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Article: Pork Prices in China heading upwards as supplies tighten
16 July 2020
Pork prices are rising in China just as new Covid-19 measures
threaten to disrupt the flow of imports from some key
suppliers.
Wholesale prices have risen for six consecutive weeks and now
stand at their highest levels since early April.
Figures from the Commerce Ministry show wholesale prices
reaching CNY46.3 per kg in the first week of July - up 4% on the
previous week. Prices have now risen by more than 20% since the
middle of May.
Agriculture Ministry figures, which are collated slightly
differently, show prices hitting CNY47.37 per kg last week - a rise
of 7% on the previous week and almost double the amount at this
time last year.
Chinese pork prices surged to record levels in 2019 as the
spread of African Swine Fever (ASF) wiped out tens of millions of
pigs. Quotes began to ease earlier this year amid optimism that the
hog herd would steadily recover. But farmers are now reported to
holding out for higher prices as it becomes clear that supplies
still fall well short of demand.
Beijing is this week releasing a further 20,000 tonnes of frozen
pork from state reserves in a bid to dampen down food price
inflation.
China has also been importing record volumes of pork to fill
gaps in domestic supplies. Pigmeat imports (excluding offal) in the
first five months of 2020 stood at 1.683 million tonnes, a rise of
156% on the same period last year.
Developments over the past two weeks have raised doubts over
future trade flows however as China has suspended purchases from
several overseas plants due to concerns over Covid-19. Beijing has
tested thousands of imported meat consignments to see if they show
any trace of the disease. All these tests have so far come back
negative.
With farmers and large-scale producers taking a bullish view of
future price prospects, many are opting to hold on to their animals
- putting upward pressure on prices for live pigs.
The average price of live pigs nationwide stood at CNY34.56 per
kg in the first week of July - up 3.6% from the previous week and
106.1% up from the same period last year.
The national average piglet price is CNY100.16/kg, an increase
of 1.9% from the previous week and an increase of 141.5%
year-on-year.
