January 22, 2008

Profit from hog production in China rises in December

Rising hog prices in December had continued to drive profitability for farmers in China despite higher production cost, according to the National Development and Reform Commission, China's economic planning agency.

The agency stated that production cost per head of hog in December increased by RMB76.16, or 6.82 percent to RMB1,193.63.

Average weight of piglet purchased by farmers was 19.32 kg, up 3.07 percent compared with November's. Meanwhile, the average cost of piglet was RMB465.19, up RMB59.67 or 14.72 percent.

On average, feeding cost per head of hog amounted to RMB556.82, an increase of RMB13.58, or 2.5 percent, compared with November. Cost incurred in swine disease prevention had increased RMB1.03 per head, at RMB16.76.

December's average income per head of hog sold was RMB1,655.51, up by RMB140.29, or 9.26 percent compared with November's figure.

Average net profit per head of hog was RMB477.66, up RMB63.85 or 15.43 percent compared with the previous month.

RMB1=US$0.1381 (Jan 22)