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USMEF Insight

Chinese Leadership Concerned Over Soaring Food Prices

USMEF reported a few weeks ago that pig disease mortalities were cited as a cause to the spring's run-up in pork prices, and that estimates of death losses over the past year run as high as 20 million head.

"In the last five days, the food price issue has overtaken the stock market as the hot news of the moment," said John Lam, USMEF China regional programs manager.

In some areas of China, pork prices have increased 20 percent in one month, and live hog prices have now reached 10-year highs. Compounded by an appreciating currency, which hit new highs last week, live Chinese hog prices in dollar terms are now at record levels.

Pork price increases, an important component of China's price index, are seen as fueling inflation, which in April reached 3 percent compared with 1.5 percent last year. Price spikes during the last few weeks have captured the attention of senior policy makers, leading to a number of local measures designed to calm fears of further price increases than to tackle the source of the problem, a shortage of live hogs.

To read more, see the latest USMEF Insight.

USMEF Insight

Chinese Leadership Concerned Over Soaring Food Prices

USMEF reported a few weeks ago that pig disease mortalities were cited as a cause to the spring's run-up in pork prices, and that estimates of death losses over the past year run as high as 20 million head.

"In the last five days, the food price issue has overtaken the stock market as the hot news of the moment," said John Lam, USMEF China regional programs manager.

In some areas of China, pork prices have increased 20 percent in one month, and live hog prices have now reached 10-year highs. Compounded by an appreciating currency, which hit new highs last week, live Chinese hog prices in dollar terms are now at record levels.

Pork price increases, an important component of China's price index, are seen as fueling inflation, which in April reached 3 percent compared with 1.5 percent last year. Price spikes during the last few weeks have captured the attention of senior policy makers, leading to a number of local measures designed to calm fears of further price increases than to tackle the source of the problem, a shortage of live hogs.

To read more, see the latest USMEF Insight.