China is encouraging pig-breeders to boost their stocks
following the rapid increase in pork prices.
Soaring food prices are believed to have fueled a steep increase
in the consumer price index - 5.6 percent last month, the highest
in 10 years.
Central bank statistics yesterday showed that the wholesale
price for live pigs saw a year-on-year increase of 85 percent last
month.
On the central government's website, www.gov.cn, Xu Xihe, deputy
director of the Department of Market Operation Regulation of the
Commerce Ministry, said the main reason for the sharp increase in
pork prices was due to low prices last year. The outbreak of
blue-ear disease in some regions, and an increase in feed prices
were also factors.
Analysts have warned the high price of pork will continue for
some time until more pigs are raised.
Xu, however, said the rate of increase is starting to slow with
the steady supply of pork to markets.
Chen Weisheng, deputy director of the stockbreeding industry
department of the Ministry of Agriculture, said the live
pig-raising business is beginning to pick up.
Although there has been a decline in the number of small
pig-breeding farms, the large ones are on the increase, Chen said,
citing the findings of 20 inspection groups sent to major
pig-rearing counties recently.
"It will be better with incentives and the guidance of an
encouraging policy," Chen said.
Also yesterday, the State Council released a circular urging
local governments to ensure the autumn grain harvest, carry out
encouraging policies to boost live pig-raising and maintain a
steady market supply of non-staple food.
(China Daily August 15, 2007)
