MLBA15: June / July 2010
The metamorphosis of China's hog industry
Accounting for nearly half of the global output, China has been the world's largest live hog producer for years. The immense and almost revolutionary changes that have taken place in China's hog-rearing scene over the last few years are bringing major shifts to China's live hog industry chain.
An agricultural society by tradition, China's hog industry inherited its large number of backyard farms, which dominated the industry for several years, accounting for about 70% of the country's total output before 2007.
Inherently, the industry is subjected to a three-year cycle, which begins with backyard farmers swarming into the industry when prices were good, resulting in oversupply and sliding prices, prompting the mass-retreat of farmers from the industry and finally leading to a drastic fall in hog supply and surging prices - which, again, entice hog farmers to re-enter the market and another cycle begins anew.
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