Source:  Lisa M. Keefe, MEATINGPLACE.COM, 3/17/10

In response to steeply falling pork prices in China, a spokesman for the Ministry of Commerce has said the government "will take measures according to changes in the markets to ensure [pork] prices remain basically stable," a Bloomberg report said.

Pork prices in that country have dropped 9 percent since January, Bloomberg quoted the spokesman as saying. Farmers are losing money and culling some hogs, exacerbating the price issue. The government wants to make sure that a sustained price slide does not destabilize the hog farming industry.

However, Yao Jian, the spokesman, did not provide any information on the specific steps being taken to maintain pork price levels. However, Bloomberg reported that China established a policy last year that provided for emergency measures on behalf of the government if the price ratio of hogs and feed grain fall below a series of predetermined marks. Those measures may include stockpiling frozen pork.

As of the end of February, the live-hog inventory fell 2.6 percent from a month ago to 443 million head, 0.6 percent lower than a year ago, according to China's Ministry of Agriculture, the report said. The number of breeding sows rose 0.4 percent from January to 49 million head, it said.

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