Page 148 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
or set aside for restoration. There are 1.4 billion tons by mid-year. China’s purchases of South
people to feed, but the giant farms that fuel Western American beef are rising too. Brazil’s exports to the
diets are nearly impossible to replicate here. That is country are seen increasing to 70,000 tons a month
partly because much of China’s terrain is mountains if China allows supplies from 25 meat plants now
or desert but also because the farmland is split under review. Brazil exported an average 24,000
among about 200 million farms. China’s agricultural tons a month to China in the first half of 2019 (Poole).
landscape looks less like a blanket of green than a
patchwork quilt (McMillan and Steinmetz). Chinese shoppers who hoped to use poultry
meat as an affordable alternative to pork were
Livestock disappointed since chicken remains in short supply.
China has faced a chicken shortage since 2016 and
China’s pork prices continued to rise in 2019 the scarcity could get worse in 2020. China relies on
and the tightness of pork supply is predicted to be imported breeding stock for production of white-
intensified into 2020. Data from the ministry showed feathered broiler chickens which are bred and
that the pig population dropped by 18 percent in raised specifically for meat production, accounting
March 2019, year-on-year, while the number of for half of the country’s chicken supply. China has so
female pigs for reproductive use also declined by far been unsuccessful in developing its own white-
21 percent. The average wholesale price of pork feather pedigree lines. Poultry imports from the US
climbed 29.8 percent year-on-year to 21.59 yuan and France have been banned in China since 2016
(US$3) per kg in June of that year mainly because in the wake of a bird flu outbreak in those countries
of the influence of the African swine fever. Also, in December 2014. The ban has produced a sharp
fewer piglets were raised due to the influence of the drop in the supply of white-feather “grandparent”
outbreak disease. Both factors resulted in the decline stock. Total output of live chickens on the mainland
of pork production in 2019 and boosted pork prices has dropped from about 6 billion birds in 2016 to
to historical highs, surpassing that in 2016 when pig 4.16 billion in 2018 (He, China Chicken).
production was reduced because of the cold weather.
As hog production has been continuously declining High-tech is one response to the rising costs
since the fourth quarter of 2018, the pressure on of raising fowl. This offers an opportunity for
pork supply has become heavier, leading to rises in investment. China is home to several artificial
the prices of beef, mutton, chicken and eggs. Pork intelligence (AI) superpowers, and Chinese internet
is the staple meat in China. The country reported its giants Baidu, Alibaba and Tencent (BAT) are
first case of African swine fever in August 2018 in the investing heavily in animal and feed production.
northeastern province of Liaoning. Later outbreaks Chinese startup AgNet is focused on data-based
were reported in several other provincial regions. poultry farming. Sensors within the house measure
Since the first outbreak, the Ministry of Agriculture temperature, ammonia and carbon dioxide in real
and Rural Affairs (MARA) has taken strong measures time and allow a cloud-based management system
to fight the disease and stabilize hog production. to feed back the information. In the future, data
While pork prices stand to keep rising into 2020, streams will include acoustic warnings, and camera
increased livestock and poultry production has vision-based systems like those being used today
optimized the consumption structure. As China for cows and pigs. Microbiome chips inform Cargill
expanded its imports of pork products, meat supply what bacterial shifts are taking place on the farm,
in China is expected be stable (Xinhua, Pork Prices allowing for tailored nutrition and feed additives
Continue). to the changes the farm wishes to see. Clearly
the industry has several significant incentives to
Meanwhile, beef imports by China, the world’s top aggressively implement innovations. Improving
meat consumer, jumped to an all-time high in 2019 feed efficiencies and gain through real-time data
as the spread of African swine fever throughout analytics reduces the cost of the most critical input:
the country boosts demand for alternative sources the feed (Connolly).
of animal protein. Inbound shipments surged 61
percent on the year. Australia is the big winner.
