Jim Long, President-CEO, Genesus Inc.
Asia Road Trip Week 1
Last week we visited the Philippines. It was the first time we have ever been there.
- 107 million people spread out over many islands, with over 50% on one island called Luzon.
- Luzon sits at the northern end of the Philippines, and is the country’s largest and most populous island.
- A high percentage of people are English speaking, a legacy of a large American influence over the last 100 years.
- We understand that the Philippines has about 1.3 million sows.
- Pork is served in many restaurants with many dishes unique to the Philippines.
- Pork is served on the countries airlines. Maybe U.S. – Canada airlines could start supporting pork producers.
- Profits for market hogs in the Philippines currently in the $30 per head range. Cost of production about $200 U.S. per head.
- Corn is grown but it is also imported. Soybeans are imported.
- Hot and humid climate. The Philippines are not far from the equator. Continually hot weather is not the best environment for swine production.
When we were in the Philippines Genesus signed agreement with the company Golden Harvesta to stock a new 2600 Nucleus. The new farm will be the largest Registered Purebred Production Unit in the Country. Golden Harvesta has become Genesus producer and marketer in the Philippines. It is exciting to have the opportunity to become a major genetic player in the Philippines.
After the Philippines we flew to Hong Kong then to Chengdu the capital of southwestern China’s Sichuan province.
ASF has hit China hard. Production is declining.
Producers we have spoken to, expect hog prices will accelerate after mid-summer as the effects of the huge liquidation in sow inventory (7 million sows) comes into play.
Speculation is that the China record price of 23 rmb. (1.50 U.S. lb. liveweight) will be surpassed. Indeed all we speak to expect this scenario.
One of the reasons the speculation is that China’s hog prices will accelerate in August is the government mandate that stored pork will be tested for ASF after July. This is encouraging all cold storage pork to be sold prior to that date. In July all pork including live hogs will be tested for ASF at slaughter plants by government officials. Any positive pork or hogs will be burned.
China Ag people are very conscious of the tense political and economic issues between China- USA- Canada i.e. Soybean, Pork imports, Canola, tariffs are all subjects that we have been I discussions about. Like us they are spectators as the politicians play out the future.
In Sichuan we visited Genesus producer TLQS. TQLS is one of the major egg, swine and feed producers in China.
TQLS took us to a 20,000 sow site stocked with Genesus sows. This site is part of the TQLS production system. The site; 20,000 sow farm called Maple Leaf Pasture, had a unique showcase to with marble hallways, floor to ceiling glass areas.
Have to say, never seen anything like it. TQLS has extraordinary ability to showcase and market as they work to enhance their brand.
This coming week we will be travelling further in China. On Friday speaking at Global Swine Genetic Conference. We will continue to report our observations.
This post was written by Genesus