The Chinese government is urging farmers to rebuild their pig herds and intends to increase imports of pork for their reserves. The ongoing crisis in the pig industry in China because of the ASF is forcing the government to provide pork supplies for its reserves, an official at the Ministry of Agriculture said in an interview with Reuters.
In addition, the government recommends that producers restore their herds, as the volatility of pork prices is expected to increase in the second half of the year. The ASF virus was registered in 24 provinces of China, which resulted in the slaughter of almost 900 thousand pigs. According to Department of Market and Information of the Ministry of Agriculture, the national stocks of pigs at the end of 2018 were 5% lower than the previous year, while the number of sows decreased by more than 8%. Also noted that China expects to use its reserves to help stabilize the market, and also intends to buy more pork abroad to reduce the large price gap between regions.
In the past six months, the Chinese pig industry has suffered from ASF virus. Provinces where there are active outbreaks and surrounding regions are subject to restrictions on the transportation of live animals. And this has already affected the pork supply to the domestic market, as during the recent modernization program of the pig industry, many pig farms were relocated to remote northern areas. However, the majority of slaughterhouses are located in the south near more densely populated areas, which requires long-distance transportation of animals for slaughter.
"Restrictions on the transportation of animals have led to the accumulation of surplus products in the north, while key areas of demand in the south suffer from a shortage of pork. This has led to sharp price increases in various regions," at AHDB analysts say.
Source: meatinfo.ru.
