Genesus Global Market Report SE Asia – June 2019

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Paul Anderson, General Manager South East Asia, Genesus Inc.

Thailand

Live pig price in Thailand continued to increase in the second quarter of 2019 due to slow production during the summer. The shortage is increasingly severe after Cambodia has imposed a ban on imports of pork and live pigs from Vietnam, which is being hit by an outbreak of African Swine Fever.

This has prompted the Ministry of Commerce to collaborate with the Thai Swine Raisers Association to curb the pig price at USD 2/kg. At the same time, the ministry has fixed pork price at USD 5/kg maximum.

Increase in live pig exports:-

It is estimated that live pig exports from Thailand to Cambodia increased to about 2000 heads/day in June, after Cambodia’s ban on live pig imports from Vietnam had taken effect.

Cambodia consumes about 6000 pigs/day and 20% of which is imported. After the ban, the price of live pigs in the country has been doubled to USD2.75/kg.

Meanwhile, rising live pig exports from Thailand is making the country greater at risk from ASF. Cambodia has just reported that parts of the country has been infected with the disease.

Beef up border patrol:

This has prompted Thailand to beef up policing the border to curb smuggling of pigs and pork products from neighbouring countries.

The country’s Department of Livestock Development is collaborating with the Food and Agriculture Organisation to set up vehicle disinfection points along the border of Cambodia, Laos and Myanmar.

Some retreat, some expand:

In the wake of ASF outbreaks in neighbouring countries, some Thai pig farmers are slowing down introducing new breeding stock into their herd from local sources, fearing that they would carry diseases, especially ASF into the farms. This offers an opportunity for Genesus to increase supply of live breeding stock or semen from Canada or the UK.

That is why registered purebred breeding stock from the Genesus nucleus herds in Canada are being delivered into Thailand on a regular basis and fresh semen is being imported once or twice every month from the UK.

Philippines

Genesus Inc. and Golden Harvesta have signed a marketing and production agreement, the first step is a  2,500 sow high health status Nucleus/Multplication herd situated in the Mountains of Mayantac, Tarlac. We will be pleased to offer locally produced superior genetics to the Philippine hog farmers to improve both their performance and reduce their cost of production.

  • Tarlac_120-122 CS 80
  • Bulacan_122-123 CS  80
  • Phil. P.I.G _122 CS 77
  • Rizal_119 CS 74
  • Laguna_122 CS-75
  • Quezon_120-122
  • Bansud_100-103 CS 70
  • Marinduque_95-105 CS-75
  • Cavite_124-127 CS-80-85
  • Batangas _122
  • Pampanga_120 CS 65
  • N. Ecija_120 CS 75
  • Naga,Bicol-_115-125 CS-80

  • Cebu_100-105 CS-70
  • Iloilo_105-110 CS-70
  • Bacolod _110 CS-70
  • Negros Oriental_105-110 CS-60-65
  • Leyte_115-120
  • Gensan_92-98 CS-55-58
  • Koronadal_94-98 CS-75
  • Zamboanga_118-120
  • CDO_96-98 B-80 CS-62
  • Zamboanga Sibugay_95-105 CS-60
  • Surigao_100-105
  • Agusan Sur_100-105 CS-60-65
  • Butuan_90-100 CS-65
  • Pagadian_98-100 CS-65-75
  • Ozamis_95-105 CS-60-65

CS – Cull Sow

As of 01 April 2019, the total inventory of swine in the country at 12.73 million heads was 0.2 percent lower compared with its previous year’s stocks of 12.75 million heads. Population of swine in backyard farms at 8.06 million heads contracted by 1.0 percent from the previous year’s head count of 8.14 million heads. On the other hand, stocks in commercial farms at 4.67 million heads expanded by 1.2 percent from the 2018 level of 4.61 million heads.

Among the regions, Central Luzon recorded the highest inventory at 2.10 million heads. This was followed by CALABARZON and Western Visayas with corresponding inventory of 1.57 million heads and 1.26 million heads. The combined stocks from these regions accounted for 38.7 percent of the country’s total swine inventory. (Table below)

Changes in Swine Inventory by farm type 

Philippines – as of April 1st 2017 – 2019 

The Food and Drug Administration (FDA) has ordered the recall and seizure of imported pork meat products in the market as these may be contaminated with African swine fever (ASF).

