Pork price is likely to remain high in China as swine fever wipes out hog population – but that is music to WH Group’s ears
- Average prices may jump by 70 per cent to record levels in the second half of 2019, according to Chinese forecasts
- The prices of pork, fruits and vegetables – three key elements in the basket of goods for tracking inflation – soared in April at the fastest pace in six months
The price of pork is likely to remain high in China, the world’s largest consumer of the meat, as supplies may take months – and even years – to return to normal amid one of the worst outbreaks of African swine fever.
Pork prices may jump 70 per cent to record levels in the second half of 2019, according to Chinese government forecasts. Sustained high prices is music to the ears of the WH Group, the world’s largest producer of the meat and owner of Smithfield Foods of Virginia, whose first-quarter operating profit had taken a 10 per cent drop due to oversupply in the US hog market.
“It will be challenging to get the disease contained in a short time. China killed millions of pigs to contain the virus’ spread, so importers need to buy supplies from abroad to make up for it,” said Luis Chein group director at WH Group, during an interview with South China Morning Post. “We will increase imports of fresh port from US production base to China.”
China’s population of pigs will shrink by 134 million heads, or 20 per cent, this year, the US Department of Agriculture (USDA) said last month. That puts pressure on China to import the meat – estimated by the USDA to rise 41 per cent this year to 2.2 million tonnes – to make up for the shortfall.
China’s April pork imports jumped 24 per cent to 135,517 tonnes from last year, according to Chinese customs data published on May 23.
