China will purchase pork for its reserves in order to stabilize the market

The National Development and Reform Commission (NDRC, China's main planning body) announced today that it will launch operations, in conjunction with other departments, to purchase frozen pork for central reserves, with the aim of promoting a "stable functioning" of the pork market. According to the NDRC, there has recently been an increase in pork supply and a drop in prices. The agency attributed this development to the summer heat, a seasonally weaker demand, and the release of animals from secondary fattening operations conducted earlier. Monitoring data from the regulator itself places the ratio between the price of pork and feed grain below 6:1, a level that triggers response measures aimed at stabilizing the market. The NDRC announced that it will proceed to purchase frozen pork for state reserves, in coordination with various departments, in order to cushion market fluctuations derived from the seasonal and supply factors mentioned. Pork is the most consumed meat in China, ...