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Chinese wholesale pork prices fall despite decision to ban German imports

Iain HoeyBy Iain HoeyOctober 8, 20202 Mins Read
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Despite China now no longer accepting German pork after African Swine Fever has been detected in Germany’s pig herd, the Asian country’s wholesale pork prices have fallen according to the latest numbers from  the Chinese Ministry of Agriculture.

Estimates indicate that China is currently meeting around 10% of its demand for pork with imports, 1.4% of which was being sourced from Germany. However, demand in the country has fallen due to higher prices relating to ASF and pork availability.

Duncan Wyatt, lead analyst for red meat at AHDB says that despite Germany fulfilling only a small fraction of China’s demand for pork that 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recent weeks wholesale pork prices have been falling,” says Wyatt, pointing out that pork in strategic store has been withdrawn in order to manage domestic supplies.

A ccording to China’s Ministry of Agriculture and Rural Affairs, 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.

Wyatt added: “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.”

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Iain Hoey

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