China's Volatile Pork Industry A Report from the Economic Research Service

With China's emergence as a new source of potential demand for U.S.pork exports, it is important for U.S.farmers, business leaders, and policymakers to understand the volatile nature of China's pork industry. Prices, hog inventories, and pork output in China fluctuate from year to year in response to various factors that influence the market, and China's imports of pork tend to rise when Chinese hog prices are high. Extensive policy intervention by the Chinese government has contributed to consolida�tion in the country's pork industry but has not stabilized the market. Imported pork is becoming more competitive in China as Chinese pork production costs rise and animal disease outbreaks, environmental threats, and food safety concerns constrain growth of China's hog industry.