Live Hog Products

Compared to the same period in 2003, the prices showed an overall increase by more than 100% in the key production provinces of Hebei, Liaoning and Henan. Prices of piglets were higher than pork prices in these regions.

Average live hog prices rose by 4.5% from May to RMB8.64/kg in June, an increase of 50.3% compared to June 2003. Chongqing, in southwestern China, recorded the lowest price, at RMB7.37/kg, while Hainan province registered the highest at RMB10.74/kg.

Consequent to the rising live hog prices, the ratio of hog to corn price (hog-corn ratio) has exceeded the break-even ratio of 1:5.5, registering at 1:6.13 for the past eleven months. On the whole, seventeen provinces in China registered a hog-corn ratio higher than 6.3, and four provinces with a ratio below 5.5. Compared to May 2004, twenty-eight provinces recorded a price increase.

At RMB13.73/kg, China's pork prices in June registered a month-on-month rise of 4.3% and year-on-year increase of 39.3%. The lowest price was recorded in Ningxia at RMB11.67/kg, while the highest price was registered in Shanghai at RMB16/kg. Compared to May 2004, twenty-five provinces registered a price increase with the largest hike of 18.3% registered in Beijing. Compared to the same period last year, the prices rose by more than 50% in Shanxi, Hainan and Qinghai provinces.

Prices of live hog products in the first half-year of 2004 have remained upbeat. In particular, prices of piglets registered the sharpest hike, which was a significant departure from the downtrend in the second quarter of previous years. Except for a moderate slide registered in February this year, piglet prices have been rising since March.

The sharp rise in prices of piglet is chiefly attributed to the higher production cost associated with the rising prices of feed ingredients, as well as the increase in pork consumption, influenced by the bird flu outbreak in China early this year. An upward trend characterized by fluctuations is expected to persist for the short term.

Source: eFeedLink - 2nd August 2004