November 6, 2007

China's live pig profits drop 16.7 percent in September
 

Live pig profits have dropped under the twin yokes of increased costs and falling prices, according to a survey by the China Development and Reform Commission.

China's live pig production costs have risen 2.86 percent on-month in September to RMB 1,053.53 per pig.

The survey was based on production conditions in 18 major Chinese live pig production provinces, with stock of more than 10 million heads as of the end of 2006.

Piglet purchase price also rose 2.86 percent on-month to RMB348.4 in September.

Costs of feed concentrates were up 4.51 percent on-month to RMB502.47, and labour costs down slightly by 0.7 percent to RMB16.51.

The average disease prevention cost per pig was RMB15.44, rising by 5.3 percent on-month.

During the same period, sales income per live pig fell 2.74 percent  to RMB1,374.67.

The combination of increased costs and falling prices caused September pork profits to drop 16.7 percent to RMB336.16 when compared to August.

China's pork prices have cooled down for nine consecutive weeks after rising nearly 80 percent on-year in August. One reason for the high pork prices seen this year was a pork shortage resulting from the low profits which discouraged pig farming, on top of serious pig disease outbreaks which killed thousands of pigs.