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GUANGZHOU: Pork price may have reached its peak in Guangzhou and there wasn't big change in price in more than a month, but a fall in price is still far from sight, an official and pork vendors said.

"The average price has been staying at a level of 31 yuan per kilogram since July 15," said Wu Linbo, vice-director of local price-monitoring bureau.

A pork seller at a wet market in the city's Zhuhai District, who only gave his surname as Li, said he got pork from wholesalers at a price of 21 yuan per kilogram and sold them at 32 yuan for more than one month.

"We haven't seen any big price change since July," Li said. He has been selling pork in the market for five years.

Other markets also witnessed a stable price in the past 40 days.

The situation has prompted some food companies to believe the skyrocketing pork price has been halted, Wu said. "It seems that customers won't have the nightmare again."

The news also bodes well for Hong Kong, which imports 80 percent of pigs from the mainland.

Pork price surged more than 70 percent on the mainland in the first half of the year due to the shortage of pigs, which triggered a price hike of as much as 30 percent in Hong Kong.

Wu said the current stable situation in Guangzhou was a result of the central government policy of encouraging pig raising. "New supply has been gradually released into the market."

However, the market monitor said price would not drop dramatically until the Spring Festival, which falls on February 7, 2008.

A pig-raising takes usually six months, so people have to wait for several more months before the supply is fully boosted, Wu said, adding that a swelling demand in the coming months will also keep the pork price at a high level.

There are four festivals in the coming months - Mid-Autumn Festival, National Day Holiday, New Year and Spring Festival.

Pork demand is usually higher around major Chinese festivals and holidays.

(HK Edition 08/22/2007 page6)