NDRC releasing frozen pork reserve to ensure market supply ahead of major holidays
Published: Sep 06, 2022 03:19 PM
Pork products are seen at a Hema Fresh store in Chaoyang District, Beijing, April 26, 2022. (Photo: China News Service/Fu Tian)

Pork products are seen at a Hema Fresh store in Chaoyang District, Beijing, April 26, 2022. (Photo: China News Service/Fu Tian)

China's National Development and Reform Commission (NDRC) announced plans to release this year's first batch of central frozen pork reserves on Thursday, in order to ensure supply and stable prices as the country's two major holidays - the Mid-Autumn Festival and the National Day Holiday - draw near.

The NDRC also plans to guide localities to further release their frozen pork reserves. Currently, South China's Guangxi Zhuang Autonomous Region, Southwest China's Sichuan, Northeast China's Jilin and other provinces have already started releasing pork reserves, according to a statement released by the NDRC on Tuesday.

The nation will monitor the pork market and further increase the release of reserves as necessary. It is suggested that the breeding farms maintain a normal pace of production, and relevant enterprises release commercial stock of pork in an orderly manner to meet market demand, the NDRC said.

The authority said in late August that as major holidays fall across the following months, it will work with other departments to release pork reserves in batches to ensure supply during upcoming holidays, starting from September.

The average price of pork stood at 30.34 yuan ($4.37) per kilogram in wholesale markets across the country on Monday, up 1 percent from Friday, according to the Ministry of Agriculture and Rural Affairs.

Prices at Beijing's Xinfadi wholesale market were fluctuating around 20 yuan per kilogram across the first half of the year, and have now increased to 30 yuan per kilogram, local news site reported on Sunday.

Pork prices saw a rapid growth since July. From a supply perspective, the previous round of price drop dampened hog farmers' enthusiasm for production, and when a current price increase cycle begins, farmers have tended to hold stock and wait for higher prices.

While on the demand side, as the holidays are approaching and catering industries are recovering, market demand for pork are growing and is expected to further increase in the following months, experts noted.

The NDRC said on July 5 that it was weighing opportunities to release reserves to balance market demand. 

Shu Jueting, a spokesperson from the Ministry of Commerce said at a press conference on July 14 that the overall hog production capacity remained within a reasonable range, recording 41.92 million breeding sows across the nation by the end of May. The Ministry vowed to work with other authorities to keep the market stable by enhancing market monitoring, conducting pork reserve releasing and coordinating channels between producers and distributers.

Global Times