China is ramping up its support for private hog raising companies, encouraging them to find alternate solutions to bolster pork production. One of the suggested measures is to build more pig farms outside of China to cope with the severe domestic shortage after the industry was rampaged by the African swine fever that wiped out almost half of the country's pig supply.
In a joint statement issued by China's agriculture ministry and its state planner, officials urged local authorities to provide more support to private companies planning to venture out of the country to establish farming facilities. The agencies particularly asked local authorities to support expansions into countries where pig products are eligible for Chinese export.
Apart from suggesting that companies establish overseas production facilities, the Chinese government also announced that it will be rolling out various measures to boost the country's pig production. The end goal would be to provide ample supply to compensate for the reduced output and to stabilize pork prices that have already reached a record high levels.
An official document published by the country's top economic planning body and agricultural authority had outlined the ongoing surge in pork prices, which have pushed consumer inflation to unprecedented levels. The document further pointed out that the recent spread of the novel coronavirus could cause logistics disruptions, further hindering the country's hog production.
Domestic hog producers have noted that this is the first time that the government has suggested raising pigs overseas. However, most do understand that such a supply gap has never been before in the industry and that the government is merely exploring all possible options to resolve the current crisis.
The document issued by the National Development and Reform Commission and the Ministry of Agriculture and Rural Affairs outlined that pig farms should be built in countries where there exists a stable bilateral trade agreement with China. These countries should also be free of the African swine fever to ensure continued production.
As for supporting already established pig production facilities at home, the document stated that local authorities should provide support in the procurement of materials for production expansion purposes. Local governments were also urged to allow farmers to utilize unoccupied lands to build pig pens, while also providing support for the establishment of facilities for animal waste sterilization and treatment.
With the measures, the state hopes that pork supplies would return to previous levels leading to the stabilization of pork prices nationwide. Having a stable supply of meat will be vital in ensuring the well-being of citizens as they deal with the health and economic crisis.
