Return from ChinaLast week in the commentary we wrote of the car accident we had in China. I am now truly happy to report our return home. As you read last week Mike Van Schepdael my business partner and vice president of Genesus received significant injuries. Fortunately he has had a rapid improvement and his recovery continues. Ron Lane, senior consultant of Genesus in China was also in the accident. Ron was bruised and black and blue from the accident but despite this he was able to call on his over decade long experience in China to quickly facilitate an excellent Beijing hospital. Ron then in true Genesus spirit travelled the next day after the accident to work the Nanjing Swine Exhibition on behalf of Genesus. Ron was like his nickname “Old Dragon” invincible.
This past week we have been distracted. The simple observations we can make is that the U.S. corn market took a hit from what we understand was China delaying deliveries from summer to fall. Being in China we can see the quest to modernize pig and poultry production which as production increases will lead to greater needs for feed imputes. Indeed the scale and scope of swine and production projects are so large we hesitate to discuss because the scale is so large they could be perceived as fantasy. The need to feed 1.3 billion people in itself is a huge undertaking. When you are in meetings where companies plan on 20 – 2500 sow units this year, the scale and magnitude of a 600 million hog market hits home; short term the hog price in China reflects a pork shortage relative to demand in an economy with increasing per capita income.
Categorised in: Pork Commentary
This post was written by Genesus