June 9, 2005

 

Challenges and opportunities in China's pork production

 

 

Although the no. 1 pork-producing and pork-consuming country in the world, China faces a number of challenges and opportunities in expanding its pork self-sufficiency, according to Shen Guang, secretary-general of the China Agricultural Organization.

 

Addressing the World Pork Congress in Washington DC, he noted that China produces 48 per cent of all market hogs in the world and 47.6 per cent of all pork, with the highest per capita pork consumption in the world-35.1 kg versus 15.4 kg for world average. Pig production in China is more than 1,000 years old and has played an important role in the country's development, he said.

 

Since China first established a market-oriented economy some 25 years ago, meat production has increased nearly 600 percent, while pork production has increased 400 per cent and represents 65.2 per cent of the total meat production.

 

This is attributed to a more intensive technological production and development in livestock genetics, Shen said. Nevertheless, he added, the dominant production role remains in small- and moderate-sized hands, with 100 million 'houses' across the country engaged in backyard production and growing fewer than 10 hogs a house.

 

Hog prices have escalated in the last 18 months in China owing to a variety of reasons. Higher corn and soybean meal prices, tighter environmental land control policies and production lagging behind demand were cited as the main factors contributing to this rare market phenomenon.

 

Challenges and opportunities both abound. For one, China needs a consistent grain supply for its population of 1.3 billion people, but already 30 percent of grain production is being diverted into feeding swine. This creates a problem for national policy, precisely because of China's population of 1.3 billion.

 

Other challenges in pork production include disease control, environmental protection, production standardization and quality control, given the dominance of backyard and small-scale production.

 

On the bright side though, strong pork demand and increasing expertise and size of integrators work to China's favour. Stricter food safety standards have increased consumers confidence, while also attracting foreign investment into the industry.

 

Rural cooperatives are also being established to help producers manage their production systems, control diseases better and improve efficiencies.

 

Shen is optimistic that such "industrialised direction" will become the model for future production.