African swine fever played a role in China’s increase in food inflation last month. Pork prices have soared 14 percent on the year and increased 1.6 percent in April, and China’s overall food price inflation for April is 6.1 percent compared to a year ago following a 4.1 percent rise a month earlier.
The African swine fever outbreak in China is changing global pork trade as China looks to source more pork outside of its borders. It’s estimated that African swine fever will lead to the culling of 150 million or more hogs in China, as the nation has reported more than 100 individual outbreaks.
African swine fever is also impacting China’s demand for soy. With fewer hogs in the nation, and some 80 percent of farms not restocking, feed demand will be lower, with traders questioning whether China will need to purchase more soybeans, as pledged in earlier rounds of negotiations with the United States.