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Pork prices in China have increased 82 percent over the last year, presenting an unconventional potential threat to the monetary easing policy Beijing announced earlier this month. According to the Ministry of Agriculture and Rural Affairs of China, the growth rate of pork prices is accelerating: before this month's wild increase, the average price of pork jumped 19.3 percent year-on-year in July and 47.6 percent in August as the African swine flu outbreak further diminished pig stocks to only 39 percent of the inventory one year ago.
Pig meat is one of the most important foods in the daily diet of people living in China, accounting for 12 percent (about 368 kilocalories) of each person's daily energy intake, according to the Food and Agriculture Organization. To meet this consumption demand, China produces around 54 million tonnes of pork annually, which is five times more than the US, the second largest producer of pork globally. While Chinese domestic supply of pork relies primarily on domestic production, the swine flu will force China to turn to other suppliers, such as Spain, Germany, Canada, and (potentially, despite the trade war) the United States.
Rising pork prices have had a negligible effect on overall consumer price inflation to date, which remained stable at 2.8 percent in August. The threat to China's economy comes from the unabated and accelerated growth rate in pork prices in tandem with the central bank's implementation of new policy measures effective September 16 to support monetary easing.
The Agriculture Data Brief spans land use, machinery, and fertilizers to agricultural production, trade, and forecasts, providing you with the latest data and insights developed using recognized data sources to support your analysis.
Ask any American soybean farmer about current market conditions and US-China trade frictions will bubble up in the conversation. After the late June meeting between presidents Xi Jinping and Donald Trump in Osaka, Trump assured American farmers that trade talks would resume and that China would buy a tremendous amount of food and agricultural products very soon. Yet, in the month since, no significant purchases have been announced and no information is publicly available on large purchases in the offing, especially now, as the trade-war escalated again with the new 10-percent...
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Agricultural products cover the following commodity categories: Source: United Nations Conference on Trade and Development, Merchandise trade matrix, exports and imports, annual,
India is a superstar in fruits production, outstripping all other countries in 2017 in the production of bananas, mangos and guava, and papaya, and appearing in the top three for pineapple production. China is a major player in fruits as well. Did you know China is the global leader in apple production? It harvested about 41 million tonnes of apples in 2017. But production is not everything. Take a look at Chile, a country that produces apples far more productively than most others, including China, on a hectogrammes per hectare (hg/ha) basis. Look to China for grapes and...