  We study the density dependence of the decay $\pi^0\to \gamma \gamma$ using
the Skyrme Lagrangian to describe simultaneously both the matter background and
mesonic fluctuations. Pion properties such as mass and decay constant are
modified by the medium. This leads to large suppression at high density of both
photo-production from the neutral pion and the reverse process. The in-medium
effective charge of $\pi^{\pm}$ are also discussed in the same framework.
