China’s pork prices are likely to climb next year due to the tight supply from the continuing spread of African swine fever (ASF) in China, reported Reuters.
“If the outbreak of African swine fever can’t be effectively controlled or even further spreads after the Chinese New Year, pork will be in short supply as farmers won’t be willing to replenish their herds,” Lu Yanchun, head of the prices monitoring center at the state planner, said in Caixin.
Lu said pork prices might see a jump in the summer or the second half of next year. China may begin purchasing pork for its state reserves to support farmers struggling to sell their pigs due to the outbreak.
China’s consumer prices may rise 2.1-2.2% in 2018 while producer prices could rise around 3.5%, Lu said. These increasing pork prices could push up consumer prices in 2019, while trade frictions with the U.S. could create downward pressure on domestic prices, Lu added.
China has reported more than 80 outbreaks of ASF since August. The highly contagious disease is still spreading, reaching to the northwestern province of Qinghai last week.