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China pork crisis
China

US announces new rules to speed up pig slaughter ahead of anticipated China pork supply gap

  • Removal of speed limits expected to increase production by 12.5 per cent, but critics fear changes will affect both food and worker safety
  • Unprecedented pork shortage expected to emerge as African swine fever ravages herds in China

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Pigs stand in a barn at a farm in Panggezhuang village in northern China's Hebei province in May. Pork prices have spiked after shortages caused by an outbreak of African swine fever. Photo: AP
Bloomberg

New Department of Agriculture regulations are set to bring US pork processors a windfall. Under rule changes announced on Tuesday, which include a “modernised” inspection system, hog slaughter can be faster and maximum speeds have been removed.

As a result, the USDA estimates average annual savings for large pork processing plants at US$3.78 million as they increase production by 12.5 per cent. However, opponents are worried it will affect food safety.

The changes come just as the world of pork is about to be turned on its head, with a deadly virus ravaging herds in China, the biggest producer and consumer.

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An unprecedented supply gap is expected to emerge as early as next year, and American hog producers are keen to fill the demand. There are already signs of pork shortages in China, with protein prices there hitting records.

Pork packers in the US are already doing well as ample supplies keep down cash market prices for animals. According to HedgersEdge data, packers are making US$40.30 a head, the highest this year.

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