China's State Council says China has earmarked about $439 million to support the large-scale breeding of pigs and cows in a bid to stabilize agricultural development and help raise farmers' incomes. The council urged governments at all levels to put into effect all subsidy and stimulus policies regarding pig and cow breeding.
The director of China's rural development research institute of the Chinese Academy of Social Sciences said the announcement will help stabilize pork prices, amid fears of the H1N1 flu. Earlier this month, pork prices in three of the biggest markets in south China's Guangzhou dropped significantly.
Further, the State Council said it plans to build a grain reserve capacity of 15 million tons, oil reserve of 1.75 million tons, sugar reserve of 400,000 tons, and cotton reserve of 500,000 tons within two years.