May 31, 2004

Sharp Rise in China's Live Hog Prices in April

An eFeedLink Exclusive Report

China's livestock production achieved positive growth in the month of April. Monitoring market surveys conducted in 300 wet markets across different regions of China showed that prices of livestock products in April were consistently higher than the same period last year. In particular, prices of hog products had continued to register a sharp rise compared to the same period last year.

China's average price of piglet in April is RMB 11.78/kg, a rise of 7.3 % versus prices in March, and a remarkable increase of 47.6% compared to the same period last year.  This is the highest average price since 1999.

Average price of live hog in April is RMB 8.24/kg, 5.1% higher than March and 43.6% higher than the same period last year.  Currently, prices are approaching to the level of September 1997, where prices hit the historical high of RMB 8.68/kg.

In April, the ratio of hog to feed price is 1 to 5.93.  Since August 2003, the ratio has been maintained at a profitable 1 to over 5.5.

The price trend for live hog so far this year has turned out to be different from previous years', where the prices for piglet and live hog would usually drop in the second quarter. However, for this year, prices have registered a sharp rise in April.