China | Supply Declines While Prices Rise In Domestic Pork Market | As pork s...
China
Supply Declines While Prices Rise In Domestic Pork Market
As pork supply in China declines due to hog disease, pork prices continue to rise. USMEF is closely following the situation to determine what opportunities it could present for the U.S. pork industry.
China's Ministry of Agriculture reported approximately 18,000 hogs have died from Porcine Reproductive and Respiratory Syndrome and 45,000 have contracted disease in the first five months of this year.
China's chief central banker Zhou Xiaochuan was quoted this week as saying the rise in pork and egg prices along with the impact of rising food costs on the price index may force China to raise interest rates to curb inflation.
Pork price rises have moderated in urban areas over the last week with declines reported in some cities such as Shanghai. Analysts believe prices will stablize in the near future, but note they are still almost double the levels of a year ago.
China’s Ministry of Commerce (MOC) has reported it has supply agreements with large pork farms in each province and has an average of 50,000-100,000 live hogs in each province. Based on the agreements, MOC can use these hogs based on the country’s needs.
MOC also says it has signed agreements with meat enterprises to reserve frozen pork in cold storage. China claims to have about 20,000 tons in storage, but could begin to sell some off due to the continuing pork supply and price crisis.
China
Supply Declines While Prices Rise In Domestic Pork Market
As pork supply in China declines due to hog disease, pork prices continue to rise. USMEF is closely following the situation to determine what opportunities it could present for the U.S. pork industry.
China's Ministry of Agriculture reported approximately 18,000 hogs have died from Porcine Reproductive and Respiratory Syndrome and 45,000 have contracted disease in the first five months of this year.
China's chief central banker Zhou Xiaochuan was quoted this week as saying the rise in pork and egg prices along with the impact of rising food costs on the price index may force China to raise interest rates to curb inflation.
Pork price rises have moderated in urban areas over the last week with declines reported in some cities such as Shanghai. Analysts believe prices will stablize in the near future, but note they are still almost double the levels of a year ago.
China’s Ministry of Commerce (MOC) has reported it has supply agreements with large pork farms in each province and has an average of 50,000-100,000 live hogs in each province. Based on the agreements, MOC can use these hogs based on the country’s needs.
MOC also says it has signed agreements with meat enterprises to reserve frozen pork in cold storage. China claims to have about 20,000 tons in storage, but could begin to sell some off due to the continuing pork supply and price crisis.