In China, pork barrel politics involves national economics rather than local electoral advantage. Prices for the meat soared 69 per cent in September, pushing consumer price inflation to Beijing’s ceiling of 3 per cent. Share prices have run away faster than a greased piglet. They will turn tail as the government steps up interventions.
China consumes half the world’s supply of pork, which has been squeezed by a swine fever epidemic. Pork accounts for about 60 per cent of Chinese meat consumption and is a crucial ingredient in a varied and delicious national cuisine. Demand is inelastic. Consumer frustration is rising with prices.
China’s pork output is set to fall by a quarter this year, creating a shortage of up to 10m tonnes. The stock of hog producer Muyuan has jumped 188 per cent this year. Zhengbang Tech, which produces feedstuffs, has leapt 205 per cent.