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Severe Drought Impacts Chinese Local Industry

26 August 2013
Meat & Livestock Australia

CHINA - Two of the key drivers for the strong demand for imported red meat from China in recent months have reportedly been the stricter food safety management and a decline in national cattle and sheep numbers in China.

According to analysts at Meat and Livestock Australia, the latest Chinese red meat retail prices, released by the Chinese Ministry of Agriculture, indicated a continued shortage of red meat supplies.

Boneless beef retail prices during July hit all-time high, averaging RMB 59.38/kg (A$10.70), with bone-in sheep meat prices registering the second highest prices, at RMB 61.87/kg (A$11.20).

Chicken carcase and boneless pork prices continued to rise for the second consecutive months, at RMB 16.85/kg (A$3.05) and RMB 23.75/kg (A$4.30), respectively.

MLA said that accentuating the rising retail prices is the lingering drought in China, reportedly covering four million hectares of agricultural land (Hunan Government website).

Reports suggest the drought has caused a serious impact on 1.7 million heads of livestock, including 860,000 cattle in Hunan Province.

The Chinese Government reportedly has allocated 1.65 billion yuan, in an aim to provide support for producers impacted by the drought.

TheMeatSite News Desk

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