W46: Weekly Pork Update
Global: World Meat Production Increases by Just Over 1% In 2022
There will be approximately 360.1 million tons of meat, a little less than what was forecasted last June, but 1.24% more than what was produced in 2021. This will be almost 6% more than that was produced in 2020, year outbreak of the current pandemic. Pork production accounts for about 34.6%. Exports/imports of pork should fall by around 11%, causing world trade to decrease by close to 1%, reaching the lowest level of the last three years. Per capita consumption, in turn, tends to remain almost stable, with an increase of less than half a percent due to a 1% increase in pork, 0.72% in beef and 0.44% in lamb.
Europe: SPP Holds at £2/KG Mark During October
The average price for the EU-spec SPP in the four weeks ending 5 November was 200.28p/kg, holding a consistent price when compared to the previous four-week average. Prices continued to hold above the £2/kg threshold in the week ending 5 November at 200.39p/kg. The EU-spec APP topped 204p/kg in the week ending 29 October, pulling back by 0.16p on the week. In the four weeks to 29 October, the APP averaged 203.95p/kg, up 0.82p/kg (0.4%) on the previous four-week period. While the market is holding above 200p/kg, it still falls short of the latest cost of production estimates, which are now sitting at 232p/kg deadweight for October 2022. Slaughter numbers rose in the period, with clean pig slaughter for the four weeks ending 5 November estimated at 717,980 head, an average of 179,500 per week. This was an increase of 28,330 head on the previous four weeks. In the week of 5 November, estimated slaughtering saw a notable drop of 3.9% on the week. Year to date, its estimated that 7.85 million pigs have been processed, a small reduction 0.4% (33,800 head) down on the same period in 2021. Carcass weights have fluctuated across the month, seeing a softening over recent weeks, while the average across the 4-weeks to 5 November stood at 90.33kg for EU-spec SPP. This compares to an average of 90.04kg in the previous four-week period (+0.3kg) and tracking 3.78kg above the 5 year average. The EU-spec APP average carcass weight increased during the latest 4-week period, up 1.42kg to 89.84kg for the four weeks to 29 October.
Europe: Why Are the Purchase Prices of Fattening Pigs Unprofitable
The situation in the pig sector is very difficult, the stock is constantly decreasing. The stock of sows in the country is falling even more dramatically. In the June census of the Central Statistical Office, it amounted to just over 600,000 pcs. This trend of unprofitability does not only apply to Poland, but also to many EU countries, which record continuous losses in this production. This is how Dr. Marian Kamyczek, director of the Animal Production Institute, NRI ZD in Pawłowice, assessed the current situation during the conference National Challenges in Agriculture. There has been a decline in pig stocks everywhere, with the exception of Spain. In Spain, there are 32 million pigs which are the greatest potential. Germany has only 22 million pigs in the June census, which is 10 million less than Spain. However, in other countries, these decreases are also clear. Unfortunately, against this background, Poland stands out even more with the loss of both pigs and sows. First, the German industry bought half-carcasses when they were cheap. In 2020, the average monthly stock of frozen pork was 138,000 tons, a year later already 183 thousand tons, and at the beginning of 2022 they exceeded the level of 200 thousand tons. From their point of view, those who bought cheaply, it is reasonable to release this product now, e.g. at EUR 1.90/kg, and thus cause the price to drop. On the other hand, as in other countries, energy carriers have become more expensive, electricity and storage are becoming more and more expensive. All EU countries recorded a decrease in exports to third countries from January to the end of 2022. Even Spain, which is ASF-free, has a large population, exported a lot in total, as much as 928,000 tons of pork but it is still 23 percent less than a year earlier. Germany, on the other hand, has a decrease in exports by 35 percent. Other countries also recorded declines, such as Denmark, Belgium, and the Netherlands. If there is no export to third countries, this pork stays on the market of EU countries. Overproduction is always associated with the fact that a lower price is forced, which is offered to producers, said Dr. Kamyczek.
Spain: Bearish Session in Zamora With Decreases in Pork
The decreases have been the main protagonists of the session on November 14 at the Lonja de Zamora with a new decrease in white pigs, while piglets repeat the previous values. The decreases in white pigs continue, with a drop this week of 0.014 euros in such a way that the "normal" is placed at 1,654 euros per kilo and both the "select" and the "fat" at €1,657. The piglets continue in the previous values with those of "great game" at 58 euros and those of "collection" at 49.
Spain: Soccer and Pork Meat, Symbiosis of Excellence
The minister recalled that Spain is the third world producer of pork and the first in the European Union. In just over the last decade, Spain has increased pig production by 40%, making this sector the most powerful in Spanish livestock. Currently, there are more than 49,000 pig farms that generate 8,854.7 million euros. Thus, pigs represent 43% of final livestock production and 16% of final agricultural production. In foreign trade, 2021 has been a year of great figures, with 7,635 million euros of exports, representing 1.1% more than the previous year. Regarding the Let's talk about pork campaign event, Luis Planas appreciated the choice to combine two elements in which Spain represents the highest excellence worldwide. On the one hand, the reality of the best pork products and, on the other, the illusion of an expectation before one of the greatest spectacles in the world, the soccer world championship, which takes place in Qatar.
