Recently the Ministry of Finance has announced that they will
grant subsidies to pig farmers based on the number of sows they are
feeding. But Li Qing, an old pig-raiser, is not happy about it.
"I don't want these subsidies," she said bluntly. "Subsidies are
not necessarily good. The new subsidy-granting policy will cause
more and more people to raise sows. When there are more sows, isn't
it possible that pork prices will greatly decrease?" Li fears that
she may again lose money, as she did last year, due to considerable
decline in pork prices.
It is certainly possible that pork prices will undergo a severe
fall. Significantly, sixty five percent of Chinese pig farmers are
not well organized. Without general supervision and proper
arrangements, short-term interests, such as the proposed subsidies,
could drive these farmers to swarm toward the pig-raising business.
Indeed, the result would be excessive pork supplies, thus causing
pork prices to decline and farmers to lose money.?
For more details, please read the full story in Chinese. (http://www.chinabusinesspost.net/showArticle.php?ID=9481)
(China.org.cn July 23, 2007)
