the competitive situation and perspective of chinese pig
TRANSCRIPT
04.07.19 Page 0 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production agri benchmark / InterPIG
Pig Conference 2019
agri benchmark InterPIG Pig Conference 2019
The competitive situation and perspective of Chinese pig production
Dr. Claus Deblitz, Michael Groes-Christiansen
Beijing 04.07.2019
04.07.19 Page 1 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Content
The networks behind
Global context
Results InterPIG
Results agri benchmark
Conclusion
04.07.19 Page 2 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production agri benchmark / InterPIG
Pig Conference 2019
Beijing 04.07.19
The networks behind
04.07.19 Page 3 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
agri benchmark Pig and InterPIG Conference 2019
04.07.19 Page 4 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
agri benchmark
• 1-n data sets of typical farms per country (Pig and non-pig enterprises)
• Sector data + country time series
Data sources (based on SOP)
• Producers and local experts
• Regional statistics , accounting and other data
Applications
• Int’l benchmarking, farm strategy analysis, animal welfare, environment …)
agri benchmark and InterPIG – 2 complementary networks
InterPIG
• Country average from farrow to finish
Data sources
• Averages from sometimes hundreds of farms
• Accounting and other data
Applications
• Int’l benchmarking
04.07.19 Page 5 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Countries in the agri benchmark Pig / InterPIG Network 2019
Participating countries 2019
Contacts for further growth
agri
benchmark No.
countries No.
farms
Pig total 19 86 *
Sows 18 41
Finishers 19 45
* 25 farms appear twice due to closed system (sows and finishing)
04.07.19 Page 7 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production agri benchmark / InterPIG
Pig Conference 2019
Beijing 04.07.19
Market shares
04.07.19 Page 9 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Global pig meat production 2017 (‘000 t)
Source: FAOStat 12,2016
04.07.19 Page 11 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Annual pork production growth rates 1968-2017 - selected countries
Source: FAOStat 02/2019, own calculations
Percent
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Wo
rld
Bra
zil
Can
ada
Ch
ina
Jap
an
Mex
ico
Sou
th K
ore
a
Ru
ssia
Sou
th A
fric
a
Thai
lan
d
Ukr
ain
e
USA EU
1968 - 1977 1978 - 1987 1988 - 1997 1998 - 2007 2008 - 2017
04.07.19 Page 12 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Per capita consumption changes in selected countries 2014-2018
Source: agri benchmark, national statistics
Kg pig meat per capita and year
0
10
20
30
40
50
60
'14 '15 '16 '17 '18
04.07.19 Page 15 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Pork – feed / grain price ratio recently improving
Based on USD per ton prices (until April 2019)
0
5
10
15
20
25
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
Pork vs. maize
Pork vs. wheat
Pork vs. soy
Source: The World Bank Pink Sheets, FAO Meat price index http://pubdocs.worldbank.org/pubdocs/publicdoc/2016/5/148131457048917308/CMO-Historical-Data-Monthly.xlsx
04.07.19 Page 16 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Pork prices for selected countries Jan-Jun 2019 Index 100 = average of the year 2018
Index based on national currencies
80
85
90
95
100
105
110
115
120
125
130
Jan 19 Feb 19 Mrz 19 Apr 19 Mai 19 Jun 19
Czechia
Germany
Spain
France
UK
US
Source: agri benchmark, national statistics
