FX.co ★ China Acts to Stabilize Pork Market, Extends EU Import Probe

China is taking measures to limit pork production as a means to stabilize prices and mitigate deflationary pressures, according to Bloomberg News. Officials have advised farmers against expanding their breeding herds and stopping the practice of secondary fattening, which involves raising pigs to weights beyond typical slaughter levels, thereby increasing meat supply. Pork, a significant component of China's consumer price index, has experienced a nearly 10% decline in wholesale prices since January, contributing to four months of continuous deflation. Policymakers are keen on stabilizing the pork market cycle after severe fluctuations caused by the African swine fever. Currently, the sow population stands at 40.38 million, exceeding the 39 million considered normal, resulting in farmers incurring losses of about 70 yuan per pig. Additionally, concerns regarding rural income levels and trade tensions with the United States have led China to extend its anti-dumping investigation into European Union pork imports until December 16, due to the complexity of the case.