Canadian genetics company puts breeding stock on hold for China
The ongoing trade war between the US and China and the recent diplomatic issue started between Canada and the same Asian country are hurting the North American swine industry due to the tariffs imposed for American pork and restriction placed on Canadian pig meat. Still, producers are hoping to get full access to the Chinese market as the ASF virus is taking its toll on the world's largest pig herd.
Speaking at the National Pork Industry Conference (NPIC) in Wisconsin Dells, Wisconsin, USA, Jim Long, President & CEO of Genesus, declared that his company has put on hold for China a large breeding stock. "Our premise is that right now the USA-Canada market depends on when and if China begins large shipments of pork to China. Genesus in the last three years has exported more than 35% of all breeding stock shipped to China from anywhere in the world.
It’s our vested interest to pay attention to when the massive airlift will begin to restock Chinas breeding herd. Currently, we have several 747 shipments of breeding stock on hold until China's customs feel comfortable to import," he said.
The last shipment of Genesus' breeding stock to China was made in October last year. Since then, a massive contraction has occurred in the Chinese swine inventory and the situation may be worst than what official channels presented so far.
Comments coming from Chinese pig producers are painting a desolated image for the industry.
"Our budget is down 4 million hogs for this year due to ASF” – very big China Producer-Owner;
“We had 70,000 sows, now 30,000. We are in the feed business. We just had a conference call with many other Chinese feed companies. Feed production down 60%.” – Owner-Producer;
“With government inspecting and testing storage stocks for ASF beginning July 1, storage is being emptied.”- Producer-Packer; “We had 15,000 sows, now we have none!” - Producer;
“Had 60,000 sows in North-East now 6,000.” – Producer;
“There will be little increase in chicken production short term. There are no breeders. Breeders have not been expanded last 2 years.” – large chicken producer; “Province had 1.6 million sows, now there are 160,000.” – Vaccine Plasma Representative; “I expect market hogs will reach 30 rmb kg ($2.00 U.S. LB.) liveweight – Owner-Producer; are just a few impressions gathered by Genesus representatives in China.
For now, the spike in prices has colled as the last storage stocks have been emptied before the start of July and the increased imports from Europe and Brazil have covered the domestic demand. Nevertheless, the rumors that China intends to buy pork from Russia, another country hit by the ASF outbreaks, is showing a clear interest in finding new suppliers for the world's largest consumer of pork. That also keeps the uncertainty regarding future trade relations between the Asian country and North American suppliers.