May 13, 2009

China's State Council said in a circular that it would implement the policies to subsidise the live hog industry as soon as possible.

For instance, the Chinese government will offer subsidies to hog breeders for frozen high-quality semen of live hogs and cows and for sows that can give birth. Furthermore, it will put a premium on those counties which supply the most number of live hogs to other regions.

Analysts said these measures are aimed at developing a stable animal and husbandry sector and they will be of great significance to the waning live hog breeding sector amid the AH1N1 flu outbreak.

Meanwhile, China's National Development and Reform Commission (NDRC), the state planning agency, has started to implement a plan to control the decline in hog prices, the official Xinhua News Agency reported Tuesday (May 12).

The plan initiated by NDRC, which was not further elaborated by Xinhua, was in response to early signs of an oversupply of hogs and the commission has suggested breeders to pay close attention to the demand-supply situation.

In mid-January, the government announced a series of measures aimed at preventing any possible long-term decline in pork prices in order to ensure a steady output and help protect breeders' income.