Chinese officials optimistic about pork prices

15-08-2007 | |
Chinese officials optimistic about pork prices

The Chinese pork price increase is starting to slow down with the steady supply of pork to markets.

That was said by Chen Weisheng, deputy director of the stockbreeding industry department of the ministry of agriculture. He said the live pig-raising business is beginning to pick up.

Although there has been a decline in the number of small pig-breeding farms, the number of large ones are growing, Chen said, citing the conclusions of 20 inspection groups sent to major pig-rearing counties in China.

He added, “It will be better with incentives and the guidance of an encouraging policy.”

Pork prices
Despite the positive sounds, China’s ‘corporate pork price’ rose 11.5% in July from a month ago.

It was even an 85.8% increase on the same month last year, according to figures from the People’s Bank of China, released earlier this week.

The corporate goods price, previously known as the wholesale price, refers to prices paid by domestic companies. In a related development, in July, frozen pork prices rose 89.2% over the same period last year.

The soaring price contributed significantly to China’s 33-month-high Consumer Price Index. This rose 5.6% from July 2006.

Positive sounds
Chen was not the only one being optimistic. He was backed up by Xu Xihe, deputy director of the department of market operation regulation of the commerce ministry.

On the central government’s website Xu said the main reason for the sharp increase in pork prices was due to low prices last year.

The outbreak of PRRS in some regions, and an increase in feed prices were also factors.

To combat the sharp price increases, China recently encouraged pig-breeders to boost their stocks. The government promised subsidies and better legislation.

Related website:
• Chinese government

For the latest pig news, subscribe here

More about