May 28, 2007

China's meat and egg prices to stabilize in July

The spate of price increases for pork, chicken and eggs in China would likely come to an end in July, sources with the Ministry of Commerce said last week.

The forecast is based on the fact that live pigs added at the beginning of the year would be ready to enter the market.

News about the onset of the egg laying season have also prompted the forecast.

May average pork prices of RMB 14.5 (US$1.9 ) in 36 major cities in China was an increase of 8.6 percent over that in April but 43 percent when compared to prices in the same month last year, the Ministry of Commerce said.

The sources said major factors behind the price hikes included insufficient supplies caused by diseases and increased production cost as feed prices rose.