The sharp price hikes for meat and eggs in some areas, which
were triggered off by insufficient supplies and increasing
production cost, will likely come to a halt in July, sources with
the Ministry of Commerce said on Friday.
The forecast is based on the facts that live pigs added at the
beginning of the year to the pig population nationwide are ready to
replenish the meat supplies and that egg laying season will come
soon.
According to the Ministry of Commerce, in early and mid May,
pork was distributed at an average price of 14.5 yuan (US$1.9) per
kilogram in 36 major Chinese cities, up 8.6 percent month-on-month
or 43.1 percent year-on-year. The average retail price of eggs
stood at 7.00 yuan per kg in these cities, up 2.6 percent from a
month earlier or 31.6 percent over a year earlier.
The sources said major factors behind the price hikes included
insufficient supplies and increasing production cost.
A price slump in the first half of last year due to oversupply
and epidemic outbreak compelled pig and poultry raisers to reduce
their raising scale.
Meanwhile, price hikes for feed shored up raising cost. For
instance, average maize price rose 20 percent year-on-year in the
first four months of this year.
(Xinhua News Agency May 25, 2007)