China accelerates pig breeding on ‘vertical farms’, affecting meat prices in Brazil

On the outskirts of Nanyang, a city in south-western China that is about 400 kilometers from Wuhan, a 21-building condominium is the largest “vertical pig farm” in the world.

In buildings up to 13 stories tall, pig production takes place on an industrial scale. As piglets grow and fatten, they change floors, going up or down in an elevator. Feeding is automated, there are manure cleaning robots and infrared cameras to detect any change in temperature in animals that may indicate a risk of disease.

The farm owned by the company Muyuan Foods is the main example of how the Chinese intend to quickly re-stock the approximately 200 million pigs that were slaughtered since 2018 to control African swine fever, a disease that does not affect humans, but which has decimated production in China and affected agricultural markets worldwide.

Impact on prices in Brazil

Brazil is a major exporter of corn and soybeans to China, in addition to animal protein. See the graphs below for China’s share of Brazilian exports of these commodities, according to DataLiner:

Brazilian Corn and Soy Exports to China vs Rest of the World | Per Quarter – Jan 2018 to Mar 2021 | WTMT

Graph source: DataLiner (click here to request a demo)

Brazilian Exports of Beef, Pork, and Poultry to China | Jan 2019 to Mar 2021 | TEU

Graph source: DataLiner (click here to request a demo)

With this replacement of the pig herd, the effect will be global. In the last 12 months alone, corn imports from China have more than tripled to 26 million tons compared to an annual average of 7.6 million tons.

Source: O Globo

To read the full original article, access the link below:

https://oglobo.globo.com/economia/china-acelera-criacao-de-porcos-em-fazendas-verticais-isso-afetara-preco-da-carne-no-brasil-25031296

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