China released more pork reserves Friday, state media said, after prices of the staple meat soared by almost a third, triggering inflation concerns.

AFP

SHANGHAI — China’s pork prices surged again in August, as the government dips into national reserves to stabilize costs and ensure supply in the world’s biggest consuming nation of the meat.

The country’s headline consumer price index (CPI) slowed in August to 2.5%, according to official data Friday, while producer inflation eased to its lowest level in 18 months at 2.3% — far lower than in the U.S., U.K. and other nations battling decades-high inflation rates.

But the price of pork, a staple in China that is used in a wide variety of dishes, has bucked the trend by surging in recent months with average prices jumping 22.5% on-year in August after a 20.2% jump in July as output reductions squeezed supply.

Pork has the heaviest weighting among foodstuffs in China’s CPI.

The fresh data came after the government this week said it was dipping into frozen pork reserves for the first time this year in a bid to rein in prices as China gears up for this weekend’s Mid-Autumn Festival and National Day on Oct. 1.

But Chinese pork traders warned that the release of more frozen supply may not help much.

“Most of our customers prefer fresh pork to frozen pork,” said one seller in Shanghai. “Customers these days are buying less than before the lockdown in April because household incomes are flat and pork prices are rising,” he added, referring to a two-month COVID-19 lockdown in China’s financial capital earlier this year.

The government intervention was likely to ease supply concerns only in the short term, said Deng Shaorui, an analyst at Huatai Securities.

“Pork prices are going to stay at high levels,” Deng was quoted as saying by the Shenzhen Securities Times on Friday. “As the weather cooled and pork consumption recovered seasonally, demand is expected to grow ahead of the Mid-Autumn Festival and National Day holidays.”

By CK TAN / Nikkei Asia

According to a report from Rabobank, China’s pork industry has begun a new cycle which will offer considerable growth potential and opportunities for local and global players. 

The new ‘upward’ cycle began in June 2022, say Rabobank, and is expected to run for less time than its previous cycles – five of which ran from January 2003 to June 2022, lasting for roughly three to four years each.

“We expect the new cycle to have less price volatility and a slightly shorter length compared to previous cycles,” says Chenjun Pan, senior analyst of animal protein at Rabobank. “Where cost leaders were the survivors from the previous cycle, in the longer term, winners will be those who are not only cost leaders but are also able to integrate supply chains.”

Rabobank research suggests that the newest cycle will see less price volatility and more government monitoring, with the main drivers and influencers of the cycle including policies, new industry structures, sustainability demands, and consumer trends.

By Meghan Taylor / Pig World

The Asian market has had a significant impact on the value of UK red meat exports in the first half of 2022. 

The latest data from HMRC shows that China remains the largest importer of UK pig meat, as export values reached nearly £88 million in the year to date. Furthermore, more than half of the 108,294 tonnes of UK pig meat exported to non-EU countries went to China, closely followed by the Philippines.

The Philippines has become the world’s third largest importer of UK pork, with the first six months of 2022 recording shipment values of £25.9m – an increase of 14.8% on figures for the same period last year.

Pig meat and beef shipments to Japan have also increased; pig meat shipments totalled nearly £3.2m, while beef exports have increased to £9.2m, from £2.8m, in the first six months of the year.

AHDB head of exports Jonathan Eckley said: “Asian markets continue to prove a hugely valuable market for the UK’s red meat sector, despite many challenges on the global stage this year. While volumes to some countries may be quite low, these markets are vital in addressing the issue of carcase balance and utilising cuts that are less popular here in the UK but attract significant value in the Far East.”

“We will continue to work with government and levy payers to open more new markets in the Far East and develop the region further, including attendance at trade shows to showcase the high-quality red meat we produce here in the UK.”

by Meghan Taylor / Pig World

AHDB will be in Singapore next week at a major international food and drink showcasing red meat and dairy to buyers from around the world.

The export team will be attending Food and Hotel Asia (FHA), which runs from Monday to Thursday, and attracts more than 40,000 trade delegates looking to supply restaurants, hotels, and the food service sector. The high-profile event is one of the largest and most important shows for exporters from the UK to showcase their products to buyers in the Southeast Asia region.

AHDB will be joined by five red meat and five dairy exporters from the UK, who are there to promote high quality beef, lamb and pork as well as a selection of cheese and baby formula.

Singapore is a significant high-end market for red meat exports, with shipments of pork, beef and lamb from the UK worth almost £2 million last year. It is also proving a valuable market for dairy, with £9.6 million worth of products from the UK exported to the country in 2021 – up 43 per cent on the previous year.

