Recovery of production
In 18 provinces, Hebei, Shandong, Hunan and Sichuan among them, specific measures have been implemented for a stable recovery of production, whilst in the other 13 they will be implemented in the near future. We must highlight the building of 13 large farms in the province of Sichuan, and it is expected that the production capacity increases by 2 million heads.
In some provinces, the number of live pigs has stopped dropping. In August, the number of live pigs in 10 provinces remained stable or increased. On the other hand, according to the monitoring of more than 5,000 pig farms, the number of live pigs and sows dropped by 0,3% and 1,8% respectively in August, this entailing significantly lower figures. Another sign of the improvement in pig production is the production of piglet feed, that has recovered. According to the monitoring of the Chinese food production companies, the production of food in China was 1.46 million tonnes in August, an increase by 2.2% with respect to July. This is the first increase in five months, and this entails that the number of piglets is growing. Another factor is the increase in the volume of sales of gilts, that has grown significantly. According to the monitoring of 100 key gilt producing companies, the sales of gilts in August grew by more than 80% with respect to July.
The increase in the price of pigs and pork slows down
In the third week of September, the average price of live pigs in China reached RMB27.15/kg (see the evolution of prices in our section Pig prices): 1.8% more than in the previous week and 91.3% more than a year ago. In the last 4 weeks, the increase in the price of live pigs has slowed down, going from increases by 8.7% four weeks ago to 5%, 2.9% and 1.8%.
We must highlight the disparity in prices in the different provinces, with prices last week that ranged between RMB31.54/kg in the south and RMB24.64/kg in the northwest.
These improvements also have an influence on the price of pork, that reached RMB42.57/kg last week: 1.6% more than the previous week, although it is a smaller increase than that seen in the last 4 weeks (8.6%, 6.3%, 3.4% and 1.6%). Just as with the price of live pigs, the price of pork varies between regions, reaching RMB48.96/kg in the south of China or RMB39.15/kg in the northwest region in the last week.
Friday, September 27th, 2019/ 333’s editorial office from data by the Ministry of Agriculture of China.