March 17, 2020

China calls for local companies to build swine farms overseas

Local authorities are urged to support qualified domestic companies to raise swine overseas for export back to China in a bid to supplement dwindling domestic pork supplies, reported Reuters.

The move was issued by China's state planner and the agriculture ministry as the country continues to steadily recover from an African swine fever (ASF) outbreak that has decimated close to half of its total swine herd.

Increasing pork prices in China have pushed the country's consumer inflation to record highs, with the recent COVID-19 outbreak denting measures to resume swine production with logistics disrupted.

According to the document by the National Development and Reform Commission and Ministry of Agriculture and Rural Affairs, the swine farms will be constructed in nations with existing stable trade relations with China and are certified ASF-free.

The document also gives opportunities for local swine farmers to construct swine pens on deserted land in addition to animal waste treatment and sterilisation facilities on some farmland. Local authorities are urged to obtain materials for building new and expanding current swine farms.

Lei Yi, a China Merchants Securities analyst said China wants pork production to resume to levels pre-ASF. Lei said while the new measures will boost overseas imports, it will take some time to execute as many local companies have not raised swine overseas before.

China had reported three new ASF cases last week.

-      Reuters