16 Jul '11, 8am

China plans release of pork reserves to keep prices down

BEIJING - Some nations have strategic oil reserves. Some keep grain reserves. China has both, and something others have somehow overlooked: A national pork reserve. And with the price of pig meat up 38 per cent in major cities since the start of the year, the government is about to open its floodgates. China's Commerce Ministry said yesterday that it planned to release part of the central government's 200,000-metric-ton stash of frozen pork onto the market, following earlier releases from pork reserves held by cities and at least 11 provinces trying to cap rising food prices. So far, they have failed. Year-over-year inflation in China rose to 6.4 per cent in June. The ministry says the price of pork in big cities soared by 17 per cent last month alone, propelled by higher feed prices, rising wages and increased demand. "As we know, pig breeding has experienced consecutive ...

Full article: http://www.todayonline.com/World/EDC110716-0000076/China-...

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