March 10, 2008
 

Snowstorms to have limited impact on China's livestock production
 

China's worst snowstorm in 50 years, occurring in the latter half of January, had an adverse but limited impact on China's livestock production. , according to a US Department of Agriculture attache report posted on the Foreign Agricultural Services Web site.

The report noted that the snowstorm came at a time when both pork and beef were affected by high prices for both inputs and for meat products.

High commodity prices from grains and oilseeds and shortage of meat supplies will likely continue through 2008, the report said.

On February 19, the Ministry of Agriculture (MOA) reported that as of February 14, the snowstorms killed 4.09 million pigs, 393,000 cattle and 63.1 million birds. 

More than 2,000 breeding animal and poultry farms were impacted by the disaster.

Despite these large numbers, the storms only reduced the hog population by one percent and the cattle population by 0.3 percent, the report noted. 

Thus USDA concluded that the severe winter storms will only have a slight and a short-term influence on China's livestock production. The impacts of the snowstorm are more easily reversed than outbreaks of diseases which kill more animals over time and disrupt production and consumption in more complex ways, the report said.

To assist farmers, China passed a new law on corporate income tax that exempted companies that engage in raising animals and poultry from corporate income taxes.

The law also allowed both domestic and foreign companies to enjoy the same tax rate (25 percent).

Depending on how it is implemented, this measure may further help livestock and poultry sectors, the report added.