October 18, 2007

China's pork prices rise after dropping for nine weeks

Pork prices rose once again last week after dropping for nine straight weeks, the Ministry of Commerce said Wednesday (October 17, 2007).

Wholesale pork price increased by 0.2 percent from a week earlier on average across the country, and rose by as much as 5.9 percent in some cities, the ministry said.

The average wholesale price hit 17.79 yuan (US$ 2.37 ) a kilogramme on Oct. 12, dropping RMB 2.55 from its peak price this year, the ministry said.

Pork prices in China have been soaring due to rising feed costs and blue ear pig disease, which has killed more than 70,000 pigs this year.

Pork prices, which nearly doubled, was the chief reason for general food price hikes which pushed up the consumer price index by 6.5-percent in August, the biggest monthly jump in a decade. Pork is the staple meat in China.

China has raised its interest rates five times this year, the latest on Sept. 15, as it tries to battle inflation.

The price of beef inched up 0.5 percent and mutton prices grew 0.1 percent on average, the ministry said. The price of eggs dropped 0.8 percent and grain prices dropped 0.1 percent.