Hog industry sees rebound

BEIJING, China (Xinhua) — Pork production in China is likely to bottom out before the end of the year and be back to normal level next year, officials with the Ministry of Agriculture and Rural Affairs said Thursday.

Yang Zhenhai, an official with the ministry, told a press conference that there was a stabilizing trend in pork production, citing increases in hog stocks, as well as in sales of gilts and fodder last month.

The sales of gilts rose more than 70 percent month on month in September, according to the monitoring of China’s 100 key pig-raising enterprises by the agricultural ministry.

Yang also noted significant stock recovery in major pork-producing provinces. In September, hog stock increased by more than 3 percent month on month in seven provinces including Liaoning and Shandong, up from only one province in August.

The government measures rolled out since the end of August to support hog production have greatly restored pig farmers’ confidence, said Yang, who expected that pork supply would be back to normal level next year.

Tang Ke, another official with the ministry, confirmed the turnaround in pork production as the outbreak of swine fever stabilizes and supporting policies come into effect, but pork prices will stay high during the New Year and Spring Festival holidays in January.

In the week ending 13 October, the wholesale price of pork jumped 14.8 percent from a week ago, according to data from the Ministry of Commerce.

As for vegetables and fruits, Tang said prices of both have started falling in the third quarter from the high level in the first half. They are likely to drop further in future months as supply continues to improve, he said.

The average wholesale price of 30 types of vegetables went down 0.3 percent week on week last week, and that of six types of fruits fell 2.2 percent during the same period, official data showed.

Food accounts for about one-third of China’s consumer price index, a main gauge of inflation, which rose 3 percent year on year in September, expanding from the 2.8-percent growth registered in August.