Swine industry recovery in China creating opportunity

Jan 16, 2023

Despite setbacks, China is determined to grow its swine industry after taking a massive hit from African swine fever (ASF) in 2018. This has created opportunities for international collaboration, according to a new report from the Iowa Economic Development Association (IEDA).

Tony Wang, IEDA representative in Shanghai, China, said the road to recovery has been bumpy, especially as the country endures complications from COVID-19, the pig cycle, inflation, and other factors.

Following the devastation caused by ASF, China’s pork imports went up significantly in 2019 through 2021. At its peak in 2020, Wang said the U.S. accounted for roughly 14% of China’s pork imports. As China gradually rebuilds its swine herd, however, pork imports have dropped sharply. Still, Wang said lingering impact of ASF combined with the effect of the “pig cycle” and market speculation activities have kept the current pork prices fairly high (around $4.6/kg).

Challenging as it may be, China has set clear targets for building back its swine industry, Wang noted.

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Video: Season 7, Episode 1: Managing Risk and Seeing Opportunities in U.S. Pork Production

Today’s episode features three guests discussing the similarities and differences between pork production in the United States and Brazil, along with strategies for managing risk in today’s industry while recognizing and acting on opportunities. First, Dr. Anne Caroline de Lara, executive manager of live pig production at Seara Alimentos, a JBS company in Brazil, is joined by Dr. Matthew Turner, head of operations for JBS Live Pork. Together, they discuss how labor, climate and ventilation challenges vary between Brazil and the United States, while underscoring their shared commitment to raising healthy pigs. They also point to lessons producers in both countries can take from one another’s systems and on-farm experiences. Then, Brady Reicks, risk manager at Reicks View Farms, shares his perspective on risk management, drawing from his background in markets and his transition into farming. He discusses how protecting margins varies by operation and offers practical approaches producers can use to make marketing and business decisions with greater confidence rather than hesitation.

Both conversations were recorded at recent industry events focused on swine livability, including the International Conference on Pig Livability and Iowa Swine Day.