ID :
195495
Mon, 07/18/2011 - 07:33
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Shortlink :
https://oananews.org//node/195495
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China to spend US$386.8 mln to curb pork prices
HONG KONG, July 18 (Yonhap) -- China will spend 2.5 billion yuan (US$386.8 million) to boost the supply of pigs in an effort to curb soaring pork prices that have been stoking high inflation, government officials said Monday.
Surging pork prices have been the main driver of sky-high consumer prices in the country, jumping 57.1 percent on-year in June. Consumer prices in China jumped 6.4 percent on-year, the highest level since June 2008.
The Chinese government announced on its Web site that it will take a series of fiscal measures to stabilize pork prices, including investment in large-scale pig farms this year.
Farmers will also receive a subsidy of 100 yuan for raising more pigs, while under certain circumstances, they will be guaranteed to get money for pigs that die or have to be killed.
In addition, the Chinese government will release more pork reserves to the market.
China's central government had about 200,000 tonnes of pork reserves when it started to release them. It has already started to increase the supply of frozen pork from reserves in some 10 provinces, including the northeastern Liaoning Province.
Higher feed prices and labor costs coupled with lower pig numbers due to cheap pork prices over the past two years attributed to the dramatic increase in pork prices this year.
Pork is the most widely consumed and affordable meat in China. Market data showed the price of pork surged to nearly 28 yuan per kilogram last month, compared to the 2008 peak of 26 yuan.
Surging pork prices have been the main driver of sky-high consumer prices in the country, jumping 57.1 percent on-year in June. Consumer prices in China jumped 6.4 percent on-year, the highest level since June 2008.
The Chinese government announced on its Web site that it will take a series of fiscal measures to stabilize pork prices, including investment in large-scale pig farms this year.
Farmers will also receive a subsidy of 100 yuan for raising more pigs, while under certain circumstances, they will be guaranteed to get money for pigs that die or have to be killed.
In addition, the Chinese government will release more pork reserves to the market.
China's central government had about 200,000 tonnes of pork reserves when it started to release them. It has already started to increase the supply of frozen pork from reserves in some 10 provinces, including the northeastern Liaoning Province.
Higher feed prices and labor costs coupled with lower pig numbers due to cheap pork prices over the past two years attributed to the dramatic increase in pork prices this year.
Pork is the most widely consumed and affordable meat in China. Market data showed the price of pork surged to nearly 28 yuan per kilogram last month, compared to the 2008 peak of 26 yuan.
