Monday, August 17, 2015

China’s pig prices show recovery and compensatory rise

On August 5, the Information office of Ministry of Agriculture of the People’s Republic of China (MOA) released the analysis report on the rising pig prices. The panel of early-warning experts of MOA said, although the pig prices had risen for 18 consecutive weeks, the climb was only a recovery and compensatory rise. Later, the slaughter rate of fattened hogs will stay stable, and the supply will be assured.
After the Spring Festival of 2015, pig prices rose continuously, and pig production gained profit since June. According to MOA, in the last week of July, the pork price increased for 18th consecutive week to US$4.31/kg, up 20.7 percent year on year. With the rise of pork prices, the parity between pigs and grain increased to 6:1 in the third week of June, ending the losses that had lasted nearly one year and a half.
The experts also explained the reason why the pig prices rose so fast, it was the result of capacity reduction of pig production. According to the monitoring of MOA, in the 4,000 villages that raise pigs, there was a total 7.16 million head of hogs in June, down 10.3 percent year on year. The number of hogs on hand has declined for 9 consecutive months, and the number of adult sows on hand has declined for 22 months, both hitting the rock bottom since 2008.

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