To curb rising pork prices due to shortages in China, the central government will release more frozen pork reserves to increase market supplies, the Ministry of Commerce announced on August 29.
According to the National Bureau of Statistics, pork prices increased 18.2 percent in April, 14.4 percent in May, 21.1 percent in June and 27 percent in July.
Such price fluctuations are normal, wrote Xu Lifan, a commentator with The Beijing News. Xu explained that feed prices often affect pork supply. Rising forage prices make raising pigs unattractive for farmers. This triggers a greater demand for pork, which incentivizes farmers and curbs prices.
However, the most recent pork price hike is from the outbreak of African swine fever last year, Xu explained, which reduced China’s breeding stocks.
Meanwhile, farmers are more likely to wait for prices to increase before selling their pigs to slaughterhouses.
Under these circumstances, governments at all levels provide subsidies for farmers to encourage pork production and for low-income groups to afford pork.
Authorities have lifted quarantines for swine fever in 25 provinces and autonomous regions, which will further curb pork prices.
Xu predicted pork prices would decrease in the next three to six months.
There are lessons to learn from this drastic pork price rise, Xu said. More coordination between provinces should have been made to curb the spread of African swine fever more efficiently. More big pig farms should be encouraged. And speculative investment on pig prices should be supervised.
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