Ran across an article in Reuters about pork prices in China. It's interesting because right now china is in the midst of a boom -- their economy is growing, and it's showing signs of inflation. Commodity prices are rising, labor costs are rising...
"...Her fleshy, pale-downed porkers are worth 70% more than last year on the market, with live pig prices, and their girth, growing daily. 'Each pig can grow about a half-kilogram a day, which means 10 yuan [about $1.50 USD]' said Ma, 43. 'For 100 pigs that's 1,000 more yuan for each day I don't sell them"
China had an increase in feed prices last year that drove many smaller pork producers out of business, and the remaining ones had problems with bad feed ingredients, forcing the slaughter of many pig herds. The farmers reacted by raising fewer pigs, and that shortage, plus rising labor, fuel and feed prices continue to drive the price of pork up.
click here for a graphic of pork price vs corn price.
You'll find the whole article here.
We're in a recession of historical dimensions. We're the biggest customer for chinese goods. I wonder how long this will last -- and how big the crash will be when Chinas bubble pops.
5 weeks ago
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2 comments:
As a general rule, I hate graphs that don't start at 0 in the Y axis. this one makes it look like prices have multiplied 5X when they've really only doubled.
Another interesting stat is that China consumes nearly 50% of the world's pork production. That compares to ~15% of chickens and ~10% of cattle. Clearly, what happens in the pork market in China has a big impact on the pork market globally...
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