Recent data from the Agricultural and Rural Department of Guangdong Province shows that due to the high price of pork and COVID-19 impact, the consumer demand for pork is declining. The general price of pork has been decreasing since late February. In June, the purchasing price of pigs was an average of RMB 36 per kilogram, while the average ex-factory price of pork slices was RMB 43 per kilogram, which was a decrease of 18% and 18.3% compared to the highest price in February. Recently, the purchasing price of pigs has increased to RMB 40 per kilogram.
Increasing pork prices not shown in Guangzhou markets
Even though the general pork price shows an increase of 5%-10% compared to one month prior, in order to balance the effect on the increasing pork price, many supermarkets and stores in Guangzhou offer discounts on pork regularly to attract people to purchase pork. As a result, the high pork prices are not reflected in the market.
According to some retailers, due to the control of COVID-19 in China, many workers have returned to factories and enterprises, and students have returned to schools, which to some extent increases the consumer demand for pork. A representative of CR Vanguard in Guangzhou district said that the recent price of pork sold in CR Vanguard shows a stable increase of 5% and 7%, compared to one month and one year prior. Recently, supermarkets under CR Vanguard offer a weekly sale on pork as well as a discount on poultry so as to satisfy consumers’ daily demand.
According to the pork price list of a food market in Dongchuan Road, Guangzhou, the price for pork hind leg with skin is RMB 80 per kilogram, the price for pork rib meat is RMB 68 per kilogram, and the price for fresh pork ribs is RMB 100 per kilogram. A representative of the food market in Dongchuan Road said, “Compared to the price during the Spring Festival, the recent price is not very high.”
A representative from the Ministry of Agriculture and Rural Affairs of China said that the average price of pork will continue to rise during the second half of 2020, and the price may increase especially sharply during June and September due to improvements in the situation of COVID-19. He also indicated that both pork imports and poultry imports have increased by 1 million tonnes each compared to 2019. Therefore, the supply of pork and poultry should be guaranteed.
Piglet bearing sows show an increase of 15.8% compared to 2019
In early 2020, to promote pig-raising households, governments in many provinces launched a policy to support pig production. Recent data in Guangdong showed that the total number of pigs living on farms is 14.32 million, which is an increase of 0.2% compared to last year, and an increase of 3.1% compared to the first quarter. Among the 1.432 million pigs, the number of healthy sows that can reproduce normally is 1.51 million, an increase of 15.8% compared to 2019.
Recent data from the Agricultural and Rural Department of Guangdong Province also shows that Guangdong Province will add another 600 farms for breeding pigs. It is estimated that by the end of 2020, there will be 3.16 million pigs in the farms, with 470 thousand sows. After 600 farms are fully compelted, the total number of pigs is estimated to reach 12.5 million, with 1.09 million sows. The amount of pork on the market will continue to rise in the second half of 2020.
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