Problem for pork in Year of the Pig
The Year of Pig has not been easy on the pigs. Due to outbreaks of African swine fever (ASF), pork meat is in short supply but demand is high. The virus is not harmful to humans, but heavy on the pigs and the pork industry. More than 1 million pigs have been slaughtered to contain the situation in China.
Nanning, capital of the Guangxi Zhuang Autonomous Region and its largest city, initiated temporary price interventions on September 2. In the 10 major markets, pork is sold in limited quantities at limited prices, which are 10 percent less than the market average of the previous 10 days.
Four types of pork products are offered: lean meat, pork belly, leg meat and ribs. Each customer can only buy 1 kilo of the low-priced pork a day. In July, Guangxi saw the highest increase in pork prices of 54.5 percent.
In Shanghai, a small tray of regular sliced pork (240 grams and not expensive breeds) at Freshippo, supermarket chain under tech giant Alibaba, that can make a typical stirfry dish for two is now 16.8 yuan (US$2.34). In July, it was 11.8 yuan.
The shortage of pork is an issue that can cause panic. China is the world’s largest producer and consumer of pork, accounting for more than half of global market share. In 2018, China produced 54 million tons of pork. This is projected to decrease to 38 million tons this year, according to broker and consultancy INTL FCStone.
Pork prices have been increasing since March, but at a much faster speed since July. The year-on-year increase has surpassed 65 percent.
Pork makes up 60 percent of China’s total meat consumption, but it takes 13 months to raise pigs from pregnancy until they are
ready to sell. The waves of ASF virus have caused great losses for pig farmers, both in money and confidence.
China has taken multiple measures to solve the pork crisis. On August 21, a State Council executive meeting presided over by Premier Li Keqiang proposed five measures to stabilize pig production and ensure supplies following the effects of the disease.
Subsidies to farms which have culled pigs will be dispensed more timely, and major pig producers and farm owners will receive more support in expanding their herds, according to a statement released after the meeting.
Local authorities should promptly remove bans and limits on raising pigs except those stipulated in laws and regulations, and largescale farming should be promoted.
On September 2, the Ministry of Transport issued a notice to reinstate a green channel policy to assist the transport of pork. Between September 1 this year and June 30 next year, tolls are waived for vehicles transporting piglings and frozen pork.
With such supporting policies, pig farmers are being encouraged to increase production with the hope of supplying the market in a few months to stabilize prices.
China is also increasing imports to ease the shortage. It is estimated that China will import 3.3 million tons of pork this year and 4.2 million tons in 2020, compared with 2.1 million tons in 2018.
The price of imported pork falls between regular pork and meat from the famous Chinese breeds such as the black pig.
With no vaccination or cure for the ASF