China | Pork Prices Remain High As China Launches Disease Eradication Effort...
China
Pork Prices Remain High As China Launches Disease Eradication Effort
Chinese pork prices, after remaining stable in the early part of June, have drifted upwards due to continued tight supplies and lingering disease concerns.
Four key hog-raising provinces have reportedly imposed restrictions on the export of live animals outside provincial borders, causing shortages and price rises in import dependent markets such as Guangdong, where on Monday (June 25) hog prices reached Renminbi (RMB) 13.80/kg live weight (US $82/cwt). In contrast, the lowest hog prices are in Sichuan province, a major hog-producing region, at RMB 9.2/kg live weight (US $55/cwt). In most parts of China, hog prices this week were in the range of RMB 12/kg live weight (US $71/cwt).
With a shortage of supply driving up consumer prices, Chinese meat imports are increasing. Through the first five months of this year, Chinese import statistics show pork imports increased 88 percent by volume compared to the same period last year to 145,195 mt. France was the leading supplier with 45 percent of the imported pork market share, followed by the United States with a 24 percent market share at 34,621 mt, a 50 percent increase from last year.
For poultry, Chinese import data shows imports, compared to last year, increased 42 percent through the first five months of this year to 329,526 mt. The United States has 65 percent of the import market share with 212,746 mt, an increase of 33 percent. Brazilian poultry imports have a 30 percent market share with 101,042 mt, an increase of 89 percent from last year.
However, prices for meat imports into China are starting to fall due to large inventories – especially of poultry – that importers have stockpiled.
On June 22, China announced new financial measures to support hog-raising, while providing direct support for citizens hit hard from recent pork price increases. The new measures establish an approximate US $850 million subsidy plan to provide insurance to hog raisers who experience losses from disease.
As part of the plan, subsidies of RMB 50 per head (US $6.50) will be provided to hog raisers for each sow retained and insured under the new program. In addition, the Chinese government plans to offer direct consumption subsidies of over US $61 million to the needy to help offset recent increases in pork and other foodstuff price rises. A special fund of more than US $36 million is being set aside to help cushion the price spike impact for college students. The central and provincial governments will share the costs of the new subsidy programs.
In other developments, mainland scientists claim the disease that has swept 10 provinces over the last year was caused by a new atypical and highly pathogenic strain of "blue ear" disease, or PRRS. The scientists, quoted in an article in the mainland journal, Public Library of Science, claim the disease infected 2 million animals and killed 400,000 during the recent outbreak. Previous government statements of mortality have ranged from 40,000 to 2 million head. On June 20, China's Ministry of Agriculture announced its launching of a nationwide vaccination campaign against PRRS. China claimed in May to have developed a vaccine for the new variant PRRS and is allocating US $36.5 million for the new vaccination campaign.
China
Pork Prices Remain High As China Launches Disease Eradication Effort
Chinese pork prices, after remaining stable in the early part of June, have drifted upwards due to continued tight supplies and lingering disease concerns.
Four key hog-raising provinces have reportedly imposed restrictions on the export of live animals outside provincial borders, causing shortages and price rises in import dependent markets such as Guangdong, where on Monday (June 25) hog prices reached Renminbi (RMB) 13.80/kg live weight (US $82/cwt). In contrast, the lowest hog prices are in Sichuan province, a major hog-producing region, at RMB 9.2/kg live weight (US $55/cwt). In most parts of China, hog prices this week were in the range of RMB 12/kg live weight (US $71/cwt).
With a shortage of supply driving up consumer prices, Chinese meat imports are increasing. Through the first five months of this year, Chinese import statistics show pork imports increased 88 percent by volume compared to the same period last year to 145,195 mt. France was the leading supplier with 45 percent of the imported pork market share, followed by the United States with a 24 percent market share at 34,621 mt, a 50 percent increase from last year.
For poultry, Chinese import data shows imports, compared to last year, increased 42 percent through the first five months of this year to 329,526 mt. The United States has 65 percent of the import market share with 212,746 mt, an increase of 33 percent. Brazilian poultry imports have a 30 percent market share with 101,042 mt, an increase of 89 percent from last year.
However, prices for meat imports into China are starting to fall due to large inventories – especially of poultry – that importers have stockpiled.
On June 22, China announced new financial measures to support hog-raising, while providing direct support for citizens hit hard from recent pork price increases. The new measures establish an approximate US $850 million subsidy plan to provide insurance to hog raisers who experience losses from disease.
As part of the plan, subsidies of RMB 50 per head (US $6.50) will be provided to hog raisers for each sow retained and insured under the new program. In addition, the Chinese government plans to offer direct consumption subsidies of over US $61 million to the needy to help offset recent increases in pork and other foodstuff price rises. A special fund of more than US $36 million is being set aside to help cushion the price spike impact for college students. The central and provincial governments will share the costs of the new subsidy programs.
In other developments, mainland scientists claim the disease that has swept 10 provinces over the last year was caused by a new atypical and highly pathogenic strain of "blue ear" disease, or PRRS. The scientists, quoted in an article in the mainland journal, Public Library of Science, claim the disease infected 2 million animals and killed 400,000 during the recent outbreak. Previous government statements of mortality have ranged from 40,000 to 2 million head. On June 20, China's Ministry of Agriculture announced its launching of a nationwide vaccination campaign against PRRS. China claimed in May to have developed a vaccine for the new variant PRRS and is allocating US $36.5 million for the new vaccination campaign.