Pork Commentary: Asian Road Trip

MALAYSIA - We are currently in Kuala Lumpur, Malaysia on our first leg on out Asian road trip that will also take us to Singapore, Thailand and China, writes Jim Long President –CEO Genesus.
calendar icon 1 August 2016
clock icon 3 minute read

We have just spoken at equipment company Big Dutchman's global conference – challenges 8.0.

It was an honor to speak at the conference on key global swine markets now and in the future. Big Dutchman is one of the worlds major livestock and poultry equipment manufacturers with about 3,000 employees around the world.

The conference brought Big Dutchman people numbering around 500 for the 3-day conference.

The conference focused on the challenges Big Dutchman, the poultry and the livestock industry have addressing environmental, animal welfare, productivity demands and the huge demand increase for protein by 2050 when there is expected to be 10 billion people in the world.

Much of the population increase will be in Asia as well as the increased protein demand. Its obvious Big Dutchman chose Asia for their major conference as they position for the next thirty years of protein development in Asia.

My son Spencer who has travelled much of the world with me the last few years commented yesterday: “This is the first country we have been that’s majority Muslim.” He is correct, selling Genesus swine genetics, we have never focused on Muslim countries for one obvious reason. They don’t eat pork.

In Malaysia there is swine production and Genesus has a sales presence and genetics in production. The pork is consumed by the Chinese minority (non-Muslim) but in the hotel, there is no pork. No Bacon, Chicken Sausage (terrible), Beef Sausage (better then chicken).

In our talk today we spoke about different countries and where they are now.

Our summary:

Global Trend

  • There will be more pigs but fewer producers
  • Average farm size will get larger
  • Animal welfare housing push will continue
  • Hog weights will continue to increase
  • Environmental challenges for new buildings
  • There will be demand for pork with good eating attributes
  • Pork Cycle will continue – high prices followed by low prices – there will be profit and loss cycle

Average Cost of Production

Its obvious lower cost of production in the USA, Canada and Brazil give us significant cost advantage ($40-50 USD vs. Europe a head). Key component duties and market access.

Pork Export

  • Trade – will increase but will be ongoing battle as countries try to protect their producers
  • Technology – including Genomics will increase productivity – new equipment design. We expect a handful of Global Genetic, Equipment, Nutrition companies.
  • Pork will continue the world’s Number 1 meat. People want Red Meat.
  • The future is bright for the Global Pork Industry and the participants that use the tools available to maximize productivity and profit
Picture with Bernd Meerpohl, Chairman of the Board of Management for Big Dutchman
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