China Pork Prices Down 42% Year-on-Year... Consumption Declines Due to Economic Recession

The price of pork, which holds the largest share in China's consumer prices and is known as the 'price gauge,' has dropped by more than 40% over the past year. The decline is attributed to reduced consumption caused by the economic downturn.

According to statistics from the Ministry of Agriculture and Rural Affairs of China on the 14th, the average transaction price of pork at 500 major collection markets (shipment markets) last week was 15.18 yuan per kilogram (approximately 2,760 won), down 4.5% compared to the same period last month. This price represents a sharp 42.1% plunge compared to the same period last year when prices peaked recently.

China's pork prices have been declining since reaching a peak in early November last year. Although it is entering the winter season when Chinese people typically consume more pork, the downward trend continues.

This is analyzed to be due to decreased pork consumption caused by ongoing economic recession and income reduction following the outbreak of COVID-19. Currently, despite the easing of quarantine measures, China's economic recovery remains slow, and youth unemployment exceeds 20%. Moreover, consumption has not been stimulated as the real estate market, which accounts for 80% of Chinese assets, continues to stagnate.

China is the world's largest consumer of pork. Pork prices hold the largest weight in China's Consumer Price Index (CPI).

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