June 4, 2008

China's pork supply to inch up, yet prices will still spiral

China's pork supply will increase slightly in 2008 despite a recent earthquake, yet a growing demand will still drive prices up, the China Meat Association said Tuesday (June 3, 2008).

Deng Fujiang, secretary general of the China Meat Association, said that the moderate increase in supply does not mean the country has met the supply shortage.

China's demand for pork grows by 10 percent a year.

Deng predicted nationwide pork production to increase by 2 to 3 percent despite Sichuan province's projection of 3.66 million pigs killed in last month's earthquake.

Sichuan's estimate was more than double the agriculture ministry's previously reported figure of 1.5 million.

Deng pointed out that the Sichuan bureau's estimate might be exaggerated because the major pork breeding areas of south and central Sichuan were far from the epicenter.

China's ministry of commerce also said Tuesday that the state reserves system would release between 2,000-3,000 tonnes of frozen pork soon, mostly to feed hungry troops in Sichuan.

Analysts expect China to import more pork this year.

In the first four months of the year, China's pork imports have already soared 900 percent compared with the year before.

China has announced previously that duties on imports of frozen pork would be cut to 6 percent from 12 percent, by the end of the year.