Why Pork Prices are Driving Chinese Inflation

Oct 18, 2019

By Andie Corban and Molly Wood

China’s consumer inflation in September rose 3%, the fastest since 2013. Pork prices, up 69%, drove much of that increase. Host Molly Wood spoke with Marketplace’s Jennifer Pak to hear about what’s going on in China.

“Pork is a staple in the Chinese diet,” Pak said. “And prices went up because of something called the African swine fever.”

The virus has devastated the pig population in China, driving up the price of pork. That, plus an increase in the price of fruit, has pushed inflation up in China.

“It’s not just food prices that are going up,” Pak said. “Housing prices are still going up. Also education, health care, and people have to take care of their elderly parents.”

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Video: What Does 20 MILLION Hogs a Year Look Like?

?? The Multi-Plant System Processing 20 Million Hogs Annually in the Midwest JBS USA operates multiple large-scale pork processing facilities across the Midwest, including major plants in Iowa, Minnesota, and Indiana. Combined, these facilities have the capacity to process approximately 20 million hogs annually.

Each plant operates high-speed automated slaughter systems capable of processing up to 20,000 head per day, followed by fabrication lines that break carcasses into primals, sub-primals, and case-ready retail products.

Hog procurement is coordinated through electronic marketing platforms that connect regional contract finishing operations and independent producers to plant demand schedules. This digital procurement system allows for steady supply flow and scheduling efficiency across multiple facilities.

Processing plants incorporate comprehensive food safety systems, including pathogen intervention technologies, rapid chilling processes, and integrated cold-chain management. USDA inspection is embedded throughout the harvest and fabrication stages to ensure regulatory compliance and product integrity. Finished pork products — from bulk primals to retail-ready packaged cuts — are distributed through coordinated logistics networks serving domestic and export markets.