“Fluctuations of the hog cycle should be relieved through more market-based efforts in view of current changes in supply and demand, and the economic law should be followed so as to ensure hog supply and stabilize the price,” Premier Li Keqiang said at the State Council executive meeting on July 28.

The meeting decided measures to ensure hog production capability, to promote stability in supply and price and enhance the security of the pork supply.

It was reported that hog production has been stabilized through various measures. The production capacity in China has returned to the average level from the previous sharp decline.

“In view of the current situation in China, efforts should be made to develop large-scale pig farming and help small and medium-sized farmers improve their capacity,” the Premier said, adding works should be based on reality to ensure people’s basic living needs.

Although hog production has basically recovered, relevant policies should not take sudden shifts, the Premier said, calling for stable and long-term fiscal, financial and land use supporting policies to motivate pig-breeding farmers. He also said the loans applied by such farmers and hog slaughtering and processing enterprises should not be blindly limited, withdrawn or cut off.

Areas banning livestock breeding should not be illegally expanded, it was noted at the meeting. The current number of large-scale pig farms should be maintained, while helping small and medium-sized pig farms improve their breeding capacity.

The establishment of a counter-cycle adjustment mechanism on hog production was also recommended. When the number of fertile sows on hand decreases 10 percent month-on-month or the pig-breeding industry encounters heavy losses for three consecutive months, local governments could offer one-off temporary subsidies to large-scale pig breeders.

These policies would also ensure solid work on major pig disease prevention and enhance emergency adjustment on pork reserves.