China's National Bureau of Statistics (NBS) said the country's 2020 domestic pork output declined 3.3% to 41.13 million tonnes after dropping 21% in 2019, less than what analysts expected as China steadily recovers from an African swine fever outbreak that decimated its swine herd, Reuters reported.
Hog prices consolidated lower, after rallying 25% in seven weeks. Slaughterhouses, which were suffering losses due to the recent hog price rally, were reluctant to increase stockpiles. Additionally, the government releases state pork reserves in efforts to tame food inflation.
Growing demand for pork, resulting from increased consumption during winter and expanding output of cured meat products, drove hog prices to rise further. Slaughter volumes in major wholesale centres expanded 3.3% to 7,776 tonnes while pork carcass prices rose by 1.6% to RMB43.04/kg.