China reports an increase in pig inventory
China's pig herd rebuilding is going forward, with 370 million head at the end of September, up 21% from a year ago but still 16% lower pre-ASF levels. However, the trend is to stay, as the Chinese pig producers are reporting profits of over $200 per head. The sow herd at the end of September is reported to be 38.22 million head, after month on month sow herd increase from the low 12 months ago. The current sow inventory is 14% lower than at the end of 2017, about 6 million sows down. "With greater hog supply China’s price has begun to decline from 37.02 RMB ($5.53)/kg at the first of September to 30.94 RMB ($4.60)/kg last week. We only wish to have prices like that in North America. As China production increases, we expect China will require less imported pork," commented Jim Long, CEO and President of Genesus Inc.
However, once the ban on pork imports from Germany was put into place in September, exporters from Brazil, the US, Canada and Spain have increased their presence in the Asian market.
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