June 3, 2008

Pork prices seen to fall this year in China's Sichuan province

Pork prices in China's Sichuan province are projected to decline this year as the local market is able to boost pig supply.

However, pork prices in the short term will remain high as limited pig breeding period may not catch up with heavy demand.

China has recently set up a subsidy system and insurance system for pig-raising, establish transaction storages in such big pig-raising provinces as Sichuan and will launch live pig futures soon.

In 2007, Sichuan produced 99.11 million pigs, up by 5.2 percent, but with a growth rate that was 2.2-percentage points lower than the average in the previous four years.

Pig prices went up 66 percent on-year in December 2007, while wholesale prices of pork increased by 92 percent.