December 5, 2007

China's cattle farmers call for insurance scheme as beef becomes pricier

Coming in the wake of a government scheme that saw insurance coverage given to the nation's 21 million  sows, China's cattle farmers are now calling for insurance to be given to their cattle.

Calling cattle-raising a high-risk business, Li Fucheng, manager of a cattle-rearing company in Hebei Province, said that rearing cattle is much more risky than rearing chickens or pigs as cattle have longer growth periods, up to 4 years.

The typical chicken or pig is born and slaughtered within six months.

Beef prices on Nov 29 was RMB 23.89/kg, 45 percent higher than the same time last year, according to statistics from the Ministry of Agriculture.

Beef prices averaged RMB 21.5/kg for the first ten months of the year, nearly 17 percent higher over the same period last year.

The China Animal Agriculture Association (CAAA) said local producers were unable to meet strong demand for the meat, hence the price hike.