China will buy pork in the state reserve to support prices

Chinese authorities said on June 28 that central and local governments will start buying pork into state reserves to prop up prices, which have fallen sharply in recent months.

REUTERS reports that last week prices began "excessive decline", according to the National Development and Reform Commission (NDRC). The notice of his official WeChat account does not provide details on the quantities purchased.

The move comes after prices for live pigs at the world's largest pork producer fell 65% from January to early June, eroding farmers' profits and raising fears that many would stop farming, causing MEAT shortages later on.

The pork-to-grain price ratio, an indicator of farmers' profits, averaged 4.9:1 last week, surpassing the 5:1 level set by the NDRC to trigger a Level 1 warning. although pig prices have already begun to rise.

And this fact will be taken into account when preparing the monthly analytical report Meatinfo.ru

According to Shanghai JC Intelligence Co Ltd., prices for live pigs fell to 12.9 yuan ($2 ) per kilogram on June 21 and have risen sharply since then, hitting 17.35 yuan per kilogram on Monday, June 28.

(1 US DOLLAR = 6.4568 Chinese yuan).