February 21, 2022

China provinces increase pork reserves

Many China provinces have purchased more pork to increase stock to support declining prices in the past few months, as the government seeks to stabilise supplies and the prices of meat, eggs and vegetables post-Spring Festival, Global Times China reported.

Wholesale pork prices have gown down in the past week. Data from China's Ministry of Agriculture and Rural Affairs showed average pork prices at a national agricultural wholesale market was CNY 19.76 (~US$2.53; CNY 1 = US$0.16) per kg, 5.68% lower compared to Friday the week prior.

Wang Zuli, deputy researcher at the Institute of Agricultural Economics and Development of the Chinese Academy of Agricultural Sciences, said demand for pork has increased, but prices are expected to drop as market supply continues to grow thanks to China's swine production recovering.

China's National Development and Reform Commission (NDRC), the country's top economic planner, urged local governments to purchase more pork for reserves to stabilise prices and swine production.

Sichuan and Hubei province have begun pork purchases and storage. The Ningxia Hui Autonomous Region in February 11 announced it will buy pork, urging slaughterhouses to make better supply decisions to sustain swine production at a reasonable level.

Wang projected that prices of pork will stay depressed this month and rebound in the second half of 2022 when overall swine supplies are expected to decline locally.

-      Global Times China