Shortage Means Prices Will Stay High Until Summer

by 5m Editor
10 January 2008, at 9:59am

CHINA - Pork prices are expected to remain high in the first half of the year, but will likely decline in the second half, says Assistant Minister of Commerce Huang Hai .

He says that currently the price of pork is being propped up by the growing cost of raising and transporting pigs, but as domestic supply increases, prices are expected to decline. However, this will not happen until the summer.

MAC figures show that wholesale pork prices hit a record high of 21.80 yuan ($3) per kilogram last week, compared with 14 yuan in May. Pigs are in short supply, a situation that has been made worse by the recent closure of a number of slaughter plants.

More than 2,500 pig-slaughtering companies that failed to meet industry standards were shut down, following inspections that began in August to safeguard product quality and food safety.
More than 23,000 slaughterhouses were inspected during the four-month campaign, of which 7,700 unlicensed ones were closed and almost 2 million kg of pork were confiscated.

"The ministry, along with other government agencies, will take measures to guarantee the pork supply during the Spring Festival holidays in February," said Mr Huang.

5m Editor