China's pig inventory declines by 7.5 million head
Pig inventory in China is dropping fast as the producers are trying to limit their losses which are currently at about $30/head. The actual prices for Chinese pigs are considered to be at 4 years low.
The downturn has started about a year ago and, since then, local producers are liquidating their herds, as Xinhuanet agency reported. This month, China's Ministry of Agriculture and Rural Affairs reported pig inventory dropped by 1.9% in May against April and 2% against last year. Sow inventory dropped by 2.5% in May against April and 3.9% against last year.
According to a Genesus global report, more than 800,000 sows were slaughtered in May as part of the liquidation process. "It is estimated pig inventory is declined by 7.52 million and sow inventory dropped 838,100 in May. The losses of over $30 per head since the first of the year appears to be triggering large liquidation", said Jim Long, CEO and President of Genesus in the report.
Nevertheless, he also believes that pork exporters will benefit in the next months, as the liquidation process will slow down. "We expect China’s hog prices to rebound to $60-70 per head pulling in more imported pork", added Long.
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