(ZEROHEDGE) – China could be on the brink of exhausting its massive frozen pork reserves as the country's pig herd is wiped out by African swine fever.
Declining reserves are particularly bad news for the Communist Party of China, which is worried that it might not be able to prevent another destabilizing surge in prices.
For more color on China's strategic pork reserves, Enodo Economics, a London-based consultancy firm, quoted by the Financial Times, said reserves fell by 452,000 tons from Sept. 2019 to Aug. 2020. This means the country's pork reserves are at dangerously low levels.
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It's unclear how much of China's latest pork imports have been diverted to state stockpiles - but Diana Choyleva, Enodo's chief economist, said China has about 100,000 tons of frozen pork left in reserves, and "at this rate, within two to three months they'll be out."