Pork Price Reached Record in China

The price of Pork, the main meat consumed in China, surpassed its previous record in June, even as the fight against inflation is a priority for the government.

The average price of pork rose last week to 27.67 yuan (2.98 euros) per kilogram, exceeding the previous record of 26 yuan per kilo dating back to 2008, according to Feng Yonghui, an analyst from website www.Soozhu.com, specializing in the pork market, quoted by China Daily.

The price of live pig was 18.57 yuan (2.00 euros) last week, against 17.20 yuan in April 2008.

“The price (pork) will continue to rise until the end of the year,” warned Zhu Baoliang, an economist at the Information Center of the State.

The price of corn, which accounts for 60% of the food for pigs reached a record high in March, has pushed up the pork. This increase could result in higher prices for cereals and vegetables, because the Chinese will compensate for less meat consumption, according to Feng.

To contain the rise in pork prices, the government can draw on its reserves, but it would have only limited effect in a situation where supply is limited by the mass slaughter of the last year due to very low price, according to Zhu.

The fight against rising consumer prices, which rose to 5.5% year on year in May and 11.7% for the food prices is a priority for the Chinese government.

Last week, prices of fruits and vegetables in the eastern province of Zhejiang recorded increases of up to 40% after the torrential rains that destroyed crops.

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In order to curb inflation, the Chinese central bank has made six increases in bank reserve requirements since the beginning of the year, limiting the amount of money they can lend.

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