Chinese officials announced Monday a plan to buy pork for state reserves to support prices, which rebounded sharply after reaching a two-year low recently.
Hog prices in China, the world’s top pork-producing nation, plunged 65 percent in the first half of 2021 as disease outbreaks triggered panic selling, according to Reuters.
China reports average weekly prices entered an “excessive decline” last week. However, China does not disclose how much pork is in state reserves or how much new purchases will total.
A Rabobank analyst told Reuters, “Since the frozen pork inventory is probably already high due to strong imports in the previous months, I don’t think they’ll buy too much.”
China last made pork purchases in February and March of 2019, totaling 200,000 metric tons. So far in 2021, China has imported nearly two million metric tons of pork, up 13.7 percent. The purchases followed a record 4.4 million metric tons last year.