April 12, 2022

China to purchase additional 40,000 tonnes of frozen pork for state reserves

China's National Development and Reform Commission said the country will purchase an additional 40,000 tonnes of frozen pork for state reserves in its fourth round of stockpiling in 2022 to support prices, Reuters reported.

China's pork prices have remained at low levels in the past few months due to increased domestic production, while COVID-19 related measures have affected demand for the meat.

In the past three prior rounds of stockpiling, China bought 118,000 tonnes of pork.

In 2021, China's pork output was 53 million tonnes, 29% higher compared to 2020.

Since January this year, swine farmers have been making losses on pig sales, with demand affected by current lockdowns aimed at curbing COVID-19 outbreaks.

China's state planner said the additional purchase for state reserves will take place in the future, adding that live hog prices have been low for a long time and it is unlikely to decline further.

-      Reuters