November 24, 2006
 

Profits in China's swine production to rise next year

China's swine production profit in 2007 would rise, according to a USDA's GAIN report on China's  Agricultural Situation released Thursday (Nov 24).  

The report was assembled from various articles culled from Chinese media.

The profit increase comes mainly due to the decrease of sow inventory in 2006 that would lead to a decrease in slaughter, the report said.

A moderate increase in feed prices will likely take effect, and swine to grain conversions may be slightly higher than the expected 1:5.5 ratio, according to the report.

Meanwhile, China's duck meat production, at 2.4 million tonnes, has been ranked first in the world, accounting for 66 percent of world production. China slaughters about 1.8 billion ducks a year. 
 
China dominates even more of the goosemeat market, at 700,000 tonnes a year, it accounts for 93 percent of total world production.

The report also added that the construction of China's largest egg layer feed plant  had been recently completed.  The Yukou Breeding Layer Company plant located in Pinggu District in Beijing can handle an annual production capacity of 180,000 tonnes.

The report also noted that China has completed its 11th Five-Year-Plan for dairy product production. By the end of 2010, China projects total dairy product production to reach 21.9  million tonnes with an annual increase of 15 percent.

From this total, solid products, accounting for approximately 10 percent of total dairy production, will reach 2.1 million tonnes with an annual increase of 7 percent, while fluid milk, accounting for the remaining 90 percent would reach 19.8 million tonnes with an annual increase of 16 percent.

China is also consolidating its farming materials distribution, according to the report. The Chinese government plans to foster larger distribution of farming materials in the next five years as farmers are expected to spend more on means of production. 
 

According to the latest Five-Year Plan, China would have 10 major distributors by 2010, each with a sales volume of more than RMB 10 billion yuan (US$ 1.25 billion).  The plan predicts sales of farming materials would reach RMB 1.1 trillion in 2010 with an annual growth rate of 10 percent. Meanwhile, per capita spending on production materials is expected to increase 10 percent annually over the next five years.