September 18, 2007

China rewards US$200 million to top counties in pork production

China said Monday (Sep 6) it was offering RMB 1.5 billion (US$200 million) to 253 counties for their efforts in boosting pork supplies and alleviating the pork shortage in the nation.

The Ministry of Finance said that the money would help counties improve their pig farms, buy pedigree pig breeds and purchase animal feed.

Counties eligible were those that delivered more than 800,000 hogs to slaughterhouses each year, those which offered 600,000 to 800,000 hogs for sale, or those who averaged more than one butchered hog per resident per year, according to the ministry.

Soaring meat prices were responsible for pushing the country's inflation to the highest in 11 years, prompting authorities to implement a series of measures which boosted meat supply.

A senior economic planner said earlier this month that the pork shortage would not ease substantially until the second quarter of next year. However, authorities are trumpeting the fact that pork prices had fallen 11 percent in the past one month, signaling an easing of the pork shortage situation.