April 10, 2008

China to give out substantial subsidies to hog producers

China's National Development and Reform Commission (NDRC) announced on April 8 that it would extend subsidies to large-scale producers of hogs to boost food supplies and control inflation.

The government would give RMB1 million to each hog breeding farm that has at least 500 sows, has no previous outbreaks of hog diseases and located far from the cities.

Meanwhile, hog raisers with annual outputs between 500 to 2,999 heads of hogs would receive financial assistance ranging from RMB200,000 to RMB600,000. Hog raisers who supply more than 3,000 heads of hogs every year would receive RMB800,000.

According to Xinhua News, China's inflation rate soared to 8.7 percent in February, the highest in 12 years.

RMB1=US$0.1428 (Apr 10)