China is encouraging pig-breeders to boost their stocks following the rapid increase in pork prices.

Soaring food prices are believed to have fueled a steep increase in the consumer price index - 5.6 percent last month, the highest in 10 years.

Central bank statistics yesterday showed that the wholesale price for live pigs saw a year-on-year increase of 85 percent last month.

On the central government's website, www.gov.cn, Xu Xihe, deputy director of the Department of Market Operation Regulation of the Commerce Ministry, said the main reason for the sharp increase in pork prices was due to low prices last year. The outbreak of blue-ear disease in some regions, and an increase in feed prices were also factors.

Analysts have warned the high price of pork will continue for some time until more pigs are raised.

Xu, however, said the rate of increase is starting to slow with the steady supply of pork to markets.

Chen Weisheng, deputy director of the stockbreeding industry department of the Ministry of Agriculture, said the live pig-raising business is beginning to pick up.

Although there has been a decline in the number of small pig-breeding farms, the large ones are on the increase, Chen said, citing the findings of 20 inspection groups sent to major pig-rearing counties recently.

"It will be better with incentives and the guidance of an encouraging policy," Chen said.

Also yesterday, the State Council released a circular urging local governments to ensure the autumn grain harvest, carry out encouraging policies to boost live pig-raising and maintain a steady market supply of non-staple food.

(China Daily August 15, 2007)