Spain: Meat Exports Outside the EU Drop By 19%
The last of the CEXGAN reports in relation to meat exports outside the European Union show the great influence that the brake on pork sales to China has for all Spanish sales. From January to September, 1.35 million tons were exported, which is 19% less than in the same period of 2021. The reduction in pork sales has the same percentage reduction and amounts to 1.21 million tons, accounting for 89% of the total amount exported by Spain. It should be noted that pork exports to China have been reduced to less than half of what they were last year: from 1.06 million tons exported from January to September 2021, to 497,000 in 2022.
US: Pork Exports Increased Again
According to the latest data from the United States Department of Agriculture (USDA) and the US Meat Export Federation (USMEF), US pork exports in September amounted to 222,202 tonnes, an increase of 1%. The value of exports increased by 9% to $664.8 million, the highest level since June 2021. Recently, the US has had to deal with a significant drop in sales volumes and declining export revenues. By September, pork exports totaled 1.94 million tons, down 13% on a YoY basis as compared to the previous year. Mexico remains the main buyer of US pork, although its exports fell for the first time since early 2021. In September, a total of 76,084 tons of pork were exported to Mexico, and in the first three quarters of this year exports amounted to a record 696,802 tons. On the other hand, US pork exporters saw a recovery in exports to Japan and South Korea. Exports to Japan increased by 7% to 31,008 tonnes compared to the same month last year. Despite this, sales from January to September in the amount of 276,294 tonnes could not match the volume of the same period of the previous year and fell by 8%. Pork exports to South Korea increased by as much as 40% in September. As a result, the total volume increased from January to September to 132,971 tonnes, up 4% as compared to the first three quarters of 2021. Demand from China, including Hong Kong, for US pork, which has fallen significantly since the beginning of the year, is slowly picking up again. September exports to China amounted to 51,036 tonnes, an increase of 12%. Every year, however, from January to September, total exports to China/Hong Kong were still 40% lower than the value from the previous year and amounted to 374,458 tonnes.
US: Pig Farmers Filed a Lawsuit Against the State of California
As of 2018, there was a legal dispute in the US over pig farming. At the time, California voters held a referendum to ban the sale of pork from pigs that were not raised to California standards. This also includes animals raised outside of California. As a result, the National Pork Producer Council (NPPC) and the American Farm Bureau Federation (AFBF) jointly filed a lawsuit against the state of California. In their opinion, the act violates, among other things, the freedom of trade, both inter-state and international. American pig farmers believe California's animal husbandry standards are arbitrary. They lack any scientific, technical or agricultural basis. For example, the referendum set the minimum area for rearing pigs and sows at 2.2 m². However, the current legal standard in the US is 1.3 to 1.9 m². Farmers believe that the only thing that can be achieved is economic damage to American pig farmers and consumers. According to the NPPC, 40 million Californians consume about 15 percent of the pork in the US. Imported pork from out of state accounts for 99.9 percent of the pork.
US: Lean Hog Futures End Higher
CME lean hog futures inched higher for a third straight session on expectations of tightening hog supplies and optimism about pork demand from China. CME December lean hog futures settled up 0.250 cent at 85.575 cents per pound. Most-active February hogs LHG3 ended up 0.275 cents at 90.350 cents after reaching 90.725 cents, a three-week high. An active hog slaughter pace was supportive. Meatpackers slaughtered an estimated 493,000 hogs on Wednesday, up from 476,000 head a week ago, the USDA said.
Germany: Pig Slaughtering Continues to Decline
The strong decline in pig slaughter in Germany continued unabated in September. According to the data from the Federal Statistical Office (Destatis), almost 3.87 million animals were hooked in local slaughterhouses in the month under review; that was a good 10% less than in September 2021. Pork production was 10.4% below the level of the same month last year. Normally, slaughter increases seasonally from August to September, but this year the slaughter rate unusually decreased by 1.4%. The balance sheet for the first three quarters of 2022 does not look much better. According to the statisticians from Wiesbaden, a total of 35.33 million pigs were butchered in this period; compared to the same period in the previous year, this means a minus of 3.51 million animals, down by 9.0%. Pork production even fell by 9.8% to 3.36 million tons due to the average slaughter weight falling by 800 g to 95.2 kg per pig. The dramatic decline in local pork production becomes even clearer when compared to the levels five years ago. From January to September 2017, 43.45 million pigs were hooked; that was 8.12 million units indicating about 23% more than today. The decline in pig slaughter this year is solely due to the lower supply from domestic fattening houses. The number of domestic pigs delivered fell by 3.51 million units which is 9.3% to 34.21 million compared to the first three quarters of 2021. In contrast, the foreign pigs processed in Germany increased by 0.8% to 906,800 animals. Five years ago, from January to September 2017, the number was still a good 3 million.
Germany: Industry Warns of the Possible Lack of Pork Supply in 4-5 Months
The German Association of the Meat Industry (VDF) has warned that the disappearance of pig farms in the country represents a structural bankruptcy in German pig farming and that it will bring with it a shortage of pork. In four to five months, the first supply gaps could become apparent, according to the VDF warning. The number of pig farms has been reduced by 41% in the last 10 years, between 2012 and 2022, according to data from the German Statistical Office (Destatis), which has gone from about 32,000 to about 18,000 farms. The census has been reduced by 20% in the said period, going from 28 million heads to 22.5 million. The German pig sector regrets that now the meat industry warns of the possible lack of meat, when they have been warning for two years that pig farmers are going through an unprecedented crisis that is leading many to close down.
