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Cushion pig farmers

(China Daily)
Updated: 2009-05-04 07:35

The long shadow that the spreading influenza A(H1N1) has cast over the domestic pork market will not immediately disappear along with the change of the flu's name.

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On Thursday, the World Health Organization dropped "swine flu" in favor of a technically scientific name that sounds less prejudicial.

The Chinese government also began to educate the public about the new flu so as to reduce misunderstanding of pork consumption.

Yet, the damage has been done at a moment when pig farmers are struggling amid the global downturn.

It was reported that domestic pork prices have dropped by about a quarter so far this year.

The continuous decline of pork prices is, of course, not caused by the outbreak of the new flu. But the term "swine flu" did hit the pork market hard by misleading consumers, despite the fact that there is no proof of the flu virus being found in pigs or being contracted through eating pig meat or other pork products.

In this sense, the flu has made the road of recovery for pig farming in this country longer and bumpier.

Chinese officials should certainly do their utmost to clear the confusion over the danger posed by pigs during the campaign to prevent A(H1N1) flu.

More important, government efforts are needed to save pork prices from dropping too much. On one hand, the fall in pork prices can bite deep into the farmers' pockets.

The economic slowdown has already made it difficult for farmers to find jobs in cities, depriving them of a key source of income growth. Lower pork prices will only force many of them to suffer losses from pig farming.

On the other hand, just as soaring pork prices that had fueled excessive inflation since later 2007, falling pork prices at present will add a lot to deflationary pressure, putting a drag on the country's economic recovery.

Chinese policymakers should pay close attention to the risk of a surge in supply putting pressure on pork prices as the new flu spreads wider around the world.

They should also take actions to help pig farmers. A big lesson from the country's last round of food-led inflation is that the government responded too late to prevent loss-making pig farmers from reducing their herd too much.

The government must not allow the current fall of pork prices to sow the seed for the next round of inflation.

While stepping up animal monitoring amid the pandemic, it is imperative for the government to come up with more support policies for pig farming.