Chinese wholesale pork prices fall slightly

Wednesday, 7 October 2020

With African Swine Fever now in parts of the German wild boar population, China no longer accepts German pork. China is an important market for German pork, and some of that product will now end up being sold in Europe. But what about the other end of the trade?

In the year to August, Chinese Customs’ import statistics show 3.72 million tonnes of pig meat were imported (including offal), of which 521,000 tonnes (14%) came from Germany. Demand is lower than usual in China because of higher prices and ASF related product availability. Estimates suggest that China is probably meeting around 10% of its needs with imported pig meat at the moment. This implies that Germany is meeting approximately 1.4% of Chinese national demand. This may not sound a lot, but agricultural markets can be very price sensitive to small changes in supply and demand.

 

It may be too early to say how prices in China will react, and in recent weeks wholesale pork prices have been falling. Pork in strategic store has been withdrawn in order to manage domestic supplies. Wholesale pork fell from over 48 yuan/kg (£5.50) in the summer to under to 45.5 yuan/kg (£5.20) at the end of September, according to China’s Ministry of Agriculture and Rural Affairs.

It remains to be seen how the Chinese market will balance; US pork producers are optimistic that they will be called upon to supply further volume.

Duncan Wyatt

Lead Analyst - Red Meat

Sign up for regular updates

Subscribe to receive pork market news straight to your inbox. Simply complete our online form.

Visit the Keep in touch page

While AHDB seeks to ensure that the information contained on this webpage is accurate at the time of publication, no warranty is given in respect of the information and data provided. You are responsible for how you use the information. To the maximum extent permitted by law, AHDB accepts no liability for loss, damage or injury howsoever caused or suffered (including that caused by negligence) directly or indirectly in relation to the information or data provided in this publication.

All intellectual property rights in the information and data on this webpage belong to or are licensed by AHDB. You are authorised to use such information for your internal business purposes only and you must not provide this information to any other third parties, including further publication of the information, or for commercial gain in any way whatsoever without the prior written permission of AHDB for each third party disclosure, publication or commercial arrangement. For more information, please see our Terms of Use and Privacy Notice or contact the Director of Corporate Affairs at info@ahdb.org.uk  © Agriculture and Horticulture Development Board. All rights reserved. 

Sectors:

Tags:

×