May 24, 2011

Due to a shortage of supply in China, pork exports from the US to China would keep increasing until after this summer, or even till next year, according to a recent report by the USDA (Beijing).

In the eight months to February, the US had exported 192,500 tonnes of pork to Mainland China, while US pork exports to Hong Kong hit 63,600 tonnes, most of which was later transported to the mainland, the report showed.

In March 2010, China agreed to resume pork imports from the US, after a ban was put in place following an H1N1 virus scare.

Meanwhile, China's hog and pork prices are rising, a trend expected to continue in the near future.

During the week to May 5, hog prices rose 3.2% from a week earlier to RMB15.50 (US$2.38)/kg. Piglets were sold at RMB31.60 (US$4.86)/kg on average in the week, up 3.4% on-week or 87% on-year, with the price hitting a three-year high, a research report said.

Given pork price increases in May, which is traditionally the off-season for pork consumption, a new round of price hikes for meat is in the offing, it added.

A shortage of pork supply can be mostly attributed to the lack of incentive to raise hogs by farmers, after slackened demand in recent years as well as rising fodder costs, according to analysts.

Food accounts for 31% of China's CPI basket. Consumer price inflation hit 5.3% in April, compared to the government's target of 4% for the full year.