December 18, 2020

Pork prices in China surge as import inspection tightens

Prices of pork in China have picked up due to high demand and tight supply associated with restrictions of imports.

According to data from China's commerce ministry, wholesale pork prices jumped 6% in the first week of December to ¥41.98 (US$6.43) per kilogramme compared to the previous week, the biggest gain this year. Prices climbed further at 0.8% in the week of December 13. If sustained, this has the potential to push up consumer prices, which slipped into deflation last month.

Zhu Zengyong, a researcher at the Chinese Academy of Agricultural Sciences, said the price surge is driven by the increased demand for cured and preserved meat, which is typical during winter ahead of the Lunar New Year. Also, due to concerns over the safety of imported meat, some restaurants are using more domestic pork, Zengyong added.

Following reports of COVID-19 traces on imported food and packaging, China has rolled out mass testing of all inbound frozen food shipments. This move resulted in severe congestion at ports and lengthy customs clearance times, leading to a prediction that China's meat imports could plunge as much as 30% next year.

According to domestic media reports, several cities, including Hubei's Xiangyang and Jiangsu's Wuxi, have asked local markets to remove imported meat from the shelves and seal them for testing.

China's local government pledged to carry out normal epidemic control work in accordance with the law and revoked a fine against 24 residents from Hubei's Huangzhou district.

The residents were initially penalised for purchasing imported cold storage food online.

 - Bloomberg