May 23, 2013
China's pig prices rebound after government's subsidy
Following the government's subsidised initiatives, prices of pigs in China have bounced back.
This is according to the National Development and Reform Commission (NDRC), the nation's top economic planning agency, on Wednesday (May 15).
The average hog price reached RMB12.79 (US$2.1) per kilogramme by May 15, marking the third week of a rising trend. The hog-to-corn price ratio, a major indicator of the industry's profitability, hit 5.33:1 by May 15, up from under 6:1 in early March, the break-even point for farmers, according to the NDRC.
Due to the dumping of dead pigs into Shanghai's Huangpu River and seasonal factors, hog prices have fallen sharply since January. The hog-to-corn price ratio stayed under 6:1 for four weeks since early March.
The NDRC suggested farmers watch the market closely and adjust their production plans to restore balance to the industry, after widespread fluctuations.