1, African swine fever
In 2018, China had its first outbreak of African swine fever, and since then, there have been more than 100 outbreaks across China. China*** has 31 provinces involved. Although African swine fever is now gradually under control, there are small-scale outbreaks from time to time. As a result, African swine fever is gradually getting out of control due to its rapid onset, rapid spread and high incidence, and there is no vaccine to cure it. In China, a total of *** more than one million pigs were killed and most farmers also cut back on production and cleaned up their stalls, leading to a sharp decline in pig stocks. Even though pork prices are now high and policies subsidize farming, not many people are rearing and expanding their pens, leading to higher pork prices.
2, the upward cycle
China's pork market changes are regular. Generally a pig cycle takes about four years. The common understanding is that the price of pork is high and more people are breeding, which then leads to a decline in price and fewer farmers, and so on. There are down cycles and up cycles in the hog cycle, usually around two years each. And it just so happens that the upward cycle of this hog cycle started around November 2018. So it's now in an upward cycle, and high pork prices are caused by law.
3, environmental protection ban
Environmental protection ban is also a big reason for the rise in pork prices.17 spring, China issued a new environmental protection law, in which the environmental protection regulations can be said to be the most stringent. There are many no-farming zones, and farming production is not allowed in prohibited areas. Moreover, even pig farms in suitable areas have to be treated in a comprehensive and rational manner. So after the introduction of the environmental protection law, due to various regulations, some pig farms were shut down and rectified or farmers are not willing to farm again, resulting in a reduction in the number of pigs.
4. Consumption is heating up
According to a professional data survey, in July 2019, China's pig inventory fell about 33% year-on-year. The slaughtering volume of about 17 million heads at large-scale breeding slaughterhouse sites across the country was down 11% year-on-year. However, entering the fall and winter seasons, the temperature gradually drops, the rural fall harvest and school season, as well as the arrival of various traditional festivals. It will increase the market demand for pork, leading to a warming of pork consumption and a corresponding rise in prices.
The above is a brief introduction to the reasons for the rise in pork prices. That's all the introduction today. This article is for reference only. I hope it can help everyone!
Part of the expertise transferred from the network.