China Reform and Development Commission is mulling releasing state pork reserves to circulate in market in order to rein in excessive rebound of recent pork prices
According to information released by NRDC on 5th July, in order to tackle the recent issues of irrational actions in pig market such as reluctance to sell, NRDC is now dipping into releasing state pork reserves to the market to stabilize cost and is working together with provincial authorities to timely launch the release and contain the excessive increase of pork prices.
The recent pork price rebound is resulted by the effect of cutting overcapacity conducted earlier, along with consumption recover after covid-lock downs were lifted. Pig farmers kept pigs from being slaughtered and are reluctant to sell, therefore prices jumped faster than market anticipation. But the end consumption of pork still has further potential to recover because of farmers’ reluctance to sell and pigs accumulating at slaughterhouses. Hence in a short to medium period of time, pork cost is likely to experience some degree of decrease. But in the long run, this will not affect the upward trend in the second half of the year.