CHINA: Strong increase in pork prices
The prices of slaughter pigs in China continue to rise, which is a thorn in the side of the government, which is striving for market stability. According to a recent national survey, the average price was the equivalent of €3.51 per kilogram live weight; that was around 60% more than at the beginning of 2022 and around 125% more than a year ago. According to the National Development and Reform Commission (NDRC), pork prices in 36 larger locations were more than 30% above the previous year's level and thus in the second of three warning levels.
The government is reacting to this by outsourcing central state pork reserves. In September there were already three releases totaling 70,000 t and last week another outsourcing was added. According to the NDRC, most provinces have also started releasing their reserves, so that around 200,000 additional tons of pork came onto the market in September, more than ever before in one month. The pork is delivered to regional dispensaries, where it is sold at discounted prices. Some provinces also pay financial grants to private pig farmers to increase supply. So far, however, all this has not really been able to stop the price increase.
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