June 3, 2008

Taiwan pork prices to remain strong on spiralling feed costs

Taiwan's pork prices are expected to remain high after a significant number of hog farmers closed their business due to escalating corn feed prices, a Council of Agriculture (COA) official said Sunday.

Huang Ing-haur, director of the COA's Department of Animal Industry, said that escalating grain prices since mid-2007 has forced 800 local farmers to quit the hog raising business.

Huang noted that each hog ranch raises an average of 700 pigs per year. Thus, the closure of 800 hog farms means a decrease of 560,000 hogs in domestic production, which has tightened hog supply and driven up port prices.

With just a week to go before the traditional Dragon Boat Festival, Huang said pork prices are expected to spike to new high in the coming days.

Pork prices have already hit an all-time high of TWD7,600 per kilogramme (US$251) last week.

Taiwan's hog supply is not expected to increase substantially in the second half of the year when two major traditional festivals, Mid-Autumn Festival and Spring Festival, will definitely push up pork demand and prices, Huang explained.