CRU: Will High-cost Animal Feed Phosphate Producers Survive the Cull

This year the African swine fever (ASF) epidemic in China has led to a vast pig culling programme in order to halt the spread of the fatal disease. Reports indicate that 30-55% of China's swine herd has been eliminated already. In China the IFP of choice for the swine producers is dicalcium phosphate (DCP), so the cull has hit Chinese DCP demand. Though the cull sounds extreme, there are some important caveats which must be understood in order to evaluate the likely impact it will have on IFP demand.

Chinese swine production is predominately a backyard farming industry, which is inherently more at-risk of ASF because these animals are exposed to less stringent animal health and welfare standards. In China, the disease has spread through wild hog populations and cross-contamination from infected farms. Commercial scale operations are indoors and contained, so less likely to be contaminated. Backyard farms consume less IFP and compound feed than commercial scale producers, using cheaper feedstuffs and nominal additives such as IFP.

Read the full story:
https://www.crugroup.com/knowledge-and-insights/insights/2019/will-high-cost-animal-feed-phosphate-producers-survive-the-cull/ 

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CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.

Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.

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