The government began the purchases for state reserves in an attempt to reverse a steady decline in Chinese pork prices since the Chinese New Year holiday, reports Asian Agribiz.

This is expected to bolster prices and improve farmer returns. Under the Hog Price Alert programme launched in 2009, the central government typically begins purchasing pork for reserves when the hog to grain price ratio falls below 6:0 for four weeks. This ratio fell below 6 in late February and has remained there ever since.

While no official announcement of the purchases has been made, industry officials believe they are at the direction of central authorities under the nationwide price alert programme. Pork prices are expected to pick up this summer fueled by lower sow numbers and declining piglet inventories.