0
The price of live pigs has continued to run at a low level recently. The National Development and Reform Commission stated that it will start the second batch of central pork reserve collection and storage work and guide local regions to purchase and store simultaneously. This is an important measure to push the price of live pigs back to a reasonable range.
According to data from the National Bureau of Statistics, the price of hogs in late June fell by 3.5% from the previous month. According to the monitoring of the National Development and Reform Commission, from June 26 to 30, the national average pig-grain price ratio was lower than 5:1, entering the first-level early warning range for excessive decline. According to the monitoring of the Ministry of Agriculture and Rural Affairs, as of July 4, the average price of pork in the national agricultural product wholesale market was 18.92 yuan/kg, a drop of 27% compared with the end of last year.
In the first half of the year, when hog farming generally lost money, stockpiling is conducive to hedging the downward pressure on hog prices, releasing positive policy signals, guiding the expectations of farmers, and preventing excessive and rapid declines in hog prices. However, the key factor affecting prices is still supply and demand. The purchase and storage of a single batch is very small compared with the market supply, and will not change the overall supply and demand structure. At present, the supply of live pigs is still at a high level. In addition, July and August are the off-season for pork consumption. The low price of pigs may be difficult to reverse in the short term. At the same time, some farmers are optimistic about the price trend during the year. They feel that with the arrival of the peak consumption season at the end of the third quarter, the price of pigs is expected to gradually rise, and they are unwilling to significantly reduce production.
July 11, 2023/ New Rural Business Network/ China.
https://nc.mofcom.gov.cn/
