Beijing will release 3.05 million kilograms [3,050 MTs] from its frozen pork reserves onto the market to ease pork supply pressure and contain a price surge. Beijing’s pork prices have been rising since the Lunar New Year due to tight supply, with raw pork prices surging 50.6 percent month on month in April, according to the Beijing municipal government…Full Article: Xinhua May 2016

Key Points

  • From May 5 to July 4 (2016), Beijing will release 3,050 MTs of frozen pork from its reserves, including 50 MTs that will be sold daily to 121 supermarkets. Additionally, the government will provide subsidies to abattoirs, as well as to vendors (subsidy of up to CNY 9 or US$1.40 per kg sold).
  • In 1992, the Beijing government established it frozen pork reserve system.

ChinaAg Comments

  • In March 2016, Beijing’s Xinfadi wholesale market noted a nearly 60% increase in pork prices versus the previous year.
  • In November 2015, China enacted water pollution control initiatives across 10 provinces which reportedly impacted the country’s pork industry and helped cause pig farm closures (~20 million hogs dropped out of the market).
  • In November 2015, the Director of the NDRC’s Price Department stated that nearly 50% of all pig farms in China raise at least 500 hogs annually.
  • From November 2013 to August 2015, China lost 100 million boars and 10 million sows (adult female hogs). China’s pig inventory peaked in 2013.
  • From 2013 to 2015, average pork prices in China increased from CNY 25.86 per kg to CNY 26.73 per kg.
  • From 2001 to 2011, China’s backyard pig farms dropped from 74% to 37% of the country’s total hog output.
  • From 2005 to 2010, Chinese pork consumption increased by 8%, but consumption fell from 2007 to 2008 due to an outbreak of blue ear pig disease.
  • China’s pig population and pork production mainly lies along Yangtze River. In 2011, Sichuan province had 51 million pigs (11% of China’s supply) and produced 4.8 million MTs of pork (10% of China’s output). Henan province had 45.6 million pigs and produced 4 million MTs of pork, while Hunan province had 41.5 million heads and also produced 4 million MTs of pork.

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