February 20, 2014
China announces pork purchase scheme to bolster hog prices
The Chinese government announced on Wednesday a pork purchase plan to stabilise depressed hog prices, as production of live pigs remain high, reports Chinese media Xinhua.
The move will prevent excessive decline in prices of live hogs, stabilise husbandry and protect farmers, the National Development and Reform Commission (NDRC), China' top economic planning body, stated on its website.
The NDRC expects prices will drop further in the coming months when consumption is traditionally low, and advised farmers to adjust the scale of their business according to market prices.
Prices of live hogs have fallen since mid-December. Wholesale prices fell 1.1% in the first two weeks of February year on year after a 1.9% drop in January, the statement said.
Pork is the staple meat in China, and plays a major role in calculating inflation. Inflation rose 2.5% on-year in January, with prices of pork down 4.3%.