China: pig production reorganization continues
12.09.2017
In a report from Hu song, CSEA, "by June 2017, China has closed or relocated 213,000 pig farms in 14 provinces, which failed to meet the new environmental policy, limiting pig production in certain areas, estimating 3 million sows culled, as reported by the Ministry of Environmental Protection. In the prohibited region for pig production, all the farm must be removed by December, 2017. The new environmental regulation has raised cost of new modern farms 20-30% of total investment.
China MOA reports 35.57 million sows in July 2017. July 2016 sow inventory was 37.52 million. A decrease year over year of 2 million sows. Not exactly a sign of net expansion.
The hog price continues strong in China at 14.36 RMP/kg/Live weight or 99c/lb US live weight. With no sign of net sow herd expansion, we expect China hog prices to remain excellent for the next year.
thepigsite.com
