In my years of experience in journalism, I have rarely delved into the meat industry, so my understanding of this field is limited

 

Recently, Henry Lin, President of the Canada-China Meat Exporter Council (CCMEC), gave a speech at an event hosted by the Canada-China Business Service Center. He shared insights on Canada’s advantageous livestock resources, meat product exports, and ways to promote economic and trade exchanges between China and Canada, with a focus on expanding the reach of Canada’s premium meat products.

Lin pointed out that to understand the current state of China’s meat industry, Henan Province is a prime example.  He recommended I speak with Liu Chengxin, a seasoned expert with over 30 years of experience and the current Executive President of the Henan Meat Association.

 

 “Having worked in the meat industry for over three decades, Liu is regarded as a highly respected figure in Henan’s meat sector and enjoys considerable recognition across the national meat industry”

 

On October 25, 2024, I had a long conversation with Mr. Liu Chengxin from Toronto while he was in Zhengzhou.  Close to 80 years old, Mr. Liu has an encyclopedic knowledge of Henan’s conditions and the history of the meat industry.  He began by explaining that Henan is not only a major province in terms of population and economy but also a leading region in agriculture, livestock farming, and meat production, processing, and consumption.  Known as the “Central Plains Granary” and the “Nation’s Kitchen,” Henan produced 61 million hogs in 2023, ranking third in the country.  The total meat production of pork, beef, mutton, and poultry reached 6.73 million tons in 2023, a year-on-year increase of 2.7%, accounting for 7% of the nation’s total.  Among these, pork production was 4.6533 million tons, ranking second nationwide in China, while poultry egg production was 4.41 million tons, also ranking second.

In recent years, Henan’s meat industry has grown rapidly, producing a series of prominent enterprises, including Shuanghui Group, the world’s largest pork producer; Muyuan Group, the world’s largest pig farming company; and Huaying Group, known as the “World Duck King.” These enterprises have established Henan’s prominent position in the national meat industry, contributing significantly to market supply and price stability.

An Industry Veteran with Keen Market Insights

The Henan Meat Association was established in 1999, Liu became its founding president.  After turning 70, he transitioned to the role of Executive President, a position he still holds today.

Having worked in the meat industry for over three decades, Liu is regarded as a highly respected figure in Henan’s meat sector and enjoys considerable recognition across the national meat industry.

Liu possesses sharp insights into the domestic and international meat markets and has a unique perspective on industry trends.  He summarized the overall trend of China’s meat market with a single sentence: “Production and consumption will continue to grow, but imports will first increase and then decrease.”

Pork: While pork production is stabilizing with slight declines, imports are decreasing. With the optimization of hog production capacity and industrial restructuring, pork production is becoming more efficient and of higher quality.  Production is expected to stabilize at around 54 million tons.  In 2023, pork production reached 57.94 million tons, a 4.6% year-on-year increase.  Domestic demand for pork is gradually decreasing, leading to reduced import needs.  In 2023, pork imports dropped by 5.3% year-on-year, and between January and August 2024, imports decreased by 40.5%, though there remains some rigid demand.

Poultry: The production structure of poultry continues to improve, with domestic high-quality breeds gaining market share.  Production has seen steady growth.

Beef and Lamb: Both production and consumption are growing, though import growth has slowed.  The high-end beef and lamb market is emerging as a new highlight, driven by increased consumer demand for high-quality, green, and organic products.

Overall, Liu noted that the industry is seeing positive structural adjustments, particularly in response to consumer preferences for premium products.

Liu Chengxin’s Enterprise Visits

Encouragingly, in recent years, Henan’s meat industry has made significant strides in implementing the nation’s new development philosophy, accelerating technological innovation, developing high-quality productivity, and fostering international exchanges and cooperation. This progress has led to the emergence of internationally leading enterprises and high-tech projects.

For example, in 2022, construction began on Shuanghui’s third industrial park in Luohe, with a total investment of 11 billion RMB.  The park focuses on new food industries such as central kitchens, Chinese cuisine, noodle products, and foodservice ingredients.  It is being developed with high standards in planning, construction, and operational efficiency, setting a new benchmark for the meat industry and leading the way for the food sector’s future development.

