China's Pig Industry Optimistic about 2011

December 22, 2010
Economic Observer Online
Translated by Guo Wei
Original article: [Chinese]

China's pig industry can be very optimistic about next year and they have inflation to thank.

Yesterday China Animal Agriculture Association vice-chairman Qiao Yufeng claimed, that after suffering losses during the first half of 2010, the pig industry gradually resumed making profits. At present, each farm can earn 300 yuan per pig on average.

Since February in 2010, the price of pork has fallen. Prior to February, the market price was stable at 10.5 yuan per kg, but as of late April, the price was just 8 yuan per kg. Many pig farmers reported that during the first half of 2010, when selling a pig around 200 kg, they would lose 200 yuan.

But starting late June the price of pork began to rise. By late July, farmers could earn 100 yuan to 200 yuan from similar sized pigs. The EO has learned that farmers can currently make 300 yuan per pig.

New Hope Group is one of the largest domestic pig farming enterprises. According to one of their managers, Tang Fan, although the price of pig feed has greatly increased, pork prices have risen much faster, so the profits of domestic pig farms have been rising.

China Animal Agriculture Association vice-chairman Qiao Yufeng said that he is optimistic about the upcoming year. The Central Economic Work Conference that just concluded stressed the importance of investment in the agricultural sector. Qiao believes this is good news for the pig industry, as is the industry's inclusion as a one of the core focuses of the 12th Five-Year Plan.

This article was edited by Rose Scobie

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