June 14, 2021
Work plan to help alleviate fluctuations in China's pork market
Authorities in China have released a work plan to improve the mechanism for adjusting pork reserves as part of efforts to stabilise the market that has witnessed frequent fluctuations.
The plan, released by several government bodies including the National Development and Reform Commission, detailed multiple measures to avoid drastic movements in the pork market, with more indicators added for timely warnings of market changes.
In addition to the regular indicator of measuring the cost and profit of pig farming, the work plan added another two more indexes to monitor the number of breeding sows in stock and average wholesale pork prices in 36 cities.
A three-level early-warning system will be put in place to alarm excessive ups and downs in hog prices, while pork reserves will be lifted sharply to cope with market changes, according to the plan.
While cyclical fluctuations of pork supply and prices are a worldwide phenomenon, such volatilities are especially high in China, partly due to the majority of the country's pigs being produced on family farms.