Pork Prices Double, As Inflation Rises In China

An elderly man looks at a shop as a vendor waits for customers in Hong Kong on December 6, 2019. Noemi CASSANELLI / AFP

 

Consumer prices in China accelerated at their fastest pace for almost eight years in November as the African swine fever epidemic caused pork prices to more than double, data showed Tuesday.

The consumer price index (CPI) — a key gauge of retail inflation — came in at 4.5 percent for November, the National Bureau of Statistics (NBS) said, up from 3.8 percent in October and the highest rate since January 2012.

Analysts surveyed by Bloomberg News had forecast an increase of 4.3 percent on-year.

The widespread outbreak of swine fever since August 2018 has disrupted the pork supply in China, sending the prices of the staple meat up 110.2 percent last month November.

With China’s pig herd down by about 40 percent, authorities last week launched a plan to restore pork production to pre-swine fever levels by 2021.

The crisis has also sent prices of beef, lamb and eggs up as consumers switch to other sources of protein.

China’s consumer inflation target for 2019 is around three percent.

The producer price index (PPI) — an important barometer of the industrial sector that measures the cost of goods at the factory gate — showed prices fell 1.4 percent on-year in November.

The figure was slightly higher than the anticipated 1.5 percent decline in a Bloomberg News poll but nevertheless marked five consecutive months of decline, suggesting continued weakness in the world’s second-largest economy.

 

AFP

China To Lift Ban On Canadian Beef, Pork

In this file photo taken on June 26, 2019, Pigs are seen at the Meloporc farm in Saint-Thomas de Joliette, Quebec, Canada.  Sebastien St-Jean / AFP

 

China has agreed to resume imports of Canadian beef and pork, Prime Minister Justin Trudeau announced Tuesday, signalling a breakthrough in their tense relations.

“Good news for Canadian farmers today: Canadian pork and beef exports to China will resume,” Trudeau said in a tweet.

He thanked Canada’s new ambassador to China, Dominic Barton, who was appointed in September, and the country’s meat industry for working to reopen “this important market for our meat producers and their families.”

China had blocked beef and pork shipments from Canada in June, alleging contamination and bogus documents — claims disputed by Ottawa — amid an escalating diplomatic row.

China is Canada’s third-largest market for beef and its fifth-largest for pork, according to government data.

Trade and agriculture ministers Jim Carr and Marie-Claude Bibeau said in a statement that Canada’s foreign ministry and food inspection agency “engaged with China on this issue” over the past few months.

“We will continue to work closely with beef and pork producers and processors in the coming days and weeks to ensure successful resumption of trade,” the pair said in a joint statement.

China had asked Canada in June to investigate false veterinary health certificates attached to a batch of pork, while the official Xinhua news agency said customs officials in the eastern city of Nanjing had found ractopamine in pork shipments.

The feed additive, which boosts the growth of animals, is widely used in the United States but banned in the European Union and China.

The forgery allegations — which federal police were called in to investigate — came after relations between the two nations were strained by Canada’s arrest of a senior Chinese telecoms executive and China’s detention of two Canadian nationals in apparent retaliation.

Although no official link was made, the pork ban was seen as an escalation in response to Canada’s arrest in December of Huawei chief financial officer Meng Wanzhou on a US extradition request related to alleged Iran sanctions violations.

Cattlemen at the time were said to have been puzzled why they were included in the ban.

“Our long-standing trade relationship with China is very important to both sides and this represents an important step for both countries,” commented Canadian Meat Council President, Chris White.

He noted that the decision comes on the eve of an industry-led mission to China to work through any lingering customs and shipping issues.