Pig Prices in China Expected to Fall in the Second Half of 2023

Sluggish Demand and Ample Supplies Driving Down Prices

According to industry experts, China's pig prices are projected to decline in the second half of 2023. This anticipated drop is attributed to a combination of ample supplies and sluggish demand.

Weak Sales for Hong Kong-Based WH Group

WH Group, a Hong Kong-based company that has significant operations in China, has experienced a decline in sales from China in the past year. This has been attributed to the sluggish demand for pork in the region.

Profit Drop for WH Group

In its recent financial report, WH Group announced a 30% drop in its profits for the first nine months of 2023. This drop is largely attributed to the decline in pork sales in China.

Pork Price Drop in 2023

According to Nomura analysis, pork prices in China have fallen by 13.6% in 2023. This decline is primarily due to the weak demand for pork products.

Economic Impact on China

The decline in pig prices is adding to China's current economic challenges. The Consumer Price Index (CPI) figures released recently indicate a further rise in inflation, putting additional pressure on the country's economy.

Outlook for Pork Industry

Despite the current challenges, the head of the world's largest pork producer remains optimistic about the long-term prospects for the industry in China. He believes that pork prices, which are a key driver of overall food costs, will eventually recover.