Home › Forums › Summer Institutes › East Asian Food and Identity, Summer 2021 › Fred Gale - Changing Chinese Diets and World Markets (July 29)
Hard to be in the pork business in China. First disease wiped out half the hog stock. That's bad for producers and consumers. Then imports are hurt by trade sanctions. That's good for domestic producers, bad for comsumers. Chinese producers ramp up, the trade war eases. Now there's too much pork and the Chinese government is stepping to help.
Here's a note from the private (though still supervised) news organization Caixin (7/23/2021):
Once a bonanza for small farmers in rural China, raising pigs has become a loss-making endeavor as prices have slumped and costs have soared, forcing the government to start an emergency pork buying program and prompting a warning to producers not to use the market for speculation or gambling.
An oversupply of pigs and the rising cost of grain used to feed hogs, mostly corn and soybean meal, have been squeezing producers’ profit margins. The average market price of live hogs fell to 14.1 yuan ($2.18) per kilogram (kg) in late June, the lowest in more than two years, according to data from the National Development and Reform Commission (NDRC), while the cost of corn feed (link in Chinese) rose to a record high of 3.01 yuan per kg last month, data from the Ministry of Agriculture and Rural Affairs (MARA) show.
From Who Will Feed China, p.32: “It may well force a redefinition of security, a recognition that food scarcity and the associated economic instability are far greater threats than military aggression is.” I would add to this observation the increasing prominence of food—and beverage—in international trade relations as well as diplomacy and geopolitics. For instance, China’s tariffs on Australian wines (up to 200+ percent) and the accompanying grey market, vs. Japan’s recent, highly publicized, decision to eliminate tariffs on Australian wines. These reflect appetites for higher-value items (e.g. lobsters, etc.) beyond the staple foods, and I wonder what percentage of China's population has access to them.
Tangential to my point are the intriguing statistics cited in “China’s Safety Requirements Pose Challenge for Food Exporters” such as the sections titled: U.S. Products Accounted for 7 Percent of Refusals and Smaller Countries See Surge of Refusals in 2020. These conversations and considerations are further complicated by pandemic-imposed supply chain disruptions resulting in processing/shipping/inspection delays and, hence, “shortages.”
Is that leading to relative scarcity, instability, or insecurity? What are some of the current and reliable indicators to which we can refer?
Sun Dawu is not your typical pig farmer. He built a multi-billion dollar enterprise. Earlier this week he was sentenced to 18 years in prison. This is not so much a food story as one about the increasingly tense relationship between the state and entrepreneurs. But Sun ran afoul of the authorities in publicizing the devastation of the swine fever outbreak.
SCMP April report on his formal arrest:
https://www.scmp.com/news/china/politics/article/3131173/chinese-agri-tycoon-sun-dawu-faces-trial-after-land-dispute
Report on his conviction and sentencing:
https://www.cnn.com/2021/07/29/business/sun-dawu-prison-sentence-china-intl-hnk/index.html
Found interesting the immediate thought of lack of food and running out of resorces world wide. It brought back to my mind the thought of "water wars". I always thought that water will be an issue that will bring countries, regions to war. It was interesting that food will such a catalyst for such an event. Leaving in a rural area--the San Joaquin Valley in Califonia--has allowed me to see this first hand. More industry, less farm land. Although technological advances allows for more production, it also seems incredible to see how less and less land is used or "saved" for food production.
Deborah Brautigam spoke at USC on this topic: https://china.usc.edu/video-deborah-brautigam-china-and-africa
Fred Gale's second lecture has much on food safety issues, including differences between the US and China. Lucy Hornby's 2018 presentation on soil contamination and how it poses a threat to safe food: https://china.usc.edu/watch-presentations-environment-and-food-panel-china-finding-solutions-conference
In “Who Will Feed China" (page 24), the author mentioned that rapid industrialization leads to heavy loss in cropland which causes food production decline. I have to mention the loss of farming population here. In 1949, China's population was 540 millions. Among them 482 millions were farmers, over 89% of the population. In 2018, China's population was close to 1.4 billion, only 565 millions were farmars, 40% of the population.
