According to CRI, pork is still the major meat consumption for Chinese residents. With the economic development and rising level of urbanization in China, the overall consumption of pork and the consumption per capita are both on the rise. As for the consumer groups, the household pork consumption of urban residents is higher than that of rural residents, and both have been relatively stable since 2009. Every year, urban residents consume over 20 kg of pork per capita while the rural residents consume about 15 kg of pork per capita.
The areas of pig raising and pork producing mainly include Asia, North America and Europe, such as China, EU, the U.S., Brazil and Canada. In addition, the major consumption is concentrated in China, Europe, North America, Japan, Russia, etc.
As the production volume of pork fails to meet the domestic demand in China, the overall import volume continues to increase. In 2017, the import volume of pork in China fell to 1.2168 million tons and decreased by 24.9% YOY. Meanwhile, the import value totaled about USD 2.22 billion, decreasing by 30.4% YOY. During 2014-2016, the import volume and value of pork both increased in China, while they declined in 2017. According to CRI, China has mainly imported pork from EU, the U.S. and Canada in recent years. Every year, China imports not only pork but also a great deal of pig offal for consumers’ preference. In 2017, the total import volume of pork and pig offal reached 2.45 million tons. Of the total, the import volume from the U.S. accounted for 24%, which was 22% in 2016. Under the original import tariff policy, the imported pork and pig offal from the U.S. always have stable and obvious price advantages in the Chinese market. In terms of the level in Apr. 2018, the average price of imported pork and pig offal was 2.5-3.0 CNY/kg lower than that of domestic products. In the case of a 25% import tariff, the imported pork and pig offal from the U.S. will no longer maintain price advantages over the domestic products in China. If China imposes tariffs on pork and pig offal from the U.S., the gap will be filled up by pork products from Germany, Denmark, Spain, Canada, etc.
With the sustained economic development, the rising per capita income and the ongoing urbanization, the market demand for pork will continue to increase in China. However, hindered by rising costs of pig raising and stricter policies on environmental protection, the pig slaughtered and production volume of pork are not expected to increase rapidly from 2018 to 2012. It is estimated that the profits of pig raising will keep growing in recent years. At the same time, the import volume of pork will also continue to increase.