China's Ministry of Commerce said on Thursday that it will seek to increase pork imports and also release frozen pork, beef and lamb from state reserves in "due time" to increase supply in the market.
The comments came as pork prices in the world's biggest meat consumer hit a record high after an epidemic of African swine fever swept through the country's herd, killing millions of animals.
The country's pig herd has shrunk by almost a third from last year, according to official data, and pork prices have soared since June.
Meat imports have already increased by 36% in the first seven months of this year, and analysts expect them to double from 2018 levels in 2020.
“We will continue… encouraging the expansion of pork imports,” ministry spokesman Gao Feng told reporters at a regular briefing.
China has agreed to start importing pork from Argentina this year and could also approve additional plants for export from Brazil and Britain.
With the problem in China, demand for meat from Brazil is growing, with the sector talking about a “perfect bonanza”, and other positive factors influencing business. But the Brazilian industry is still waiting for more units to be released for export.
Gao also said China will release meat from its reserves to stabilize supplies.
China typically releases some of its stored meat when prices are high or during periods of high demand, such as the weeks following the Lunar New Year holiday, the country's biggest festival.
The government released 9,600 tonnes of pork from reserves in January, according to state media reports. But while the total volumes held by the country are not known, analysts say they are unlikely to be significant enough to have a real influence on market supplies.
“The government wants to support the market, but this is more of a political gesture,” said Pan Chenjun, senior analyst at Rabobank.
Pork retail prices jumped 7.8% in the week to August 14, reaching 32.4 yuan per kilogram, according to data from the Ministry of Agriculture and Rural Affairs, almost 50% more than at the same time last year.
China's cabinet called for measures to support production recovery.
Source: agrolink
