China di­ver­si­fies pork im­ports

Irish Independent - Business Week - - Front Page -

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)

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