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The surging pork prices might be causing pain for consumers, but it's good news for farmers. They're finally starting to make some solid profits.
The pork price remained low in the first half of the year, causing a deficit for pig farmers. They needed to support themselves with bank credit.
Lu Yan, Manager of Pig Farm, Anhui Province said "The lowest price is around 4 yuan per 500 grams. We lost 400 yuan per pig."
Lu Yan says pork prices have been unstable in recent years. And with the likelihood of ending the year with a deficit, many farmers quit.
Lu Yan said "Small pig plants quit their businesses. Because if you don't have the money, you cannot feed the pigs."
Lu Yan invested millions of yuan in his meat plant... too much to let it go. He owes almost a million yuan to the bank. But now things are looking up. And one pig can fetch 300 yuan.
Li Tao, Expert of Zhougudui Wholesale Market said "Farmers used to be in deficit. So the recent price surge is reasonable."
Analysts say price could continue to increase in the near future, because time is needed for pigs to grow.
- Pork price continues to rise in China 2010-09-07