Brazil: Mexico Opens the Market for Pork Produced in Santa Catarina
The State Government celebrates the opening of the Mexican market for pork from Santa Catarina. The announcement was made by the Ministry of Agriculture, Livestock and Supply this Monday, the 14th, and, for now, this will be another exclusive destination for Santa Catarina production. The publication of the authorization was made by Senasica, a body equivalent to the Brazilian Ministry of Agriculture, responsible for controlling the production, import and export of food in Mexico. Mexico is the world's third largest importer of pork. In 2021, it imported 1.16 million tons of the product and this year, purchases are expected to reach 1.25 million tons, a volume that should be maintained in 2023. From January to October 2022, agribusiness in Santa Catarina exported 497.9 thousand tons of pork, with a financial result of US$ 1.1 billion. The state accounts for 55% of Brazilian shipments and production from Santa Catarina supplies to around 70 countries.
Brazil: The CEPEA Swine Bulletin for October
The rise in live hog prices at the beginning of October ensured that the monthly average closed above that registered in September. This is because, in the last weeks of the month, the values of the animal retreated in most of the regions monitored by Cepea. It should be noted, however, that, in many squares, the October average was still lower than that of the same month in 2021. Brazilian exports of pork meat, considering in natural and industrialised products, decreased in October. According to data from the Foreign Trade Secretariat (Secex), 97.2 thousand tons of protein were shipped last month, 4.1% less than in September and 0.5% below the volume shipped in October 2021. In view of the increases in live animal prices in all markets monitored by Cepea in the first weeks of October, the monthly average for pigs was above that recorded in September. As a result, the purchasing power of pig farmers increased in relation to corn, but decreased in relation to soybean meal, given that, in some markets, the oleaginous derivative appreciated in the same proportion or even more than the animal. Pork prices rose sharply from September to October, whole chicken protein prices rose slightly and beef prices fell. In view of this, in October, the competitiveness of pork fell in relation to these two substitute proteins.
Pork shipments had an average/day of 5,358 tons (+45% compared to November 2021), with revenues of US$ 2,585.00, up 14.5% compared to 2021. In eight working days of November, exports of the product totaled 42,866 tons and revenue was US$ 110.8 million.
Brazil: Pork Exports to China Should Sustain Production
The new supply and demand report for agricultural products by Rabobank projects a further increase in supply of 1% in 2023 for pork. “Guided mainly by exports, which should recover 2% of the volume shipped compared to this year”, comments Rabobank. “The beginning of 2023 will be the first challenge for the sector. The seasonal reduction in demand from China (which has already prepared inventories for the Chinese New Year holiday) and the seasonal drop in domestic consumption are factors that should bring a scenario of pressure on live hog and wholesale pork prices /retail, with the market itself testing consumer purchasing power”, he adds. The search for new destinations should remain one of the main objectives of the export sector next year. “With the tendency to maintain the recomposition of the pig herd in China and the recovery of global supply, an increase in competitiveness in the foreign market is expected”, he indicates. In the Brazilian market, the sharp drop in margins at the beginning of the year was due to the combination of a seasonal drop in live hog prices and a record increase in feed prices, which had a negative impact on the productive sector, mainly the independent producer.
Brazil: Pork Prices Have Different Movements Between Regions
According to researchers from Cepea, in Rio Grande do Sul and Minas Gerais, the restricted supply of pork at ideal slaughter weight has been raising and/or sustaining animal values, when considering the October and November averages. Already in most of the squares of Paraná, the difficulty in the disposal of products and in the loading of animals for slaughter in the beginning of this month ended up putting pressure on average prices in November. As for the meat market, slaughterhouse agents indicated a slight increase in demand from wholesalers in the first half of this month, especially for cuts such as rack, bone-in ham and boneless shoulder, which has been causing positive adjustments in prices.
Brazil: Pork Production Costs Rise in October and Broiler ICP Is Practically Stable
Pig production costs rose in October according to studies published by CIAS, Embrapa's Poultry and Pig Intelligence Center. The Production Cost Index, the ICPSuíno, rose 0.71% in October compared to September, closing at 449.20 points. Nutrition costs, with a 0.95% increase, and a weight of 80% in the composition of the total cost, was what most impacted the October 2022 ICPSuíno. Thus, the total cost of production per kilogram of live pig produced in a complete cycle system in Santa Catarina went from R$ 7.80 in September to R$ 7.85 in October. In the year, the ICPSuíno accumulated 12.16% and, in the last 12 months, 15.40%.
Brazil: IBGE Data Indicate a Reduction in the Pace of Growth in Pork Production
On the 11th, the IBGE published preliminary slaughter data for the third quarter of the year. In this period, hog slaughter grew 3.76% in tons of carcasses (+48 thousand tons) compared to the same period last year, and only 1.45% (+19 thousand tons) compared to the second quarter of 2022, evidencing the slowdown in the pace of production growth. In the year (January to September/22) the growth was 5.7% (+209.1 thousand tons) compared to the first 9 months of 2021. Maintaining the averages of the 3 quarters, the year 2022 should end with the production of 5.17 million tons of pork carcasses, 274 thousand tons more than 2021 (+5.59%). Exports of fresh pork meat in October/22 totaled just over 90,000 tons, decreasing compared to the previous month, surpassing the volumes of October 2021 (Table 2). In the accumulated result for the year, the shipment deficit is only 4.4% compared to the period from January to October/21 (-32.77 thousand tons).