During the meeting, National Sectoral and Strategic Concerns Committee – Committee on Poultry, Livestock, and Feed Crops (NSSCCs-CPLFC) Chairman Dr. Rufina Salas said that the hog raisers are requesting for a temporary two-month suspension on the importation of pork and pork products from ASF-affected and high-risk countries.

In effect, this will allow the Department of Agriculture (DA), thru the Bureau of Animal Industry (BAI), and other related government agencies to strengthen preventive measures and actions related to the animal disease.

The hog raisers from across the country will also be appealing to President Duterte to issue an order for the strict implementation of preventive measures against ASF.

Piñol said that the high-risk countries will be defined as any country contiguous with an ASF-affected country. As this may impose potential threat, Piñol immediately ordered BAI to create a monitoring team that will identify and monitor these countries.

DA also seeks cooperation from the importers to support the country’s hog industry, adding that there is enough supply from the local meat producers.

To further secure and protect the swine industry, Piñol directed BAI to monitor animal feeds including dog and cat food containing hog-based meat and bone meal from ASF-affected countries. The DA will draft a letter to the Food and Drugs Administration (FDA) to immediately suspend any documents that may allow the entry of the said products. He also directed the BAI to closely evaluate the point of origins of these products.

Vietnam

The initial impact of ASF has reduced the pig price in Vietnam, the average liveweight pig price of Vietnam is 35,000 vnd/kg (USD 1.50/kg). In the North the pig price is around 29,000 – 39,000 vnd/kg. In the Center of Vietnam is 28,000 – 39,000 vnd/kg and in the South is 30,000 – 37,000 vnd/kg. The pig price in The North of Vietnam has started to increase and the knock on effects of ASF means the northern  market will have a shortage of pigs in next few months, with this plus the return to normal pork eating habits the price is expected to rise to at least the position prior to ASF in the region of 50,000 vnd/kg (USD 2.14) and may well surpass this.

The Government is encouraging the meat processing companies to keep ASF free pork in cold store to reduce the shortage expected in the next 6 months.

Since the Ministry of Agriculture and Rural Development (MARD) confirmed its ASF outbreaks on 19 February 2019, a total of 54 provinces/cities reported outbreaks, more than 2,200,000 pigs have been culled, this leaves just 9 provinces free of ASF.

Vietnam has implemented movement control of pigs and pig products from affected communes; ASF positive farms have been depopulated according to the Action Plan for Emergency Response to ASF. On 20 March, MARD requested provincial/city people’s committee to allow healthy pigs in infected area to be slaughtered for consumption within: infected commune; infected district if >1 communes infected; or provinces if >1 districts infected. No movement from infected provinces is allowed. The Prime Minister Office announced on 7 March the increase of compensation for piglets and fattening pigs to 80%, and x 1.5 – 2.0 of normal compensation rate for sow/boar. The Prime Minister released a Directive (No. 4291 / VPCP-NN, 17 May) to review ASF response plans. The Central Committee of the Communist Party issued the Directive (No. 34-CT/TW, 20 May) to strengthen their leadership and operational instructions for effective implementation of ASF response, control and prevention, one of the directive priorities is setting criteria to restore pigs after an outbreak, to strengthen veterinary system and capacity to be able to carry out the tasks and to strengthen inspection. MARD issued its new guidance (3708/HD-BNN-TY, 28 May) on slaughtering pigs and consumption of pig products.

Cambodia

Since the Ministry of Agriculture Forestry and Fisheries confirmed its first ASF outbreak in Som Kaninh village, Som Thom commune, O Ya Dav District, Ratanakiri Province on 2 April 2019, more than 2400 pigs have died or been culled.

Global MEGA Producers

 

What pork production companies made this year’s
Global Mega Producer list?

WHILE TARIFFS, TRADE and African swine fever are currently creating great uncertainty in global swine markets, over the past year the top pork production companies around the world have made great strides,investing in additional agribusiness opportunities, expanding their integrated business models and exploring niche market demands.

There are now 31 pork operations around the globe that can say they have 100,000 sows or more. Together, these 2019 Global Mega Producers own more than 9 million sows.It’s often said an animal will never get over a good or bad start. That’s why the sow’s job is so crucial to the success of the swine business…read more here

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