China's pig prices recently hit a record 18.8 yuan (US$2.88) per kilogram due to the cyclical live-pig supply shortage and rising feed costs, according to reports.
Prices for live pigs currently stand at 17.52 yuan (US$2.69) per kilogram, a year-on-year increase of 87%, and average pork prices have hit 26.97 yuan (US$4.14) per kilogram, a 79% increase from 2010 numbers. The price surge, which began in June 2010, is expected to continue, according to analysts, as corn prices continue to rise and a pig shortage persists. "Although we can gain about 600 yuan from a live pig, no one wants to take the risk of raising more pigs since the market is unstable," said Wang Shoujing, a pig farmer from Tancheng County in the city of Linyi in Shangdong.
The pig shortage will last for as long as it takes the supply cycle, which runs roughly 12 months, to complete, according to farmers. In the meantime, feed prices will continue to keep pork prices high.