CHINA imported 592,000 tons of meat in April, down 35.7% from the same month a year earlier, customs data showed yesterday, as a surge in domestic pork output curbed appetite for shipments from abroad.

Meat imports for the first four months of the year were down 36% from a year ago at 2.26 million tons, according to the data released by the General Administration of Customs.

Demand for imported pork has slumped this year after Chinese hog farmers increased breeding to compensate for losses caused by African swine fever in recent years.

China’s hog prices are rebounding after a prolonged slump. Futures on the Dalian Commodity Exchange jumped as much as 3% yesterday, and are now at their highest since July for the rolling, most-active contract. Still, prices are down almost 25% over the past year.

The sow herd has now shrunk more than 9% since its peak but remains slightly above normal levels, according to Everbright Futures. Meanwhile, prospects for demand look dimmer because of COVID resurgences and a dietary shift toward poultry meat, which will limit hog price gains, the Chinese brokerage said.

“After supply returns to normal levels, demand factors will determine pig prices in the second half of the year,” Everbright Futures said.

China’s hog breeders have been squeezed by rising costs of animal feed ingredients such as soybean meal and corn, as well as the slump in pork prices. Destocking is happening slowly and Fitch Ratings said it doesn’t expect hog prices to rebound materially until the second half of the year.(SD-Agencies)