Chinese authorities may draw on strategic pork reserves to lower prices. Pork prices in the world’s second-largest economy jumped late last month. Due to lower market supply, pork prices rose 32% from June 2021.
According to the National Development and Reform Commission (NDRC), irrational behaviors such as stockpiling food and reluctance to sell in the live pig market have been observed.
The NDRC said the restraint was aimed at boosting profits and instructed major suppliers to slaughter pigs at a “regular rate” and reminded them not to hoard pigs.
On Tuesday, the commission added that it was considering “a release of central pork reserves.”
It also instructed the local government to release supplies “in a timely manner” to prevent a sharp rise in prices.
Pork prices have fallen sharply after African swine fever hit domestic herds in recent years, driving up consumer prices.
For 2019, authorities announced they would free up space to bring pork production back to pre-pig levels. In addition, authorities released supplies from reserves to control rising costs.
Pig experts from the Ministry of Agriculture and Rural Affairs said pig farmers are turning their losses into profits as pig prices continue to rise. Farmers earn about 60 yuan per animal.