Pork prices may rise in the second half of the year as farmers respond to recent low meat prices and high feed costs by reducing livestock numbers, state media reported. The average pork price was RMB17 (US$2.49) a kilogram in March, down 7% from February, according to the Ministry of Agriculture. In the first two weeks of April it fell further to RMB16 a kilogram. At the same time, corn prices had risen for 21 consecutive weeks by the end of March while pig feed prices were up 9% year-on-year. The government responded with two purchases of livestock in April in an attempt to stabilize prices. The Ministry of Commerce claims that prices have gained 1.3% in the last week. However, Liu Yonghao, chairman of New Hope Group, a Chinese agribusiness operator, warned that government purchases are just a temporary measure. He sees a switch to more intensive farming as the only long-term solution.
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