February 23, 2009

China's pork prices dropped 5.6 percent by early February as compared with the same period in January, according to the National Development and Reform Commission (NDRC).

However, the commission stated that the return-cost ratio for breeders was at a normal level despite of the price decline.

The commission added it will try to stabilise prices by buying from the domestic market for reserves when pork prices fall below breeding costs, and reversing the process when prices get too high.

Industry officials said Chinese farmers were reluctant to replenish their hog and poultry inventories after the holidays due to the low returns.

In addition, China's pig stocks by mid-February fell by 1.4 percent from January to 456 million head after 17.7 million head were slaughtered before the Lunar New Year holidays, NDRC said Friday (Feb 20).