04.07.19 Page 17 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Top 10 pig trade flows 2014 (‘000 tons)
Source: UNComtrade 2016
279
649
357
383
277
370
314
209 329
383
• One to China • Six in Europe
Note: Trade flows to China include China Mainland, Hong Kong and Macao
04.07.19 Page 18 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Top 10 pig trade flows 2016 (‘000 tons)
718
361
376
346
641
361
304
508
430
322
• Five to China • Two in Europe
Note: Trade flows to China include China Mainland, Hong Kong and Macao Source: UNComtrade 2017
04.07.19 Page 19 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Top 10 pig trade flows 2017 (1,000 tons)
Source: UNComtrade 2018
776
335
343
461
348
310
380
459
288
283
• China demand lessening
Note: Trade flows to China include China Mainland, Hong Kong and Macao
04.07.19 Page 20 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production agri benchmark / InterPIG
Pig Conference 2019
InterPIG results
04.07.19 Page 21 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
InterPIG provisional 2018 result and in the past
Prices on input
Some productivity levels
Production cost total
Payment
Production cost of 30 kg piglet
Conclusion InterPIG
04.07.19 Page 22 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Feed Prices
04.07.19 Page 23 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Cost of labour
04.07.19 Page 24 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Pigs born alive per litter
04.07.19 Page 25 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Live weight at slaughter
04.07.19 Page 26 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Total cost per kg live weight in Euro/kg
04.07.19 Page 27 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Obtained payment in 2018 per kg live weight
04.07.19 Page 28 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Profit 2018
04.07.19 Page 29 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Profit in 2017
04.07.19 Page 30 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Net profit before taxes
04.07.19 Page 31 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Production cost 30 kg piglet
04.07.19 Page 32 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
EUROSTAT 10 years index sows and slaughterings
04.07.19 Page 33 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
EU production in tonnes
04.07.19 Page 34 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Conclusion Profits
2017 a profitable year = increased production in EU
2018 not a profitable year = effect on 2019 as a whole?
Spain and USA is highly competitive on price of production and payment to the farmer
04.07.19 Page 35 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Conclusion InterPIG
Some countries in Europe very cost efficient 30 kg production = export 30 kg live pigs to Germany and Poland
East Europe go back in sows numbers but could return (ASF mostly in Eastern Europe)
Increasing focus on environmental issues in Europe eg. Ammonia emissions from farms
04.07.19 Page 36 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production agri benchmark / InterPIG
Pig Conference 2019
agri benchmark sow results
04.07.19 Page 37 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Chinese farms in the comparison
Farm name 1) Finished Type of farm Weights Carcass Finishing Daily Feed Mortality
pigs p.a. Start End End yield period weight gain conversion
No. LW LW CW % kg g 1:x %
CN_420_7800 4.800 Single operator 40 160 120 75% 150 800 3,2 4,0%
