Pork prices will remain high this year, but will not soar, a spokesperson for the Ministry of Commerce (MOC) said on Thursday [7 April 2016]. The average wholesale pork price hit 25.34 yuan (3.92 U.S. dollars) per kg last week, up 0.4 percent from the previous week to the highest point since October 2011, Shen Danyang told a briefing, citing a nationwide survey conducted by the ministry. Pork prices have been rising for about a year after almost three years of falls, according to the MOC…Full Article: ECNS.cn Apr 2016

Economists applauded. Housewives frowned. Pork-the staple meat of most Chinese families-led the latest round of inflation in the country. But, despite the fact that the price of pork in China is likely to stay high this year, a sharp price hike is unlikely, said Ma Youxiang, head of the department of livestock production at the Ministry of Agriculture, on Thursday. At a time when many industrial producers are suffering from low demand and stagnant prices, pork prices rose by as much as 35.2 percent year-on-year in March, leading to inflated prices for a range of other food items…Full Article: ECNS.cn Apr 2016

Key Points

  • In November 2015, China enacted water pollution control initiatives across 10 provinces which reportedly impacted the country’s pork industry and helped cause pig farm closures (~20 million hogs dropped out of the market).
  • In February 2016, China’s food prices (~1/3 of Consumer Price Index) increased 7.3% (year-on-year), while non-food prices increased 1%.

ChinaAg Comments

  • On 23 March 2016, Chinese lean hog prices totaled CNY 19.7 (US$3.06) per kg, a CNY 0.29 price increase from the day before. Chinese lean pork prices increased from approximately CNY 30 per kg in January 2016, to roughly CNY 32 per kg in February 2016, and to more than CNY 34 per kg in March 2016.
  • In March 2016, Beijing’s Xinfadi wholesale market noted a nearly 60% increase in pork prices versus the previous year.
  • From 2013 to 2015, average pork prices in China increased from CNY 25.86 per kg to CNY 26.73 per kg.

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