In the 70s, China had a slogang "备战备荒" (prepare for war and prepare for famine) because of tension between China and the Soviet Union. Will China today reconsider its econimic model to put more emphasis on food production to inrease food security?
Hu Line or Heihe-Tengchong Line devided China from the northeast to the southwest. To the east of this imaginary line, lives 94.1% of the population with 43.8% of land area; to the west, 5.9% of the population and 56.2% of the land. In the unfarmable west, water resource is a big issue. Will China divert water from the Himalayas to make this 50% land farmable? What will happen between China and its neighboring countries if they do so? Or will China look for other parts of the world, such as Africa, to meet their food demends so they don't depend on U.S. as much?
This week's session makes me think too about how food can also be weaponized and has been in recent Taiwan/China disputes over Taiwanese pineapple this spring summer: Taiwan’s “Pineapple War”: Opportunity Amid an Industry Crisis - Taiwan Business TOPICS (amcham.com.tw)
His current entry is about pork prices and includes this chart:
Indeed, I feel the same way that food supply has been weaponized and politicized. In particular, I have been thinking about the recent issue that Taiwan’s parliament approved the imports of U.S. pork containing a leanness-enhancing additive. See the article https://www.reuters.com/article/us-taiwan-politics/taiwan-lawmakers-approve-imports-of-additive-fed-u-s-pork-idUSKBN28Y0ZF. This event has caused many public protests and media attention in Taiwan. Similarly with the “political pineapple” issue, Taiwan has been a victim of political and trade deals through the imports of U.S. ractopamine pork. I am curious to know what Fred’s perspective would be regarding these issues. Meanwhile, despite the complexity of political and economical issues such as the political pineapple, I am thinking how we can integrate issues like this in our classroom.
Thanks for posting Fred's blog. This is very helpful!
Raw beef, chicken, lamb price goes up vs pork price goes down in China. However, the parity among beef, chicken, lamb and pork food menu product doesn't really change. Quality pork product (such as BBQ, Cantonese Char-Siu, Pork Noodle) maintains at the same price or even increases along with other meat product in China.
China's unprecedented growth and development in recent decades has lept ahead of the development of regulations and systems to oversee and enforce them, much like earlier changes in the UK and USA, but when this interacts with an era of food (and water) scarcities in a changing environment, both natural and political, China and the rest of the world face huge, novel challenges. When I've been asked in the past about China's food scandals, I replied that the inquirer should read Sinclair's The Jungle. We've been there. Growth is hard. I'm struck by the class materials and the comments above that for China and the rest of us in the twenty-first century, we have apparent limits on how we will all get enough good food, leading to shortcuts, smuggling, gray markets, confused policies, and violence at various levels. The ways in which China, the USA, and other major food producers and consumers will affect all of us in localized and very personal ways that we cannot predict well. This session raises so many questions but also offers information about trends and issues. I hope mindful leaders and thoughtful citizens can keep needs, sources, and new technologies in mind. Even done with great care, these efforts will be imperfect and painful in many ways and places. I was born during the Green Revolution, which challenged Malthusian predictions in the last century, allowing us to feed a massive population of humans. The potential and massive side effects of these developments have affected different communities in various ways in a great spectrum of haves and have-nots. In the United States, for example, we benefit from a fundamental bounty, but so many here go hungry or have poor access to nutritious food, while our capitalist system and political policies prevent much of our excess production from consistently reaching the hungry in other parts of the world. China faces a much more constrained set of resources and options while also trying to feed the largest population on Earth. Its own systems of production, distribution, and quality assessment have undergone massive changes and are insufficient to maintain the consumer lifestyle, including food, that resembles that in the USA more and more every day. At the same time, China has its own range of access to quality victuals. Each of us can deepen our own understanding and that of our students in order to promote good choices for ourselves and our world.