March 8, 2022

China plans to buy 38,000 tonnes of frozen pork for state reserves

The China Merchandise Reserve Management Center said the country will buy 38,000 tonnes of frozen pork for its central state reserves on March 10, 2022, Reuters reported.

The purchase comes as China looks to support swine prices after a sharp drop and follows last week's initial round of stockpiling in 2022.

Farmers in China are facing massive losses because of declining pork prices and increased feed costs.

Analysts said lasting losses could push some farmers to exit the market, which will result in lower pork production.

China's swine herd was decimated by an African swine fever outbreak that push pork prices up and boosted the consumer price index.

China has steadily recovered its massive swine herd and stablising production has become a major policy focus for the government.

-      Reuters