June 10, 2010

China's domestic wholesale pork prices in May remained steady on last year's low level despite the government's initiative to purchase and reserve frozen pork for the fourth time this year.

The government's efforts to reserve frozen pork was done in an attempt to support local pig prices and safeguard farmers. Pork prices were curbed by the continuing high production and hot weather that led to lower than expected pork consumption.

Local wholesale pork prices in May averaged 3% above May 2009, at RMB13.94/kg (US$2.04), 35% below May 2008. Beef prices were firm at wholesale markets, averaging RMB29.14/kg (US$4.27). Chicken prices decreased 2% compared with May 2009, averaging RMB11.45/kg (US$1.68).

In May, retail meat prices at wet markets followed the same trend set by wholesale prices, with beef and sheep meat prices averaging 2% and 7% year-on-year higher, respectively. Boneless pork prices increased 3%, while chicken prices eased 1% during the period.