China is considering launching a live pig futures market to stabilise pig prices.
Speaking at a forum on animal husbandry modernisation held in Dalian, Guo Xiaoli, vice general manager of Dalian commodity exchange (DCE) emphasised the risks of pig price fluctuations for raisers, processors, traders as well as consumers in China.
Pig prices in China rose in June 2003 and peaked in October 2004. But the prices declined since then, causing losses to most of the industry in 2005.
DCE, the biggest futures exchange by trading volume, said it has made studies on live pig futures since 2000. The exchange feels the time now is ripe to launch the new product.
According to DCE, the pig futures are likely to be launched in central China like Hunan, Hubei or Henan. All the three are among the top five largest pig producing provinces in China.