October 2, 2007

China's pork prices nearly 10 percent  down from peak

The average price of pork in China has fallen to RMB 12.61 a kilogramme this week, 9.61 percent lower than the peak price on Aug. 9, Xinhua News Agency reported Tuesday October 2, quoting China's economic planner.

Pork prices have been dropping consecutively for the past eight weeks after nearly doubling in the past eight months. Prices this week were around 3.45 percent lower from the end of August.

Pork prices surged due to short supply and mounting production costs, but the piglets raised since May and June will soon ease supply tightness, the National Development and Reform Commission said.

However, the Ministry of Commerce said the decline in pork prices would probably stop as demand usually surges during the ongoing National Day holiday and feed prices remain high.

Soaring pork prices have contributed to generally higher food prices, which caused a 6.5 percent increase in China's August consumer price index.