Opportunites in the Chinese hog market

The price of pork in China has increased more than 50% in one year, yet the meat shops remain packed. There's so much money to be made in the Chinese meat trade nowadays. Did you know that the Chinese eat more pork than the rest of the world combined. The country consumes seven times as much as the United States. And consumption is increasing as per USDA as Chinese pork consumption rose 22% between 2002 and 2006.

Although in 2007, a shortage of pork hit China as a series of calamities, such as the earthquake, huge snowfalls, and an outbreak of swine disease have resulted in a 9% decline in the country's pork production. As a result, Chinese pork prices rose 68% between April 2007 and April 2008.

Meanwhile, there's a glut of pork in North America. The situation is so bad in Canada as its government is giving Canadian hog farmers C$225 for every breeding pig they "cull." To qualify for the money, hog farmers must agree to "depopulate" an entire breeding barn and promise not to house more hogs in the same barn for three years.

Meanwhile in the U.S., hog prices are so low that farmers are killing their piglets and using them as compost.

Thus, I think there's a big opportunity for America and Canada to export pork to China as the potential for further Chinese importation of pork is almost incomprehensible. Also, the Philippines must be on the look out for some opportunities to tap the Chinese hog market. A 1% market share from a nation with more than a billion people means a lot. Putting it into perspective, say 10,000,000 multiplied by the price of the pig . . . it's a lot of money!