Why is American pork so cheap?

Affected by pig diarrhea, the supply of live pigs in the United States decreased and the price soared by 30%. Smithfield, the largest pig supplier in the United States, has now been acquired by Shuanghui, and the pig business has made a big profit.

American pork, with a price increase of 30%, is still cheaper than China.

At present, the price of live pigs in China is about 7. 15 yuan per kilogram 14.3 yuan. The price of live pigs in the United States is only about 5 yuan per catty, which has a huge price advantage.

root

The source of cheap pork in America is cheap feed, and cheap feed is cheap food. Corn and wheat are the main components of feed. At the end of 20 13, the price of wheat in China rose to about 2,500 yuan/ton, that in the United States rose to about 1300 yuan/ton, and the price difference between China and the United States was about 1200 yuan/ton.

Corn aspect

The corn price in the United States plummeted in 2009, and fell to about 900 yuan/ton in mid-2009, while the corn price in China kept a steady upward trend from 2005, climbing to about 2250 yuan/ton at the end of 20 13, and the price difference between the two countries was about 1250 yuan/ton.

It is difficult to reduce the prices of wheat and corn in China. The state's stock market acquisition has led to a steady increase in food prices. Even so, farmers are reluctant to grow grain. In order to compete with the United States, unless a large amount of land is concentrated for large-scale planting, land concentration is far from an economic problem. It is unlikely that China will reduce the price of food and feed and make the cost of raising pigs equal to that of the United States.

One of the few ways to occupy a place in the international market is to buy American pig breeding enterprises, so that the cost can be basically the same as that in the international market. Shuanghui has already done this. At present, American pork has not entered the China market in large quantities. One obstacle is that the United States allows pigs to be raised with clenbuterol, and pork containing clenbuterol cannot enter the China market.

Raise pigs with lean meat

The cycle of slaughtering pigs can be shortened by one week, which saves the feed cost for one week. In order to enter the China market, lean meat is not used, and the breeding time is increased by one week, and the increased feed cost is limited. After all, the cost of live pigs in the United States is 30% lower, and spending more money on feed will not affect the competitive advantage of American pork.

At present, Smithfield fresh meat sold in the domestic market still takes the high-end route, with an annual import of only a few thousand tons; China slaughters about 700 million pigs every year, ranking first in the world; When it comes to competitiveness, there is a big gap with the American market. If the market is liberalized, it is not impossible for cheap pork to enter China in large quantities.