December 15, 2006

Pork and egg prices in China rising due to high demand

Continually rising prices for livestock in Henan has bolstered the enthusiasm for farmers to replenish and expand their livestock inventory. 

Piglet prices have risen 39.5 percent, live hogs by 41.9 percent and pork prices by 19.8 percent, according to market analysts.

The market is on the upturn from the recent period of low demand which saw producers adjusting their production numbers downwards. The resultant lower production has now caused a shortage in the market.                              

At the same time, egg prices have increased 14.6 percent on-year on firm demand. Analysts say the strong demand is due to dissipating fears of bird flu. As the festive season nears, confectioneries are facing an egg shortage, which resulted in high egg demand.

For pork, increasing feed costs, especially that of corn, would support higher pork prices and would increase on a bigger scale than poultry products.