(Yicai Global) July 20 -- Pig farmers should not get involved in market speculation even though hog prices have fallen sharply, causing losses for many in the industry, according to an agriculture ministry official.

Breeders should not delay selling pigs or speed up slaughtering due to speculative strategies, Xin Guochang, an inspector with the ministry’s animal husbandry and veterinary bureau, said at a press briefing today.

Prices have fallen mainly because capacity has been recovering and supply is increasing, he said. Large abattoir firms slaughtered 22 million pigs last month, up 66 percent from a year ago, per official statistics.

The National Development and Reform Commission, the country’s top planner, issued warnings about substantial falls in pig prices on June 16 and again on June 28. The NDRC has bought and stored 33,000 tons of pork, temporarily curbing the decline in market prices.

Consumption of the meat is expected to increase in the second half of this year, and supplies will also keep going up, though overall supply and demand will be balanced, Xin added.

The cost of pork dropped 36.5 percent last month from the same period last year, the biggest decline this year. It retailed for CNY24.6 (USD3.80) a kilogram as of the end of last month, down 50 percent from a high of CNY59.64 in February last year.

Editor: Tom Litting