Earlier this summer it was reported that China’s Commerce Ministry would release part of its strategic pork reserves in hopes of capping rising food prices. Reaction from the U.S. ranged from WTF? to I want one.
There are nation’s that keep strategic oil reserves, and some stockpile grain, but a national pork reserve?
China is a porcine superpower. With a pig population of 446 million, China is home to half of all the world’s pigs, with one pig for every three citizens. China has more pigs than the next 43 countries combined, including the U.S. at number two with about 60 million pigs.
Pork is serious business in China. It makes up more than half of the meat consumed, and as living standards rise, so does consumption, which has quadrupled in the last 20 years. This crushing demand for pork has made it susceptible to price fluctuations due to weather, disease, and grain price inflation.
There was nationwide panic in 2006 when an epidemic of blue-ear disease struck the Chinese pig population. The disease was eventually brought under control, but left in its wake supply shortages and runaway price inflation. Clearly unacceptable in a country that runs on pork, the next year the Chinese government made it a national priority to ensure a reliable supply of pork. Throughout the country, icy warehouses hold 220,000 tons of frozen hogs, and pre-payments are made to farmers to maintain herd levels. With pork prices up 38 percent since the start of the year, this summer, the Chinese government has been digging into the stash to help stabilize prices.