Pork prices to stabilize in China: official

By Zhang Hui Source:Global Times Published: 2019/5/17 22:38:40

Pork prices will continue to soar following the impact of African swine fever, but China's consumer price index (CPI) will stabilize later in the year, a senior government official said on Friday.

National Development and Reform Commission (NDRC) spokesperson Meng Wei said at a press conference that soaring pork prices will not affect consumers due to the stable supply of poultry, aquaculture products and eggs. 

"Don't overestimate the impact of pork prices on the CPI," Meng said. The NDRC predicts that China's CPI will become stable later in the year, with inflation for the whole year "remaining within the expected target range," Meng said.

Meng made the remarks in response to speculations that the surge in the CPI is largely being driven by soaring pork prices.  

China's CPI, a main gauge of inflation, in April rose 2.5 percent from a year earlier. China's pork price at the start of May, 12.94 yuan per half kilogram, increased 14.6 percent from the same period last year, according to the NDRC.

Meng said that the NDRC would closely monitor pork prices to stabilize the supply and prices. 

Chinese Vice Premier Hu Chunhua on Thursday urged boosting hog production and guaranteeing the supply of pork, which has an irreplaceable role in maintaining the economic and social stability, the State Council's website said. Hu told a national teleconference that provinces and cities have to take measures to prevent pork prices' abnormal fluctuations and a shortage of supply. Hu stressed the need to strengthen safety supervision of pork products and better prevent the spread of the African swine fever epidemic. 

The outbreak has spread to all the mainland provincial-level regions since China reported its first case of the disease in August 2018.

Despite soaring prices, Chinese buyers dropped orders for 3,247 metric tons of US pork - the biggest cancelation in more than a year, Reuters reported Friday, citing data from the US Department of Agriculture.

Liu Xuezhi, an economist at Bank of Communications, told the Global Times that canceling US pork orders amid an escalating trade war will not affect China's stable pork supply or prices, as China has increased pork orders from other countries, including those in Europe, to stabilize the pork market along with other measures. 

Meanwhile, residents of the world's largest pork-consuming country have gradually reduced their reliance on pork in recent years, and have turned to beef and fish, Liu said.

Posted in: SOCIETY,MARKETS,BIZ FOCUS

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