China is currently importing high levels of pork to cater to demand amid disease fears, with fresh and frozen pork imports reaching 246,767 tonnes in the first nine months of this year.
The Rabobank report, China pork supply – the chronic disease, identified food and mouth disease (FMD) as one of the viruses threatening the sector, along with a different strain of FMD and porcine reproductive and respiratory syndrome (PRRS).
The combination of price volatility and disease concerns is leading farmers to decrease production, tightening supply.
“The pace at which backyard farmers are dropping the business is quicker that the pace at which large scale farms are expanding to fill the gap,” it detailed.
The expansion of large-scale farming faces challenges of space limitations, capital requirement and a lack of qualified labour despite the government attempts to drive up-scale production.