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First Round of Pork Reserve Started in China in 2014

China Agriculture Report By CnAgri2014-04-08 09:28:24China Agriculture Report Print
Keywords:Round Pork Reserve
On Mar. 27th, Chinese Ministry of Commerce organized the e-bidding work of the first round of pork reserves in 2014 together with NDRC and the Ministry of Finance. In the reserve, 65,000MT frozen pork is planned to be reserved and the pork must be the NO.2 and No.4 segmenting pork meeting national standards and frozen pork for trading must be products processed after the date of reserving.


BOABC’s Insight: BOABC still conducted investigation on live hog breeding in Guangdong province this week. Farmers counted on the frozen pork reserves, but live hog price saw no rising as expected. Live hog price kept at RMB10.6-10.8/Kg in Guangdong currently and farmers’ loss has reached or even exceeded RMB400/head. In BOABC’s opinion, the reserve shall not prevent pork price from further declining and the reserve only accounts for a tiny part of pork consumption in China. Surplus live hog supply and declining sow inventory determine live hog price shall keep low in the coming one month.


The following 15-30 days from next week, however, is the key period for live hog price trend in China. According to our investigation, for most feed dealers providing feed to farmers, their capital chain is in the edge of breaking and some dealers even stopped supplying to farmers lack of money to purchase raw materials. So farmers are forced to sell live hog and eliminate sow capacity, which if occur in large scale, pork price shall have opportunity of rising in 2014 in China. Otherwise, live hog breeding shall undoubtedly see loss in the whole 2014. 

From “China Livestock and Feed Market Weekly Report”

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