China state planner urges pig farmers to maintain production
BEIJING, June 16 (Reuters) - China's state planner urged pig farmers on Wednesday to keep pig production capacity at a reasonable level, after a closely watched indicator of production costs last week fell below the point at which farmers make money.
The average hog-to-grain ratio fell to below 6:1 last week, said the National Development and Reform Commission, triggering a level-3 warning that requires action by the government to stabilise prices.
The pricing division at NDRC "will closely monitor live pig production and market price trends...carry out reserve adjustments in a timely manner, and promote the smooth operation of the live pig market", it said in a statement.
Live hog prices have plunged by almost 60% since the start of the year due to farmers sending heavy pigs to slaughter, an increase in pork imports and weak seasonal demand, the NDRC said.
(Reporting by Dominique Patton; Editing by Jacqueline Wong)