Brazil: Live Hog Price Remains Unchanged Throughout November
The pork market continues without showing greater movement in the retail trade. Even so, pig farmers continue to sustain prices in closings made with live pigs. The result, at this moment, is an average daily price that remains unchanged throughout November, remaining below the average evolution achieved last year and in the history of the last 12 years. Had it followed the historical average, the current price would have been R$142.00, while due to last year's evolution it would have reached R$159.00. Negotiations with live hogs for next week point to price maintenance in this period of greater consumer weakness. Quite different, therefore, from the good progress seen last year when prices showed a new evolution.
Mexico: Pork Imports Continue to Grow Despite Price Increases
Preliminary international trade figures published by GCMA indicate that the cumulative volume of pork exports through September decreased by 11.3% compared to the same period of the previous year, going from 200,020 to 177,400 tons (t). However, the value of these exports (USD 720,198 thousand) decreased by only 7% due to the 4.9% increase in the export price, which stood at USD 4060/t. Imports reached 1,051,450 t in the period under analysis, an increase of 10.8% compared to the same period in 2021 (949,091 t). Imports reached a new record level despite the 4.8% increase in the average price of the imported product (USD 2000/t).
Poland: Purchase Prices of Live Pigs
Since the beginning of 2022, both in the EU and in Poland, there has been an upward trend in the purchase prices of live pigs, although with a slight decrease recorded in May this year, caused, among others, by increasing production costs, i.e. feed, energy, transport, with a simultaneous decrease in the supply of livestock on the market as a result of a smaller livestock. An additional price-setting factor is the ongoing war in Ukraine and the related concerns about food security. In August 2022 (data from the Central Statistical Office), suppliers for pigs received PLN 7.61/kg, which is 6% more than in July this year and by 47% compared to a year ago. Prices of live pigs on a weekly basis also increased in September. On September 19-25, 2022, in meat plants covered by the monitoring of the Integrated Agricultural Market Information System of the Ministry of Agriculture and Rural Development, pigs were purchased at PLN 7.88 / kg, i.e. 3% more expensive than a month ago and 83% more than a year ago.
Poland: The Senate Acted on Support for Pig Producers
It is about the amendment of the Act on supporting rural development with the participation of the European Agricultural Fund for Rural Development under the Rural Development Program for 2014-2020, which the Sejm passed on November 4 this year. 95 senators voted for the resolution on Wednesday, no one was against or abstained from voting. The bill will now go to the president's signature. The draft regulation to the Act provides that the aid will be granted to a farmer who, by May 15, 2022, has reported to the livestock register the marking of at least 10 pigs born in the herd headquarters from April 1, 2021 to March 31, 2022. The amount of aid will depend on the number of pigs entered. For example, if a farmer has registered at least 10 animals, the aid will amount to PLN 2.4 thousand, and in the case of 600 pieces, one will get 70 thousand zloty. It is assumed that all eligible farmers will receive aid. It may be granted only once and may not exceed the PLN equivalent of PLN 15,000 Euro. The amendment also provides for changes to the Income Tax Act. The point is to exempt agricultural advisory units from paying this tax. The changes will come into force on the day following the announcement, with the exception of the tax regulations, which will come into force on January 1, 2023.
UK: Pork Trade Remains in Year on Year Growth
UK exports of pork (excluding offal) totalled 17,900 tonnes in September, up 4% from August and a 9% increase from September 2021. This brings the year to date (Jan-Sep) total for pork exports (excluding offal) to 177,200 tonnes, a 7% increase YoY, but volumes remain below those from before the pandemic. Volumes to China continue to decline as domestic production recovers from ASF, with year-to-date shipments down 34% from the same time last year. The EU continues to increase volumes, up 49% YoY, counteracting the volumes lost to China. Volumes to the rest of the world have dipped in 2022, but with the opening of new markets, more opportunities for exports should be generated. UK pig offal exports have been in growth for a number of years. Despite volumes shipped in September being 2% behind August at 11,300 tonnes, they are up 31% compared to September last year. This brings year to date (Jan-Sep) volumes to 107,000 tonnes, a YoY increase of 11%. China retains the largest market share of UK offal exports. Shipments to China have totalled 47,900 tonnes so far this year, however this is 3% behind last year. This decline has been outweighed by growth in the EU and Philippines, where shipments have increased to record highs of 30,100 tonnes and 13,000 tonnes respectively.
Russia: The State Duma Extended the Exemption From VAT on the Import of Breeding Animals and Fish
The State Duma adopted a law in the II and III readings, which extended the exemption from VAT on the import of breeding animals and fish into the Russian Federation until January 1, 2025. These include the imports and sales in the Russian Federation of breeding cattle, pigs, sheep, goats, horses, poultry and eggs. The list also includes embryos obtained from the seed of these farm animals. Exempted from value added tax, including breeding fish and juveniles derived from it.
