Development and Reform Commission: Support Private Enterprises to Develop Pig Production and Promote Stable Supply and Price in Pork Market
Author: Time:2020-03-17

In order to implement the deployment requirements of the Party Central Committee and the State Council on supporting pig production and the development of private enterprises, and to guide private enterprises to develop pig production and related industries, recently, the National Development and Reform Commission and the Ministry of Agriculture and Rural Affairs jointly issued "Implementation Opinions on Supporting Private Enterprises to Develop Pig Production and Related Industries" (hereinafter referred to as "Opinions").

First, the "opinions" issued background

Private enterprises are the main force to ensure the effective supply of pork and other meat products, and play a leading role in large-scale pig breeding, accounting for more than 98% of the breeding enterprises. Affected by the impact of the African swine fever epidemic and other factors, China's pig production capacity has declined rapidly since 2019, with 540 million pigs on the market in the whole year, down 21.6% year-on-year, and the price of live pigs has risen sharply, up 42.5% year-on-year. According to the decision-making and deployment of the Party Central Committee and the State Council, relevant departments in all regions have taken active measures. At present, the policy effect is gradually showing. In particular, private enterprises have given full play to their advantages in technology, capital and talents, and have insisted on the combination of disease prevention and control with supplementary feeding. This has played a key role in promoting stable supply and price in the pork market. However, the prevention and control of African swine fever is long-term and complex, and the recovery of pig production capacity requires a certain period. Moreover, the new crown pneumonia epidemic has brought a certain impact on the pig breeding industry, especially the accelerated recovery of production capacity. It is expected that the supply of pork will remain tight throughout the year and further efforts are needed. The "opinions" adhere to the problem-oriented approach, aiming at the prominent problems faced by private enterprises in developing pig production and related industries, such as land use, environmental protection, credit, insurance, etc., and strive to promote the implementation of various specific measures, encourage private enterprises to speed up the recovery and expansion of pig production based on the current situation, promote industrial transformation with a view to long-term transformation, continuously improve the quality and efficiency of pig industry development, ensure the basic self-sufficiency of pork in China, and better meet the needs of the broad masses of people for a better life.

Second, efforts should be made to increase policy support for private enterprises.

The Opinions clearly stated that, in accordance with the requirements of prevention and control at different levels, while doing a good job in the prevention and control of the new crown pneumonia epidemic, all localities are encouraged to take targeted measures to solve the difficult and blocking points and promote pig breeding and related enterprises to resume production as soon as possible. Increase financial support, continue to arrange central budget investment to support pig breeding, disease prevention and control, standardized scale breeding, livestock and poultry manure resource utilization and other projects; Use the live pigs to transfer out the large county award funds to support private enterprises to develop live pig production and related industries. We will improve financial and insurance support policies, encourage banks to include eligible land management rights, breeding pens, large-scale breeding machinery and live pigs in the list of collateral, and encourage agricultural banks and others to actively explore financial services for pig breeding that are "big with small". Establish and improve the due diligence exemption and incentive and restraint mechanisms for loans in pig industry of financial institutions to improve the tolerance of non-performing loans. We will ensure a reasonable demand for land, implement the policy on land for pig breeding, and effectively guarantee the demand for land for breeding in the territorial space planning. For will not meet the requirements of arable land or other land classified as permanent basic farmland, after the county natural resources department in conjunction with the competent department of agriculture and rural areas to verify, allowing the development of pig farming, and combined with permanent basic farmland to verify the rectification work, timely quality and quantity of compensation. To guide all localities to manage livestock and poultry breeding forbidden zones in accordance with the law and regulations, and to resolutely correct those who, in the name of environmental protection, engage in pig-free cities or counties without authorization. We will further deepen the reform of "deregulation," and all state support policies and regulatory measures for pig production will treat private enterprises equally.

Three, focus on optimizing the market environment of private enterprises

The Opinions stressed that the prevention and control of the African swine fever epidemic should be further improved to ensure that the epidemic does not rebound and to enhance the confidence of private enterprises and farmers. We will establish and improve a modern system for the conservation, measurement and propagation of fine breeds, cultivate a number of large-scale innovative enterprises that integrate breeding, propagation and promotion of fine breeds of live pigs, and form a parallel pattern of "joint breeding+large-scale enterprise breeding". Support pig production performance testing and improved variety testing capacity building. Improve the feed supply system, guide feed enterprises to participate in the development of upstream and downstream industries, improve risk resistance. We will maintain the normal circulation order in the pig and pork markets, strengthen the docking of production and marketing, ensure the orderly transfer of pigs and piglets, and improve the "point-to-point" transportation mechanism for pigs and their products. Strengthen the expected management and adjustment, guide aquaculture enterprises to adjust the scale of aquaculture in a timely manner, to prevent the production supply and price fluctuations.

Four, efforts to guide private enterprises to improve the quality of industrial development

The "Opinions" put forward that efforts should be made to upgrade the modernization level of pig farming, encourage leading enterprises to give full play to their technological and market advantages, and drive small and medium-sized farmers to develop pig farming. To guide large-scale breeding enterprises to develop pig slaughtering and processing industry, and form an industrial pattern matching breeding and slaughtering and processing. We will promote the construction of a cold chain logistics infrastructure network covering major pig producing and selling areas, and encourage and guide banks, industrial funds and private capital to support cold chain construction. Actively explore the international market, strengthen the monitoring and analysis of the global pig market, and encourage private enterprises to import high-quality pork products according to the domestic market demand.

In the next step, the National Development and Reform Commission and the Ministry of Agriculture and Rural Affairs will work with relevant departments to implement the Opinions, support private enterprises to accelerate the development of pig production and related industries, and strive to form a healthy situation with high-quality industrial development, strong supply guarantee and stable and orderly prices.