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Decline in Pork Output Expected
BEIJING - China's pork production is expected to decline due to Monday's earthquake which hit Sichuan, the country's largest lean-hog producing area. As a result of the catastrophe, pork and pork product prices may also rise.According to Businessday, the earthquake hit Sichuan, the province that accounts for about a 10th of China’s total pork production, Hanver Li, MD of Shanghai JC Intelligence, an advisory company on grain markets, said in Shanghai yesterday.
“We expect pork production to fall by around 10%-15% in the region before they can sort out all the transport, water, electricity and other logistics by August or September,” Li said.
Sichuan produces 65-million lean hogs every year, Li said. Chinese shipments of commodities in the province were disrupted after the earthquake killed 20000 people, closed the main railways and blocked roads. Less pork on the market could cause a rebound in prices, which have eased after almost doubling in the past year.
View the BusinessDay story by clicking here.
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