China diversifies pork imports
CHINA’S COFCO Meat Holdings has imported pork from Chile, the European Union and alternative countries, the pig farming company said yesterday, as Beijing’s hefty tariffs on US pork upends traditional trade routes.
The subsidiary of China’s state-owned grains-to-property conglomerate COFCO said its trading division had diversified origins for its pork imports and developed customers from other countries to cope with the impact of the deepening trade war between the world’s top two economies.
The cost of imported pork from the United States has significantly increased after Beijing imposed two sets of import duties on US pork in recent months in response to similar taxes by Washington. It also slapped 25pc tariffs on US soybean imports, driving up prices of key animal feed ingredient soymeal, further increasing costs for Chinese pig farmers who are already struggling with falling hog prices.
Every 100 yuan (€12.58) per tonne rise in soymeal prices leads to an increase in production costs of 0.05 yuan per tonne, said COFCO Meat chairman Jiang Guojin at the company’s first-half results briefing. The company reported a sharp drop in first-half profit, the latest Chinese pig farmer to post weak results, hurt by the decline in hog prices. Chinese pig prices reached a multi-year low in May, but staged a short-lived recovery in July and early August before resuming the drop in recent weeks, as the country reported first outbreaks of deadly African swine fever cases. (Reuters)