(Yicai Global) Dec. 4 -- Pork prices in China, which have surged this year on the back of an African swine fever epidemic, have fallen almost 21 percent from a peak as government policy and the market spur hog production, the agriculture ministry said.

The cost of China's main source of protein slid for four consecutive weeks, according to the ministry's monitoring data of 200 wholesale markets. The average price was CNY41.48 (USD5.90) per kilogram on Dec. 1, down from a high of CNY52.40 on Nov. 1.

October's sow stock rose 0.6 percent over the previous month, logging the first gain in 19 months, the data show, indicating that production has begun to recover.

The number of sows is rising, and the decline in live hogs has flattened out, Yang Zhenhai, chief of the ministry's Animal Husbandry and Veterinary Medicine Bureau, said on the agency's website yesterday.

China has been dealing with many separate outbreaks of African swine fever since last year, which resulted in large-scale pig culling. An array of government policies have been implemented to support the sector and bring the situation back to normal. China aims to restore its pig herd to about 80 percent of the usual level by the end of next year, Yang said on Nov. 22.

Breeding at large piggeries is also resurging. The number of hogs in pig farms with over 5,000 animals has gained for three straight months. Production is also reviving in more regions. The live hog herd is picking up quickly in North China and has rebounded in Heilongjiang, Shaanxi, Henan, Jilin, Shandong, and Anhui and six other provinces. The decline in South China has slowed.

Last month's production should be even better based on this trend, Yang said, though the data is not fully in, he added.

Pork imports have escalated this year, up about 44 percent in the first three quarters, and even more this quarter, Yang said, adding that the market has high hopes for overall supply, so no further increase is imminent.

Editor: Ben Armour