CHINA - Pork prices in the mainland may have hit bottom and now are rebounding after officials met representatives of leading suppliers Yurun Group and COFCO.
According to The Standard, nearly 80 per cent of China saw pork prices rise on 12 May from 7 May, with Shanxi, Liaoning and Anhui provinces witnessing hikes of 7 to 14 per cent.
A source told China News Service that National Development and Reform Commission officials had called a meeting with representatives from large breeding and slaughter enterprises, including China Yurun Food (1068) parent Yurun Group, and China Agri-Industries' (0606) parent COFCO Group, on 17 April.
The price paid to farmers for hogs has since gone on an upward trend.
Suppliers had long suffered losses due to the diving prices. If they continued to fall, they might be tempted to dump female pigs to reduce inventory in order to push up prices next year.
The price of pork is closely related to the consumer price index - a key inflation gauge used by mainland leaders to discern social stability.
Hog prices had been falling since the end of 2013, hitting a three-year low on 24 April, with some farmers losing about 500 yuan (HK$622) for each pig sold.
Even after this round of price hikes, the current market price is reportedly just enough for suppliers to make ends meet.
TheMeatSite News Desk