American grain trader Cargill closes its feed production plants located in China. This was reported by Reuters, referring to the company’s message.
Only for the period from December 2018 to May 2019, Cargill closed three of its feed mills in China. Their total capacity was about 150 thousand tons.
The main reason for stopping the factories was the epidemic of African plague in China. However, according to Cargill spokesman Chuck Warta, most of the closed operations will not be launched even when the ASF epidemic in China is waning.
However, while Cargill intends to invest $ 65 million in the modernization of its plant in Nanjing, and also plans to launch a new production in Henan Province (eastern part of the PRC). According to Chuck Warta, Cargill is transferring the released resources to more profitable types of production.
Since August 2018, the ASF epidemic in China has led to the slaughter of more than 1 million pigs, as a result, imports of soybeans and its processed products to China have declined significantly. So, from January to June 2019, soybean imports to China decreased by 14.7%.