August 3, 2007

China extends insurance coverage for sows in major hog production regions

China's Insurance Regulatory Commission announced on Thursday (Aug 2) that farm sows in major hog production regions will be eligible for insurance coverage.

Sows will be insured for a sum of RMB1,000 each and the insurance premium will be set at RMB60 per head. The central and provincial governments will provide a combined insurance subsidy of RMB48 and the remaining RMB12 will be borne by farmers.

The latest move is seen as a move by the Chinese government to encourage sow production. Affected by swine blue ear disease, piglet and hog supplies had declined in some regions, resulting in soaring pork prices.

RMB1=US$0.1321 (Aug 3)