The Chinese government has started to purchase frozen pork and add it to reserves to stabilize prices, which have slumped for three months, the country's top economic planning agency said Sunday.
Due to cyclical and seasonal factors, hog prices have fallen remarkably since January. The hog-to-corn price ratio, a major indicator of the industry's profitability, has stayed under 6:1, the break-even point for farmers, for four weeks.
In order to stabilize prices and prevent further damage to farmers' interests, the government has purchased the frozen pork at prices slightly above market price, the National Development and Reform Commission (NDRC) said in a statement.
Monday April 8, 2013/ China Daily/ China.