by staff LISTEN: Money Matters 8-1-16
Pig prices in China may climb to near record levels following floods that drowned animals and prompted fears of possible disease outbreaks.
According to Bloomberg, In one village alone, local reports say roughly 10,000 hogs drowned in flood waters in China. Flooding also raises the risk of disease due to improper treatment of corpses. China is the world’s largest pork consumers and farmers in the country are increasing slaughter, including animals that aren’t fat enough. Pig prices may surpass the record 21 Yuan per kilogram reached in May, the equivalent of $3.15. China will import a record amount of pork this year to cover a supply gap amid declining domestic production. Output fell 3.9 percent in the first half of this year and the five provinces hardest hit by flooding produce about one-third of the country’s pork. Analysts say domestic pig prices in China surged 51 percent already this year, and imports will surge at least 30 percent.