China asks pork producers to spur consumption, curb financial risks

[BEIJING] China’s agriculture ministry urged the pork industry to rein in overcapacity, stimulate consumption and keep a close watch on the financial risks of large pork companies.

Pig producers should promote a recovery in pork prices and aim for high-quality development, moving away from quantitative expansion, the ministry said in a video conference on Monday.

Control of hog production capacity ensures stability in farmers’ incomes and financial risks for the industry, it said, urging pig breeders to keep up efforts to save grains and reduce feed consumption.

Last week, China cut the normal breeding sow holding level by 3.8 per cent, to 37.5 million head, in a broad plan aimed at tackling oversupply and weak demand that have driven pork prices to multi-year lows.

It set a target to hold the number of large-scale pig farms nationwide stable at no fewer than 130,000. REUTERS