China: Profitability in second quarter as production decreases
What has the hog production situation been like recently in China? What measures have been taken to stabilize hog production?
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What has the hog production situation been like recently in China? What measures have been taken to stabilize hog production?
According to the National Bureau of Statistics, Chinese pork production saw a slight decrease in the first quarter.
After the leafhopper attack, corn yields dropped 30% to around 6 tons/ha. The decrease may continue to worsen.
The outlook for 2024 will depend on the dynamics of the main producers: China, the European Union, the United States, and Brazil.
The soybean harvest started with good yields, but only 3% of the first soybean fields in the core region were harvested. Corn harvest is 30% behind the last 5 seasons.
As of March 1, there were 74.6 million hogs and pigs on U.S. farms.
Swine production in France has mirrored the trend in livestock numbers, decreasing in 2023.
Strong recovery in production drives higher crushes and exports in the new season.
We will see if the spring market begins at Easter, as is tradition, or if it is delayed due to these dates falling too early.
Corn contracts have exhibited dynamism in the local market since the beginning of the year, driven by export demand. The harvest is advancing in Brazil with divergent projections.
World corn production estimates were lowered by 2.3 million tons compared to the February report. For soybeans, estimates were again cut for Brazil.
Swine and pork production in 2024 will be marginally down as persistently low live hog and pork prices weigh on producers. Pork imports may grow marginally to offset the forecasted decline in domestic pork production.
Japan’s pork production will be steady and imports up slightly to meet stable demand in both its retail and food service sectors.
Decreases in pig, bovine, and sheep production are expected.
The rise in pork production is forecast to result in a slight increase in exports but lower than usual imports.
This revision adjusted the national target number of reproductive sows from 41 million to 39 million.