In China, the uncontrolled decline in prices in the pig market continued

The high cost of feed is a burden for pig producers. Slaughter animal prices are now lower than in the US . The government announces the first of three warning levels.

In China, in mid-June, an uncontrolled decline in prices on the pig market continued. Prices for slaughter pigs have fallen to such an extent that the National Development and Reform Commission has issued the first of three warning levels. This is part of a new market and price stabilization system that was launched in early June through various measures. In addition to more thorough market monitoring, the country's strategic pork stocks play an important role in this regulation and should increase or decrease depending on market conditions.

New indicators were also introduced into the early warning system, which, in addition to the dynamics of stocks, show the course of prices and their relationship at various market levels. The key indicator in the production of slaughter pigs is the ratio of the price of slaughter pigs and feed costs. For a long time, the ratio of 5.5:1 was considered a break-even point for Chinese pig production. However, due to the increase in the cost of feed, this ratio has been increased to 7:1. It has now dropped significantly for some time, which is why a first level of warning has been issued.

This is likely to increase pork stocks, but could also be an additional barrier to China 's pork imports . In any case, the Chinese market is now more than supplied with numerous ready-to-slaughter and heavy pigs, so producer prices have fallen sharply. Last Friday, the national average was 13.25 yuan (1.73 euros) per kilogram of live weight. Since the beginning of the month alone, the price has fallen by 22%, and since the beginning of the year - by 63.8%.