China's Pig Industry Continues to Break Records

China is the pork powerhouse of the world with more than 51 per cent of the world's pigs being raised in the country, according to the senior consultant for Genesus there.

The latest figures for August 2011 reveal a total of 47.86 million breeding stock and an on-farm pig inventory of 461.42 million. These represent increases of 1.1 and 1.4 per cent, respectively, from the previous month. This trend continues a gradual increase in sow inventory since March.

Apparently defying the laws of supply and demand, live hog prices also continue to rise: last weekend, the average price reached RMB19.57 per kg (US$3.06), which is not far behind the peak prices reached in late June.

Profit margins have continued to strengthen too, according to Genesus. During the spring 2010, most large-scale farms reported losses but with increasing market prices, profit margins have gained significantly from RMB100 per market pig for July 2010 ($14.90) to a peak of RMB770 ($119.10) in June 2011. With feed costs continuing to rise, however, profit margin for August is estimated to be back to RMB721 per market pig ($112.83).

The national piglet price rose to RMB45.82 per kg ($7.17) – an increase of almost 130 per cent from the beginning of the year.

For the coming weeks, it is expected that the market price will be steady or slightly increase for the mid-autumn Festival and the Golden Week holiday (1 to 8 October).

Of course, while these conditions are good for pig producers, Chinese consumers are having to endure steep increases in pork prices: the country's Ministry of Commerce reported that the price of pork rose 46 per cent in August, following an increase of nearly 57 per cent in July – and this despite analysts predicting a record year for pig meat imports to China.

Moving the focus to New Zealand, a new code has been released on the welfare of animals during transport. Minimum standards of welfare and recommended best practice for everyone involved in transporting animals in the country were outlined in a new code of welfare issued last week by the Agriculture Minister.