[VIV Qingdao Special] Heavy! The State Council has deployed three major measures to ensure stable pig prices!
Release time:
2021-07-30
[VIV Qingdao Special] Heavy! The State Council has deployed three major measures to ensure stable pig prices!
On July 28, the executive meeting of the State Council of China made arrangements for stabilizing pig production, calling for promoting pork supply and price stability, enhancing the ability to guarantee the safe supply of pork, and proposing a number of supporting measures.

Since March this year, with the continuous recovery of production capacity, China's pig prices began to fall. By the end of June, pig prices in some places once fell below the cost line. In order to stabilize the price of pigs, Chinese officials have made timely moves. Since July, three bidding transactions have been carried out in succession for the purchase and storage of frozen pork from the central reserve, thus curbing the decline in pig prices to a certain extent.
01
China's State Council redeploys stable pig production
Data previously released by the National Bureau of Statistics of China showed that in early July, the price of live pigs (three yuan outside) was 16 yuan per kilogram, an increase of 15.1 from the previous month. Gao Feng, a spokesperson for the Ministry of Commerce of China, said a few days ago that as the big pigs in the early stage were gradually digested by the market, coupled with the support of the national purchasing and storage policy, it is expected that the prices of live pigs and pork in the second half of the year will be stable and consolidated.
At the current time node, why the executive meeting of the State Council is stable.Fixed pig production for redeployment?
Li Guoxiang, a researcher at the Institute of Rural Development of the Chinese Academy of Social Sciences, told a reporter from China News Agency that under the conditions of a market economy, farmers can maintain or expand production only if they maintain capital and make profits. At present, pork prices are low and some places are losing money,To stabilize pig production, measures must be taken to stabilize pig prices so that farmers can reverse their losses.
"In addition, after September, China will enter the peak season of pork consumption. As demand is about to increase, it is even more necessary to stabilize supply and stabilize the confidence of farmers."

In order to stabilize the confidence of farmers and stabilize pig production, China's national development and Reform Commission has previously stated that it will continue to track market prices, actively carry out collection and storage, and further strengthen regulation and control when necessary to prevent the prices of live pigs and pork from fluctuating.


The executive meeting of the State Council held on the 28th further injected confidence into pig farmers from the perspective of policy support, and proposed long-term support policies such as stabilizing finance, finance, and land use, and not arbitrarily restricting loans to farms (households) and slaughtering and processing enterprises. Loan, cut off loans, stabilize the stock of large-scale pig farms, and help small and medium-sized farms (households) to improve the level of breeding.
The executive meeting of the State Council also proposed that we should do a good job in the prevention and control of major epidemics and strengthen the emergency adjustment of pork reserves.
Li Guoxiang said that the current supply of pork in ChinaFacing three major challengesFirst, the pork consumption season will soon enter after September, and the demand for pork will rise. Second, the fall in pig prices may trigger some production capacity withdrawal. Third, if the African swine fever epidemic rebounds, there is likely to be a large supply gap again. Therefore, under the superposition of these three challenges, the government will put special emphasis on stabilizing pig production and preventing and controlling major diseases.
02
Establishment of a counter-cyclical regulation mechanism for pig production
"After September, pork prices may rise again, but if relevant regulatory measures can be implemented, prices will operate within a reasonable range acceptable to both producers and consumers."Li Guoxiang said.

Recent important policies on pigs
03
The meeting proposed three initiatives
The person in charge of the relevant departments and bureaus of the Ministry of Agriculture and Rural Affairs said that in the first half of this year, my country's pig production has fully recovered. According to statistics from the National Bureau of Statistics, at the end of June, there were 45.64 million sows in the country, equivalent to 102 percent of the end of 2017, and 0.439 billion pigs,to 99.4 percent at the end of 2017.
The meeting pointed out that in view of the current changes in supply and demand, it is necessary to follow economic laws and use more market-oriented methods to alleviate fluctuations in the "pig cycle" to ensure the stability of pig supply and prices. The meeting presentedThree initiatives:
-- Stabilize long-term support policies such as finance, finance and land use, and protect the enthusiasm of pig farms (households).For farms (households) and slaughtering and processing enterprises shall not arbitrarily limit loans, draw loans, cut off loans. It is not allowed to expand the scope of the forbidden zone in violation of laws and regulations. Stabilize the stock of large-scale pig farms and help small and medium-sized farms (households) to improve the level of breeding.
——Establishment of a counter-cyclical regulation mechanism for pig productionWhen the monthly stock of breeding sows decreases by more than 10% compared with the same period last year or pig farming has suffered serious losses for three months in a row, all localities can give one-time temporary assistance to large-scale farms (households).
——Do a good job in the prevention and control of major epidemics, and strengthen the emergency adjustment of pork reserves.
The person in charge said that the Ministry of Agriculture and Rural Affairs will focus on consolidating the results of pig production recovery, accelerating the establishment of a regulation mechanism to stabilize pig production capacity, and promoting the high-quality development of the pig industry. Among them, it is necessary to further strengthen the monitoring and early warning of production and market, especially to promote the regulation index with the change rate of breeding sows as the core, and establish the mechanism of counter cyclical regulation of pig production.
Source: China Government Network, Pig Network
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