Genesus Global Market Report
China – June 2019
LYLE L. JONES, DIRECTOR OF SALES CHINA, GENESUS INC.
- The average price of piglets is 46.54 yuan/kg ($1.10/lb.) for the second week of June, which is 2.55% lower than last week’s (47.76 yuan/kg).
- The average price of live hogs is 16.33 yuan/kg., ($1.07/lb.) which is 1.94% higher than last week’s (16.02 yuan/kg).
- The average price of pork is 24.02 yuan/kg ($1.58/lb.), which is 0.04% higher than that of last week (24.01 yuan/kg).
- The average price of corn is 2.02 yuan/kg ($7.42/bu.), which is 0.50% higher than that of last week (2.01 yuan/kg).
- The average price of soybean meal is 3.03 yuan/kg ($398/ton), which is 0.33% lower than last week’s (3.04 yuan/kg).
With all the challenges of ASF, we find the Chinese producers steadfast in their determination. We commend the Chinese people and their resilience in combating this unfortunate disease.
We are now traveling within China and have the following observations:
Measures to deal with ASF will bring about changes and consolidation within the pork industry in China. The China MOA has issued national proposals to divide the country into 5 regions in an effort to prevent the spread and control of ASF and other major diseases.
These proposals will bring about changes within the Chinese marketplace. “Meat Quality” will be the new focus. Pigs must be slaughtered locally within their own region and cannot be transported live to outside markets. The “looks” of the pigs will not be important anymore.
This new focus upon Meat Quality will address concerns over food safety, quality and consistency, increasing consumer demand and product acceptance in a positive way.
Large Scale Reinvestment into the Industry:
China governmental policies include financial subsidies encouraging large sale reinvestment back into the industry. Not all producing countries enjoy these levels of support.
These policies encourage the construction of new slaughterhouses within local regions and that will accelerate the transformation and integration of the pork industry in China as well.
We anticipate these supports to be targeted towards larger companies with dispersed production systems much the same as in Russia after ASF outbreak there.
Larger companies with dispersed production can better control and withstand intermittent ASF outbreaks. In Russia it was 20 companies that received the government’s financial support.
In the China, the number of companies will likely be a much larger number but the affect upon consolidation within the industry will be much the same.
Major push to improve Biosecurity:
A positive result from this unfortunate disease is the major push within the industry to adopt meaningful Biosecurity measures. Producers are adopting and learning SOP’s that are resulting in healthier herds.
Visitors to Company headquarters, offices and facilities must pass thru stringent biosecurity measures including enclosed chambers with disinfecting fogging systems before entering.
Vehicles must pass thru washing stations and are sprayed down with disinfectants prior to entering premises. Trucks are outfitted with water cannons to provide mobile washing of vehicles along roadside points prior to arriving to farms with deliveries of feed and supplies.
Farms are designed with perimeter fences and transfer stations for everything coming into and out of the farm including feed, supplies and pigs.
Investments are being made in more transport trucks designated for certain tasks and specific routes between point A and point B.
Modern Truck Washes and Drying barns are being built to clean, disinfect and dry trucks and trailers before and after use.
All these measures and more are being adopted, implemented and perfected within the pork industry in China these days.
These are positive steps now being taken within the pork industry in China and should give the producers hope and encouragement. Genesus recognizes and applauds the producers in these efforts. Better days are a coming!
Common Biosecurity measures being implemented in China today.
(see photos below)