BUSINESS China to release 20,000 tonnes of pork reserves for holiday demands

BUSINESS

China to release 20,000 tonnes of pork reserves for holiday demands

People's Daily app

11:53, December 26, 2019

pork.jpg

This photo shows pork sold at a market in Wuxi, Jiangsu province. (File photo: Xinhua)

Chinese authorities announced plans to release more frozen pork from its central reserves to ensure market supply for the upcoming holidays on Wednesday.

This is the seventh batch of central reserve of frozen pork this year. In September, the China Merchandise Reserve Management Center has released reserves three times in two weeks reaching a total of 30,000 tonnes. On December 12, 19 and 23, the center released a further 120,000 tonnes to the market. After the release, the central reserve of frozen pork will reach 170,000 tonnes this year.

In preparation for the upcoming pork consumption peak during the New Year and Spring Festival vacation, the authorities have taken a series of policy measures to ensure supply and steady pork prices.

The Customs Tariff Commission of the State Council said Monday that China will temporarily cut import tariffs on frozen pork from 12 percent to 8 percent starting January 1, 2020. The industry believes this move will help increase pork imports and help meet domestic market demand.

Gao Feng, a spokesperson for the Ministry of Commerce (MOC), spoke at a news conference on December 19 that China has made preparations to ensure the supply of pork to brace for the spike in demand during the upcoming New Year and Spring Festival holidays. And the country will step up efforts to improve the linkage between pork production and sales to keep pork prices stable.

“In the coming period, especially during the New Year and Spring Festival holidays, the central reserve of frozen pork will be increased in accordance with changes in market conditions. Some localities have also formulated local reserve release plans,” said Meng Wei, a spokesperson of China’s top economic regulator National Development and Reform Commission on December 17.

According to the General Administration of Customs, China imported 230,000 tons of pork from January to November, up 151.2 percent year-on-year.

Data from the Ministry of Commerce's website showed that wholesale pork prices have fallen for two weeks in a row, driving down prices for other meats. Wholesale prices for pork, beef and lamb fell 0.3 percent, 0.7 percent and 0.7 percent to 43.76 yuan, 67.7 yuan and 63.27 yuan per kilogram last week, respectively.

Analysts pointed out that with the conclusion of China-US phase-one trade deal and the effective control of African swine fever, pork prices will continue to decline.

(Compiled by Wang Xiangyu)

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