Susan Stewart, AHDB’s Senior Export Manager, said: “With its high gross domestic product and consumers who appreciate quality, Singapore is a hugely important market for our red meat exports.

“We are delighted to be returning to FHA for the first time since 2018, due to the pandemic. The show will provide an ideal platform for us to showcase pork, beef and lamb from the UK to potential buyers across Asia.”

by Alistair Driver / Pig World

Response comes after Chinese media reports imports could be suspended over foot-and-mouth disease concerns.

Australia and New Zealand have said shipments of meat to China are clearing as normal despite Chinese media reports of a ban on imports from both countries.

The Australian Financial Review newspaper said one Chinese media outlet had reported that agricultural imports, particularly meat, from Australia and New Zealand may be suspended due to concerns about foot-and-mouth disease.

“We are aware of rumours. The Australian Embassy in Beijing has been in contact with China Customs and no formal notification has been issued,” a spokesperson at the Australian agricultural department said in an emailed statement on Tuesday.

Steve Ainsworth, market access director at the New Zealand Ministry for Primary Industries, said exports were continuing as normal.

“We’ve made enquiries with Chinese authorities, including through our Embassy staff in China. These enquiries confirm that New Zealand products are continuing to be cleared through the border,” he said in a statement.

Neither Australia nor New Zealand has reported a case of foot-and-mouth disease among livestock. But both nations are taking extra biosecurity precautions after the animal virus was found in the popular Indonesian holiday destination of Bali.

AlJazeera / Reuters

The pig sector has urged UK retailers to follow Waitrose after it made a fresh pledge to pay farmers a fair price during the backlog crisis.

Waitrose said it would be extending its commitment to pay a ‘fair and sustainable’ minimum price for pork to all of its pig producers.

The pledge has been made as prices continue to plummet, alongside record costs of production and an on-farm backlog of approximately 200,000 pigs.

The sector has faced a range of challenges, including the loss of exports to the Chinese market for certain pig processors, global disruption to CO2 supplies, and crippling labour shortages.

Waitrose’s move extends its previous commitment announced in November 2021, which it agreed to review on a regular basis.

Announcing the price pledge, the retailer warned the pig sector was facing ‘the biggest crisis in a generation’, with ‘falling prices impacting financial sustainability’.

by FarmingUK

BEIJING/VILNIUS (Reuters) -China suspended imports of beef, dairy and beer from Lithuania this week, Lithuania’s veterinary control agency said on Thursday, amid a growing trade dispute over the Baltic nation’s relations with Taiwan.

China’s General Administration of Customs had informed the country it was halting the exports due to “lack of documentation”, the agency said in a statement.

It added that “this is first such notification we ever received, because the importing countries usually start by asking for any missing information”.

The Chinese agency said earlier on Thursday it had stopped imports of Lithuanian beef but gave no specific reason.

Relations frayed after Lithuania allowed Taiwan to open a de facto embassy in its capital Vilnius last year, angering Beijing which regards the democratically-ruled island as its own territory.

Lithuanian Foreign Minister Gabrielius Landsbergis said on Wednesday during a visit to Australia that nations seeking to use trade as a retaliatory measure must be reminded that “like-minded countries have tools and regulations that help withstand the coercion”.

Britain said on Monday it will join the United States and Australia in backing an EU trade case against China at the World Trade Organization over Beijing’s alleged trade curbs on Lithuania.

By Dominique Patton, Andrius Sytas / Reuters

The cloud of uncertainty hanging over the future of Scottish pig processing has been lifted following the purchase of Brechin abattoir by Browns Food Group.

The specialist pig slaughterhouse, which employs around 100 staff, has been owned by Quality Pork Ltd (QPL), in a close collaboration between the two farmer cooperatives, Scottish Pig Producers (SPP) and Scotlean, together with Pilgrim’s Pride UK.

However, Pilgrim’s, which has been the sole customer for the pigmeat processed at Brechin, gave notice last year that the arrangement was “unsustainable” following a downturn in the pig industry and the abattoir’s loss of a valuable Chinese export licence after an outbreak of Covid at the plant.

That licence has not been reinstated by China despite the plant getting the all-clear by public health authorities a few weeks after the outbreak, and it is generally believed this is related to ongoing political tensions between China and the UK.

In a statement Dumfriesshire-based Browns said: “This is an exciting new development for both companies which will ensure a promising future for Scottish pork while supporting the existing established markets.”

SPP chief executive Andy McGowan said the new arrangement would mean business as usual for Scottish pig farmers who are currently supplying the plant with around 4000 pigs per week.

“The announcement lifts the question marks surrounding the future of the site  and brings about simplicity,” he said.

By Nancy Nicolson / The Courier