Page 180 - 2022 White Paper on the Business Environment in China
P. 180
2 White Paper on the Business Environment in China
2.2 Animals and Related Products
Key Take-Aways market. Some supermarkets had limited the number
of items such as beef and pork. Furthermore, many
• China's meat production reached 76.39 restaurants also stopped serving certain products
million metric tons and egg production reached such as beef burgers (Ijaz et al.).
34.68 million metric tons in 2020, both ranking first
in the world. The COVID-19 pandemic also had a massive
influence on the agricultural food supply, largely
• More than 201,000 metric tons of paws impacting food demand as well as food insecurity.
were exported to China in 2020, generating revenue In China, compared to other agricultural sectors
of US$460 million. (e.g., vegetables, fruits, and crop production),
livestock farmers faced the challenges of feed
• China has managed to get a handle on the pig materials needed for pig farming. In addition,
pandemic, repopulating its pigs through improved livestock movement was tightly regulated during
biosafety measures and shifting production to large the pandemic, prohibiting livestock farmers
farms that can afford more biosecurity. from selling pigs on the market. In South Asian
and African countries, harvesting of wheat and
• China became the world’s largest imported pulses were hampered due to a lack of labor and
beef market in 2021. shortage of plantation seed. The seed sector is
highly globalized, and often transported by air,
Covid-19 Repercussions a mode of transport, which has been severely
disrupted as China is a major supplier. The Chinese
The Covid repercussions on global meat government successfully managed food supply
production was a bit confusing. The COVID-19 along with an unprecedented level of protection
pandemic impacted meat production, supply and control mechanisms throughout the country.
chain, and meat prices that caused a severe socio- Chinese e-commerce enterprises sold 88.2
economic crisis worldwide. Initially, meat and meat thousand tons of foods to online customers across
products' prices increased due to less production 19.8 million online purchases in 2020. However,
and increased demand because of panic buying. China emerged from lockdown, and this concern
Whereas, later on, both meat production and appears to have waned (Abid and Jie).
demand were significantly decreased due to
lockdown restrictions and lower purchasing power Background
of the consumers that then resulted in a decrease
in meat prices… which in turn resulted in another With an annual economic growth of around
decrease in meat production. This decrease in meat 6.1% and a population of over 1.4 billion, China is
production, processing and supply chain resulted still undergoing major changes in many industries,
in higher prices of meat and meat products once including its livestock sector. As increasingly more
again. Therefore, the meat purchasing ability of Chinese enter the new middle class, meat products
poor and middle-class families was reduced and are becoming a crucial component of the Chinese
that contributed to food insecurity. In China, meat diet and food sector. China has a long history of
production was reduced due to a meat facility livestock production and meat consumption,
workers' quarantine, resulting in a decreased supply however, meat has not always been accessible
chain and increased meat prices in the local Chinese and affordable for the common population. Once
180
2.2 Animals and Related Products
Key Take-Aways market. Some supermarkets had limited the number
of items such as beef and pork. Furthermore, many
• China's meat production reached 76.39 restaurants also stopped serving certain products
million metric tons and egg production reached such as beef burgers (Ijaz et al.).
34.68 million metric tons in 2020, both ranking first
in the world. The COVID-19 pandemic also had a massive
influence on the agricultural food supply, largely
• More than 201,000 metric tons of paws impacting food demand as well as food insecurity.
were exported to China in 2020, generating revenue In China, compared to other agricultural sectors
of US$460 million. (e.g., vegetables, fruits, and crop production),
livestock farmers faced the challenges of feed
• China has managed to get a handle on the pig materials needed for pig farming. In addition,
pandemic, repopulating its pigs through improved livestock movement was tightly regulated during
biosafety measures and shifting production to large the pandemic, prohibiting livestock farmers
farms that can afford more biosecurity. from selling pigs on the market. In South Asian
and African countries, harvesting of wheat and
• China became the world’s largest imported pulses were hampered due to a lack of labor and
beef market in 2021. shortage of plantation seed. The seed sector is
highly globalized, and often transported by air,
Covid-19 Repercussions a mode of transport, which has been severely
disrupted as China is a major supplier. The Chinese
The Covid repercussions on global meat government successfully managed food supply
production was a bit confusing. The COVID-19 along with an unprecedented level of protection
pandemic impacted meat production, supply and control mechanisms throughout the country.
chain, and meat prices that caused a severe socio- Chinese e-commerce enterprises sold 88.2
economic crisis worldwide. Initially, meat and meat thousand tons of foods to online customers across
products' prices increased due to less production 19.8 million online purchases in 2020. However,
and increased demand because of panic buying. China emerged from lockdown, and this concern
Whereas, later on, both meat production and appears to have waned (Abid and Jie).
demand were significantly decreased due to
lockdown restrictions and lower purchasing power Background
of the consumers that then resulted in a decrease
in meat prices… which in turn resulted in another With an annual economic growth of around
decrease in meat production. This decrease in meat 6.1% and a population of over 1.4 billion, China is
production, processing and supply chain resulted still undergoing major changes in many industries,
in higher prices of meat and meat products once including its livestock sector. As increasingly more
again. Therefore, the meat purchasing ability of Chinese enter the new middle class, meat products
poor and middle-class families was reduced and are becoming a crucial component of the Chinese
that contributed to food insecurity. In China, meat diet and food sector. China has a long history of
production was reduced due to a meat facility livestock production and meat consumption,
workers' quarantine, resulting in a decreased supply however, meat has not always been accessible
chain and increased meat prices in the local Chinese and affordable for the common population. Once
180
