Hog shortage perks up pork prices

Pork prices rose in China for a third consecutive month in July, a lean period for sales, due to a significant reduction in the number of hogs available for slaughter, industry sources said.

In July, streaky pork prices were hovering at 27.27 yuan ($4.4) a kilogram, up 15.6 percent from the levels seen in April. Prices for pork hind legs were 27.04 yuan a kg, up 16.6 percent from April, according to data provided by the National Bureau of Statistics.

Industry sources said such high prices for pork have not been heard of in the last two years. The previous spike in pork prices occurred between June 2010 and June 2011. Since then, the commodity prices have been constantly falling and many farmers incurred huge losses. The falling yields led to a huge shortfall in the number of pigs available for slaughter and sows, which in turn perked up prices.