March 15, 2010

China to buy pork as reserves to prevent greater price fall

China's economic planner said Friday (March 12) it will take measures such as buying pork in the domestic market as reserves at an appropriate time to prevent a further fall in pork prices.

The recent fall in pork prices was due to lower demand after the Lunar New Year holiday, as well as some outbreaks of hog diseases, which caused breeders to slaughter the hogs earlier than planned, said the National Development and Reform Commission's (NDRC).

According to plans issued last year, the government will take measures that may include buying frozen pork to prevent sharp pork price declines if the price ratio between pork and grains falls to between 6:1 and 5.5:1.