Sizzling Rally in Chinese Pork Prices Cools as Imports Rise

(Bloomberg) --

China’s scorching rally in pork prices, which pushed the country’s inflation to the highest level in seven years, is cooling.

The market has slumped about 16% this month from a record. Surging meat imports, higher production of poultry and eggs, and the prospect of more frequent inventory sales have helped to curb the advance.

Overseas pork purchases jumped almost 50% in the first 10 months of the year, while inbound beef shipments surged 55%. China will continue to release pork from state reserves while encouraging meat imports in order to ensure stable prices, the Ministry of Commerce said on Thursday.

China also plans to reinvigorate its own hog production, and aims to increase domestic supply to 80% of normal levels by the end of 2020, according to Yang Zhenhai, head of the animal husbandry bureau at the Ministry of Agriculture and Rural Affairs.

To contact the reporter on this story: James Poole in Singapore at jpoole4@bloomberg.net

To contact the editor responsible for this story: Anna Kitanaka at akitanaka@bloomberg.net

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