When Zhang Faqing received a letter from the government last December ordering him to close his pig farm on the outskirts of Beijing with just two weeks’ notice, he thought it was a joke…Full Article: South China Morning Post Nov 2017

Key Points

  • In China, small pig farms (< 50 hogs) account for 90% of its pig farms but only ~33% of its supply.
  • By the end of 2017, Chinese pig farmers must comply with new environmental regulations regarding the location and distribution of livestock farms. In particular, livestock farms should not be located near water sources such as reservoirs and farmers must ensure proper manure disposal.
  • From June to November 2017, Chinese pig prices have increased 16% owing to concerns that there will tight supplies in February 2018 (i.e. Chinese New Year).

ChinaAg Comments

  • From January to June 2017, according to the Ministry of Environmental Protection, China closed approximately 213,000 livestock farm as part of its 2015 water pollution prevention plan.
  • From January to October 2016, Chinese pork imports totaled 1.39 million MTs, a ~133% year-on-year increase.
  • In late April 2016, China’s average pork price totaled CNY 26.24 (~USD 4.04) per kg. A stark increase from the CNY 17.88 recorded in April 2015.
  • In February 2016, China’s food prices (~1/3 of Consumer Price Index) increased 7.3% (year-on-year), while non-food prices increased 1%.
  • In November 2015, China enacted water pollution control initiatives across 10 provinces which reportedly impacted the country’s pork industry and helped cause pig farm closures (~20 million hogs dropped out of the market).
  • In April 2015, China’s State Council published its “Water Pollution Prevention and Control Action Plan”. The plan focused on decreasing water pollution in key river systems, improving the quality urban drinking water, reducing ground water usage, and repairing environmental damage along coastal areas. Key areas of focus included Beijing, Tianjin, Hebei Province, as well as the Yangtze River Delta and Pearl River Delta. These areas would have to meet the environmental requirements set forth by the plan earlier than other Chinese provinces and regions.

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