China Pork Prices Below Cost of Production

The price of pork in China has dropped below the cost of production. New data reported by china-based CXLive shows the price of lean pork meat in northeastern China and Inner Mongolia, two of the top pork-producing regions, were at 8.5 yuan, $1.25 U.S., and 7.5 yuan per kilogram, respectively, as of Tuesday.

On average, a kilogram of pork in China costs 12.5 yuan to 13 yuan to produce. Prices have been plummeting since farmers in China rushed their animals to market last fall amid the African swine fever outbreak.

By mid-December, the price of pork in China fell an estimated 31 percent. Farmers are not restocking to full capacity currently, as the threat of the disease continues, which is likely to contribute soon to a sharp increase in pork prices later this year once supplies dwindle.

What could be a future opening for U.S. pork, however, is currently blocked in the tit-for-tat trade war between the U.S. and China.

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