New Round of Pork Purchasing Looms; Policies Help Prices Recover21 May 2013
CHINA - China will soon start a second round of pork purchasing to shore up prices which have been depressed by oversupply and weak demand since the beginning of the year, the Ministry of Commerce said last week.
Pork wholesale prices dropped by 14 per cent during the January-April period this year from a year ago. Financial losses were widespread in the industry.
In April, several government departments and agencies, including the Ministry of Commerce and the National Development and Reform Committee, kicked off the first round of pork purchases.
The Ministry of Commerce said the second round will start soon, "maybe on a larger scale", it said.
Policies help pork price recovery
The government's efforts to shore up the country's pork prices has started to take effect, the Ministry of Commerce said in a statement on its website.
According to the monitoring data, prices rose in 18 provinces by the end of last week. The largest price increase was 2 per cent compared with a week ago.
Pork prices have been depressed by weak demand and oversupply since the beginning of the year, leading to widespread financial losses for companies as well as farmers. In April, several government agencies rolled out the first round of State purchasing of frozen pork.
The ministry said in a statement that it has kicked off the second round, on "larger scale".
TheMeatSite News Desk