Pig prices fall in China
Increased supply and government initiatives to stabilise the pork market in China have seen pig prices fall 7% in a year.
According to analyst Mintec, Chinese pork prices have fallen due to stabilisation methods brought in after the erratic prices prior to 2011, when prices increased upwards of 80%. Since 2011, pork prices have been more stable due to the Chinese government buying stocks of pork to stabilise supplies and reduce the price volatility.
The market has also benefited from cheaper feed costs and the falling price of corn.
"This has lowered the cost of production and encouraged producers to generate more pigs," Mintec reported, resulting in Chinese pork production to increase 11% since 2011.
Mintec predicted Chinese pork production would rise a further 2% in 2015 compared to 2014.