Pork prices rise like foam in the Chinese virus

The barbecue, chorizo ​​and German sausage could cost more in the coming months as pork prices will skyrocket due to a virus that decimates the pork industry in China.

Meat processors around the world are selling more pork to China to offset the shortage caused by an outbreak of African swine fever. The consequence is a tightening of supply in the United States and Europe, which raises prices. The trend is expected to continue as the disease spreads rapidly throughout China, the world's largest producer and consumer.

In the United States, retail prices for boned hams reached $ 4.31 per pound in March, the highest level since 2015, according to data from the Department of Agriculture. In the European Union, wholesale prices for hogs increased by 16% in two months.

In China, the effect is more serious. Pork prices in the country could increase by more than 70% in the second half of this year, said a Ministry of Agriculture official this week.

Ham prices rise as pork disease in China hits pork markets

"Some of the meat that was previously going to the United States is now going to China because it's paying more," Jens Munk Ebbesen, director of food safety and veterinary affairs at the Danish Council, said on the phone. 39, agriculture and food.

The disease, which is already affecting the meat sector in China, will have significant effects, ranging from rising food prices to increased demand for other meats, such as chicken and beef. Pork production in the country could fall by 30% this year, according to a Rabobank International report.

The deadly African virus that kills Asian pigs: QuickTake

China recently made the largest weekly pork purchase in the US and shares of JBS SA, the world's largest meat producer in terms of sales, rebounded 8% this week.

"African swine fever has caused a rebound in protein reserves around the world, but it's not too late to buy," Morgan Stanley badysts led by Rafael Shin said in a report to their customers this week . "We believe that the rally is just beginning and that the long-term impacts of the FAA are not yet understood."

The additional demand is likely to benefit farmers, who can sell their hogs at higher prices. Producers can start raising more livestock, but the process takes time.

"It will be a good time for producers," said Didier Delzescaux, director of the French Pork Council, Inaporc.

China is not alone in fighting the spread of the disease. In Europe, it is feared that the virus, which was detected in wild pigs in Belgium last year, could infect domestic pigs of major exporters, such as France and Germany. France is building a fence that travels tens of kilometers near the border to contain the disease.