(Yicai Global) July 04 -- Chinese regulators announced at an industrial meeting today that they will monitor the pork market and take action against companies that inflate prices. It came after a surge in prices, with the dominant hog futures contract hitting a one-year high during trading today.

According to the National Business Daily, the Price Department of the National Development and Reform Commission today called a number of industry associations and enterprises to a meeting to analyze the recent supply, demand and price situation in the pork market. A participant said that the officials announced they would hold separate interviews with key supply enterprises if necessary.

The National Bureau of Statistics released data today showing that the price of hogs in late June was CNY18.3 (USD2.73) per kilogram, up CNY1.9/kg or 11.6 percent compared to mid-June.

Today, the dominant hog futures contract reached CNY22,755 (USD3,397.84) per ton, the highest level since May 2021. Last September, the contract had been as low as CNY13,500 per ton.

At the meeting, the NDRC said it would require large enterprises such as Wens Foodstuff Group and Muyuan Group to provide materials including analysis of the recent rapid rise in prices, market price trends, company production and operation performance in the first half of the year, and arrangements for the next six months.

The NDRC also asked for suggestions about how to ensure supply and price stability and reminded companies that they should not hoard or inflate prices.

The participant at the meeting said the rise in prices was partly due to a reduction in supply, according to the report, adding that low profitability for companies and the impact of high grain prices and the pandemic are the main reasons for the decreased supply.

Editor: Tom Litting