Skip to main content

Insurance Agents Assist Dead-Pig Trade

Since 2014, Chinese police have broken up networks of diseased pig-traders and butchers in eleven provinces, arrested 110 people, and seized 1 million kg of pork and 48,000 kg of "gutter oil." Among the miscreants are insurance agents who tip off traders on where to find dead pigs they sell at a discount to butchers who then sell the meat to consumers.

Dead pigs on the back of a truck
 
Jiangxi Province's Gao'an Prefecture, one of the top 100 pig-selling counties, a CCTV reporter claimed to have discovered that trade in dead pigs was an "open secret" and many of them were infected with type-A foot and mouth disease (often called "disease number 5" in China). The meat from the pigs was reportedly sold to seven provinces, including Guangdong, Hunan, Chongqing, Henan, Anhui, Jiangsu, and Shandong.

According to the report, a taxi driver named Mr. Chen has a secret identity as a dead pig trader. He allegedly got phone calls from a friend who is an insurance adjuster who tipped him off on where to find dead pigs to buy. The insurance worker reportedly got a 5 percent commission.

Individual arrested in dead-pig-trading sting spills the beans.
Traders got info from insurance adjusters on where to buy dead pigs.

China began an insurance program for sows in 2007. In recent years it has been extended to finishing hogs. About two-thirds of the premium is subsidized by various levels of government. When pigs die, an insurance adjuster comes to verify that pigs died and takes a picture. Other insurance workers say the insurance adjuster could withhold photographs from the insurance company if he wanted to report information to traders who come to buy the dead pigs.

This is not new.

Three years earlier, a similar case was exposed in Hunan Province where the director of a veterinary station informed traders where they could buy dead pigs.

In 2013, Jiangxi Province allocated 67 million yuan to subsidize disposal of dead pigs to address this problem.

Officials and regulators place their loyalty to friends, relatives, and business partners above their responsibility to their organization or their responsibility to protect public health.

Comments

Popular posts from this blog

Xi Jinping's Doctoral Thesis

Xi Jinping is the vice president and presumed next president of China but little is known about him. In this post the dimsums blog offers its contribution to the genre of Xi Jinping-ology by conveying Xi's decade-old views on agricultural markets. Ten years ago Xi Jinping wrote a thesis, "Tentative Study of Agricultural Marketization" (中国农村市场化研究) for a Doctor of Law degree at Tsinghua University in Beijing, a top breeding-ground for Chinese officials. The dimsums blogger has spent several hours poring over the 200-plus page tome to see what it reveals about Dr. Xi. The thesis is remarkably close to what China has been doing lately in agricultural policy, suggesting that Xi (or the person who actually wrote the thesis) has a major say in policy or is at least in agreement with what's being done. There is nothing adventurous, controversial (or insightful) in the thesis. It seems to be the work of a wonkish technocrat who is not prone to talk out of turn or wander from...

China's 2024 Ag Imports Shrank in Value

China's agricultural imports declined 7.9 percent during 2024 to reach $215 billion, according to data posted on the customs administration website. The 2024 value was lower than each of the 3 preceding years. Agricultural exports were up 4.1 percent to reach $103 billion. Source: Data from China Customs Administration December reports. The top two agricultural import categories by value both declined. Soybeans ($52.75 billion in 2024) fell 10.9 percent, and meat ($23.38 billion) fell 15.1 percent. Cereal grain imports ($15 billion) were down 28 percent and fish & shellfish imports ($18.5 billion) were down 6.2 percent. Edible oils imports ($10.6 billion) were down 17.8 percent. Fruit, rubber, cotton and wool and beverage imports were up for the year. The decline in value of imports partly reflected a decline in prices. Customs reported that the volume of soybean imports for calendar year 2024 reached a record 105 million metric tons, up 5.6 million metric tons from the previou...

Feed Boom & Cratering Grain Imports; China Leaves Us Guessing

In the first half of 2025 China increased its meat and egg production by a combined 1.58 million metric tons (mmt) from a year earlier, a moderate increase of 2.5%. Meanwhile, animal feed output during H1 2025 compiled from feed industry association reports increased by 14.5 mmt (+10 percent) from a year ago. China's 14.5-mmt increase feed output growth outpaced the 1.58-mmt growth in meat production by a ratio of 9:1. It's hard to make sense of these inconsistent figures.  [note: The June 2025 feed industry association report has a 7.7% yoy growth rate for feed output which is inconsistent with the 10.1% growth shown here calculated by comparing data from monthly reports issued last year. Growth rates for complete feed were 8.1%, concentrates -1.5%; additives 6.9%. These inconsistencies are common in the feed industry association reports, a reason for doubting the accuracy of this data.] There is no boom in demand for feed ingredients to fuel a huge increase in feed production...