Inside Pigs
High inflation in China due to African swine fever
The large-scale outbreak of African swine fever in China is now also leaving a big impression outside the pig sector. Consumer prices have also risen sharply due to the high pig prices. As a result, inflation has also risen substantially.
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Chinese inflation stood at 2,3% in March, which is higher than in the previous year. It is also 0,8 percentage point more than in February, when inflation stood at 1,5%. The main reasons for this are the increased consumer prices for pork and higher oil prices. So-called 'core inflation', inflation excluding food and energy products, remained stable at 1,8%.
For China, however, the increased inflation does not necessarily mean bad news. In fact, the Chinese government is even aiming for an inflation rate of around 3%. Although this rise in inflation is mainly driven by food and energy prices, it provides stability and more favorable market sentiment. Low inflation is often accompanied by slow economic growth.
Chinese companies in heavy weather
The Chinese pig farms are also experiencing more and more consequences of the outbreaks of African swine fever. Because of the animal disease, there are fewer pigs on the market and various companies are making large losses. Global Meat News reports, for example, that a large sow farm suffered a hefty loss of between 2019 billion and 1 billion yuan in the first quarter of 1,6, which translates to between €132 million and €212 million.