With fewer pigs, livestock giants make more money
豬肉價格創三年來新高

The Chinese pork industry is pulling in high profits, with prices reaching a three-year high. The problem is there aren't enough pigs this year, and companies in the industry are reaping the benefits.

While the summer months are traditionally slow for China's pork sales, prices have been soaring since April. The retail price has surged as much as 30 percent to more than 30 yuan per kilogram. Retailers say they are paying more as well.

Analysts say the immediate cause of the rising price is the reduced stock of breeding sows and live pigs nationwide. According to China's Ministry of Agriculture, the number of breeding sows this June dropped by 14.8 percent year-on-year to a 22-month low. The live pig population was also down by 10 percent compared to the same period last year.

Listed companies in the livestock industry are becoming more profitable, however, due to the recent price rises. The National Development and Reform Commission told its regular weekly briefing on Tuesday that the recent rise was determined by the market, and that prices will return to normal after a period of adjustment.

Pork accounts for 2.9 percent of the Consumer Price Index. Analyst Zhong from Sinolink expects the pork price rise will drive up the full year's CPI inflation to 1.3 percent, which would still be well below Beijing's target of "around 3 percent" for this year.