- Pork prices in China fell to their lowest levels since April 2022, Bloomberg data showed.
- Falling prices for China’s most popular protein are the latest warning sign that China is dealing with deflation.
- Beijing announced in November that it would buy pork for its strategic reserves, but that did not stop prices from falling.
Pork prices in China fell more than 6% last week to reach their lowest level since April 2022, according to Bloomberg data.
In its third purchasing cycle of the year, Beijing said in November that it was buying more pork for its strategic reserves, but that did not prevent prices from falling. At the same time, according to Bloomberg, authorities have asked farmers to sell pigs as soon as they are ready instead of storing them.
Falling pork prices are the latest indication that China has not yet escaped the fears surrounding it Deflation and fluctuating economic growth.
The country’s consumer price index fell 0.5% year-on-year in November, the National Bureau of Statistics reported on Saturday, a weaker-than-expected reading and the most significant decline since November 2020. An official from the People’s Bank of China pointed to easing pork prices as a major drag on consumer prices. .
Not long ago, as China prepared to ease pandemic lockdowns, global strategists were anticipating booming demand and an economic recovery. Until now Mountains of debt in the real estate sectorLow consumer optimism, unfavorable demographics, and more have all prevented the economy from seeing a surge in growth and activity post-Covid-19.
China’s Ministry of Agriculture said last week that pork consumption during the upcoming spring holiday season will remain weak, while pig production is expected to rise.