Premier Wen Jiabao's visit to stabilize the pork market in Shaanxi is an unshirkable responsibility of the government
2021-05-26 15:03:39
Pork prices have risen and become the main force pushing up the CPI, so that the senior management has firm determination in regulation.
On the 9th, the National Bureau of Statistics announced that the CPI for June rose by 6.4% year-on-year to a 36-month high. Among them, the price of pork rose by 57.1%, and its contribution to the overall price level was 21.4%.
On the same day, Premier Wen Jiabao of the State Council visited farmers and supermarkets in Xianyang City, Shaanxi Province to investigate the live pig market. Wen Jiabao said that stabilizing the pork market is an inescapable responsibility of the government. Relevant departments should immediately take action to restore and introduce policies to support pig production as soon as possible and send a steady signal to the market.
This is the first time that the central high-level executives have clearly indicated that the government will intervene in the price of pork in this round of rising pork prices.
A week ago, Wen Jiabao said in a study in Liaoning that pork would be priced down in a few months, but it did not release the government's signal to regulate pig prices. Earlier, the Ministry of Commerce made it clear that pork production and consumption depended mainly on market regulation.
Wang Xiaoyue, an animal husbandry analyst from Oriental Agritech Consulting Co., Ltd., said in an interview with the First Financial and Economic Daily that, in the current situation where the number of herds has not yet been significantly restored, the central government should take more prudent measures to take control measures. Repeat the lessons of 2007 so that the price of pigs once again fell into the cycle of skyrocketing plunge.
As soon as the support policy was introduced, Wen Jiabao investigated the situation of hog farming in Xianyang, Shaanxi Province, and had discussions with people involved in pig breeding, slaughtering, inspection and quarantine, pork processing, sales companies, and insurance companies.
When interviewed by this newspaper in a telephone interview yesterday, Huo Mingxin, the person in charge of the Starlight Breeding Breeding and Breeding Co., Ltd., said that he told the Prime Minister that the increase in pork prices was mainly due to a shortage of pigs, and the pig shortage was due to the sharp drop in pig prices last year. Loss of farmers, large-scale elimination of sows. Moreover, due to the increase in labor costs, the income of migrant workers is higher than that of pig production, and the number of farmers is decreasing.
Huo Mingxin believes that the sudden increase in the price of pigs in the breeding farms and farms is only a superficial phenomenon. The pig industry is now facing double risks. One is the risk of fluctuating pork prices, and the other is the risk of disease. Once the piglets have failed to control the spread of the epidemic.
"If pig farms had a low casualty rate last year, now a pig can earn 700 to 800 yuan, but if it is half the number of casualties it is difficult to say. No one knows if the pig farms have made money this year because they lost too much last year. "Huo Mingxin said.
After listening to the report, Premier Wen Jiabao stated that the support policy should be continuous. When the pig production situation is not good, it must be grasped. When the situation is good, it must be grasped to prevent pigs from hurting the farmer.
Wen Jiabao said that relevant departments should immediately take action to restore and introduce policies to support pig production as soon as possible and send a stable signal to the market.
Dilemma regulation Wang Xiaoyue said that the different links in the pork industry chain are uneven in this round of rising, so different stakeholders have different expectations for government regulation.
Farmers generally believe that there is no need for government regulation, and rely on the power of market self-regulation to maintain a steady fall in pork prices. But slaughter, retail companies and consumers are increasingly unable to bear the rising pig prices. They urgently hope that the government will regulate them.
Wang Xiaoyue analyzed that companies selling piglets and dual sows are the biggest beneficiaries of this round of rising pig prices, while the farmers' income is the compensation for the loss in the previous period.
The slaughter company's gross profit margin is only 5%, mainly relying on scale to win. If pork prices continue to remain high, the biggest pressures are slaughter companies and retail companies, as well as urban and rural low- and middle-income people. This also became the original intention of the government to change its position and control.
Wen Jiabao said: “I am very happy about the increase in pork prices and the increase in farmers’ income. But the middle and low-income people in the city feel unbearable and I have pressure. Our goal is to mobilize the enthusiasm of the farmers for raising pigs and let the people in the city eat the price. Reasonable pork."
In fact, it is not easy to achieve this goal.
In 2007, there was a rapid increase in pork prices. After Wen Jiabao went to Shaanxi for research, the State Council introduced measures such as subsidies for fertility and sows, insurance, and support for large-scale breeding. The price of pork stabilized within six months.
One of the consequences of government support is that large amounts of hot money have entered the pig-breeding industry. The number of live pigs has risen sharply. This has caused the “curse†for the sharp drop in pig prices in 2010.
Wang Xiaoyue stated that the farmers have also been very cautious after experiencing great ups and downs since 2007. If the country introduces control measures in large areas at this time, pig farmers will bear the price of bearish pork and further postpone the restocking. Although the pig price will fall in the short term, the contradiction between supply and demand will also lead to further increase in the price of pigs.
An industry source disclosed to reporters that the policy that is most not welcomed by pig farmers is to subsidize the number of live pigs. Because this subsidy is deducted from the investors, the hot money, or the relevant departments, it will not reach the farmers.
In 2007, the government had introduced a policy of subsidizing the sow, but in actual implementation it encountered a cash withdrawal subsidy. Because a sow will keep a long time, but once the price of piglets falls, hot money will subsidize the hand, then the sow will be killed as a hog, which is a harm to the entire industry.
