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Chinese meat imports further down in December
Chinese meat import figures fell further in December. The import volume will also be lower for the whole of 2021, although the underlying value will turn out higher. The lower import figures explain the pressure on the Chinese pig price that is going on.
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In December, China imported 654.000 tons of meat, more than half of which is pork and a quarter of which is beef. This is no less than 32% less than the same month in 2020 and also about 20.000 tons less than the import volume last November.
Looking at the whole of 2021, meat import volume fell by 5,4% to 9,38 million tonnes. Compared to the major decline in recent months, this is not too bad, but that is because import volumes in the first half of the year were ahead of 2020. Despite the volume contraction, the underlying value rose by 4,6% to $32 billion. This is mainly due to the sharp increase in beef prices in the past year.
Pig prices under pressure
The Chinese pig market is characterized by price pressure. Since December there has been a downward trend and prices have fallen by approximately 20% to 14 yuan per kilo (live weight). Converted, this amounts to €1,93 per kilo, which is meager by Chinese standards. The decrease is due to an oversupply at slaughterhouses. Chinese pork production increased by 28.8% last year to 52.96 million tons.
The celebration of the Chinese New Year will soon start in China, a festival in which pork consumption is at its peak. This may deplete some of the country's meat supplies. Furthermore, it should become clear in 2022 how the balance between supply and demand will work out. There are strong doubts as to whether the figures about the Chinese pig herd are correct. According to Chinese government statistics, the number of pigs grew by 10,4% at the end of last year, compared to the same measurement last year. Exact animal numbers are not mentioned.