Paul Anderson, General Manager South East Asia – International Sales Manager Genesus Inc.
Dubbed as the longest Christmas-celebrating country, Filipinos take Christmas celebrations seriously. Christmas carols start to play as early as September and last till January of the following year. As a result, swine farmers enjoy the delight of an increase in demand for pork, served at every Filipino household table.
Hence, as the ASF Virus continues to infect new provinces in Visayas and Mindanao and with hundreds of thousand metric tons of imported frozen pork, the farm gate price of fattening pigs has stagnated since June of this year, even if December is already approaching. Furthermore, the production cost of locally-produced pork is increasing at an all-time high, and a new threat to the industry is looming as the government approves the importation of Processed Animal Proteins (PAP) for aqua feeds from ASF-infected countries.
Pork is the largest segment of the meat & livestock market in Asia-Pacific, accounting for 57.3% of the market’s total value. The Philippines accounts for 1.6% of the Asia-Pacific agricultural products market value. Based on the current study, the Philippines is among the top 10 world’s largest pork-producing countries, and an average Filipino eats 14-15kg of pork per year.
Based on the Philippine Statistics Authority (PSA), The January to December 2021 gross value of hog production at current prices was estimated at PhP. 271. 20 billion pesos. This was 10.7% higher than the previous year’s gross receipt of PhP. 245. 07 billion pesos. In 2021, the total volume of imported pork was recorded at 488,220 metric tons. It increased by 171.7% from the 179,669 metric tons level last 2020. During the second quarter of 2021, the volume of imported pork increased by 433.6 percent, from 31,272 metric tons in the same quarter of 2020 to 166,876 metric tons in 2021.
Moreover, the total value of imported pork increased by 184.0 percent, from USD 271.32 million in 2020 to USD 770.51 million in 2021. The highest value was reported from April to June 2021 at USD 265.28 million.
The country’s swine industry is valued at 18.28% of the whole agricultural output of the Philippines. The agriculture sector employs over 25% of the Filipino workforce and contributes 9% of the country’s GDP.
Pork price likely to be eased in 2Q/2023
Live pig prices in Thailand are expected to be eased in the second quarter of next year as supplies are showing sign of recovery.
CPF, a major agri-food conglomerate in Thailand, said its third quarter profit jumped 21% to THB 5.1 billion (USD184 million) due mainly to high meat price’s especially pork.
It said the trend of pork price in the country was similar to those of Vietnam and China, which were hit by ASF before Thailand. Pork supplies in the two countries recovered after severe shortage in the first and second years of the outbreaks as pig producers are handling their operations better.
As a result, the supplies are likely to be fully recovered in the second quarter of next year, CPF said in its report submitted to the Stock Exchange of Thailand.
Thai Foods Group, a major pork producer in Thailand said its earnings in the third quarter of the year increased 75% to THB 8.5 billion (USD 306 million) with a profit of THB 1.7 billion (USD 61.3 million).
Its impressive financial results were driven by a rising pork and chicken prices both in local and international markets, it said.
The price of live pigs in Thailand is at THB 110/kg (USD 3) this week compared with THB 85/kg (USD 2.3) in the same period last year.
– The price of the pig now is 52,000 – 53,000 vnd/kg in the North; 51,000 – 54,000 vnd/kg in the center; and 51,000 – 55,000 vnd/kg in the South. Average will be around 52,000vnd/kg. More detail, please see the link: https://vietnambiz.vn/gia-heo-hoi-hom-nay-2111-duy-tri-trong-khoang-tu-51000-dongkg-den-55000-dongkg-20221120205347561.htm.
– According to preliminary statistics of the General Department of Customs, the export turnover of animal feed of the whole country in 10 months of 2022 reached 950.98 million USD, up 10.2% compared to 10 months of 2021; in which, in October 2022 alone, it reached 89.33 million USD, up 25.3% compared to September 2022 and 15.3% compared to October 2021 (source: https://nhachannuoi.vn/thi-truong-xuat-khau-thuc-an-gia-suc-10-thang-nam-2022/).
– Only use NAVET-ASFVAC vaccine for pigs 8 – 10 weeks old. That’s the recommendation of NAVETCO Central Veterinary Medicine Joint Stock Company at the seminar on using African swine fever vaccine held in Ba Ria – Vung Tau province (source: https://nhachannuoi.vn/chi-su-dung-vac-xin-navet-asfvac-cho-heo-8-10-tuan-tuoi/).
– In the world market, pork prices continued to decline significantly in October due to weak global imports along with falling domestic demand in some leading producing countries. Animal diseases, inflation and geopolitical tensions remain challenges for the world livestock industry, except China (source: https://vietnambiz.vn/bao-cao-thi-truong-heo-hoi-thang-10-gia-heo-trung-quoc-di-nguoc-chieu-the-gioi-20221120211813283.htm).
– On November 20, information from the Government Office said that on November 19, Deputy Prime Minister Le Van Thanh signed Official Letter No. 7785/VPCP-NN sent to the Ministry of Agriculture and Rural Development and related ministries and branches to direct coordination in studying the issue pork export (source: https://thanhnien.vn/chinh-phu-chi-dao-bo-nn-ptnt-nghien-cuu-xuat-khau-thit-heo-post1523621.html).
– Mita cited the following cases: US pork can now enter South Korea duty-free; Vietnam reducing its tariff rate on frozen pork from 15 percent to 10 percent; Vietnam’s pork tariff on European pork (currently at 9.4 percent) and Canadian pork (5.6 percent) continue to reach zero under an existing FTA; Russian pork enters Vietnam at zero duty, among others (source: https://businessmirror.com.ph/2022/09/30/group-to-pbbm-extend-lower-pork-imports-tariff/).
Jersey Red Duroc
Genesus has believed for over two decades that as an industry we should be producing pork that is more marbled, redder, and juicier – Taste matters. Our Jersey Red Duroc continually dominates taste tests globally. The link below is Genesus’ Chef Glenn Mckenzie Smith preparing Genesus Jersey Red Duroc pork. If as an industry we are going to grow pork demand we need to deliver a better eating experience. When is it bad business to have a better product?
Click on the below link to watch Jersey Red Duroc – Pork Chop video:
Categorised in: Featured News, Global Markets
This post was written by Genesus