December 27, 2019

China initiates US$7 billion plan to tie up large swine producers with smaller farms

The Agriculture Ministry said the 50 billion RMB (~US$7.14 billion; 1 RMB = US$0.14) state investment plan aims to boost swine production for the country's herd hit by African swine fever (ASF), reported Reuters.

The Ministry of Agriculture and Rural Affairs said on December 26, 2019, 15 leading swine farms signed 19 agreements with local governments from 16 cities to raise swine through a joint collaboration effort.

The cities involved in the agreement include Liangzhou of western Sichuan province and Enshi in central Hubei.

22 million swine are projected to be produced annually, involving 33,000 poor rural families. No timeline was provided for the project.

Han Changfu, Agriculture Minister said through the agreement, large swine farms will take a stake or lease small and medium swine farms. To fast track the agreement, the large producers will construct a number of standardised farms, slaughterhouses and refrigerating facilities.

While China is the world's largest swine producer and pork consumer, the country continues to rely on its small farms to meet domestic demand for pork. Close to 50% of the country's domestic pork supply is obtained from farms that produce less than 500 swine annually.

-      Reuters