China Expects No Jumping Pork Prices till Year End as Supply Recovers!

The prices of live pigs in China declined 5% in mid-October compared to the previous 10 days, data from the 10-day reading of National Bureau of Statistics (NBS) showed Monday.

 

Since last year, China has implemented a string of policies to stimulate hog production and stabilize pork prices affected by the African swine fever and other factors. To cushion the impact of the COVID-19 outbreak, China has ramped up its financial support by providing subsidies and loans for major pig producing counties in a bid to restore production, and pork and hog prices have gradually declined despite some fluctuations.

The reading, released every 10 days, is based on a survey of nearly 2,000 wholesalers and distributors in 31 provincial-level regions.

 

NBS announced an increase of pork prices by 25.5% in September, but the increase was the slowest pace in the last 12 months.

 

Meanwhile, the supply of pork in China is expected to continue improving and price jumps are unlikely in the remainder of 2020, as pro-hog production policies take effect and imports expand, said the agriculture ministry.

“Since the beginning of this year, local authorities have earnestly implemented a policy supporting the resumption of hog production, accelerated the expansion of farms, and put in place regular prevention and control measures for African swine fever, all of which have greatly promoted the resumption of pig production,” said Wei Baigang, chief economist of the Ministry of Agriculture and Rural Affairs.

By the end of September, the number of hogs available for slaughter had reached 370 million, Wei said.

Pork prices have continued to decline for seven consecutive weeks as hog production gains further recovery momentum, Wei said.

To ensure the stable supply of the staple meat, the country has also expanded pork imports. During the January-September period, total inflows hit 3.8 million tonnes, up 132.2 percent from the same period last year, according to Chen Guanghua, deputy chief of the ministry’s animal husbandry department. The figure has already exceeded last year’s total, which came in at nearly 2 million tonnes.

 

 

Source: Xinhua