A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine...

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A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois

Transcript of A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine...

Page 1: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

A View of the Chinese Swine Industry

L.D. Firkins, DVM, MS, MBACollege of Veterinary MedicineUniversity of Illinois

Page 2: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

State of the Industry

–Majority of large farms are expanding• Shortage of pork• Pressure for inexpensive pork

– Industrialization of production• Joint Ventures

–Capitalism vs. Communism

Page 3: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

Background Information on China

• Apparent limitless supply of eager and hard working labor for farms

• Major investment is being made into infrastructure

• Projected to continue for next 10-15 years• Reluctance of industry to be dependent on

foreign interests

Page 4: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

Scope of Chinese Swine Industry

• Chinese Swine Industry produces over half of the global pork output: – 600 million head: Ministry of Agriculture– 550 million head: National Statistical Bureau

• 2007: $4.1 billion in US soybean imports• Competitive cost of production– Low cost for labor & facilities

Page 5: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

Growth of Chinese Swine Industry

• 1.3 B people with 8-10% GDP growth, consequently increasing per capita income and desire to improve their diet

• Pork is #1 meat consumed

Page 6: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

Marketing of Pork

• There are no measures taken at slaughter except weight

• Vast majority of pork sold as fresh• Hong Kong market most profitable– Quota system to fill the needs of this market

Page 7: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

Disease Challenges

• PRRS• Porcine Circovirus• Pseudorabies• Foot and Mouth Disease• Hog Cholera• H. parasuis• Enteric pathogens

Page 8: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

Porcine High Fever Disease

• Reports of 400,000 to 100 million deaths • One estimate was that production was

decreased by 9%• Shortages of pork at retail level with a

tremendous increase in price

Page 9: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

Health Challenges

• Some commercial PCV2 vaccines are available in China• Effectiveness is questionable and does not appear to be as

effective as here in the US

• Use of tissue extract vaccines taking place for PCV2 and PRRS

• HCV and FMD vaccination mandatory• Increase incidence of H. parasuis outbreaks being

reported

Page 10: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

Health Challenges

• Lack of diagnostic lab system with quality control throughout the country

• Lack of veterinary services

Page 11: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

Health Challenges

• Farrow to finish single site makes disease control very difficult

• Lack of isolation of incoming stock• Solid concrete flooring increases incidence of

enteric disease• Lack of any coordinated efforts towards

improving health

Page 12: A View of the Chinese Swine Industry L.D. Firkins, DVM, MS, MBA College of Veterinary Medicine University of Illinois.

Future of Chinese Industry

• Production increases as industrialization of industry shifts production from backyard farms to scaled production units

• Adoption of technologies – pig flow• Need to improve health issues• Independence vs. strategic imports– Breeding stock and soybeans

• Global economic challenges