Chinese hog prices remain sluggish

Since late 2012, hog prices in China have remained stagnant, and at the beginning of 2013, they decreased sharply. Wang Zongli, Deputy Director of Animal Husbandry Department under China's Ministry of Agriculture, predicts hog prices are unlikely to increase dramatically, although they may temporarily pick up because of Chinese festivals like the Moon Festival and National Day.

According to Li Xirong, Master of China's National Animal Husbandry Station, the influence of macroeconomic factors on decreasing pork consumption in China should not be underestimated. He explained that pork consumption in China can be roughly divided into several segments, such as urban and rural household consumption, government offices and school canteens, the catering industry, migrant laborers, and consumption paid by public funds. Migrant laborers, affected by the failing macroeconomic environment, have decreased consumption. Government control on public consumption is decreasing the part paid by public funds, Li said.
In contrast, hog production in China is still increasing. China reports that 696 million heads of hog were put on market in China in 2012, making a growth of 5.2 percent from last year and representing 55 percent of worldwide production. Another 53.35 million tons of pork were produced, an increase of 5.6 percent from last year, and 49 percent of worldwide production.