China provides subsidies for the pig sector
Subsidies up to CHY5 million (700,000) will be given to pig farmers that are focusing on expanding their operations and to big farms that are looking to repopulate and consolidate their position in the market, announced China's National Committee of Development and Reform, according to Xinhua news agency.
After a decline of 33% in the national pig inventory due to the African swine fever (ASF) crisis, the Chinese government intends to stimulate the sector by giving subsidies to large pig breeders in the country. Nevertheless, observers are warning that the losses can be even higher than that.
The government's offer will not surpass 30% of the total investment made by the pig producers and, according to voices in the industry, will benefit the first 40-50 enterprises in the country. Also, the money is enough to cover the 20% of the construction cost for a modern farm, without including the location costs or the livestock. Since June, pork prices in the country have spiked to the level of $4.50/kilo due to a shortage in supply in the domestic market. Currently, China has increased the imports of pork, beef and sheepmeat due to the ASF situation and the trend is expected to continue in 2020. Until now, none of the large farms in China hasn't given any signal of herd rebuilding.