Swine flu may hurt China’s pork consumption
Stock value of several Chinese hog companies slumped
Although no Chinese cases of swine flu have been reported yet, the stock value of several Chinese hog companies slumped on April 27. Experts worried that swine flu may threaten China’s pork market.
The stock value of Sichuan-based New Hope Group, a leading hog producer in China, decreased from 9.43 yuan on April 24 to 8.70 yuan on April 27, a drop of 7.7%. Meanwhile, the same trend also showed in six other Chinese hog companies.
Swine flu outbreaks caused Beijing's wholesale and retail pork trade to drop April 28, reported Beijing's state-owned Economic References Newspaper.
"Until now, China's hog supply outpacing pork consumption was the main reason for falling pork prices," Guo Huiyong, an analyst at Beijing-based research firm Orient Agribusiness Consultant, Ltd., told Pig International.
"However, if the government fails to control the swine flu outbreak, food safety concerns may slow down pork consumption in Chinese households," added Guo.