An unprecedented contraction in the supply of pork from China will have a spill-over impact on the dairy sector – as African swine fever looms.
“The current African swine fever epidemic is expected to reduce China’s pork production by up to 35%, resulting in increased demand for other animal proteins. Rising demand for beef could constrain China’s milk production if dairy cow-culling accelerates to fill some of the gap in animal protein,” according to Rabobank’s senior dairy analyst Sandy Chen.
“The ASF situation in China has had a double impact on US whey, permeate, and lactose exporters as the world’s largest market for dairy-derived animal feed shrinks and US competitiveness erodes due to the trade war-induced tariff,” says Ledman.
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