Pig International - September 2017 - 5
supply and price of live pigs in China occurred. The
concentration of more large-scale farms will ease the
control of the pig supply and therefore stabilize the
market trend and price development.
To support large-scale farming, China has implemented a subsidy depending on the number of pigs.
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Further measures have been implemented to develop live pig farming in China and try to increase efficiency, such as compensation for animal epidemic prevention. This includes three types of subsidies, which
support farmers in keeping the health of their livestock
and reduce the damage incurred by diseases.
■ Free-of-charge vaccines for highly pathogenic avian
influenza, foot and mouth disease, etc.; culling of
animals due to major animal epidemic diseases will
get compensation for losses
■ The central government and local financial departments will offer a subsidy of US$11.63/head
(RMB80/head) for safe disposal of dead pigs
■ Losses of diseased pigs at the slaughter stage will
get a subsidy of US$116.28/head.
Furthermore, there will be rewards for live pig
farming in counties. To be more specific, no less than
US$145,350 of rewards will be granted for newly built
and reconstructed large-scale pigsties in each county.
The subsidy standard in some regions, according to
CCM, is as follows:
■ New built pigsty (US$5.81/m3)
■ New built biogas digester (US$21.8/m3)
■ Introducing improved sows (US$58.14-87.21/head)
Insurance policies for live pig farming
Adult sow insurance, fattening pig insurance and
live pig price index insurance are included in policyoriented agricultural insurance. This will help insured
farmers to save some losses when suffering pig diseases, natural disasters and market fluctuations. For
instance, insured farmers can obtain an insurance
amount of US$145.35/head for a dead adult sow after
paying a premium of US$8.72/head. Notably, the government will pay US$6.98/head for the premium, so
September 2017 ❙ www.WATTAgNet.com
farmers themselves only have to pay US$1.74.
In addition to the bespoke subsidies, there are additional subsidies for improved varieties, feed and livestock
facilities. All of them aim to reduce environmental pollution, increase the scale of livestock and poultry farming
and stabilize the live pig market in China. Beneficial for
farmers, these subsidies can surely increase their incomes.
According to CCM, in the future, individual farms and
farming companies will gradually exit the market.
What's more, Fujian Province already announced
concrete measurements for its live pig farmers. On
March 9, 2017, Nan'an City, a major city in the province, issued the Action Plan of Specific Rectification
of Live Pig Farming Pollution, according to which the
city should finish demolition work of live pig farms located in forbidden areas, and complete transformation
of 173 large-scale live pig farms to be retained.
Notably, live pig farms with 500 to 1,500 heads of
pigs in non-forbidden areas, which passed environmental protection check and meet emission standard before
the end of 2018, will get a US$43,610 reward. Those
that passed the environmental protection check before
the end of 2017 will get another US$1,450.
Related to China's restructuring of its pig farming,
the imports of pork are expected to soar to a record
high in 2017. While the demand for pork is still rising
for the Chinese population, this trend opens opportunities for foreign exporters to fill the gap of the live pig
supply in China during the restructuring period. ■
Patrick Schreiber is a marketing and public relations
executive at Kcomber Inc. Email him at patrick.
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