May 29, 2007

Pork plant in China's Dezhou suspends operations due to pig shortage

The current pig shortage in China has forced a pork processing company in Dezhou, Shandong province to suspend production.

Singapore-listed meat-products company People's Food Holdings Ltd said Monday (May 28) it is temporarily suspending production at its plant due to a shortage of pigs in the area.

In a statement, the company said the shortage of live pigs in China "has become acute in the last few days,". The suspension would have an impact on the company's production in the second and third quarters of its financial year ending December, the company said.

The pig shortage in China is caused by the toll taken by pig diseases and the resultant decline in animal inventories stocked by farmers. It has prompted price increase in major cities. Pork prices in the capital have risen 30 percent in recent days. Premier Wen Jiabao has pledged the government would implement measures to stabilise prices.