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11/04/2016

Low Productivity and Breeding Ban Handicap Future Hog Supply

China's Ministry of Agriculture held the press conference to release the current situation of hog production, and related policy at 10 a.m. on April 7.

Ye Zhenqin, the spokesman of Ministry of Agriculture said, the hog production has much improved compared to those of previous years. Sufficient productivity as well as better quality safety can meet consumers’ demand by a large. The transition of hog industry has achieved an initial success, and the amounts of small raising households joined industrial production of agriculture. However, there still exists many difficulties in China’s development on their underdeveloped livestock breeding, as for the rise in hog prices, “ There is such high profit of hog breeding recently that large hoggeries are more willing to add the livestock on hand, which provides a sufficient hog supply in near future.”Ye said.

Ma Youxiang, the director of Department of Animal Husbandry responded to some questions about hog breeding ban. “In recent years, bans and limits of hog breeding have reduced the hog productivity a lot”, he said. 10 provinces in China have launched or are preparing for the lay-out of banning areas from hog breeding, making an impact on more than 20 million pigs’ slaughter. As far as we know, many more provinces and regions are going to remove or ban the breeding of pigs and hogs, that will last long and expand nationwide. Hog productivity, indeed under great pressure now will benefit from it to keep the balance of supply and demand in the long run.

Ma also commented that the reduction of productivity in this hog cycle has been influenced by the breeding ban, but the hog price won’t spurt. First, the productivity is under recovery. Second, lower corn prices now save the breeding costs of hog. Third, there is a rarity of hog cholera or swine fever in China currently. Fourth, market demand declines as China’s economy has come into a new stage, in which consumption may help less to promote the macro economy than that before.

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