June 27, 2012

China's pork prices rise due to government action

According to reports, a move by the Chinese authorities to boost pork reserves has taken effect, resulting in the rise of live pig prices after previous declines over the past four months.

The country's average farm-gate price for pigs rose to US$2.21 per kilogramme on June 13, up 1.01% from a week ago, after experiencing a continuous drop in the previous four months, the National Development and Reform Commission (NDRC) said in a statement.

After the pig-to-corn price ratio had fallen below six to one, the break-even point for pig farmers, for four consecutive weeks, the NDRC started State procurement of frozen pork from the market in May to increase national reserves and protect farmers against market volatility.

The commission said there is still a problem of overcapacity in the pig breeding industry, and advised farmers to reduce stocks of fertile sows, the newspaper reported.