Chinese pigs start to shake the world economy

Half of the world's pigs (about 1 billion heads) are in China. With the growing affluent life of residents, the consumption of essential pork on the table continues to increase, becoming a reason for rising prices. In order to ease the dissatisfaction of the domestic people, the country is taking measures to increase pork production. The increase in feed consumption has had an impact on world food prices. All in all, Chinese pigs will shake the world economy.

Pork prices pushed up the inflation rate in the corner of the "Nine Husbandry Pig Specialized Cooperatives" in Beijing's suburbs. A group of pale pink pigs snuggle together to sleep.

Twenty-nine households formed cooperatives and raised 20,000 pigs. With the continuous improvement of living standards, pork consumption continues to increase. The price of each pig rose from 600 yuan to 2,100 yuan. However, farmers can not be complacent about this. The person in charge of the cooperative said: “The price of pork has risen, but the price of feed and fuel has also risen. The labor cost has also been increasing. We must achieve large-scale production to reduce costs.”

Since the establishment of the cooperative, the prices of corn and other feeds have risen to three times in four years, and the starting wages of employees have doubled. Due to the high prices in Beijing, this cooperative intends to relocate to Hebei Province and Inner Mongolia Autonomous Region and plans to build a breeding company with 10 pigs within 5 years.

Chinese people eat more pork, and pork production has increased by more than 10% in the past five years. The chicken and beef production is only one quarter and one eighth of pork respectively.

China’s CPI increased by 6.5% in July from the same period last year, a record high since June 2008. Among them, the price of pork rose by nearly 60%, and contributed 1.5 percentage points to the increase in consumer price index.

Response measures have slowed down The soaring prices of essential pork on the table have caused dissatisfaction among ordinary people. Excessively high prices may be a factor of social instability. Therefore, the country began to take countermeasures.

The state announced in July that it will invest 2.5 billion yuan to expand the scale of pig farms and improve the pig breeds. The government also said that it will use part of the reserve to increase the supply of frozen pork and also plans to import pork from the United States. In addition, in order to increase production efficiency, the government also introduced methods such as introducing foreign capital, improving logistics, and promoting large-scale production. However, as these measures will not be effective immediately, Chinese pig farmers will carry out small-scale farming, and as the cost continues to increase, some farmers are under pressure to abandon their pigs. The Chinese government, which is very sensitive to food security, cannot increase imports at once. The soaring trend of pork prices cannot be controlled.

The cycle of price changes in China was about three years before. Specifically, the rise in pork prices has forced the Chinese government to promote pork production. As pork production continues to increase, pork prices begin to decline. Under the influence of prices and diseases, many farmers have abandoned farming. The pork market again appeared in short supply, and pork prices rose again. However, the trend of pork prices has affected the overall price level, and the previous cycle of change may change. Due to the rising international prices of feed and fuel, the labor costs have risen sharply. Many people believe that pork prices may not be cyclically changed as before.

Zhang Ping, director of the National Development and Reform Commission of China, pointed out in late August that the total price level may be thrown high. Market participants predict that the CPI growth rate in August will remain at around 6%.

Raising World Food Prices China is both a factory in the world and the world’s stomach.

In order to raise pig breeds, the 9-pastoral pig professional cooperatives import pigs from the Netherlands. The price of breeding pigs rose by 60% in a few years. One of the reasons for this is the increase in asking prices from China.

The increase in live pigs increased world food prices. China's corn imports have increased dramatically, from 50,000 tons in 2008 to 1.57 million tons in 2010. According to a trading company in Beijing, China's corn imports will increase to 5 million tons in 2011 and 10 million tons in 2015. China's domestic corn production is 177 million tons, compared with a small amount of imports. However, relevant sources pointed out that China’s future trends and future expectations will become the focus of attention.

On the other hand, taking into account the continuous expansion of pork consumption in China, companies in Japan and Singapore have started to participate in such businesses as feed and logistics.

The heads of the 9-pastoral pig-raising cooperatives visited the world's pork producing regions such as the United States and France to inspect and collect information, and kept a high degree of attention to the international prices of feed and fuel. Because our pigs are closely related to the world.