Page 186 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
metric tonnes of paws were exported to China in Pork
2020, generating revenue of US$460 million. If all
those paws had gone to rendering, they would Since African Swine Fever (ASF) first emerged
have generated less than one-tenth of that. The in China in 2018, the disease has devastated
popularity of paws has yielded another benefit the country’s hogs, wiping out some 50% of the
for US producers, as it has spurred demand for country’s pig population. China’s mass culling—
other parts of the chicken, primarily leg meat. Paw the country is the world’s largest producer and
exports to China started out slowly in 2020 due to consumer of pork—rocked the world’s US$300
the impact of the COVID-19 pandemic including billion pork market, costing the industry as much
shipping and port issues in China. But they increased as US$130 billion in total losses. But over the past
rapidly that spring, and the demand for US paws year, China has managed to get a handle on the pig
continued in 2021, with the US becoming the pandemic, repopulating its pigs through improved
dominant supplier with a 44.8% market share. US biosafety measures and shifting production to large
paws are particularly desirable in China because of farms that can afford more biosecurity. China’s hog
the size of US chickens. The volume of paw exports resurgence may be fragile—given the ever-present
to China has exceeded what was anticipated and threat of fresh ASF outbreaks—but the new supply
is more than triple from what it was in 2014, the of pigs is already helping revive global markets and
last year China allowed US chicken imports before has become one of the sole forces easing inflation
imposing a ban that was removed in 2019. The fears in the world’s second-largest economy. The
value of paw exports now is about six times what drop in pork production also meant China needed
it was in 2014. If current trends continue, the US fewer soybeans and less corn, which hit farmers
will set another record in 2022 for the value of paw around the world. After ASF emerged in 2018, China’s
exports to China (PS). soybean imports dropped by 7.9% compared with
the previous year. By 2019, soybean prices in the US
From 1985, egg production in China has had dipped below US$8 per bushel for the first time
retained the leading place in the world. A in a decade. The drop in demand for pig feed hit just
total of 33 metric tons of eggs was produced as China slapped tariffs of up to 33% on soybean
in 2019 representing over 40% of the world imports from the US amid the US-China trade war.
total production. Egg production in China is To compensate for the decrease in domestic pork
characterized by diversity in several aspects, supply, China ramped up pork imports, but it also
including layer breeds, products, and production sought to reshape its domestic industry (McGregor).
systems. New breeds and synthetic lines are
developed to improve the genetic potentials of Beef
egg production and feed efficiency of layers. In
the past, layer farms were run mostly by small China is now the world’s largest imported
households with 100 to 1000 layers per farm. Over beef market. A strong economic rebound after
the past decades, egg production in China has initial COVID-19 disruption and a substantial
developed toward standardization and expansion meat shortage due to African Swine Fever (ASF)
of production systems, and many of these modern bolstered China’s beef imports in 2021. While China
intensive farms raise millions of layers. Although pork prices have declined considerably since the
the Chinese egg products maintain strong Lunar New Year in 2021, suggesting pork supplies
competitiveness over other animal products and have rebound, the sheer magnitude of sow herd
imported egg products, the egg industry will grow liquidation and sporadic recurrences of ASF suggests
at a slower pace compared to the past. Chinese this may be short-lived. Nevertheless, cooling
consumers are more concerned about the quality pork prices have yet to drag beef prices down and
and safety of eggs and egg products, as well beef imports have continued to expand. Over the
as the environmental issues related to animal past decade, China has continued to open its beef
production, which presents challenges for the market to an ever-growing list of suppliers – most
Chinese egg industry (Ning). of the beef heavyweights have enjoyed expanding
trade into the market. Over the year-to-May 2021
186
metric tonnes of paws were exported to China in Pork
2020, generating revenue of US$460 million. If all
those paws had gone to rendering, they would Since African Swine Fever (ASF) first emerged
have generated less than one-tenth of that. The in China in 2018, the disease has devastated
popularity of paws has yielded another benefit the country’s hogs, wiping out some 50% of the
for US producers, as it has spurred demand for country’s pig population. China’s mass culling—
other parts of the chicken, primarily leg meat. Paw the country is the world’s largest producer and
exports to China started out slowly in 2020 due to consumer of pork—rocked the world’s US$300
the impact of the COVID-19 pandemic including billion pork market, costing the industry as much
shipping and port issues in China. But they increased as US$130 billion in total losses. But over the past
rapidly that spring, and the demand for US paws year, China has managed to get a handle on the pig
continued in 2021, with the US becoming the pandemic, repopulating its pigs through improved
dominant supplier with a 44.8% market share. US biosafety measures and shifting production to large
paws are particularly desirable in China because of farms that can afford more biosecurity. China’s hog
the size of US chickens. The volume of paw exports resurgence may be fragile—given the ever-present
to China has exceeded what was anticipated and threat of fresh ASF outbreaks—but the new supply
is more than triple from what it was in 2014, the of pigs is already helping revive global markets and
last year China allowed US chicken imports before has become one of the sole forces easing inflation
imposing a ban that was removed in 2019. The fears in the world’s second-largest economy. The
value of paw exports now is about six times what drop in pork production also meant China needed
it was in 2014. If current trends continue, the US fewer soybeans and less corn, which hit farmers
will set another record in 2022 for the value of paw around the world. After ASF emerged in 2018, China’s
exports to China (PS). soybean imports dropped by 7.9% compared with
the previous year. By 2019, soybean prices in the US
From 1985, egg production in China has had dipped below US$8 per bushel for the first time
retained the leading place in the world. A in a decade. The drop in demand for pig feed hit just
total of 33 metric tons of eggs was produced as China slapped tariffs of up to 33% on soybean
in 2019 representing over 40% of the world imports from the US amid the US-China trade war.
total production. Egg production in China is To compensate for the decrease in domestic pork
characterized by diversity in several aspects, supply, China ramped up pork imports, but it also
including layer breeds, products, and production sought to reshape its domestic industry (McGregor).
systems. New breeds and synthetic lines are
developed to improve the genetic potentials of Beef
egg production and feed efficiency of layers. In
the past, layer farms were run mostly by small China is now the world’s largest imported
households with 100 to 1000 layers per farm. Over beef market. A strong economic rebound after
the past decades, egg production in China has initial COVID-19 disruption and a substantial
developed toward standardization and expansion meat shortage due to African Swine Fever (ASF)
of production systems, and many of these modern bolstered China’s beef imports in 2021. While China
intensive farms raise millions of layers. Although pork prices have declined considerably since the
the Chinese egg products maintain strong Lunar New Year in 2021, suggesting pork supplies
competitiveness over other animal products and have rebound, the sheer magnitude of sow herd
imported egg products, the egg industry will grow liquidation and sporadic recurrences of ASF suggests
at a slower pace compared to the past. Chinese this may be short-lived. Nevertheless, cooling
consumers are more concerned about the quality pork prices have yet to drag beef prices down and
and safety of eggs and egg products, as well beef imports have continued to expand. Over the
as the environmental issues related to animal past decade, China has continued to open its beef
production, which presents challenges for the market to an ever-growing list of suppliers – most
Chinese egg industry (Ning). of the beef heavyweights have enjoyed expanding
trade into the market. Over the year-to-May 2021
186