Russia: Expectation to Recovery in Pork Export Volume
According to the General Director of the National Union of Pig Breeders, Yuri Kovalev, pork exports in the first half of the year were down 25% which is about 50 thousand tons. However, exports are recovering according to the results from the last nine months. The Union predicts that by the end of the year Russia will export about 170 thousand tons of pork products, which is slightly less than last year. The reduction in pork exports in the first half of the year was influenced by the change in market conditions associated with higher logistics costs, difficulties in making payments, and the fall in pork prices in South-East Asia.
China: Pork Imports Set to Rise Amid Questions Over Hog Herd Size
Pork is by far China's favourite meat and rising prices have fueled inflation in the world's second-largest economy at a time of slowing growth. The country produces about half of the world's production and fluctuations influence pork and meat prices globally. Chinese pork prices rose 51.8% year-on-year in October, the National Bureau of Statistics said, even as third-quarter production rose 0.7% year-on-year. Pork prices will remain high in 2023 due to lower supply, according to 10 industry analysts, farmers and feed and genetics suppliers, although they warned that demand could be affected by China's COVID measures. JCI-HOG-LUOHE live hog prices rose by about 78% from June to 28.50 yuan ($3.98) per kg on Oct. 19, the highest since March 2021, according to data from Shanghai JC Intelligence Co Ltd. above historical averages. The government has blamed higher prices on farmers who stop hogs from being slaughtered to fatten them up, but analysts and experts say there has been a substantial reduction in supply since last winter. However, the Ministry of Agriculture and Rural Affairs has repeatedly said that the reproduction capacity is sufficient. "The elimination of sow production capacity may be larger than the current market imagined," Guan Yilin, an analyst at Cofco Futures, said in a note last month. The drop in pork demand and high feed costs from June 2021 to July this year caused farmers to incur losses of up to 600 yuan per pig. Farmers have sold herds, slaughtered more sows than usual, or cut production by not mating females to cut their losses.
Since the beginning of this year, Xuchang City has focused on the goal of improving the quality and efficiency of animal husbandry, coordinating the prevention and control of epidemics and the supply of important agricultural products, doing everything possible to stabilise animal husbandry production, strengthening incentives, and paying close attention to work implementation. Animal husbandry production has maintained a good and stable development trend in the first three quarters. The control of live pig production capacity has stabilised. In the first three quarters, the city’s live pig stock was 1.9112 million, an increase of 0.01% over the same period last year, and 2.0983 million live pigs were slaughtered, an increase of 0.36% compared with the same period last year; the number of fertile sows is equivalent to 96% of the normal stock, in the green control area.
China: Jiaozuo City, Henan Province Launched the Municipal Reserve Pork Distribution Work
On November 9, it was learned that in order to enrich the market supply in Jiaozuo City and meet the consumption needs of the masses, the municipal government decided to launch the release of pork reserves at the municipal level in November. The city-level reserve pork released this time is cold fresh pork (boneless front leg meat, boneless hind leg meat, pork belly, pork ribs). In principle, it will be released at a price 20% lower than the market price, and the specific price will be published at the delivery point. Quasi Jiaozuo City has set up 6 reserve meat distribution points in the central urban area, namely the Central Store Supermarket of Jiaozuo Department Store Co., Ltd. Xindong Supermarket (No. 59 Taihang Road), Xinhua Supermarket (No. 283 Xinhua Middle Street), Jiayuan Supermarket (No. 1369 Hanyu Road), Jinjiang Supermarket (No. 1370 Xin’an Road). At that time, each delivery point will set up a special area for government delivery, and Hanging banners, setting up signs and other obvious reminder signs, so that citizens can choose nearby.
In order to do a good job in the prevention and control of major animal diseases in the city and comprehensively evaluate the effects of autumn immunisation in all counties and districts, starting from October 31, the Changchun Epidemic Control Center will carry out immunisation effect evaluation and centralised monitoring in the second half of the city, Changchun. The epidemic control centre organised professional technical personnel to carry out the first batch of monitoring sample collection work in Gongzhuling, Shuangyang, Jiutai, Dehui and Yushu counties (cities) districts.
According to the monitoring of the National Development and Reform Commission, during the week from November 7th to 11th, the weekly average price increase of lean meat retail prices in 36 large and medium-sized cities narrowed from more than 40% to between 30% and 40%. The government’s pork reserve adjustment mechanism has done a good job in the work plan for ensuring supply and stabilising prices in the pork market. The first-level early warning range for excessive rises has fallen back to the second-level early warning range.
China: Sichuan Province Promotes Improvement Through the Supervision for Animal Quarantine Work
Animal quarantine is a comprehensive measure to reduce the risk of animal disease transmission, which is related to the success or failure of animal epidemic prevention. In order to thoroughly implement the "Animal Epidemic Prevention Law of the People's Republic of China", continue to strengthen the city's animal quarantine capacity building, effectively promote aquaculture production and ensure public health safety.
In the past, farmers engaged in breeding because they were really afraid that their livestock would get sick. If the pigs, cattle and sheep died, they were all borne by the farmers themselves. Now that the government's policies have improved since the introduction of a series of insurance policies to benefit the people in the breeding industry and also subsidises them. Now, a pig only needs 15 yuan premium, a cow only needs 54 yuan premium, and a sheep only needs 12 yuan premium to buy insurance, which greatly relieves the burden on our farmers from the risk of farming. Recently, the Nandan Branch of China Life Property Insurance went to Zhongbao Miao Township to carry out the insurance of livestock breeding insurance. As of the end of October 2022, Zhongbao Miao Township has insured 722 beef cattle, 320 mutton sheep, and 156 live pigs.
