Genesus Global Market Report – China Market
Lorne Tannas, Technical Director, Genesus Inc – China
China prices begin to strengthen as the Chinese eat their way out of low prices.
In 2017 we saw another year of consumer increase in pork consumption. This trend will continue on for another 7 years.
Record imports of pork and pork products in 2017 has had a toll on prices in the first two quarters of this year. Chinese production has improved and slaughter weights have increased. This has made predicting production more difficult when figuring import needs.
The last 6 months has had relatively good health throughout the industry putting more pork in the market. The question has always been how much pork can China produce and how much is needed for imports. There has never been a question that pork is the choice for Chinese people.
The middle class in China continues to grow and with it so does red meat consumption.
Wheat and Canola have started to be harvested in central and southern China. Crops are very good. Canola meal has become of interest to producers as it is a good source of protein and could replace a dependency on soy imports. It will be interesting as this idea plays out over the next few years.
Meat quality continues to become more importance. The increase of expendable cash from the middle and affluent on Red meats will mean the consumer wants better quality as well as just eating more. This trend will continue and China will head toward the Japanese standard for meat quality.
With better meat quality in the market eating their way out of low prices can be enjoyable solution.
This post was written by Genesus