November 7, 2011

China's hog supply decimated by rampant diseases

China's hog sector is currently facing an increased incidence of disease, with many farmers scaling back production and quickening the liquidation of hogs in the midst of disease fears and price volatility, Rabobank's industry update showed.

As hog immunity usually decreases in winter, Rabobank expects the impact to worsen in the coming months. Production recovery and reduced inflation will depend on whether the disease can be contained.

As a result, China may continue to import pork to fill the gap in the near term, the report said.