The importance of the pork industry in China
The pork industry is of vital importance to China. Historically, meat consumption was an inaccessible luxury due to its high price and rarity, reserving regular consumption of pork to a small fraction of the population. For a long time, pork production remained small-scale and artisanal. There were no large-scale farms producing on a mass scale, thus allowing for economies of scale. However, with the acceleration of the Chinese economy, a growing proportion of the population saw their purchasing power increase, giving them the opportunity to buy material goods, but above all to have a better-quality food including more meat. It was in the 90s that meat consumption by the Chinese population began to rise, and in the 2000s it accelerated. To cope with this acceleration in meat consumption, the industry had to undergo a complete metamorphosis and adopt profound structural changes. As a result, the sector is now worth several billion dollars, and represents a key element in China's strategy of food self-sufficiency.
Pork production in China: Key figures and key players
The most popular meat in China is pork, which largely dominates other meats such as chicken, beef and mutton. There are several reasons for this: firstly, it stems from China's history, as this meat has been widely consumed and appreciated throughout its history. Moreover, pork is the meat most appreciated by the Chinese, as it adapts perfectly to the country's diverse cuisine. As the leading source of meat protein, pork represents a strategic sector for China. The country is the world's biggest consumer of pork, and also has the world's largest pork farms. With over 58 million tons of pork consumed in China in 2023, China will far outstrip the rest of the world, particularly Europe in second place with "only" 18 million tons. Moreover, pork production in China reached 55 million tons in 2022, making the country the world's leading producer.
Below : Ranking of the main producers and pork in the world
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To support and accompany this rise in meat consumption, livestock farms have also had to adapt. In the 80s, over 90% of pork production was handled by small farms, with fluctuating output and no economies of scale. However, in order to keep pace with the gradual rise to the staggering figures we see today, over the years the government has put in place policies to support the sector. In the 90s, we witnessed the birth of multi-billion-dollar industry giants, which account for a large share of pork production in China. These giants include Muyuan Foodstuff Group (牧原股份), Wens Foodstuff Group (温氏股份) and New Hope Liuhe (新希望六和). These giants generate a significant share of pork production in China, and continue to expand year after year. In addition, their investment in research and development spearheads China's drive to professionalize and industrialize the sector.
Foreign trade and International relations
Despite the fact that China can now count on the presence of many giants in the pork production sector, the country still has to import large quantities of pork to satisfy its domestic market and demand. As China's per capita income has improved, pork consumption has risen steadily year after year.
However, this continued growth has been hampered by the outbreak of African swine fever in China, which has wreaked havoc on the industry, drastically reducing production. To remedy this problem, China resorted to mass imports to satisfy domestic demand. In fact, over the last 5 years, China has been the country with the highest rate of pork imports in the world. These imports come from all over the world, but mainly from Europe, the United States and Canada. China represents the main export market for these countries. With per capita incomes rising steadily and pork consumption on the rise, China represents a high-potential market for both local and international players.
Below : Ranking of pork producers and exporters in the world
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Sector challenges and opportunities
As we have seen, the pork sector in China is developing at an incredible speed to meet growing consumer demand. However, this rapid development has brought several major challenges to the fore. Upstream of the chain, we have pig feed. With the world's largest pig herd, China has to produce astronomical quantities of livestock feed every year to guarantee the integrity of the sector. The main source of feed is currently corn, which accounts for 66% of swine feed. However, this food production is subject to a number of hazards: climatic (typhoons, drought, earthquakes, etc.), epidemiological (e.g. diseases affecting plantations) and logistical (e.g. the production chain for fertilizers needed for plantations was disrupted by the appearance of covid 19, or partly by the war in Ukraine). As mentioned earlier, climate risk is a constant pressure on the sector. Extreme heatwaves are a perfect example. These episodes of intense heat, which are occurring more and more frequently due to global warming, affect the breeding cycle. Pigs that can't stand prolonged periods of heat can go off at a high rate, forcing farmers to adopt technologies to alleviate the problem. Also, one of the biggest threats to the sector is the epidemiological risk. We all remember the devastating impact that African swine fever had on the sector in China, leading the country to slaughter millions of pigs. This caused a shortage of meat in the country, with the end result being soaring prices. Finally, the sheer size of the farms, with thousands of pigs per building, generates large quantities of pig waste (excrement, urine). This creates a significant environmental risk, which farms also have to manage. This pollution can affect lakes, rivers and groundwater, thus affecting the cycle of water and life. To avoid all this, China has had to put in place major measures to treat all this waste, and in the best cases, to recycle it so that it can be re-integrated into the production chain, via fertilizer for the production of corn (the main feed for livestock).
This constantly expanding sector is opening up numerous commercial and business opportunities. Despite the presence of many large players in pork production in China, the sector sometimes struggles to meet demand, and must therefore resort to importing meat to satisfy demand. This opens up new business opportunities for pork-producing and exporting countries around the world (with Europe, the USA and Canada leading the way). In addition, it offers these countries a commercial outlet for the less noble parts that are not consumed in their countries of origin. One example is pig's trotters, which are rarely consumed in the West, but are a huge success in China. What's more, the growing investment year after year in research and development into: management and automation equipment for livestock farming, as well as research into genetics, means that specialized players in the sector can look forward to great development opportunities in partnership with local players.
Conclusion and perspectives
China's pork sector is a major pillar of the country's agricultural economy, marked by a history of growth and adaptation in the face of socio-economic change and health challenges. From its modest beginnings to its current position as world leader, the sector has undergone a remarkable transformation, supported by favorable government policies and constant innovation by industrial giants. Despite its impressive production capacity, China continues to import pork on a massive scale to meet the growing demand of its population, offering significant opportunities for international markets.Challenges abound, from environmental management to health risk prevention, but they also pave the way for innovations in livestock feed, animal health and environmental sustainability. The future of China's pork sector will depend on its ability to balance growth and responsibility, by continuing not only to expand production but also to improve animal welfare and environmental protection practices.
The Chinese pork sector remains a dynamic field, full of challenges and opportunities. For local and international players alike, it represents fertile ground for innovation, trade and sustainable development, promising to continue playing a key role in the global food and agricultural economy in the years to come.
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