More than three million kilograms of frozen pork, which the government had stockpiled, will be released to more than 100 supermarkets in Beijing from now till July 4, according to a statement issued by the city’s Municipal Commission of Commerce.
The Beijing government created the stockpile in 1992, as a way to stabilise prices for key goods. The agency also urged the city’s slaughterhouses to increase supply, saying those that comply will receive a government subsidy.
Pork prices in China have increased about 50 percent in the past year, fuelling worries of persistent inflation and prompting the government to tap into its reserves.
The average price of pork at the end of April reached 26.24 yuan (US$4.04) per kilogram. Prices have risen for the sixth straight week. The increase in prices is due to a number factors including a shortage of pigs in the country, as lower profit margins had prompted many to give up on raising the animals while other were driven out of the industry due to tougher environmental rules. Additionally, an outbreak of disease earlier this year had wiped out many of China’s piglets.