CN_460_8300 8.300 Single operator 27 110 79 72% 110 759 3,1 3,0%
CN_800_19K 18.750 Single operator 25 122 95 78% 105 924 2,9 3,0%
CN_1100_16K 18.000 Single operator 23 120 91 76% 150 647 3,7 4,0%
0 0 0 0 0 0 0% 0 0 0,0 0,0%
Farm name 1) Sows Type of farm Total Per sow Total live weight sold per sow Replace- Mortalities
Reared Reared Piglets Sows +
boars
Total ment rate Sows W. piglets R. piglets
No. No. No. kg kg kg % % % %
CN_420_7800 420 Single operator 3.162 19 753 80 833 80 2% 10% 4%
CN_460_8300 460 Single operator 2.273 19 494 97 592 97 2% 10% 3%
CN_800_19K 760 Single operator 7.109 23 935 79 1015 79 2% 10% 3%
CN_1100_16K 1.200 Single operator 5.198 19 433 178 611 178 2% 7% 4%
Anhui Heilongjiang
Henan Beijing
04.07.19 Page 38 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Number of sows
Number of sows
BR_1200_0 Farrow to weaner
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
DE_
17
0_0
DE_
22
0_6
30
0D
E_3
50
_0D
E_4
00
_12
KD
E_8
00
_0D
E_2
49
0_
0
DK
_3
50
_50
00
DK
_6
00
_20
KD
K_
11
00
_0
FI_4
50
_0FI
_11
40
_0
NL_
46
0_0
NL_
49
0_3
90
0N
L_1
10
0_0
ES_1
00
0_2
1K
FR_2
00
_6
00
0FR
_27
5_
70
00
PL_
20
0_4
22
0
HU
_55
_0H
U_2
30
0_6
8K
CZ_
12
00
_1
9K
BG
_16
00
_43
K
CA
_14
00
_0
CN
_42
0_7
80
0C
N_4
60
_83
00
CN
_80
0_1
9K
CN
_11
00
_16
K
VN
_30
_40
0
JP_
80
_20
00
KR
_23
0_
53
50
ZA_6
00
_13
KZA
_12
50
_32
K
ES_4
50
_0ES
_24
00
_0ES
_25
00
_0
RU
_32
00
_83
KR
U_1
5K
_45
0K
BR
_12
00
_0
BR
_45
00
_0
VN
_40
0_1
0K
ZA_1
88
0_5
0K
Number Integrated
Single operator
Ge
rman
y
De
nm
ark
FIn
lan
d
Ne
the
rlan
ds
Spai
n Sp
ain
Fran
ce
Po
lan
d Hu
nga
ry
Cze
chia
B
ulg
aria
Can
ada
Ch
ina
Vie
tnam
Ja
pan
Ko
rea
Sou
th A
fric
a
Ru
ssia
Vie
tnam
Sou
th A
fric
a
04.07.19 Page 39 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Number of reared piglets: Chinese farms are at the lower end …
0
5
10
15
20
25
30
35
40
BR
_12
00
_0
VN
_40
0_1
0K
BR
_45
00
_0
ZA_1
88
0_5
0K
ES_2
40
0_0
ES_4
50
_0R
U_3
20
0_8
3K
ES_2
50
0_0
RU
_15
K_4
50
K
HU
_55
_0C
N_4
60
_83
00
CN
_42
0_7
80
0C
N_1
10
0_1
6K
VN
_30
_40
0K
R_2
30
_5
35
0P
L_2
00
_42
20
ZA_6
00
_13
KES
_10
00
_21
KC
N_8
00
_19
KD
E_1
70
_0C
A_1
40
0_0
JP_
80
_20
00
ZA_1
25
0_3
2K
FR_2
00
_6
00
0FR
_27
5_
70
00
DE_
35
0_0
CZ_
12
00
_1
9K
DE_
40
0_1
2K
FI_1
14
0_0
BG
_16
00
_43
KN
L_4
60
_0D
K_
35
0_5
00
0N
L_1
10
0_0
NL_
49
0_3
90
0H
U_2
30
0_6
8K
DK
_1
10
0_0
DE_
24
90
_0
DE_
80
0_0
DE_
22
0_6
30
0FI
_45
0_0
DK
_6
00
_20
K
Number per sow and year
Integrated Single operator BR_1200_0 Farrow to weaner
04.07.19 Page 40 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
… and similar applies to total liveweight produced per sow and year
Kg liveweight per sow and year
Integrated Single operator
0
200
400
600
800
1000
1200
1400
BR
_12
00
_0
VN
_40
0_1
0K
ES_2
40
0_0
ES_4
50
_0ES
_25
00
_0B
R_4
50
0_
0R
U_3
20
0_8
3K
RU
_15
K_4
50
KZA
_18
80
_50
K
VN
_30
_40
0H
U_5
5_0
CN
_46
0_8
30
0C
N_1
10
0_1
6K
PL_
20
0_4
22
0ZA
_60
0_1
3K
KR
_23
0_
53
50
CZ_
12
00
_1
9K
CA
_14
00
_0C
N_4
20
_78
00
NL_
11
00
_0N
L_4
60
_0D
E_1
70
_0D
E_3
50
_0N
L_4
90
_39
00
ZA_1
25
0_3
2K
JP_
80
_20
00
DK
_3
50
_50
00
FI_1
14
0_0
FR_2
00
_6
00
0FR
_27
5_
70
00
DE_
40
0_1
2K
DE_
22
0_6
30
0ES
_10
00
_21
KD
E_2
49
0_
0C
N_8
00
_19
KB
G_1
60
0_4
3K
HU
_23
00
_68
KD
E_8
00
_0FI
_45
0_0
DK
_1
10
0_0
DK
_6
00
_20
K
Integrated Single operator
04.07.19 Page 41 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Piglet prices and total returns per sow and year are at the upper end in the Chinese farms
USD per 100 kg total liveweight
0
100
200
300
400
500
600
700
VN
