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27

2022

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09

China's Pig Prices Touch the Second Warning Level Triggering the Fourth Round of Pork Stocks Releasing

Source:

Global Times; OIG+X

China's Pig Prices Touch the Second Warning Level Triggering the Fourth Round of Pork Stocks Releasing; Major Hog Farms Pledge to Increase Production Before the National Day

 

The National Development and Reform Commission (NDRC), the country's top economic planner, stated on Sept 27 that the weekly average retail price of lean meat in 36 large and medium-sized cities increased by 30% year-on-year last week (Sept 19-23), confirmed being an excessive rise entering the second-level warning range. Based on the provisions, the state will guide local governments jointly release the fourth batch of central pork reserves this week.

 

Top producer Muyuan Foods said in a statement on its official WeChat on Saturday that in order to ensure that prices stay within a reasonable range and market pork supply is sufficient, the company will increase the supply of pigs for the holidays.

 

Guangdong Wens Foodstuffs Group said on its WeChat account on Saturday that the company will increase the supply of pork for the National Day holidays and work to keep prices reasonable.

 

Recently, pork prices have been at record highs. According to the Ministry of Agriculture and Rural Affairs, the average price in the wholesale market nationwide hit 31.08 yuan ($4.36 yuan) per kilogram on Friday, up 1.2 percent from a week earlier.

 

Prices are expected to keep growing at least until mid-2023, but the rate of increase is likely to be modest under the price stabilization mechanism, Wu Chaoming, deputy head of the Chasing Research Institute, told the Global Times.

 

"The national regulation mechanism to stabilize prices will slow the rate of price hikes," Wu said.

 

The NDRC suggested that that breeding farms make reasonable arrangements for production, keep up the normal pace of hog breeding, and not blindly stock up on pigs.

 

The price of pork, a staple meat in the country, weighs heavily on the consumer price index (CPI) and Chinese people's livelihood.

 

China's CPI rose 2.5 percent year-on-year in August, slowing from a 2.7 percent rise for the previous month and falling below market expectations, data from the National Bureau of Statistics showed.

 

"The CPI is expected to rise 3 percent year-on-year in September. Rising pork prices are expected to have a significant pull effect on the CPI data," Wu said.