The Chinese pork sector is experiencing an increased incidence of disease.
This brief industry update titled China Pork Supply - the Chronic Disease
from Rabobank states that many farmers are decreasing production and quickening the liquidation of market hogs in the midst of disease fears and price volatility.
Rabobank expects the impact to worsen in the coming months as hog immunity usually decreases in winter.
Production recovery and reduced inflation will depend on whether the disease can be contained. China may continue to import pork to fill the gap in the near term.