September 14, 2010

China's Sichuan pig farmers make gains

In the week ended September 3, the pig-feed price ratio rebounded to 5.5:1, the first time in 32 weeks above the 5:1 break-even level for pig farmers, data collected in Sichuan province shows.

Meanwhile, Ministry of Commerce reported that the domestic average pork price had risen for 12 weeks to RMB4.367 (US$0.646) per kilogramme, the highest level year to date and 26.6% higher than that before the price rise began.

The pig-feed price ratio that shows Sichuan pig farmers are making profits is attributed to the dropping corn price, due to increased supply after the summer harvest, and rising pork price. In addition, supply of live pigs has been reduced by floods and rainstorms across the country, while demand for pork has increased since the school year, lifting pork price higher.