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China cabinet wants large pig farms to make up 58% of total by 2022

China's state council said on Tuesday it wants large-scale pig farms to make up 58% of the total by 2022 to help improve stability of pork supplies.

Adds detail from statement, background

BEIJING, Sept 10 (Reuters) - China's state council said on Tuesday it wants large-scale pig farms to make up 58% of the total by 2022 to help improve stability of pork supplies.

It did not say how it defines large farms or what the current level is.

However analysts at Dutch bank Rabobank have said that farms producing more than 10,000 pigs a year only accounted for 18% of the total in 2016.

The push to promote large farms comes amid a severe shortage of pork in the world's top consumer. China's huge hog herd has shrunk by a third, according to official data, after African swine fever swept through the country in the past year.

The disease is deadly to pigs but does not harm people.

Beijing said on Monday it will offer subsidies of up to 5 million yuan ($700,000) to support the construction of large-scale pig farms.

In a document published online, the cabinet laid out other measures to stabilise pork supply in the country, including urging provincial authorities to offer temporary subsidies to large farms in the major pig production counties.

It also called on big consuming regions to support pig production in other areas with significant production.

The document said large farms should account for 65% of the total by 2025.

(Reporting by Dominique Patton Editing by Andrew Heavens and Louise Heavens)

((dominique.patton@thomsonreuters.com; +86 10 5669 2121; Reuters Messaging: dominique.patton.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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