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·         State Council rolls out new policy to support pork production, ensure stable supply

… rolled out a new policy on Tuesday to support the pork industry and ensure stable supply… The policy aims to make the market play a decisive role in resource allocation, and targets a self-sufficiency rate of 95 percent for hog production. It also aims to make the proportion of large-scale pig farms account for 58 percent of the nation's total hog production by 2022… Provincial governments have been ordered to fully implement designated subsidies for affected hog producers and banks have been told not to cut loans to hog producers and slaughterhouses…

·         China’s tapping its strategic meat reserves as pork prices soar 47%

… prices have risen to worrying levels—food price data from China on Tuesday (Sept. 10) showed pork prices rose 47% in August, after rising 27% in July…

 

 

State Council rolls out new policy to support pork production, ensure stable supply

 

Source:Global Times (China) 

2019/9/10

 

The State Council, China's cabinet, rolled out a new policy on Tuesday to support the pork industry and ensure stable supply.

 

The policy focuses on how to ensure resilient supply amid the effects of African Swine Fever (ASF), which has seriously cut hog breeding.

 

Li Guoxiang, a research fellow at the Rural Development Institute of the Chinese Academy of Social Sciences, told the Global Times on Tuesday that ASF has reduced China's hog production by 10 million tons or 20 percent of the total.

 

The policy aims to make the market play a decisive role in resource allocation, and targets a self-sufficiency rate of 95 percent for hog production. It also aims to make the proportion of large-scale pig farms account for 58 percent of the nation's total hog production by 2022.

 

That ratio will be further improved to surpass 65 percent by 2025 and the treatment level for pig waste, a big environmental issue, is set to reach 85 percent by that time.

 

Localities will take the responsibility for bolstering hog production with measures that support land use, investment, financing, and quarantine services. Mayors will be tasked with returning hog production and supply to the normal level as soon as possible.

 

The eligible time for interest deduction on funds used to construct pig farms will be extended to December 31, 2020, according to the State Council policy, which was posted on the Chinese government website on Tuesday.

 

Provincial governments have been ordered to fully implement designated subsidies for affected hog producers and banks have been told not to cut loans to hog producers and slaughterhouses...

 

more, including links

http://www.globaltimes.cn/content/1164236.shtml

 

 

China’s tapping its strategic meat reserves as pork prices soar 47%

 

By Tripti Lahiri, Quartz  

September 10, 2019

 

The soaring price of pork is forcing China to dig into its strategic frozen reserves of the meat this month ahead of a slew of upcoming holidays, including a fall festival where families gather for a reunion feast. Pork is China’s most consumed meat.

 

Since last year, Chinese farmers have engaged in massive slaughter of herds to prevent the spread of African Swine Fever, a disease lethal to pigs but harmless to humans. The current outbreak was first detected in a herd in China last August, according to the UN Food and Agricultural Organization. China says its pig herd shrank by a third in July, according to Reuters. As a result prices have risen to worrying levels—food price data from China on Tuesday (Sept. 10) showed pork prices rose 47% in August, after rising 27% in July.

 

Prices are currently about 30 to 33 yuan a kilogram ($4.2 to $4.6). A Chinese meat industry association estimates pork production could drop as much as 20% this year, or about 10 million metric tons.

 

It’s hardly possible to overstate the importance of pork to meals in China, where per capita consumption of pork was roughly 30 kilos per capita in 2017, consumed as stuffing in dumplings, on noodles and in soups, or as ribs. After particularly severe price crises in 2007 and 2008, again due to an outbreak of disease, China set up frozen reserves of pork a little over a decade ago, and also has reserves of live hogs.

 

China’s government is clearly perturbed—top officials have spoken about the price rise and the government has announced subsidies for setting up new farms, removed tolls for the transport of live pigs and frozen pork until June next year, and urged lenders to finance pig farming endeavors. Several provinces and cities have announced plans to tap reserves—the southern city of Guangzhou will release 1600 metric tons (1763 tons) (link in Chinese) of frozen pork this month at a discounted price to supermarkets and school cafeterias.

 

While farmers in the US have been wanting to sell more pork to China, the trade war has raised tariffs to 62% on US pork products. Instead, China is turning to Brazil and Spain, one of the world’s top pork exporters, to add to its supply.

 

The epidemic has been disastrous for many farmers...

 

more, including  links, chart

https://qz.com/1706016/chinas-pork-prices-went-up-47-percent-in-august/