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By Song Hongmei (chinadaily.com.cn)
Updated: 2007-09-06 13:47

Wholesale pork prices fell on average for the fourth week in a row from August 27 to September 2, down 2.8 percent over the previous week, figures from the Ministry of Commerce showed yesterday.

Last week, of the 31 major cities monitored by the ministry, prices of pork , a staple in China, dropped in 19 cities. Prices in some cities fell more than 10 percent.

The price decline is a result of efforts that began last month by the government and producers to increase supply. Also, some producers, who worried that pork prices would continue to drop, sold their pigs ahead of schedule, according to the ministry.

Due to short supply and mounting costs of inputs, the prices were up 70.3 percent year on year at the end of last month, according to figures from the National Development and Reform Commission. It had almost doubled over the last seven months.

However, Jiang Zengwei, vice minister for commerce, said pork prices will remain high because demand will increase as the weather gets cooler.

Although pork price hikes and related governmental policy incentives have encouraged farmers to raise more pigs, the process still takes time, said Jiang.

Last week, of the major edible farm products monitored by the ministry, prices of wholesale beef and mutton rose 0.3 percent and 1.8 percent respectively.

Retail prices for chicken rose 0.3 percent last week while egg prices fell by 0.3 percent in the same period.

Prices of aquatic products dropped 0.6 percent last week with all freshwater fishes becoming less expensive than the previous week.

Due to the recent good weather and harvesting, vegetables prices also dropped by 0.5 percent, although fruits prices grew by 4.6 percent.

Prices of grains also rose 0.2 percent. As the weather gets cooler, paddy demand will remain strong and prices are likely to rise steadily, predicted the ministry.