Grupo KUO indicated that there is a certain risk of African Swine Fever entering America.
The productivity and profitability of any operation that involves animals such as pigs depends to a large extent on the ability to maintain health and control disease.
Otherwise, diseases can reduce the number of weaned piglets and hinder the growth of full-size pigs.
In addition, diseases can be spread from other infected pigs, by food in trucks where they are transported, by rodents or birds, by people visiting farms, or through the air.
Outbreaks of certain diseases have emerged in the past, including Swine Epidemic Diarrhea (PED), Pig Reproductive and Respiratory Syndrome (PRRS), a respiratory disease that commonly affects pigs, and you may experience Similar outbreaks in the future, leading to lower sales and a lack of consumer confidence.
In the case of FPA (African Swine Fever), to date no outbreak has been detected in America, while in the regions where it has been found there has been no slowdown in its spread.
Due to this disease, a fall in domestic production of more than 30% is estimated in China in recent years, generating an increase in pork imports and a rise in prices at the global level.
«Grupo KUO’s swine business has benefited from the increase in pork exports to China, but the risk that the virus will enter the American continent and specifically one of our farms continues to exist,» the company said as part of the risk factors of your operation.
Likewise, China is expected to recover its inventory level in the coming years.
The company added that several countries have applied strict preventive measures to reduce the risk of entry of this disease, and the KUO Group farms are free of infection, following strict biosecurity protocols, as well as continuous strengthening of the sanitary infrastructure.
However, in the event of an FPA outbreak on one of its farms, this could have significant effects on the results of the Pork business.