Genesus Global Market Report South-East Asia

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Genesus Global Market Report

South-East Asia

Paul A. Anderson
General Manager South East Asia – International Sales Manager, Genesus Inc.

                           

Thailand


Vietnam has approved imports from Thailand of live pigs consisting of parent stock gilts and commercial hogs. The move is aimed at restocking sow herds and fulfilling Vietnam’s demand for pork. 


The approval for the F1 gilts was made in June and for commercial pigs in July. Since June, nearly 10,000 gilts from Thailand were shipped to Vietnam and about 6000 commercials are being exported daily.


A total of 44 exporters and 1751 farms in Thailand have been certified by the country’s Department of Livestock Development (DLD) to ship the pigs to Vietnam. However, Vietnam’s Department of Animal Health has approved only 13 Thai exporters as eligible for shipping pigs to Vietnam.
Livestock authorities both countries have agreed that all pigs originating from Thailand must come from GAP (Good Agricultural Practice) certified farms. Additionally, 5% of the shipment must be tested negative to Brucellosis, Leptospirosis, and African Swine Fever. Urea test must be negative for beta-agonist, which is an illegal growth promoter. 


Vietnam’s DAH (Department of Animal Health) also requires that all incoming pigs from Thailand to be vaccinated against FMD and PRRS prior to arrival in the country.


Live pig trade between the two countries is boosting the prices of gilts and live pigs in Thailand. Since June, commercial pig prices in Thailand increased by 20% to THB 78/kg ($2.60/kg). Price is still moving forward, and this has prompted the DLD to impose the maximum number of exports at 6000 pigs/day. The number covers commercial pigs, piglets, and processed pork. 

Vietnam


The Covid-19 pandemic has affected 213 countries and territories around the world and claimed over 346,000 lives so far. However, Vietnam, a country of 94 million people that shares a land border with China, where the first novel coronavirus cases were reported last year, has reported only 325 infections and no deaths.


Vietnam has also stayed first on the economic outcomes front, ahead of Bangladesh, China, India and Indonesia. The International Monetary Fund has forecast Vietnam’s GDP to grow at 2.7 percent this year, higher than that of its regional peers, and it is expected to rebound strongly to 7 percent in 2021.


The price of the live pig is now 90,000 – 93,000vnd/kg in the North; 80,000 – 90,000 vnd/kg in the centre and 83,000 – 88,000 vnd/kg in the South. The average price will be around 86,000vnd/kg. For more details on price for every province, please see below

 

Pig price in Vietnam by region

There have been outbreaks of ASF in some areas, namely Cao Bang, Lai Chau, and Dien Bien province. These outbreaks are slowing the national re-stocking of pig herd. The continued shortage of pigs means the pig price remands high, even thou the Government supports imports for both breeding stock and commercial pigs. (source: vietnambiz.vn)

 

According to the Department of Livestock Production, sow herd inventory in Vietnam at the end of April was 2,86 million sows, including 109 thousand GGP/GP sows (source: cucchannuoi.gov.vn)

Philippines

Weekly Prices received by Pork Producers as of July 1, 2020  (NET Price)

We can observe a vast price differential received for market hogs in Philippines, with some regions of Luzon, which has been severely hit by ASF, receiving nearly twice the price compared to the areas still ASF free.


The Philippines had its first African swine fever outbreak in July 2019. The first cases were confirmed in Luzon, including several cities in Metro Manila and nearby provinces. One of the major routes of infection has been reported to be the illegal movement of animals and swill feeding (the feeding of catering waste).

 

Tens of thousands of hogs have since been culled nationwide in the government’s bid to contain the spread. Local authorities have applied several measures to control the disease, including animal movement restrictions; screening; isolation; destruction of animal products; disposal of carcasses, enforced bio-security, etc. 

Commercial pig farmers may now begin to restock their farms’ post ASF using the BAI ASF sentinel program.

  • Two-tree month old sentinel pigs are to be sourced from an ASF negative farm (based on the BAI guidelines).
  • The number of sentinel pigs should be 5-10% of the total farm capacity and have access to all areas of the barn.
  • After a minimum of two months with continuous observation and consecutive negative testing for ASF by PCR and ELISA the farm may proceed to restock.

According to Rabobank, global pork supply is expected to decline by 10% in 2020 as a consequence of ASF and SARS-CoV-2. The key to a successful future with a high pig performance and low cost of production is to have strict bio-security and restock from a reputable genetic company with high health status. Using gilts of unknown genetic merit and/or slaughter generation may save upfront cost but you have to live with the negative long term of poor performance and higher cost of production.

Scandinavian Farms and Genesus Collaboration in China

Jørgen Lindberg,CEO of Scandinavian Farms.

Genesus is pleased to announce the successful shipment of 3 plane loads of swine genetics from Genesus Nucleus Farms in the United Kingdom to Scandinavian Farms Pig Industries of Lianyungang, China.

 

Scandinavian Farms is a Danish Corporation which established a Danbred Nucleus Herd in China in 2013. Scandinavian Farms current production capacity is 14,000 sows.

In a recent magazine article in his native Denmark, Jørgen Lindberg, CEO of Scandinavian Farms was asked the following.

 

“Why do you switch now from Danbred to Genesus?” 

“It is an important decision when choosing which genes to build your herd on. Therefore, we have examined the market and the various suppliers very thoroughly. Overall, we think we get the best solution with Genesus, both when we look at the agreement and the terms, as well as when it comes to the pigs we get from Genesus.”

– Jørgen Lindberg, CEO of Scandinavian Farms

“Were you not satisfied with DanBred’s pig?”

“Yes – the pigs from DanBred have the best genes in the world, and it went well. We had both a nucleus herd with 1,600 DanBred sows that we owned together with DanBred, and a production herd with 14,000 sows and the production of 350,000 slaughter pigs annually. But we have learned that pig production in China is not the same as in Denmark. We cannot expect our employees out here to manage the pigs as we are used to in Denmark. That is why we are now switching to pigs that do not need near the same thorough care to produce good results.”
– Jørgen Lindberg, CEO of Scandinavian Farms

“What is it that the pigs from Genesus can?”

“With the Genesus sows we get about 16.5 piglets per litters compared to DanBred’s 17-18 piglets. In contrast, the birth weight of the Genesus pigs is quite a bit higher and the pigs are stronger. In Chinese conditions, we believe that it is an advantage with fewer, but in turn stronger piglets, which easier will get all the way to slaughter. As another important factor, feed is 60 percent more expensive in China than in Denmark. Therefore, it is important that the pigs are strong from birth so that they utilize the feed better and reach the slaughter weight faster.”
– Jørgen Lindberg, CEO of Scandinavian Farms

 

Source: Danish agricultural newspaper “LandbrugsAvisen”
Article Written by Einar Bo Thomsen

Scandinavian Farms and Genesus have established a Genetic Service and Marketing Agreement. Scandinavian Farms will work jointly with Genesus in selling Genesus Genetics in China.

“Genesus is proud to have the opportunity to work with Jorgen Lindberg and his team at Scandinavian Farms. The long-term genetic agreement we have entered into together will allow us to strongly market Genesus genetics in China and is proof of our commitment to the Chinese swine industry”

– Mike Van Schepdael, Vice President of Genesus

One of 3 planes being loaded.

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