July 18, 2008

China's pig industry is recovering as pig population grew 5 percent in H1 and prices are moving up, despite the devastating snowstorms and earthquake in the country's main pig production area, according to the National Bureau of Statistics on Thursday (July 17, 2008).
 

A survey of 20 major pig breeding provinces shows that China's live hog stocks grew 10.6 percent on-year by the end of June, said the Ministry of Agriculture.

Sow stocks increased 20 percent on-year by end-June, which would ease piglet supplies in the fourth quarter of the year.

Pork prices have dropped 9.2 percent since February but have increased on an on-year basis. Pork prices rose 30.4 percent on-year in June compared with an annual increase of 48 percent in May. However, the bureau's spokesman Li Xiaochao warned that rising pork prices would have an impact on China's inflation.

China's pork prices hit a record high earlier in the year due to an outbreak of blue-ear disease that led to an acute pork shortage. However, with record prices and government subsidies, pig farmers have increased stocks which helped to lessen the price increases in the past few weeks, according to the ministry.

Pig breeding in provinces hit by the snowstorms has fully recovered, the ministry said, adding that the snowstorm and Sichuan earthquake had killed about 7.6 million pigs.

The ministry said pork prices are likely to remain high due to soaring production, fertiliser, labour, water and electricity costs.