May 28, 2007

China's Premier Wen calls for stablization of soaring pork prices

Chinese Premier Wen Jiabao has asked local governments at all levels to ensure the supply of pork and maintain market order as soaring prices have sparked greater concerns in pork supplies.

The government is going all out to ensure the supply of pork and keeping it affordable, Wen said during a fact-finding trip to Xi'an last week.

In sessions with supermarket shoppers and farmers in the province, the Premier heard concerns expressed over rising pork prices while in visits to villages he learnt that rising feed prices and lower margins in recent years has caused pig inventories to fall as much as 50 percent over the last few years.

Pork and egg prices have risen in recent weeks as corn prices have remained high. Pig diseases, which have wiped out huge pig populations and farmers reluctance to restock inventories as a result, have led to shortages in the market.

According to the Ministry of Agriculture, in April live pigs nationwide were priced 71.3 percent higher than a month earlier, and pork, 29.3 percent higher.

The price of pork in Xi'an, capital of Shaanxi Province, has risen 20 percent in the space of a few days. Price increases were even steeper in Beijing, where prices rose 30 percent while prices have reached their highest in 10 years in Shanghai.

Wen said the pig production and market supply of pork is directly related to people's livelihood, and urged local governments to take relevant measures.

The premier proposed that subsidies be offered to farmers raising sows to induce production. He also urged local governments to closely monitor the quality, price and quarantine of pigs and pork products.