China: Investigation of the Development of the Black Pig Industry
On November 13, He Qiongmei, director of the Provincial Agricultural Office, director of the Provincial Department of Agriculture and Rural Affairs, and director of the Provincial Rural Revitalization Bureau, led a team to Tunchang County and Ding'an County to conduct research on the development of Hainan's black pig industry. Li, a member of the Party Group of the Provincial Department of Agriculture and others participated in the local investigation activities. In Tunchang County, He Qiongmei and her party Visited Hainan Hongshun Forestry Development Co. Ltd. (Tunchang Bailing Black Pig Breeding Professional Cooperative) and Hainan Longjian Animal Husbandry Development Co. Ltd, National (Tunchang Pig) Breed Protection Farm to learn more about the development of ecological cycle agriculture combining planting and breeding model, conservation of genetic resources of Tunchang pigs, breeding of new black pig breeds, etc. In Ding'an County, He Qiongmei and her team visited Hainan Qingping Agricultural Products Development Co. for the introduction of enterprise development. The research team conducted in-depth exchanges and discussions with the black pig scientific research team and enterprises of the Provincial Academy of Agricultural Sciences on the protection of black pig provenance, new breed breeding, project planning, and industrial development bottlenecks.
On the morning of November 16, the National Development and Reform Commission held a press conference for November. The spokesperson of the National Development and Reform Commission, Meng Wei, attended the press conference. Affected by factors such as excessive pressure on stalls and reluctance to sell, secondary fattening, and increased market consumption during holidays, there was a large increase in the first and middle ten days of October. In order to effectively ensure the supply and price stability of the live pig market, the National Development and Reform Commission and relevant departments quickly adopted a series of Control measures. The first is to increase the intensity of investment and storage. A total of 7 batches of central pork reserves have been released, and local governments have been urged to increase their efforts to release reserves simultaneously. Among them, the state and local governments have put in a total of about 200,000 tons of pork reserves in September, and the amount of pork released in a single month has reached the highest level in history, and the stocking price is significantly lower than the market price, which effectively guarantees the market supply. The second is to guide farmers to sell normally. Information has been released many times to guide farmers to take advantage of the trend to sell fattening pigs. Avoid the risk of price fluctuations. The third is to strengthen market supervision. Guide large-scale breeding enterprises to take the lead in ensuring supply and stable prices, and maintain a normal pace of slaughter. Interviews with some self-media that deliberately exaggerate the atmosphere of price increases to maintain normal market order. At present, relevant control measures have been obtained. With positive results, the price of live pigs has dropped significantly recently.
China: Boost to Hog Prices Due to Insufficient Supplies of Soyabean
While US commodity delays are likely to weigh on Chicago's benchmark soybean futures, tightening soybean meal supplies will boost China's hog prices. Pork prices in Guangdong, one of China's biggest pork-consuming regions, hit a one-and-a-half year high in recent times and have risen nearly 60 percent since March 2022. A trader in Singapore said: “Swine farmers are looking for alternative sources of protein as they have reduced the amount of soybean meal in their feed. This will support pork prices." China's consumer prices rose to a 29-month high in September, mainly driven by pork prices. Rising pig prices have also boosted demand for raising and lifting pigs, leading to increased demand for animal feed.
China: The Government Has Admitted That the Pork Market Is Not Stabilised
Currently, the average domestic piglet price in China is CNY 46.39/kg (PLN 29.68), down 0.8% from the previous week and up 79.5% YoY. In turn, the average domestic price of live pigs was CNY 26.24/kg (PLN 16.79), which means a decrease of 2.3% as compared to the previous week and an increase of 53.5% YoY. In the case of pork, the average price was CNY 41.16/kg (PLN 26.34), down 1.1% from the previous week and up 51.4% YoY.
In order to implement the requirements of the "Notice of the General Office of the Ministry of Agriculture and Rural Affairs on Strengthening the Prevention and Control of Pig Diseases in Autumn and Winter" (Nong Ban Mu [2022] No. 28), provide technical guidance for the prevention and control of pig diseases in autumn and winter, and improve epidemic prevention personnel and business owners Prevention and control capabilities, the China Animal Disease Prevention and Control Center held an online training course on the prevention and control of pig diseases in autumn and winter on November 10, 2022.
Thailand: Over 400 Tons of Illegal Pork Seized in Samut Sakhon Cold Room
On November 15, 2022, Mr. Somchuan Rattanamangklanon, Director General of the Department of Livestock Development, instructed Mr. Chaiwat Yothakhon, Deputy Director General of the Department of Livestock Development, to be the team leader in the inspection of a large cold storage of a company in the area of the Mueang District Samut Sakhon Province which operates in the manner of depositing, producing and distributing livestock products. By checking, the unauthorised imported pork carcasses were found, such as kaki pork legs, intestines, tongue, nose and tail, totaling 439,599 kilograms. Therefore, all intermediaries have been requested to take further action according to the relevant laws.
