September 30, 2024

 

China moves to stabilise beef and dairy production amid falling prices

China's Ministry of Agriculture announced measures to stabilise beef and dairy production, boost consumption, and provide support for farmers, as declining prices drive small producers out of business, Reuters reported.

 

In July 2024, China declared its intention to control beef and dairy output in response to plummeting prices. This move follows similar actions already taken to address issues in the pork industry.

 

A new plan, published on the Ministry of Agriculture and Rural Affairs website, outlines steps to promote beef and milk consumption. It also includes measures to support farmers, such as offering loan extensions and reducing feed costs for farming households.

 

The plan requires local governments to accelerate herd expansion and improve the quality of livestock by focusing on higher quality cows. The ministry previously stated that this would be achieved by adjusting herd structures to phase out older and less productive animals.

 

For the dairy sector, where an oversupply has led to small farmers being forced out of business, the plan calls for the use of consumption vouchers to encourage greater milk consumption.

 

The ministry's plan also prioritises disease prevention and control within cow herds, with a promise of more targeted support policies to be introduced for agriculture and other sectors in the future.

 

In March, Beijing implemented regulations aimed at reducing the population of breeding sows, following a period of aggressive expansion over the past two years. This expansion had led to an oversupply of pork, causing significant financial losses for producers.

 

Falling consumer demand in a slowing economy has contributed to the decline in prices. According to state media reports, beef prices have now reached their lowest level in five years.

 

-      Reuters