December 4, 2019
More pork consumed in China with prices rebounding
Analysts say pork prices are set to be on an uptrend once more with pork consumption increasing traditionally from winter to Chinese New Year, reported Reuters.
Pork prices have become especially volatile in November since hitting a record high 52 RMB (~US$7.39; 1 RMB. = US$0.14) per kilogram in October, three times more compared to the same period a year before due to the African swine fever (ASF) outbreak causing declining swine supplies in the country.
In November, prices dropped 20% with more frozen pork supplies entering the market and consumers shying away from the expensive meat.
According to the Ministry of Agriculture and Rural Affairs' data, pork prices increased to 42.53 RMB (US$6.04) per kg on December 2, 2019, up 1.1% compared to Friday the week prior.
Shu Anli, analyst at China-America Commodity Data Analytics said there is still a big gap in swine supplies, with pork consumption on the rise as temperatures in the country have dropped.
China has kept prices in check after its consumer price index (CPI) went up 3.8% in October, the highest in close to eight years. Analysts said the government has inspected cold storage facilities and released pork meat from state reserves.
Meng Jinhui, analyst with Shengda Futures said the government will destroy any meat infected with ASF in slaughterhouses on November 4. In response, cold storage facilities quickly sold their meat supplies, resulting in a price drop.
To halt the spread of ASF in the country, six provinces in China including Guangdong and Guangxi have banned the import of live swine from other provinces from November 30.
Farmers concerned that the ban would cause lower demand for pork, sent their swine herds to slaughterhouses before the ban was enforced, which dropped prices.
Yao Guiling, agriculture analyst at China Securities Futures said swine supplies have become more limited, and live swine ready for slaughter are much less.
With Chinese New Year in January, pork prices are expected to rise from now until then with consumption of the meat steadily increasing
Zhao Yuelei, analyst with agribusiness research firm Cofeed said pork consumption will increase further as consumers from China's southern region will prepare preserved pork products for winter.
Hu Chunhua, China's Vice Premier called for the country to recover its swine production and stabilise the supply of pork before the holidays (/contents/12-03-2019/ede38ec1-8734-41df-b7c7-81ed380a6ab3-0001.html).