Pigs of China

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(1) Watch: On the Ground with China’s (Very Important) Pig Farmers. China Real Time, Nov 3, 2011.
http://blogs.wsj.com/chinarealti ... ortant-pig-farmers/

Notre: The report mentions a previous report (there is no need to read but the quotation below):
Tom Orlik, Why Pork Prices Are Such a Big Deal in China. China Real Time, July 8, 2011.
http://blogs.wsj.com/chinarealti ... -big-deal-in-china/

Quote:

"A high proportion of China’s pork – up to 90%, according to industry experts — is raised by farmers in small-scale commercial operations and backyard outfits involving a handful of pigs each. These farmers are acutely sensitive to the movements in price that determine their profit or loss. The two most important variables: the price of pork (the output) and the price of corn (the input).

"A pork-to-corn price ratio of 6:1 is enough for pig farmers to break even. In summer 2009, when pork prices were low, the ratio hovered just above 6 and there was little incentive to farmers to breed more pigs. As a result, sows were taken out of the breeding herd and slaughtered for meat. A year and a half down the line, the consequence is a dearth of pork and higher prices.

"As Mr. Liu, a meat vendor from a Beijing supermarket ruminated, it’s all about incentives for farmers: 'High prices now makes sense, since last year vendors were losing 400 to 500 yuan per pig due to too many being reared.'


(2) Richard Dobson, China’s Pork Imports May Rise to Record on Low US Prices. Bloomberg News, Nov 3, 2011
http://www.businessweek.com/news ... low-u-s-prices.html

Quote:

"Imports, most of which are from the U.S., may jump to more than 400,000 metric tons * * * Purchases of offal, which isn’t categorized as pork by China customs, may gain to 850,000 tons to 900,000 tons, the highest level ever

"Pork imports in the first nine months jumped 86 percent to 250,123 tons, according to customs data. Shipments were 372,941 tons in 2008 during the last round of price gains when the so- called Blue-Ear disease shrunk the country’s herds.

Note:
(a) China Tuhsu Import & Export Co  中国土产畜产进出口总公司
www.tuhsu.com.cn
(b) For blue-ear disease, see porcine reproductive and respiratory syndrome virus
http://en.wikipedia.org/wiki/Por ... tory_syndrome_virus
(c) off-cut (n): "chiefly British : something that is cut off (as a waste piece of lumber)"
www.m-w.com