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Pork price remains high due to short supply, MOC

www.chinanews.cn 2007-07-20 17:10:03

Chinanews, Beijing, July 20 �C Recently, pork price keeps rising in
China. The public fear that in the near future, there might not be enough
pork available in the market. In clearing such fears, Assistant Minister
of Commerce Huang Hai said that Chinese government could guarantee enough
pork supply in the market. Pork selling price might still remain high
during the second half of the year; however, the short supply will come
to an end by the end of the year, when supply and demand for pork remains
at a balanced level. By then, he said, pork selling price will return to
the normal range.
Since mid May this year, pork price has witnessed a major rise twice in
many places across China. Recently, the pork price is still climbing up
little by little.
The price hike is mainly boosted by the short supply of pork, said the
assistant minister on Thursday.
At present, pigs are raised by individual farmers. Since these farmers
can not share information effectively, sometimes pork supply will exceed
demand, while at other times, the situation is vice versa. During the
first half of 2006, the price of pigs dropped dramatically. In order to
reduce raising costs, many farmers killed sows and sold the piglets at
cheap prices. As a result, the number of fully grown pigs dropped
dramatically during the first half of this year. In many abattoirs, the
number of pigs that could be killed for meat also dropped tremendously.
Consequently, less pork is available in the market.
The blue-ear disease occurred in some places across China this year and
price of forage kept rising. All these added costs to pig raising. In
addition, heat wave swept over some places across China and floods
occurring in these places destroyed roads, making pork delivery difficult.
It usually takes about half a year for a piglet to fully grow. So the
problem of short pork supply can not be solved in the short term. Pork
price might remain high during the second half of the year. If there are
serious natural disasters or epidemic diseases occurring at that time,
pork price might further climb in some parts of China, the assistant
minister said.

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