China: World’s Largest Vertical 26-Storey Pig Farm Opens
In the Chinese city of Ezhou, a 26-story pig farm was launched in early October. The first inhabitants, 3700 breeding pigs have already got acquainted with the new habitat. An interesting fact is that the building is equipped with a real-time ventilation, temperature and humidity monitoring system and six giant elevators capable of transporting 240 pigs at the same time. In addition, the entire process is controlled remotely from the control room. Along with this, further plans are to introduce “circular production”, including high-temperature anaerobic fermentation (independent of oxygen), which will produce up to 120,000 cubic metres of biogas per day from manure. Thus, after desulfurization, this biogas can be used to produce electricity. In turn, it will help “keep pigs warm, provide hot water for washing animals to keep them healthy, and at the same time reduce harmful emissions.
China: Pig Farming Is Responsible for 12% Of All Ammonia Emissions
Pigs are often compared to Olympians since they have to perform excellently during their 5-6 months in the barn. For this, they need fresh air. Research has shown that pig pens filled with pungent ammonia do not provide the necessary accommodation for superior performance. The intensification of pig farming has led to high concentrations of ammonia emissions from commercial pig farms. Pigs consume protein and other forms of nitrogen in their feed to produce meat. However, the conversion of feed into meat is inefficient. Pigs excrete about 50-80% of the nitrogen in the feed with faeces and urine. During the biological and chemical breakdown of manure protein, uric acid and urea, ammonia is produced. This means that pig farms, manure storage and land application of manure are the main sources of emissions. Among the livestock sectors, pig farming contributes about 12% of all ammonia emissions to the atmosphere. Manure moisture content, temperature, nitrogen content, aeration conditions, manure pH, and chemical and microbiological activities affect ammonia formation and release.
Vietnam: Live Hog Price as of November 14
Live hog prices on 14/11 in the North market had no new changes compared to the previous day. Accordingly, traders in Thai Binh province buy live pigs with the highest price in the region at 58,000 VND/kg followed by Hanoi with a stable price of 57,000 VND/kg. In Hung Yen, Thai Nguyen, Phu Tho, Vinh Phuc and Tuyen Quang live hogs are traded at the same level of 56,000 VND/kg. The Central and Central Highlands maintained the trading level. Specifically, the lowest price in the region is 53,000 VND/kg, witnessed in Lam Dong province. The price of 54,000 VND/kg is still recorded in the three provinces of Ninh Thuan, Dak Lak and Binh Dinh. For Thua Thien Hue province, the prices were anchored at 58,000 VND/kg. The remaining provinces maintained stable purchasing in the range of 55,000 - 56,000 VND/kg. In the South, the prices were flat as compared to the previous day in which, Vung Tau continued to anchor at 57,000 VND/kg, the highest threshold in the region. Meanwhile, live pigs in Kien Giang province were still traded at the lowest price of 51,000 VND/kg. The remaining provinces remained stable in the range of 52,000 - 55,000 VND/kg.
Vietnam: Status of Livestock Production During the First 9 Months of 2022
At the end of October 2022, the total number of pigs in Vietnam is estimated to have increased by 13.6% compared to the same period last year. Pig production for slaughter in the first three quarters of the year was estimated at 3,232.7 thousand tons, 5.8% higher than in the same period of the previous year. Beef and poultry production in the first 9 months of the year reached 348.0 thousand tons and 1,467.1 thousand tons, 4.2% and 4.8% above, respectively, than in the same period of 2021.
Vietnam: Live Hog Price on 11/20/2022
Live hog price on 20/11 in the North market has no new changes compared to the previous day. Live pig market in the North this week dropped sharply from 2,000 to 6,000 VND/kg. Accordingly, many localities such as Bac Giang, Hung Yen, Phu Tho, Thai Nguyen, Vinh Phuc and Tuyen Quang have reduced by 2,000 - 3,000 VND/kg, down to 53,000 VND/kg. The remaining provinces and cities fell sharply from 3,000 to 6,000 VND/kg, and the general purchasing level was 52,000 VND/kg. In the Central and Central Highlands the prices of live hogs are flat compared to the previous day. This week, the live pig market here is also decreasing from 1,000 to 4,000 VND/kg. Specifically, traders in Dak Lak, Ninh Thuan, Quang Tri and Quang Nam all reduced by 1,000 VND/kg, and purchased for 53,000 - 54,000 VND/kg. After dropping 2,000 VND/kg, live pigs in Quang Binh and Khanh Hoa are being traded at 54,000 VND/kg. The provinces of Thanh Hoa, Nghe An, Ha Tinh and Quang Ngai all reduced by 3,000 VND/kg to 52,000 VND/kg. The reduction of 4,000 VND/kg was demonstrated in Binh Thuan and Thua Thien Hue, anchored at 51,000 and 54,000 VND/kg respectively. In the South, live hog prices remained unchanged compared to the previous day. The southern live hog market is also decreasing this week, down to 4,000 VND/kg in some places. Binh Phuoc, Binh Duong, Dong Thap, Dong Nai, Vinh long, Tien Giang and Bac Lieu all decreased slightly, down to 53,000 VND/kg. And this is also the price recorded in Tay Ninh and An Giang after a decrease of 2,000 - 3,000 VND/kg. Live pigs in Long An and Vung Tau were traded at 52,000 VND/kg and 53,000 VND/kg respectively, down 4,000 VND/kg.
