China’s Restaurants Likely to Suffer Over Lunar New Year as Virus Spreads
China’s Restaurants Likely to Suffer Over Lunar New Year as Virus Spreads
(Bloomberg) -- Dining with dozens of extended family members at popular local restaurants is a tradition for China’s 1.4 billion people during the Lunar New Year holiday. But this time, celebrations are likely to look very different.
The deadly coronavirus in China that’s killed 17 people and infected hundreds so far is conjuring up memories of the SARS epidemic that gripped the country in 2003. This will lead people to avoid going out into crowded areas including restaurants, where diners typically consume more food than they would at home, according to Shanghai JC Intelligence Co., an agricultural consultancy.
Meat especially is more popular at restaurants than at home, so consumption of that type of food is likely to be weaker than expected, said analyst Alice Xuan.
Also, data from the past decade show that prices of pork and beef tend to drop after the new year break, meaning they’re likely to fall this year too, Xuan said. Chinese holidays officially start on Friday and run through Jan. 30.
Commodity prices are on course for a decline this week, with futures for Chinese soybean meal and rapeseed meal -- used to feed livestock -- posting losses. Global commodities tumbled during the SARS outbreak in 2003 as panic slashed retail and transport demand.
To contact the reporter on this story: Alfred Cang in Singapore at acang@bloomberg.net
To contact the editors responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net, Anna Kitanaka, James Poole
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