[ad_1]
(Bloomberg) – Pork chops, chorizo and bratwurst could be more expensive in the coming months as pork prices soar because of the virus that is decimating the Chinese pork industry.
Meat processors around the world are selling more pork to China to compensate for shortages caused by an outbreak of African swine fever. The consequence is a tightening of supplies in the United States and Europe, pushing up prices. The trend is expected to continue as the disease spreads rapidly throughout China, the world's largest producer and consumer.
US 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 pork prices have risen 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.
"Some of the meat that was exported to the United States is now exported to China because it brings in more," Jens Munk Ebbesen, director of food safety and veterinary issues at the Danish Council of Agriculture, said by phone. and food.
The disease, which is already disrupting the meat industry in China, will have significant effects, ranging from rising food prices to growing 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.
China recently made its largest weekly purchase of US pork and the shares of JBS SA, the world's largest meat producer in terms of sales, rose 8 percent this week.
"African swine fever has caused an increase in global protein stocks, but it's not too late to buy," Morgan Stanley badysts, led by Rafael Shin, said this week. "We believe that the rally is just beginning and that the long-term impacts of the APP are still not 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 the producers," said Didier Delzescaux, director of the French Inaporc pork council.
China is not alone in fighting the spread of the disease. In Europe, it is feared that the virus, which was detected in wild boar in Belgium last year, could infect the national pigs of major exporters, such as France and Germany. France is building a fence for tens of kilometers near the border to contain the disease.
Contact the publisher Yang Ge ([email protected])
Sign up to read this article for free.
register
Source link
