May 23, 2008

Hog prices hit 9-year highs in Taiwan due to supply shortage

Hogs were sold for NT$7,419 per 100 kilogramme  -- a new nine-year high -- due to a supply shortage.

The price hike has resulted in an increase of the retail price of pork.

The shortage stems from increased feed prices which has discouraged pig farming, Taiwan's Council of Agriculture (COA)said.

The island normally consumes 23,000 hogs a day, but only 20,000 to 21,000 were supplied last week and this week it slumped to 18,984.

Prices are expected to rise further due to the upcoming Dragon Boat Festival. Farmers are also holding their hogs back from the market in anticipation of further price increases.

Dragon Boat Festival is one of the most important holidays for the Chinese. It falls on May 5 on the Lunar Calendar, or Jun. 8 this year.