USMEF and NPPC Study China Pork Market
USMEF and NPPC Study China Pork Market
USMEF and the National Pork Producers Council (NPPC) conducted a joint China pork industry market analysis last week, assessing market conditions and structural trends which may determine the future competitiveness of U.S. pork imports.
The USMEF-organized trip included visits to pork producers, distributors, processors and importers in Sichuan, Anhui, Jiangxi and Jiangsu Provinces. Joel Haggard, USMEF senior vice president for Asia-Pacific, led the team along with Donald Song, USMEF director for North China, and Dermot Hayes, professor of economics and finance for Iowa State University, who is consulting on behalf of NPPC.
“The trip has provided valuable insights on the state of the industry, especially the transformation of the Chinese hog industry, once dominated by backyard producers, into one characterized by larger, more specialized operations,” said Haggard.
The USMEF/NPPC team also found changes in imported pork distribution patterns, such as the gradual increase in penetration of U.S pork variety meat into southwest China, once a pork production stronghold.
“In order to appreciate the rate of development, one has to see it to believe it,” said Hayes.
The visiting team has paid particular attention to trends in the costs of production and profitability, which could provide an indication of future U.S. import competitiveness.
Currently, the average Chinese pork producer is losing money due to oversupply, although some expect the market to improve by mid-year.
China announced on April 2 that it will purchase 3,000 tons of pork in southwestern Yunnan province for its frozen pork reserve due to low prices and drought. The reserve purchase is one of the first after the central government announced several weeks ago that the ratio of live hog prices to grain had reached undesirably low levels.
The trip also has yielded new pork distributor and end-user contacts.
“This will help the industry extend its marketing reach into second- and third-tier cities in new geographic areas,” said Song. “One of the challenges we face is that end users, such as the meat processing industry, are scattered across the country, and there is a low level of concentration in the industry.”
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The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.
For more information, contact Jim Herlihy at jherlihy@usmef.org.
USMEF complies with all equal opportunity, non-discrimination and affirmative action measures applicable to it by contract, government rule or regulation or as otherwise provided by law.
USMEF and NPPC Study China Pork Market
USMEF and the National Pork Producers Council (NPPC) conducted a joint China pork industry market analysis last week, assessing market conditions and structural trends which may determine the future competitiveness of U.S. pork imports.
The USMEF-organized trip included visits to pork producers, distributors, processors and importers in Sichuan, Anhui, Jiangxi and Jiangsu Provinces. Joel Haggard, USMEF senior vice president for Asia-Pacific, led the team along with Donald Song, USMEF director for North China, and Dermot Hayes, professor of economics and finance for Iowa State University, who is consulting on behalf of NPPC.
“The trip has provided valuable insights on the state of the industry, especially the transformation of the Chinese hog industry, once dominated by backyard producers, into one characterized by larger, more specialized operations,” said Haggard.
The USMEF/NPPC team also found changes in imported pork distribution patterns, such as the gradual increase in penetration of U.S pork variety meat into southwest China, once a pork production stronghold.
“In order to appreciate the rate of development, one has to see it to believe it,” said Hayes.
The visiting team has paid particular attention to trends in the costs of production and profitability, which could provide an indication of future U.S. import competitiveness.
Currently, the average Chinese pork producer is losing money due to oversupply, although some expect the market to improve by mid-year.
China announced on April 2 that it will purchase 3,000 tons of pork in southwestern Yunnan province for its frozen pork reserve due to low prices and drought. The reserve purchase is one of the first after the central government announced several weeks ago that the ratio of live hog prices to grain had reached undesirably low levels.
The trip also has yielded new pork distributor and end-user contacts.
“This will help the industry extend its marketing reach into second- and third-tier cities in new geographic areas,” said Song. “One of the challenges we face is that end users, such as the meat processing industry, are scattered across the country, and there is a low level of concentration in the industry.”
# # #
The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.
For more information, contact Jim Herlihy at jherlihy@usmef.org.
USMEF complies with all equal opportunity, non-discrimination and affirmative action measures applicable to it by contract, government rule or regulation or as otherwise provided by law.