Piglet cost accounts for 44% of total hog cost. Due to excessive brood sow inventory, piglet price slumped below RMB15/kg in Jan., down 50% on the year-on-year basis.
Feed cost, accounting for 50% of total hog cost, is anticipated to go south this year because of falling feed ingredient price. Corn price is on the fall on account of market surplus. Imported soybeans’ price slumped more than 40% in Jan. on the year-on-year basis.
It is estimated that hog production cost may drop below RMB9/kg in 2009, down 30% from last year. Hog procurement price is predicted to be RMB8 ~ 10/kg this year, down 30 ~ 50% from last year.
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