$4bn opportunity opens for Nigerian pig farmers as China faces shortages

There is an opportunity for pig farmers and pork producers in Nigeria to expand their reach to Asia, particularly China and some of its neighbouring countries, where an outbreak of the African Swine Fever has depleted pig stocks by as much as 20 percent.

African Swine Fever (ASF), a contagious disease affecting domestic and wild pigs, is spreading within East and Southeast Asia, threatening the livelihood and food security of millions of people, particularly vulnerable subsistence pig farmers. In China (Mainland), the disease has been reported in 32 out of the 34 provincial level administrative divisions as of mid-June, and more than 1.1 million pigs have perished or have been culled, noted the Crop Prospects and Food Situation Quarterly Global Report published this month (July).

Additionally, the disease has been reported in Viet Nam, Cambodia, Mongolia, the Democratic People’s Republic of Korea and the Lao People’s Democratic Republic, with official estimates indicating that millions of pigs in these countries have already died as a result of ASF.

BusinessDay interactions with some pig farms and stakeholders in Nigeria suggest that at present, the China and Asian market is not one that has been actively explored. However, with the current shortages being experienced, it may be time for the Nigerian pig producers to start looking towards Asia.

“Exporting pigs from here to China?” Hilary Asiegbunam, who manages Jessam Farms in Enugu, asked in a phone interview, surprised at the prospect of exporting to China.

At the beginning of the conversation, he had interpreted it as importation of pigs, saying it was not going to be feasible, but after getting the point, he said, “We are interested in exporting if we can get customers with orders, pay the transport and we export.”

The farm in Enugu, he explained, has over a thousand pigs, representing one out of hundreds of farms with room for expansion if a solid demand-market can be developed, such as the opportunity in Asia.

China is the world’s largest producer and consumer of pork, the country’s most popular meat, and the top global importer, boosting its supplies with cheaper pork from abroad. Its total imports were worth about $4 billion in 2017, Reuters reported.

China’s imports of pork from the United States more than halved to about 263,000 tonnes in 2018, according to customs data, after Beijing imposed hefty tariffs on the meat as part of a trade war.

The faceoff between China and US already created a vacuum for other countries to fill, and with the supply of pork now exacerbated by the rampaging disease, Nigeria could step up to get its share of this market.

“It is an opportunity for us to earn foreign exchange,” said Femi Malomo, CEO, Pigfan Nigeria Limited, who is also secretary of the Pork Producers Association of Nigeria.

According to him, pork producers in Nigeria already export to Benin Republic and some other neighbouring countries. However, to expand to China and take advantage of opportunities in the Asian market, he said, the farmers would need “an unbroken cold chain from the farm to the seaport or from the farm to the airport when we want to export.

“We would also need equipment for processing, and power supply is very important to achieve all of these,” he said.

Big Dutchman, a leading company in providing feeding systems and housing equipment for modern pig and poultry production since 1938, observed in a statement after a seminar in Nigeria last year that Nigerian farmers interested in pig production face many challenges.

Capital shortage, high feed costs, lack of knowledge about efficient production methods, but also the tropical climate, have the effect that many farmers cannot use the full potential of their livestock. Problems include low daily weight gains, diseases and a high mortality. For sow managers, piglet losses of up to 50 percent due to overlying are an issue.

If these challenges are adequately tackled, the country would be able to meet not only local and regional demand, but also that of distant international markets such as Asia.

The Food Outlook, a Biannual Report on Global Food Markets by FAO this year (2019), noted global pig meat production is forecast at 115.6 million tonnes, a decline of 4.0 percent from 2018. The contraction principally reflects a sharp fall in China, which is expected to outweigh expansions especially in the United States of America, Brazil and the Russian Federation.

According to the Chinese Ministry of Agriculture and Rural Affairs, by March 2019, the hog inventory had declined by 18.8 percent, and that of the breeding sow by 21 percent year-on-year. In view of these developments, China’s pig meat output is anticipated to fall by at least 10 percent in 2019, to 6 million tonnes.

The outbreak of African Swine Fever (ASF) in East Asia is likely to have a noticeable impact on meat and feed markets worldwide. The extent and speed of the spread and the number of countries affected are still uncertain.

The unfortunate decline in Asian pig production represents an opportunity for Nigeria to increase its exports generally to China, a trade partner that has dominated the country’s imports. As some experts have also noted, standards and quality assurance procedures have to be put in place, to ensure the pig meat products exported from Nigeria will conform to international standards.

CALEB OJEWALE