China improves mechanism to avoid drastic fluctuations in pork market
Chinese authorities have released a work plan to improve the mechanism for adjusting pork reserves as part of efforts to stabilize the market as it has seen frequent fluctuations.
The plan, released by several government organs including the National Development and Reform Commission, detailed multiple measures to avoid drastic movements in the pork market, with more indicators added for timely warnings of market changes.
Besides the regular indicator of measuring the cost and profit of pig farming, the work plan added another two more indexes to monitor the number of breeding sows in stock and average wholesale pork prices in 36 cities.
A three-level early-warning system will be put in place to alarm excessive ups and downs in hog prices, while pork reserves will be lifted sharply to cope with market changes, according to the plan.
While cyclical fluctuations of pork supply and prices are a worldwide phenomenon, such volatilities are especially high in China, partly because the majority of the country's pigs are produced on family farms.
After the African swine fever dealt a heavy blow to hog production and pork prices since 2018, authorities have taken a slew of efforts, including handing out subsidies to encourage scale farming, to stabilize prices of the staple meat in China.