Newsmax TV & Webwww.newsmax.comFREE - In Google Play
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
Tags: AS | China | Swine Fever

Swine Fever Adds to China's Economic Headaches

Friday, 23 November 2018 03:38 AM

BEIJING (AP) — Reeling from rising feed costs in Beijing's tariff fight with President Donald Trump, Chinese pig farmers face a new blow from an outbreak of African swine fever that has sent an economic shockwave through the countryside.

African swine fever doesn't affect humans but is fatal to pigs and highly contagious, making it a serious threat to farm areas.

First detected in August, the disease has killed 1 million pigs, prompting authorities to restrict shipments of most of China's 700 million swine, even though nearly all are still healthy. That has disrupted supplies of pork, China's staple meat, to big cities while prices collapsed in areas with an oversupply of pigs that farmers are barred from shipping to other provinces.

"I can only manage to break even at the current price," said a breeder on the outskirts of Shenyang, northeast of Beijing, where the first swine fever case was reported Aug. 3. She said she was rearing about 100 pigs and would give only her surname, Yan.

"Unless we see a higher price for pigs, all my work this year would have gone for nothing," said Yan.

On Friday, Beijing reported its first cases. Authorities said 49 of the 1,325 pigs at a farm in suburban Fangshan district were found dead and 37 of the 429 pigs at another farm had died.

The outbreak adds to a swarm of challenges for Chinese leaders as they grapple with Trump over Beijing's technology policy and try to shore up cooling growth in the world's second-largest economy.

"Farmers have been losing money in pig-breeding provinces for the past a couple of months and their confidence has been shattered," said Feng Yonghui, chief analyst of soozhu.com, a pork industry consultant.

The cost of raising pigs spiked after Beijing retaliated for Trump's tariff hikes on Chinese goods by slapping 25 percent duties on imported U.S. soybeans used as animal feed.

American farmers supplied about one-third of China's imports of 96 million tons of soybeans last year, while its own farms produce about 15 million tons a year.

Soy prices have risen by as much as 4 and 5 percent per month since then in some areas.

Importers are buying more soy from Brazil and Argentina, the other major exporters. Authorities have encouraged breeders to look at other protein sources such as canola.

While farmers wrestled with that, the industry was jolted by the discovery of China's first case of African swine fever on Aug. 3 in Shenyang, in Liaoning province.

Since then, sick animals have been found in areas from Jilin province in the northeast to Yunnan on China's southern border with Vietnam.

Authorities responded by banning shipments of all pigs from any province with one case.

A big share of China's population still depends on farming even after the country became one of the biggest manufacturers. The agricultural share of the workforce has fallen to 18 percent from more than 50 percent two decades ago, according to World Bank data, but farm households still account for 250 million people.

The southwestern province of Sichuan, which accounts for some 10 percent of Chinese pork production, last week became the 18th region to report an outbreak. That extended swine fever's reach to all major Chinese pig breeding areas.

With Sichuan included, government restrictions on the movement of pigs now extend to some 90 percent of the Chinese industry's animals, according to Feng of soozhu.com.

"The impact of the government policies is bigger than the epidemic itself," said Feng.

In the northeast, the export ban has led to a pork glut in markets, pushing down prices by 20 percent compared with three months ago, according to state media. Meanwhile, retail prices have jumped 30 percent in Chongqing, a city of 9 million people in the southwest.

The outbreak could cause longer-term disruption if farmers respond by raising fewer pigs next year, leading to shortages and higher prices.

Compared with previous cases of animal diseases, "the swine fever epidemic is more troublesome," said Tan of Zero Power. "Farmers and consumers may panic and cause greater damage to the pork industry."

The government maintains stocks of frozen pork in case of shortages but has yet to say whether any will be released this year.

Yan, the breeder in Shenyang, said she will skip buying piglets to rear this year but will keep sows to produce more.

"Even doing that is difficult because it is hard to keep these baby pigs alive," she said.

AP researcher Yu Bing contributed.

© Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Reeling from rising feed costs in Beijing's tariff fight with President Donald Trump, Chinese pig farmers face a new blow from an outbreak of African swine fever that has sent an economic shockwave through the countryside.African swine fever doesn't affect humans but is...
AS,China,Swine Fever
Friday, 23 November 2018 03:38 AM
Newsmax Media, Inc.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved
© Newsmax Media, Inc.
All Rights Reserved