Knowledge

To provide the latest market news and hold online & offline events to assist you being well-informed and making decisions.

22

2023

-

03

China's Pig Farms Battle New Surge in African Swine Fever [PART TWO]

Source:

Reuters

Chinese farms typically do not report disease outbreaks to the government, making it challenging to get an accurate picture of the extent of the infections. The Ministry of Agriculture and Rural Affairs did not immediately respond to a request for comment.

Chinese farms typically do not report disease outbreaks to the government, making it challenging to get an accurate picture of the extent of the infections. The Ministry of Agriculture and Rural Affairs did not immediately respond to a request for comment.

The impact of the outbreaks depends on how early they are detected and how they are managed, said the pig company manager. A milder form of the virus that has few clinical symptoms is common, making it challenging to detect, he added.

 

Chinese hog prices have hovered around 15 yuan ($2.18) per kilogramme since late last year, pressured by weak demand and excess supply. Large losses last year encouraged many farmers to downsize herds in the winter, which has pushed up slaughter volumes. Infected pigs sent to slaughter could also be weighing on the price, said Jim Long, chief executive of Canadian genetics company Genesus, which sells breeding pigs in China. ($1 = 6.8940 Chinese yuan renminbi)

 

"We continue to believe the low China hog price is due to many pigs going to slaughter at any weight due to ASF [out]breaks," he wrote in a report this week. The disease outbreaks, as well as the prior herd reductions, will lead to fewer hogs reaching the market when demand improves in the second half of the year, said the Huachuang report.

 

Though not as serious as in 2019, the disease could reduce production by more than 10%, Huachuang analyst Xiao Lin told Reuters. "It is serious in some provinces but not across the country," said Pan Chenjun, senior analyst at Rabobank, who estimated "around 10%" of production could be impacted.