pig mortality, higher sow cull value also reduce cost. Lastly, pigs that are easier to look after (less labour) is also a factor.
The annual Genetic improvement (more pigs, faster growth, less food) achieved by Genesus is $3.68 US / slaughter pig per year, every year!
If you would like to know more about Genesus please contact me:
Genesus will be present at the 2016 Vietstock Expo & Forum, Vietnam’s premier international feed, livestock & meat industry show! The event will be held from Oct. 19 – Oct. 21, at the Saigon Exhibition & Convention Center. If you plan on attending, visit us at the Genesus booth to learn about the latest technology in swine genetics!
To find out more about Genesus Genetics, please take the time to visit their website at www.genesus.com .