Argentina: The Central Region of the Country to the Conquest of Vietnam
Within the framework of the Commercial and Institutional Mission of the Central Region in Vietnam, progress was made in the negotiation for the export of pork and citrus to that country. Officials from Santa Fe, Córdoba and Entre Ríos participated in the meeting with Vietnamese authorities, who confirmed progress in the negotiations taking into account that Vietnam committed to opening markets for next year thinking about the importation of pork and sweet citrus.
Argentina: Pigs Also Fatten the 2022 Meat Supply
Pig slaughter increased by 3.1% YoY between January and October, according to data from the Institute for Studies on Argentine and Latin American Reality (IERAL), of the Mediterranean Foundation. Based on official data, they calculated that the industry processed 6.4 million heads, which in relation to the previous year represented an increase of 200,000 copies. With this pace of work, the industry exhibited an annual growth of 2.9% in the last four years. The total supply of meat, in this way, continues to advance, since bovine slaughter also increased in these first 10 months. When analysing the origin of the shipments, it is distributed among the provinces of Córdoba , Buenos Aires , Santa Fe , Entre Ríos and San Luis. Together, they accumulated 88.5% of slaughter during 2022.
Ukraine: A National Study of the Risks of the Spread of Swine Diseases During Wartime
With the beginning of the war, the issue of disease control and the spread of infections in the pig sector became critical. Therefore, the Department of Agriculture of Foreign Countries (FAS) of the US Department of Agriculture (USDA) and the Association "Swine Farmers of Ukraine" (ASU) are implementing the project "Ensuring animal health in Ukraine". The first and largest main direction of the project is research on the identification of the risks of the spread of diseases in the pork production chain. As part of cooperation with the State Production and Consumer Service, a survey is planned among 550 market players (industrial farms, households, hunting grounds, territorial bodies of the competent authority, private veterinarians and collectors) in order to assess the risks of the spread of swine diseases, including African swine fever (ASF), compliance with biosecurity protocols , as well as the practice of using antimicrobial drugs in wartime conditions.
Ukraine: In 10 Months, $93 Million Was Spent on Pork Imports
In 10 months of 2022, Ukraine imported 45.1 thousand tons of pork, which is 41.4% more than in the same period last year. This is evidenced by the data of the State Customs Service. In monetary terms, imports for January-October 2022 increased by 58% compared to the same period in 2021, up to $93 million. In October volumes increased 1.5 times compared to September to 4.38 thousand tons for $9.7 million. "The activation of importers has become a typical situation over the past few years and played the role of an additional price regulator during the period of seasonal weakening of trade activity." noted in the "Swine Farmers of Ukraine" association. The average price of imported pork in October was $2.2/kg, which is 6.2% more expensive than a month earlier. That is, high domestic prices for pork at the beginning of October made imports economically justified even in the absence of customs/tariff preferences. However, with the decrease in prices for domestic pork, the flow of imported products is decreasing, the profile association added. During 10 months of this year, pork was imported mainly from Denmark (35.2%), the Netherlands (24.5%) and Poland (21.9%).
Ukraine: Due to the Blackout, Pork Processors Are Forced to Reduce Stocks
Power outages are the main barrier to the work of pork market operators, pork producers and processors, unanimously stated. Thus, emergency and scheduled power outages directly affect both the price situation on the pork market and the very format of work of its operators. For a month, processors have been faced with refusals of pre-ordered chilled pork, postponement of supply and forced revision of schedules for production and/or shipment of finished products. In this regard, in mid-October, many operators had significant transitional balances of products and their returns, so in response to this, processors reduced the volume of procurement and the workload of slaughterhouses by at least 20-30%. Corresponding changes in demand had a significant impact on the planned sale of commercial batches of pork producers, which increased pressure on prices against the backdrop of a seasonally more active increase in animal live weight. Since the second decade of October, power outages have reinforced the seasonal decline in prices for the purchase of pigs in slaughter conditions: if during the second week of October the average price of live pork was UAH 73.9/kg, then in four weeks the indicator dropped to UAH 61.7/kg (-16 .5%).
India: Government of Kerala Plans to Ban Pig Transport to Contain Threat of African Swine Fever
With African swine fever (ASF) spreading rapidly, the government is considering a complete ban on pork transport in the Indian state. According to the livestock department, the disease has been confirmed in six districts. More than 2,000 hogs have been slaughtered through Saturday and the number is expected to increase. As the disease is highly contagious, causing 100% mortality, the department has decided to impose strict restrictions in infected districts. The disease is suspected to be spreading through feed. Although farmers have been instructed to feed cooked meat to pigs, most of them are feeding raw meat to pigs. Such practices increase the possibility of spreading the disease.
Philippine: Pork Imports Could Grow by 20%
Pork imports from the Philippines could increase by almost 20% this year, according to the local newspaper Business Mirror on its website, echoing the latest report from the Food and Agriculture Organization of the United Nations (FAO). Among the causes pointed out is the fact that animal diseases, such as African swine fever, continue to threaten the national pig herd. According to the aforementioned media, the country's pork imports will reach 394,000 metric tons this year, 18% more than the 332,000 estimated for 2021. The Philippines needs to buy pork from abroad as FAO projections indicated that domestic production for this year will not be enough to meet local pork needs. In addition, according to the FAO, pork production could drop by 4 percent to 1,139 million metric tons this year and will not meet the forecast national pork needs of 1,531 MMT.