_40
0_1
0K
BR
_45
00
_0
ZA_1
88
0_5
0K
ES_4
50
_0ES
_24
00
_0ES
_25
00
_0B
R_1
20
0_
0R
U_1
5K
_45
0K
RU
_32
00
_83
K
VN
_30
_40
0FR
_20
0_
60
00
FR_2
75
_7
00
0C
A_1
40
0_0
DK
_6
00
_20
KD
K_
35
0_5
00
0N
L_4
90
_39
00
DE_
40
0_1
2K
DK
_1
10
0_0
NL_
11
00
_0N
L_4
60
_0D
E_2
49
0_
0D
E_1
70
_0ES
_10
00
_21
KD
E_8
00
_0D
E_2
20
_63
00
DE_
35
0_0
ZA_1
25
0_3
2K
BG
_16
00
_43
KC
Z_1
20
0_
19
KFI
_45
0_0
ZA_6
00
_13
KH
U_2
30
0_6
8K
PL_
20
0_4
22
0FI
_11
40
_0C
N_8
00
_19
KC
N_4
20
_78
00
CN
_11
00
_16
KK
R_2
30
_5
35
0C
N_4
60
_83
00
HU
_55
_0JP
_8
0_2
00
0
Integrated
Single operator
04.07.19 Page 43 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Chinese sow farms with a wide range of cost levels
0
100
200
300
400
500
600
700
RU
_32
00
_83
KB
R_4
50
0_
0R
U_1
5K
_45
0K
ZA_1
88
0_5
0K
ES_2
40
0_0
ES_2
50
0_0
VN
_40
0_1
0K
ES_4
50
_0B
R_1
20
0_
0
CN
_80
0_1
9K
DE_
40
0_1
2K
ES_1
00
0_2
1K
DK
_6
00
_20
KD
K_
35
0_5
00
0FI
_45
0_0
NL_
49
0_3
90
0P
L_2
00
_42
20
CN
_46
0_8
30
0ZA
_12
50
_32
KN
L_1
10
0_0
DK
_1
10
0_0
FR_2
00
_6
00
0C
A_1
40
0_0
FR_2
75
_7
00
0H
U_2
30
0_6
8K
FI_1
14
0_0
DE_
24
90
_0
CN
_42
0_7
80
0N
L_4
60
_0D
E_8
00
_0D
E_3
50
_0D
E_1
70
_0D
E_2
20
_63
00
ZA_6
00
_13
KC
N_1
10
0_1
6K
CZ_
12
00
_1
9K
BG
_16
00
_43
KV
N_3
0_4
00
KR
_23
0_
53
50
HU
_55
_0JP
_8
0_2
00
0
USD per 100 kg total liveweight
Integrated
Single operator
04.07.19 Page 44 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Chinese sow farms with very low labour productivity
kg liveweight per hour of labour input
Integrated
Single operator
0
50
100
150
200
250
300
350
400
VN
_40
0_1
0K
ZA_1
88
0_5
0K
RU
_32
00
_83
KR
U_1
5K
_45
0K
BR
_12
00
_0
BR
_45
00
_0
ES_4
50
_0ES
_24
00
_0ES
_25
00
_0
VN
_30
_40
0H
U_5
5_0
CN
_11
00
_16
KC
N_4
20
_78
00
CN
_46
0_8
30
0ZA
_60
0_1
3K
ZA_1
25
0_3
2K
CZ_
12
00
_1
9K
BG
_16
00
_43
KC
N_8
00
_19
KK
R_2
30
_5
35
0JP
_8
0_2
00
0H
U_2
30
0_6
8K
PL_
20
0_4
22
0D
E_1
70
_0ES
_10
00
_21
KD
E_3
50
_0D
E_8
00
_0D
E_4
00
_12
KD
E_2
20
_63
00
DK
_3
50
_50
00
NL_
46
0_0
DE_
24
90
_0
DK
_1
10
0_0
CA
_14
00
_0FI
_45
0_0
DK
_6
00
_20
KN
L_1
10
0_0
FR_2
75
_7
00
0N
L_4
90
_39
00
FR_2
00
_6
00
0FI
_11
40
_0
04.07.19 Page 45 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Chinese sow farms belong to the most profitable
-200
-150
-100
-50
0
50
100
150
200
250
VN
_40
0_1
0K
ES_4
50
_0B
R_1
20
0_
0ES
_25
00
_0ES
_24
00
_0ZA
_18
80
_50
KB
R_4
50
0_
0R
U_1
5K
_45
0K
RU
_32
00
_83
K
VN
_30
_40
0FR
_27
5_
70
00
FR_2
00
_6
00
0B
G_1
60
0_4
3K
CZ_
12
00
_1
9K
CA
_14
00
_0D
E_2
49
0_
0D
E_2
20
_63
00
NL_
46
0_0
DE_
80
0_0
DK
_1
10
0_0
ZA_6
00
_13
KN
L_1
10
0_0
DE_
17
0_0
KR
_23
0_
53
50
DK
_6
00
_20
KD
E_3
50
_0N
L_4
90
_39
00
DK
_3
50
_50
00
DE_
40
0_1
2K
ZA_1
25
0_3
2K
ES_1
00
0_2
1K
FI_1
14
0_0
HU
_23
00
_68
KH
U_5
5_0
CN
_11
00
_16
KFI
_45
0_0
CN
_42
0_7
80
0P
L_2
00
_42
20
CN
_80
0_1
9K
JP_
80
_20
00
CN
_46
0_8
30
0
USD per 100 kg total liveweight
Integrated Single operator
04.07.19 Page 46 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production agri benchmark / InterPIG
Pig Conference 2019
agri benchmark finishing results
04.07.19 Page 47 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Feed conversion rates are a weak point of the Chinese farms …
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Integrated Single operator
04.07.19 Page 48 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
… especially as average weighted feed prices are relatively high …
USD per ton
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Integrated Single operator
