August 4, 2021

 

Henan, China floods cause US$348 million worth of damages to poultry, livestock industries

 

 

Poultry and livestock industries in Henan, China, suffered economic losses amounting to ¥2.25 billion (US$348 million) after the province was recently hit by catastrophic floods.

 

The disaster led to the death of 248,000 pigs and 6.4 million chickens.

 

The floods, which have been described as the worst in decades after killing at least 99 people, saw some 15,000 farms affected, while another 45,000 sheep and other large livestock also died, China's Ministry of Agriculture and Rural Affairs said last month.

 

"From a national perspective, the animal husbandry production order is generally normal, and the impact of floods on the country's livestock production is limited," said Yang Zhenhai, director of the Bureau of Animal Husbandry and Veterinary Services.

 

"For example, 248,000 pigs died, which is a small percentage compared with the 439 million pigs in the country at the end of June."

 

The floods have led to a slight rise in the price of poultry, eggs, beef and mutton, according to the agriculture and rural affairs ministry, while the price of pork – the staple meat in China – has remained stable in recent weeks.

 

Late last month, over one millions hectares (2.5 million acres) of crop fields were reported to be affected by the floods, which raised concerns over food inflation and security.

 

Henan, the biggest pig farming province in the country, accounts for around 10% of the national pork supply.

 

Pork prices have declined sharply since the beginning of the year, as nationwide stocks have rebound from the African swine fever (ASF) crisis.

 

"The impact of heavy precipitation may not be significant [on the price of pork]," said a report from Industrial Securities.

 

"Based on historical experience, we observe that in 2016 and 2017, when the floods were more severe, neither heavy rainfall nor floods pushed up pork prices." said

Zhong Zhengsheng, chief economist at Ping An Securities, who pointed out fundamental demand and supply movements as the bigger factors affecting the price of pork.

 

"The current downward pressure on pork prices has not yet been fully released," Zhong said.

 

China's Ministry of Agriculture and Rural Affairs also said the floods had increased the risks of epidemics as rotting carcasses of dead livestock and poultry floating in the undrained water could produce and spread pathogens.

 

It also raised concerns about a recurrence of ASF, which decimated China's hog herd in 2018 and 2019.

 

In late-July, Chinese authorities had treated 3.562 million dead pigs, cattle, sheep and poultry, but the treatment was still ongoing, officials said.

- South China Morning Post