Pork: China's consumption is rising and prices are rising again

The Chinese government assumes that the supply and production of pork in the country will remain under pressure in Q2 / 20.
Because of African swine fever (ASF), production in China remains too low and uncertainties about import options keep the supply low. Meanwhile, the domestic demand for pork is improving again.
In October 2019, meat prices reached their provisional high with the equivalent of more than € 7 / kg. That was almost three times the comparison a year ago. Prices fell until February because production increased and demand fell due to high prices.
In March the pig population increased by 2.8% compared to the previous month, and 7.3% more piglets were raised. Despite this good news, the supply falls short of demand. In Q1 / 20, pig production in China decreased by 29% compared to the previous year. That was the sixth consecutive quarter with negative numbers.
The Chinese government has taken various measures to increase the supply of pork and to fill the huge protein deficit.However, the outbreak of the coronavirus partially wiped out the effort. So far, 2.4 million people have been infected worldwide and 169,000 have died of and with the virus.
The supply should actually improve by July, but better consumer demand should drive up prices again in Q2 / 20, according to the Ministry of Agriculture.
The government in Beijing is promoting the construction of modern and large mast systems with high pressure and is aiming to reach the level of production before the ASF crisis by the end of 2020.