June 29, 2009

China's retail beef and sheep meat prices in May were similar to April's levels but were slightly higher compared to the same period last year.

Beef and sheep meat prices in China have been climbing sharply over the past four years due to tight local supplies.

In May, China's retail beef and sheep meat prices averaged RMB32.76/kg and RMB32.42/kg respectively, following record highs of RMB33.95/kg and RMB33.50/kg in January 2009. Meanwhile, chicken prices in May fell 5 percent year-on-year, averaging RMB13.98/kg.

On the other hand, pork prices continued to fall in May to the level seen two years ago to RMB15.73/kg, declining 10 percent on-month and 36 percent on-year. The price drop was attributed to the oversupply of pork due to the rapid rebuilding of the hog inventory following the outbreak of porcine reproductive and respiratory syndrome in 2007. The Chinese government has since launched a frozen pork procurement plan to prevent further price falls.

US$1=RMB6.838 (Jun 29)