Three factors cause pork prices to be too high

At 15 o'clock on the August 14, 2007, Chen Weisheng, Deputy Director of the Animal Husbandry Division of the Ministry of Agriculture, Xu Lihe, Deputy Director of the Department of Operations of the Ministry of Commerce, Jiang Liming, Deputy Director of the Cooperation Department of the China Banking Regulatory Commission and Dong Bo, Deputy Director of the Insurance Supervision Department of the China Insurance Regulatory Commission accepted the Chinese government. Interview with the Internet to interpret policies and measures to promote the development of live pig production, stabilize market supply, and introduce relevant work and the current situation of hog production.

[Netizens are hogging pigs 84] The price of pork is not known to have turned several times this year, but pig farmers are still losing money to sell. Isn't it a blow to the confidence of pig farmers? The state says that feed prices are mainly rising, but can feed double? Taking a look at the price of corn, although it was a bit higher in the first half of this year, even if it reached the highest point, it hasn't risen to 20% yet. Nowadays, corn prices have started to fall again in the first half of the year. I think the main price is still climbing in the circulation. If the government wants the price to come down, it should pay close attention to the circulation, help the family to reduce the circulation, increase their profits, so as to improve the enthusiasm of the raising of households. If relying solely on government subsidies to raise pigs, it is not good enough to allow pig farmers to see where their profits lie before they can really increase the number of pigs. How to treat this netizen's opinion?

[Zhu Xihe] I answer this question in three aspects. First, the current pig-food ratio is at the highest level in history. Feed prices have been rising in recent years, which has helped boost pork prices to some extent, but this is not the main reason why pork prices stay at such a high price. The main reason is that the pig price was too low last year and the loss of pig farmers was serious. As a result, the number of domestic sows and the number of piglets in the country were significantly reduced. On this basis, a blue-ear disease epidemic occurred again. The combination of the two factors together with the feed increase caused the current pork price to be too high.

Second, hog prices have risen more than two circulation prices in terms of hog prices, wholesale prices, and retail prices.

Thirdly, from the perspective of circulation profits, a considerable portion of the slaughter companies now suffer losses due to the reduction in the slaughter volume. At the same time, in some farmers' markets, some retailers who originally engaged in pork sales also suffered losses due to the reduction in retail sales. The profits in the retail sector have not increased, but have decreased, even in some areas where losses have occurred in large areas.


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