China Implements Price Controls in Earthquake Affected Areas

China Implements Price Controls in Earthquake Affected Areas

Temporary price controls on all food and transport fares have been implemented in the earthquake-affected provinces of Sichuan, Gansu and Shaanxi, and Chongqing municipality. Although China has mobilized huge shipments of food and medical supplies to the region, there are reports of food hoarding and price gouging in certain cities, including Mianyang, center of an important pork-producing region. China's state media have announced that the State Administration for Grain has also released 100,000 tons of rice, 50,000 tons of wheat, and 14,000 tons of vegetable oil from local branches of state reserves to ensure adequate food supplies to the Sichuan region. There are also reports of damage to local grain reserve facilities, but state grain officials have issued a statement saying there has been no major damage to major reserve facilities.

There have been no official reports of damage to the region's hog-growing infrastructure, which produces about 10 percent of China's total pork output. Sichuan is a major pork-producing region, although investment in hog raising and meat processing in other provinces. such as Shandong, and outside the Southwest, have been the main national industry development trend. One major meat processor contacted by USMEF this past week reported no major damage to its processing facilities, which are located 400 kilometers from the quake epicenter. China's corn futures prices have dropped in recent days, due to expected lower demand from Sichuan feeders.

Estimates of the loss of human life from Monday's earthquake rose sharply overnight to 50,000. The rescue phase of post-quake operations is winding down and efforts are now being focused on providing medical and food aid to the 102,000 injured and the millions of homeless.

China Implements Price Controls in Earthquake Affected Areas

Temporary price controls on all food and transport fares have been implemented in the earthquake-affected provinces of Sichuan, Gansu and Shaanxi, and Chongqing municipality. Although China has mobilized huge shipments of food and medical supplies to the region, there are reports of food hoarding and price gouging in certain cities, including Mianyang, center of an important pork-producing region. China's state media have announced that the State Administration for Grain has also released 100,000 tons of rice, 50,000 tons of wheat, and 14,000 tons of vegetable oil from local branches of state reserves to ensure adequate food supplies to the Sichuan region. There are also reports of damage to local grain reserve facilities, but state grain officials have issued a statement saying there has been no major damage to major reserve facilities.

There have been no official reports of damage to the region's hog-growing infrastructure, which produces about 10 percent of China's total pork output. Sichuan is a major pork-producing region, although investment in hog raising and meat processing in other provinces. such as Shandong, and outside the Southwest, have been the main national industry development trend. One major meat processor contacted by USMEF this past week reported no major damage to its processing facilities, which are located 400 kilometers from the quake epicenter. China's corn futures prices have dropped in recent days, due to expected lower demand from Sichuan feeders.

Estimates of the loss of human life from Monday's earthquake rose sharply overnight to 50,000. The rescue phase of post-quake operations is winding down and efforts are now being focused on providing medical and food aid to the 102,000 injured and the millions of homeless.