China announces pork purchase scheme

The Chinese government announced on Wednesday a pork purchase plan to stabilize depressed prices, as production of live pigs remain high.

The move will prevent excessive decline in prices of live hogs, stabilize husbandry and protect farmers, the National Development and Reform Commission (NDRC), China' top economic planning body, said on its website.

The NDRC forecast that prices will drop further in the coming months when consumption is traditionally low, and advised farmers to adjust the scale of their business depending on market prices.

Prices of live hogs have fallen since mid-December. Wholesale prices fell 1.1 percent in the first two weeks of February year on year after a 1.9 percent drop in January, the statement said.

Pork is the staple meat in China, and plays a major role in calculating inflation. Inflation rose 2.5 percent year on year in January, with prices of pork down 4.3 percent.