News

Live hog prices soaring in China

African Swine Fever continues to spread across China wreaking havoc on its hog herd, sending live hog prices in the country soaring. 

US Meat Export Federation economist Erin Borror says prices are at their highest levels since 2016.  “Seeing that price finally start to move up again is a signal that hog numbers are indeed shortening,” she says.  “And packers in China are seeking to get supplies.  We’ve seen the price run even higher in Northern China.”

But, she says, reports out of China show there is still a lot of domestic product in freezers – which means there is a lot of meat to work through.  “That product needs to move to free up more freezer space,” she says.  “It’s complicated – but essentially the meat shortage in China is still not here yet.  It’s still looming.  And everyone continues to try and guess when that actually materializes.”

US pork headed into China faces a 62 percent tariff and Borror says that puts the US pork industry at a serious disadvantage to its competitors.

President Trump and President Xi are set to meet at the end of this week at the G20 Summit.

African Swine Fever was first detected in China last August and has spread throughout Asia.  The disease has also been found in Cambodia, Mongolia, North Korea, Laos, and Vietnam. 

African Swine Fever is highly transmissible and deadly to pigs, but it does not impact human health or food safety.