China and the U.S. have one thing in common – both are struggling with inflation.
According to new data from the National Bureau of Statistics of China, meat prices through August were up 10.1% year over year, while pork prices rose 22.4%; meanwhile, the growth rate for meat was down 13.4%, and for pork, it was down 22.8%.
The Guardian reported that the rising prices have forced China's government to tap its national frozen reserves to handle holiday demand.
A volatile market
China's surging prices confirm earlier reports from the summer, which speculated that rising production could negatively impact the country's meat markets. Reports also pointed to various measures the Chinese government was taking to present inflation, including asking hog farmers to release more pigs into the market.
All the while, China's imports of U.S. pork have fallen considerably from 2021’s record numbers to this year, but a Rabobank report from July did state that 2022's second half could see rising imports.
Par: Peter Thomas Ricci (09/19/2022)