June 27, 2012

China's pig prices recover from four-month drop

Pig prices in China have slightly improved boosted by government's regulation following a decline of more than four months, the National Development and Reform Commission (NDRC) stated on its website on Monday (June 25).

The nation's ex-farm pig prices averaged RMB14.08/kg (US$2.21) on June 13, up RMB0.14 (US$0.02) or 1.01% over a week earlier.

After pig-to-feed price parity fell below the breakeven point of 6:1 at the beginning of this year, the government started the frozen pork stockholding programme, which had played an active role in stabilising the pig market.

The NDRC suggested pig farms should moderately reduce the restocking of hogs to reverse overcapacity in the pig production and promote the steady running of the pig market.