Generous subsidies for Chinese pig farms

The Chinese government is going to help large pig companies to increase meat production. It does this by providing subsidies. In this way, China is trying to find an answer to the major meat shortages caused by African swine fever.

Large pig farms that are going to build or renovate before 2021, or move their locations, can count on a one-off subsidy. The amount of this subsidy can amount to 6 million yuan, which is converted to €765.000. The amount is limited to 30% of the investment costs and is intended to support companies with the purchase of automatic feeding systems or measures to prevent animal diseases.

Tax support
In addition to subsidies, pig farmers are also fiscally motivated to expand production. These measures should ensure that the country can restore domestic meat production. Due to the outbreaks of African swine fever, the pig herd has shrunk by about 30% last year. This amounts to approximately 140 million pigs.

Due to the significant shortages, the Chinese pig price rose to a record high. The government then decided to regulate the pig price. 

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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