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Beacon’s supplier, Bidfood has revealed that so far throughout 2019, German and Dutch bacon suppliers have seen ‘huge’ uplift in orders placed from China, following an outbreak of African swine fever that has had a ‘detrimental affect on herd numbers’. Reports suggest that 30-50% of Chinese pig farms have been affected by the outbreak, which in turn has increased pig prices across the globe.
Ben Charles, food buyer at Beacon, said: “Brexit has been a driving force behind the price of pork throughout the first quarter of 2019, but the outbreak of African swine fever has mounted pressure on the market.
“The current increased demand that faces European suppliers makes it increasingly likely that prices will continue to rise throughout the rest of the year.
“Beacon will work closely with its leading suppliers to monitor these increases to ensure that demand does not outstrip supply and to mitigate price increases as much as possible.”
Slaughtering has been ‘extremely difficult’ for the last two years, with Germany reducing herd numbers by approximately 100,000 pigs per week, leaving them unable to single-handedly supply China. This in turn, has contributed to the rising cost of pork, with the market rising 38% in the last four weeks.
Beacon’s supplier, Bidfood reported an 18% increase in bacon pricing from February to April of 2019, with early indications forecasting that the situation will remain for at least 12 months until the Chinese pig herd recovers.