June 21, 2021

National warning issued by Chinese authorities as hog prices plunge



Authorities in China have issued a 'third-level' warning of an excessive slump in hog prices, urging pig farmers to adjust their plans to stabilise supplies.


The National Development and Reform Commission (NDRC) said increasing hog supplies and pork imports, as well as retreating seasonal demand, have combined to drive down hog prices. The commission pledged to closely monitor price fluctuations and adjust reserves to ensure stable operation in the hog market.


Since 2021, hog prices have trended down for several consecutive months. Data from the National Bureau of Statistics showed that hog prices went down 11.2% in early June compared with late May.


The third-level alert is the lowest in the newly-introduced warning system to alert the market to excessive fluctuations in hog prices.


While cyclical fluctuations of pork supply and prices are a worldwide phenomenon, such volatilities are especially high in China, partly because the majority of the country's pigs are produced on family farms.


- Xinhua