News

Something is happening in China

Other Frozen Pork Cuts
Meat
China
Market & Price Trends
Published Apr 24, 2024

Tridge summary

The Chinese government has reported a 7% decrease in the inventory of sows, leading to a significant increase in piglet prices and an expected decline in hog production. This situation is expected to cause a supply-chain collapse, potentially leading to higher pork prices globally. In the US, the pork industry is grappling with a capital deficit and needs to increase pork cut prices to become profitable. The CEO of Genesus Genetics Inc. has suggested that pork should be marketed as "the other red meat" to command higher prices, emphasizing the importance of flavor and quality in increasing the market value of pigs.

The author of the comment, Fernando Ortiz H., is the President and CEO of Genesus Genetics Inc., a company that specializes in swine genetics. His strategy involves positioning pork cuts similarly to beef, with higher pricing for cuts like ribs, shoulder, and belly, to increase the value of the pig and make the industry more profitable. This approach underscores the need for pork producers to improve the quality and perception of their product to command higher prices in the market.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

At 12 million head per week, the weekly loss would be $360 million over 18 months, which is equivalent to about $27 billion. The Chinese government estimates that the inventory of sows has decreased by 7% from the previous year, with almost 3 million fewer. When you have fewer females, you have fewer pigs. In January, piglets in China were around $20 US dollars. Last week, piglet prices reached 700 yuan or $100 US. each. It is estimated that the current break-even point to produce a piglet is 450 yuan or $65 US dollars. We always work on the basis that no one pays more than necessary, so $20 to $100 US dls. It is a true reflection of the collapse of supply. Current sales of piglets are from pigs raised 5 months ago. Note that China's sow herd has steadily declined over the same period. There is more than a good chance that hog production will decline further. As pig supplies in the Chinese market plummet in the coming months, higher prices will attract pork from all exporting ...
Source: Agromeat
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