July 5, 2022
China plans measures to stop rapid pork price increases
China's National Development & Reform Commission (NDRC) said it will take measures such as adjusting reserves to stop rapid pork price increases if required, after the pork prices steadily increased over the past three months, Bloomberg reported.
The country's state planner also said it will collaborate with other organisations to "severely punish illegal activities, including fabrication and dissemination of information about rallying prices and price gouging."
The NRDC requested that major hog farmers maintain normal output, sell their hogs as soon as they are ready for the market, and refrain from hoarding them.
In a meeting between the NRDC and representatives of pork and slaughter companies, it was concluded that the recent price increases for China's most popular protein have been largely driven by irrational hoarding sentiment. From mid-March to late-June, pork prices increased by 28%, according to government statistics.
Pork, which is the food item with the largest weight in China's consumer price index and could increase inflation risks, has recently experienced supply problems. The slow overall growth in consumer prices has been largely attributed to a price slump that occurred last year.
The NDRC said there is no basis for a sustained significant increase in swine prices given the weak consumption. Current swine production capacity is generally adequate and reasonable.
It also said that major pork firms have made a commitment to maintain a regular output pace.