May 24, 2007

China mulling "meat reserve" as pork shortage continues

Soaring pork prices in China have prompted authorities to consider setting up a "pork reserve" system to safeguard the nation's food security.

Farmers reluctance to replenish stocks due to pig diseases and high feed prices have led to a pork shortage in most cities which sent prices skyrocketing.

The Ministry of Commerce said it is coordinating with other departments and watching market moves closely while making preparation plans for a national meat reserve.

Rising wealth in China has made meat more affordable than 10 years ago, but authorities are still concerned about keeping inflation in check.

China's inflation rate, currently at seven percent, is only one percent if food is discounted. Rising grain prices are a source of concern.

Pork prices have increased 10 to 20 percent in most cities while prices have doubled from year-ago prices in some cities.