April 18, 2009

China pork prices continue falling

Pork prices have continued falling in China since hitting a high before the traditional Chinese Spring Festival in February.

Live pig breeding companies and households are either making no money or are incurring losses. But the government will take no steps to prevent pork prices from declining further.

The ratio of pork prices to grain prices currently stands at 6.5, and measures will be taken only when the ratio is blow 5.5 or over 9, according to a government pre-plan.

On Wednesday (Apr 15), average retail price of extra-lean ground pork reached RMB22.86 per kg in the markets of 36 medium and large Chinese cities, falling 13.6 percent from RMB26.46 on January 23, according to data from the National Development and Reform Commission (NDRC).

The wholesale price of fresh pork reached RMB15.53 a kg, down 18.6 percent from RMB19.07, said the Ministry of Commerce.

In the meantime, prices of other commodities have also declined, said the Ministry of Agriculture on Thursday (Apr 16).

Average price of live pigs dropped 8.4 percent to RMB11.63 per kg in March; prices of live pigs, pork and piglets fell 30.9 percent, 24.8 percent and 44.1 percent on-year respectively; average egg price dropped 1.6 percent on-month to RMB7.31 per kg; average beef price fell 1.7 percent on-month to RMB33.13 a kg; and average soymeal prices declined 6.1 percent on-month to RMB3.54 per kg.

The exception was corn, which grew 1.2 percent on-month to RMB1.56 per kg.

US$1 = RMB6.83360 (Apr 18)