Pig Prices to Remain Steady, Says Zhongpin

CHINA - Zhongpin expects the trend of pig prices to remain steady in the near future.
calendar icon 22 November 2010
clock icon 3 minute read

Zhongpin Inc., a leading meat and food processing company in the People's Republic of China, has commented on the outlook for hog and pork prices in China, given the recent measures issued by China's State Council.

Xianfu Zhu, Chairman and Chief Executive Officer of Zhongpin Inc., said: "We noticed that China's State Council issued 16 measures to stabilize consumer prices and to ensure market supplies. Excluding direct price intervention items, the 16 measures focus on production development, stabilisation of supply, reduction of delivery costs, standardization of market order, and enhancement of market supervision."

Since early October 2010, hog prices have maintained a slight rise and in that period have hit a high for the year to date. Pork prices have generally also risen during this fourth quarter of 2010.

Looking at the hog breeding sector, during the second half of 2010, the hog breeding industry in China is now profitable. Rising hog prices further increases breeders' profits and encourages farmers to replenish hog stocks. Currently in the hog market, supply and demand are essentially in balance. Therefore, the trend for hog prices is expected to be steady by the end of this year.

Mr Zhu continued: "China's pork market is market-orientated and heavily influenced by demand and supply, so the Chinese government generally adjusts the market by implementing policy using its frozen pork reserve instead of imposing direct price intervention measures. As a pork reserve participant, Zhongpin should benefit from changes in China's frozen pork reserve."

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