On the 9th, the National Bureau of Statistics announced that the CPI for June rose by 6.4% year-on-year to a 36-month high. Among them, the price of pork rose by 57.1%, and its contribution to the overall price level was 21.4%.
On the same day, Premier Wen Jiabao of the State Council visited farmers and supermarkets in Xianyang City, Shaanxi Province to investigate the live pig market. Wen Jiabao said that stabilizing the pork market is an inescapable responsibility of the government. Relevant departments should immediately take action to restore and introduce policies to support pig production as soon as possible and send a steady signal to the market.
This is the first time that the central high-level executives have clearly indicated that the government will intervene in the price of pork in this round of rising pork prices.
A week ago, Wen Jiabao said in a study in Liaoning that pork would be priced down in a few months, but it did not release the government's signal to regulate pig prices. Earlier, the Ministry of Commerce made it clear that pork production and consumption depended mainly on market regulation.
Wang Xiaoyue, an animal husbandry analyst from Oriental Agritech Consulting Co., Ltd., said in an interview with the First Financial and Economic Daily that, in the current situation where the number of herds has not yet been significantly restored, the central government should take more prudent measures to take control measures. Repeat the lessons of 2007 so that the price of pigs once again fell into the cycle of skyrocketing plunge.
As soon as the support policy was introduced, Wen Jiabao investigated the situation of hog farming in Xianyang, Shaanxi Province, and had discussions with people involved in pig breeding, slaughtering, inspection and quarantine, pork processing, sales companies, and insurance companies.
When interviewed by this newspaper in a telephone interview yesterday, Huo Mingxin, the person in charge of the Starlight Breeding Breeding and Breeding Co., Ltd., said that he told the Prime Minister that the increase in pork prices was mainly due to a shortage of pigs, and the pig shortage was due to the sharp drop in pig prices last year. Loss of farmers, large-scale elimination of sows. Moreover, due to the increase in labor costs, the income of migrant workers is higher than that of pig production, and the number of farmers is decreasing.
Huo Mingxin believes that the sudden increase in the price of pigs in the breeding farms and farms is only a superficial phenomenon. The pig industry is now facing double risks. One is the risk of fluctuating pork prices, and the other is the risk of disease. Once the piglets have failed to control the spread of the epidemic.
"If pig farms had a low casualty rate last year, now a pig can earn 700 to 800 yuan, but if it is half the number of casualties it is difficult to say. No one knows if the pig farms have made money this year because they lost too much last year. "Huo Mingxin said.
After listening to the report, Premier Wen Jiabao stated that the support policy should be continuous. When the pig production situation is not good, it must be grasped. When the situation is good, it must be grasped to prevent pigs from hurting the farmer.
Wen Jiabao said that relevant departments should immediately take action to restore and introduce policies to support pig production as soon as possible and send a stable signal to the market.
Dilemma regulation Wang Xiaoyue said that the different links in the pork industry chain are uneven in this round of rising, so different stakeholders have different expectations for government regulation.
Farmers generally believe that there is no need for government regulation, and rely on the power of market self-regulation to maintain a steady fall in pork prices. But slaughter, retail companies and consumers are increasingly unable to bear the rising pig prices. They urgently hope that the government will regulate them.
Wang Xiaoyue analyzed that companies selling piglets and dual sows are the biggest beneficiaries of this round of rising pig prices, while the farmers' income is the compensation for the loss in the previous period.
The slaughter company's gross profit margin is only 5%, mainly relying on scale to win. If pork prices continue to remain high, the biggest pressures are slaughter companies and retail companies, as well as urban and rural low- and middle-income people. This also became the original intention of the government to change its position and control.
Wen Jiabao said: “I am very happy about the increase in pork prices and the increase in farmers’ income. But the middle and low-income people in the city feel unbearable and I have pressure. Our goal is to mobilize the enthusiasm of the farmers for raising pigs and let the people in the city eat the price. Reasonable pork."
In fact, it is not easy to achieve this goal.
In 2007, there was a rapid increase in pork prices. After Wen Jiabao went to Shaanxi for research, the State Council introduced measures such as subsidies for fertility and sows, insurance, and support for large-scale breeding. The price of pork stabilized within six months.
One of the consequences of government support is that large amounts of hot money have entered the pig-breeding industry. The number of live pigs has risen sharply. This has caused the “curse†for the sharp drop in pig prices in 2010.
Wang Xiaoyue stated that the farmers have also been very cautious after experiencing great ups and downs since 2007. If the country introduces control measures in large areas at this time, pig farmers will bear the price of bearish pork and further postpone the restocking. Although the pig price will fall in the short term, the contradiction between supply and demand will also lead to further increase in the price of pigs.
An industry source disclosed to reporters that the policy that is most not welcomed by pig farmers is to subsidize the number of live pigs. Because this subsidy is deducted from the investors, the hot money, or the relevant departments, it will not reach the farmers.
In 2007, the government had introduced a policy of subsidizing the sow, but in actual implementation it encountered a cash withdrawal subsidy. Because a sow will keep a long time, but once the price of piglets falls, hot money will subsidize the hand, then the sow will be killed as a hog, which is a harm to the entire industry.
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