September 25, 2020

 

Pork rib prices in China increase following German pork imports ban

 

Prices for China's pork rib dishes in restaurants have gone up after China banned German pork imports, affecting restaurants trying to recover from the impact of COVID-19, Reuters reported.

 

While pork ribs in China are very popular, restaurants usually rely on imports that are usually 10 times cheaper than domestic supplies.

 

Germany was one of China's biggest pork rib suppliers until China imposed a ban on German pork imports following the discovery of African swine fever (ASF) there.

 

Restaurant owners said frozen pork ribs prices have increased after the ban, eating into profits even after customers have returned to normal levels.

 

China's domestic pork prices have risen to record levels following its own ASF outbreaks, which decimated local herds.

 

To offset dwindling domestic pork stocks, China has increased its imports of the meat by 134%.

 

According to a manager of an Inner Mongolia-based ribs restaurant chain, imported pork ribs prices have doubled to CNY 11 (~US$1.62; CNY 1 = US$0.15) per kg in May compared to last year. The restaurant uses half a tonne of ribs weekly for its CNY 29 (~US$4.25) pork ribs set meal. Half of their pork ribs are sourced from Germany, with the rest from Denmark, Spain, or other countries.

 

The manager said prices have gone up to CNY 14 (~US 2.05) this week, and possibly CNY 16 (~US2.35) next week, adding that this has resulted in an additional CNY 300 (~US$44) in costs daily or the cost of three extra staff.

 

Liu Xiaofeng, managing director at consultancy Meat International Group, said imported ribs have gone up in price higher than other cuts because Germany is a major exporter.

 

He said Germany exported close to 20,000 tonnes of spare ribs to China. Prices of spare ribs last week have increased to CNY 44 (~US6.45) from CNY 38 (~US5.57).

 

While the United States is China's biggest pork supplier, it consumes more pork ribs domestically compared to Europe.

 

The higher pork rib prices will benefit Spain, Denmark and the Netherlands.

 

Even though prices for pork from China are steadily decreasing, prices are still higher compared to Europe. Domestic back ribs cost CNY 52 (~US$7.63) per kg last week.

 

-      Reuters