September 22, 2010

China's pork-grain price ratio climbs

China's pork-grain price ratio gained 0.32% to 6.25 in the week ended September 15 due to rise in cost prices of live hog in large and medium-sized cities.

The cost price of live hog averaged RMB12.88 (US$1.92) per kilogramme on September 15, up 0.31% than the previous week while wholesale prices of corn remained stable at RMB2.06 (US$0.31)/kg.

The Ministry of Agriculture statistics show that average price of piglet in 470 rural pedlars' markets was RMB18.36 (US$2.74)/kg in the week, up 0.8% on-week but down 2.9% on-year.

Several ministries including the Ministry of Commerce jointly purchased frozen pork reserves in five batches since mid-April, which drove pork prices to bounce back continuously. The pork-grain price ratio rebounded above the breakeven point of 6:1 in late July and stabilised later.

As China's Middle Autumn Festival is coming, the live hog prices would continue to rise in the season of mass consumption. The sustainable live hog supplies may endure a moderate price rise, according to the research report of National Development and Reform Commission.