Chinese state buys pork again

Weak price formation in the Chinese pig market continues. The Chinese state will again buy pork to support the market, the China announced this week.

This week, the government will buy up 40.000 tons of pork and add it to state reserves. In addition, local authorities will be encouraged to do the same. The Chinese pig price fell by a further 10% after the Chinese New Year festivities in January and February to about €1,80 per kilo. Chinese pig farmers lose up to €70 per pig delivered.

Measure must restore market and confidence in pig farmers
The measure should lead to a better balance between supply and demand and thus to a halt in the fall in pig prices. This can then lead to more confidence in the market among pig farmers. The Chinese government is concerned that the current bad situation will lead to a reduction in the pig population, which could lead to a new peak in pig price levels in the future. The interventions should lead to more stability in price and production levels.

Steve Wissink

Stef Wissink is an editor at Boerenbusiness and writes about current market developments in the dairy and pig market. He also follows Dutch and international agribusiness.

s.wissink@boerenbusiness. Nl

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