Soaring Pork Prices Drive Chinese Ministry to Modify Its Pork Reserve Regulations

by 5m Editor
9 September 2004, at 12:00am

CHINA - Pork prices in China have been rising continuously since the beginning of this year. According to China's Ministry of Commerce, the country's average retail pork price for the first half of this year was RMB11.10/kg, a significant increase of more than 40% compared to the same period in 2003.

On September 7, 2004, retail pork prices (first-grade pork) in Chaoyang district of Beijing surged to RMB16.0/kg. Current pork prices in part of China have reached 20-year high.

Due to the bird flu epidemic in many parts of the world, global consumption for poultry meat has dropped. This has driven up the demand for pork and thus global pork prices.

Owing to the rise in feed prices resulting in lower profit margin for hog raisers, global pork production for 2004 is expected to be in the region of 97.7 million metric tons.

According to China Customs Authority, China's pork exports including fresh and frozen pork for the first half-year of 2004 rose 38.9% and 67.5% respectively compared to the same period last year. Export pork prices had soared by US$252/ton.

To improve control on pork prices and regulate supply, China's Ministry of Commerce has reportedly sent its recently modified "Regulations on Pork Reserve" to the Chinese State Council for approval. The regulations were drawn up based on the opinions from related industry organization and market experts.

According to the Ministry, some live hog / pork / pork-processing enterprises in specific Chinese cities would be selected to be the central government's centers to maintain a certain volume of live hog and pork reserves. Through the establishment of these centers, the Ministry would be able to setup a network to improve monitoring and regulating pork prices and supply in the country.

Source: eFeedLink - 8th September 2004

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