China's weak livestock prices seen to continue in 2009

Prices of major livestock products in China may continue to fall this year, an official from the Ministry of Agriculture said.

In a recent national veterinary meeting, Wang Zhicai, director in charge of the ministry's department of stockbreeding, said that live pig, milk and other major livestock products' price drop in 2008 may continue until the New Year.

Statistics from the ministry showed that by November 2008, average pork price had been falling for nine months in a row, down 25.4 per cent compared with its peak in February.

Due to the international financial crisis, Wang said consumers will spend less on livestock products. On the other hand, the number of progenitive sows in 2008 increased considerably throughout the country, leading to supply glut. The supply of live pig is also expected to sharply rise in the first half of 2009.

Wang said the livestock industry may be seriously affected by profit losses and lead to a recession in the industry if problems are not immediately addressed.

Sources from the ministry said this year, the country will encourage standardized large-scale breeding and the construction of choice-breeding systems, and closely monitor market supply and demand, to ensure a steady development of livestock products.