China's hog supply to continue exceed demand

Despite the rebound in live hog prices recently, China's hog supply will continue to surpass demand in the market for some time, according to an analysis by the National Development and Reform Commission (NDRC).

In order to prevent the excessive drop in live hog prices, the Chinese government launched a contingency plan in early May which included disseminating early warning information, stockpiling frozen meat for centralised storage at 35 depots around the country and other measures.

As a result, live hog market prices have increased consecutively for the past three weeks.

Meanwhile, the average price of a live hog in 36 large- and medium-sized cities was RMB10.30/kg, an increase of 6.18 per cent or RMB0.60 higher than the average price when the contingency plan was launched, according to data released by the Price Monitoring Centre under the NDRC on June 24.