China urges pig farmers to sell more pigs to cool prices

China’s state planner has stepped up its coordination with large-scale hog farmers to ensure a steady supply of animals to the processing industry, the official said on Thursday, as he tries to cool soaring prices in the world’s biggest pork market.

Live hog prices hit 28 yuan ($3.87) per kilogram in some regions last week, levels not seen since March 2021, when China was still struggling with pig shortages following the African swine fever epidemic.

Large producers have agreed to “take social responsibility,” the National Development and Reform Commission (NDRC) said in a statement on its official Wechat account.

The companies, which were not named by the NDRC, will take the lead in ensuring supply and price stability in the market and accelerating the pace of slaughter when necessary, he added.

The move should work to bring prices down, said Pan Chenjun, a senior analyst at Rabobank, after previous measures failed to slow the rally.

The leading producer Muyuan Foods Co Ltd. increased slaughter volume, it said on Sunday in response to a question from investors on an interactive platform.

Beijing has already issued several warnings to breeders, urging them to stop limiting the slaughter of pigs to wait for higher prices.

Slaughter weights have increased to up to 150kg, from a normal weight between 100kg and 120kg, Rabobank’s Pan said.

However, the state planner’s move will only have a short-term benefit, she said.

“The key issue is tight supply.”

Rising hog prices are pushing up consumer inflation, which rose in September at the fastest pace since April 2020.

Source: CNN Brasil

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