Henan Muyuan Foods has prioritized scientific hog farming as its primary focus, followed by high-quality pork production and processing.  In 2023, the company reported a live hog inventory of 63.826 million and an output of 63.816 million, accounting for 14.7% and 8.8% of the national totals, respectively.  Numerous pork, beef, lamb, and poultry enterprises in Henan are striving to innovate and grow by adopting advanced practices and technologies from leading domestic and international companies.

When discussing international exchanges and cooperation, Liu spoke with pride, saying, “We maintain close ties with the global meat industry.  Many international and domestic peers have visited Henan to observe, exchange ideas, and negotiate business opportunities.”

Henan’s Unique Advantages

Henan is in the Central Plains, enjoying a geographically advantageous position and convenient transportation links.  The 144-hour visa-free transit policy at Zhengzhou Xinzheng International Airport facilitates international trade and tourism.  Additionally, Henan has developed four “Silk Roads”—by air, land, internet, and sea—creating major international logistics channels.  These have significantly streamlined the import and export of meat and other products.

Zhengzhou is one of China’s major hubs for meat imports, distributing products to vast inland regions.  The saying “imported meat prices are set by Zhengzhou” underscores its importance. Henan is not only the “Meat Basket of Central China” but also the “Meat Basket of China,” with its meat production ranking among the nation’s highest.

Henan Meat Association’s Leadership

For many years, the Henan Meat Association has played a pivotal role as an industry leader and organizer.  It has made substantial contributions to enhancing communication and collaboration among member units, promoting technological innovation, and expanding market opportunities in the meat industry.

The association works closely with government departments and research institutions, diligently supporting enterprises with practical solutions and offering policy assistance and professional services to its members, earning widespread acclaim.

During the “2023 China International Meat Industry Week (CIMIW2023)” series of events, co-hosted by the China Meat Association and the World Meat Organization, the Henan Meat Association was honored as an “Outstanding Organization in China’s Meat Industry”.  This recognition is well-deserved and reflects their exemplary work.

Liu explained that the Henan Meat Association has over 400 member companies, carrying the historical responsibility of leading industry development.  “The higher-level associations and local governments provide us with significant support,” he said.  As consumer demand for meat quality and safety continues to grow, the meat industry must continuously innovate and upgrade to meet the ever-increasing market needs.  

Additionally, strengthening cooperation and communication among enterprises to achieve resource sharing and complementary advantages is crucial for promoting sustainable and healthy industry development.  This, Liu emphasized, is a key responsibility of their association.

Reflecting on the history of the industry, Liu noted that Henan’s meat industry has moved in tandem with the nation’s reform and opening-up policy, navigating economic cycles, overcoming challenges such as the SARS epidemic, African swine fever, and the COVID-19 pandemic, and withstanding the impact of global changes.  

Discussing the industry’s future, Liu candidly pointed out several pressing issues that need to be addressed.  For instance, logistics and infrastructure need improvement.  While the number of logistics companies in Henan has increased, there are still relatively few large-scale logistics enterprises.  The industry’s level of digitization remains low, transportation coverage is inadequate, and transportation and storage costs are high.

Furthermore, the integration of domestic and international trade is uneven.  Henan’s enterprises are primarily focused on the domestic market, with a relatively low proportion engaged in foreign trade.  Structural and quality improvements in the coordinated development of domestic and international trade still face certain challenges and constraints.  Domestically, the meat industry struggles with severe product homogeneity and intense competition.  The variety and quality of processed meat products and pre-prepared dishes need enhancement. On the international front, concepts for developing overseas markets, the design of export products, and actual operations have yet to become urgent priorities.

China-Canada Meat Trade

Regarding China-Canada meat trade, Liu shared that the Canada-China Meat Exporter Council (CCMEC) has maintained a longstanding cooperative relationship with Henan’s meat industry.  Henry Lin, also the founder of Shineway International Inc., has set up multiple distribution and branded processing divisions across China, including in Henan.  Over the years, Lin has frequently visited Henan and worked tirelessly to promote China-Canada meat trade. “We’ve become old friends,” Liu said, expressing his hope for overcoming obstacles and achieving mutual success in the China-Canada meat trade.