China asks pig breeders to sell more hogs to cool prices
World pork prices are currently soaring
21 October 2022
2 minute read
By: China's state planner has increased its coordination with large-scale pig breeders to ensure stable hog supply, as it tries to cool soaring prices in the world's biggest pork market, Reuters reported, citing the authority as its source.
Live hog prices hit 28 yuan ($3.87) per kilogramme in some regions last week, levels not seen since March 2021 when China was still battling a shortage of pigs following the African swine fever epidemic.
Large producers have agreed to "undertake social responsibilities", said the National Development and Reform Commission (NDRC) in a statement on its official Wechat account.
The companies, who were not named by the NDRC, will take the lead in ensuring supply and price stability in the market, release fattening pigs in a timely manner, and speed up the pace of slaughtering when necessary, it added.
The move should work to bring down prices, said Pan Chenjun, senior analyst at Rabobank, after a series of earlier measures failed to slow the rally.
Top producer Muyuan Foods Co Ltd. has increased slaughter volume, it said on Sunday in response to an investor question on an interactive platform.
Beijing has already issued several warnings to farmers urging them to stop holding back pigs from slaughter to wait for higher prices.
Slaughter weights have risen to as much as 150 kilogrammes, from a normal weight of between 100kg and 120kg, said Rabobank's Pan.
However the state planner's move will only have a short-term benefit, she said.
"The fundamental issue is tight supply."
Rising hog prices are pushing up consumer inflation, which rose in September at the fastest pace since April 2020.
