African Swine Flu Causes China Pork Prices to Rise

As the annual Lunar New Year approaches, pork prices in China have risen as a result of the ongoing African swine flu epidemic
China is expected to celebrate the annual Lunar New year in the coming weeks. Since pork is one of the most important commodities in China, especially during the new year celebration, prices have risen in recent days.
The swine flu epidemic continues to affect parts of China. Because of this, close to millions of swine were culled in order to prevent the spread of the virus. This resulted in a massive decline in supply. Despite China's effort to mitigate the effect of the epidemic, the swine flu outbreak has now spread to 24 provinces. As a result, nearly a million swine were culled.
Market analysts have predicted that pork prices in China are "very likely" to rise within the second half of the year. This price hike is equated to the African swine fever outbreak which has affected a number of regions in China. Regardless of these recent developments, analysts are positive that no major supply volatility will happen as China approaches the celebration of the Lunar New Year in early February.
The Chinese government have stated that pig farmers have been urged to quickly replenish their stocks. A Chinese government official said that this measures were adopted in order to curb the expected rise of the price of pork in the coming weeks.
In a statement acquired by the South China Morning Post, China's Ministry of Agriculture and Rural Affairs Tang Ke said, "We recommend most farmers adjust their production and increase replenishment in a timely manner."
The official added that this is part of the effort to encourage farmers to step up production as measures in order to mitigate and control the effect of African swine fever is still being developed.
China is currently making progress battling the world's fastest-spreading epidemic of African swine fever. As of this writing, the African swine fever has spread to 24 provinces. This has lead to the culling of more than 900,000. While the disease is fatal to hogs, it does not affect people.
Despite bleak forecasts, the minister said that the outbreak will not affect national pork prices. He added that the outbreak will not affect current supplies and that it is sufficient.
In December 2018, national pork price in China has dropped by 5 percent compared to the same time in 2017.