NDRC Preparing to Start Pork Reserves

By CnAgri2014-03-03 09:42:51 Print

On Feb. 21st, news released on NDRC website showed NDRC was paying close attention on live hog production and price change with relevant departments and made active preparation for start of frozen pork reserves based on regulatory plans to prevent pork price from significant decline, stabilize live hog production and safeguard farmers’ interests. It is suggested farmers continue adjusting breeding structure according to market price change so as to make live hog production recover and market balanced as soon as possible by making full use of joint regulating of market and government.

BOABC’s Insight: in March and May 2013, the NDRC started two rounds of pork reserves, to which BOABC both payed attention. In BOABC’ s opinion, pork reserve can guide price and prevent pork price from declining in short terms. But in the long run, according to previous reserves, pork reserve is negligible compared with the huge production, so its influence on the market is negligible. It brings more psychological effects than market regulating. Dead pig floating in Huangpu River event occurred again. Under the condition of sluggish pork consumption, pork reserve will have no obvious effect. Pork price may keep weak and continue declining.
In BOABC’ opinion, pork reserve is unable to save China breeding industry from whole losses. China breeding industry and meat products price will not recovery until dissipation of H7N9 cloud.

From “China Livestock and Feed Market Weekly Report”