September 24, 2020
China's pork prices trending down
The periodic releases of pork into the market from the central reserves, along with a series of accommodative policies implemented to support pig production, have tempered the prices of pork in China, Xinhua reports.
According to the report, even if the country's pork prices rose by 52.6% year-on-year in August, the rate of growth was considerably down by 33.1 percentage points from July.
As of mid-September, China has sold over 500,000 tonnes of frozen pork from its reserves to help cool high prices as it grapples with production shortfall following the outbreak of African swine fever. The lag effect of the last market cycle has also contributed to spikes in pork prices, as per report.
The report cited signs of improving production numbers as pig population rose for the seventh straight month in August, up 31.3% year-on-year. The population of sows alone increased for 11 consecutive months, up 37 percent from a year earlier, according to the Ministry of Agriculture and Rural Affairs (MARA).
The government's supportive policies have encouraged more pig-production businesses, as since January, more than 9,000 new pig farms were recorded to have ventured into production, and more than 11,200 large-scale pig farms have reopened, MARA said.
More balanced demand and supply
An agricultural official sees China's pork demand and supply to become more balanced in the fourth quarter, as pig production continues to recover.
Meanwhile, foreign producers have gravitated toward China to try to fill local demand and short supply in the world's largest pork market.
They include Europe, which is the world's second-largest pork production region and the second-largest pork exporter. China accounts for 52% of Europe's overall pork exports.
A number of US meat companies have also secured export licenses from Chinese authorities.
China and Hong Kong have accounted for 39% of US pork exports during the first half of this year, according to the US Meat Export Federation.
