Continued Government Support for Pork Breeders

by 5m Editor
19 August 2011, at 10:06am

CHINA - Sen Yu International Holdings, Inc. commented yesterday that it expects a continuation in government support of animal husbandry and rural infrastructure policies for agricultural products to benefit hog breeders on the back of rising hog prices.

The Chinese government typically offers subsidies to help small-scale pig breeders control diseases and encourage them to boost production when pork prices are high. Following a year-on-year 57.1 per cent pork price surge in June, Beijing has resumed an RMB 2.5 billion subsidy to spur pig breeding and prevent future supply shocks, according to China Briefing, a China news service based in Hong Kong.

China is the world's largest pork producer, accounting for over 50 million tons of production in 2010, or half of the world's total production. However, the Pork industry itself is highly fragmented, with the majority of China's pig farms categorized as small-time breeders.

"Pork has historically been the primary animal protein source in Chinese diets and government subsidies to help increase and spur pork production at a time of record high prices are likely to help increase breeders' profits and growth in 2011," commented Zhenyu (Jack) Shang, Founder, Chairman and CEO of Sen Yu International Holdings, Inc. "Against a backdrop of record high prices for pork, we see government support continuing in the future as China grows its pork industry and expect to benefit from government subsidies that encourage breeders to raise more pigs."

Mr Shang added, "Sen Yu continues to refine its breeding techniques, ensuring its pigs are safe and always of the highest quality, and has the production capacity to meet higher demand for pork. Our efficient business model allows us to capture more market share and reduce costs as consumers continue to look to purchase the highest quality pork products derived from our superior quality animals such as our Canadian breeding hogs. We believe strong demand from Chinese consumers coupled with rising middle-class incomes from China's economic expansion will continue to simulate demand for our products."