Chinese pork prices seen to stay stable

Pork prices in China will stay stable in 2010 and should not experience any excessive fluctuations.

 

 

In 2009, the market price of live pigs and pork prices dropped continuously to around mid-May, and for once the pig to grain price ratio was even less than 6:1. As a result, the state initiated the policy of regulating the market price of live pigs, through stock of frozen pork, to stabilise the price of pigs.

 

The price of live pigs and pork fluctuated in November 2009, but this price fluctuation is mainly due to increased year-end demand, coupled with rising food commodity prices. Pork prices have risen to a certain extent, but as the stage of consumption goes down, prices should continue to fall, but not in sharp decline.

 

If there are no major epidemic outbreaks in 2010, there should be no problem in the supply of live pigs, and the prices will be more stable. In addition, breeding pigs will be profitable, but the current level of profits is limited; each pig's profit is less than 10%, which will not stimulate investors to massively increase the supply of live pigs.