Pork Prices in China Hit Six-Year Historical High in August
CHINA - According to statistics released by China's Ministry of Commerce (MOC), average retail price of fresh pork in China for August 2004 hit a six-year high of RMB7.30/half kg, a rise of 28% compared to the same period in 2003. Average price of live hog was up by 54%, which reached a record high of RMB4.90/half kg.
Some analysts expect pork prices in China to continue its upward trend until the end of Chinese New Year celebrations in February of 2005. Prices would then be on a downward trend after the festive season.
MOC said that farmers' interest in increasing their pig inventories was on the rise. Due to cyclical nature of pig farming and the anticipated rising demand for pork during the Chinese New Year season, average price of fresh pork during the period are expected to reach as high as RMB8.0/half kg.
Even though pork prices are expected to retreat slightly from its highs after the Chinese New Year celebrations, they will still hover at levels higher than those recorded before the price hike, says MOE. Some analysts felt that it is reasonable for China's pork prices to remain at the current levels as they had remained sluggish for the past six years.
MOC is currently monitoring pork price movements in the country closely but have not directly intervened in the pork markets. MOC's intervention, if any, would be through regulating importation and exportation of pork or drawing on national pork reserves to regulate prices.
Source: eFeedLink - 5th October 2004
