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Pork producers see boom, fear bust

Chinese pork prices surged 57% year-on-year in June, stoking inflation and worries among pork producers that the current boom will lead to a profit-driven expansion in supply and eventually a plunge in prices, state media reported. This year’s price increase is reminiscent of 2008, when soaring pork prices fueled industry expansion. That resulted in a supply glut and falling prices in 2009 and 2010. “The alternation of profit-making and loss-making years is a common complaint among pig farmers. Instead of extravagant profits, we now pray more for a stable price and a reasonable profit,” said Yin Zhongquan, a pig farmer in southwest China’s Sichuan province. China leads the world in pork production and consumption volumes, yet its supply comes mostly from small family farms, which helps create price fluctuations.

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