August 31, 2007

China's pork prices drop for third consecutive week

Pork prices have dropped for the third consecutive week, even as overall prices of agricultural products rose 0.1 percent, the Ministry of Commerce said.

The latest drop of 3.3 percent indicates some measure of success in the government's effort to cool down prices after prices were said to have risen to levels 80 percent higher than last year's level in July.

While pork prices have come down, authorities may have another issue to deal with: vegetables. Major coastal cities in northern and central China have reported a 20 percent rise in vegetables compared to the year before. Prices of vegetables also rose 2.5 percent this week.

However, vegetable prices are expected to fall by mid-September, after harvests are completed.