June 27, 2012

China calls on farmers to slash pork output

To stabilise the price of pork, the government of China has called on pig farmers to reduce their supply, the country's top economic planning body said on Monday (June 25).

The price of pork, a staple in the Chinese diet and a key factor in inflation trends snapped a four-month decline recently after tumbling more than a third from a last year as Beijing stockpiled frozen meat to stem losses among farmers.

Consumer prices have moderated in China this year, but Beijing remains wary of any flare up in prices pressures.

"We suggest pig producers adjust their feeding habits and modestly reduce the number of productive sows to change the situation of pork supply exceeding demand as soon as possible," the National Development and Reform Commission said in a statement on its website, www.ndrc.gov.cn.

The commission said the government would keep a close eye on pork prices to stem losses incurred by pig farmers.

But some analysts warned that China's pork prices may jump in the coming months when a disease outbreak among piglets earlier this year works its way through the supply chain.

A slowing economy pushed down China's annual consumer price inflation to 3% in May, below expectations and the lowest level since the middle of 2010.