September 7, 2009

China's hog prices may rise steadily in the near term as consumption is expected to increase with the onset of the national holidays, a senior industry participant said Friday (Sept 4).

The country has sufficient supplies to meet demand, and there isn't any fluctuation expected in output, Ji Zhihua, deputy director general of the China Feed Industry Association, said during a conference.

Prices may start to fall from early 2010 once the Chinese New Year ends, she added.

The recent rise in meat prices in China won't cause overall inflation as the government has sufficient grain reserves, and a balanced supply and demand will also help guarantee stable prices, the National Development and Reform Commission (NDRC), the country's economic planner, said in a statement last Thursday.

The current rise in pork prices is a recovery, and reasonable increases can help protect farmers' interests, the NDRC said.

Separately, feedmeal output this year is estimated to rise slightly to 140 million tonnes as demand recovers, despite a 5.4-percent fall in the first half, Ji said.

China's feedmeal output in the first half fell to 64.63 million tonnes, mostly due to a 16-percent fall in poultry broiler feedmeal demand, she said.