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China - The Gift That Keeps on Giving?

15 December 2016

British Pig Executive

CHINA - In the past 18 months, China has become an increasingly important destination for global pig meat exports.

With Chinese imports more than doubling so far this year, USDA anticipates that volumes will reach a record 2.4 million tonnes (carcase weight equivalent) this year. Though imports were expected to be elevated, following the pig herd declining, growth has far exceeded earlier expectations. But, as the Chinese pig sector continues to restructure, will increased efficiencies ultimately reduce the need for foreign imports? And if so, when?

Chinese pork prices need to be elevated in order to encourage investment but, although wholesale pork prices have been high all year, they have fallen back in line with 2015 levels over the past few months. With imports still trending upwards, it is likely competitively-priced foreign pork, now from the US and Brazil as well as the EU, is limiting the domestic price.

To read more about factors influencing the Chinese market in the coming years, click here.

ThePigSite News Desk Read more BPEX News here

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