All articles tagged with #pork prices
China is implementing measures to stabilize its pig population as pork prices plunge, including offering subsidies to large-scale pig farms and encouraging smaller farms to consolidate. The country is also aiming to boost pork consumption and reduce imports in an effort to support domestic farmers and stabilize the market.
Plunging pork prices in China, driven by a pork glut and weak domestic consumption, are pushing the country closer to deflation. Retail pork prices in China dropped 31.8% in November compared to a year ago, contributing to a 0.5% year-on-year decline in the consumer price index. Falling pork prices, along with other factors such as falling real estate prices and aggressive discounting by e-commerce retailers, are concerning as they may lead to consumers postponing investments or purchases. China's oversupply of pork is also impacting the global meat market, creating a deflationary impulse. Additionally, changing consumer preferences towards healthier alternatives and a decline in demand for meat are further contributing to the deflationary risks in China.
Tyson Foods has reported a surprise loss in Q2 and has cut its revenue forecast for 2023 due to falling beef and pork prices. The company's shares fell 9% before the bell, indicating that cash-strapped consumers are cutting back on meat spending in a high-inflation environment. The shrinking cattle herd has forced Tyson to pay more for livestock, eroding margins. The company has lowered its forecast for fiscal year 2023 sales to $53 billion to $54 billion from $55 billion to $57 billion.