China Looks to Drive Down Pork Prices

by 5m Editor
14 July 2011, at 8:35am

CHINA - The Chinese government announced a new fiscal support policy that will increase the country's supply of live pigs, which is expected to drive down pork prices and ease inflation worries, according to a meeting of the State Council, or China's cabinet, held yesterday.

Recent steep increases in pork prices have had an impact on consumers and prompted price hikes in other areas, according to a statement released after the meeting.

Efforts should be made to ensure adequate supplies of live pigs and stabilize prices in the short-term, the statement said, adding that the policy will also help to avoid price fluctuations in the long-term.

The central government will invest 2.5 billion yuan ($384 million) in large-scale pig farms this year. Farmers will be able to receive a 100-yuan subsidy for each of the pigs they raise, according to the statement.