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China takes action as pork price soars

The big environmental stories in the Chinese media this week (30 Aug - 5 Sep)

African swine flu has pushed the price of pork in China beyond its 2016 record of 21 yuan ($3) per kilogram, leaving the government scrambling to stabilise the price ahead of national holidays. 

The size of China’s pig population has fallen by a third over the past year because of swine flu, according to Dutch firm Rabobank. Up to 200 million pigs may end up dead directly from the virus or culling.

The first outbreak in China occurred in Liaoning province in August 2018, and from there it has spread throughout the country. Between June and July this year the price of pork surged 27%, according to the State Statistical Bureau.

Pork accounts for over 60% of China’s meat consumption. The rise in its price could push up the price of other meat, such as chicken, as consumers look for alternatives. 

Pork demand is expected to surge further due to the Mid-Autumn festival (13 September) and the 70th anniversary of the founding of the People’s Republic of China (1 October). To slow the price rise, central and local governments are easing restrictions on the supply side. Other interventions include financial support to pig farms, releasing frozen pork from a “strategic pork reserve”, and government-led price intervention. For example, people in the southwestern city of Nanning will from September be able to buy up to 1 kilogramme of pork per day at a discount price. 

China is the world’s largest pork producer and consumer. Imports from Europe increased 54% in the first half of the year. Rabobank estimates that to meet the deficit caused by swine flu this year, China would need to increase global imports by as much as 1.5 million metric tons – to a total of 4 million tonnes. 

Read our piece on the need to reform meat production, which swine flu highlights, and our recent history of pigs in China.

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