May 19, 2009
China to stabilise pork prices with refrigerator plants
The central Chinese government is accelerating the construction of pork refrigerator plants for state reserve in a bid to stabilise pork prices in the market, said Yao Jian, spokesperson with China's Ministry of Commerce (MOC).
China's pork prices have fallen continuously due to the increasing live hog supplies and declining pork consumption.
On May 10, 2009, the average wholesale price of pork in large- and medium-sized Chinese cities stood at only RMB14.49/kg, falling 22.2 percent from the beginning of this year and 33.6 percent compared to the same period last year.
At the moment, ministries under the State Council are planning related policies and implementing measures to prevent pork prices from excessively declining, which is essential to ensure stable production and firm development of the pork industry.
If the live hog-corn price ratio, which is regarded as an indicator for pig raising profitability in the country, is below between 6 to 1 and 5.5 to 1 for four consecutive weeks, China will start to procure pork for state reserve.
