March 1, 2022

China to purchase pork for its central state reserves

China's National Development and Reform Commission said it will start purchasing pork for its central state reserves to support prices and stabilise pork supplies, Reuters reported.

The state planner will work with other departments to launch pork stockpiling for state reserves. They will also guide local authorities to actively purchase pork for local reserves.

Swine prices have declined after the Lunar New Year holiday, as excess supply and low demand affected the market.

Swine prices in Luohe, Henan province, dropped 10% since the Lunar New Year to CNY 12.60 (~US$2; CNY 1 =. US$0.16) per kg, as farmers in the major pork producing province lose CNY 408 (~US$64.63) per swine.

Beijing, Chongqing, and Hubei have begun purchasing pork for local reserves. Other regions will launch their stockpiling efforts soon.

The state planner did not specify the volume of pork it will purchase for state reserves.

-      Reuters