China's pork prices not rise because of declining stocks

The jump in the price of pork meat in China is not the result of a tight supply, but the natural recovery according to the Chinese Ministry of trade after a two-year decline.
Since March of this year, the pork prices in China. End of June, the prices opposite had risen March by 24.9 percent. Thus, the price reached the second highest level since the record year 2011. The year, as a widely used food inflation prompted the Government to pay subsidies to the pig farms to achieve a rapid expansion of production. However, this measure quickly led to overproduction, which forced the farmers to reduce their holdings with the help of a Sauenschlachtprogrammes. This dropped the stock of live pigs at the lowest level for three years. Nevertheless, analysts do not believe that this decline has a big impact on the current pricing, because domestic demand is very weak. Source: reuters

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