2019 an ‘unprecedented year’ on pork price fluctuations in China – Goodman
Pork prices have seen dramatic fluctuations over the course of 2019 in China, due to the impact of African swine fever (ASF) on the Asian country, according to managing director of ABP International Mark Goodman, who gave his thoughts on the matter.
Speaking to AgriLand, Goodman reflected on the past year, noting an easing of pork price in recent times due to the release of emergency stocks of pigmeat by the Chinese government.Also Read: Irish beef needs to ‘proceed with extreme caution’ in turbulent Chinese market – Goodman
Commenting on the pork situation following a crazy year on a now global level, the managing director said:
“2019 has been an unprecedented year in terms of protein demand and price fluctuations in China. The primary driver has of course been ASF and its impact on the Chinese pig herd.
At the end of 2018, China’s pig herd stood at around 600 million head; since then, it has been reduced by approximately 35% due to a massive cull.
Putting this into perspective, he noted that the Chinese cull represents “a reduction of approximately 20% of the world’s pig herd”.
“The price of live pigs in China rose in 2019 from 21rmb/kg (€2.69/kg) to a high of 50rmb/kg (€6.41/kg).
“However, the Chinese government has now stepped in and is beginning to release emergency stocks on the market, cooling prices back to 35rmb/kg (€4.48/kg),” Goodman explained.