March 11, 2008

China pork prices drop in latest week, yet to remain high for some time

China's pork prices fell 0.75 percent in the week ending March 7, at RMB14.65 (US$2.05) per 500 grammes, the National Development and Reform Commission (NDRC) said on Monday.

Pork prices were 1.6 percent lower than on February 3, when they were at RMB14.80 (US$2.08) per 500 grammes.

However, pork prices are expected to remain strong generally due to high demand and the decline of hog population in the country, a senior government official said.

Wang Zhicai, director general of the Department of Livestock Husbandry, said rising production and labor costs as well as increasing demand will keep prices high, although the hog population has recovered since blue ear disease affected the industry last year.

Chinese assistant commerce minister, Huang Hai, said over the weekend that it would take longer than the government had previously forecast for China's hog population to return to a level high enough to satisfy market demand.

Last year's surge in pork prices was a key driver of inflation in China.