04.07.19 Page 49 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
… pork prices rather moderate in 2018 …
USD per 100 kg carcass weight
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50
100
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Integrated Single operator
04.07.19 Page 50 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
… and piglet prices elavated …
USD per head USD per kg live weight
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50
100
150
200
250
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1,00
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3,00
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5,00
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Female and barrow price per kg
Female and barrow price per head
Integrated Single operator
04.07.19 Page 51 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
… resulting in high costs …
0
50
100
150
200
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USD per 100 kg carcass weight
Integrated Single operator
04.07.19 Page 52 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
… and low profitability
-150
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0
50
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30
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20
0_4
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25
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49
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E_0
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00
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_8
75
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_27
5_
70
00
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K_
60
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FI_0
_73
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_3
50
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00
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_0
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KD
E_4
00
_12
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L_0
_15
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A_0
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KC
N_8
00
_19
KK
R_2
30
_5
35
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_20
0_
60
00
DE_
0_3
80
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_60
0_1
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DE_
0_5
00
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_0_1
3K
JP_
80
_20
00
USD per 100 kg carcass weight
Integrated Single operator
04.07.19 Page 56 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
Summary and conclusions
Relatively low productivity: - sows: rearing percentage - finishing: feed conversion
High feed prices, relatively high costs
Low labour productivity with increasing wages problematic
ASF
Trade dispute with the US
Biggest player in the world with high impact on world market
High piglet (and pork) prices
Strong domestic market
High potential to develop towards a world leading industry
Negativ Positiv Less positive Positive
How fast will be the transformation of the sector after ASF?
04.07.19 Page 60 Claus Deblitz + Michael Groes Christiansen
Competitive situation + perspective of Chinese pig production
agri benchmark – passionate about facts
Dr. Claus Deblitz
Thünen Institute of Farm Economics Bundesallee 50 38116 Braunschweig, Germany
Tel.: +49-531-596-5141 Fax: +49-531-596-5199 E-mail: [email protected] Internet: www.agribenchmark.org www.thuenen.de/en/bw/