Shipments to China jumped 55 percent to 206,306
148
or set aside for restoration. There are 1.4 billion tons by mid-year. China’s purchases of South
people to feed, but the giant farms that fuel Western American beef are rising too. Brazil’s exports to the
diets are nearly impossible to replicate here. That is country are seen increasing to 70,000 tons a month
partly because much of China’s terrain is mountains if China allows supplies from 25 meat plants now
or desert but also because the farmland is split under review. Brazil exported an average 24,000
among about 200 million farms. China’s agricultural tons a month to China in the first half of 2019 (Poole).
landscape looks less like a blanket of green than a
patchwork quilt (McMillan and Steinmetz). Chinese shoppers who hoped to use poultry
meat as an affordable alternative to pork were
Livestock disappointed since chicken remains in short supply.
China has faced a chicken shortage since 2016 and
China’s pork prices continued to rise in 2019 the scarcity could get worse in 2020. China relies on
and the tightness of pork supply is predicted to be imported breeding stock for production of white-
intensified into 2020. Data from the ministry showed feathered broiler chickens which are bred and
that the pig population dropped by 18 percent in raised specifically for meat production, accounting
March 2019, year-on-year, while the number of for half of the country’s chicken supply. China has so
female pigs for reproductive use also declined by far been unsuccessful in developing its own white-
21 percent. The average wholesale price of pork feather pedigree lines. Poultry imports from the US
climbed 29.8 percent year-on-year to 21.59 yuan and France have been banned in China since 2016
(US$3) per kg in June of that year mainly because in the wake of a bird flu outbreak in those countries
of the influence of the African swine fever. Also, in December 2014. The ban has produced a sharp
fewer piglets were raised due to the influence of the drop in the supply of white-feather “grandparent”
outbreak disease. Both factors resulted in the decline stock. Total output of live chickens on the mainland
of pork production in 2019 and boosted pork prices has dropped from about 6 billion birds in 2016 to
to historical highs, surpassing that in 2016 when pig 4.16 billion in 2018 (He, China Chicken).
production was reduced because of the cold weather.
As hog production has been continuously declining High-tech is one response to the rising costs
since the fourth quarter of 2018, the pressure on of raising fowl. This offers an opportunity for
pork supply has become heavier, leading to rises in investment. China is home to several artificial
the prices of beef, mutton, chicken and eggs. Pork intelligence (AI) superpowers, and Chinese internet
is the staple meat in China. The country reported its giants Baidu, Alibaba and Tencent (BAT) are
first case of African swine fever in August 2018 in the investing heavily in animal and feed production.
northeastern province of Liaoning. Later outbreaks Chinese startup AgNet is focused on data-based
were reported in several other provincial regions. poultry farming. Sensors within the house measure
Since the first outbreak, the Ministry of Agriculture temperature, ammonia and carbon dioxide in real
and Rural Affairs (MARA) has taken strong measures time and allow a cloud-based management system
to fight the disease and stabilize hog production. to feed back the information. In the future, data
While pork prices stand to keep rising into 2020, streams will include acoustic warnings, and camera
increased livestock and poultry production has vision-based systems like those being used today
optimized the consumption structure. As China for cows and pigs. Microbiome chips inform Cargill
expanded its imports of pork products, meat supply what bacterial shifts are taking place on the farm,
in China is expected be stable (Xinhua, Pork Prices allowing for tailored nutrition and feed additives
Continue). to the changes the farm wishes to see. Clearly
the industry has several significant incentives to
Meanwhile, beef imports by China, the world’s top aggressively implement innovations. Improving
meat consumer, jumped to an all-time high in 2019 feed efficiencies and gain through real-time data
as the spread of African swine fever throughout analytics reduces the cost of the most critical input:
the country boosts demand for alternative sources the feed (Connolly).
of animal protein. Inbound shipments surged 61
percent on the year. Australia is the big winner.
Shipments to China jumped 55 percent to 206,306
148
