(Economic Observation) Continue to maintain supply and stabilize prices, the State Council of China redeploys stable pig production
China News Service, Beijing, July 28 (Reporter Chen Su) On the 28th, the executive meeting of the State Council of China made arrangements for stabilizing pig production, calling for the promotion of pork supply and price stabilization, enhancing the ability to guarantee safe pork supply, and proposing a number of supporting measures.
Since March this year, with the continuous recovery of production capacity, the price of live pigs in China has begun to fall. By the end of June, the price of pigs in some places once fell below the cost line.
In order to stabilize the price of pigs, Chinese officials made a timely move. Since July, three central reserve frozen pork purchasing and storage bidding transactions have been launched, which has brought the downward trend of pig prices to a certain extent contained.
Data previously released by the National Bureau of Statistics of China showed that in early July, the price of live pigs (external three yuan) was 16 yuan per kilogram, up 15.1% from the previous month.
Gao Feng, a spokesperson for the Ministry of Commerce of China, said a few days ago that with the gradual digestion of large pigs in the early stage and the support of national purchasing and storage policies, it is expected that the prices of live pigs and pork in the second half of the year will be stable and consolidate.
At the current time, why did the executive meeting of the State Council redeploy stable pig production?
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 their profits and maintain production or expand production. At present, pork prices are low and some places are experiencing losses. To stabilize pig production, it is necessary Take measures to stabilize pig prices and enable farmers to reverse their losses.
"In addition, China will enter the peak season for pork consumption after September. With the upcoming increase in demand, it is even more necessary to stabilize the supply and stabilize the confidence of farmers."
In order to stabilize farmers' confidence and stabilize live pig production, the National Development and Reform Commission of China previously stated that it will continue to track market prices, actively carry out purchasing and storage, and further increase control and regulation when necessary to prevent large fluctuations in live pig and pork prices.
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 finances, finances, and land use, and restricting loans or drawing money to farms (households) and slaughter and processing enterprises. Loan, cut off loans, stabilize the stock of large-scale pig farms, and help small and medium-sized farms (households) improve their breeding level.
The executive meeting of the State Council also proposed that it is necessary to do a good job in the prevention and control of major epidemics and strengthen emergency adjustment of pork reserves.
Li Guoxiang said that China’s pork supply is currently facing three major challenges: First, the pork consumption season is about to enter after September, and pork demand will rise; second, the decline in pig prices may trigger some capacity withdrawals; third, if the African swine fever epidemic rebounds, it will be very serious. There may be a larger supply gap again.
Therefore, under the superposition of these three major challenges, the government will put special emphasis on stabilizing pig production and focusing on the prevention and control of major diseases.
In order to promote long-term maintenance of pork supply and stable prices, the executive meeting of the State Council proposed to establish a counter-cyclical regulation mechanism for pig production.
Li Guoxiang said that to establish a counter-cyclical control mechanism, we must first do a good job in pork reserves, increase reserves when prices are low, sell reserves when prices are high, counter-cyclically regulate prices, and stabilize pork production. In addition, when live pig prices are low It is necessary to increase support, maintain the confidence of farmers, and prevent farmers from withdrawing excessively.
In addition to short-term regulation, Li Guoxiang also suggested that in the long run, the efficiency and scale of pig raising should be improved, so that the backward production capacity with high breeding cost should be withdrawn in an orderly manner, the main body of pig raising with production efficiency should be stabilized, and accurate support should be achieved.
Establish an authoritative and rational third party for national pig production and scientifically guide market expectations.
"After September, pork prices may see a recovery increase, but if relevant control measures are implemented, prices will operate within a reasonable range acceptable to producers and consumers." Li Guoxiang said.
(Finish)