[Correspondent Diary] China, the Land of Yangkkochi, the Scream of Yang

Following Pork, Lamb Prices Also Plummet... China's Inflation Worries Ease
Chinese Leadership Relieved as Consumer Prices Stabilize Amid US-China Tensions

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese people like lamb. If they were to rank their affection, it would be in the order of 'pork-lamb-beef.' Chinese people mainly eat lamb grilled on skewers over a fire. If Koreans have 'chimaek' (chicken and beer), Chinese have 'yangmaek' (lamb and beer). Whole lamb barbecue, where an entire lamb is roasted in a kiln, is also popular.

Photo by Pengpai Capture

The price of lamb, favored by Chinese people, has recently plummeted. According to Chinese media such as Pengpai, the price of lamb, which used to be about 60 yuan per 1 jin (500g) at retail, has dropped sharply to 40 yuan. With an oversupply of lamb, prices have fallen by about 30%. The main cause of the lamb price collapse is pork. At the beginning of the year, pork was traded at about 35 yuan per kilogram (live weight). This month, it is being sold for about 15 yuan per kilogram. In China, the world's largest pig breeding and consumption country, pork prices have been halved. Oversupply is the main reason for the pork price decline.

After the outbreak of African Swine Fever (ASF) in 2018-2019, pig farming in China increased significantly. During the swine fever epidemic, pork prices surged, causing alarm in Chinese consumer prices. Before the swine fever outbreak, China raised about 450 million pigs, half of the world's total pigs.

Leading livestock and pig farming industries also drove the price decline. Due to fears that swine fever might recur, the livestock and pig farming sectors rushed to slaughter pigs, flooding the market with pork. When supply increases, prices naturally fall.

Even though Chinese people like lamb, lamb cannot beat pork. "China equals pork." Chinese media analyze that as pork prices halved, demand for pork increased. As pork consumption rose, lamb consumption decreased.

Lamb imports also increased. From January to the end of April, China's lamb imports totaled 173,900 tons, a 28% increase compared to the same period last year. The prevailing forecast is that the pork price decline will continue at least until the end of this year. The decline in lamb prices depends on pork prices stabilizing. With pork and lamb flooding the market, chicken prices are also stabilizing downward.

Pork prices have a considerable impact on consumer prices. With the price of the substitute lamb also falling, inflation has become a story for other countries in China. Although international raw material prices have surged, producer prices have soared, but Chinese consumer prices remain stable. This means the Chinese leadership does not have to worry about inflation for the time being.

Consumer price stability also means that the Chinese leadership has many cards to play amid external changes such as the US-China conflict. Because of this, some in China joke that President Xi Jinping is a very lucky person. From the consumer price perspective, China is unlikely to worry about inflation at least until the end of this year.

This content was produced with the assistance of AI translation services.