15 B u s i n e s s p l a n | F i s h m e a l a n d f i s h o i l p r o d u c t i o n Both industries are growing fast in China – company major market. PORK INDUSTRY OF CHINA Pigs have been at the centre of Chinese culture, cuisine and family life for thousands of years. But pork consumption grew In the mid-1970s an average Chinese citizen ate an average of 8 kilograms of pork a year. Today, each person in China eats about 39 kilograms of pork a year, while Americans eat about 27 kilograms. Because of this, production of pork in China is growing steadily over the years. In 2014 Chinese pork production was 56,700 thousand MT (see Figure 14). Figure 14. Pork production by countries (1000 MT) Market analysis That is more than 51% of the world pork output. So, the Chinese market became the biggest one in the World. The growth rate in production of pork in China have been stable since 1975 (see Figure 15) up to 2015. But over the last 18 months, China’s pork industry has experienced one of the largest culls on record, the results of which are just now being felt globally. In 2015 there was a big drop of the Chinese pigs herd that have an impact to the entire global pork market. For 2015, Chinese pork production is forecast to reduce by 3.7 million tonnes (6.5 percent), to 53 million tonnes. Longer-term forecasts suggest China will continue contribute the greatest share of the increase in global pork production but in 2015 the country is had to satisfy growing demand from imports. Chinese demand from imported pork is expected to expand during the rest of this year and on into 2016. According to the Rabobank report, a 1.9 million tonnes Chinese supply gap implies a 600,000 tonnes increase of pork imports above the 1.3 million tonnes imported in 2014. At present importing pork in China is more profitable than produce it domestically The matter is that Chinese pig farms are notoriously inefficient, unsafe and environmentally damaging. Chinese production costs are at least double those in the U.S. because of high feed costs and disease problems (Des Moines Register, Feeding China). Therefore, the Chinese companies started two big improving programs: • At the urging of their government, they have launched a global buying of pork production. Figure 15. China pork Production by Year (1000 MT) R E C A P : 0 10000 20000 30000 40000 50000 60000 70000 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
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