China starts frozen pork purchases for state reserves

The Chinese Ministry of Commerce (MOC) is now cooperating with the related departments to purchase frozen pork for state reserves through open bidding.

The move is aimed to stabilise pork prices. Latest data from the Ministry of Agriculture show that hog prices continued to fall last week (April 5 to 9), a consecutive drop for 14 weeks running. Meanwhile, pork prices displayed downward trend for 13 straight weeks.

The MOC had already purchased some frozen pork in drought-stricken areas such as Yunnan province and Guangxi Zhuang Autonomous Region.

At the beginning of April, the ministry decided to buy 30 million tonnes of frozen pork in Yunnan.

The government will arrange frozen pork purchases in the following period according to market situations, said the MOC. Analysts said that large pig slaughter firms, farms and feed producers are expected to benefit from the state purchase policy.