It’s time for another round of “Market
Trends,” where we discuss North Korea’s economic situation. Last time, we took
a look at the livestock industry, which is gaining awareness as a stable source
of income in the North. For our show today, we’ll be taking a closer look at
the breeding process of sows, or mother pigs with the help of reporter Seol
Song Ah from Daily NK. Ms. Seol, would you first please explain for us what
exactly a sow is?
Sure, a sow is a female pig that is raised
for the specific purpose of producing offspring. They are also sometimes
referred to as breed pigs. The two terms seem similar at first glance, but they
are used differently. In any case, these two types of pigs are responsible for
invigorating the private pig farming industry. As recently as the 80s, pigs
were raised without consideration for breed. At that time there weren’t many
people raising pigs, so there really wasn’t a market for them nor was there
much competition.
But then in the late 90s to early 2000s, as
the livestock market began to grow, pig breeding developed into a competitive
industry. People were financially able to buy more piglets, inciting a surge in sales and leading people to develop a taste for more expensive,
high-quality breeds. Most importantly, as the market for sows moved from the
countryside and into the city, it developed into a highly specialized industry.
This is all very interesting. Here in the
South, veterinarians participate directly in the breeding process. In the
North, where we know those type of technical skills are hard to come by,
breeding high-quality livestock must be quite difficult.
It sure is. It’s not like you can improve
the offspring of a sow simply by feeding it well. Those who want to become sow
breeders must start with choosing a high-quality boar. And while it’s nice to
have a sow that grows quickly, the more important thing is a producing a
bountiful litter. During the 90s, when there was little competition in the sow
market, it was common for the average sow to give birth to around five to seven
piglets. Nowadays, however, a litter of that size would be seen as a complete
failure.
Therefore, sow breeders go to the state-run
pig ranches and livestock companies and purchase prized sperm. Recently, I’ve heard that select boar breeds are being brought
in from overseas per a Party directive. Once they mature their sperm is supplied to ranches as part of the state’s
livestock initiative. On paper, it’s a state-run process but in practice the
system itself and logistics involved are actually part of the fledgling market economy.
Also, the boar sperm is sold at market value.
When a sow breeder purchases sperm, a veterinarian, who has majored in
stockbreeding, visits the site and artificially inseminates the sow via
syringe. After three rounds or so of fertilization, money is exchanged once
ovulation in the sow is confirmed.
What’s the general goal for litter size?
The standard expectation is around 12-15
offspring. The cost of the feed the sow consumed while pregnant is covered by
the first 3-4 piglets, while the cost of special nutritive feed for the sow
post-pregnancy is covered by a single piglet sold after the weaning period. So
that leaves seven pigs to be sold on the market, which ends up being a
considerable sum. On average, a sow only takes four months to produce
offspring, so a breeder with 2 sows reaps 14 piglets worth of profit every
quarter.
But the whole process is more difficult
than it sounds. For the four months the sow is pregnant, the breeder must give
it more love and attention than even his or her own daughter. The breeder must
thoroughly block humidity from building in the pigsty and bathe the sow daily
in the summer to prevent heat rash. It is imperative to be vigilant about
checking for fever–feeling below the pig’s ear is typically the method of
choice–and treating diarrhea with the proper medication, which is imported and
expensive.
This level of devotion makes for quite the
day when the sow gives birth. The breeder stays up all night, patting the
mother on the stomach to ease her difficulty as much as possible.
It’s literally occupational war. Regardless
of whether Kim Jong Un provides for the people or not, North Koreans are bootstrapping methods for their survival. Would you say that artificial insemination is
becoming universalized in this new industry?
No, that’s not the case. As I discussed previously, pig breeding is developing as a privatized
industry in the North. Therefore, it’s difficult for the state-run livestock
artificial insemination businesses to compete. Pig insemination is on the rise
as a new, popular type of trade. It’s not sperm that these traders buy from the
state-run companies, but rather superior-breed piglets. They raise two boars
and start a specialty business, basically hiring them out to sow breeders.
Selling the sperm directly is troublesome; problems can arise when the sperm is
improperly stored or ovulation doesn’t occur during the insemination process.
However, the pig insemination domain is
different. Because they take their boars directly to the sow and breed them,
the potential for failure is almost non-existent. Also, the price is not
settled on the spot. Typically, each individual piglet is sold at the market
price for insemination. It’s great for both sides: the sow breeder can purchase
insemination on credit, while the boar breeder earns a much larger profit four
months later.
So, a single pig earns at least 100,000 KPW
or 20 kg of rice on the market, while artificial insemination or direct
breeding goes for about 5 kg of rice. There’s a popular phrase in North Korea,
“the roaming pig,” which refers to the new industry’s earning power. In fact, a lot of the most entrepreneurial minds in the field even place a sign on the roof of their home to advertise
their services. They say that buying on credit is the most effective way to get
customers to trust in the new industry; after all, it’s both a form of
investment and a market strategy.
Essentially, what started as sow breeding
seems to be flourishing on a whole new level as the pig insemination trade.
We’ll close today’s “Market Trends” with a run-down of prices on the
jangmadang.
The price of 1 kg of rice is 5,120 KPW in
Pyongyang, 5,050 KPW in Sinuiju, and Hyesan. The cost of 1 kg of corn kernels
was 2,050 KPW in Pyongyang, 2,100 KPW in Sinuiju, and 2,150 KPW in Hyesan.
The USD was trading at 8,100 KPW in
Pyongyang, 8,250 KPW in Sinuiju, and 8,100 KPW in Hyesan. The Renminbi was
trading at 1,300 KPW in Pyongyang, 1,290 KPW Sinuiju, and 1,280 KPW in Hyesan –
mostly similar to last week.
Moving along, 1 kg of pork was selling at
13,500 KPW in Pyongyang, 13,000 KPW in Sinuiju, and 12,800 KPW in Hyesan also
similar with last week’s prices. Gasoline was trading at 10,550 KPW per kg in
Pyongyang, 10,500 KPW in Sinuiju, and 10,600 KPW in Hyesan. Finally, 1 kg of
diesel fuel was selling at 6,450 KPW in Pyongyang, 6,500 KPW in Sinuiju, and
6,500 KPW in Hyesan. *
*This segment reflects market conditions from April 25-May 6.
