Pig breeders to get $152m subsidies
CHINA - The government is to contribute 1.15 billion yuan ($152 million) toward sow insurance payments in a bid to curb the soaring pork price, said the Ministry of Finance (MOF).
2 August 2007
2 minute read
"We've embarked on the project in central and western areas," said the ministry in a statement.
The first subsidies, 558 million yuan, will be in place very soon.
"We've embarked on the project in central and western areas," said the ministry in a statement. The first subsidies, 558 million yuan, will be in place very soon.
Under the new rule, the central government will pay 50 percent of breeders' sow insurance premiums, with a further 30 percent coming from the municipal government. Farmers will then have to contribute just 20 percent.
Pork production has fallen dramatically in recent months, mostly because of pig breeders' dampened enthusiasm due to rising food costs and falling prices. Many were also hit by the massive pig culls that followed outbreaks of blue-ear disease.
With fewer pigs being reared, pork prices have escalated.
In June, the wholesale price was up 74.6 percent year on year, while the average retail price for lean pork exceeded 22 yuan per kilogram.
