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Tuesday, July 9, 2019

FAO, OECD See China Pork Output Rising In 2020 Forward But Note US Trade Issues

China has been severely impacted by African swine fever, with the disease cutting production in the country, according to the annual Agricultural Outlook 2019-2028 report from the UN Food and Agriculture Organization (FAO) and the Organization for Economic Cooperation and Development (OECD), but their production is expected to rise 2020 forward.

The report likened the situation in China with ASF to that from 2007-2008 when Porcine Respiratory and Reproductive Syndrome (PRRS) epidemic reduced domestic supply. The agencies said the current outlook sees pork production in 2019 in China down by five percent.

“For 2020, production and consumption is projected to return to the 2018 level and resume its trend in growth for the remainder of the outlook period,” the report said.

The supply shortage in China is expected to result in nearly two million tonnes of imports, the report noted. “With increased tariffs imposed on U.S. exports of pigmeat, Brazil, Canada and the European Union are projected to benefit from China’s increased import demand.”